Automotive Fleet, July 2017

Switch from Diesel Engines to Gasoline Engines What started in 2016 and continuing into the 2018 MY some fleets have stopped buying diesels Were still deciding if we should go with a diesel vehicle again Chevrolet Equinox diesel or stick with gas Were also seriously looking at the Chevy Bolt EV to see how we can work it in to the fleet in specific positions Still a ways to go with that one but hope to be able to use it in some capacity for MY 2018 said one fleet manager who wished to be anonymous Sustainability and safety are two key factors that will drive CBRE fleet sales for the 2018 MY There will be continued emphasis placed on OEM safety offerings and a continued pursuit of emission reduction strategies either by OEM or aftermarket resources said J J Keig CAFM corporate fleet manager for CBRE in Dallas Other multinational corporations are likewise looking to increase the percentage of hybrid vehicles in their fleets as a replacement for diesel powered vehicles We are introducing hybrid vehicle choices into many markets and some gasoline vehicles into Europe that were previously 100 diesel said Ross Harris associate director of global fleet for Bristol Myers Squibb Some fleets are attributing their desire to move away from diesels specifically to the revelation that Volkswagen was skewing emissions and the suspicion that this may extend to other OEMs Our decision to move away from diesels was due mainly to the VW emission issue but also due to the expense of repairing diesels once they reach 120000 miles Diesels can definitely run a long time longer than gasoline engines but the maintenance is very expensive said one fleet manager who wished to be anonymous Sometimes long order to delivery times are influencing whether to eliminate a model We eliminated the one Asian truck from our choices due to its long lead times and added the Chevy Equinox LT as a replacement said a fleet manager who wished to be anonymous Availability of Safety Packaging Influencing Selector Decisions Most fleet will be specing greater safety options during the 2018 MY fleet buy The availability of safety packages will have a direct bearing on what will be ordered for the 2018 MY This strategy was reinforced by similar comments from other fleet managers We are adding safety features on all trim levels and buying the safest vehicles available Minimizing distracted driving and creating driver accountability has become a huge factor in our buying decisions said one fleet manager who asked not to be identified Expansion of Non Traditional OEMs into Fleet One trend has been the inclusion of more non traditional fleet OEMs into a companys fleet program We always look to introduce new innovative OEMs that provide the best TCO We use a lot of Nissan and Subaru product today and will continue to look at new OEMs such as Hyundai and Kia specifically as well as Mazda Honda and Toyota said one procurement VP at a Fortune 500 fleet who wished to remain anonymous Changes in OEM Sourcing Many companies are in multi year purchasing agreements with specific OEMs which precludes shifts in OEM sourcing We are in the middle of a three year contract with current OEM and therefore there will not be any change said Schreiber of Otis Service Center Another factor influencing OEM selection is the necessity of smaller sized fleets to focus volume with a single OEM to be eligible for volume discount incentives We will remain with only one OEM since we dont purchase enough vehicles annually to earn CPA CAP VIP incentives from the Big 3 if we split the business with another OEM said a fleet manager who wished to be anonymous This same strategy was voiced by National Oilwell Varco We are reducing the number of OEMs in our selector to concentrate our spend more wisely said Fisher of National Oilwell Varco In addition incentives can sway purchasing decisions It is possible that we can change our OEM depending on pricing and incentives offered said McAdams of ABM Industries At the time of the survey many companies were still out for bid or yet to issue an RFP which may or may not result in changes from which OEMs they source new vehicles We will have a RFQ in June July 2017 to determine our OEM for 2018 said Armstrong of ThyssenKrupp Others likewise said it was too early to make a definitive conclusion We are currently in an RFP so it is possible there will be changes said Harris of Bristol Myers Squibb This was echoed by other companies We are working on the OEM RFP now Initial indicators are there could be changes said David Haslerud fleet manager administrative services for 3M in St Paul Minn Most fleet managers anticipate that their incumbent OEMs will continue to be competitive and win the RFP At many companies currently not out to bid the OEMs used will stay the same due to earlier changes We made a change in our OEM providers two years ago so there will be no changes this model year said McCann of Mylan Inc This was repeated by AmeriGas Propane We plan to utilize the same core mix of OEMs said Massey of AmeriGas Propane This was reiterated by other fleets We will source from the same OEMs we did last year said Brett Switzky Fleet Trucking Records Retention Manager at American Family Insurance While many fleets are not considering shifts in OEM sourcing there is a trend to decrease the number of OEMs at fleets that previously offered large selector choices I plead the 5th but we will drop one said one fleet manager who requested anonymity However most fleets are continuing to source new vehicles with the same OEMs We utilize two OEMs and will continue to do so said Kneggs of EnLink Midstream AF acquisition AUTOMOTIVE FLEET I JULY 2017 22 KEIG CBRE SWITZKY American Family Insurance