Fleet News

Internet-based bidding exercise behind GM global fleet deal

GENERAL Electric has negotiated a global deal for its fleet of about 20,000 company cars using a reverse, e-business auction, writes FNN sister title Fleet News Europe.

Ford won the initial three year contract, thought to be worth Euros 400 million at showroom prices, in conjunction with its other brands Volvo, Jaguar, Land Rover, Mazda, Lincoln and Mercury. GE Capital Fleet Services handled the negotiations on behalf of GE in an exercise that demonstrated the capabilities of e-business in the fleet sector, according to Daniel Farrar, president and chief executive of GECFS.

The leasing and fleet management specialist carried out a detailed electronic request for quotation with manufacturers to establish the terms of the contract covering the United States, Europe and Asia.

GECFS then completed the purchasing process using the reverse auction system developed by GE Capital, watching manufacturers bid for the account minute-by-minute in real time by lowering their prices.

'This is a terrific example of using e-technology in the fleet world,' said Farrar. It worked for GE and we would encourage other companies to do the same,' he said.

Ford has strengthened its ability to negotiate global fleet contracts with the involvement of its other brands within Global Fleet Solutions, the division it created to serve international fleet clients.

GFS global co-ordinator Armand Addonizio said four trends were motivating multi-national companies to consider global fleet purchasing arrangements.

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