THE CAR AND TRUCK FLEET AND LEASING MANAGEMENT MAGAZINE
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Upward Pressure on Fleet Costs Threatens to Increase TCO

Recently, I conducted a survey of several hundred fleet managers to identify emerging industry trends. One recurrent theme expressed by fleet managers was the concern that fleet costs are starting to experience upward pricing pressures. Here's what they told me.

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Higher Labor, Parts Drive Up Fleet Maintenance Costs

Although repair incidents were flat, other fleet-related maintenance expenses were up in calendar-year 2017, primarily in labor rates and parts prices. PM costs were up around 3%, while replacement tire costs increased 5-10%.

Fleet Preventive Maintenance Costs Increase 3%

Extended oil-drain intervals have helped to offset increases in the cost of motor oil because of the expanded use of synthetic oils and cartridge oil filters. Higher labor rates in 2017 exerted upward pressure on preventive maintenance costs.

Preventive Maintenance Costs Remain Flat in 2017

Continued stability in crude oil prices, along with longer oil drain intervals, are helping to offset the higher cost of synthetic motor oils that are now required by more automotive OEMs.

Fleet Maintenance Expenses Decrease in CY-2016

Fleet passenger car maintenance expenses declined by 7%.

Extended Oil Intervals Keep Preventive Maintenance Costs Flat

Extended oil-drain intervals and flat labor rates have helped to offset increases in the cost of motor oil because of the expanded use of synthetic oils. In 2017, higher labor rates may exert upward pressure on PM costs.

PM Transaction Costs Up But Longer Intervals Keep Costs Flat

The auto OEMs continue to adopt more stringent motor oil requirements, which increases the cost of each PM service. But, the intervals between services have continued to widen, mitigating some of the additional costs.

Fleet Maintenance Oil Intervals Extended

Preventive maintenance expenses were flat in CY-2015. Although the average cost per PM has risen, oil drain intervals have been extended.

Extended Oil Drain Intervals Mitigate Increased PM Expense

Improvements in engine design and on-board oil life monitoring, along with improved oil quality and the use of synthetic oils, have extended oil drain intervals and served to decrease PM service frequency.

Fleets Controlling Costs With Driver Training and Rightsizing

Emkay’s Brad Vliek outlines how the four fleet cost centers — fuel, tire replacement, maintenance, and preventive maintenance oil drains — have influenced the way fleets have done business in 2012 and what to expect in 2013.