NAFA, The Association for
Professional Fleet Management

FOR IMMEDIATE RELEASE

Contact: Joe Dunne
National Association of Fleet Administrators, Inc.
voice 732.494.8100, x 25
fax 732.494.6789
jdunne@nafa.org
www.nafa.org

Powerful Message Shakes Fleet Managers at FMI-LEG:

“It’s Time for A Model Change!”

ISELIN, NJ May 17, 2006 – The global auto industry is in need of a major model change and a complete re-engineering in order to fix everything that is wrong with it, according to industry expert Graeme P. Maxton.  Maxton was a featured speaker at NAFA’s recent FMI-LEG Conference & Expo, held May 6-9, 2006, in Orlando, Florida.  His remarks, before a packed house of more than 800 fleet professionals, had fleet managers looking to the future and wondering what the auto industry would look like.

“China is not going to be the sole answer to the auto industry’s future,” Maxton said.  “Despite hopes that free trade in China will open up a huge market for US auto manufacturers, the truth is – and we have to remember – that China is a Communist country and is still very much government-run.  Yes, there are great strides being made in China, but I would caution anyone from investing too heavily there in the short term.”

Maxton’s message was a sobering one, in which he warned that the old way of doing business is being threatened by social, ecological and environmental roadblocks.  He said sweeping changes are necessary for the industry to merely survive.  Major points included:

• The automotive industry is enormously important to the global economy, accounting for 11 percent of the developed world’s gross domestic product, or one job in nine.

• Most of the industry has run out of growth, and almost all of the biggest car companies are facing decline in the next 10 years.  Until 2010, the developed countries will continue to dominate, but beyond then the Asian market will surpass them.

• The current method in which cars are sold and maintained is overdue for a revolution.

• The industry itself has become a financial disaster area, because the great majority of vehicle manufacturers have been devouring shareholder value for years. 

Maxton is an internationally renowned authority on the global automotive industry.  He appears regularly on television and radio around the world, offering thought-provoking insights into the machinations of the automotive industry. 

The National Association of Fleet Administrators, Inc. (NAFA) is a not-for-profit, individual membership professional society serving the needs of Members who manage fleets of automobiles, SUVs, trucks, vans and a wide range of specialized mobile equipment for organizations in the United States and Canada.    NAFA’s Full and Associate Members are responsible for the specification, acquisition, maintenance and disposal of more than 3.5 million vehicles – including in excess of 1.1 million trucks. 

Graeme Maxton delivers sobering message at NAFA's 2006 FMI-LEG Conference