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budget cuts

During economic uncertainty, senior management demands expense reductions and limits capital expenditures. Since fleet is usually among the top 10 corporate capital expenditures, there is pressure to defer vehicle replacements. However, this cost-containment strategy misses the point that all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is replaced. Cost reductions in acquisitions are often offset by rising costs elsewhere.

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OEM Parts Prices Increase as Parts Availability Decreases

Slow retail sales have prompted not only closure of assembly plants, but also component factories, which is delaying parts deliveries. OEMs are also hiking parts prices, with some experiencing double-digit percentage increases. The dramatic slowdown of automotive sales has also created a "financial crunch" for many parts manufacturers, with many second-tier suppliers going out of business. This portends a difficult environment for fleets to manage accident repair costs.

ARI Publishes Fuel Projection Report

MT. LAUREL, NJ – Automotive Resources International's monthly report features actual average U.S. fuel costs from June 2008 to January 2009 and estimated average fuel costs through the end of 2010.