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The key reason for the increase was the cost of fuel, in particular, diesel fuel. This has also led to price increases for other oil-based products such as tires, which increased 4-7 percent in the past year. Other PM costs remained flat.
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In many cases, replacing an old fleet vehicle engine with a rebuilt or remanufactured engine is more cost-effective than buying a new car or truck.
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The high cost of fuel was the key reason for increased operating expenses. The spike in fuel prices also contributed to the higher cost of replacement tires and, indirectly, to higher maintenance expenses.
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Continued use of recapped tires and lengthened PM intervals have kept medium-duty truck operating costs relatively flat for utility/railroad, delivery, and service fleets in 2004.
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AF’s first-ever medium-duty truck operating cost survey reveals that expenses remained stable due to increased use of recapped tires and lengthened PM intervals. However, the increase in diesel prices in ’04 threatens this stability.
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A growing trend is for auto designers to work with tire manufacturers in developing tires specific to particular model vehicles. This has proliferated the number of tire sizes available since no other tire in the tire manufacturer’s product line meets this vehicle-specific performance and handling specification.
Read More →Fuel prices are at the highest levels in 20 years. The forecast is for fuel prices to remain elevated in 2001.
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