Synthetic Oil - Tagged Posts - Automotive Fleet

Maintenance Spend Increased 3-5% in 2018

Average repair spend per unit increased 3-5% in calendar-year 2018, primarily due to higher labor rates and part prices. Also, PM costs were up due to the shift to more expensive synthetic oil and higher replacement tire prices.

Synthetic Oils, Higher Labor Rates Increase Preventive Maintenance Costs

On average, PM costs have increased due to higher labor rates, expansion of models requiring synthetic motor oil, and more expensive cartridge oil filters. One offset is that longer lasting synthetics have extended oil-drain intervals.

Higher Motor Oil Prices Nudge Preventive Maintenance Costs Up

Citing the higher cost of crude oil, many major manufacturers of finished lubricant products increased prices from 5% to 8% in CY-2018. Plus, each model-year, more OEMs require the use of more expensive synthetic motor oils.

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.

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.