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Market Trends•by Mike Antich•October 28, 2008

94% of Fleet Managers Don’t Know the Whereabouts of Their Fleet Vehicles

Do you know the location of your fleet vehicles during work hours? The most likely answer is no. In fact, nine out of 10 fleet managers have no idea where their fleet vehicles are at any given time. This assertion is based on a recent study that revealed 94 percent of those who operate corporate vehicles are completely unaware of their fleet’s location during work hours. However, this may soon change as a result of growth in the deployment of mobile resource management (MRM) systems.

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Market Trends•by Mike Antich•October 24, 2008

Vehicle Quality is Up, But So is Cost per Repair

Vehicle quality has improved dramatically with fleets experiencing a decline in the frequency of vehicle repairs. However, the average cost of repairs has been increasing. The forecast is for the cost of fleet maintenance to increase again in 2009. There are five factors exerting upward pressure on cost per repair.

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Market Trends•by Mike Antich•October 21, 2008

Fleet Operating Costs Increase Again in 2008

Although gas prices started to decline in August, the year-to-date cost of fuel in 2008 has increased 30 percent compared to last year. The price for replacement tires rose 5-10 percent in 2008 due to higher oil prices and the shift by manufacturers to larger diameter tires. Also, fleet maintenance and repair costs increased across the board in 2008. The cost for non-warranty maintenance services was up 5 percent for fleets.

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Market Trends•by Mike Antich•October 14, 2008

Replacement Tires: A Growing Fleet Expense

Replacement tires are the third-largest expense category for fleets. In the past three years, this expense category has grown as a result of multiple price increases from all major tire OEMs. In 2008, year-to-date tire replacement costs have increased 4-10 percent. This follows a 3-4 percent price increase in 2007 and an 8-10 percent price increase in 2006. The consensus is replacement tire prices will increase again in 2009.

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Market Trends•by Mike Antich•October 10, 2008

Fuel Continues to be the No. 1 Threat to Fleet

The number one threat to fleets continues to be the price of fuel, despite the fact that fuel prices have been declining due to the global economic slowdown. Year-to-date, the cost of fuel has increased 30 percent in 2008 compared to 2007. The Energy Information Administration is projecting fuel to average $3.82 per gallon in calendar-year 2009. Fuel is the potential game changer of the fleet industry. Consider two recent examples as harbingers of things to come.

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Market Trends•by Mike Antich•October 7, 2008

Federal Reserve Invokes Emergency Powers to Support the Commercial Paper Market

Today, Oct. 7, the Federal Reserve Board announced that it is invoking emergency powers to create a special fund to support the U.S. commercial paper market. The announcement by the Federal Reserve allows corporations to bypass the current credit gridlock gripping the nation’s economy. This has an impact on the fleet market since one source of financing for large fleets is the commercial paper market.

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Market Trends•by Mike Antich•October 3, 2008

Anti-Idling Programs: A Quick Way to Reduce Fuel Spend

Reducing unnecessary idling is the simplest and easiest way for a fleet to reduce fuel costs. Besides wasting fuel, excess idling also causes unnecessary emissions, noise pollution, and needless engine wear-and-tear. The amount of unnecessary idling varies by fleet, but some fleets have recorded idling as much as 35 percent of the time.

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Market Trends•by Mike Antich•September 29, 2008

Credit Gridlock Will Impede Sales of Used Fleet Vehicles

The bread-and-butter customers of out-of-service fleet vehicles are buyers with C and D credit, namely subprime buyers. However, funders have tightened underwriting standards to manage these higher risk borrowers. Some lenders have caps on how low a FICO score they are willing to fund, which is often above the threshold of subprime borrowers. If this continues, it will have significant long-term implications for the sale of used fleet vehicles.

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Market Trends•by Mike Antich•September 23, 2008

Comprehensive Safety Analysis 2010: A New Way to Reduce Truck-Related Fatalities

Due to staffing constraints, the Federal Motor Carrier Safety Administration (FMCSA ) can currently only audit about 2 percent of nation's truck fleets. In response to these resource constraints, FMCSA is developing a Comprehensive Safety Analysis (CSA) 2010 initiative to implement new ways to reduce truck-related accidents. CSA 2010 will measure a fleet's safety performance through data uploaded from fleet compliance activities and accident reports.

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Market Trends•by Mike Antich•September 22, 2008

Branded Fleet Vehicles Puts Drivers in Conflict with Homeowner Associations

When a company decides to brand vehicles with either logos or full-vehicle advertising wraps, it may inadvertently create a situation that puts employees in conflict with homeowner association restrictions on the parking of commercial vehicles in common areas. Most homeowner associations allow commercial vehicles as long as they are garaged, but not all fleet vehicles can fit in a garage due to height or length. An estimated 50 million Americans live in homeowner association communities.

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Market Trends•by Mike Antich•September 19, 2008

Confronting Non-Compliance & Fraudulent Personal Use Reporting

The high cost of fuel is causing more employees to use fleet vehicles for personal use since many companies pays for gasoline. Although overall fleet mileage has increased, there has not been a corresponding increase in reported personal use miles. Companies that allow drivers to take vehicles home, but do not allow personal use, report a growing problem of policing unauthorized personal use by employees looking to reduce their "personal" fuel costs. This is a broad-based industry issue.

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Market Trends•by Mike Antich•September 12, 2008

Mixed 2008 OTD Performance: Some Models Up, Some Down

The 2008 model-year produced mixed results in order-to-delivery (OTD) perfromance. A protracted UAW strike and flooding in the Midwest delayed some models, while other models posted improved OTD due to reduced retail sales, which expedited fleet production. In addition, there was sufficient rail car availability due to soft retail sales and a decrease in quality holds.

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