June 18, 2019

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Editor's Analysis & Top Industry News

Driving Value for Fleets

Chris Conroy, president and CEO of Holman Business Services, leads off our video clips this week, giving us insight into the value proposition of the Holman family of businesses, which includes ARI. Serendipitously, today we learned that Holman Enterprises was named to Computerworld’s 2019 List of 100 Best Places to Work in IT!

I drive a car with advanced driver assist technology and I can relate to Art Liggio’s Safety & Risk column: The Vehicle Safety Technology Paradox: Don’t Forget, You’re the One in Control. Art deftly advocates for driver training on these technologically advanced vehicles and I strongly agree.

Real-world strategies for taking control of your fleet’s fuel spend is the compelling topic of a free webinar this Wednesday, June 20th, at 11 AM ET. You may register here.

Drive safety!

Janice Sutton
Editor in Chief

VIDEO: The Holistic Value Proposition of Holman Business Services

From engineering, to ordering, to installation, to managing TCO throughout the lifecycle of a vehicle, the powerful value proposition of Holman Business Services is all about the competencies of strong organizations building upon and amplifying one another.



VIDEO: AFLA’s 50th Anniversary

 50th Anniversary: Showcasing AFLA’s Rich History

It’s an exciting task to plan for AFLA’s 50th Anniversary, and there are plenty of opportunities to showcase the organization’s rich history.

VIDEO: From Police Cars to Freezer Trucks

 A Fleet with a Great Variety of Vehicles

As the Director of Transportation Services for Iowa State University, Kathy Wellik manages about 600 vehicles that offer some true variety: from vet trucks to a police department to freezer trucks carrying gelato.

The Fleet Spot

NETS Strength in Numbers® Annual Conference

Join your peers at the only conference focused exclusively on employer road safety

October 9-10, 2019 Renaissance Arlington Capital View Hotel, Arlington, Virginia

Keynote Speakers

  • Honorable Bruce Landsberg, Vice Chairman, National Transportation Safety Board (NTSB)
    NTSB’s “Most Wanted List” — Road Safety Challenges and Future Solutions
  • Sergio Rojas, Holistic Health Coach, Functional Movement Specialist and Certified Nutrition Specialist
    Integrating Wellness Initiatives Into Your Employee Road Safety Program, Including Real World Cost Implications
  • David L. Harkey, President Insurance Institute for Highway Safety and the Highway Loss Data Institute
    Vehicle Technology in an Ever-changing Fleet World, Including the Latest OEM Technology Advances
  • Faye Caldwell, Attorney at Law, Caldwell Everson PLLC
    Employer Cannabis Legalization and Policy Development: A Best Practice Employer Road Map

REGISTER NOW — early bird pricing through June 30th!

Webinar: Using Data-Driven Fleet Technology to Combat Excessive Fuel Spend

With next-level telematics technology, enterprise fleets now have more insight than ever to truly understand where processes break down and to take greater control over variable expenses, including fuel.

Learn how connecting and monitoring actionable data on fuel consumption across vehicles, drivers, and fuel card purchase behaviors can drive fuel-efficiency and measurable operational improvements.

REGISTER NOW to attend this free webinar: Thursday, June 20th at 11am ET / 8am PT.

Ty Bennett to Keynote at AFLA 2019 Conference

Ty Bennett | Leadership, Influence & Customer Relations — September 17th at 8:30-9:30 AM

Using case studies of leaders and organizations whose culture and growth is built through partnership-based leadership, Ty Bennett’s presentation will share proven strategies and techniques to increase the commitment of your people through the power of influence, leadership and customer relations.

In this powerful and insightful presentation, Ty Bennett expertly breaks down the psychology behind customer service and your organization’s growth and retention. From every level of leadership to every level of your team, the culture and communication you foster equate either to customer relationships for life – or a revolving door.


Lease Finance Rates May Go Lower this Year, Says TD Equipment Finance Executive

By Mark Boada, Executive Editor

Anthony Sasso, head of TD Equipment finance, said there’s a chance that lease finance rates will fall further by the end of this year, driven by concerns over a possible slowdown in the U.S. economy.

Sasso said for the most credit-worthy lease customers, equipment financing rates are generally linked to the ICE Swap Rate, a financial index that coincides with movements in interest rates on U.S. Treasurys.


Safety & Risk

By Art Liggio, CEO and President of Driving Dynamics

If advanced-driver-assist system (ADAS) technologies are installed on all vehicles, it can potentially prevent more than 2.7 million crashes, 1.1 million injuries and nearly 9,500 deaths each year according to a report by AAA Foundation for Traffic Safety.

However, it also warns that many drivers are unaware of the current safety limitations. The AAA Foundation for Traffic Safety notes that lack of understanding or confusion about the proper function of these ADAS technologies can lead to misuse or overreliance, which could result in deadly crashes.

According to a survey conducted by the National Safety Council in 2017, more than 30 percent of the respondents mistakenly believed their vehicles were so advanced, that “my car pretty much drives itself.”

Many drivers have already relegated responsibility to maintain active control of their vehicles to these systems which highlights the concern—overreliance on technology without proper knowledge or training. Based on the statistics above, it shows that drivers are unaware of what triggers these systems, how to react once initiated and the elevated risk levels when the technology is activated.



Work Truck Forum

By Fred Fakkema, Vice President of Compliance at Zonar

Editor’s note: The fleet industry is facing a growing shortage of talent in a number of areas, from managers with fleet experience to repair technicians and truck drivers. Here, one industry insider takes a broad look at how fleets can counter that trend and attract the talent they need.

Between a rapidly aging workforce and turnover rates of close to 90 percent, the American Trucking Association estimates that the U.S. trucking industry could face a shortage of 175,000 drivers by 2026.

Industry experts have cited many reasons for this state of affairs, including long hours, complex new Federal Motor Carrier Safety Administration (FMCSA) standards and regulations, and the perception of trucking as an outdated industry by a younger population.

But as a former Washington State Patrol trooper, I have seen the need for digital transformation and updated regulations, and the considerable difference they can make when properly implemented.



Hybrids and CO2 Reduction

International Fleet World

By Natalie Middleton

Governments and cities are being warned not to focus solely on the eco benefits of electric vehicles as latest research finds hybrids could provide the most effective means of reducing CO2 in the immediate term.

According to Emissions Analytics, a focus on battery electric vehicles is crowding out a more effective program of mass hybridization based on available resources.

“Put another way, given the urgency of the need to reduce CO2, paradoxically BEVs may not be the best way to achieve it with their supply chain, production capacity, infrastructure and customer acceptance challenge,” the firm says.

Read the article at International Fleet World

Fleet Trends & Issues

New Legislation Could Prevent Keyless Cars From Killing

Detroit Free Press

Since 2005, 37 people have died by carbon monoxide poisoning, because they unknowingly left their keyless vehicles running in their attached garage.

A proposed law dubbed the PARK IT Act (Protecting Americans from the Risk of Keyless Technology) would leave no room for error and is a sensible step to stopping future death or injury.

The law would mandate that automakers install automatic engine shutoffs — along with software that would make a car immobile if a driver left it in gear.

Read the article at Detroit Free Press.

Hydrogen is the Future, Says China’s Father of Electric Vehicles


China, the world’s biggest car market is set to embrace hydrogen fuel-cell vehicles the way it did EV, and is promoting the adoption of hydrogen vehicles in selected trial regions.

Hydrogen fuel cells have struggled to gain traction worldwide not just because of high costs – one of the key components is platinum – but also because of the lack of infrastructure, the complexity of storage and there’s the matter of hydrogen’s flammability.

Read the article at BusinessMirror.

Hydrogen is Safe, Despite Refueling Station Explosion


A hydrogen-refueling station exploded outside Oslo, Norway, last week, prompting a temporary shutdown of the nation’s few hydrogen stations and an investigation.

No one was hurt.

This doesn’t mean hydrogen can’t be handled safely. It continues to be a viable fuel for automakers and heavy industries seeking to reduce emissions and comply with regulations that are limiting usage of fossil fuels.

Any fuel, regardless of its storage and chemistry, has inherent risks of flammability, and explosions.

Read the article at MSN.

Low-Mileage Off-Lease Vehicles Hitting Used Car Lots

The Detroit Bureau

The replacement vehicles that buyers are after, will most likely be found on used car lots as a deluge of lightly used, lower-mileage vehicles come off lease.

These used vehicles are not that old, they comprise the styles, i.e. sport-utilities, crossovers and trucks. They also have many of the technology features that buyers want.

“Limited sales during the recession mean that older cars are scarcer, and thanks to record sales and leasing during the recovery, the typical used vehicle is looking more like a late model-year SUV with low mileage and lots of great features,” said Ivan Drury, Edmunds’ senior manager of industry analysis.

Read the article at The Detroit Bureau.

Sales Plunge Coming?

The Detroit News

The U.S. auto industry is heading toward a nearly 30% decrease in sales by 2022, a Bank of America Merrill Lynch analyst predicts.

Softening vehicle sales since 2016 will continue as cyclical demand softens.

Automakers must resist temptations to lower prices as they had during the economic downturn in 2007, 2008 and 2009, said John Murphy, a senior auto analyst. Keeping vehicles at profitable margins will help investments in new autonomous, connected and electric future technology.

Following declining sales through 2022 is the industry is expected to have a strong recovery, Murphy added.

Read the article at The Detroit News.


Disruptive Leadership

Successful enterprises create a culture where new ideas are encouraged from anywhere in the organization and from any level

By John Wysseier, CEO and President, The CEI Group

As I’ve said here before, to survive in an age of constant change driven by continuous advances in digital technology, companies need to adopt a culture of constant change, which is to say, a culture of positive disruption. Because business culture starts at the top, it’s the job of the CEO to create a disruptive culture.

As Jean-Pierre Clamadieu, CEO of chemical giant, Solvay SA, recently said, disruptive culture is not a solo act. The CEO “is not a transformational hero carrying the weight of transformation alone. A CEO needs to have a strong team to support change.”



EVs and Residual Values

Green Car Reports

When shopping for a new vehicle, the lower maintenance and repair needs, plus lower energy costs can make electric car ownership appealing – until the appalling resale value is discovered.

The average new electric vehicle loses 56.6 percent of its original value in three years. Tesla is an exception to the rule as the average Model S remains worth a strong $57,517, which is just a 17.1-percent reduction from its price.

The average among all kinds of vehicles is 38.2 percent of depreciation over three years.

Read the article at Green Car Reports.

Fleet Management Resources
Offering a nationwide vehicle delivery and relocation service; serving the corporate and commercial fleet industry.
eDriving partners with its clients to engage with drivers and their managers to create a culture that supports lasting behavioral change to reduce collisions, injuries, license violations as well as a fleet’s total cost of ownership.
WEX fuel cards and fleet management solutions give you powerful tools to reduce spending — for any business, any fleet, any size.
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.
Wheels, Inc.
First in fleet for 79 years. Wheels helps you build tomorrow’s fleet today.
Driving Dynamics
Driving Dynamics was established to help corporate fleet drivers develop expert, safe driving skills using proven, advanced driving techniques.
PARS' mission is to provide you with high-quality service at competitive prices for all of your transportation needs.
Zendrive offers a suite of products and services that will make your fleet safer and help lower your insurance rates.

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