| Video News & Views
PEOPLE & IDEAS TO WATCH | The Outlook for Hybrids and EVs in the Used Car Market | | Ricky Beggs, vice president and managing editor at Black Book, talks about the current state and future outlook in the used car market for the hybrid and EV segments, as well as smaller cars and trucks. |
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July 28, 2011
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| Fleet Trends & Issues |
Opportunities & Successful Fleet Management |
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Power Study Finds 2011 Models Most Appealing Ever By: Mike Sheldrick Automakers' 2011 offerings are the most appealing in history, according to J.D. Power and Associates.The company's just released 2011 APEAL (Automotive Performance, Execution, and Layout) study found that new or freshened models outstripped carryover models by 29 points this model year, compared to 18 points this last year, and 10 points in 2009. These results will please fleet managers because they suggest that already-healthy residuals will be further strengthened, and drivers will likely be happy with their selector list. The new models increased the gap between themselves and carryovers even as the appeal of all vehicles reached a record since the APEAL study began in 1996. On a 1,000 point scale, the industry scored 781 points, up from 778 in 2010.The Power study credits styling and improved fuel economy as the driving factors behind the result. BMW and Dodge each won three segment-level awards: - BMW models that received awards are the Z4 Roadster and the X3 and5 Series, both redesigned
- Dodge won awards for the Challenger, and the redesigned Charger and Durango
Ford and Honda captured two model-level awards each: - Ford won awards for the all-new Fiesta and F-150 LD
- Honda won awards for the Ridge line and the redesigned Odyssey
Individual awards were the Chevrolet Volt, Hyundai Equus, Land Rover Range Rover, Lexus IS, MINI Countryman, Nissan Armada, Porsche Cayenne, Scion xB, Suzuki Kizashi and Volkswagen GTI. Of these, the Countryman, Equus and Volt are all-new models, while the Cayenne was redesigned. The Equus achieved the highest APEAL score of any model in the industry in 2011, the first year that a model other than the BMW 7 Series, Lexus LS or Mercedes-Benz S-Class has led the overall model ranking. Three models ranked highest in their respective segments in both the 2011 APEAL Study and the 2011 Initial Quality Study (IQS) were the Dodge Challenger, Ford F-150 LD and Honda Ridgeline. Porsche was the highest-ranking nameplate in the 2011 APEAL Study for a seventh consecutive year. Hyundai improved from 2010 more than any other nameplate this year, while Jeep and Chrysler also improved considerably. The record results for new models was achieved despite quality issues found by Power's 2011 IQS, which was released in June. Even though all-new and redesigned models have more problems, on average, than carryover models, the 2011 APEAL Study found that these same models are more likely to offer the styling, performance and features that customers are looking for. More detail on the study can be found here.
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| Focus On... |
Current Fleet Topics
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WEBINARS The Future of the Used Car Market
Date: Tuesday, August 2, 2011 - 3:00 - 4:30 PM EDT Speakers: Rene Abdalah, Vice President, RVI Group
Eric Ibara, Director, Residual Value Consulting, Kelley Blue Book
Description: Speakers will project and examine the future of the used car market and residual values. This session will present an unrivalled level of in depth analysis based on current vehicle data, market conditions, competition in each segment, and expectations of the future economy. By the end of the session, attendees will have the opportunity to interact with speakers through live Q&A.
Single Registration Rate: $35 Click here to register. Implementing Effective Fleet Cost Reduction Strategies Date: Thursday, August 11, 2011 - 3:00 - 4:30 PM EDT Speaker: Greg Miller, President & CEO, FleetLogik, LLC
Description: This webinar will provide an understanding of fleet economics and where to find sustainable cost saving opportunities. In this session, the speaker will discuss approaches and techniques to identify cost efficiencies within the commercial fleet markets. Single Registration: $35 Click here to register
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| Association News & Views |
Activities, Events & Success Stories |
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Clean Truck Conference Helps Fight Fuel Costs: Will Give Away 25 Free Registrations to Fleets High fuel prices may be assaulting US fleet operators, but the nation’s leading clean truck consortium is launching a major counter-offensive to help fleets out. Together with creating the nation’s largest conference on fuel-saving hybrid and electric trucks crafted to support fleets - the 11th annual Hybrid Truck Users Forum (HTUF) National Conference, in Baltimore, Md. - it has also created a sweepstakes offer to help 25 lucky, qualifying fleet professionals* to attend HTUF free of charge. All attendees will be armed with the latest data and findings on efficient trucks they can use to fight high fuel prices today, and can kick the tires of the world’s most advanced medium- and heavy-duty electric and hybrid vehicles available, hear about the latest state and federal funding initiatives for advanced fuel vehicles and reduce petroleum consumption. And 25 fleet pros who register will be in the running to attend for free! This year’s HTUF conference takes place October 10-13, 2011, at the Baltimore Convention Center and focuses on expanding commercial and military fleet knowledge about the leading-edge of clean, fuel-saving trucks and buses. To enter the sweepstakes, qualified fleet managers* simply visit htuf2011.org and click on Win Free Fleet Registrations.
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Janice Sutton, Editor
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We met Murray Price, managing director of South Africa based Eqstra Fleet Management, by chance one evening at NAFA I&E. He is an engaging fellow and we were so interested in what he had to say about the African market that we immediately scheduled an interview with him the following morning. A member of ARI's Global Fleet Services alliance, Eqstra also has developed a unique GPS tracking system. Want to stop your fleet driver from speeding while he's speeding? Read Murray's interview in The Fleet Spot. Congratulations to Kimberly Fisher, CAFM, newly appointed fleet manager of National Oilwell Varco in Houston! Please check out our Fleet Management Weekly Fanpage, become a fan by clicking on the Like button, and follow us on twitter to get the latest Automotive News. Drive Safety, Janice
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Last Minute News
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Find Out How Today's Uncertain Economy Will Impact the Industry and Your Business With the economic climate shrouded in uncertainty, it is crucial to hear from experts how business may likely be impacted. Industry-renowned economists will present strategic insights, tools and resources at the NTEA's Business and Market Planning Summit, Sept. 19, 2011 at the Hyatt Regency Dearborn (Dearborn, MI). Sign up today to gain information essential for the development of your business and market plans. All industry professionals are welcome to attend. Learn more and register today .
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| Places, Sites, and People for New Ideas
& Applications |
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2011 US Automotive Emerging Technologies Study Integrating such devices as cellular phones, navigation systems, and passenger entertainment in ways that mitigate driver distraction is critical to a safe driving environment. Read more
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Murray Price
Eqstra Fleet Management
Managing Director
Controlling Speed, Reducing Costs
Headquartered in South Africa, Eqstra represents the African contingent of ARI's Global Fleet Services alliance. We were eager to hear about fleet management in Africa, but Murray also tells us about Eqstra's unique GPS Tracking Solutions technology. This telematics product can cap the speed on a vehicle, thereby driving down fuel and accident costs. Murray says some customers have reduced their fuel bill by as much as 25 percent. That's impressive.
- [Read More] |
Kimberly Fisher, CAFM
National Oilwell Varco
Fleet Manager
Kimberly Fisher, CAFM, was named Fleet Manager for North America for National Oilwell Varco in Houston, Texas. She manages a fleet of 4,600 vehicles in the U.S. and roughly five hundred more in Canada. Previously, Fisher worked as Fleet Administrator for Nuclear Pharmacy Services for Cardinal Healthcare in Dublin, Ohio, where she managed the Nuclear Pharmacy Division’s fleet of 1,400 vehicles.
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Donna Bibbo, CAFM
Novo Nordisk, Inc.
Manager, Fleet and Travel
Donna Bibbo, CAFM, has been appointed by NAFA Fleet Management Association to chair it's newly-formed Safety Advisory Council. With the creation of this council, NAFA has elevated the topic of fleet safety to the forefront of fleet management. The Council plans on using its shared knowledge to push forth initiatives that will benefit fleet managers on local and national levels.
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| Managing Your Fleet Trends, Issues & Opportunities |
ALG Cuts Residual Values for Large Trucks, SUVs
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Anticipating slightly higher fuel prices in the future, ALG, Inc. is cutting residual values for less fuel-efficient vehicles such as large SUVs and pickups. ALG's Residual Value Guide is widely used for setting residual values. Lower residuals could result in making leasing less attractive for large trucks. It could also mean lease customers have to finance a bigger amount or auto lenders have to spend that much more on incentives to keep monthly payments low. The effect on purchase customers could be lower resale values. ALG predicts the cost of gasoline will be about $4 per gallon three years from now.
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Chevrolet Plans to Offer Cruze Diesel for 2013 Model Year
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Until now, American and Japanese automakers have resisted adding diesel technology to their passenger car lineups. General Motors has now confirmed its plan to add a high-mileage diesel to its Chevrolet Cruze line starting with the 2013 model year. Likely to be an adaptation of the 2.0-liter VCDi direct-injection "oil-burner" now offered in Europe on their version of the Chevy compact, the diesel could deliver as much as 51 miles per gallon, exceeding that of the Cruze ECO and almost matching the Prius.
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| Driver Safety Management Practices, Policy, & Training |
Police Enforcement, Publicity Results in Reduced Distracted Driving
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Transportation Secretary Ray LaHood said increased police enforcement of distracted-driving laws along with publicity campaigns can dramatically reduce cases of drivers who aren't paying attention behind the wheel. He cited pilot projects in Syracuse, NY, and Hartford, CT, that paid off in reducing distracted driving. Over the past year Syracuse police issued 9,587 citations for driver violations involving talking or texting on cellphones while operating a vehicle. Police in Hartford issued 9,658 tickets for illegal phone use during the same period. Both cities have seen a dramatic drop in the illegal use of phones while driving.
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Hot Weather Driving Tips
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With record-breaking temperatures across the U.S., drivers should take a look at their car's cooling system, tires, and other parts under stress in hot weather. Checking the coolant level is most important followed by tire pressure and transmission fluid. The air-conditioning compressor, condenser, evaporator, receiver-dryer and other parts should be checked annually to ensure passenger comfort. Drivers are urged to carry plenty of water and never leave children or pets unattended in the car.
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| Manufacturer Developments Design, Production, & Services |
Crediting Marchionne for Chrysler's Rise From the Ashes
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Two years President Obama ordered that Chrysler be advanced enough money to stay afloat. His actions saved 38,500 direct jobs at Chrysler and hundreds of thousands more at suppliers and dealers at an especially fragile time for the nation's economy. This week Chrysler will emerge from bankruptcy as a vital partner of Fiat in a new global auto manufacturing alliance. Based largely on the vitality and strength of the two companies, Chrysler has paid back all of its government loans, and under the direction of Sergio Marchionne it bought the remaining shares held by the U.S. and Canadian governments. With his success at Chrysler, Sergio Marchionne joins Nissan's Carlos Ghosn and Ford's Alan Mulally in turning around failing auto companies.
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Edmunds.com Recognizes Honda, Ford in Lowest Cost to Own Awards
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Honda and Ford were named winners in Edmunds.com's 2011 Lowest True Cost to Own Awards. The awards recognize the 2011 model year cars and trucks in 23 categories that offer the lowest True Cost to Own (TCO) which is the projected ownership cost over five years. Edmunds.com calculates the lowest true cost to own by considering depreciation, interest on financing, taxes and fees, insurance premiums, fuel, maintenance, repairs and any available federal tax credit. To estimate certain mileage-dependent costs, Edmunds.com assumes vehicles will be driven 15,000 miles annually.
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| Driving Green Initiatives, Actions, & Implementations |
Growing Popularity of 4-Cylinder Engines
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Fuel prices have become a critical motivator in convincing American buyers to choose smaller engines, especially with improvements in the latest powertrain technology. Four-cylinder engines now account for 43% of the U.S. automotive market, up from 26% in 2005, while six-cylinders dropped from 43% to 37%. Interest in V-8 engines has dipped from 29% to just 18% over the past six years with predictions of further declines. Automakers have been under pressure to develop fuel-saving technologies to meet the 2016 Corporate Average Fuel Economy standard of 37.5 mpg.
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Ford Moves in Right Direction With its Hybrid Program
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Ford's hybrid program is taking the company in the right direction. Its hybrid powertrains and battery packs are almost indestructible, and the program's evolution continues with its next generation of gas-electric hybrids and full-electric vehicles. Ford's hybrid sales have grown steadily but not significantly this year. After launching the hybrid Ford Escape in 2004, the 41 mpg hybrid Fusion came next followed by the Transit Connect Electric. The Focus Electric will roll out later this year to be followed by the C-Max hybrid next year. The success of Ford's electrification will depend on its batteries, especially the lithium-ion, which can hold almost three times the power in less space.
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| The Intelligent Vehicle Telematics, Telecommunications, &
Technology |
Toyota's New Safety Technology Adds Steering Control Feature
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Toyota demonstrated some of its newest safety innovations under development that include pre-collision technology to take control of the steering to veer a vehicle away when it can't stop before impact. Cameras and a super sensitive radar called "millimeter-wave" installed in the front of the vehicle detect possible crashes. Toyota said it is aiming for zero injuries and fatalities and hinted the new steering feature would soon be offered on commercial vehicles. Other safety features under development are a pop-up hood to help protect pedestrians in a crash and a steering wheel to measure a driver's heartbeat to prevent crashes when drivers suffer heart attacks.
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Ford Reacts to MyFordTouch High-Tech Challenges
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Since Ford teamed with Microsoft in 2007 to launch its Sync system, the carmaker has rolled it out across its vehicle models. Ford says Sync attracts new customers, maintains loyalty of existing ones, and increases the price its cars bring at auction by about $200. However, many drivers found the newest Sync version called MyFordTouch to be confusing to operate. Following the practice set by technology companies, Ford now also trains drivers how to use MyFord Touch in workshops offered through its dealers. This move by Ford illustrates the challenges carmakers face as they add increasingly complex systems to meet drivers' demand for the same kind of connectivity behind the wheel as they get from their phones and computers.
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| Fleet Vehicle Remarketing Marketing Strategies, Channels,
& Sales Data |
Wholesale Values on Fuel Efficient Cars Higher than Expected
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Late model fuel efficient car wholesale values may have peaked in June, but they’re expected to be higher in August they were in January. NADA Used Car Guide senior analyst Jonathan Banks says prices of some popular 2006-09 model year cars could be as much as 30% higher next month.
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Ford’s Wholesale Volume Jumped Up in Second Quarter
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Ford Motor co. wholesaled 736,000 units in North America during the second quarter, up from 77,000 units a year ago. Ford appreciated the benefits to its operating profit, and auctions were happy to see the increase during a period when wholesale volumes have been down for some time.
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2011 AFLA Conference
Paradise Point
San Diego, CA
September 14-16, 2011
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2011 CVSA Annual Conference & Exhibition
Hilton Austin
Austin, TX
September 25-29, 2011
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Green Fleet Conference 2011
Gaylord Texan
Grapevine, TX
October 3-4, 2011
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Hybrid Truck Users Forum National Conference & Expo 2011
Baltimore Convention Center
Baltimore, MD
October 10-13, 2011
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Fleet & Asset Management USA 2011
Hotel Melia'
Atlanta, GA
November 16-17, 2011
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Stats and Smart Charts
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ADESA Wholesale Used Vehicle Price Trends – June 2011
[Click to enlarge graphic]
 - Average wholesale prices fell in June for 2nd month in row
- $340 less than their peak in April, and $375 less than their all-time peak in April 2010
- Some of this price moderation is seasonal, and tight supplies plus steady demand should keep used vehicle prices from dropping dramatically
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