INTERVIEW With Michele Hanlon, President of the Vehicle Leasing Association of Ireland (VLAI)

“The fleet sector is ever changing and evolving,” said Michele Hanlon, President of the Vehicle Leasing Association of Ireland (VLAI), who is about to complete the first year of her tenure as head of the national body for the Irish fleet management industry.

BIK is very much on Michele’s agenda in her day-to-day activities as Sales Manager at HB Dennis Leasing. She notes that the latest Benefit in Kind (BIK) changes within the Budget Finance Act are possibly and probably the biggest issue and change facing professionals car drivers in recent years. It’s an issue on which Michele and Council members have been actively lobbying Government Ministers and officials on. “The changes to BIK are killing our industry,” she stressed, adding; “The phasing out of the zero percent BIK on Electric Vehicles over the next 4 years, under the Finance Act must be looked at again. The way the Government officials have dealt with the issue is pushing away the move towards electrification of the business car fleet, totally penalising drivers in moving to zero-emission vehicles. In addition, it is missing an opportunity for the motor industry to provide a clean, green, safer and fresher used car market.”

“A rethink is necessary, and we are continuing to seek a fairer way, specific to leasing, with a reduction in the BIK levies. We do realise that there is a cost to cleaning up the environment, but increasing BIK is counter-intuitive. But being rewarded to cover more miles to reduce rates is counter-productive in terms of reducing carbon footprints. Another consideration is the fact that all cars (and vans) have increased in price substantially, especially BEVs that have longer range distances. Company cars are not a perk but a necessary tool to do business.”

Michele would like to see a broader selection of electric cars becoming available, especially in the smaller car segments: “Not everyone needs a long distance range, so a better line-up of smaller, cheaper cars are needed in the marketplace.”

The VLAI has enjoyed a growth phase in recent years, attracting more members, with many of the bigger fleet management companies becoming major stakeholders and active Council members. Michele stated that “with a full representation from this specialist sector, one strong and singular lobbing focus can be undertaken. There’s strength in numbers.”

Calculating residuals for electric cars is proving difficult, and a risky game. Also, many formulae are involved and taken into consideration. “Currently, the option of petrol/electric hybrids for our operators is not working. For one thing, there is no VAT rebate on the fuel and [they are] more expensive to run from a fleet operational perspective.”

With the Green Party stating that it wants to see less cars on our streets, the alternative options are car sharing or carpooling, developments that are already happening in Europe. It is something that the VLAI membership is looking to get involved in. The issue of actual car ownership, insurance cover, compliance and maintenance could be handled by an organisation like the VLAI, which has experience and expert professionalism in this area.

Managing the grey fleet is becoming a bigger issue within the industry, and something that Michele and the VLAI are continually trying to address. “Over the years, the option of the driver to own their own car and use it for business or work purposes has increased. The concern lies between undertaking repairs and maintenance and the duty of care involved. We are aware of the cost of living crisis, but if a set of tyres are not replaced, for example, and an accident happens, the insurance cover could be negated. The RSA has issued guidelines but we need clear legislation to be initiated in this country in this regard. In the UK, duty of care comes under Corporate Responsibility, which is a serious matter with severe penalties. Overseeing the management of own account vehicles on behalf of companies is something that we may look at from our side.”

At the 2023 VLAI AGM in April, details of the makeover of the organisation, undertaken over the past few months, will be revealed. It includes a new chain of office, a restyled logo and a totally revamped website. “It’s time to create a new image and refreshed branding to meet our changing times and become more vocal within the business end of the Irish automotive industry.”

She paid special tribute to her predecessor Morgan McAndrew, for overseeing the organisation’s operations during the very difficult pandemic lockdown periods. “Morgan carried us all along during the most challenging period in the motor industry. He was also involved in putting the plan together to carry the VLAI into the future for all members to benefit from.”

With Jarlath Sweeney - editor@fleet.ie

For the executive corporate car driver who covers above average mileage, the big question is whether to stick with diesel power or move over to zero-emission electric. Eventually this will have to happen but for now to maintain the same premium level of motoring, diesel seems to be the most economical, convenient and viable option.

Take the Mercedes-Benz E-Class , for instance. Comparing the diesel E220d and the electric EQE 350, brings out interesting findings.

Talking with a loyal E-Class driver, a person who hasn’t time for any other car, this is a result of having had consistent love affairs with each generation of the E-Class. The excellent fuel economy of his E220d and numerous driver comforts are top of his conversation agenda every time we meet. Our last chat was on the merits of the new EQE, as the interest inside his head and heart is growing.