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The Merchants Fleet CEO contends that fleets that drive the business win the inches. In 2026, every one of them counts.
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The lean fleets of yesterday are the fragile fleets of today. Where do we find the balance?
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To facilitate discussion of today’s industry challenges, Automotive Fleet offers a platform for fleet managers and other fleet professionals to exchange their diverse opinions and perspectives.
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The ongoing semiconductor shortages, with the resultant delays on new vehicles, is impacting fleet replacement cycles. As a result, many fleets are now facing lifecycle extensions as shortage of replacement vehicles becomes a pressing issue, which in turn places a premium on Service, Maintenance and Repair (SMR) schedules.
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Today’s used-vehicle market is the best it’s been in the history of fleet management and my anecdotal forecast is for it to remain strong through the balance of 2021 and into calendar-year 2022. As a result of these favorable market conditions, some fleets have begun shortcycling some of fleet vehicles.
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Extending replacement parameters is often counterproductive to the intended goal. Longer service lives increases unscheduled maintenance with longer downtime and increases the number of units operating outside of warranty.
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Extended replacement cycles for short-term capital expenditure savings often have the unintended consequence of resulting in greater long-term expenses.
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A one-size-fits-all for approach getting replacement cycles right? That doesn’t exist. The good news? Fleets have options to customize the best strategy for their unique operation.
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Big Data, tax law changes, new vehicle options, fuel prices, and more, are impacting fleets decisions about when to replace their trucks.
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A vehicle’s total cost of ownership is comprised of its fixed costs, operating expenses, and depreciation per year or during the course of its service life, minus its anticipated resale value. During the course of a vehicle’s service life, TCO is subject to change due to a vehicle’s age and numerous external factors, which has a direct bearing on replacement policies.
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