Advertising company Clear Channel’s assocation with the Energy Savings Trust (EST) has helped shape its vehicle policies.

In 2001, the company began a review of its fleet operations with a simple brief:

  • Introduce the cleanest vehicles possible
  • Reduce annual mileages
  • Do both without increasing costs

At the time, Clear Channel’s fleet was travelling 14 million miles per annum, producing an estimated 4,990 tonnes of CO2 yearly and emitting large quantities of nitrous oxide and particulates.

Review action summary:

  • Switch LCV fleet to LPG; all vehicles to be 100% Congestion Charging discounted.
  • Bunker LPG at as many of its operational sites as possible.
  • Offer an LPG option to all car drivers.
  • Introduce route planning for all LCVs and sales executives where possible.
  • Company car choice lists to show BIK impact and mpg figures.
  • All HGVs to be Euro IV diesel, or retro-fitted to reach at least that standard.
  • Introduce motorcycles into London, with a view to implementing them nationally.

The company calculated that 10,000 annual miles was the average cut-off to ensure that LPG was cost-effective versus diesel. It would also save money by being exempt of the congestion charge.

LPG is 15%-20% less efficient than petrol, but costs around half the price.

However, the savings rely on the maximum percentage of gas being used as possible on every journey – not simply using LPG as a means of increasing range.

Clear Channel found that each bi-fuel vehicle needed to use at least 75% LPG to ensure it cost less than diesel to run. It introduced a minimum quarterly target for each vehicle and produced a monthly report to highlight the results.

A bonus scheme was set up to reward team leaders whose operatives hit their target.

The company also supplied BoostLPG maps listing all the known LPG fuel stations nationwide, with opening times, telephone numbers and other facility information.

Once 75% LPG usage had become the norm, the company raised the minimum to 80%.

It plans to increase this still further where appropriate – some vans are already consistently attaining more than 95%.

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Even with the fuel savings from running on LPG, there were concerns that the bi-fuel vehicles would be more expensive to purchase and run. Clear Channel expected residual values to be much lower than the equivalent diesel vehicles.

But if residuals were better at resale than anticipated, the lease companies would take the double benefit of the higher rental payments through the term of the lease, and the profit at resale.

“We set about negotiating a lease that would allow us to benefit from any increase in residual values over the then pessimistic predictions,” says Clear Channel fleet manager Glenn Ewen.

“We needed the ability to budget, so wanted a lease provider to guarantee residuals, but in return for allowing them to write them down hard, we would take any profits at resale.”

In 2005, Clear Channel introduced Honda Civic IMA petrol/electric hybrid cars. They proved very popular amongst its sales executives working in urban areas.

The cars’ extremely low emissions meant that they were Congestion Charging exempt and their fuel consumption in stop/start traffic conditions was excellent.

The drawback was their higher fuel consumption when used anywhere other than in an urban environment, so the company tried to ensure it only gave them to drivers in urban areas.

Early in 2006, it introduced the first cap on CO2 for each grade.

This immediately reduced fuel consumptions on all new cars, as there is a direct link between lower CO2 and lower fuel consumption.

The company produced car choice lists showing drivers the list price for tax, CO2, combined mpg and actual monthly tax payable for each model.

Within six months, it was able to remove higher CO2 cars completely as no-one was choosing them.

In 2007, the company set minimum mpg limits on the choice lists and removed all cars with a combined mpg of less than 40.

Ewen adds: “We have spent the last seven years reducing our total vehicle mileage by 4.75 million miles per annum, our CO2 by 1,760 tonnes per year and saving £200,000 per annum on fuel costs and London Congestion Charges.”

  • This case study has been taken from the new book by Professor Colin Tourick ‘Managing your company cars – expert opinion’. It is available priced £60 from Amazon or via www.tourick.com where it is also available as an eBook, priced £60+VAT.

The Company

Company Clear Channel

Business Outdoor advertising company

Fleet manager Glenn Ewen

Fleet 370 light commercial vehicles, 340 of which are bi-fuel, running on LPG and petrol; 160 cars, 75% of them business use and the remainder perk. Of those, 29 are Honda Civic hybrids and six are Vauxhall Astra LPG; three heavy goods vehicles (HGVs) and three motorcycles.

Top tips

 

Glenn Ewen advises fleets looking to implement green changes to engage senior management by showing them the potential cost savings.

“Try not to move too fast. Give people time to adjust to each step and explain thoroughly your reasons for introducing it,” he says.

“Do not try to introduce every measure at the same time. Monitor each step to ensure that you meet your targets. If you can reduce fuel consumption on each of your vehicles by as little as 5mpg, you will save money.

“Compare current fuel consumption figures of all your vehicles against what you think you should be getting to identify those drivers that may need some form of training.

"Emphasise the need to have vehicles serviced on a regular basis and to check tyre pressure and condition at least weekly.”