GE Capital Fleet Services announced that it had identified more than $96 million in cost savings for customers in the second quarter of 2010. For the first half of 2010, GE’s work with customers to optimize returns on their fleet investments has resulted in identified cost savings of more than $160 million, the company says.
During a recent client analysis of a large healthcare company, GE Capital Fleet Services determined that a company car program that utilized leasing and incorporated all vehicle services, such as maintenance, fuel, accident, or others would result in significant cost savings when compared to the reimbursement program the client had in place. GE Capital Fleet Services assisted the company with the OEM and vehicle selection process and developed a fleet policy to move from a reimbursement program to a company car program, helping the company realize a cost savings of approximately 20 percent.
In descending order, the largest areas of cost savings identified by GE Capital Fleet Services for its customers during the quarter include:
• Company leased vehicles versus company owned vehicles ($35 million): Leasing a fleet instead of owning a fleet of vehicles for use by employees.
• Total-cost-of-ownership analysis ($19 million): Using cost analysis to evaluate and select OEMs and vehicles.
• Optimal replacement strategies ($19 million): Determining the optimal time to cycle vehicles in fleet, given applicable costs.
• Negotiated maintenance savings ($9 million): Using technology and maintenance expertise to reduce maintenance spend.
• Company car programs versus reimbursement programs ($6 million): Moving to company car programs from mileage reimbursement plans.
“As companies continue to evaluate ways to increase efficiency while managing cost, GE’s fleet management strategy helps provide the expertise and support to maximize their investments into fleet operations,” said Brad Hoffelt, senior vice president of analytics at GE Capital Fleet Services. “From maintenance costs to the decision to convert to a company car program, we work with our customers to identify ways to add to the bottom line.”