February 2012:
Plug-in EV Battery Pack Dangers
Regardless of fault, too many fires will kill electric cars, again

GM was spared from disaster when the National Highway Traffic Safety Administration closed its safety defect investigation into the potential risk of fire in Chevy Volts that have been involved in a serious crash. The agency’s investigation concluded that no discernible defect trend exists and that the vehicle modifications recently developed by GM reduce the potential for battery intrusion and fire resulting from side impacts.

Time will tell. Based on the available data, NHTSA does not believe that Chevy Volts or other electric vehicles pose a greater risk of fire than gasoline-powered vehicles. Generally all vehicles have some risk of fire in the event of a serious crash. But large lithium-ion battery packs like those used in the Volt and Nissan Leaf pose unique fire risks that NTHSA has yet to get a handle on. For that matter, carmakers and battery manufacturers also are struggling with these risks, and the engineering solutions they have developed to reduce Li-ion meltdowns and fires are nothing short of extraordinary. These complicated safety provisions are the main reason for the high cost of Li-ion battery packs.

Manufacturers will deny it, but early adopters of EVs and PEVs are unwitting guinea pigs in the evolution of Li-ion battery technology...
                               (excerpts from the February issue)

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January 2012:
Should Fleet Managers Worry About Event Data Recorders?
EDRs deliver invaluable safety data but raise privacy concerns

You’ve probably heard pieces of this story already. Tim Murray, fleet driver and Lt. Governor of Massachusetts, cracked up his state-issued Crown Victoria while traveling over 100 mph. He wasn’t wearing his seatbelt. He didn’t touch his brakes. The vehicle’s airbags deployed as designed, saving his life.

We know all this because the information contained in his car’s event data recorder quickly became national news. A few bits of data from the Crown Vic’s EDR had reporters digging for scandal. Where, they asked, was Murray going at 5:30 on a cold, snowy morning? Why was he driving so fast, and why did his speed jump to 108 mph during the final seconds before the crash? Did his unbuckled seatbelt indicate carelessness or attempted suicide? Press conferences soon followed and Murray’s 10 seconds of EDR data morphed into a two-month long news story.

Lurid reporting aside, Murray’s celebrity moment has caused a few fleet managers to wonder if EDR data can be used against their drivers to prove negligence and, in the case of vehicles used in business, corporate liability as well. In a word: yes. Murray was cited for speeding and seatbelt violations based on EDR data.

Critics of EDRs base their arguments on the privacy rights of individuals, citing both the 4th Amendment’s protection . . .
                             (excerpts from the January issue)

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December 2011:
Fleets Can’t Save Electric Vehicles
Several factors prevent fleets from embracing hybrids and PEVs

The hybrid vehicle market ground to a halt in 2011, tanked in part by a weak economy where individuals and fleets alike can ill afford the high prices and limited choice of today’s HEVs. The year proved even worse for plug-in electric vehicles, where incremental costs are even higher than hybrids, charging devices are expensive and vehicle range is a joke. Early plug-in hybrids like the Volt present a special mix of price, range and safety concerns.

Automakers typically depend on fleets—particularly governments and pharmaceuticals—to launch and road test new technologies, but in the case of electric vehicles a large majority of fleets are scaling back their EV plans or avoiding EV acquisitions of any kind, hybrids included.

In our latest survey of U.S. and Canadian fleet managers, 83% say they are delaying or curtailing their AFV program plans. High cost is the dominant factor, but common sense plays a big role as well. While the percentage of fleets with some level of AFV inventory is quite high, most of those vehicles are simply flex-fueled or diesel-powered models. They provide bragging rights for organizations seeking to appear “green” but in daily operation contribute very little to cleaner air or lower operating costs. It would be helpful to abandon the presumption that all AFVs are measurably good for fleets. . . .
                             (excerpts from the December issue)

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November 2011:
Court Blocks Onboard Recorder Rule for Trucks, Buses
Decision may dampen efforts to monitor other types of fleets

A federal appeals court has rejected a 2010 rule requiring electronic onboard recorders for motor carriers with significant hours-of-service violations. The move is likely to delay a separate rulemaking seeking to mandate recorders for all interstate carriers.

Onboard recorders automatically track truckers’ time on the road and rest breaks, helping to ensure compliance with federal hours-of-service regulations. Drivers currently write down their hours in paper logbooks, which are easily falsified. Some carriers use onboard recorders, but they aren’t required.

In April 2010, the Federal Motor Carrier Safety Administration (FMCSA) issued a rule requiring onboard recorders for the fleets of truck and bus companies with a record of egregious work-rule violations. These make up just a small fraction of all carriers. Compliance was slated to begin in June 2012.

The Owner-Operator Independent Drivers Association and three commercial truck drivers challenged the rule on the grounds that carriers might use onboard recorders to harass drivers by pressuring them to drive when thay are tired . . .
                             (excerpts from the November issue)

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October 2011:
Top Fleet Challenges and Concerns
Fleet managers focused on high fuel costs and tight budgets

More than half the fleet managers surveyed for this month’s report say their greatest single concern relates to escalating vehicle operating costs. And because the largest component of overall vehicle operating cost is fuel, it comes as no surprise that high fuel prices and fuel price volatility remain top concerns.

In addition to fuel, other operating costs are also trending higher, though with less volatility. The composite average cost for non-fuel operating expenses—which includes preventive maintenance, oil, tires and unscheduled repairs—was recently tabulated at 4.31 cents per mile for passenger cars, and 6.09 cents per mile for light-duty trucks and vans. Fleetwide, U.S. light-duty . . .

Beyond concern over rising fixed and operating costs, surveyed fleet managers are feeling the pressures of uncertain funding for their departments and, for many managers, stalled earnings growth . . .  Until corporate sales and government tax revenues recover to pre-recession levels wage stagnation is expected to continue.   

Among government/public sector fleets, a small but growing number of managers say they feel threatened by proposals to consolidate fleet functions with neighboring cities or counties. Another concern is privatization, . . .
                             (excerpts from the October issue)

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September 2011:
2011 Fleet Manager Salary Survey
Corporate fleet managers slammed, while others see small gains

The average salary among North American fleet managers stands at $65,753 according to our latest industry survey. This represents a 6.5% decline from last year’s average and reflects a troubling disintegration of earnings growth among corporate/business fleet managers. Managers of government and private utility fleets are faring much better, as data in this report reveal, though their year-over-year wage gains continue to lag the nation’s rate of inflation, meaning few fleet managers are making any headway on a year-over-year basis.

Industrywide salary statistics can be skewed by a number of factors, but the decline in earnings among corporate fleets is undeniably broad and not totally unexpected. Years of salary studies conducted by this publication have shown that corporate fleet managers, as a group, are  getting younger, less experienced and less educated than their government and utility fleet peers. One explanation is that many corporate fleet managers, particularly those with little fleet training and expertise, have become heavily reliant upon third-party services that tend to diminish the role of in-house fleet management, sometimes to the point where the manager becomes little more than a liaison between upper management and third-party vendors. In worst-case scenarios the fleet manager acquiesces so much control over time that the position of fleet manager becomes . . .
                             (excerpts from the September issue)

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August 2011:
In-House Fleet Mechanic Pay Continues to Slip
Amid Budget Cuts
Latest fleet mechanic pay data and vehicle-to-mechanic ratios

Average weekly pay for in-house fleet mechanics continues to drift downward due to the nation’s prolonged economic slump. During the past 12 months technician pay has declined 2% or more, depending on the skill level involved. Ironically, fleet mechanics with the highest skills have seen their pay cut the most, by an average of 4% for Grade 4 technicians responsible for complex work like transmission and engine rebuilding.

As noted in last year’s survey report, budget cuts have forced many fleets to cut back on vehicle maintenance. They are extending their preventive maintenance service intervals and skipping some factory-recommended service procedures entirely. But in a sign that neglect has its limits, this year’s survey shows a slight shift toward shorter intervals between preventive maintenance service. Currently the fleetwide interval between PM service stands at 3.4 months, down from 3.6 months one year ago.

Among government and utility fleets, where the vast majority of vehicle service takes place in-house, shop managers have reduced the number of full-time mechanics and bumped up the average workload for those mechanics who remain on the job. But this trend has limits, too. In fact, vehicle-to-mechanic ratios have declined in most categories compared to last year . . .
                             (excerpts from the August 2011 issue)

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July 2011:
Fleet Vehicle Disposal Options
Auctions top choice among government and corporate fleets

Managers of corporate and government fleets are heavily reliant upon auctions for vehicle resale and disposal and that’s not a bad thing, according to early results from our annual Fleet Manager Profile Survey.

Corporate and government vehicle auction prices have been climbing for two years across most vehicle segments, even as tight budgets are forcing a majority of fleet managers to keep their vehicles in service longer, in both months and miles on the road. High auction prices continue to be driven by a stumbling economy that is forcing many consumers to purchase used vehicles instead of brand new models.

Among surveyed corporate fleets, 71% utilize auctions for a portion of their vehicle disposal needs, and 39% say auctions currently yield the highest resale prices of all the disposal methods in their arsenal.

Government fleets overwhelmingly rely on auctions, with 89% of surveyed managers using auctions to retire a portion of their used vehicles. Of those government fleets, 68% say auctions are currently yielding the highest prices compared to their other methods of vehicle disposal  . . .
                                     (excerpts from the July 2011 issue)

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June 2011:
ESC Drives Down Vehicle Deaths
Once deadly SUV category now among the safest on the road

Researchers at the Insurance Institute for Highway Safety say dying in a crash has become much less likely than it used to be for people in all types of passenger vehicles. For occupants of SUVs, the change has been dramatic. In the past, the top-heavy vehicles frequently rolled over, giving many models some of the highest driver death rates. But drivers of today’s SUVs are among the least likely to die in a crash, the Institute’s latest calculations of driver death rates show.

The change is due largely to the widespread availability of electronic stability control (ESC),  which helps prevent rollovers. With the propensity to roll over reduced, SUVs are on balance safer than cars because their bigger size and weight provide greater protection in a crash.

”The rollover risk in SUVs used to outweigh their size/weight advantage, but that’s no longer the case, thanks to ESC,” says Anne McCartt, the Institute’s senior vice president for research. It’s not just weight that gives SUVs an advantage. It’s also their height and other factors. When cars and SUVs of similar weight are compared, the SUVs have lower death rates . . .
                                     (excerpts from the June 2011 issue)

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May 2011:
Non-Fuel Vehicle operating Costs Soar 6.6%
in Latest 12-Month Survey Period
Fleet operating costs hit by inflation, longer vehicle lifecycles

Over the past 12 months fleet vehicle operating costs have increased dramatically across the board. While much attention is focused on the rising and unpredictable cost of fuel, the high price of gasoline is just one of many escalating cost components affecting North American fleet operations. Fleets are being clobbered as well by significantly higher costs for tires, preventive maintenance and non-warranty repairs.

Excluding fuel, vehicle operating costs currently average 5.02 cents per mile, up 6.6% from one year ago. Not only is this jump in operating costs far larger than the nation’s overall inflation rate, it is the highest year-over-year increase in a decade.

Fleets are being hit with higher prices in all cost categories, but one area stands out. The cost of unscheduled, non-warranty repairs has spiked 10.2 % over the past year. Some of this increase can be attributed to general price inflation, but a more likely explanation relates to the fact many fleets have cut back on new vehicle acquisitions and are keeping their vehicles in service longer.  The consequence of lengthened replacement cycles is an increase in unexpected and sometimes costly mechanical repairs.. . . (excerpts from the May 2011 issue)

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April 2011:
Cars That “See” Pedestrians
New technology will reduce chances of vehicles hitting people

In the latest issue of Status Report, researchers at the Insurance Institute for Highway Safety say emerging automotive technology has the potential to prevent vehicles from hitting pedestrians. The Institute says automakers are developing systems to spot pedestrians entering a vehicle’s path and to automatically brake if the driver fails to react.  

Systems aimed at preventing or lessening the severity of pedestrian crashes are an offshoot of a more common type of crash avoidance feature known as forward collision warning. Such systems alert the driver if the vehicle is about to crash with a vehicle ahead of it and, in some cases, apply the brakes automatically if the driver fails to respond. A pedestrian detection system is a forward collision warning system that has been enhanced to recognize not just vehicles, but people too.

Forward collision warning is offered on 19 vehicle makes in 2011 and is one of several crash avoidance features that have been gaining ground. (Others are lane departure warning, side view assist, and adaptive headlights.) The Institute has estimated that as many as 1.2 million crashes, including 879 fatal crashes, could be prevented or mitigated each year if all vehicles were equipped with forward collision warning. Pedestrian detection systems could prevent an additional 39,000 crashes, including 2,932 fatal ones, researchers estimate. . . (excerpts from the April 2011 issue)

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March 2011:
Budgeting Fleet in Uncertain Times
Some fleet vehicle cost components now too volatile to predict

Anyone working in fleet management for more than a dozen years has plenty of stories to tell about iconic carmakers, historically stable prices and a fair degree of day-to-day predictability . . .

Today, in a test of understatement, let’s just say things have changed. Wars, recessions, bankruptcies and crises of all sorts have turned fleet management upside down. The cornerstone of running a successful fleet—sound asset management—has given way to myriad other factors, a great many of which are out of the control of fleet administrators and other mortals.

Take fuel costs, for example. The difference between $2.50 gas and $4.00 gas is roughly 10% of total annual vehicle costs, assuming 20,000 miles of driving per year. That’s more than enough to crash any fleet operating budget that lacks adequate contingency funding. Unfortunately fuel prices are fully beyond the control fleet managers.

Consider, too, the not long ago implosion of GM and Chrysler, which decimated budgeted residual values for both brands, particularly Chrysler. Many fleet managers were left holding the bag at resale time.Single-nameplate fleets were orphaned overnight. The list of uncontrollables goes on, from  . . .
                             (excerpts from the March 2011 issue)

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February 2011:
Consumers Will Set EV Adoption Rate
White House goal of 1 million EVs by 2015 far from certain

The blue-sky message being delivered by carmakers and Washington politicians singing the praises of pure-electric vehicles might lead many to believe the EV revolution is already a done deal. Yet a pair of electric vehicle market studies conducted by IBM demonstrate the difficulties facing automakers as the industry shifts from traditional gas-powered propulsion to pure-electric drivetrains. To succeed, manufacturers must address stringent consumer requirements about EV performance, recharging, and convenience.

IBM asked drivers what would motivate them to switch from a vehicle that currently runs on gasoline, diesel or hybrid to an electric-only vehicle. The same question was posed to auto industry executives, who were asked to rate the importance they believe drivers place on each criteria.

Taken together, the two studies demonstrate significant differences between consumers and automobile industry executives on the factors motivating consumers to purchase electric vehicles. Industry executives place far greater weight than consumers on government incentives/regulations (73% to 41%) and significantly higher oil prices (76% to 51%). Additionally, auto executives . . .

                             (excerpts from the February 2011 issue)

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January 2011:
Real-World Data Confirm Results of IIHS
Side-Impact Crash Tests
Tougher crash tests lead to measurable vehicle safety gains

Drivers of vehicles that rank poorly in side-impact crash tests are three times as likely to die in a real-world left-side crash than drivers of vehicles that perform well, according to a new analysis by the Insurance Institute for Highway Safety.

 “This was our first look at how our ratings correlate with actual crash data since we started side tests in 2003, and the numbers confirm that these are meaningful ratings,” says Institute chief research officer David Zuby. “Vehicles with good side ratings provide occupants with far more protection than vehicles that do poorly in our test.”

 Studies of frontal crashes have shown similar results. Drivers of vehicles with good ratings in the Institute’s frontal offset crash tests are much less likely to die in frontal crashes.

 Side-impact crashes accounted for 27% of passenger vehicle occupant deaths in the United States in 2009. Such crashes can be particularly deadly because the sides of vehicles have relatively little space to absorb energy and shield occupants . . .

                               (excerpts from the January 2011 issue)

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December 2010:
Mandatory Back-Up Camerca Coming
NHTSA proceeds with regulation despite efficacy concerns

The U.S. Department of Transportation has proposed a new safety regulation which the agency believes will help eliminate blind zones behind vehicles that can hide the presence of pedestrians, especially young children and the elderly. The proposed rule was required by Congress as part of the Cameron Gulbransen Kids Transportation Safety Act of 2007. Two-year old Cameron Gulbransen, for whom the Act is named, was killed when his father accidentally backed over him in the family's driveway.

The proposal, issued by NHTSA, would expand the required field of view for all passenger cars, pickup trucks, minivans, buses and low- speed vehicles with a gross vehicle weight rating of up to 10,000 pounds so that drivers can see directly behind the vehicle when the vehicle's transmission is in reverse. NHTSA believes automobile manufacturers will install rear mounted video cameras and in-vehicle displays to meet the proposed standards.

To meet the requirements of the proposed rule, 10% of new vehicles must comply by September 2012, 40% by September 2013, and 100% by September 2014 . . .

                               (excerpts from the December 2010 issue)

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November 2010:
Report: EV Market Overestimated
Fleets face risk of orphan technology and low EV residuals

Fleet managers are viewing hybrid and battery-electric vehicles with a mix of enthusiasm and trepidation. While nearly two-thirds of surveyed fleets have added at least one hybrid to their vehicle inventory, large scale adoption of HEVs is occurring slowly for three reasons. First, HEV prices are high, relative to conventional, gas-powered vehicles. Second, HEV residual values are lagging. Finally, discretionary spending for new powertrain technologies is limited among most fleets because of across-the-board budget cuts that do not allow room for experimentation.

Consequently, for all but a handful of fleets, the adoption of hybrids has been far from spectacular. Most fleets have acquired a limited number of HEVs to become better acquainted with emerging EV technology and to placate those who insist that fleets should lead the charge (no pun intended) toward greener vehicle propulsion technologies. In fact, a readership survey conducted earlier this year revealed that 24% of fleet managers with AFV programs felt their programs generally were mere “window dressing” that failed to produce meaningful environmental gains or fuel savings, let alone any appreciable cost savings . . .

                               (excerpts from the November 2010 issue)

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October 2010:
2010 Fleet Manager Salary Survey
Younger workforce putting downward pressure on pay

The average salary among North American fleet managers stands at $70,319 according to our latest industry survey. This represents a 2.1% increase over last year’s average and continues the see-saw salary trend that has plagued the fleet management profession for the past eight years.

While this year’s salary increase is welcome news, particularly in light of continued economic weakness and persistently high unemployment, any celebration is premature. That’s because for most of the last decade average fleet pay has been stuck in a rut, with pay declining some years and barely keeping pace with inflation in other years.

This isn’t to say all fleet managers are locked into a relatively stagnant salary range. Many experienced fleet administrators are earning far more than the national average . . .

But there’s another side to the coin. Industrywide, fleet pay has been stagnant or declining, on an average basis, because a large number of top-salary positions are being lost  . . .

                               (excerpts from the October 2010 issue)

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September 2010:
Plug-in Vehicle Market Growth and Its Impact on the
Electric Grid -- ACEEE Fact Sheet
ACEEE report summarizes various plausible scenarios

 The rate at which plug-in electric vehicles (PEVs) enter the U.S. vehicle stock depends on many factors, including battery cost and reliability, the price of gasoline, and government incentive programs, according to analysts at the American Council for an Energy-Efficient Economy (ACEEE). Plausible scenarios of PEV population in the year 2030 range from a conservative 3.3 million to an aggressive 100 million.

Most of these scenarios are specifically for plug-in hybrid electric vehicles (PHEVs), i.e., plug-ins having internal combustion engines. Until recently, most projections assumed that PHEVs would be the dominant plug-in technology for many years to come. With all-electric vehicles (EVs) arriving in the U.S. this year and renewed optimism for this technology, some manufacturers see EVs taking over before 2030.

In a recently published fact sheet, ACEEE summarizes a range of PHEV market penetration scenarios relying on diverse but plausible assumptions.. . .

                               (excerpts from the September 2010 issue)

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August 2010:
Budget Woes Impacting Vehicle Maintenance,
Technician Pay
PM intervals, repair technician pay, vehicle-to-mechanic ratios

Our latest fleet management survey shows a continuing deterioration in key metrics relating to preventive maintenance programs and in-house vehicle repair operations. In a nutshell many fleets are underfunded to the point where maintenance and non-critical repairs are being deferred or ignored. Among fleet garages, technicians are subject to the morale-killing situation of working harder for less pay because of layoffs and wage freezes.

These trends are being driven by a sluggish economic recovery and persistently high unemployment. Among many corporate/business fleets, vehicle count and miles driven are both down. Among some government fleets, trucks and equipment often sit idle because tax revenues have evaporated, resulting in worker layoffs and the postponement of many fleet-dependent public works projects. The only fleet segment showing growth right now is private utilities, where cable and fiber optics buildouts are underway in many metropolitan areas.

Fleet cutbacks haven’t been limited to reductions in vehicle count and miles driven. Managers report all expense categories are under the knife, from scheduled vehicle replacement to routine oil changes. Preventive maintenance intervals are being stretched out longer and vehicle replacements are being deferred in favor of extended vehicle life cycles. Over half the fleet managers surveyed for this report say they are keeping their vehicles longer on a months and miles basis . . .
                                       (excerpts from the August 2010 issue)

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July 2010:
Proactive Fleet Safety Programs Reduce
Accident Expenses, Injuries
Yet 17% of surveyed fleets lack a formal written safety policy

 Depending on which research report you read, the typical fleet suffers an annual vehicle accident rate ranging from 6% to 15%. Either figure represents an enormous cost to the average fleet, including but not limited to vehicle repair, property replacement, medical liability, lost productivity and loss of business.

Anything that can be done on the fleet management side to lower vehicle accident rates is going to improve the bottom line. Accident rates among corporate and government fleets are higher than the general population, where the annual accident rate hovers around 3%.  Fleet accident rates tend to be higher because fleet drivers log more miles per year than the average non-fleet driver, and fleet drivers tend to travel more inner city miles where traffic congestion leads to more vehicle collisions.

Fortunately, most vehicle accidents only result in property damage, but nearly a third of all vehicle crashes result in bodily injury, and roughly 0.5% result in fatalities. Though the business mindset often focuses on the financial costs of vehicle crashes, there are also significant human and societal costs involved.

Corporate accountants zero in on the risk management aspect, as is their duty. Accident costs can be staggeringly high among large fleets, and among smaller firms an unusually serious fleet accident claim can cripple or bankrupt the company . . .
                                       (excerpts from the July 2010 issue)

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June 2010:
Crash Avoidance Technologies
Use of existing technologies could cut fatalities by one-third

Current crash avoidance features could prevent or mitigate about one of every three fatal crashes and one of every five serious or moderate injury crashes involving passenger vehicles, according to the Insurance Institute for Highway Safety (IIHS). As many as 1.9 million crashes could be prevented or mitigated each year. This is the Institute's latest estimate of the safety potential of equipping all passenger vehicles with four crash avoidance features already on the market.

Now that more systems are on the road, the updated projections take into account limitations of current systems. The fresh numbers follow the 2009 release of survey results indicating most early adopters are using the crash avoidance features in Volvo and Infiniti models to be safer drivers.

The four new technologies the Institute studied include lane departure warning/prevention, forward collision warning/mitiga-tion, side view assist (also known as blind spot detection), and adaptive headlights.

In line with the Institute’s 2008 study, a main finding is that lane departure warning has the potential to prevent or mitigate the most fatal crashes, while forward collision warning appears to have the greatest promise for reducing crashes of lower severity. Side view assist doesn't show as much potential simply because not as many serious crashes are relevant to this technology . . .
                                       (excerpts from the June 2010 issue)

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