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November 11, 2010
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| Fleet Trends & Issues |
Opportunities & Successful Fleet Management |
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Get Better Work Trucks by Writing Better Specifications By: Robert "Bob" Johnson, director of fleet relations, NTEA If you’re like most fleet managers, you are constantly looking for ways to improve the quality and productivity of your work trucks, while at the same time reducing your maintenance and operating costs. One of the best strategies to accomplish these goals is to improve the equipment specification process. The specifications you provide to the chassis dealer and upfitter(s) who will supply your truck-mounted equipment will ultimately determine how productive and cost-efficient your new work truck will be. More and more fleets rely on third parties, including chassis dealers, equipment distributors, body and equipment companies, and leasing companies, to provide work truck specifications. There are a number of reasons behind this trend, including many fleet managers’ increased workloads; lack of knowledge about the functional requirements of the vehicle, limited awareness of the products available to meet those requirements and a simple lack of training in how to develop a quality specification. Chassis dealers, body and equipment companies, and equipment distributors can be valuable resources in the work truck specification process. Many are factory-trained and can provide recommendations about the best products for your applications based on OEM specifications and their own experience working with organizations similar to your own. It’s up to you to apply their expertise and suggestions to your own situation. After all, the first step in developing a specification is to determine what the job requirements are. If you and the end-users you work with don’t know what you need, how can you expect someone who is not connected with your business to know? You must be the expert. Many fleet managers confess that they just don’t know how to write specs. Admittedly, writing a good specification isn’t easy. You need to understand issues such as regulatory compliance; vehicle payload and weight distribution calculations; matching truck bodies and equipment (second unit) to the chassis; and truck powertrain design. Fortunately, there are a number of resources available to educate fleet managers about these topics. Click here to read more Robert "Bob" Johnson is a former fleet manager and currently serves as director of fleet relations for the National Truck Equipment Association (NTEA). He will lead three technical sessions on work truck specification at The Work Truck Show® 2011: "Optimizing Work Truck Body and Equipment Specifications," "How to Ensure Your Next Truck Chassis Matches the Job Requirements" and "Spec’ing Your Next Truck Powertrain for Optimum Efficiency & Performance." He is also co-presenting the expanded Fleet Management Symposium on March 7-8.
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| Managing Your Fleet Selector |
OEM & Equipment Manufacturer
Products & Services
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2011 Scion tC The all-new 2011 Scion tC arrives after seven years with the original. This second-generation tC rides on a new platform, keeping the same length but offering a bit more room. A new engine brings 180 horsepower and 173 pounds-feet of torque, with a quickened pace: from 0 to 60 in 7.6 seconds. Read more
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2011 Toyota Camry The Toyota Camry is not only the most popular midsize car in America, it's been the best-selling passenger car in this country for the last eight years. It does everything very well and is known for its quality, reliability and resale value. It's pleasant to drive in all circumstances.Read more
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2011 Hyundai Equus The Equus is Hyundai's first foray into the large luxury car market segment and it is effectively an all-new model in a very competitive environment. Equus aspires to compete with the Lexus LS 460, Mercedes-Benz S-Class, and BMW 7 Series.Read more
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| Association News & Views |
Activities, Events & Success Stories |
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NAFA’s Legislative Team Clarifies Sales Of Taxable Fuel Issues Two months ago, NAFA Fleet Management Association sought clarification on two issues of great importance to fleet managers in the public service sector: the first dealt with the sale of taxable fuel to State and local governments and the second with the issue of fuel resale to other State and local governments. The Association has just received confirmation from the Office of Chief Counsel for the Internal Revenue Service that sales of fuel from one jurisdiction to another are permissible. The IRS said it permits State-to-State (including county and municipal governments) sales with both being tax exempt. However, the IRS also said that State or local governments may not sell tax free fuel to a federal agency. The IRS was responding to a memorandum sent by NAFA’s U.S. Legislative Counsel sent on August 17, 2010. NAFA retains experienced legislative representatives in Washington, DC and Ottawa, ON to coordinate vital information on laws, regulations, and other government activity relating to fleets. As the largest fleet management association in North America, NAFA helps serve as the collective voice of the industry. The Association’s legislative team not only keeps the Membership up-to-date on legislation, which could affect fleet managers, but often plays an active role with pending legislation. "As the premier association for fleet managers, NAFA is the legislative voice for fleet management advocacy," said NAFA’s Executive Director, Phillip E. Russo, CAE. "Our Legislative Counsels are here to represent the concerns and views of our Members to the legislature in order to assure that fleet concerns are considered when laws and regulations are being discussed. NAFA encourages our Members and all fleet managers to communicate regularly with lawmakers and regulators.”"
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Janice Sutton, Editor
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Companies face many, many risks during times of disasters. Fleet Lease Disposal, Inc. (FLD) found this out when hurricane Wilma struck in October 2005 and took down their main office and primary datacenter for four months. In Fleet Resources, Papers & Expert Advice you'll want to read the compelling case study "Rapid Recovery in the Cloud" and find out how FLD was able to "restore their ITinfrastructure and data in less than one hour, save thousands of dollars and man hours a year and achieve an 18 month ROI." Impressive. Need some help writing work truck specs? Bob Johnson, former fleet manager and now director of fleet lease relations for NTEA, can help. Check out his article in Fleet Trends & Issues. He will lead a technical session on this and several other topics at The Work Truck Show® 2011. He is also co-presenting the expanded Fleet Management Symposium on March 7-8. Click here for more information on The Work Truck Show® and Green Truck Summit - March 7-10 in Indianapolis. We are planning to attend NAFA Pacific Southwest Chapter's annual LA Auto Show meeting on Monday, November 22nd. We hope to see you there! Drive Safely, Janice Sutton
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| Places, Sites, and People for New Ideas
& Applications |
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Rapid Recovery in the Cloud Find out how the iland Continuity Cloud© leveraged Dell EqualLogic SANtechnology enabling FLD, Inc. to restore their ITinfrastructure and data in less than one hour, save thousands of dollars and man hours a year and achieve an 18 month ROI. As one of the first in the remarketing industry to leverage this technology, this case study will provide the details on how you can achieve the same success for your business. Read more
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'Beggs on the Market' In addition to the Black Book survey personnel attending the regular 59 auctions this past week, the Editors were busy at traditional auto focused auctions, powersports and motorcycle auctions, and heavy duty truck auctions, along with attending a very upbeat Used Truck Association (UTA) convention in Orlando. Click here to view the current 'Beggs on the Market' video blog.
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John Ruppert
Ford Motor Company
General Manager, Commercial and Government Operations
Ford Fleet Difference
The success of Ford in both the fleet and retail markets over the past few years has been breathtaking. When Automotive Information Network publisher Chuck Parker interviewed John, he asked him to talk about the company's commitment to the fleet market with green products and his assessment of the state of the industry.
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Kent Boskovich
Union Leasing
President
A Relentless Commitment to Service
Union Leasing has been providing fleet management solutions to the small and mid-size market for over 50 years. We asked Kent to tell us what makes this venerable company so successful. About Union's employees he says, "Each person, each department, has a relentless commitment to servicing our clients." We wanted to hear more.
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Steve Gibson
AmeriFleet Transportation
Vice President of Sales and Marketing
The Other Side of the Desk
We talked with Steve at the recent AFLA conference and were keen to hear about his recent appointment at AmeriFleet as their chief sales executive. He came to AmeriFleet with an extensive fleet background and we asked him to tell our readers about some of the issues and trends he is seeing in the industry.
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LA Auto Show
Los Angeles Convention Center Los Angeles, CA November 19-28, 2010
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NADA Convention & Expo
Moscone Center San Francisco, CA February 4-7, 2011
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Green Truck Summit-The Future of Clean Commercial Vehicles
Indiana Convention Center Indianapolis, IN March 7-8, 2011
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The Work Truck Show® 2011
Indiana Convention Center Indianapolis, IN March 8-10, 2011
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NAFA 2011 Institute & Expo
Charlotte Convention Center Charlotte, NC April 9-12, 2011
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| Conference Planning Guide |

Exhibitors, Educational Sessions, & Events |
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Pacific Southwest Chapter - Annual Los Angeles Auto Show Meeting When: Monday, November 22, 2010 Where: Los Angeles Convention Center 1201 S. Figueroa Street -- Room 511 Schedule: 10:30 am -11:30 am Registration and Auto Show ticket pick-up at West Hall Entrance Information Desk (Note: Showroom entrance begins at 11.00 am) 10:30 am - 12:00 noon Networking 12:00 noon - 1:30 pm Lunch and OEM Presentations (Representatives will provide a brief overview of their latest models, their latest advancements in vehicle technology and plans for new products.) 1:30 pm Self-tour of LA Auto Show RSVP by: Monday, November 15, 2019 to Leonie von Halle email: lvonhall@csc.com phone: (310) 615-1778 Cost: $45 if registered by November 15, 2010 (cash or check only-NO credit cards) $50 for registrations between November 16 - 20 $50 for walk-ins, however meals can not be guaranteed.
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Stats and Smart Charts
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Gasoline Price Forecast Through 2015
[Click to enlarge graphic]
- Retail regular grade gasoline prices fell from $2.85 per gallon in April and stood at $2.73 per gallon in August
- Between April 2010 and August 2010 EIA deflated outlook for gas prices by 2.5% in 2010 and 1.4% in 2011
- ALG increased number of forecasting sources considered for oil prices - consensus indicates less inflation in oil and gas prices
- ALG lowered the annual outlook for average retail regular grade gasoline in 2013 from $4.25 to $3.95
- Has positive impact on residuals - vehicles w/ low MPG ratings will be most positively impacted, while vehicles w/ high MPG ratings will be negatively impacted
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Last Minute News
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Ford F-150 is V-6 Work Truck Shootout winner To sample the state of the art among true work trucks, USA TODAY and PickupTrucks.com teamed for the V-6 Work Truck Shootout — a face-off for no-frills, full-size pickups. They were put through their paces on test tracks and Michigan roads. Read more Study Says Drowsy Drivers Are Involved in 17% of Fatal Crashes An estimated one in six fatal crashes — nearly 17 percent — involves a drowsy driver, which is about four to five times higher than previous studies have found. And drowsy drivers are involved in one in eight crashes that result in serious injury, the report found. Read more When Used Costs More Than New Values for late-model used cars and trucks—especially trucks and SUVs—have jumped during the past year to the point that in some cases, the monthly payment on a one-year-old vehicle could cost you more than a new one. Read more
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Fleet People Going Places
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Carey Cox
PHH Arval
The Center for Transpotation Safety Instructor
The Center for Transportation Safety (CTS), a division of PHH Arval, has announced that one of its instructors, Carey Cox, has been recognized by the National Safety Council as the 2009 Defensive Driving Courses Instructor Trainer of the Year. A retired state trooper from Colorado , Carey Cox has investigated thousands of crashes and now spends his time as an instructor for CTS, training everyone from teens to CEOs on safe driving principles and techniques. He has been a CTS instructor since 2007.
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Cheryl Graham
ARI® Automotive Resources International
Business Development Manager-State & Government
ARI announces the appointment of Cheryl Graham to the position of Business Development Manager - State & Government. Graham will act as the primary liaison between the various state agency clients. In addition, she will oversee the implementation of procedures to state sub-entities and other state-specific project management. Graham holds 30 years of ARI experience, most recently as project manager, but also as manager in Billing and Implementation, Client Support Services and as a district manager in the Northeast Region.
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| Managing Your FleetTrends, Issues & Opportunities |
Fleets Trim Costs Through Parts Inventory
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Fleets can reduce operating costs by focusing on obsolete and overstocked parts. Cash tied up in slower moving parts can be put to other uses without impacting operations. Inventories can contain 20 percent to 30 percent slow moving or underused inventory.
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2011 Hybrids, Clean Diesels, Gasoline Models Best Fuel Economy Performers
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EPA and DOE have released the 2011 Fuel Economy Guide. The guide finds that the best fuel economy performers are hybrids, but the 2011 fuel economy leader list also includes fuel-efficient clean diesels as well as gasoline models. For the first time, the guide includes medium-duty passenger vehicles, which are generally large SUVs and passenger vans.
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| Manufacturer DevelopmentsDesign, Production, & Services |
Ford F150 Leads 2010 Sales Growth, Thanks to Fleets
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Vehicle sales for October are up 11 percent from the previous year putting the industry on track for a 12 million vehicle year. Ford F150 leads vehicle sales followed by the Chevrolet Silverado.
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Dodge Bullish on 2011 Lineup
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Dodge officials released pricing and additional details on its 2011 lineup. Expectations are high in the Dodge camp with the new Durango and Charger, starting at $29,195 and $25,170, respectively.
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| Driving Green Initiatives, Actions, & Implementations |
Fight Over New Fuel Economy Standards Begins
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Detroit automakers and Toyota contend that the Obama administration grossly overstated the feasibility of getting to 62 mpg by the year 2025, already set by EPA mandate to reach 34.1 mpg by 2016, a 40 percent gain. NHTSA to review comments, EPA declines comment.
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J.D. Power, Consumer Reports Differ on Appeal of Battery-Powered Buying
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J.D. Power and Associates predicts sales of EVS, plug-ins and hybrids will not be as big as originally predicted, at 7 percent of the global market by 2020. Consumer Reports has done a study with different results, where 39 percent of American motorists will consider buying one of these battery-based vehicles the next time they go shopping.
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| The Intelligent Vehicle Telematics, Telecommunications, &
Technology |
Automakers to Rely on Turbocharged Engines to Meet Tougher Fuel Economy Targets
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Automakers looking for moderately priced ways to meet fuel economy targets are likely to pair turbochargers with smaller engines, thereby maintaining performance. Today's turbochargers have parts designed to withstand the heat of the exhaust gases that power them and are made with finer tolerances to improve reliability.
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Automakers Struggle with Decision to Add 'Apps' to Vehicles
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As the smartphone market continues to burn white-hot, automakers need to ask themselves one crucial question: Which comes first, the app or the money? The business models are still fuzzy because so many issues around software production and delivery, safety concerns, and consumer demand are still unclear. Some automakers wonder whether they should even expect to make money from in-car apps or just put apps down as cost centers or marketing expenses.
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| Driver Safety Management Practices, Policy, & Training |
Advanced Collision Warning, Blind-Spot Detection Systems to Expand
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When NHTSA decided to include technology that provided advanced collision warning and blind-spot detection into its 2011 model year 5-star safety technology, it started a push for the technology in the US market. Automakers are still coming to grips with how to best notify drivers of danger and how much vehicle control to automate.
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Adjustable Pedals Present Aftermarket Opportunity
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Power adjustable foot pedals sound worth their weight in gold, but petite car shoppers aren't opting for them as readily as might be expected, despite the reach needed to pilot many of today's autos. Only about 30% of vehicles sold today are equipped with adjustable controls. Many cost-conscious consumers are turning to aftermarket kits.
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| Fleet Vehicle Remarketing Marketing Strategies, Channels,
& Sales Data |
Manheim Used Vehicle Value Index Reaches Record High
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Manheim's Tom Webb reports the Used Vehicle Value Index spiked in October to 122.9, the most in a single month in more than a year and the highest reading ever reached, representing a 4.7 percent increase over last year.
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KAR Boss Sees Uptick in Used Market if SAAR Exceeds 12 Million
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KAR Auction Services CEO Jim Hallett expects organic growth at six new acquired properties just by hanging out the ADESA shingle. He also says a new facility in Las Vegas will start paying off quicker than normal because of existing resources.
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