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With the labor market continuing to strengthen and economic activity rising at a solid rate, the Federal Reserve raised the Federal Funds Rate a quarter percentage point for the second time this year — putting the target for short-term rates in the 1.75 to 2% range.
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Management must develop remuneration policies and incentive plans encouraging procurement to cooperatively work with in-house fleet leadership to support attainment of larger strategic goals allowing fleet to cost-effectively fulfill its corporate mission.
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Ford has announced fleet incentives for its 2019-model-year lineup, including its police models and four Lincoln vehicles.
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Toyota has released dates for when commercial fleets can begin placing orders for its 2019 model-year lineup as well as dates for when deliveries of those vehicles are expected to begin.
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Sales of vehicles to commercial fleets increased 2.1% in May, while sales to government fleets were flat, and sales into daily rental increased 29.8%.
Read More →Procurement initiatives to reduce fleet cost structure primarily focus on hard costs with secondary consideration given to soft cost reduction. Some procurement teams often don’t appreciate the sizable impact of soft cost reductions and how they can lead to larger hard cost reductions.
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Toyota will offer commercial fleet incentives on 21 of its 2019 models, including the new generation of the RAV4 and heavily refreshed Avalon sedan, the company announced.
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Infiniti will offer street fleet incentives for commercial purchasers for the 2019 model year for seven of its nameplates, according to the company.
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Nissan will offer street fleet incentives for 17 of its vehicles for the 2019 model year, including its new Kicks subcompact SUV.
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Procurement underperforms in cross-collaboration initiatives with other corporate spend categories, such as Environment, Health & Safety (EHS) and supply-chain management.
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