GE Fleet Services identifies $83M in 2Q cost savings for customers

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GE Capital Fleet Services announced it identified nearly $83 million in cost savings for customers in the second quarter of 2009. GE says its work with customers to maximize return on their fleet investments has resulted in identified cost savings of about $183 million for the first half of 2009.

“With in-depth data, analysis and scenario planning, we help customers make informed decisions about how best to optimize fleet operations and increase productivity – ultimately leading to cost savings,” says Mark Smith, strategic consulting services leader at GE Capital Fleet Services, based in Eden Prairie, Minn. “As part of this process, we review their fleet policies, processes and financials and then benchmark key fleet metrics against other similar fleets to identify improvement opportunities, resulting in millions of dollars in savings.”

In descending order, the areas of highest cost savings identified in the second quarter include:

  • Vehicle-replacement analysis: Determining optimal time to keep vehicles in fleet given applicable costs;
  • Vehicle model-year planning: Optimizing OEM and vehicle selection process in combination with total cost of ownership analysis;
  • Lease versus ownership: Calculating total cost of ownership in combination with other factors, which can make leasing a smarter and more cost-effective option; and
  • Lease options versus reimbursement programs: Moving from mileage reimbursement plans to company car programs.
  • “In today’s economic environment, many companies are evaluating their core business processes and looking to GE to provide the infrastructure and expertise to optimize all, or large portions of, their fleet operations,” says Clarence Nunn, president and chief executive officer of GE Capital Fleet Services. “As companies seek ways to reduce costs, customers value our ability to develop individually tailored solutions to help them meet their business objectives.”