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Market Trends•by Mike Antich•July 14, 2009

Top 6 Fleet Trends in the Medium-Duty Truck Market

Six key trends will determine Class 3-7 medium-duty truck lifecycle costs in the 2010 calendar-year. They are diesel prices, acquisition costs, resale, maintenance costs, replacement tire expense, and environmental regulatory requirements. Here is a forecast of what to expect.

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Market Trends•by Mike Antich•July 7, 2009

10 Recommendations: <br>What Drivers Should Do After a Fleet Accident

Drivers must collect as much information as possible when involved in an accident while driving a company-provided vehicle. Failure to do so can lengthen the accident management process and, in a worst case scenario, create unnecessary liability exposure for the company. What information should be collected? What shouldn't be said? Here are 10 do's and don'ts for fleet managers and drivers to follow.

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Market Trends•by Mike Antich•June 29, 2009

Migration to 4-Cylinder Engines Continues with 2010-MY Ordering

The ongoing volatility of gasoline prices has prompted a growing number of fleets to transition to four-cylinder engines. This transition started in the 2008-MY and accelerated with 2009-MY ordering, when gas prices surpassed $4 per gallon in the summer of 2008. Early indications are that the migration to four-cylinder engines will continue with 2010-MY ordering. We have already seen glimpses of this trend in the 2010 RFPs submitted to major OEMs.

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Market Trends•by Mike Antich•June 22, 2009

Does LIBOR Still Correlate to Corporate Borrowing?

LIBOR was developed in 1984 as a measure of the real rate at which banks lend money to each other. Since the early 1990s, LIBOR has been used as a funding index for fleet leases. However, when the recent turmoil in the financial markets prompted governments to "backstop" bank borrowing, the cost of lending money began to represent a government-guaranteed rate, which no longer correlated to fleet lessor costs.

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Market Trends•by Mike Antich•June 15, 2009

Commercial Fleets Reveal 2010-MY Buying Intentions

Fleet ordering for the 2010 model-year is shaping up to be higher than 2009-MY, but that's not saying much since 2009 was such an abysmal year. Many commercial fleets deferred 2009-model ordering. Some fleets purchased no replacement vehicles and skipped the 2009 ordering cycle altogether. A large number of commercial fleets decreased the volume of their 2009 ordering and are now playing catch-up with the 2010 model-year.

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Market Trends•by Mike Antich•June 9, 2009

Sluggish Economy Continues to Dampen Resale Values for Medium-Duty Trucks

Resale values have significantly declined across the board on all medium-duty trucks, with five-year old medium-duty trucks decreasing, on average, between 18-23 percent in the past 12 months. Trucks older than 10 years have been more difficult to sell due to higher fuel and maintenance costs. The ongoing sluggish business environment is the key reason for the soft resale market. Here's a forecast of what's to come.

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Market Trends•by Mike Antich•June 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 Trends•by Mike Antich•May 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 Trends•by Mike Antich•May 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 Trends•by Mike Antich•May 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 Trends•by Mike Antich•May 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 Trends•by Mike Antich•April 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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