July 3, 2018

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Editor's Analysis & Top Industry News

The Essence of America

“The essence of America — that which really unites us — is not ethnicity, or nationality, or religion. It is an idea — and what an idea it is: that you can come from humble circumstances and do great things. That it doesn’t matter where you came from, but where you are going.” ~ Condoleeza Rice

The FMW team wishes you a happy and safe Independence Day!

Janice Sutton
Editor in Chief

Thought Leadership

Customer Driven — Engage your organization to create customer loyalty, trust, and superior service

Fleet Asset Management – Best practices for work truck management

Fleet Marketing – Guiding principles for fleet providers to improve marketing and increase sales

Fleet Spectator A 360 view of the fleet industry

Globally Speaking — Perspectives on the multinational fleet

In the Public Interest — Successfully managing the government fleet

On Fleet Driver Management Solutions to improve your fleet’s accident rate and cut costs on collision repairs

Safety & Risk — Impactful driver safety and risk management tools and techniques

Talent Management — Smart guidelines to help you manage the talent in your workplace

Think, Execute, Win!Leadership tips from NBA Star and motivational speaker Walter Bond

VIDEO: There is No Magic Pill for Safe Driving

More technology and more data is a great thing, but there is no magic digital pill when it comes to safer driving. The reality is that drivers need to truly personalize what they are doing behind the wheel.

VIDEO: Staying Connected to NAFA

 The Benefits of Staying Connected to NAFA Throughout the Year

There are a number of great benefits to staying connected to NAFA throughout the year.

VIDEO: A Loss of Industry Knowledge

 A Perfect Storm is Bearing Down on Fleet

There’s a perfect storm that’s bearing down on the fleet industry, and one of the biggest threats is an incredible loss of industry knowledge as more and more baby boomers retire.

The Fleet Spot

Buzzed Driving is Drunk Driving


Independence Day celebrates our Nation’s most cherished asset: our freedom.

This July 4th, keep America free from drunk driving. If you plan on attending a celebration where there is alcohol, make a plan to get home without drinking and driving. If you are planning the party, help your guests plan for a sober ride home. Remember: Buzzed Driving Is Drunk Driving.

The Fourth of July is a wonderful time to celebrate with family, friends, food and fireworks. Yet it is also one of the deadliest holidays of the year due to drunk driving. During the 2015 Fourth of July Holiday, 146 people were killed in drunk driving crashes. Nearly two-thirds of those killed were in crashes where at least one driver had a blood alcohol concentration (BAC) of .15 or higher – almost twice the legal limit.


Catch That Magic Moment Right Now!

AFLA announced that Rudy Ruettiger will speak at this year’s Annual Corporate Fleet Conference (AFLA 2018) as the Closing Keynote Speaker on Wednesday, October 3rd at 10:15 AM.

The AFLA 2018 conference, to be held October 1-3 at the JW Marriott Grande Lakes in Orlando, FL, will feature engaging presentations on key topics related to the corporate fleet industry with a theme of “Catch That Magic Moment Right Now.

Register now to secure your spot at this year’s premier fleet conference!

NAFA’s 2018 Conference Registrations Break Previous Records

2018 registrations eclipsed its conference and Expo record previously set in 2013.

NAFA Fleet Management Association announced its annual conference, Institute & Expo (I&E), has eclipsed its conference and Expo registrations record previously set in 2013.

With the final numbers in hand, NAFA proudly announces that 1,166 fleet professionals registered for its 2018 I&E, which took place April 24-27 in Anaheim, Calif. I&E remains the industry’s largest learning and networking event by bringing together the most fleet professionals year after year.


Not All Rear-View Cameras Are Completely Safe, A Fleet Manager Finds

Gary Lentsch, CAFM, fleet manager for the Eugene Water & Electricity Board, discovered a problem when he tried to meet the new federal regulation that requires vehicles with a gross vehicle weight of 10,000 pounds or less to be equipped with rear-view cameras.

What he found was that many of the devices on the market don’t meet the regulation’s requirements for full rearward visibility.


Fleet Marketing

By Ed Pierce, Fleet Industry Marketer

According to Kevin Joyce, CMO and vice president of strategy services with The Pedowitz Group, there’s a significant gap between management’s expectations of Marketing accountability and its ability to quantify its performance.

While 76% of marketing organizations are accountable for, or share accountability for, P&L, only 19% of marketers have comprehensive tracking and reporting practices in place.

Given the roles of traditional marketing that is not surprising.



Think, Execute, Win!

In the spirit of July 4th, write on your heart your own declaration of independence from all that is holding you back.

By Walter Bond, Hall of Fame Business Speaker & Former Big Ten & NBA Basketball Player

As you celebrate Independence Day this year, ask yourself: in your life, in your job, and in your career, are you free of self-imposed constraints? Are you merely trying to get by, unwilling to challenge the status quo that is neither as productive as it could be for your employer nor as rewarding to you? Do you have a vision of how things could be, but are afraid to break free of your comfort zone, to speak up and take action to make your vision reality?

From time to time, we all find ourselves in a rut of one kind or another. We may still be moving forward but within the bounds of a channel that keep us moving in the same direction, and that even keep us from seeing above the edges of the rut to find a new direction.



Tariffs and Trade

The Detroit News

Japanese automakers warned the U.S. government Friday that tariffs would result in higher prices for domestic car-buyers and drastic changes to their manufacturing strategies as well as “rebalancing measures” by other countries hurting U.S. manufacturing and agriculture.

General Motors Co. stated that tariffs of up to 25 percent on imports of cars and auto parts could weaken the company and put jobs of U.S. autoworkers at risk.

“The average price of an imported car is $23,200,” U.S. Sen. Orrin Hatch, R-Utah, said last week. “If the Department of Commerce were to recommend a 25 percent tariff on cars, it would be recommending raising the cost of an average imported car for an American family by $5,800. To put that in perspective, the median household income in the United States is just over $59,000. That means that roughly 10 percent of the median household income could be erased purely by the additional cost of a single car.”

Read the article at The Detroit News.

Fleet Trends & Issues

Trump’s Tariffs Could Have Global Effect on GM Operations

Fast Company

In response to the Trump Administration’s requested study, General Motors sent a letter complaining that further tariffs on imported auto parts and materials could result in higher car prices and, ultimately, a smaller GM.

As GM alludes to in its letter, the threat of more tariffs comes at a sensitive time for the company. Half of the cars on the road will be electric by 2030, estimates show.

“The auto industry also happens to be in the midst of a fast-paced transportation revolution led by cutting-edge technologies that promise to redefine the industry as we know it,” the letter reads. “If U.S. auto companies are to lead in this space—as we currently are—we absolutely must rely on our existing strengths and invest resources accordingly.”

Read the article at Fast Company.

Automakers Aren’t Necessarily the Best at Deciding What’s Installed in Their Cars

The Washington Post

For the last three or four years the AAA Foundation for Traffic Safety has been studying the explosion of technology in the vehicle, and how to minimize the driving distractions that kill 3,500 people and injure 390,000 in U.S. crashes every year.

People are addicted, and even condemned by some of the people who do it – sending text messages while driving is illegal in all but three states (Montana, Arizona, Missouri) and calling someone on a handheld cellphone while driving is banned in 15 states.

“If you start to take your eyes off the road for more than two seconds you start to see the crash risk increase,” David Strayer, author of the study said. “The matter of time it takes to read a text is about 4½ seconds, so the shorter the interaction and the easier the interaction, the less it competes with driving.”

Read the article at The Washington Post.

Growing Danger for America’s Most Vulnerable Road Users: Death by SUV

Detroit Free Press

Almost 6,000 pedestrians died on or along U.S. roads in 2016 alone, and the SUV revolution is a leading cause – pedestrian deaths nationwide are up 46 percent since 2009.

Vehicle safety measures, which the federal government says could save hundreds of pedestrian lives every year, are available but not widely employed by some automakers — nor are they required.

“Along with automakers, cities can take action that saves pedestrians. New York City, for example, cut such deaths nearly in half in just four years. The need for steps such as lower speed limits, more midblock crosswalks and better lighting grows in urgency as automakers move strongly toward truck and SUV production.”

Read the article at Detroit Free Press.

The Ins and Outs of Launching Your Own Amazon Fleet

CBS News MoneyWatch

Want to start your own Amazon delivery business? With an initial investment of as little as $10,000 you can get leased vans, insurance, gas cards and training to launch your own delivery fleet potentially earning $300,00 a year.

The catch? There’s no guarantee that you’ll make a $300,000 profit – or any profit, for that matter.

The costs of working with Amazon are so substantial that independent delivery companies are increasingly turning away Amazon’s business, says Peter Schlactus, co-founder of the Association for Delivery Drivers. The reason: Amazon requires that delivery companies hire their drivers as employees, rather than work with independent contractors.

Read the article at CBS News MoneyWatch.

An Interesting Time

CNN Money

Bill Ford, Jr. says his mission since day one has been to build a bridge between environmentalists and the business community.

Ford’s vision of reducing gridlock and limiting the impact of cars on the environment, including “smart roads” and more sustainable transportation has resulted in Ford Smart Mobility, a new division of the company aimed at designing, creating and investing in advances in connectivity, mobility, self-driving cars and other innovations.

“I was just appalled at the mentality that existed throughout the company towards the environment and, frankly, towards anything outside of Detroit,” Ford tells CNN’s Poppy Harlow in the latest episode of Boss Files. “Ford was, the entire auto industry was, a very insular culture. And it really shocked me. And I decided to see if I could help change that. And in the early years, there was a lot of frustration.”

Read the article at CNN Money.


Improving Your Workplace

Harvard Business Review

Research shows that when people have a good relationship with their leaders, they’re more motivated, they perform better, and they’re more likely to go the extra mile to support their team. Conversely, when people don’t get along with their leaders, they tend to retaliate against them and the organization.

Across our studies, we found that employees who rated their relationship with their leader as highly ambivalent performed worse in their jobs (as rated by their leader) than those who rated the relationship as low in ambivalence.

“Because leaders tend to think their relationships with employees are more positive than employees believe them to be, the first step is to try to understand how others view the relationship. Leaders can ask employees specifically how they feel about their relationship, whether they think there’s enough trust, and whether they feel supported and listened to.”

Read the article at Harvard Business Review.


Automated Vehicles and Insurance

J.D. Power

Even if consumers are going to get a lower insurance premium, they aren’t quite ready to hand over the wheel and own an automated vehicle.

Auto insurers take many factors into account when pricing a policy for an individual customer and are going to have to keep a close eye on customer attitudes toward automation and evaluate the potential to incorporate features into underwriting policies.

“According to a recent J.D. Power pulse survey, 60% of customers say there are benefits to owning an automated vehicle. While “lower insurance premiums” is a listed benefit of owning an automated vehicle, only 18% of consumers say that would play a factor in their decision to purchase one.”

Read the article at J.D. Power.

Fleet Management Resources
AFLA – Automotive Fleet & Leasing Association
Providing the advanced forum for corporate fleet professionals to network with industry leaders.
The CEI Group Inc.
CEI is North America’s largest provider of fully integrated fleet accident management, driver safety and risk management services.
NAFA Fleet Management Association
NAFA is the association for the diverse vehicle fleet management profession regardless of organizational type, geographic location, or fleet composition.
Offering a nationwide vehicle delivery and relocation service; serving the corporate and commercial fleet industry.
Since 1965, Donlen has been the fleet management industry’s leading provider of comprehensive, integrated financing and asset management solutions — and that spirit of innovation continues today.
PARS' mission is to provide you with high-quality service at competitive prices for all of your transportation needs.
Driven fleet professionals. Driving results.
Driving Dynamics
Driving Dynamics was established to help corporate fleet drivers develop expert, safe driving skills using proven, advanced driving techniques.
Wheels, Inc.
First in fleet for 79 years. Wheels helps you build tomorrow’s fleet today.

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