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Wheels Donlen

Donlen and Wheels to Merge

Athene is the lead investor in the new mega company, consolidating two of the most well-known fleet companies in the world.

Focus on Fuel Efficiency

Challenging drivers to engage in more fuel-efficient driving practices is just one effective method for cutting down on fuel use and reducing a fleet’s carbon footprint.

The Cost of Operating a Fleet Will Increase

It will become more expensive to operate a fleet in the coming years. Vehicle acquisition costs will increase. Fuel prices, in all likelihood, will trend upward and maintenance costs will ratchet higher due to more companies adopting extended replacement schedules. In addition, vehicle-related taxes will increase. Let's examine the dynamics that will force fleet expenses to escalate.

Does LIBOR Still Correlate to Corporate Borrowing?

LIBOR was developed in 1984 as a measure of the real rate at which banks lend money to each other. Since the early 1990s, LIBOR has been used as a funding index for fleet leases. However, when the recent turmoil in the financial markets prompted governments to "backstop" bank borrowing, the cost of lending money began to represent a government-guaranteed rate, which no longer correlated to fleet lessor costs.

Fleet Operating Costs Increase Again in 2008

Although gas prices started to decline in August, the year-to-date cost of fuel in 2008 has increased 30 percent compared to last year. The price for replacement tires rose 5-10 percent in 2008 due to higher oil prices and the shift by manufacturers to larger diameter tires. Also, fleet maintenance and repair costs increased across the board in 2008. The cost for non-warranty maintenance services was up 5 percent for fleets.

Mixed 2008 OTD Performance: Some Models Up, Some Down

The 2008 model-year produced mixed results in order-to-delivery (OTD) perfromance. A protracted UAW strike and flooding in the Midwest delayed some models, while other models posted improved OTD due to reduced retail sales, which expedited fleet production. In addition, there was sufficient rail car availability due to soft retail sales and a decrease in quality holds.

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