1720 Paramount Drive | Waukesha, WI 53186 | 262-513-3300 | www.ewaldfleetsolutions.com

INSIGHTA Publication of Ewald Fleet Solutions

INSIGHT

IN THIS ISSUE: • Spend Management

• Maintenance Costs Increase in 2011

• New Ram Cargo and Transit Vans

• Mayfair Rent-A-Car has a Vehicle for all of your Travel Needs

• Mistaken Assumptions about Negligent Entrustment

• Kelley Blue Book Lowest Cost of Ownership Analysis

• Ford Lane Keeping System & New Safety System Technology

Quarter 1 | 2012The Road Ahead Just Got Easier.

Are you confident that your vehicle costs are in line?Spend management is all the rage in today’s business world. Employees spend the company’s money in a myriad of ways, for numerous reasons. Here’s how fleet managers can contribute to the reduction effort.Excerpted from a recent featured article in Fleet Financials, the staff writers went on to summarize:

There are several key elements to successfully managing employee spend, without taking on additional administrative overhead:

• Know what the spend is - you can’t manage what you don’t see. • Use fleet programs - most fleet suppliers provide a full menu of fleet and fleet-related programs.

• Make full use of any controls these programs offer to prevent wasteful spending before it happens.

• Limit driver involvement.Source: Fleet Financials (November 2011)

This is very good advice and something that Ewald Fleet Solutions can assist you with. Let’s take a closer look.

What it means – If you are not adequately managing all cost areas associated with your vehicles, you could be exposing your company to unnecessary expenses. Placing vehicles in service and relying solely on good judgment by your drivers to monitor maintenance and fuel costs is not sufficient. Properly tracking and monitoring all fuel and maintenance transactions and benchmarking these costs are key factors in controlling and identifying areas of overspending on variable costs.

What you can do – Be certain you manage all expenses associated with the four major cost areas; vehicle acquisition, depreciation, maintenance, and fuel. Regardless of the size of your fleet, you will benefit from planning and researching vehicle options prior to replacement. You will also benefit from capturing and recording all of your vehicle maintenance and fuel expenses.

Data tracking is important for benchmarking costs, monitoring spend, and beneficial when identifying the best time to replace a vehicle.

How you can get started – If you are already a customer of Ewald Fleet Solutions (EFS), you can simply request an analysis of your

fleet spend for your next scheduled fleet review. If you are not a current customer of EFS, we would be happy to extend a no cost - no obligation fleet analysis to you.

If you have an interest in taking action after reviewing our analysis, we can provide you with recommendations and steer you to fleet programs that will install oversight and prevent wasteful spending.

Brian Ewald Recognized as Wisconsin Dealer of the Year

Brian Ewald was recognized as Wisconsin’s Time Dealer of the Year by TIME magazine, Wisconsin Automobile & Truck Dealers Association, & the National Automobile Dealers Association.

The TIME Dealer of the Year program honors new car dealers in America who exhibit exceptional performance in their dealerships and perform distinguished community service.

Brian joins previous family members; father Emil Ewald (1998), and brother Craig Ewald (2002), to create a Time Quality Dealer of the Year Award “Trifecta”.

Craig Ewald, Brian Ewald, Dan Ewald, Tom Ewald

Many Mayfair Rent-A-Car customers rely on our large selection of vehicle types to get them where they need to go. With the new year underway, business travel is on the rise. Upcoming business conferences, trade shows, and client meetings result in a large number of employees traveling. Our unlimited mileage feature benefits customers by allowing them to travel anywhere, without incurring any additional expenses.

Mayfair Rent-A-Car’s vehicles can be used for all of your business travel:- Compact to luxury sedans for client meetings - Minivans, 8, 12, & 15 passenger vans for traveling to business conferences- SUV’s, pick-up trucks, and cargo vans for traveling to and from trade shows with booth materials

All of these vehicles can be reserved through our Corporate Rental Program with reduced rates, please contact Kyle Teig, Account Executive at Mayfair Rent-A-Car at kteig@mayfairrentacar.com or 262-754-3515 for more information.

A Vehicle for all of your Travel Needs

Chrysler Shows New Ram Cargo VanChrysler has unveiled its new 2012 Ram Cargo

Van, The Ram Cargo features a solid sliding door, a rear quarter window, and backlight privacy panels in place of clear glass windows. Buyers have the option of several

combinations of solid and glass panels.

The Ram Cargo Van also receives a structural aluminum rear load floor. Two flooring options will be available, including one with a flat, uninterrupted, high-capacity surface. A second, optional floor provides through-the-floor access to three exclusive storage bins and load floor tie-downs.

The Ram Cargo Van is engineered with many competitive advantages to meet small business and commercial needs, including an 1,800-lb. cargo payload and towing capability up to 3,600 lbs. It also provides a 20-gallon fuel tank and gets 25 mpg highway

Maintenance Costs Increased in 2011

Many fleets are incurring additional miles on vehicles due to increased business activity. This has added to fleets’ costs with increased repairs and replacement cycling.

The good news is that, because of increased vehicle quality, there are fewer repairs needed. The bad

news: these repairs tend to be more expensive, due to automakers’ proprietary systems requiring parts to be ordered from the OEMs more frequently and the requirements for specific oils and fluids. Fleet repair costs on average increased 10 percent in 2011 for fleets that continued to extend their replacement parameters.

New technologies have also driven maintenance costs. For instance, the integration of multiple systems and higher emphasis on hybrid, electric, and alternative-fuel vehicles have led to the need for technicians with a higher degree of training-which, in turn, leads to higher costs. Fleets need to carefully evaluate the cost-benefits of alternative-fuel vehicles in the context of the increased maintenance costs.

One way some fleets are realizing savings is by shortening the vehicle replacement cycle. This has led to decreased maintenance spend due to less frequent major repairs, and more repairs covered under warranty.

New Ford Transit VanThe new Transit van will eventually replace the Econoline wagon and van in North America. The Transit will be a cargo and people hauler with improvements in handling, fuel economy and technology.

The Transit van will go beyond living up to Econoline’s sterling work reputation. The vehicle will also achieve at least 25 percent better fuel economy compared to similar Econoline vans, thanks in part to smart weight savings that will trim at least 300 pounds from Transit compared to a similar E-Series van. That means customers will potentially save thousands of dollars in operating costs from fuel savings.

Production in the United States is scheduled for 2013.

www.ewaldfleetsolutions.com

Don’t Miss the 2012 Greater Milwaukee Auto ShowThe 2012 Greater Milwaukee Auto Show drives automotive exhilaration into the Frontier Airlines Center, showcasing hundreds of the latest cars, crossovers, trucks and more. From pre-production models to the latest alternative fuel vehicles.

Date: Saturday, February 25 through Sunday, March 4, 2012Held at: Frontier Airlines Center 400 West Wisconsin Milwaukee, WI 53203Hours: Monday – Thursday: 3 pm– 9 pm, Friday: 1 pm – 9 pm, Saturdays: 10 am – 10 pm, Sundays: 10 am – 6 pm

Mistaken Assumptions Managers Make About Negligent Entrustment

Companies can be sued for the actions of its employees. Remember these missteps to avoid legal headaches and possible court dates due to the lack of understanding of the intricacies of the negligent entrustment concept.

Here are some common mistakes managers make when it comes to negligent entrustment:

Think of the Federal Motor Carrier Safety Administration (FMCSA) requirements as a starting point. Background checks and other research should be considered to be sure that someone who could be a liability isn’t hired.

Not only does the FMCSA set minimum standards for driver qualifications, it also requires a manager to keep files for every one of the company’s regular drivers. That file must include the driver’s employment application, an inquiry to previous employers and state agencies, a certificate of motor traffic violations for at least the last 12 months, the driver’s road test certificate, and the driver’s medical exam certificate.

Fleet managers need to make sure all paperwork is on file and up to date. This includes ensuring proper maintenance is performed and documented for each vehicle being driven. Require each employee to sign a consent form that allows a search of their driving records. Make it a condition of employment, and never make any exceptions.

Many companies assume their drivers know what to do and what is expected of them when they are on the road. Do not make that kind of assumption. In a new-hire orientation, spell out all of the company’s expectations, along with the driver’s legal requirements.

There should be a policy limiting the use of company vehicles to employees or contractors. Make it clear to employee drivers that family or friends are not allowed to have access to the company car or vehicle. If someone else has an accident while driving the company vehicle, you could find yourself liable in a lawsuit.

You cannot guarantee that your drivers will never be in an accident. So the next best thing is to protect the company from lawsuits following an incident with its drivers. The right training and screening procedures can help minimize the legal liability for negligent entrustment.

source: Fleet Financials (November 2011)

The Road Ahead Just Got Easier.

Kelley Blue Book Reports Manufacturers With Best Total Cost of Ownership

Based on Kelley Blue Book’s analysis for the lowest average Total Cost of Ownership for the initial five-year ownership period, Audi, Lexus and Cadillac top all luxury brands, while Kia, Hyundai and Honda dominate among all non-luxury brands for lowest average total ownership costs.

Total Cost of Ownership is developed using Kelley Blue Book® Residual Values to calculate depreciation costs. Kelley Blue Book calculates total ownership costs for new vehicles by applying a sophisticated valuation methodology along with critical financial data from third-party providers.

At the brand level, Audi and Lexus currently have the lowest depreciation and best fuel economy among luxury brands, giving them an advantage in low cost of ownership at the luxury level. In addition, Audi, Lexus and Cadillac all offer models that carry a lower MSRP compared to other luxury brands.

For non-luxury brands, Kia and Hyundai have a number of successful redesigns, greatly improved quality and competitive pricing, which sets them apart from other non-luxury brands in terms of cost of ownership.

Kelley Blue Book’s Total Cost of Ownership is available free at www.kbb.com.

source: Kelley Blue Book

Kia Oval Logo 4/C - Large

The Insight newsletter is published by Ewald Fleet Solutions as a source of information for clients and business associates. The information provided here is of a general nature and is not intended to address specific circumstances of any individual or entity. The services of a professional should be obtained before implementing specific ideas. Ewald Fleet Solutions offers products and services through various affiliates of Ewald Holdings, Inc., including Mayfair Leasing, LLC, Mayfair Rent-A-Car, LLC, Ewald Chevrolet Buick, LLC, Ewald Chrysler Jeep Dodge Ram, LLC, Ewald Motors of Oconomowoc, LLC, Ewald’s Hartford Ford, LLC, and Ewald’s Venus Ford, LLC.

Ford to Offer Lane Keeping System on New FusionFord provided information about the upcoming second-generation Fusion’s safety systems, which will include the automaker’s Lane Keeping System (LKS). Ford intends to roll out this system on a range of vehicles in the coming years, including the new Escape.

LKS uses a digital camera mounted on the windshield that allows the Fusion to watch the road ahead to detect an unintentional lane departure. The system has three levels of assistance available to the driver depending on what is happening: Lane Keeping Alert, Lane Keeping Aid, and Driver Alert. The driver has to activate LKS.

Once the vehicle reaches a speed faster than 40 mph, and lane markers are clearly visible on the road, an icon that looks like a car between two lanes lights up green in the instrument cluster to indicate the system is enabled. LKS uses the vehicle’s new electric power-assisted steering (EPAS) to provide alerts to the driver.

When the system detects the car is approaching the edge of the lane without a turn signal activated, the steering wheel vibrates. If the driver doesn’t respond and continues to drift, the lane icon turns red and EPAS will nudge the steering and the vehicle back to the center of the lane. If the car continues to drift, the vibration is added again along with the nudge. The driver can overcome assistance and vibration at any time by the steering wheel, accelerating, or braking.

BETWEEN THE LINES

1720 Paramount Drive | Waukesha, WI 53186 | 262-513-3300 | www.ewaldfleetsolutions.com

Looking for a Used Vehicle?You know that Ewald Fleet Solutions offers a vehicle management program, but did you know that we can also assist you in purchasing or leasing your next personal vehicle?

Ewald Fleet Solutions can find you... ...the vehicle you want We have access to all makes and models ...at a discounted price You will benefit from our purchasing power ...with less hassle You will be able to avoid the hassle of shopping all over town

The first step in making your next used vehicle purchase more enjoyable is to

contact Ewald Fleet Solutions!

(262) 513-3300 www.ewaldfleetsolutions.com

1720 Paramount Dr I Waukesha, WI 53186

INSIGHTINSIGHT

New Safety Systems to Include 360° Collision AvoidanceTechnology developers are creating a radar network that will detect oncoming vehicles from the front, side, or rear of the vehicle. At each corner of the vehicle, a radar unit monitors objects and transmits the data to a central computer. If TRW’s unit detects a possible collision straight ahead, it could automatically hit the brakes. If it detects one from the side or rear, it would prepare the air bags to deploy. The unit will probably enter production around 2015.