contents GLOBAL FLEET MARKET CONDITIONS Q2 2017 MARKET OVERVIEWS: NORTH AMERICAN OPERATING COSTS STABLE FOR 4TH CONSECUTIVE YEAR GM KOREA GROWS FLEET PRESENCE IN SOUTH KOREA MEXICAN FLEET MARKET REMAINS RESILIENT DURING UNCERTAIN TIMES 2017 TO BE A STRONG YEAR FOR FLEET SALES IN CANADA THE ORIGIN OF GLOBAL FLEET MANAGEMENT 4 3 North American Fleet Operating Costs Remain Stable for Fourth Consecutive Year The stability of fuel pricing over the past 36 months, along with ongoing improvements in vehicle fuel economy, have been the key factors keeping leet operating costs relatively lat. SPECIAL REPORT: GLOBAL FLEET MARKET CONDITIONS Q2 2017 8 4 The State of the Commercial Fleet Market in South Korea The corporate leet sector in South Korea accounts for 18-20% of total auto sales, with most sales going to local brands. However, GM Korea is growing its leet presence, with commercial sales now representing 9% of total sales. 8 Mexico Fleet Market Resilient in Face of Uncertainty Calendar-year 2016 auto sales were strong, but there are headwinds buffeting 2017 auto sales, in particular, the risk of higher interest rates, a weaker Mexican peso vis-à-vis the U.S. dollar, and uncertainty with NAFTA. 12 Fleet Market in Canada Driven by Both Tailwinds & Headwinds In 2016, Canada experienced record auto sales. But lower oil prices have impacted the economy of Western Canada, while low interest rates fueled new-vehicles sales. The forecast is for strong leet sales in CY-2017. 12 16 The Origin of Global Fleet Management Multinational corporations have operated vehicle leets around the world since the 1950s, but these country-speciic leets were typically managed independently by a country manager, often with little oversight by the corporate headquarters. 16 2 AUTOMOTIVE FLEET I Q2 2017 PHOTO: ©ISTOCKPHOTO.COM/CHOMBOSAN
Automotive Fleet May 2017: Page 2
