Automotive Fleet, July 2017

Factors Influencing Model and Engine Selection Most fleets do not anticipate changes to vehicle types as choices of vehicle segment types are driven by business requirements However there are market forces that favorable changes to type of model acquired The key reasons given for changes in the types of vehicles to be acquired in the 2018 MY are Switch to Different Vehicle Segment An ongoing trend is the shifting fleet preferences between vehicle segments Today a growing number of fleets are considering and choosing crossovers instead of mid size sedans which is causing a shift in the type of vehicles found on corporate selectors Today there is a growing acceptance of crossovers as a fleet vehicle Once crossovers were considered an upgrade however today these vehicles are now in fleets in representative ratios as the retail market which promises to continue with 2018 MY ordering Today as a percentage fleet registrations of crossover models are beginning to mirror the market share found in the retail market Other factors stimulating fleet acquisition of crossovers are ergonomics an all wheel drive option and increased cargo carrying capabilities More commercial fleets are migrating from sedans to CUVs and SUVs for the same reasons that retail customers have migrated toward utility vehicles The ingress and egress is easier and there is more cargo room for equipment products and samples The interiors are also roomier for those fleets that transport personnel Another very important feature of utilities is all wheel drive Fleets in Northern states with significant snowfall select crossovers because of their capability in inclement weather and ground clearance that comes with these vehicles Downsizing to the Next Vehicle Segment There is a continuation of the trend to downsize to a smaller class of vehicle or different vehicle segment This ongoing trend at many fleets will continue with 2018 MY ordering Downsizing is an ongoing factor influencing new vehicle acquisitions at many corporate fleets The decision to downsize to smaller vehicle is typically determined by TCO and fleet application Our build mix will be concentrated on core trucks with less focus on specialty builds said Massey of AmeriGas Propane This was echoed by Genus PLC We are downsizing where we can such as from four door crew cabs to extended cab or regular cabs trucks to gain more fuel savings and to reduce the personal non business use said Jeff Allspaugh business process manager Fleet Management Services of Genus PLC in Rockford Ill Switch to Smaller Displacement Engine Fleets are reducing engine displacement size from V 8 to V 6 or V 6 to four cylinder engines with turbos We will order the same models but look at more V 6s in place of the V 8s for some positions said Gates of CPS Addition of Hybrid Models to 2018 Selector Lists Selecting models with higher mpg than the predecessor model is driving many acquisition strategies Some fleets have elected to expand on this fleet initiative by acquiring hybrid vehicles One fleet in the forefront is ADP In the past 12 months the ADP fleet has gone 100 hybrid in 2017 said Michael Bieger senior director global procurement for ADP This will continue with its 2018 model year ordering Hybrids are a growing segment at many other fleets We are always looking for the most efficient and cost effective models and as a result our passenger car fleet is 100 hybrid Right now we are acquiring Toyota Priuses with the Chevy Malibu Hybrids coming in second said Besser of Coinstar LLC Major fleets such as McDonalds are shifting entire models to hybrids All FWD Fusions will be hybrids instead of gasoline engines said Swenson of McDonalds Another company acquiring more hybrids is Cox Enterprises We will acquire more hybrid sedans as all of our business use sedans will be hybrids said Bigelow of Cox Enterprises Inc In addition sustainability continues to be a significant influence in the types of models acquired Hybrids will be added to some 2018 selectors to help meet corporate sustainability goals which over the years has become a factor in vehicle acquisition decisions at some corporations especially multinationals Ingersoll Rand has significant initiatives aimed toward reducing our overall environmental impact both in product and operations Im anticipating that while the types of vehicles we acquire might not change too significantly well continue to look for offerings that drive down our CO2 impact said Kamanns of Ingersoll Rand Concerns about Delays in Getting Replacement Units when Truck Inventory is Tight With the popularity of light duty pickups in both the retail and fleet markets demand is creating tight inventory situations especially when replacement units are unexpectedly needed such as replacements for accident damaged units One of my biggest concerns is the lack of inventory for truck fleets right now With the lack of inventory it means that in emergency situations where we have to purchase out of stock we are paying far more than our standard spec and we are getting trucks with options we would not normally pay for said Fisher of National Oilwell Varco Initiatives to Standardize Fleet Assets Many fleets are continuing their long term initiatives to standardize the types of fleet assets they deploy We are consolidating the types of vehicles we are ordering to create better consistency across the fleet We are also moving to more vans as a percentage said one fleet manager who wished to be anonymous Another standardization initiative is being implemented by ABM Industries We are attempting to standardize our fleet to allow for more flexibility said McAdams of ABM Industries Growing Market Share for Euro Style Vans Many fleets have entirely switched over to Euro style van bodies In 2018 MY some fleets plan to downsize to smaller vans We are moving some field service technicians from minivans to small city cargo van wagon said Belloli of MilliporeSigma acquisition AUTOMOTIVE FLEET I JULY 2017 20 ALLSPAUGH Genus PLC