| Video News & Views
PEOPLE & IDEAS TO WATCH | Budgeting for the Unknown | | Budgeting for fleet expenses has never been easy, but never as hard as it is today |
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July 08, 2010
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| Fleet Trends & Issues |
Opportunities & Successful Fleet Management |
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A Review of Fleet Policy is Money Well Spent: Or How to Save Your Company $Millions Bert Grayson, a consultant who specializes in helping attorneys and fleets with negligent entrustment issues, shares a few stories with us about fleets that have either chosen not to check motor vehicle records or ground problem drivers. A recent court case has some very simple facts and a very scary outcome. A driver has been cited with his third moving violation in a short period of time. The fleet safety committee tells the driver, via the fleet department, to turn in his company car. He responds by suggesting he will have his wife drive the company car and he will drive the family car on his sales calls. They agree to consider the idea, but subsequently learn he is actually divorced. The driver is once again advised to surrender the car. He promises to do so but never actually does it. The result of not following up to be sure he does? He has an accident and costs the company something over $2 million. Another equally frightening case. A very good worker is somehow able to do his job while drinking. Sadly, he is one of those people whose personal problems overwhelm him. The company has some idea he is a day-time drinker but, again, he is somehow able to do his job exceedingly well. Finally, after pressure from customers, the company decides to give him some time off. The job requires him to have a company pickup truck which doesn't get removed. While still in possession of the truck, the driver has a traffic accident and severely injures another party. Something approaching $6 million is the expected outcome. Bert has nearly 30 years of experience in the fleet business. He served as fleet manager for eleven years, was a sales executive for a major fleet management company for nine, and for the last eight years expert witness and consultant to major law firms across the U.S. While specializing in negligent entrustment cases, Bert was instrumental in obtaining three settlements totaling over eight million dollars. Other assignments produced similar results in the area of vehicle maintenance and fleet practices. Contact: Bert Grayson
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| Managing Your Fleet Selector |
OEM & Equipment Manufacturer
Products & Services |
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2011 Jeep Grand Cherokee The 2011 Jeep Grand Cherokee will debut with wholesale changes from its predecessor. It will come in Laredo, Limited, and Overland models. Each will offer two- or four-wheel drive, a five-speed automatic transmission, a brand-new four-cam, 280-hp flex-fuel 3.6-liter V6 engine and the option of a 360-hp 5.7-liter Hemi. Fuel-economy ratings are expected to range from 16/23 mpg to 13/19 mpg. Read more
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2011 Ford Super Duty The 2011 Ford Super Duty models will feature significant changes when they go on sale in spring 2010. Ford's lineup of heavy-duty pickups gets stouter engines, a larger transmission and a giant grille for 2011. The 2011 Super Duty is available in three cabs, two bed lengths, multiple weight classes, and four trim levels. Read more
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2010 GMC Acadia The GMC Acadia offers the utility of a big SUV with the refinement and fuel-efficiency of a car. The Acadia is a crossover SUV, meaning it looks like a truck but it uses unibody construction like a car, can seat seven or eight, and it can carry a lot of cargo. Yet it offers a fuel economy advantage of three-to-five miles per gallon over a Yukon, a benefit of its lighter weight and more efficient powertrain. Read more
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| Association News & Views |
Activities, Events & Success Stories |
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NAFA’s 2010 Membership Drive Reaches Out To Fleet Community Maintaining a fleet of vehicles is never easy. Fleet managers constantly face obstacles such as rising fuel prices, cuts to their budget, pressures to meet environmental regulations, and remarketing issues. NAFA Fleet Management Association, the largest network of fleet management professionals in the world, offers support, ideas, and education for fleet managers to succeed in their job. Every problem a fleet manager encounters is either being faced or has been faced by others and together, through the support and shared experiences of NAFA Members, they can find a solution. For the next six months, NAFA Members and Affiliates will take part in the 2010 Membership Drive, reaching out to their colleagues in the fleet industry, explaining the benefits of NAFA, and letting them know that they are not alone. NAFA’s annual Membership Drive, a "member-recruit-a-member" campaign, runs from July 1 to December 31, 2010. Members are excited to take part in the annual drive because for each new fleet manager NAFA Member that is recruited during the Membership Drive, the sponsor will receive one ticket to be entered in a drawing to be held on January 7, 2011. This year’s drawing includes a grand prize containing one year of free membership or affiliation; free registration to the 2011 Institute & Expo in Charlotte; hotel accommodations for conference nights; and travel expenses to and from Charlotte. In addition to the Grand Prize, NAFA is offering up to three full free memberships or affiliations to those who sponsor three or more fleet manager Members, and up to three coupons for $150 off membership or affiliation fees to those who sponsor 1-2 fleet manager Members. Prize winners will be notified by January 19, 2011. Some of the benefits of a NAFA Membership include: legislative counsel in Washington, DC and Ottawa; networking databases; chapters throughout Canada and the United States; NAFA’s career network; publications (FLEETSolutions magazine, FleetFOCUS e-newsletter, and Legislative Updates e-newsletter); and NAFA education and events ranging from the annual Institute & Expo to seminars and online resources. NAFA Members can get full details on the Membership Drive at http://www.nafa.org/drive
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Janice Sutton, Editor
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We have enormous admiration and respect for Wayne Smolda, CEO at CEI, and spent a most interesting hour with him at NAFA I&E talking about a variety of fleet issues. In the coming weeks we will publish our interview with him. Today, in Get Reel, he talks to us about the extraordinary difficulties fleets are up against today in trying to budget expenses. Chuck Parker, Automotive Information Network's publisher, recently interviewed John Humphrey, Senior Vice President of Global Automotive Operations at J.D. Power & Associates. We've been hearing for a several years now that the U.S. market auto market is going to be flooded with low-cost China- and India-made vehicles. To date, quality and safety issues have kept them at bay. But in Get Reel this week Humphrey gives us an update on when we can expect these new imports. If you're at all active in NAFA you probably know Doug Weichman, CAFM, NAFA Vice President and Director of Fleet Management for Palm Beach County, Florida. We never miss an opportunity to chat with him at I&E and he is featured this week in Get Reel talking about the serious challenges facing public fleets in these recessionary times. Bert Grayson is a long-time colleague and friend of ours and we asked him to talk to us about negligent entrustment. Read his article in Fleet Trends & Issues - there's a lot of money on the line if you don't handle this right. Let us know if there's something you would like to see in Fleet Management Weekly. And if you have an interest in greening your fleet, or have products directed at this market, you'll want to read and subscribe to our sister publication, Automotive Digest Weekly - Green Edition. Janice sutton
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| Places, Sites, and People for New Ideas
& Applications |
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Are Electric Vehicles a Passing Fancy? Can you imagine how blacksmiths reacted to the "horseless carriage" at the turn of the century? Now like the blacksmiths of a hundred years ago we are faced with a decision. If the trend toward electric vehicles is real, how will we respond? The evidence is mounting that ready or not, electric cars are poised to take the automotive market by storm. Read more
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On the road with...Gus Xamplas Donlen's vice president of remarketing, Gus Xamplas, reports on the monthly remarketing trends. Xamplas has deep industry knowledge with more than 30 years experience in the auto finance and leasing industries Used vehicle values continued to soften in May. Supply is still low compared to historical norms, but prices on used vehicles were increasing to new car levels, but in our opinion, that is unsustainable. When a consumer can purchase a new vehicle for about the same monthly payment as a used vehicle, they usually opt for new. Read more
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Ken Thompson
Australasian Fleet Managers Association
Director of Research and Communications
Fleet Management Down Under
We met Ken at NAFA I&E and were delighted to have the opportunity to talk with him about trends in fleet management in Australia and New Zealand. Mark your calendars: the 2011 Australasian conference is slated for March 22 and 23.
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Matthew Betz
LeasePlan USA
VP of Government Fleet Services
Focus on Government Fleet Services
Matt, a 30-year industry veteran, has recently joined LeasePlan USA to lead the company's government fleet services program. We caught up with him at NAFA I&E to learn more about LeasePlan's focus on this marketplace.
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Jon Toups
LeasePlan USA
Chief Sales and Marketing Officer
Sky's the Limit!
When we asked Jon to tell us more about LeasePlan USA's commitment to the government fleet market, he said, "Now that we've got the right person to lead our effort, the sky is the limit."
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FedFleet 2010
Phoenix Convention Center
Phoenix, AZ
July 13-15, 2010
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Plug-In 2010 Conference & Exposition
San Jose Convention Center
San Jose, CA
July 26-29, 2010
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National Auto Auction Association
New York Hilton
New York , NY
September 7-10, 2010
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AFLA 2010 Conference
JW Marriott Las Vegas Resort & Spa at Summerlin
Las Vegas, NV
September 8-10, 2010
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Green Fleet Conference 2010
Town & Country Convention Center
San Diego, CA
October 18-19, 2010
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| Conference Planning Guide |
Exhibitors, Educational Sessions, & Events |
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Plug-In 2010 July 26-29, 2010 - San Jose Convention Center, San Jose, California Get on the cutting edge of current and future plug-in hybrid and electric transportation technologies by attending and exhibiting at the Plug-In 2010 Conference & Exposition - an interactive international gathering of automotive manufacturers, component suppliers, electric utilities, government agencies, the environmental community and academia. Unparalleled breadth and depth of content will make every breakout session similar to a mini-trial on the topic - delivered right from the working experts. The conference will cover all critical areas of plug-in vehicles including batteries, vehicles and infrastructure, and discussions will be structured around technology aspects, market research, policy initiatives, and commercialization. Don’t miss attending the 2010 event! For more information or to register, click here.
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Stats and Smart Charts
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Drivers Who Think Ability to Surf Internet in Car Represents Significant Safety Issue
[Click to enlarge graphic]
 - Not only are phoning and texting while driving still serious issues, but distracted driving has potential to exponentially increase
- Drivers continue to be conflicted between desire to be “plugged-in,” w/ 40% overall wanting Internet in their vehicles
- Have concerns about safety, w/ 87% believing in-vehicle Web access is safety issue
- Over 50% still admitting to illegally texting/phoning while driving even though 95% want Internet banned or restricted in vehicles
- Autobytel “What’s Hot Now?” report, Wired-in-the-Car, released as part of National Safe Driving Month
- Wired-in-the-Car based on snapshot survey of consumers who visit Autobytel’s network of sites
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Last Minute News
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Lobbyists Scrap Plans for Distracted Driving Coalition The Drive Coalition, an effort by lobbyists to reframe the debate about distracted driving, has fallen apart. The idea was to rally support for mobile device makers, car companies and others to fight state laws aimed at prohibiting motorists from talking and sending text messages while driving. Read more National Safety Council President Joins Transportation Secretary LaHood to Address Distracted Driving National Safety Council President Janet Froetscher today emphasized the leadership of the business community in calling for strong laws and visible enforcement, combined with education, to eliminate cell phone distracted driving. Froetscher made her remarks during a press conference with Secretary of Transportation Ray LaHood hosted in response to a recent attempt to organize businesses to oppose distracted driving laws that focus on cell phone use while driving. Read more
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Fleet People Going Places
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Terri Stiffler
AmeriFleet Transportation
Director, Client Relations
AmeriFleet Transportation, the Atlanta-based industry leader in total logistics solutions and transportation services to the fleet management and corporate fleet industry, announces the promotion of Terri Stiffler to Director, Client Relations.
Stiffler joined AmeriFleet in 2002 as an account consultant and most recently held the position of Client Relations Manager, AmeriFleet Canada. AmeriFleet created the new position of Director, Client Relations to insure execution of their strategic geographic expansion initiatives in both the Canadian and U.S. markets. In her new role, Stiffler will focus on the continued development and growth of AmeriFleet’s Canadian business unit through consultative sales efforts and client relations. She will also work on strategic growth initiatives and client development in the U.S. Prior to joining AmeriFleet, Stiffler held a position as a service center liason with PHH, one of the world’s leading fleet management companies.
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Chris Hurren
ARI Financial Services, Inc.
Vice President Finance and Accounting
ARI Financial Services, Inc., a subsidiary of Automotive Resources International (ARI), a leading global fleet solutions provider specializing in complex car and truck fleets, welcomes Chris Hurren as Vice President Finance and Accounting.
Hurren comes to ARI from BMW Group Canada where he served first as treasurer and director of tax and then as corporate controller over the past seven years. Prior to BMW, Chris worked at General Motors of Canada as a senior treasury analyst and financial analyst. He commenced his accounting career with KPMG and served as an audit manager. Hurren received his Masters of Business Administration from the Richard Ivey School of Business and earned a Bachelor of Arts degree from the University of Western Ontario. Chris is designated as a Chartered Accountant (CA) and as a Chartered Financial Analyst (CFA).
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| Managing Your FleetTrends, Issues & Opportunities |
Fuel Management for Emergency Situations Requires Advanced Planning
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Fleet managers need to plan for emergency situations well in advance. This includes planning to provide fuel under all conditions from bulk tanks, mobile refueling trucks/sites, and commercial cards.
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International Tops Class 8 Vocational Truck Segment in Satisfaction Survey
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International was ranked best in the Class 8 vocational truck segment in customer satisfaction and dealer service. Freightliner and Kenworth followed in the tough market. Quality was thought to suffer due to plant layoffs and shutdowns as sales volume dropped. However, dealers improved service trying to keep customers and attract others.
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| Manufacturer DevelopmentsDesign, Production, & Services |
Ford to Broaden Lincoln Lineup
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Smaller, stylish cars and SUVs will help Ford reinvigorate the Lincoln brand. By killing Mercury, Ford gives Lincoln new opportunities that previously would have conflicted with its sister brand. Since Ford sold off its other luxury brands, success at Lincoln becomes more crucial, say analysts.
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Detroit-3 Earning Kudos for Pickup Quality
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Latest J.D. Power survey indicates pickups are now among the highest-quality vehicles on the road today with the Chevrolet Avalanche, GMC Sierra and Ford F-150 leading the pack. Quality makes these profitable vehicles even more profitable for automakers.
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| Driving Green Initiatives, Actions, & Implementations |
Ecotality Bringing 15,000 Charging Stations to 13 U.S. Cities
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With the Chevrolet Volt and Nissan Leaf coming to market later this year, plug-in hybrids and pure electric vehicles are gaining much praise, yet the charging station infrastructure is quite limited. Enter Ecotality, an electric transportation company prepared to launch 15,000 public charging stations in 13 markets.
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Fiat Promoting Natural Gas Chrysler Vehicles in U.S.
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Fiat SpA has been selling significant volumes of natural gas-powered vehicles in the European market for several years. Now Fiat executives are promoting Chrysler electric vehicles in the U.S. market as a viable transition method during the next two years, before electric vehicles join the ranks of Chrysler products.
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| The Intelligent Vehicle Telematics, Telecommunications, &
Technology |
Ford Curve Control Upgrades Stability-Control System
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The all-new 2011 Ford Explorer will be the first to offer new curve control technology upgrading the stability-control system. Curve control automatically reduces vehicle speed by decreasing engine torque when needed to keep the vehicle on the steered curve path. It will be standard on 90% of Ford crossovers, SUV, trucks and vans by 2015.
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It's a Car...No, It's a Plane
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Terrafugia has cleared a major FAA hurdle to producing its $194K Transition car-plane by 2011 to over 70 waiting customers. Transition is being marketed as the next "wow" vehicle to private pilots who want a plane without the added cost of storing it at a hangar and having to find ground transportation on both ends of a trip.
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| Driver Safety Management Practices, Policy, & Training |
Affordable TRW Collision Mitigation Braking Alerts Drivers to Potential Collisions
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Luxury car safety features using radar to sense up-coming crashes and cruise control that adjusts to traffic ahead are now more affordable with TRW's 24GHz sensor. These features could find themselves in more vehicles providing all-weather safety improvements.
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Teaching Teens Positive Effects of Cell Phone Restraint While Driving
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Research from the National Young Driver Survey of 5,500 teenagers indicates that teens who seldom talk and drive were motivated by positive benefits: better attention to road, less likely to crash, following the law.
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| Fleet Vehicle Remarketing Marketing Strategies, Channels,
& Sales Data |
Edmunds: GM Outpacing Field in Used-Car Pricing Strength
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Edmunds.com says on average a 3-year-old car is worth 11.1% more than it was last year. All used cars are up 5.5 percent this year, compared to the normal trend of 3.5 percent. GM vehicles are outpacing other brands, mainly from the strength of its full-size trucks.
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ALG: Mercury's Resale Value Iffy
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A recent ALG Residual Value Report indicates that when a brand is cut from an automaker, it usually loses 2-3 points in the first year and 3-5 points in 36-month retention. In addition, macro-economic indicators are less favorable for Mercury than some other discontinued brands.
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