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Market Trendsby Mike AntichJune 2, 2009

Fleets Stand Behind GM in Chapter 11, But Questions Linger

Automotive Fleet magazine conducted a survey of General Motors' largest commercial fleet customers, immediately following its June 1 announcement that it filed for voluntary Chapter 11 bankruptcy protection. Here's what these commercial fleet managers had to say.

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Market Trendsby Mike AntichMay 26, 2009

Short-Sighted Management: What Not to Do in a Recession

I am dismayed at the number of fleet managers who have lost their jobs due to corporate cutbacks. Similarly, I am amazed at the short-sightedness of today's senior management making these decisions without regard to the implications of lesser-qualified individuals managing one of their largest asset classes. I predict that companies that downgrade the expertise of their in-house management will be on the wrong side of history and will be the poster children of what not to do in a recession.

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Market Trendsby Mike AntichMay 19, 2009

OEM Parts Prices Increase as Parts Availability Decreases

Slow retail sales have prompted not only closure of assembly plants, but also component factories, which is delaying parts deliveries. OEMs are also hiking parts prices, with some experiencing double-digit percentage increases.

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Market Trendsby Mike AntichMay 12, 2009

The Dangers of Extending Replacement Cycles

Vehicle replacement policy is one of the most critical aspects of fleet management. Nearly all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is replaced. In a recessionary economy, senior management demands expense reductions and there is pressure to defer vehicle replacements. However, such a policy change could actually prove to be counterproductive to the intended goal.

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Market Trendsby Mike AntichMay 4, 2009

Put Your Fleet on a Diet

Vehicles get better fuel mileage when not loaded with unnecessary weight. An extra 100 lbs. in a vehicle could reduce mpg up to 2 percent. Typically, the chief culprit responsible for accumulating unnecessary weight is drivers. Over the course of a vehicle assignment, drivers accumulate a "cargo" of dated sales materials, point of sale demos, and seldom-used tools carried in trunks, storage bins, and back seats. You'd be surprised how quickly lbs. add up.

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Market Trendsby Mike AntichApril 21, 2009

10 Traits of Successful Commercial Fleet Managers

Show me a well-run fleet and I will show you a top-notch fleet manager. A fleet manager validates his or her importance by cost-effectively managing corporate assets and controlling the expenses associated with operating these assets. Although each fleet is unique, there are common traits found among successful commercial fleet managers. Here are 10 management traits that ensure a fleet is operating at the optimum level.

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Market Trendsby Mike AntichApril 13, 2009

Medium-Duty Operating Costs Increase in 2008-CY

Key factors that influenced medium-duty truck operating costs in 2008 were the price of diesel, increased repair costs related to new truck technologies, higher labor rates, and decreased utilization. However, fuel was the primary driver behind higher operating costs in the 2008 calendar-year.

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Market Trendsby Mike AntichApril 6, 2009

Dual Sourcing Re-examined as Supplier Reliability Comes into Question

The jaw-dropping events of the past six months have made an indelible impression on many fleet managers. The very real possibility that two of the Detroit 3 could quickly (and unexpectedly) enter into Chapter 11 bankruptcy protection, along with some fleet management companies not accepting new-vehicle orders, has caused some corporations (especially those sole sourcing) to reassess sourcing strategies.

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Market Trendsby Mike AntichMarch 31, 2009

NHTSA Proposal to Reduce Braking Distances Will Not Require Retrofitting Existing Units

The National Highway Traffic Safety Administration (NHTSA) is proposing to amend its air brake standard to improve the stopping distance performance of commercial trucks. Based on current safety trend data and brake system technologies, NHTSA is proposing to reduce the required stopping distance for truck tractors by 20 to 30 percent. The proposed rule would cover all truck tractors equipped with air brakes. The proposed rule does not include single unit trucks, buses, or trailers.

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Market Trendsby Mike AntichMarch 20, 2009

Resale Values Up, But Market Remains Fragile

Wholesale used-vehicle prices during fourth quarter 2008 were the worst on record. Since then, wholesale prices rose significantly in January through March. The improvement in pricing in 1Q 2009 reflects better-than-expected retail sales of used vehicles. Resale values for mid-size sedans are substantially higher than in 2008, as are prices for light-duty trucks and SUVs. However, consumer confidence and credit availability remain two wildcards to the market's ongoing vitality.

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Market Trendsby Mike AntichMarch 17, 2009

Commercial Leases are Now Eligible Collateral to be Funded by TALF Program

The credit gridlock gripping the nation's economy has made it more difficult (and expensive) to fund fleet vehicles using asset-backed securities. Last February, the Federal Reserve and the U.S. Treasury launched a joint program called the Term Asset-Backed Securities Loan Facility (TALF) to improve credit conditions in the securitization markets. On March 3, the Federal Reserve expanded the definition of eligible collateral under TALF to include commercial leases. Here's how the program works.

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Market Trendsby Mike AntichMarch 10, 2009

9 Mistakes to Avoid When Playing "Musical Cars"

Since the recession's start at the beginning of 2008, 4.4 million jobs have been lost due to corporate downsizings and layoffs. Many terminated employees were assigned company vehicles. In today's politically correct HR environment, the term "reverse expansion" is being used to describe the retrieval and reassignment of company-provided vehicles from terminated employees. A fleet manager suddenly thrust into a reverse expansion will find it very easy to make mistakes.

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