“New OEM incumbents want to heavily redefine the status quo in automotive,” said Pedro Pacheco, vice president of research at Gartner. “They brought new innovations that simplify production costs such as centralised vehicle architecture or the introduction of gigacastings that help reduce manufacturing cost and assembly time, which legacy automakers had no choice to adopt to survive.”

Gartner believes that by 2027, next-generation battery electric vehicles (BEVs) will be less expensive to construct than similar internal combustion engines (ICEs). As OEMs continue to disrupt their manufacturing operations in tandem with product design, BEV production costs will fall far faster than battery costs in the next years.

“This means BEVs will reach ICE cost parity much faster than initially expected, but at the same time, it will make some repairs of BEVs considerably costlier,” said Pacheco.

Gartner projects that by 2027, the average cost of an EV body and battery catastrophic accident repair would rise by 30 percent. As a result, automobiles involved in an accident may be more likely to be written off since the repair costs more than the residual value. Similarly, more expensive collision repairs may result in higher insurance rates or the refusal of insurance companies to cover specific automobile models.

The cost of EV repair cannot be underestimated

According to Gartner, rapid reductions in BEV production costs should not come at the expense of increasing repair costs, since this may result in customer backlash in the long term. New means to manufacture a BEV must only be used in conjunction with processes that assure minimal repair costs.

“With the perceived promise of easy gains, many start-ups gathered into the EV space – from automakers to EV charging – and some are still heavily dependent on external funding, leaving them particularly exposed to market challenges,” said Pacheco.“ In addition, EV-related incentives are being progressively phased out in different countries, which makes the market more challenging for incumbents.”

Gartner predicts that by 2027, 15% of EV companies founded since the last decade will be acquired or bankrupt.

“This does not mean the EV sector is crumbling. It is simply entering a new phase where companies with the best products and services will win over the remaining,” said Pacheco.

This implies that OEMs success in this market is now significantly influenced by their ability to meet the demands of early mass EV adopters.

As ever, the topic of EV and fleet electrification is a hot topic at the moment. Many of our clients are constantly chasing ESG targets with the TCO cost of EV and the impact of fleet budgets overall. Costs are clearly coming down for EV production but getting your fleet strategy in place is very important to ensure a sustainable and efficient fleet.

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Touchscreens inside cars are becoming more widespread. Basic automobile physical controls are increasingly being replaced by icons on touchscreens rather than physical buttons.

While utilising a touchscreen is simple and straightforward to use, it does require the user to take their eyes from the road for a little period of time.

This has raised concerns for Euro NCAP, an independent safety authority for the automobile industry that evaluates cars and gives a five-star safety rating system to assist users in comparing vehicles and choose the safest option for their requirements.

As of January 2026, this safety agency will implement new regulations requiring the cars it evaluates to have physical controls for fundamental tasks in order to achieve the maximum five-star safety certification. Cars will need to employ buttons, dials or stalks to control danger warning lights, indicators, windscreen wipers, SOS calls and the horn.

This will undoubtedly be an issue for many automobile manufacturers, who have gradually included more features on their touchscreen interfaces, not least because they are less expensive to make than conventional buttons and knobs.

“The overuse of touchscreens is an industry-wide problem, with almost every vehicle maker moving key controls onto central touchscreens, obliging drivers to take their eyes off the road and raising the risk of distraction crashes,” said Matthew Avery, director of strategic development at Euro NCAP.

It is not illegal

Although Euro NCAP’s safety criteria are not legally binding, they are strongly supported by various EU governments. Automakers such as Tesla, Volvo, Volkswagen, and BMW take these safety ratings seriously, utilising them to highlight the safety of their products.

Also, while drivers and automobile manufacturers may maintain that touchscreens do not cause distractions, evidence suggests otherwise. According to a research done by the American Automobile Association (AAA), car entertainment systems divert drivers’ eyes and attention away from the road and take their hands off the wheel for potentially dangerous periods of time.

While drivers and automobile manufacturers may maintain that touchscreens do not cause distractions, evidence suggests otherwise. According to a research done by the American Automobile Association (AAA), car entertainment systems divert drivers’ eyes and attention away from the road and take their hands off the wheel for potentially dangerous periods of time.

The rise of touch screens

Some manufacturers, such as Tesla and Volkswagen, have built a reputation for hiding essential car functions behind touch-sensitive interfaces. There are plenty of complaints about such features, but equipment makers continue to promote touchscreen interfaces since they are less expensive to build than conventional buttons and knobs.

Even though Tesla reportedly supports NCAP’s stance, they are taking this one step further with the removal of the indicator and drive selector stalks. There are mounting concerns that cost cutting exercises like this can add to driver distraction. The issue concerns roundabouts. As the wheel rotates and you need to signal to leave the roundabout, the buttons will be near the top of the turn. This will make it more difficult to locate and press the buttons while steering. What do you think?

The study found that drivers who used in-vehicle technology such as voice-activated and touch-screen features were visually and cognitively distracted for more than 40 seconds while completing tasks. According to their findings, taking your eyes from the road for only two seconds increases the danger of a collision.

Driver safety is a key topic for all fleets. Read more about how you can create a driver safety culture. It is essential that however vehicle technology changes and then adapts to new thinking, the driver has to be made aware of any potential risks associated with new vehicles. There has to be a balance between new technology, cost saving exercises, driver convenience and ultimately, safety.

The post New rules could see more physical controls to ensure top safety rating appeared first on Fleet360.

However, a good policy can be set up by measuring TCO. The Total Cost of Ownership, the costs that a company car actually costs the company over its useful life. This is measured as indirect and indirect costs.

TCO Types

There are various concepts of TCO in the market. TCO1, TCO2, commercial TCO, etc… the most correct approach to a TCO is the definition of the TCO included in the Act of 19 March 2019 regarding the statutory mobility budget (TCO2 plus additional mobility costs).

This TCO (TCO2) mainly consists of 3 (car) building blocks, possibly supplemented by a fourth to arrive at the mobility budget.

The first building block

This includes the depreciation costs, financing costs, maintenance costs, tires, insurance, etc. of the company car. If the cars are not leased, a depreciation of 20% per year must be taken into account.

The second building block

This is the energy cost of the car. This is influenced by the annual kilometres driven, the consumption of the car and the fuel cost in eur/litre or eur/kwh.

The third building block

This includes the tax cost of the company car. It is not uncommon for it to be found in other parts of the income statement.

It includes the CO2 contribution that is influenced by the propulsion of the car and the CO2 emissions. Furthermore, this also includes the additional tax cost due to the effect of the disallowed expenses: the car expenses that may be deductible to a limited extent and the tax effect of the employer’s part of the benefit in kind, being 40% of the BIK if a fuel or charging card is provided.

This effect can be seen as follows:

Example

Suppose 100 revenues versus 100 costs means accounting result 0 and therefore no (corporate) taxes to pay. Suppose that these costs are only 50% tax deductible, then, although accounting result is 0, the tax result is 50. For example, 25% corporation tax is due on this. Consequently, the cost to the company is 100 plus 12.5 taxes.

The leasing companies often use the commercial TCO that also takes into account the tax effect of the 100 costs, i.e. if the 100 costs were not there, 25 more tax had to be paid, so the commercial TCO is 112.5 minus 25, so still 87.5.

We describe the fourth building block when we discuss the mobility budget.

TCO as a measuring tool

If you map out the TCO of the fleet every year, you as CFO will know which direction the costs are going and which cost (or TCO) components deserve your special attention.

To calculate the TCO, you need data. Data from the leasing company, lease costs, insurance costs, exceptional costs, the CO2 emissions of the cars, type of drive, data related to actual kilometres driven, fuel costs, consumption of the charging sessions, shifts in the fleet, etc.

Once you know what data is needed, but more importantly what data you can access with sufficiently high quality, you can start making your “baseline calculation”. If some data is not available or does not have the necessary quality, assumptions can be used. An example of this is the actual fuel consumption, which can be calculated on the basis of the actual kilometres and the CO2 emissions.

At regular intervals, e.g. semi-annually or annually, you can request new data and map out a trend in the TCO components. This allows you to monitor your fleet and the related costs and to make adjustments where necessary.

TCO as a basis for change

Change needs to be measured. TCO serves as a measuring instrument to measure results. However, the TCO also serves as a basis for implementing changes.

Electrification

If you want to compare power trains, a TCO (TCO2) approach is recommended, including tax costs. After all, it is precisely the tax building block and, to a lesser extent, the energy building block that, as a subsidizing effect, can compensate for the (still) more expensive purchase cost, possibly translated into a more expensive lease cost, of an electric car. 

In most cases, the TCO for an equivalent electric car is at least equal to or less than the TCO of an equivalent driving diesel car. Only in the small car segment can this sometimes be a challenge because the battery cost weighs heavily in the relative cost of the car.

This trend in which the TCO of an electric car is cheaper than that of its petrol, diesel or even plug-in hybrid equivalent will continue due to a more expensive taxation of non-zero-emission (NZE) cars in the coming years with 0% tax after from 2026, a lower residual value of these NZE cars and increasingly cheaper electric cars. Electrification is a must!

Mobility budget– the ‘Fourth Block’

If you want to switch to a mobility budget, you must by definition and legally use the TCO as a basis. This includes the three building blocks, linked to the company car, as discussed earlier, and a fourth building block of costs linked to other costs of the car or mobility that the employer (additionally) takes care of.

Examples of this are bicycle allowances or allowances for the use of public transport if a company car user can claim these on top of his company car. It also concerns the deductible or end of lease cost, damages, costs of (external) fleet management, etc., that the employer takes charge of in the context of the use of the company car. These costs may be added to the TCO as the basis for the mobility budget.

After all, the mobility budget is equal to the TCO (building block 1-4) of the company car that the employee could choose and that the employee exchanges for a mobility budget. In theory, this is an individual approach in which at the beginning of the year following the actual costs of the mobility used through the spending of the mobility budget must be compared to this mobility budget. If there is a surplus, the employee can receive the difference in favourably taxed (38.07%) cash. If there is a shortage, the employee must pay it back.

It is also allowed that the mobility budget per car policy category is based on an average TCO of the cars in that category or on the basis of the reference cars offered in that category. The advantage is that these are averages and in principle, company-wise, should reflect the total TCO or mobility budget of the company. SO in principle one can argue that no corrections have to be made annually (actual vs budget). Which, in principle, can mean significant savings in terms of administration.

Of course, in addition to a correct introduction of the mobility budget, one must also meet the set formal requirements, mobility policy, application by employee, mobility contract, description of the method used and specific mentioned exclusions of any other compensation, e.g. collective transport, etc. This requires the necessary attention.

TCO trends

If we take a general overview of the above exercise for the period 2021-2023, we can draw a number of conclusions:

Leasing costs

Leasing costs have risen considerably over the past year; Purchase prices of cars have risen, fleet discounts have generally decreased, residual values for certain drives have decreased, inflation for maintenance costs and higher insurance costs. Increases of 15 to 20% are no exception.

As a result, within the same car policy budget, an employee could no longer order the same car at the end of 2022 than the employees, within the same car policy category, a year ago. This can lead to dissatisfaction…. Consultation with your HR department is recommended.

Energy costs

Energy costs have also risen significantly, mainly due to the war in Ukraine. On the one hand, we see a downward trend in the number of kilometres driven due to increased working from home compared to the period before Corona. This trend seems to have levelled out and seems to be reversing some of the fact that employees are going back to the office more (social contact, heating costs, etc…). On the other hand, the price of fuel and electricity has risen.

All of this leads to an increase in energy costs. Presumably, your company will take the bots with the bump here. Perhaps further electrification of the vehicle fleet or the introduction of mobility solutions can offer solace. 

Tax costs

The tax costs mainly consist of 3 components: the CO2 contribution, the tax effect of the disallowed expenses, the tax effect of the employer’s part of the benefit in kind if a fuel and/or charging card is provided.

These costs have also increased at the beginning of 2023: the indexation of the CO2 contribution and the limited tax deductibility of fossil fuel costs to 50% for plug-in hybrid vehicles. For non-zero emission (NZE) vehicles, these tax costs for cars ordered from 1 July 2023 have increased significantly.

From 1 July 2023, the tax deduction is limited over time for NZE cars ordered from 1 July 2023. Another 100% in 2023 and 2024, a maximum of 75% in 2025, 50% in 2026, 25% in 2027 and 0% in 2028. This 25% less tax deduction can quickly have an effect between 50 and 100 euros per month, depending on the size of the car and its lease price.

The CO2 contribution is also multiplied by a factor of 2.25 for NZE cars ordered from 1 July 2023. NZE cars will be ordered from 1 January 2025 by a factor of 2.75, from 2026 a factor of 4 and from 2027 by a factor of 5.5. Without taking into account the annual indexation, this means at least an increase from EUR 28.17 per month to +/- EUR 64 per month in 2024 and 2025 for a plug-in hybrid vehicle.

The tax effect of the employer’s part of the benefit in kind increased slightly due to a further decrease in the reference CO2 emissions and the minimum benefit in kind (EUR 1540 moving to 1600 for 2024). This has a rather marginal effect (e.g. 2.9 eur per month for electric vehicles).

TCO has risen considerably… What should I do?

It is important to follow these TCO evolution(s) and to perform an internal benchmark. What is the increase in the lease price of the most popular models within a car policy category? This ratio can then be used to discuss an acceptable increase in the car policy budget internally and to justify it in terms of budget.

At a time when attracting the right people can be a challenge, it seems logical not to offer smaller cars (or less equipped ones).

Alternatively, one can switch to electric cars and take a closer look at the lease parameters, term and (car policy) mileage. One can also decide to work with a car list in order to monitor the TCO “behind the scenes” and keep it under control or tight.

Mobility solutions and the legal mobility budget are the ultimate means of combining flexibility and budget control. Flexibility because by definition it is individually filled in by the employee on whom the mobility budget is spent (or not spent) and control since one has a budget that must be compared with the actual spent of mobility costs at the end of the year. In other words, transparent and budgeted costs in advance.

Supplier strategy, process optimisation and data transparency are further buzz words for fleet in 2024.

Conclusion

As a CFO, you cannot ignore the concept of TCO!

TCO and insights into it, will give you the opportunity to make and substantiate changes. It will allow you to make correct comparisons and react correctly to cost and market trends.

Consequently, TCO is an unavoidable concept for a good mobility policy.

Measuring is knowing!

Call us and lets talk.

Read more on TCO

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Fleet manager challenges

The fleet industry has once again had a challenging year. Our clients have had several various challenges in their role. Do you recognise any?

Cost control: Fleet managers need to optimise the fleet expenses, such as fuel, maintenance, insurance, and depreciation, while meeting the operational and customer demands. They also need to deal with the impact of the Covid-19 pandemic on the fleet industry, such as supply chain disruptions, vehicle shortages, delivery delays, and changing customer needs. There is also the continued threat of additional pandemics that might be on the horizon.

Driver Mobility: The changing driver patterns now means offering your employees full flexibility in fulfilling their personal mobility needs is key. The creation and understanding of mobility budgets is critical.

Driver shortage: Fleet managers need to recruit and retain qualified and skilled drivers, who are essential for the fleet performance and customer satisfaction. They also need to provide adequate training, safety programs, and incentives to motivate and engage the drivers.

Safety management: Fleet managers need to ensure the safety of the drivers, vehicles, and other road users, as well as comply with the regulatory and legal requirement. They also need to monitor and prevent risky driving behaviours, such as speeding, distraction, fatigue, and impairment, using technology and data.

Regulatory compliance: Fleet managers need to adhere to the emission standards, safety inspections, driver training, and reporting requirements, as well as keep up with the changing rules and regulations in the fleet industry. They also need to adopt electric vehicles and alternative fuels to reduce the environmental impact and fuel costs of the fleet.

Technology and innovation: Fleet managers need to leverage the latest technology and innovation, such as telematics, artificial intelligence, autonomous driving, and connected vehicles, to improve the fleet efficiency, productivity, and customer service. They also need to integrate and analyse the data from various sources and systems to optimise the fleet performance and outcomes.

“The fleet topic has been high on the agenda in 2023 with many of clients carrying out some key strategic changes and benchmarking to fully understand the health of their car policy and how robust it is for 2024 and beyond.”

Hans Damen, Partner

Your fleet strategy for 2024

It is essential to know your starting point for 2024. Did your 2023 plan achieve its primary objective? If it did, then how do you maintain that momentum. If it didn’t, what can you do differently for 2024. We all know how things can change in 12 months – so it is always good to fully understanding your local and global fleet position to see how ‘healthy’ it really is:

• Conduct a fleet analysis to assess the current state of the fleet, such as vehicle inventory, utilisation, lifecycle, costs, and environmental impact
• Update or check that your fleet policy is for purpose in the changing landscape. Define the roles and responsibilities of the person or department responsible for fleet, other stakeholders, as well as the rules and guidelines for fleet operations, such as vehicle selection, acquisition, maintenance, fueling, and disposal
• Implement a fleet optimisation plan to identify and execute the best practices and solutions for fleet improvement, such as right-sizing, vehicle replacement, preventive maintenance, driver behaviour monitoring, and fuel management
• Monitor and evaluate the fleet performance and outcomes, such as cost savings, efficiency gains, safety records, and customer feedback, using key performance indicators (KPIs) and data analytics
• Review and update the fleet strategy periodically to ensure its relevance and effectiveness, as well as to incorporate new trends and challenges in the fleet industry

We will report back on The Fleet Europe Days conference to see what key topics arose and if these should be on your fleet strategy for 2024.

If you would like to review your car policy or future mobility strategy and get the transparency to make decisions on the right basis, do not hesitate to contact us.

The post Your fleet strategy for 2024 appeared first on Fleet360.

A PHEV would soon become at least 40 eur more expensive per month, rising to 150/200 eur per month towards 2026. The end of the PHEV?

Until TCOFleet, (credit where credit is due) questioned the interpretation of the calculation of the minimum CO2 contribution. This led to a written question to the relevant authorities and they confirmed that one must first calculate the amount of the CO2 contribution using the normal formula with new factors to then look at the evaluation against the minimum amount of 31.34 eur/month (for 2023).

For a petrol PHEV of e.g. 30 gr CO2, this means:

[(30 x 9 EUR) – 768] / 12 x 1.5046 x 2.25 = -140.49 eur but with a minimum of 31.34 eur.

Based on the published table, we learn that one pays more than the minimum from 79gr of CO2 emissions. This means that all PHEVs pay the minimum contribution of 31.34 eur per month (until further notice and like the full electric cars).

So nothing to worry about?

Surely so because from 2025 a maximum tax deduction of 75% applies, from 2026 50%, 2027 25% and 2028 0% for non-zero emission vehicles ordered before 1 January 2026.

But what does this mean financially?

Take a look at the following example:

With the deduction limitation to a maximum of 75%, the (average) car in the example has an impact of +/- 5.4% of the TCO or 66 eur per month (all other tax costs not indexed). A further deduction limitation in 2026, 2027 and 2028 has a doubling, tripling and quadrupling of the additional cost. Spread over a 5-year term (July 2023- July 2028), this gives an average monthly extra cost of +/- 107 eur per month.

The TCO increases from 1243 eur per month in July 2023 to 1511 eur in July 2028 or an average TCO of 1350.20 eur per month over the 60-month term.

Is it better to have a shorter lease term?

A shorter lease term usually results in a higher lease price. In our example:

Shortening the lease term to 48 months increases the lease price to 936 eur per month (in this example) but reduces the additional tax cost to an average of 78 eur per month. The TCO increases from 1282 eur per month in July 2023 to 1490 eur in July 2027 or an average TCO of 1372 eur per month over the 48-month term.

On average, the TCO is 22 eur per month more at 48 months than at 60 months. In this example, it is better to lease at 60 months. It is worth setting up this exercise for the chosen car list or available budgets.

Is PHEV more expensive?

107 eur more expensive per month in our example at 60 months is not insurmountable for those who (mentally) prefer range comfort or those who cannot recharge at home and drive quite a lot of kilometres and still want a tax-friendly car. After all, the benefit in kind due to private use of the PHEV remains minimal or close to the minimum of 1540 eur (for 2023, to be “indexed” for future years).

Moreover, we analysed that an equivalent electric car (e.g. BMW i4 Gran Coupe eDrive35 286hp) is on average +/- 60/70 eur more expensive in lease price per month, albeit with a slightly lower cost for energy.

This means that, until electric cars get closer to the lease prices for plug-in hybrid cars, the TCO for both will be quite close, with a slight advantage for the full electric car (in our example).

Long live the PHEV?

Yes, if the PHEV is used optimally. That is, it runs mainly on electricity and only on petrol/diesel to a limited extent (maximum 30% is put forward as a benchmark).

The electric range of the latest PHEV models goes up to 80 km and above, for smaller cars it’s 50 km and above. This means that most trips (one-way travel) should not exceed 50km with the ability to charge at home and at work. For example, ideal profile is a person who lives less than 50km from work, can charge at home as well as at work. This person will only need to use non-electric mode for longer professional or private journeys, resulting in an optimal energy cost.

If the company fails to profile this correctly in its choice of power train or to include this charging rule in its car policy and/or not to monitor it, it will end up with a substantially higher fuel cost than originally budgeted. Consumptions six times higher, than stated consumption figures by the car manufacturer, are no exception resulting in an exploding TCO.

Not the right profile? Then opt for full electric if the charging options are there. If they are not and many kilometres are driven with trips over 50km, then still opt for diesel or hybrid (not PHEV).

Long live the PHEV for the right usage profiles and charging attitude!

If you would like to review your car policy or strategy with regard to drives or your ideas with regard to your mobility solutions and get full transparency to make decisions on the right basis, do not hesitate to contact us.

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The Evolution of Fleet Management

Fleet management has come a long way since its inception. Traditionally, it involved overseeing a company’s vehicle fleet, ensuring timely maintenance, and managing driver schedules. However, as technology advanced and the business landscape became more competitive, the focus gradually shifted towards optimizing fleet performance.

With the advent of data analytics, fleet managers gained access to a wealth of information that could revolutionise their operations. By leveraging this data, they could identify patterns, uncover inefficiencies, and make data-driven decisions. This marked the beginning of a new era: mobility management.

Understanding Fleet Mobility Management

Mobility management encompasses a broader scope than traditional fleet management. Instead of merely focusing on individual vehicles, it takes into account the entire transportation ecosystem. It involves optimizing various mobility options, such as company-owned vehicles, public transportation, ride-sharing services, and even alternative modes like bicycles or scooters.

By adopting a mobility management approach, companies can ensure that their employees have access to the most efficient and cost-effective transportation options. This shift is especially crucial in urban areas where traffic congestion and environmental concerns are prevalent.

Embracing Data Analytics for Fleet Mobility

One of the key drivers behind the transition from fleet management to mobility management is the use of data analytics. Fleet data provides valuable insights into vehicle utilization, maintenance needs, driver behaviour, and operational costs. By harnessing this data, companies can optimize their fleet mobility in several ways:

1. Demand Forecasting

Data analytics enables fleet managers to analyze historical trends and predict future demand accurately. By understanding usage patterns, companies can adjust their fleet size, ensuring that they have the right number of vehicles to meet demand without excessive overhead costs.

For example, a delivery company can leverage data analytics to identify peak delivery hours and allocate resources accordingly. By optimizing their fleet size during busy periods, they can maximize efficiency while minimizing idle time and associated costs.

2. Route Optimization

Efficient route planning is crucial for fleet mobility. Data analytics can help identify the most efficient routes based on factors such as traffic congestion, road conditions, and fuel consumption. By optimizing routes, companies can reduce fuel costs, minimize travel time, and enhance customer satisfaction.

For instance, a transportation company can use data analytics to identify the most congested areas during specific times of the day. By rerouting vehicles away from these areas or adjusting delivery schedules, they can avoid delays and optimize their overall fleet efficiency.

3. Maintenance Management

Timely maintenance is vital to keep a fleet running smoothly and avoid costly breakdowns. Data analytics can monitor vehicle health, identify potential maintenance issues, and schedule preventive maintenance tasks proactively.

By leveraging data from sensors and onboard diagnostics, fleet managers can detect anomalies and receive alerts when vehicles require attention. This proactive approach minimizes unplanned downtime, reduces repair costs, and ensures that vehicles are in optimal condition, thus maximizing fleet availability.

4. Driver Performance Optimization

Drivers play a pivotal role in fleet mobility. Data analytics can provide insights into driver behavior, including speed, idling time, and fuel consumption. By monitoring these metrics, fleet managers can identify areas for improvement and implement driver training programs to enhance efficiency and safety.

For instance, data analytics can help identify drivers with excessive idling habits. Fleet managers can then provide targeted coaching to reduce idling time, resulting in significant fuel savings and reduced emissions.

Conclusion

The transition from fleet management to mobility management is driven by the power of data analytics. By adopting a holistic approach and leveraging data-driven insights, companies can optimize fleet mobility, increase operational efficiency, and drive business growth.

From demand forecasting to route optimization, maintenance management to driver performance optimisation, data analytics plays a pivotal role at every step of the journey. Embracing this analytical mindset empowers companies to make informed decisions, reduce costs, enhance customer satisfaction, and stay ahead of the competition in today’s fast-paced business environment.

We can help you to embrace the power of data analytics to unlock the true potential of your fleet mobility. It’s time to move beyond traditional fleet management and embark on a transformative journey towards mobility management. Contact us to see how we can help you to strategise for future mobility needs.

The post Moving from Fleet Management to Mobility Management appeared first on Fleet360.

In recent years, companies have been placing more emphasis on CSR. This is partly due to changing consumer attitudes, increased regulatory requirements, and the need to build long-term relationships with stakeholders. As part of their CSR efforts, companies are looking for ways to reduce their carbon footprint, minimize waste, and improve working conditions.

Fleet Management and CSR

Fleet management is an essential aspect of many businesses, particularly those that rely on transportation for their operations. Fleet managers are responsible for overseeing the acquisition, operation, and maintenance of a company’s vehicles. Fleet management can have a significant impact on a company’s CSR efforts.

By implementing sustainable fleet management practices, companies can reduce their environmental impact, lower costs, and improve their reputation. Fleet managers can use data analytics to monitor vehicle usage, optimize routes, and reduce fuel consumption. This can lead to significant reductions in greenhouse gas emissions and other pollutants.

Benefits of Sustainable Fleet Management

Sustainable fleet management can have numerous benefits for companies, including:

Reduced Costs

Sustainable fleet management can help companies reduce their fuel consumption, maintenance costs, and insurance premiums. By optimizing routes and reducing idling time, companies can also improve their efficiency and productivity.

Improved Environmental Performance

Sustainable fleet management can help companies reduce their carbon footprint and other pollutants. This can help companies comply with regulatory requirements and meet stakeholder expectations.

Enhanced Reputation

Companies that implement sustainable fleet management practices can enhance their reputation and brand image. Customers, employees, and investors are increasingly concerned about environmental and social issues, and companies that demonstrate a commitment to CSR can build trust and loyalty.

Steps to Achieving CSR Goals through Fleet Management

Achieving CSR goals through fleet management requires a systematic approach. Here are the steps that companies can take to implement sustainable fleet management practices:

Step 1: Set Goals

The first step in achieving CSR goals through fleet management is to establish clear objectives. Companies should identify their environmental and social impacts and set targets for reducing their carbon footprint, minimizing waste, and improving working conditions.

Step 2: Collect Data

Data is essential for implementing sustainable fleet management practices. Fleet managers should collect data on vehicle usage, fuel consumption, maintenance costs, and other relevant metrics. This data can be used to identify inefficiencies, optimize routes, and reduce environmental impact.

Step 3: Analyse Data

Data analytics can help fleet managers identify patterns and trends in their data. By analyzing data, fleet managers can identify areas for improvement and make data-driven decisions.

Step 4: Implement Sustainable Practices

Based on the data analysis, fleet managers should implement sustainable practices, such as:

• Optimise routes to reduce fuel consumption and emissions
• Use telematics to monitor vehicle usage and driver behavior
• Use eco-friendly vehicles, such as electric or hybrid vehicles
• Implement a maintenance program to reduce breakdowns and prolong vehicle life
• Reduce idle time to improve fuel efficiency

Step 5: Monitor and Report Progress

Fleet managers should monitor their progress towards achieving their CSR goals and report on their achievements. This can help companies demonstrate their commitment to CSR and build trust with stakeholders.

Case Study: UPS

UPS is a global package delivery and logistics company that is committed to sustainability. UPS has implemented numerous sustainable fleet management practices, including:

• Using alternative fuel vehicles, such as electric, hybrid, and natural gas vehicles
• Optimising routes to reduce fuel consumption and emissions
• Using telematics to monitor vehicle usage
• Implementing a maintenance program to reduce breakdowns and prolong vehicle life

As a result of these initiatives, UPS has achieved significant reductions in its carbon footprint. In 2019, UPS announced that it had achieved its goal of driving 1 billion miles in alternative fuel and advanced technology vehicles, which helped the company reduce its greenhouse gas emissions by 3.5 million metric tons.

UPS has also implemented a reporting system to track its progress towards achieving its sustainability goals. The company publishes an annual sustainability report that details its environmental and social performance, including its progress towards reducing its carbon footprint, improving working conditions, and promoting diversity and inclusion.

Conclusion

Corporate Social Responsibility (CSR) is an essential aspect of modern business operations. Companies have a responsibility to ensure that their activities are sustainable and ethical, with minimal negative impacts on the environment and society. Fleet management can play a significant role in achieving CSR goals, as it involves managing the vehicles that companies use for their operations.

By implementing sustainable fleet management practices, companies can reduce their environmental impact, lower costs, and improve their reputation. Achieving CSR goals through fleet management requires a systematic approach, including setting clear objectives, collecting and analyzing data, implementing sustainable practices, and monitoring and reporting progress. Companies that demonstrate a commitment to CSR can build trust and loyalty with customers, employees, investors, and communities, while also contributing to a more sustainable future.

The post The Role of Fleet Management in Achieving Corporate Social Responsibility Goals. appeared first on Fleet360.

The Cost of Poor Driver Safety

Before we dive into the importance of driver safety training, let’s take a look at the cost of poor driver safety. According to the National Safety Council, motor vehicle crashes cost employers $47.4 billion in direct crash-related expenses in 2019. This includes medical expenses, property damage, and lost productivity. Additionally, there are indirect costs such as increased insurance premiums, legal fees, and damage to your reputation.

Poor driver safety can also result in injury or death to your drivers or other road users. This can have a devastating impact on the affected families and communities, not to mention the emotional toll it can take on your drivers and their colleagues.

The Importance of Driver Safety Training

Now that we’ve established the cost of poor driver safety, let’s explore the importance of driver safety training. Driver safety training is an effective way to reduce the risk of accidents and ensure your drivers are equipped with the knowledge and skills they need to operate safely on the road.

Driver safety training can cover a range of topics such as defensive driving techniques, vehicle maintenance, and emergency response. By providing your drivers with this training, you’re not only reducing the risk of accidents but also demonstrating your commitment to their safety and well-being.

The Benefits of Driver Safety Training

So, what are the benefits of driver safety training? Here are just a few:

Reduced Risk of Accidents

The most obvious benefit of driver safety training is a reduced risk of accidents. By equipping your drivers with the knowledge and skills they need to operate safely on the road, you’re reducing the risk of crashes, injuries, and fatalities.

Increased Efficiency

When your drivers are trained in defensive driving techniques and vehicle maintenance, they’re more likely to operate their vehicles efficiently. This means better fuel economy, reduced wear and tear on vehicles, and lower maintenance costs.

Improved Morale

Investing in driver safety training demonstrates your commitment to your drivers’ safety and well-being. This can have a positive impact on morale, leading to increased job satisfaction and retention.

Reduced Costs

As we mentioned earlier, poor driver safety can be costly. By reducing the risk of accidents, you’re also reducing the associated costs such as medical expenses, property damage, and lost productivity.

How to Embrace Driver Safety Training in Your Workflow

Now that you understand the importance and benefits of driver safety training, you may be wondering how to embrace it in your workflow. Here are some steps you can take:

Step 1: Assess Your Current Driver Safety Culture

The first step is to assess your current driver safety culture. How are you currently promoting driver safety? What are your drivers’ attitudes towards safety? Identifying strengths and weaknesses in your current approach will help you determine what areas to focus on.

Step 2: Develop a Comprehensive Safety Program

Once you’ve assessed your current driver safety culture, it’s time to develop a comprehensive safety program. This program should cover all aspects of driver safety, from defensive driving techniques to vehicle maintenance and emergency response.

Step 3: Provide Regular Training and Refresher Courses

Training should be an ongoing process, not a one-time event. Provide regular training and refresher courses to ensure your drivers are up-to-date with the latest safety practices.

Step 4: Set Expectations and Hold Drivers Accountable

It’s important to set expectations and hold drivers accountable for their safety performance. This can include establishing clear safety policies and procedures, providing regular feedback and coaching, and implementing consequences for unsafe behavior.

Step 5: Foster a Culture of Safety

Finally, it’s important to foster a culture of safety within your organization. This means promoting safety as a core value and involving all employees in the effort to improve driver safety. Encourage open communication, reward safe behavior, and make safety a priority at all levels of your organization.

Conclusion

Driver safety training is a critical component of fleet management. By investing in driver safety training, you can reduce the risk of accidents, increase efficiency, improve morale, and reduce costs. To embrace driver safety training in your workflow, assess your current safety culture, develop a comprehensive safety program, provide regular training and refresher courses, set expectations and hold drivers accountable, and foster a culture of safety. Remember, your drivers are your most valuable asset, and their safety should always be a top priority.

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What is Fleet Data Analytics?

Before we dive into the benefits of fleet data analytics, let’s define what it is. Fleet data analytics is the process of collecting and analysing data from your fleet of vehicles to gain insights and make informed decisions. This includes everything from tracking fuel usage to monitoring driver behaviour.

The Role of Fleet Data Analytics in Fleet Management

Now that we know what fleet data analytics is let’s explore its role in fleet management.

Improved Fleet Efficiency

One of the main benefits of fleet data analytics is improved fleet efficiency. By tracking data such as fuel consumption and vehicle maintenance, you can identify inefficiencies and take steps to address them. For example, if you notice that one vehicle is consistently using more fuel than others, you can investigate the issue and make any necessary repairs. This can save you money in the long run and improve your bottom line.

Enhanced Driver Safety

Another important benefit is enhanced driver safety. By monitoring driver behaviour such as speeding or harsh braking, you can identify risky behaviour and take steps to correct it. This can lead to a safer driving environment for your drivers and reduce the risk of accidents on the road.

Increased Compliance

Fleet data analytics can also help you stay compliant with regulations and requirements. For example, if you operate in an industry that requires certain vehicle maintenance or inspections, you can use data analytics to ensure that your vehicles are up to date on these requirements. This can help you avoid fines and penalties for non-compliance.

Cost Savings

Ultimately, fleet data is key to uncovering potential cost savings for your business. By identifying inefficiencies, improving driver behaviour, and staying compliant, you can reduce your operating costs and improve your bottom line.

How to Embrace Fleet Data Analytics in Your Workflow

Now that you know the benefits of fleet data analytics, how can you embrace it in your workflow? Here are some steps to get started:

Identify Your Goals

The first step in embracing fleet data analytics is to identify your goals. What do you hope to achieve by implementing this across your fleet data sets? Do you want to improve fuel efficiency, enhance driver safety, or reduce operating costs? Once you have identified your goals, you can start to collect data and analyse it to achieve those goals.

Collect Data

The next step is to collect data from your fleet of vehicles. This can include everything from fuel consumption to driver behaviour. There are many different tools available to help you collect and analyse this data, such as GPS tracking and telematics devices. However, basic data such as GHG data (Co2-emissions), fuel consumption is also incredibly useful to check your OEM and LeaseCo strategy and compliance for example.

Analyse Your Data

Once you have collected your data, it’s time to analyze it. Look for trends and patterns in the data that can help you identify inefficiencies or areas for improvement. This can be done using software tools or by hiring a data analyst.

Take Action

Finally, take action based on your data analysis. If you identify an area for improvement, take steps to address it. For example, if you notice that one driver is consistently speeding, you can talk to them about safe driving practices and provide additional training if necessary.

Conclusion

Fleet data analytics is a powerful tool for fleet management. It can help you improve efficiency, enhance driver safety, increase compliance, and save money. By identifying your goals, collecting and analysing data, and taking action based on your analysis, you can make informed decisions and optimize your fleet operations. Remember that data analytics is an ongoing process, so it’s important to continually collect and analyse data to stay ahead of any issues or inefficiencies.

When it comes to implementing fleet data analytics, it’s important to choose the right tools and resources to help you collect and analyze your data effectively. There are many different software solutions and service providers available, so it’s important to do your research and choose the best option for your business.

In addition to choosing the right tools and resources, it’s important to have buy-in from your team. Make sure that everyone understands the benefits of data analytics and how it can help your business. Provide training and support to ensure that everyone is comfortable using the tools and resources you choose.

In conclusion, fleet data analysis can be a game-changer for your business. By embracing data analytics, you can gain insights, make informed decisions, and optimize your fleet operations. Remember to identify your goals, collect and analyse your data, and take action based on your analysis. With the right tools, resources, and team buy-in, you can take your fleet management to the next level.

Take a look at a quick overview of our Insights demo and get in touch if you would like to discuss this further.

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Cost of Components for Electric Vehicles Compared to ICE Vehicles

One of the most significant differences between electric vehicles and internal combustion engine (ICE) vehicles is the components they use. EVs have fewer moving parts than ICE vehicles, which means that they require less maintenance. However, the components used in electric vehicles tend to be more expensive than those used in ICE vehicles.

For instance, the battery pack in an electric vehicle is one of the most expensive components, and it will eventually need to be replaced. The cost of replacing a battery pack can be significant, but the good news is that battery technology is improving rapidly, and the cost of batteries is expected to continue to decline over time.

Additionally, other components in EVs such as electric motors and power electronics are also relatively expensive, mainly due to the cost of the rare-earth metals used in their manufacture. These components, however, are expected to become more affordable as manufacturing processes improve, and the demand for EVs increases.

On the other hand, ICE vehicles have more complex engines and transmissions that require regular maintenance, such as oil changes and filter replacements. While these components are generally less expensive than those in electric vehicles, the cost of regular maintenance can add up over time.

EV Maintenance Cost vs. ICE Maintenance Cost

The maintenance cost of electric vehicles is generally lower than that of ICE vehicles. As mentioned earlier, electric vehicles have fewer moving parts than ICE vehicles, which means that there are fewer components that can break down and require maintenance. Additionally, the regenerative braking system in electric vehicles helps to reduce wear and tear on the brake pads and discs, which can also save on maintenance costs.

According to a recent research study, (EVs), on average, cost €120 to service, significantly cheaper than petrol or diesel models. Diesel cars were the most expensive to service, costing €184  on average, with hybrid vehicles ranking second (€180), followed by petrol cars (€171). The study also found that EVs require less frequent maintenance and that the cost of maintenance decreases over time.

The nature of EV powertrains not requiring engine oil changes, fuel filters, air filters or spark plugs means that servicing an electric vehicle requires less labour and fewer replacement parts and fluids, helping to lower costs for motorists.

However, when it comes to repairs, electric vehicles can be more expensive than ICE vehicles due to the high cost of replacement components. Additionally, electric vehicles require specialised technicians who are trained to work on electric systems, which can also increase the cost of maintenance and repairs.

Servicing is still essential for EVs from a safety perspective.

What is the impact of tyres?

Tyres wear for example should always be considered like you would with ICE vehicles.

EV tyres can be more expensive than regular tyres because they have some very specific characteristics.

Electric cars are much heavier than their petrol or diesel equivalents. An Openl Corsa-e can weigh up to a third more than its petrol peer because of its batteries. The tyres must be able to support that extra weight, so they need to have a stronger and more expensive system of belts.

EV tyres are also designed for quieter rolling, as EVs make a lot less noise compared to petrol engines, which means you can hear more of the outside noise, including the tyres.

As part of this, the engineers also build EV tyres to have lower rolling resistance. This means it takes less energy to get the tyres moving, which makes them more efficient and improves battery range.

Last but not least, EV tyres must be able to cope with the extra forces that an electric car puts through them. An EV instantly gives you all the power that drives you forward, known as torque. Applying all that torque to the road surface at once can cause regular tyres to wear faster.

All these things start to add up in manufacturing EV tyres.

But, while EV tyres might be slightly more expensive than conventional ones, they’re usually more durable. And that means they’ll actually work out cheaper over time than if you were to use cheap, faster-wearing tyres, not designed for EVs.

What is the typical lifespan of an EV tyre?

In short, it’s mostly down to you and how the car is driven you drive. Tyre lifespan depends on your driving style and how you maintain them.

Looking after your tyres will increase their life too. Keeping them inflated to the car manufacturer’s recommended air pressures will cut wear. It will also reduce rolling resistance, increase EV efficiency and boost range.

Correct wheel alignment will help get the most out of your tyres. Inspect tyres regularly and if you notice the tread wearing more heavily on one side, your wheels may be out of alignment so get a professional’s guidance.

Assuming you do drive sensibly and look after your tyres, you can expect to get between 20,000 and 30,000 miles out of them. You might even get more tyre miles from an EV than from a petrol or diesel car. This is because EVs have much more efficient traction control systems that are better at preventing wheel spin and preserving tyres

What is the impact on TCO

The Total Cost of Ownership (TCO) is a key consideration for fleets when deciding whether to switch to electric vehicles. While the initial cost of purchasing an electric vehicle is generally higher than that of an ICE vehicle, the lower maintenance and fuel costs over the life of the vehicle can make up for the difference.

In addition, electric vehicles have a longer lifespan than ICE vehicles, which means that they can provide a better return on investment over time. A recent study by the International Council on Clean Transportation found that electric vehicles can save fleet operators up to 60% on maintenance costs over the life of the vehicle compared to ICE vehicles.

However, fleets will need to carefully consider the upfront costs and ongoing maintenance costs when making the decision to switch to electric vehicles. The cost of charging infrastructure and the availability of charging stations also need to be factored into the TCO analysis.

How Fleet360 Can Help

At Fleet360, we understand the challenges that fleets face when considering the switch to electric vehicles. That’s why we provide consultancy services to help fleet managers make informed decisions about transitioning to EVs. Our team of experts can help assess the TCO of electric vehicles, evaluate the available charging infrastructure, and develop a customized plan for transitioning to electric vehicles.

We can also help fleet managers understand the maintenance requirements of electric vehicles and how they compare to ICE vehicles. By working with Fleet360, fleet managers can optimize their operations and reduce their costs while also contributing to a more sustainable future.

The impact of electric vehicles on maintenance costs for fleets is significant. While EVs have more expensive components, they generally require less maintenance than ICE vehicles, which can lead to lower overall maintenance costs over the life of the vehicle. The TCO analysis should include factors such as the cost of purchasing and charging infrastructure, the availability of charging stations, and the cost of maintenance and repairs. Fleet managers who are considering the switch to electric vehicles can benefit from working with Fleet360 to assess their options, evaluate the TCO, and develop a customized plan for transitioning to electric vehicles. With our consultancy services, fleet managers can optimize their operations, reduce their costs, and contribute to a more sustainable future.

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