RUNNING COSTS.

Auckland Star, Volume LXXI, Issue 84, 9 April 1940, Page 12

RUNNING COSTS.

LIGHT DELIVERY VANS

MODERATE PERFORMANCES ADVISED.

IMPORTAIVCE OF EFFICIENCY.

An interesting paper, read before close on a thousand engineers at the recently-

held annual session of the U.S.A. Society of Automotive Engineers, at Detroit, covered the subject of multi-stop delivery motor vehicles, a matter of particular interest to business houses in this country, judging by the increasing popularity of light-weight motor vans for delivery work. The need for designing such utility vehicles for economical operation was stressed. In businesses devoted to inexpensive commodities, such as milk, bread and meat, the delivery cost may be equal to, or even exceed, the profit, while a saving of 10 per cent on delivery costs may possibly double profits. According to the author of the paper, the running cost of the vehicle per mile was formerly considered the all-import-ant factor by many operators, but it is now realised that many cost items, such as labour, insurance, registration fee and jraraginjr, are the same for all vehicles of the same nominal rating, and that the efficiency of the vehicle in delivery work is therefore highly important. The author also contended that, in order to keep down petrol consumption and to save transmission wear, these multi-stop vehicles should be designed for moderate performances. Weight distribution should be such that under full load there is considerably more than 50 per cent on the rear tyres, as otherwise the traction with an empty or lightly-loaded vehicle will be inadequate, and excessive rear tyre wear may result, depending on how the vehicle is driven.

An analysis of the cost of multi-stop delivery, covering the fleet of vehicles operated by the U.S.A. United Parcel Service Company, disclosed that the wages of drivers and helpers amounted to 67.3 per cent of the cost of delivery. Insurance represented 8.6 per cent, repairs 8.8 per cent, depreciation on vehicle 6 per cent, petrol 4.5 per cent, garaginjr 2.2 per cent, registration fee and license 1.4 per cent, tyres 0.9 per cent and oil 0.3 per cent.

The percentage quoted would not parallel in all respects those involved in this country for similar services .because of the greater initial cost of the vehicle, hijrlier registration fees and dearer petrol and oil, but for all that, the selection of the right type of motor vehicle with due regard to the work it has to perform is a matter of vital importance when economical operation is the objective.