Tony Williams, Managing director, All-in-One Leasing

With the £5-per-gallon petrol cost now rapidly receding into the past and the £6-per-gallon cost looming, fleets are struggling to meet the massive increases in their refuelling costs.

While little can be done to change company cars mid-cycle, astute fleet managers can control costs by subtle changes to operating procedures.

A fleet with 1,000 cars averaging 25,000 miles a year, for instance, can shave a significant £250,000 off the fleet budget by increasing fuel consumption by a mere 2mpg.

How difficult is that? About as difficult as ensuring that their drivers regularly check tyre pressures, respect the speed limit and, finally, take accumulated clutter out of the boot to save a bit on weight.

An added bonus is that these measures would also improve the safety of the fleet.
 

James Langley, Director, Fleet Intellect

Fuel prices in the developed nations have shot up and show little sign of ever reducing, even to the £1 per litre we so feared in the UK not that long ago.

Business car costs will inevitably rise but the real challenge – infinitely better management of vehicle specification, real reduction in the use of cars for business travel (in those cases where appropriate alternatives are available) and the control of drivers to ensure they play their part by adopting responsible driving practices – is, thankfully, being increasingly recognised.
 

Jason, Francis, Managing director, Jaama

Managing fuel bills is the number one issue confronting fleet decision-makers.

But fuel management begins even before a vehicle takes to the road.

Fleet decision-makers should be reviewing their company car choice lists to ensure they offer drivers vehicles with excellent mpg.

Not only will businesses save on fuel costs, but such strategies will also be reflected in lower benefit-in-kind bills for drivers as fuel economy and a low carbon dioxide emission figure are benefits of the same package.

Once vehicles are on the road, budget-conscious fleet operators should focus on measuring and managing fuel use.

Sophisticated fleet management systems allow fuel card transactions to be analysed online so matching the driver with the vehicle registration number and the allocated cost centre.

Today’s hi-tech systems also enable fleet managers to ‘slice and dice’ management reports by comparing actual mpg against expected mpg, allowing fuel fraud to be identified and highlighting the purchase of expensive super unleaded petrol against company rules.
 

Geoffrey Bray, Chairman, Fleet Support Group

Occupational road risk management remains at the top of the fleet agenda.

The problem is that fleet decision-makers, in their desire to implement at least some initiatives, cherry-pick a couple of measures that they view as solutions.

But the first step on the journey to implementing any safe-driving strategy should be a risk assessment.

This then acts as a benchmarking exercise and the springboard for a programme of targeted interventions to reduce the risks identified.

It is crucial that there is a programme of continual driver, vehicle and journey assessment and the information generated is acted upon to reduce a company’s risk exposure. 


Mike Wise, Head of Kwik-Fit Fleet

With fuel prices at record levels it is essential that tyres are checked weekly.

Incorrectly inflated tyres can increase fuel consumption by up to 10% as well as endangering lives.

Ensuring tyres meet the legal requirements is a vital part of any corporate risk strategy.

Fleets should brace themselves for a rise in tyre costs, which also underlines the importance of a robust tyre care strategy.

It is unlikely that fleet managers will have budgeted for this so it is essential that they put in place strategies to preserve tyre life. The average tyre consumption on a typical three-year/ 60,000-mile contract is two tyres per vehicle per year.

However, dependent on vehicle use, the individual driver and model it could be as low as 1.6 or as high as 2.2.
 

Phil Moorhouse, Managing director, Northgate Vehicle Hire

Rocketing fuel prices are challenging vehicle depreciation as the single biggest cost facing fleet decision-makers.

It is crucial that fleet operators react by implementing new strategies to help control operating costs, particularly of their high mileage commercial vehicles.

Telematics is already finding favour with some companies as they turn to the cutting-edge technology to aid both productivity and operation of their vehicle fleet.

Industry research and our own real-world evidence suggests telematics can bring fuel savings of up to 20%.

I expect demand for in-vehicle telemetry units to increase rapidly over the coming months.”


Keith Allen, Managing director, ALD Automotive

Contract hire rates will rise over the coming weeks and months as the cost of borrowing continues to increase as a result of the credit crunch.

Fleets can safeguard against the impact of rising monthly contract hire rates by reviewing company car choice lists as the countdown begins to the April 2009 changes in capital allowances – impacting on both writing down allowances and leased car disallowances.

With the critical threshold set at 160g/km of CO2, fleet managers should be seeking expert financial advice and, in the main, selecting vehicles below that cliff-edge to ensure cost savings materialise.
 

Mark Sinclair, Director, Alphabet

The new capital allowance regime, due next year, represents a profound change in the pipeline for fleets.

When it takes effect, most key aspects of vehicle costs – benefit-in-kind, fuel efficiency, corporation tax treatment and national insurance contributions – will be directly affected by carbon dioxide emissions ratings.

Some cars, especially those just above the 160g/km threshold, will become uneconomic for fleets.

Existing policies based on list prices or lease rentals need to be reviewed now – ask your supplier whether they have the appropriate software.

In the emerging economic and fiscal climates, wholelife costs are the only effective basis for setting fleet budgets.
 

Phil Redman, Fleet manager, IBM (UK & Ireland)

Rising fuel prices have led to pressure on the HMRC advisory fuel rates, which are now insufficient. In my opinion the recent budget will show itself to have been the most significant since the changes in company car taxation in 2002.

We need further detail to completely understand the changes and thus begin modelling fleet costs.

I wonder how many fleets have yet realised the potential implications?

The depth of the economic downturn is difficult to forecast but all signs to date suggest it has not bottomed out –we are watching leasing rates, new car purchases and auction prices.
 

David Dippie, Managing director, Ashbrooke Fleet
Management

Our customers have not yet realised the implications of reduced allowances for vehicles emitting over 160g/km next year.

This will affect existing vehicles and could add £5,000 to the cost of providing a £20,000 car above 160g/km.

We are advising them and reflecting this in vehicle choice lists.

Another issue we are looking at is driving licences.

We find that approximately 10% of drivers are reluctant to provide driving licences for inspection, leading to suspicions that they are driving illegally.

We are currently escalating this to director level to force the issue and ensure each company is protected.

In light of the rising fuel costs, we are also updating vehicle choice lists to prioritise selection of the most fuel efficient vehicles.
 

Chris Chandler, Senior consultant, Lex Momentum
Consultancy Services

The cost of fuel is the second biggest expense for fleet managers after vehicle depreciation, and with the recent dramatic price increases and no sign of reductions on the horizon, it’s imperative that fleet managers prepare themselves for further increases, including the 2p tax rise expected in October, which was documented in the budget.

Fleet operators also need to address CO2 emissions now and be prepared for the ‘showroom’ tax and changes to vehicle allowances, which are due to take affect in April 2009.

They should assess their current fleets on the basis of CO2 emissions and ensure the fleet is tax effective.

They certainly should not delay taking action.
 

Mark Chessman, Deputy managing director, Lloyds TSB Autolease

The last few months have seen a turning point in issues that have been bubbling under the surface for the fleet industry for some time.

With the budget announcements around the changes to corporate taxation, came further evidence of how regulation is going to encourage fleet decision-makers to design policies around reducing environmental impact.

The new environmental legislation means fleet managers will pay for high emitting cars or be influenced to select lower emitting cars, regardless of the funding method used.

We look forward to manufacturers further developing the low-emission options of vehicles in all categories.
 

Lorraine Farnon, UK sales director, National Car Rental

Since the new Corporate Manslaughter Act came into force in April we have seen an increase in requests from customers to help them meet their duty-of-care obligations.

It is vital that employers exert control over driver behaviour while helping employees recognise the responsibility they have to drive safely.

The part vehicle rental can play in supporting duty of care is clear. Rental providers can help businesses monitor and manage the use of vehicles with a wealth of management information, making sure the right car is used for the right job and drivers don’t drive longer or further than they should.
 

Seb Goldin, Managing director, IAM Fleet and Drive & Survive

The key industry issue has got to be the cost of fuel. Two weeks ago, one of our largest blue chip customers, with a fleet of several thousand vans, instructed us to change our training from our normal offering to a specific ‘fuel-wise’ programme.

One of the other key issues is the move from driver training being discretionary to mandatory, following the corporate manslaughter legislation.

Driver training is now a ‘must do’.