LeasePlan Corporation N.V. reports strong Full Year 2017 Results, and announces a Strategic Update to deliver “any car, anytime, anywhere.”
Tex Gunning, LeasePlan CEO, says, “There is a clear megatrend from ownership to usership and subscription models taking place in both the new and high-quality used car markets. Increasingly, our customers – whether they are corporate, SMEs or private individuals – would prefer a ‘Car-as-a-Service’ with no strings attached in terms of car type or duration. They just want ‘any car, anytime, anywhere’.”
By Art Liggio, President and CEO, Driving Dynamics
Scratching your head? Can’t figure out why your crash rates and cost severity are going up.>
Shouldn’t vehicle safety technologies, which fleet operators are spending an arm and a leg on to fix these issues, produce different results?
An October 2016 report on crash rate frequency and severity provided by the Insurance Information Institutes (iii.org) gives us statistically good reasons to ponder these questions. Plus, preliminary 2017 data indicates similar results.
Obviously, there are a multitude of factors contributing to deteriorating results. Let’s take a look at some of the key drivers for rising cost severity.
Speaking to the auto industry’s leading AI experts, David Atkinson, the top Systems & Technology and Chief Research Scientist for Artificial Intelligence Silicon Valley Research & Development Center Continental AG, said that autonomous vehicles will decisively change the world.
According to Atkinson, “There are a lot of opportunities for the auto industry (with autonomous vehicles). The social changes will be on a scale equal to or greater than those created by the Internet or the smart phone.”
READ the article at The Detroit Bureau.
The 2018 Vehicle Dependability Study (VDS) is out from J.D. Power, and the news is good. Since last year’s study, overall vehicle dependability has increased 9% across the board - and it’s the first time there’s been any improvement to the score since 2013.
A couple of key findings:
The most problems reported still have to do with in-vehicle technology, with Bluetooth connectivity problems and built-in voice recognition leading the way.
Mass Market brands keep closing the gap with Luxury brands.
READ the press release at J.D. Power.
By Mark Boada, Senior Editor
As all fleet managers know, vehicle depreciation is their single biggest cost. So, it came as startling news recently when the British auto data research company Cap HPI reported that the resale prices of electric vehicles (EVs) in the United Kingdom have started to rise.
Specifically, the company said that some EV models have a resale value that is higher than their purchase price after one year and 10,000 miles on the road.
Now, it may be too much to expect a U.S. fleet to recoup more than in spends to acquire an electric vehicle, especially since the typical fleet holding period is three to four years. At historic acquisition and resale values, the break-even period for a hybrid vehicle, for example, is more than five years.
But, according to Tim Fleming, an analyst at Kelley Blue Book I spoke with this week, used EV values appear to be improving.
According to findings released in Google’s 2018 Auto Trends Report, as the industry is focusing on autonomous driving, consumers are searching three times as much for automotive cameras.”
Aftermarket cameras for safety and security purposes rank high among US consumers. Front and rear dash cams, 360-degree cameras, mirror dash cams, and hidden dash cams topped Google’s findings.
The report compiled two years of Google search and YouTube data from over 1,000 users in the US, Germany, and Japan (the countries where most automakers are based). Much is driven by the way consumers search for aftermarket accessories for their car. “There’s this massive cultural trend of the camera,” says Yarden Horwitz, the trendspotting lead for Google says. “
Read the article at The Verge.
Since taking office, President Donald Trump has been eyeing ways of rolling back fuel economy standards set by his predecessor, most recently citing larger vehicles are safer.
Trump’s staff at the National Highway Traffic Safety Administration suggests reducing fuel economy standards to 35.7 mpg by 2026, from 46.6 mpg under Obama’s targets.
"Consumers are buying large SUVs that get 15-20 mpg, as if gas is going to remain in the mid $2 range forever. The demand will shift to light-duty vehicles, and all the supposed safety gains from larger vehicles being considered by the Trump administration now will be an afterthought."
Read the article at Jalopnik.
Speeding is one of the top risk factors in serious and fatal crashes. Watch this one minute safety tip from Driving Dynamics for tips on how your drivers can properly budget their time, so they are less tempted to speed.