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Market Trends•by Mike Antich•July 31, 2008

Will You Need Fewer Fleet Vehicles in an Era of Hyperconnectivity?

In Tuesday’s blog, I likened predicting the future to a billiard game to illustrate that seemingly unrelated events can influence the future direction of the fleet market – events we may never see coming. With this in mind, let’s rack up our hypothetical balls, placing the “fleet ball” in the center of the rack. Let’s whack the cue ball to see what new fleet scenario may unfold from this catalyst. In this new analogy, the cue ball catalyst is a relatively recent concept called hyperconnectivity.

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Market Trends•by Mike Antich•July 28, 2008

Is the U.S. Destined to Follow the U.K. Fleet Model?

Predicting the future has been likened to a billiard game. The cue ball is the catalyst – representing a seminal event – that upon crashing into a racked set of balls triggers not only the initial reaction, but numerous unanticipated secondary and tertiary reactions. When the cue ball strikes its target, it unleashes unanticipated dynamics of balls deflecting off other careening balls, ultimately changing all of their trajectories. Let’s expand the analogy by making “fleet” one of the balls.

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Market Trends•by Mike Antich•July 25, 2008

Fleet Management Circa 2018

The greatest catalyst for change in fleet management in the next 10 years will be "technology." It is getting increasingly expensive to operate a fleet. There are diminishing opportunities to reduce cost and enhance fleet efficiency using traditional fleet management techniques. A growing number of companies are investigating (or are more receptive) to technology-based fleet solutions. Looking ahead, here are my predictions as to how technology will change fleet management in the next 10 years.

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Market Trends•by Mike Antich•July 21, 2008

Rising Commodity Prices Threaten to Increase Truck Prices

The high cost of raw materials, in addition to the high cost of fuel, is starting to make a financial impact on fleets by increasing costs for truck chassis, bodies, trailers, liftgates, and other upfit equipment. On July 9, Navistar announced that rising commodity costs have forced the company to increase prices of International truck models. Is this another in a series of commodity-related price increases that we will see from other OEMs, upfitters, and trailer manufacturers?

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Market Trends•by Mike Antich•July 18, 2008

Bleak New-Vehicle Sales to Usher a Strong Used-Vehicle Market

Today's new-vehicle market will generate (ultimately) the used-vehicle market of tomorrow. If there is a decrease in new-vehicle sales, there will be a corresponding decrease in the future number of used vehicles in the marketplace. Even though there is a lot of nervousness in the market, no one is anticipating a dramatic decrease in new-vehicle commercial fleet orders for the 2009 model-year. However, the same cannot be said for the retail new-vehicle market.

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Market Trends•by Mike Antich•July 15, 2008

A Perfect Storm Pummels Truck Resale Values

A combination of market forces have converged to create a “perfect storm” to drive down resale values for pickup trucks by 15-25 percent. These convergent forces are higher fuel prices, tighter consumer credit, and a stagnant construction market. As a result, the pool of buyers (hence market demand) for used trucks has contracted, putting downward pressure on resale prices.

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Market Trends•by Mike Antich•July 11, 2008

Will High Demand for 4-Cylinder Engines Increase OTD?

Although fleet is extremely important to automakers, the reality is that retail sales and retail considerations drive many OEM decisions. Currently, retail buyers are demanding four-cylinder engines in what appears to be a knee-jerk reaction to paying, on average, $4.03 per gallon for gasoline. Franchise dealers just don’t have enough four-cylinders in inventory to meet this demand and they are clamoring for more product.

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Market Trends•by Mike Antich•July 7, 2008

'Location Privacy' Threatens to Emerge as a Major Fleet Issue

I believe “location privacy” has a strong potential to become a hot-button societal issue in the next decade. It will focus on privacy infringement and potential abuse due to the pervasiveness of GPS-based products and services. These long-term implications frighten many privacy advocates. Unfortunately, I believe fleet management will be swept up into this controversy.

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Market Trends•by Mike Antich•July 3, 2008

Accident Management Costs Trend Upward

On average, 20 percent of fleet vehicles are involved in accidents each year. Although this percentage has remained steady from 2005-2007, the cost of repairing these vehicles is rising.

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Market Trends•by Mike Antich•June 30, 2008

Increased Fleet Demand for 4-Cylinder Engines

There is a growing belief among fleet managers that today’s high fuel prices are not a temporary phenomenon, but a new reality. Almost everyone is looking for ways to downsize vehicles (where possible) or opt to four-cylinder engines as part of either a corporate sustainability initiative or fuel spend / GHG reduction program.

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Market Trends•by Mike Antich•June 10, 2008

The Dangers of Policy Exceptions

It is these procedures and regulations that determine the types of fleet each of us operates and its characteristics. Think about it. By creating policy such as to who is eligible for a company vehicle, you are, in effect, determining the size of your fleet. In my discussions with fleet management companies over the years, they tell me that the best managed fleets tend to be those that adhere to a written fleet policy.

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Market Trends•by Mike Antich•May 30, 2008

10 Milestones That Changed Fleet Management

In the late 1930s and early 1940s, businesses started to migrate from salesmen reimbursement to company-owned fleets. Since then, 10 milestones have dramatically changed the nature of fleet.

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