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FROM THE POSTBAG 14 YORKSHIRE reader asks for comment on

10th January 1964
Page 86
Page 86, 10th January 1964 — FROM THE POSTBAG 14 YORKSHIRE reader asks for comment on
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Which of the following most accurately describes the problem?

his vehicle replacement policy. He operates a fleet of 25 vehicles of varying capacities up to 12 tons, yet every vehicle is replaced every third year. As an example, his mass-produced 7-tonners will have run 54,000 miles during that period. He claims that the part-exchange allowance is such that these vehicle.v can be replaced at an approximate cost of 1750 and, as a result, depredation, tyres and almost all the maintenance cost £5 a week. The maintenance not included in this figure, this operator says, is greasing, oil change, topping up of battery, gearbox and rear axle. Moreover, he concludes, under his scheme one-third of the fleet is always under warranty.

CHANGING trends in the approach to the subject of depreciation and vehicle replacement have been the subjeCt of several articles in the series " Plann:ng for Profit" and this operator's letter exemplifies this change. Whilst the increasing prominence of massproduced commercial vehicles at an economic irritial pr:ce is self-evident on the road, the opportunity which these provide for a new approach to depreciation and vehicle replacement is not always fully realized.

In addition to any cost benefits which may come from more frequent replacement, other factors have to be considered. One of these is the limited supply of skilled labour on which a comprehensive maintenance scheme (essential to the successful operation of vehicles over long periods) must inevitably depend. Moreover, the supply of such labour seems likely to diminish rather than increase. But even if labour presents no problem, however efficient a maintenance scheme may be, it is inevitable that a vehicle must be withdrawn from service for increasingly longer periods as it gets older. Consequently, having regard to labour supply and vehicle availability, some operators contend that even if the higher depreciation costs resulting from more frequent vehicle replacement are not completely offset by lower maintenance costs, the additional availability of vehicles for service nevertheless justifies such a policy,

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