Automotive Fleet

SEP 2013

Magazine for the car and truck fleet and leasing industry

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● Monthly allowance: A fxed monthly amount; sometimes a percentage of the executive's salary. ● Dollar value: Rather than a fxed monthly allowance, the driver may choose any vehicle he or she likes with a set price cap. Selectors are not as common for executive feets as are allowances (monthly or unit cost) because these vehicles are usually purely compensatory while allowances provide the executive with the fexibility he or she needs to drive his or her vehicle of choice. If the feet manager has the ability to determine the method used, the monthly allowance or unit cost programs will help set feet manager relationships with executives on the right foot. In the event that the feet manager inherits a selector for executives, it is a good idea to provide the widest choice possible. Even with a large number of executive vehicle selections available, it will still be manageable. Replacement schedules for executive feets can be as short as yearly, and as long as the normal feet replacement policy (time/mileage algorithm). Because executive vehicles are generally luxury, highline models, the depreciation curve is not as steep as it is for the general feet, so an annual replacement with proper amortization, shouldn't be a problem. Prepare for the Headaches So, what are the headaches that can plague the feet manager who must manage executives' vehicles? ● Personalities/egos: It's difcult enough for a feet manager to have to deal with a senior executive in the regular course of doing business; it's more difcult still to have to deal with something as personal and valued as a company car. Executives, by their very nature, are strong willed and even use their status to bully subordinates. Tis can make a feet manager's life miserable. ● Secretaries/administrative assistants: Most senior executives at the C-level almost always have someone who handles their day-to-day schedule, screening calls and holding back visitors. Dealing with them can be even more frustrating and intimidating than dealing with the executive they work for. While they may lack authority as it pertains to the company's operations, they do have complete authority, regarding their supervisor's time. ● Scheduling: Te feet manager has a primary job, which is managing the feet. It is a demanding job and ofen entails travel, meetings, conference calls, and numerous other responsibilities. Getting a feet manager and an executive together can be a daunting task, especially for something as routine as service maintenance or dealing with a recall. ● Selector versus dollars: An executive vehicle is a very personal perk. Executives, the same as anyone else, have strong likes and dislikes as it pertains to the vehicle they drive. When feet managers are compelled to use a selector, choosing the vehicles that go on it can create a great deal of angst and frustration for both parties. AF SEPTEMBER 2013 I AUTOMOTIVE FLEET 53

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