June 30, 2014
Editor's Analysis & Top Industry News

Sutton_Janice Fleet Telematics Reaching Critical Mass

We spent some time last week with Janis Chris­tensen, senior man­ager and direc­tor of Cor­po­rate Con­sult­ing at fleet man­age­ment con­sult­ing firm Mer­cury Asso­ciates. We talked about the grow­ing accep­tance of telem­at­ics for fleets and how many fleets have seen sub­stan­tial effi­ciency and cost ben­e­fits after adopt­ing the technology.

In this week’s issue, we fea­ture a num­ber of videos and arti­cles on this sub­ject. Michele Cun­ning­ham, senior vice pres­i­dent, Strate­gic Devel­op­ment at PHH Arval, talks about the increas­ing role of telem­at­ics data in improv­ing dri­ver and asset pro­duc­tiv­ity and safety out­comes. Bruce Horan, direc­tor of PHH Onboard® gives us his thoughts on the myr­iad ben­e­fits of the tech­nol­ogy; and GPS Insight makes the case for using telem­at­ics to right-size a fleet.

Horan points out that while 20 per­cent of the North Amer­i­can fleet mar­ket has imple­mented telem­at­ics, he sees that dou­bling to 40 per­cent very soon. We think he’s right – the cost ben­e­fits for many fleets are too great to ignore.

Jan­ice Sut­ton
Exec­u­tive Editor

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Ed Bobit In Memoriam: Ed Bobit

Ed Bobit, founder and chair­man of Bobit Busi­ness Media, passed away Sun­day, June 29th, at the age of 86. He had under­gone valve-replacement surgery last summer.

I first met Ed many years ago and appre­ci­ated his wit, intel­li­gence and pas­sion for the fleet indus­try. We send our con­do­lences to his col­leagues, friends and fam­ily. This iconic gen­tle­man will cer­tainly be missed by our fleet community.


VIDEO: What Predictive Analytics is All About

Pre­dic­tive Ana­lyt­ics com­bines rich data from telem­at­ics, fuel cards, and main­te­nance to help forward-thinking fleets fig­ure out what’s com­ing next.

VIDEO: Smart Telematics
  Highly Configurable Dashboards Offer Key Benefits

When it comes to fleet telem­at­ics, GPS Insight offers a dash­board that’s highly con­fig­urable by the end user. It’s very visual, it’s easy to use, and you can make it as sim­ple or as com­plex as you’d like.

Click here to watch video
VIDEO: Smart Combinations
  Combining Data to Tell the Right Story

Putting fuel data and telem­at­ics data together can tell a story that’s ben­e­fi­cial for fleet man­agers — one that can lead to bet­ter dri­ver behav­ior, reduced dri­ving costs, and improved productivity.

Click here to read more

The Fleet Spot

NAFA IFA 2014 The Goal Is In Sight And NAFA’s International Fleet Academy Leads The Way

It is well-known that the fer­vor sur­round­ing the World Cup verges on reli­gious. More than just extra traf­fic in the host coun­try Brazil, nations all over the globe will be expe­ri­enc­ing dras­tic changes in the ebb and flow of the aver­age work day to accom­mo­date view­er­ship of the World Cup matches. Like­wise, fleet man­agers who have global fleet respon­si­bil­i­ties need to know how such a cul­tural phe­nom­e­non affects their work, and that’s what NAFA’s Inter­na­tional Fleet Acad­emy is for.

NAFA’s fourth annual Inter­na­tional Fleet Acad­emy will take place Novem­ber 5–7 at Rosen Shin­gle Creek in Orlando, Florida. This 3-day con­fer­ence was designed specif­i­cally to meet the needs of those who man­age fleets out­side of the United States and Canada.


NCSFA new logo 2011 2014 NCSFA Awards and Workshop

Nom­i­nate your­self, your orga­ni­za­tion or a fel­low NCSFA mem­ber for one of the fol­low­ing awards.  Award nom­i­na­tions forms are due July 31, 2014.

Fleet Excel­lence Award
Envi­ron­men­tal Lead­er­ship Award
Dis­tin­guished Ser­vice Award

The awards will be pre­sented at our upcom­ing 2014 NCSFA State Fleet Manager’s Workshop.

NCSFA State Fleet Man­agers Work­shop
Octo­ber 7 — 9, 2014
Burling­ton, Vermont

Free Reg­is­tra­tion for Fleet Managers!

Attend the 2nd annual NCSFA State Fleet Manager’s Work­shop, designed exclu­sively for Gov­ern­ment Fleet Man­age­ment Pro­fes­sion­als to be held in beau­ti­ful Burling­ton, Ver­mont on Lake Champlain.

The NCSFA and the State of Ver­mont are co-hosting this three day inten­sive work­shop.  Pre­sen­ters will be state fleet pro­fes­sion­als shar­ing their best prac­tices and pro­gram information.

John Dmochowsky AFLA Announces New Leadership Program

AFLA pres­i­dent John Dmo­chowsky announced an optional new course — ‘DRIVEN: AFLA’s Lead­er­ship Pro­gram’ to be launched at the 2014 AFLA Annual Conference.

Dmchowsky says, “I see this hour-long course as a poten­tial first step in build­ing an ongo­ing lead­er­ship pro­gram for AFLA mem­bers and I’m excited to see the course unfold. This year’s course will be an overview of AFLA’s lead­er­ship struc­ture and include short pre­sen­ta­tions on why peo­ple join AFLA, the func­tion and pur­pose of our gov­ern­ing doc­u­ments, the lead­er­ship respon­si­bil­i­ties of vol­un­teers and staff, and insights from cur­rent vol­un­teer leaders.


Fleet Asset Management  

Michele Cun­ning­ham is Senior Vice Pres­i­dent, Strate­gic Devel­op­ment, at PHH Arval. She is respon­si­ble for devel­op­ing and imple­ment­ing the company’s “go-to-market” strat­egy, with respon­si­bil­ity for Mar­ket­ing and Com­mu­ni­ca­tions, Sales Oper­a­tion and Admin­is­tra­tion, and man­age­ment of the PHH Arval Global Alliance. Michele also serves as Vice Chair of the Edi­to­r­ial Advi­sory Coun­cil at NAFA Fleet Man­age­ment Association.

In this inter­view, Michele talks about the company’s recent expan­sion into mate­r­ial han­dling equip­ment and the excep­tional value that brings to vehi­cle fleet cus­tomers who man­age this equip­ment. We also ask for her insight into the grow­ing role of telem­at­ics data in fleet automization.


Fleet Telematics  

By Bruce Horan, Direc­tor, PHH Onboard®

New research shows that 20 per­cent of the North Amer­i­can fleet mar­ket has imple­mented telem­at­ics. While that num­ber may seem low for a tech­nol­ogy that’s been in the mar­ket for over 10 years, I believe it will dou­ble to 40 per­cent, reach­ing crit­i­cal mass, rel­a­tively soon. Today, cus­tomers are empow­ered when they see telem­at­ics as a viable tool to gain deeper insight and vis­i­bil­ity into fleet oper­a­tions and to make strate­gic busi­ness deci­sions that go well beyond GPS track­ing and vehi­cle rout­ing. It enables com­pa­nies to enhance their fleets’ per­for­mance and value. In fact, telem­at­ics is becom­ing increas­ingly tied to logis­tics through­out the sup­ply chain.


Fleet Leasing & Management  

By Mike Sheldrick, Senior Editor

GE Capital’s annual sur­vey of middle-market com­pa­nies — those with sales between $10 mil­lion to $1 bil­lion — found a gen­er­ally con­fi­dent out­look. As a result, they plan to expand their fleets and their use of alternative-fuel vehi­cles. The 400+ respon­dents included com­pa­nies with local, national, and global reach. The major­ity of the com­pa­nies sur­veyed were pri­vate — only 11% were public.

Over 25% plan to increase the size of their fleet in the com­ing year, and more than half plan to incor­po­rate alternative-fuel vehi­cles in their fleet in the same period. And the switch to AFVs is even more pro­nounced: in the next two years, nearly two-thirds plan on adding AFVs and within five years, over 90%.


Fleet Trends & Issues

Cars New Models RdpFirst-Ever Federal Vehicle Fee Introduced

Sen. Jay Rock­e­feller, D-W.Va., chair­man of the Sen­ate Com­merce Com­mit­tee intro­duced the Motor Vehi­cle Safety Act of 2014 that would give the National High­way Traf­fic Safety Admin­is­tra­tion more fund­ing to con­duct more inves­ti­ga­tions and stronger pow­ers to get unsafe vehi­cles off the road more quickly. It would boost fund­ing for fed­eral auto safety over­sight by more than $100 mil­lion to $280 mil­lion by 2017.

“If NHTSA doesn’t have the resources or capa­bil­i­ties to pro­tect the dri­ving pub­lic and ful­fill its mis­sion, then Con­gress must step in and give this agency what it needs to meet these crit­i­cally impor­tant goals,” Rock­e­feller said. “For the past 15 years many of us have attempted to bol­ster NHTSA’s author­ity, pre­cisely to bet­ter pre­vent tragedies like the deaths caused by GM’s faulty igni­tion switches.


Ford edgeFirst Look at the 2015 Ford Edge

The next-generation 2015 Ford Edge has been unveiled. The crossover moves to a new plat­form that also under­pins the lat­est Ford Fusion and gains an all-new sus­pen­sion, two new engines and a host of safety and con­ve­nience fea­tures to make the mid­size SUV one very tech­no­log­i­cally advanced fam­ily vehicle.

The Edge is now a global vehi­cle for Ford and will be sold not only in North Amer­ica but China and Europe too. It’s been fully inte­grated into Ford’s global design lan­guage for 2015. The new model doesn’t move the styling nee­dle at all for the brand, but puts the new stan­dard Ford face on the SUV.

READ MORE for the details.

promasterChrysler Enters the Small Van Market

The 2015 Ram Pro­Mas­ter City has been unveiled to help Chrysler grab a piece of a grow­ing mar­ket shared by rivals Ford Motor Co., Nis­san Motor Co. and Gen­eral Motors Co.

“As busi­nesses strive for lower costs, the demand for a smaller, more effi­cient van has increased and Ram Com­mer­cial is answer­ing the bell with the all-new Pro­Mas­ter City,” said Reid Bigland, pres­i­dent and CEO, Ram Truck brand. Bigland said the Pro­Mas­ter has reached about 15 per­cent of the retail mar­ket and he expects to ramp up production.


gps-tracking-better-fleetBuild a Quality Fleet with GPS Tracking Software

It may seem like increas­ing your fleet size will help your busi­ness be more pro­duc­tive, but it is not always the case. Adding unnec­es­sary vehi­cles can actu­ally make your fleet less pro­duc­tive and add unneeded busi­ness expenses. Advanced GPS track­ing solu­tions, like GPS Insight, will help you build a qual­ity fleet of the best vehi­cles to increase productivity.


Vehicle Safety  

Ford’s Project Mobii is an exper­i­men­tal new app-based ser­vice that would allow an owner to remotely mon­i­tor what’s hap­pen­ing inside their vehi­cle, using five sep­a­rate cam­eras mounted inside the pas­sen­ger compartment.

Among other things, it might allow par­ents to keep an eye on a teenage dri­ver. And the sys­tem could be pro­grammed to block a thief from hotwiring the igni­tion and dri­ving away — per­haps even qui­etly send­ing an alert to the police. There’s also the pos­si­bil­ity that Ford could use the Mobii tech­nol­ogy to bet­ter under­stand how motorists use its vehicles.


Vehicle Quality  

The way new-vehicle buy­ers per­ceive qual­ity has changed, and as a result, J.D. Power has changed how it mea­sures the qual­ity of new vehi­cles, redesign­ing its annual Ini­tial Qual­ity Study (IQS) to bet­ter reflect how tech­nol­ogy impacts cus­tomer satisfaction.

In the sec­ond year of the lat­est ver­sion of the IQS, there is a decided decline in new-vehicle qual­ity, one rooted pri­mar­ily in owner dis­sat­is­fac­tion with technology.

READ MORE about the IQS results.

Vehicle Remarketing  

Dam­aged cars from heavy hail storms have recently made it to auc­tions in Col­orado. Black Book ana­lysts were able to act accord­ingly to many of the sold units with their dings from severe weather that don’t end up in com­puter sum­mary sheets of sales. Avail­abil­ity of used cars in the mar­ket con­tin­ues to increase, giv­ing buy­ers more options – though over­abun­dance of sup­ply isn’t there yet in the four-to-five year old range.

Click here to watch the lat­est video report by Ricky Beggs — Senior VP, Edi­to­r­ial Direc­tor, Black Book

Gaso­line Price Volatil­ity is Again a Topic at the Water Cooler:
Real con­cern has to do with fac­tors in Mid­dle East and expected gas price increases.

New Vehi­cle Sales Bring­ing More Trade-ins and Whole­sale Sup­ply:
Add in tra­di­tional sea­sonal sum­mer soft­en­ing goes with reports that prices are lev­el­ing off and adjust­ing down slightly.

Truck Mar­ket Con­tin­ues to Trend with Lower Depre­ci­a­tion Lev­els than Cars:
While trucks have been depre­ci­at­ing, the change level is still lower than last year.

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