Posts Tagged ‘Automotive Fleet’
The Real Cost of Fleet Accidents
Monday, November 9th, 2009
Many managers have trouble fully understanding the true costs of accidents within their fleet. It is difficult not only to quantify how much money can be saved by accident prevention, but also to disseminate that information in a meaningful way to an entire organization. In an article for Automotive Fleet, The CEI Group Inc.’s Vincent Brigidi offers some ideas on demonstrating the costs involved in fleet collisions.
Accidents incur both direct and indirect costs to companies. The surface damage to vehicles is only a small part of the real costs behind an accident. After repairs to the vehicles themselves, other hidden costs such as worker’s compensation, third-party liability costs, legal expenses, lost revenue, and decreased productivity can increase the overall bill in a very significant way.
If the idea of a few extra charges doesn’t seem like much, consider this: after dealing with all of these extra expenses, the real costs of an accident can cost your fleet two to ten times the direct cost of the collision. That means an accident requiring $2,500 in repairs and replacement rentals could really cost $5,000 to $25,000.
After you have determined what accidents really cost, the next thing to do is to make sure your company understands how that cost affects business and why it is important to prevent it. Upper management will be making most of the decisions when it comes to new safety programs, so it is important to make sure they understand the real financial burden placed on the company by accident costs.
For example, if you were to take the expenses incurred by accidents and divide by your company’s operating profit margin, you would have the additional sales revenue necessary to make up for the cost of those accidents. $500,000 in accident costs requires $5 million in revenue at a 10 percent profit margin.
A new safety program for a fleet that reduces accidents by 20 percent can save up to $1 million in additional sales necessary. Money like that is a powerful incentive for fleet operators to make sure their investment is protected while making sure their drivers stay safe on the job.
For the full article, visit Automotive Fleet.
Photo courtesy of mrbill under the Creative Commons License.
Tags: Automotive Fleet, CEI Group, fleet accident, The CEI Group Inc
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AT&T Rewarded for CNG Program
Monday, October 12th, 2009
AT&T was recently recognized for its concentrated effort to encourage the use of natural gas in its fleet vehicles and educating the public on the benefits of alternative fuels. The telecommunications giant was one of five recipients of the National NGV Achievement Award at the Natural Gas Vehicle Conference-Summit in Long Beach, California.
After conducting a thorough investigation of natural gas vehicle options, benefits and availability, AT&T decided in 2008 to field test 25 Compressed Natural Gas (CNG)-powered installation-and-service vans in several of its California locations. After deploying the units and evaluating their performance, AT&T announced in early 2009 that it would replace approximately 8,000 gasoline-powered service vehicles with vehicles powered by CNG over the next five years. The company plans to deploy 15,000 alternative fuel vehicles by 2019. BAF Technologies also announced June 30 it would help AT&T with the conversion to compressed natural gas. The Center for Automotive Research (CAR) estimates AT&T’s CNG vehicles will save 49 million gallons of gasoline and reduce carbon emissions by 25 percent over its 10-year implication. Ranked No.1 on Automotive Fleet’s Top 300 Commercial Fleets of 2009 based on size, AT&T operates 86,099 vehicles in its fleet.
Photo courtesy of ecastro under the Creative Commons License.
Tags: AT&T, Automotive Fleet, BAF Technologies, CAR, Center for Automotive Research, compressed natural gas, National NGV Achievement Award, Natural Gas Vehicle, Natural Gas Vehicle Conference-Summit
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Free Fleet Safety Web Seminars Coming Later this Month
Tuesday, September 15th, 2009
Brought to you by Automotive Fleet and the other subsidiary sites of fleet-central.com , these free safety seminars are now open for registration. The topics covered will be at-fault accidents, driver distraction, and brake safety. A description of each individual course appears below. Fleet managers only need to sign up once to receive all three seminars!
Fleet Safety Webinar Series
Click here to sign up for the webinar series
SAFETY SESSIONS PART I
Prevent and Predict At-Fault Crashes
September 22, 2009 11:00AM PDT / 2:00PM EDT
Sponsor: Driver’s Alert
As a fleet manager or safety director, you know 95% of your drivers practice safe driving and that the other 5 percent are at high risk to cause your next at-fault crash. Find out how many of your drivers are in the bottom 5% and how to prevent the at-fault crash from ever happening.
SAFETY SESSIONS PART II
Distracted Driving: Dangers and Defenses
October 13, 2009 11:00AM PDT / 2:00PM EDT
Sponsor: DriverCare Risk & Safety Services by CEI
Distracted driving is a serious and growing problem for fleets and the public at large. Gain valuable knowledge about the sources of distracted driving, its impact on crashes, fatalities and fleet finances, and a range of proactive responses. This webinar will be a practical discussion between a subject matter expert from the National Safety Council and two leading fleet managers from the commercial and public sectors, who will share their real-world experiences and insights in dealing with the problem. Topics will include the science of distracted driving, programs to raise drivers’ awareness, legislative initiatives, and emerging technologies.
SAFETY SESSIONS PART III
Are You Helping to Keep Your Drivers Safe? How Good Are Your Brakes?
November 10, 2009 11:00AM PDT / 2:00PM EDT
Sponsor: Midas
Learn how brake systems work, how they have changed, and how they affect and are affected by other vehicle safety systems. Gain knowledge on how to identify potential issues which could eventually lead to extensive and expensive repairs. Understand how utilizing M.A.P. (Motorist Assurance Program) can help fleet managers make better informed decisions on whether or not to keep the vehicle in service based on known upcoming service needs.
Photo courtesy of aNantaB under the Creative Commons License.
Tags: Automotive Fleet, Driver's Alert, DriverCare Risk & Safety Services by CEI, fleet, fleet managers, Fleet Safety Webinar Series, fleet-central.com, M.A.P, Midas, Motorist Assurance Program, National Safety Council
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Vehicle Theft Statistics for Small Fleets
Tuesday, August 25th, 2009
Automotive Fleet’s latest report on vehicle theft sheds light on what is a common and incredibly frustrating problem for fleet managers and companies.
On average, fleets experience a loss of two vehicles per year to theft. Just over half of fleets (53 percent) recover all of the stolen vehicles, but many fleets never recover their vehicles. The financial loss incurred by stolen vehicles can take a serious toll on the bottom line of a small fleet.
Fleets are taking steps to prevent vehicle theft; many cars are equipped with alarm systems either from the manufacturer or installed after-market depending on the importance of the cargo. Not all fleets can afford to equip their vehicles with alarm systems, which can be costly. Some fleets even pass on installing alarms because the cost of equipping them is greater than the amount they would lose from vehicle theft.
So what is the best way for you to prevent theft in your fleet? Automotive Fleet offers these suggestions:
- Do not leave vehicles and/or company equipment unsecured.
- Install alarms on vehicles with sensitive equipment.
- Designate specific parking areas.
- Request drivers remove valuable items from eyesight. One option is placing these items in the vehicle trunk.
- Instruct drivers to lock vehicles at all times and park in well-lit, safe areas.
- Install a GPS system in vehicles to track them in the event of theft.
Vehicle theft is on the rise over the past two years in commercial fleets, along with vandalism and practices such as fuel siphoning. These consequences don’t just fall on fleet managers; in most fleets, drivers are responsible for their vehicles and any items left inside. If theft is a result of negligence, drivers can quickly be terminated. New vehicles are not the only targets for theft, and all vehicles should be carefully monitored and protected to keep your fleet safe and secure.
Photo courtesy of kowitz under the Creative Commons License.
Tags: auto theft prevention, Automotive Fleet, fleet managers, fleets, stolen vehicles
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Gender’s Role in Fleet Salaries
Wednesday, August 19th, 2009
According to a survey by Automotive Fleet magazine, male fleet managers earn an average salary of $79,429 per year, while female fleet managers make an average of $67,378- a difference of more than $12,000 dollars per year.
The gap between male and female fleet managers’ salaries is affected by several factors. When it comes to experience, the survey showed that the gap begins at around $3,000 per year for fleet managers with 1-3 years of experience. From there on, the salary gap remains roughly the same until 20 years of experience, when it widens significantly to over $15,000 per year; male managers at this level make an average of $87,083 while females earn $71,666.
Education and fleet size have a less constant effect on the salary gap. While female fleet managers did report a lower salary at almost all levels of education, females with a technical degrees were found to earn slightly more than males with the same level of education. The largest gap appeared in managers with liberal arts degrees, with males making an average of $14,000 more than females. Females were found to earn more than their male counterparts in fleets with between 1 and 50 vehicles, and stay close to even with male salaries until fleet sizes reache 1,000 or more, where the gap reaches $15,624.
While this data may seem somewhat bleak, consider the following: across all professions in the United States in 2008, males made an average of 22 percent more than females. In the fleet industry, that number is only 15 percent.
Do you think the salary gap is a problem? What could the fleet industry do to lessen the divide? Leave us a comment below and tell us what you think.
Tags: Automotive Fleet, fleet industry, fleet managers, fleet salary, fleet size
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AT&T Now Largest US Fleet
Tuesday, April 14th, 2009
With 86,099 total vehicles, AT&T is now the nation’s biggest fleet, as reported Automotive Fleet. AT&T beat out UPS, last year’s largest fleet, by more then 13,000 vehicles. Verizon Wireless is now the third-largest fleet with 64,688 vehicles.
Top Fleets Nationwide:
AT&T: 86,099 vehicles
UPS: 72,633
Verizon Wireless: 64,688
Food/Beverage:
Coca-Cola Enterprises – 28,038 vehicles
Pharmaceutical:
Johnson & Johnson – 9,850 vehicles
Tobacco:
R.J. Reynolds Tobacco – 2,199 vehicles
Each year, Automotive Fleet conducts a survey to rank the nation’s largest fleets across different industries. Results are published in the May issue of the magazine.
Tags: AT&T, Automotive Fleet, largest fleets, UPS, Verizon Wireless
Posted in Industry News | 1 Comment »
