| Video News & Views
PEOPLE & IDEAS TO WATCH | Outsourcing Fleet Services | | Outsourcing some fleet management services may result in reduced costs and greater efficiency |
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January 27, 2011
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| Fleet Trends & Issues |
Opportunities & Successful Fleet Management |
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NAFA Opens Submissions For 2011 Goill Awards For the past 18 years, NAFA Fleet Management Association has been honoring fleet management professionals for innovative ideas that have increased productivity and created bottom-line cost savings with the Larry Goill Memorial Quality Fleet Management Idea Award. First presented in 1993, the award has since gone on to become one of the most recognized and most prestigious honors in the industry. The search is now on for ideas worthy of continuing the Goill Award’s name. Submissions for the 2011 Goill Awards may be sent to NAFA until Friday, February 25. The awards, named after the late NAFA Vice President for Canada, will be presented at NAFA’s 2011 Institute & Expo in Charlotte, NC April 9-12. Bell Canada, the corporation for which Goill worked, co-sponsors the award with NAFA. Recent winning ideas have included innovative uses of Internet technology; replacing traditional diesel and gasoline-powered vehicles with CNG-powered; the formation of both internal and external strategic alliances; cost and efficiency savings realized by restructuring personnel; the design of unique vehicles to meet special needs; creative lifecycle analysis and decision making; and unique hiring and retention practices. "The Goill Awards are an opportunity for fleet managers to get recognized for their innovation and problem-solving techniques," explained NAFA’s Executive Director, Phillip E. Russo, CAE. "They showcase how fleet professionals turn situations into solutions. They are among the best ideas in today’s fleet management profession. Based on the range of situations faced within the industry in recent years, I am sure there is no shortage of creative solutions that fleet managers will be submitting for this year’s awards." Applications may be submitted by any individual who is directly employed in a vehicle management role by any company, utility, government agency, or not for profit organization in the United States or Canada. Eligibility is limited to persons who perform the usual and customary duties of motor vehicle fleet administration directly for the fleet operator and who are not engaged in the sale, rental, lease of, or services to motor vehicles. Entries are judged by a distinguished panel of experienced fleet managers from diverse backgrounds. The criteria for judging includes: originality and innovativeness; demonstrated effectiveness of the practice as documented in the entry; and applicability to other fleets. For more information, visit http://www.nafa.org/goillawards .
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| Must See & Do at NAFA 2011 |
Featured Exhibitors, Presenters
& Awards
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2011 Chevrolet Camaro The reborn Camaro begins its second year with the 2011 model, and it's turning more heads than ever because the striking styling is starting to sink in as more new Camaros hit the road. Camaro LS and LT models use the Cadillac 3.6-liter V6 with a 6-speed manual transmission standard and 6-speed automatic (with semi-manual shifting) optional. The V6 revs to 7000 rpm and sounds sweet along the way. We found the handling, ride and brakes to be excellent in both the Camaro LT and the Camaro SS with the big V8. Read more
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2011 Chevrolet Malibu The Chevrolet Malibu midsize sedan blends a smooth ride with responsive handling. Malibu offers a choice of four-cylinder and V6 engines. A new fuel-saving 6-speed automatic transmission with TAPShift manual control is standard on all 2011 Malibu models. OnStar 9.0, the latest version with improved voice recognition. Malibu offers value, with a lower purchase price, and good fuel economy: EPA City/Highway ratings of 22/33 mpg for the four-cylinder, 17/26 mpg for the V6. Read more
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2011 Infiniti M The 2011 Infiniti M37 and Infiniti M56will add considerable power, technology and style without a commensurate increase in weight. Just half an inch longer than the outgoing model, the 2011 Infiniti M looks better because it is lower, two inches wider, and the roofline flows into a brief decklid with curved upper lip. Jaguar's XF profile comes to mind. However, the M's compact nose with sloping hood and mild fender bulges mixes Infiniti FX elements with wheel arches like Mazda and Mercedes sedans. Read more
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| Association News & Views |
Activities, Events & Success Stories |
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Navistar's Shane Terblanche Announced As Keynote Speaker For NAFA's 2011 I&E If this decade develops into the era of the electric vehicle, credit should go to innovators like Shane Terblanche who are helping to lead the way. Terblanche is the Vice President and General Manager for Navistar Electric Vehicles , one of the companies that became the face of President Obama’s American Recovery and Reinvestment Act, and which holds the distinction of shipping the first electric vehicle produced as a result of that legislation. NAFA Fleet Management Association is proud to announce that Terblanche will provide a Keynote Address at the Association’s 2011 Institute & Expo in Charlotte, NC, on Sunday, April 10. Terblanche has served as General Manager, Electric Vehicles at Navistar since 2009. With extensive background directing strategy, product and market planning, and new business initiatives, Terblanche led Navistar’s efforts to bring the first electric-born delivery vehicle to market in North America. Terblanche, a native of South Africa who holds a BS in Mechanical Engineering from Technikon Witwatersrand (now the University of Johannesburg), joined Navistar in 2002 and has served in a variety of strategic marketing and product development functions prior to serving in his current position. In August 2009, President Obama personally visited Navistar’s manufacturing facility in Wakarusa, IN to announce a $39.2 million grant funded by the American Recovery and Reinvestment Act and administered by the U.S. Department of Energy to develop and deploy electric trucks. Less than 10 months later, Terblanche was congratulated by Vice President Joe Biden on shipping the first electric vehicle produced as a result of the grants. Terblanche joins Don Esmond, Senior Vice President of Automotive Operations for Toyota, as Keynote Speakers for the 2011 I&E. Esmond’s Keynote Address is scheduled for Monday, April 11. NAFA’s annual Institute & Expo, which takes place April 9-12 at the Charlotte Convention Center, brings more than 2,000 fleet industry professionals together for four days of education, trade show experience, and networking. It is recognized as the event of the year for the fleet management industry as every industry segment from corporate to government, university, and public service will have fleet managers in attendance. For more information on NAFA’s 2011 I&E, please visit www.nafainstitute.org.
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Janice Sutton, Editor
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We're gearing up for NAFA I&E: April 9-12 in Charlotte, North Carolina. Have you registered yet? If not, register on or before February 11th and save a cool $50. As you will note in Fleet Trends & Issues, NAFA is requesting submissions for the prestigious Larry Goill Awards. Last year, the winners were David Vasquez, the Manager of Fleet Operations for SECO Energy, and Bob Adamsky, Fleet Manager for Del-Air Heating and Air Conditioning. As Director of Fleet Maintenance for Lake County in Sumpterville, Florida, David Vasquez recognized that a large number of county vehicles were assigned as take home vehicles without proper justification - a situation that negatively impacted the county’s fleet budget. Vasquez developed a simplified process to justify vehicle assignments based on the percentage of commuting use versus business use. Bob Adamsky increased his fleet’s fuel mileage by 10 percent, lowered fleet emissions, and enhanced driver safety by limiting his vehicles’ top speeds - and accomplished all of this in just 10 minutes! By reprogramming all of his vehicle’s electronic control modules to limit the vehicle’s speed and simply having a technician plug in the system, his simple yet effective plan was underway. We will be in Charlotte to congratulate this year's winners and 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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Cox Enterprises is utilizing Chevin Fleet Solutions FleetWave to deliver comprehensive fleet and asset management oversight for more than 13,000 assets across North America The Challenge: Cox Communications has a mixed fleet of light track vans, bucket trucks, service vans and heavy duty vehicles. To manage its vehicles and all of the vehicle related data generated by its operations, Cox used a hybrid fleet management application provided by one of its vehicle maintenance management vendors. This software was later withdrawn by the vendor... Read the case study .
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Beggs on the Used Car Market. Week three of 2011 brought another strong market; 63% of the adjustments were increases in value. The overall change in the car segments was -$18, the best weekly retention since the week ending May 28, 2010. Trucks finished up $23, their third consecutive week in positive territory. Click here to view Ricky Beggs' video blog.
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Ashley Sowerby
Chevin Fleet Solutions
Managing Director
Ownership and Control
Chevin is in the business of providing fleet management software solutions. When we asked Ashley, the company's founder, what they bring to the table that leasing companies do not, "First of all," he replied, "ownership and control."
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Tim Janssen
Innovative Funding Services (IFS)
President
Doing the Right Thing!
IFS, a leader in fleet and off-lease financing, has enjoyed phenomenal success since its 2007 inception. When we asked Tim about his amazing results he said, "It is really pretty cool, but again, you've got to do the right thing for your customers."
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Jimmy Ellis
Jim Ellis Automotive Group
Vice President and Chief Operating Officer
Fleets Go Wheego!
Jimmy's Atlanta dealership is keen to sell the Wheego all-electric vehicles to fleets and believes the highway speed EV 'LiFe' will capture fleet attention. We wanted to hear more about why this mega-dealer is so enthusiastic over Wheego.
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NADA Convention & Expo
Moscone Center
San Francisco, CA
February 4-7, 2011
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Fuel Cell & Hydrogen Energy 2011
Gaylord National Hotel and Convention Center
Washington, DC
February 13-16, 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 |
The Work Truck Show® 2011 to Feature Largest Ever Green Truck Ride-and-Drive The Green Truck Ride-and-Drive at The Work Truck Show® 2011 will be the largest in the event’s history, with 22 hybrid, alternative fuel (including pure electric), and high-efficiency diesel work trucks available for attendees to drive. Additional green commercial vehicles will provide equipment demonstrations in a stationary display area adjacent to the outdoor Ride-and-Drive course. The Work Truck Show 2011 is held in conjunction with the 47th Annual National Truck Equipment Association (NTEA) Convention at the Indiana Convention Center in Indianapolis, IN. The Work Truck Show runs March 8-10, 2011, with educational programming starting March 7. The Green Truck Ride-and-Drive is open to all Show attendees on Tuesday, March 8, and Wednesday, March 9, from 12:00pm to 4:30pm. The Green Truck Ride-and-Drive debuted at the Work Truck Show 2007. Thanks to the recent expansion of the Indiana Convention Center, the NTEA has enough space this year to meet the growing demand from manufacturers to showcase a record number of cutting-edge hybrid and alternative fuel work trucks in the Ride-and-Drive. Participating vehicles range from a compact electric van to a Class 8 truck fueled with compressed natural gas. Other vehicles will feature technologies such as electric, hydraulic, and plug-in hybrids. The Ride-and-Drive course covers city streets to provide a realistic driving experience. Access to the Green Truck Ride-and-Drive is included free with Work Truck Show registration. Click here for more information
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Stats and Smart Charts
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Largest Increase in Rental Fleet Sales Penetration – 2010 vs. 2009
[Click to enlarge graphic]
 - ALG measures Rental fleet penetration (RFP) as total number of vehicles sold into rental fleet channels divided by total sales
- Has been found to have an impact on both residual performance and perception of quality
- Economic recovery has helped boost total sales for the overall industry with about 31% year over year increase in total sales from 2010 to 2009 July YTD
- RFP for the industry has similarly increased from about 11% in 2009 YTD to about 13% in 2010 YTD
- Resulting in an increase to ALG’s used supply forecast
- Chrysler brand, which has had history of high rental fleet levels in past several years, showed highest increase in RFP to about 49% in 2010 YTD compared to about 19% in 2009YTD
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Last Minute News
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Autos May Soon Have 'Conversations'
A group of eight automakers that includes Ford Motor Co., General Motors Co., Toyota Motor Corp. and Volkswagen AG is working in Farmington Hills [MI} on technology to enable vehicles to talk to each other, to prevent crashes. Read more Fuel Standards May Boost Auto Sales
The Detroit Three will spend significantly to comply with tougher fuel-economy standards, but will get more sales and profitability bang for their bucks than their Asian and European rivals, a University of Michigan researcher said Monday. Read more Transportation Chief Lobbies Ford, Chrysler to Help Stop Distracted Driving
Transportation Secretary Ray LaHood, who has used his bully pulpit to promote bans on texting and phoning while driving, met privately Tuesday with Ford CEO Alan Mulally and Chrysler CEO Sergio Marchionne to gain their support in preventing distracted driving. Read more Key to Next Push for Safer Driving: Technology
Can we rely on cars to anticipate and avoid crashes? Should your SUV be able to decide you've had one drink too many? How connected to your social network can you be and still drive safely? Read more
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Fleet People Going Places
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Steve Case
Zipcar
Board Director
Zipcar has added Steve Case to its Board of Directors. Case is the co-founder and former CEO and chairman of America Online (AOL). In addition, Case is the founder of Revolution, LLC, a holding company that purchased a controlling interest in Flexcar in 2005. In 2007, Flexcar merged with Zipcar and assumed the Zipcar brand.
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Philip Murtaugh
CODA Holdings
CEO
CODA Holdings, a California-based leading developer of advanced Lithium-ion power battery systems and all-electric vehicles, announced that its Board of Directors has named Philip Murtaugh, a seasoned executive with extensive operating, manufacturing, sales and marketing experience in both the United States and Asia, as its new Chief Executive Officer. Murtaugh was also appointed a member of CODA's Board of Directors.
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| Managing Your FleetTrends, Issues & Opportunities |
New Zurich Program Uses Telematics to Reduce Fleet Costs, Improve Safety
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To help fleet managers minimize their fleet's operating costs and reduce crashes while keeping their vehicles up-and-running and their drivers safe, Zurich, one of the largest fleet insurers in North America and globally, has created Zurich Fleet Intelligence (ZFI). This new, unique program in the U.S. combines Zurich's in-depth understanding of fleet insurance, operations and risk engineering.
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Ford Selling CNG-Powered Transit Connects to Chicago Cabbies
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A Chicago taxi company has purchased 12 Transit Connect taxis that run on compressed natural gas. Operation should start in March and is part of the company's goal to reduce emissions 25%.
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| Manufacturer DevelopmentsDesign, Production, & Services |
Auto Execs Rank Fuel Efficiency as Most Important Product Issue
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A KPMG survey of auto executives reports the top three product attributes important to consumers in the next five years are fuel efficiency, vehicle styling and environmental friendliness.
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Hyundai Sonata Takes Highest Score Ever in 14th Annual Strategic Vision Index
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Hyundai took first and second place in make/model scores in Strategic Vision’s Total Value Index, and at 860 points, the 2011 Hyundai Sonata received the highest score ever in the index’s 14 year history. Ford Motor Co. also achieved significant recognition, passing up American Honda for second place in overall scores – not bad, given Ford ranked last not long ago.
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| Driving Green Initiatives, Actions, & Implementations |
Ecotality, Sprint Expand Cellular Carrier Move into Smart Grid
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Electric car charging station supplier Ecotality is working with Sprint to expand EV charging services including GPS searchable stations, billing services, and ability to track data on charging habits. It's one of many examples in recent months of cellular carriers moving into the smart grid with increasing vigor.
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Natural Gas, Renewable Energy Industries Need to Work Together
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For advocates of plug-in electric vehicles, arguments usually come up regarding the positive benefits of EVs being offset by half of U.S. electricity coming from coal-powered electricity plants. As the country moves away from its addiction to coal, renewable energy sources need to have a better working relationship with providers of natural gas, says Sierra Club chairman Carl Pope.
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| The Intelligent Vehicle Telematics, Telecommunications, &
Technology |
Mitsubishi i-MiEV Follows Volvo C30 Electric in Crash Test Safety
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Following right behind range anxiety, it's very likely that the safety of electric vehicles must be addressed by those selling these new vehicles to concerned shoppers. Just as safety-conscious OEM Volvo has recently done, Mitsubishi has undergone crash testing of its upcoming electric car, the i-MiEV, which was performed by ADAC, Germany and Europe's largest automobile club.
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Telematic Apps Help Improve Driving Habits, Save Fuel
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The telematics industry is developing a number of applications to assist drivers in greening their vehicles. These apps generally fall into two categories: changing fuel-wasting driver behavior, such as accelerating too quickly, or finding the best route to reduce unnecessary mileage and idling in traffic.
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| Driver Safety Management Practices, Policy, & Training |
Fight Erupting Over Distracted Drivers
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Transportation Secretary Ray LaHood regularly refers to distracted driving as an "epidemic." Toyota said last week it will spend $50 million on research into issues including distracted driving, a "growing cause of accidents." And state legislators are racing to enact laws banning what they see as the culprit: text messaging and handheld cellphones.
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Pedestrian Fatalities Up in 2010
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Pedestrian fatalities increased in the first 6 months of 2010. Although difficult to analyze an increase in walkers at this time, more driving distractions and use of intoxicants are leading causes of the increase. Solutions will be found by making pedestrian safety a priority, analysis of crash data, improved engineering, better laws and enforcement as well as education.
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| Fleet Vehicle Remarketing Marketing Strategies, Channels,
& Sales Data |
RVI: Used-Car Values Should Remain Strong for 2011
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The RVI Group says wholesale values slipped in January but are stronger than last year. Overall 2011 prices are expected to stay strong through the year.
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Analyst Sees 'Sensitivity' for Used-Vehicle Values if Gas Prices Rise
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Jonathan Banks, NADA Used Car Guide analyst, says rising fuel prices won't have a "catastrophic" impact on used-vehicles prices as in 2008. But as fuel creeps over the $3 mark, fuel-sensitive segments could fluctuate.
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