Posts Tagged ‘fleets’
North Carolina Fleets Wasting Millions
Wednesday, November 18th, 2009
According to a report from WRAL.com, North Carolina Gov. Beverly Perdue said Tuesday that rules governing how state agencies lease vehicles need to be reworked to avoid wasteful spending. Some agencies have paid millions of dollars for miles they did not drive, and others had questionable record-keeping practices.
State agencies lease their fleet vehicles from the North Carolina Motor Fleet Management Division, which is fully funded by the fees collected on the vehicles. By law, the division charges for a monthly minimum of 1,050 miles on each vehicle to cover maintenance, insurance and gas for more than 8,500 state-owned vehicles. If vehicles are driven more than 1,050 miles in a month, the agency must pay extra. If cars travel less than 1,050 miles, agencies must still pay the minimum rate.
Over the past year, the unused miles have added up due to the Governor’s orders to cut travel expenses due to a record budget shortfall. From July 2008 to June 2009, the state Department of Correction spent $1.7 million on parked cars. More than half of the state Department of Health and Human Services vehicles drove under the minimum mileage, costing the agency more than $1 million.
Gov. Perdue said agencies could end up returning several vehicles to Motor Fleet Management and having their employees share vehicles to recoup the costs. She also said the law regarding usage of state-owned vehicles might need to be updated.
The motor fleet statute that covers mileage was adopted in 1981 and has never been changed. By law, Motor Fleet Management is limited in its oversight. Once an agency rents a vehicle, the division can’t take it away as long as the bills are being paid.
Photo courtesy of lastdue under the Creative Commons License.
Tags: Beverly Perdue, Department of Correction, Department of Health and Human Services, fleets, Motor Fleet Management, North Carolina Motor Fleet Management Division, WRAL.com
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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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Nitrogen Tire Inflation Becoming Available to Fleets
Friday, June 26th, 2009
Nitrogen gas is steadily overtaking standard air when it comes to inflating tires for your vehicles, and one Phoenix based company is now offering their services to companies with fleets and the trucking industry.
In an article posted on The Auto Channel, NitrogenMan just completed installation for Safeway grocery stores to fill their vehicles with nitrogen. Tests, on tires filled with nitrogen, have shown it improves handling, fuel efficiency, and up to a 40% longer tread life.
Because Nitrogen is an inert, dry gas, it allows the tire to run cooler than with normal air, which creates a more consistent tire pressure, despite the weather outside. In turn, tests show this reduces the need for maintenance and the possibility of a blowout on the road.
The Auto Channel also reports that industry studies found that “Nitrogen-inflated tires can increase fuel economy by between 4 and 10%.”
Safeway, which is one of the NitrogenMan’s first major clients, plans on completing the conversion of the grocery store’s fleet of 320 trailers and 80 tractors by August.
Nitrogen tire inflation has not only seen an increase with truck fleets, but also with auto dealers offering the service on new car purchases.
For more information on Nitrogen inflation, check out the full article here.
Tags: fleets, Nitrogen, NitrogenMan, Phoenix, Safeway, The Auto Channel, trucking industry
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Chrysler to Cut 25% of Dealerships
Friday, May 15th, 2009
In a follow up to a recent blog discussing the possible closure of hundreds of dealerships across the country, Chrysler announced today that they are looking to eliminate nearly a quarter of their dealershipsby early June.
In a motion filed with U.S. bankruptcy court, Chrysler said that 50 percent of dealers account for about 90 percent of the company’s U.S. sales.
Dealers were told Thursday morning through letters delivered by UPS whether or not their stores would remain open.
The ripple effect of this move along with possibility of GM doing the same in the coming weeks could be one of the most visible effects of the country’s economic troubles as thousands of jobs will be affected across the nation.
Chrysler said its dealer network “needs to be reduced and reconfigured in a targeted manner to strengthen the network and dealer profitability and to achieve optimal results for the dealers and consumers.”
Companies with fleets that fall under Chrysler will be glad to know that the automaker announced that the company will be notifying over 3.5 million customers of franchises affected by the closing, that their vehicles will remain covered under whatever bumper-to-bumper and powertrain warranty issued at the time of purchase and that it will be honored by remaining certified Chrysler dealers.
Today’s business section at MSNBC.com features a complete list of Chrysler dealers the automaker is looking to shut down.
It might be worth a look to see if your fleet will be affected.
Photo copyright of The Consumerist under the Creative Commons License
Tags: bumper-to-bumper, Chrysler, Chrysler dealers, fleets, GM, MSNBC, powertrain warranty, UPS, US Bankruptcy
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