GreenFleet Guide to Fleet Management

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GUIDE TO FLEET MANAGEMENT

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1st half 2010. *According to NEDC standard. tThe 10% company car tax band currently applies to cars with CO2 emissions of less than 120 g/km.

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DEAR READER, www.greenfleet.net

We understand that looking after a fleet is getting increasingly complex. Costs must be kept down, service levels must be kept high and staff must be kept safe on the roads. And more recent environmental obligations only add to these responsibilities.

Whether you’re a seasoned fleet manager or are new to these duties, there are always questions that could be explained better and areas that could be made clearer. That is why, in partnership with Fiat Group, we have created this Guide to Fleet Management which gives simple explanations to the key areas of fleet management and offers practical advice and tips on how to operate a more efficient fleet.

Contents & Comment

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Guide to Fleet ManaGeMent

GreenFleet and Fiat would like to thank the following contributors:

CONTENTS 04 VEHICLE SELECTION How to introduce greener vehicles to your fleet 06 FINANCE What are the different finance options available for fleets?

07 IN-CAR TECHNOLOGY Find out how technology can help you run a leaner fleet

08 ECO DRIVING Simple changes to driver style can make huge financial and CO2 savings 10 GREY FLEET What management responsibilities apply for staff using their own cars on business?

12 VEHICLE FOCUS Find out why the Alfa Romeo Giulietta will make an excellent addition to your fleet 14 HEALTH AND SAFETY The benefits of introducing Driver Risk Management

ABOUT GREENFLEET GreenFleet brings together all the latest green transport news, features and interviews with fleet managers, as well as road test reviews. GreenFleet also hosts a range of events allowing fleet managers to get up close and personal with the latest green vehicles. See the website for more details.

www.greenfleet.net

GreenFleet Guide to Fleet Management published by

226 High Road, Loughton, Essex IG10 1ET. Telephone: 020 8532 0055

Editor Angela Pisanu Production Editor Karl O’Sullivan Production Controller Reiss Malone Publisher Martin Freedman Reproduction & Print Argent Media

© 2011 Public Sector Information Limited. No part of this publication can be reproduced, stored in a retrieval system or transmitted in any form or by any other means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the publisher. Whilst every care has been taken to ensure the accuracy of the editorial content the publisher cannot be held responsible for errors or omissions. The views expressed are not necessarily those of the publisher.

03

Vehicle Selection

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PROCURING GREENER VEHICLES Organisations who want to introduce low emission vehicles into their fleets should follow proven fleet management principles if they want to achieve sustainable change

Written by John Webb, council member, the Institute of Car Fleet Management

With a fragile UK economy and public sector spending under enormous pressure, now is not a time to abandon proven industry best practice in the pursuit of a greener fleet.

However, following a structured approach to vehicle selection can deliver a greener fleet and sustainable cost reduction.

Selecting the right low CO2 emitting vehicles in this way will result in significant cost savings and will not require revisiting every time new vehicle technologies arrive on the market. Effective green fleet management should focus on the careful management of all the key elements of business travel and optimising these to minimise non-productive mileage, inefficient vehicles and inefficient driving practices.

CONSIDER CORE BUSINESS OBJECTIVES Fleet is usually one of the highest costs of a business alongside estates, IT and salaries. So, these are costly assets that must support core VEHICLE EVALUATION business activities and business objectives. For Doing your research thoroughly will bear example, does the car and van fleet support dividends and give you the answers to the operational targets such as sales numbers? questions that your stakeholders will seek.

Or are company cars a valued recruitment It’s good practice to set clear technical and and retention tool? An overly restrictive car qualitative evaluation criteria including policy that reduces choice can also cost and performance at the push company car drivers into a outset. Give the manufacturers For the cash option which can prove to feedback. They need this to latest GreenFleet be more expensive, less safe and develop the product – and news, events and less environmentally friendly, as hopefully enable them features please visit older, higher emitting cars are to make a sale next time www.green often chosen by employees. round.

One area where fleet.net WHAT TECHNOLOGY? innovative vehicle There is no one-size-fits-all technology can green solution for fleet operators.

Starting the process with a fixed view of the technology to be chosen is often the source of problems further down the line. While a bold step change to introduce the latest low emission vehicles can offer the potential for a significant drop in emissions, this may be at the cost of driver dissatisfaction, reduced operational performance and increased costs.

The key to successful green fleet management is to identify the needs of the business and ensure the fleet matches those needs efficiently and effectively.

The best approach is therefore to adopt a technologically neutral approach which aims to provide the lowest CO2 emitting vehicle which is right for the job – fit for purpose. This means that a mix of diesel, dual-fuel, hybrid and electric may exist successfully within the same fleet.

provide challenges is the service, maintenance and repair infrastructure to support the new vehicles. So any decisions about new vehicle models must include adequate provision for keeping them on the road. Speak to other businesses that use the vehicles.

Manufacturers and leasing companies will often be more than willing to enlist other customers as advocates of their products.

DRIVER BUY-IN Enlisting the support of drivers is also a critical element of selection and evaluation, particularly for job-need cars or vans. On the road trials are an invaluable opportunity to put vehicles to the test. However, this must be done by employees who understand the evaluation criteria and can make an objective assessment.

Even when given the most

The best approach is to adopt a technologically neutral approach which aims to provide the lowest CO2 emitting vehicle which is right for the job. This means that a mix of diesel, dual-fuel, hybrid and electric may exist successfully within the same fleet.

TOP TIPS FOR PROCURING GREENER VEHICLES GET ALL ON BOARD Get stakeholder and driver buy-in to the business case for a greener fleet.

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BUSINESS NEEDS Identify the needs of the business and ensure the fleet matches those needs

TECHNOLOGY NEUTRAL Choose the lowest CO2 emitting vehicle that is right for the job

CLEAR OBJECTIVES Set clear evaluation criteria at the outset including cost and performance

efficient and clean vehicle available in the market today, an employee who resents having the vehicle will manage to make it perform inefficiently. This was a particular problem with dual-fuel Liquid Petroleum Gas (LPG) powered vehicles that could run on both unleaded petrol and LPG. The environmental and cost benefits of these vehicles were often lost by drivers predominantly running them on unleaded fuel and driving them aggressively believing they were under-powered.

Also ensure that employees are made aware of any financial savings available to them – low CO2 emitting cars will reduce company car tax and private fuel costs. Employees need to be shown the key features of vehicles to

ALFA ROME MiTo

IS T E E L F OF E N O LY TS L S A O U C S U ST E H G S I THE H A BUSINES OF NGSIDE ALO S, IT AND E ESTAT LARIES SA

The MiTO is powered by the innovative MultiJet II diesel engine which delivers emission levels as low as 112g/km in its 1.3 JTDM-2 95bhp. To optimise diesel combustion, the MultiJet II engine is able to precisely control the quantity of fuel injected into the cylinder, with a quicker and more flexible injection sequence and can in fact manage eight injections per cycle.

Vehicle Selection

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FIAT 500

understand any special driving characteristics of say, hybrids which require a different driving style to optimise their dual power systems.

SAFETY FIRST Any successful vehicle selection policies must have safety at the core. Therefore any vehicle evaluation must include factors such as Euro NCAP (European New Car Assessment Programme) rating.

Although legislation sets minimum standards which cars must meet in order to be sold in Europe, Euro NCAP tests are more severe, allowing the differences between cars’ safety to be highlighted.

In terms of choosing safety, start by deciding on the size and kind of car needed, then look for the best performers in that group. Some buyers may be interested in particular aspects of a car’s performance and under the rating scheme, a car’s score are given for each part of the assessment, as well as the overall star rating.

Most fleet selection policies will include

SAFETY Ensure safety is at the core of any successful vehicle selection policies.

front and side airbags and, of course, seatbelts which are a legal requirement. However, most manufacturers are developing innovative safety features which you also need to consider, such as Anti– lock Braking System (ABS), Electronic Brake Assist and Electronic Stability Control.

The overall message here is to ensure that safety is not compromised for CO2 reduction.

WHOLE LIFE COSTS Looking at the total cost of ownership over the life of a vehicle is a proven, robust method of cost comparison that works on many levels as it involves calculations on lease rate, blocked VAT, National Insurance Class 1, fuel and of course taxation which is based on a car’s carbon emissions.

This will future proof policies and ensure that the effects of the tax changes are reflected in the formation of policy and therefore the choices which drivers make.

Whole-life-cost is also a proven method of influencing the vehicle choice of ‘perk’ company car drivers where the imposition of a carbon cap restricting choice below say 160 g/km may go against the rewards and benefits objectives of the business.

The final element of the process is monitoring costs throughout the life of the vehicle and ensuring that the objectives of the original business case have been met.

Following this structured planned approach to fleet acquisition may require additional effort but the benefits will be accrued for many years to come.

WHOLE LIFE COSTS Consider lease rates, VAT, National Insurance Class 1, fuel and taxation

The Fiat 500 TwinAir has a 875cc two cylinder engine, which delivers 68.9 mpg and CO2 emissions as low as 95g/ km – making it the lowest ever emitting quantity production petrol engine.

The TwinAir benefits from low running costs; there is no vehicle excise duty to pay and businesses benefit from 100 per cent capital allowances.

ALFA ROMEO GIULIETTA The diesel line-up has a raft of innovations to make it greener, such as the Multijet II engine which optimises fuel consumption, stop start technology and a gearshift indicator – resulting in CO2 levels as low as 114g/km. Plus all engines conform to the latest Euro 5 emissions criteria.

SEE THE BIG PICTURE Minimise non-productive mileage, inefficient vehicles and inefficient driving practices.

MONITOR Monitor costs throughout to ensure that original objectives have been met.

05

Finance

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FUNDING FOR YOUR FLEET What different finance options are available for fleets?

Written by Paul Harrison, head of motor finance, Finance & Leasing Association For businesses operating large vehicle fleets, it often doesn’t make economic sense to buy them outright. This could have significant consequences on a business’s cash-flow. So many vehicle fleets are either purchased on two-three year plus credit agreements or, as is more common, leased.

But what does this mean for the business, what are the different finance options available, and why might leasing be suitable (or not)? For fleets, leasing and hire purchase are finance facilities that both allow a business to enjoy the use of a vehicle over a fixed period of time, in return for regular payments. The business chooses the cars or vans it requires and the finance company buys it on their behalf from a motor dealership or another channel. The major benefit of finance and leasing agreements is that a business has the ability to secure the use of an essential asset without the need to incur an immediate, up-front capital outlay.

WHAT ARE MY FINANCE OPTIONS The main options that businesses use to finance their fleets are leasing and hire purchase. Which one you choose will depend on what you want to use the vehicles for, how long you want to use them, and whether you want to end up owning them at the end of the finance deal or replacing them for a new model.

Lease agreements can take many different forms but the two main types are: finance leases and operating leases. Under a finance lease, the finance agreement covers the full economic life of the asset – so if you plan to use a fleet of vehicles for ten years, then this is how long your leasing agreement will run for – and it’s assumed in a finance lease that the vehicle will have little (if any) market value at the end of the term. Therefore many finance leases can be extended after the initial rental period, usually for a nominal rental payment.

OPERATING LEASING But the most common form of leasing is operating leasing, used for 53 per cent of all asset finance deals for cars in 2010.

These leases are normally for a shorter period of time, typically three-five years, and reflect how long the lessee plans to use the vehicles before replacing them. The leasing company set rental payments at a rate which covers the vehicle depreciation plus interest charges. When a vehicle fleet is returned the assets are still likely to be worth something and would therefore be sold or go out on a secondary lease agreement to a new customer.

Operating lease agreements are also referred to as ‘contract hire’ agreements. The cost

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of contract hire agreements are normally determined by the anticipated mileage of the customer over the full term of the agreement.

Customers are often given the option of including service and maintenance packages to help them cover the full cost of running a vehicle in one convenient repayment.

HIRE PURCHASE Hire Purchase (HP) agreements also remain very popular – used for 38 per cent of all deals in 2010. Put simply, the leasing company buys the asset and you make payments over the agreed contract period.

Once you’ve made all the repayments, and paid something called the Option to Purchase fee which is a charge to transfer title to the customer, you will own the vehicles. But remember that the finance company owns the asset until the final instalment is paid. This option is best if you want your company to own the vehicles at the end of the contract, but payments will be higher than if you were just renting the vehicles for your fleet. The

main benefit is that the vehicles can be resold once they are no longer needed.

HOW TO ACCESS FLEET FINANCING The easiest way is to approach a company offering fleet funding, whether directly or through a broker. Members of the Finance & Leasing Association have signed up to our Business Finance Code, which guarantees customers clear, transparent service and also a method of redress should they have unresolvable complaints.

If you are seeking out fleet funding for the first time, you may find it easier to approach a broker to find suitable finance. Brokers have established relationships with many different leasing companies, and will be able to search their bank of lenders for the best deal for you. The National Association of Commercial Finance Brokers’ has a directory of specialist vehicle finance brokers.

FOR MORE INFORMATION Web: www.fla.org.uk

FINANCE OPTIONS AT-A-GLANCE OPERATING LEASING / CONTRACT HIRE • Short-term rental contracts – ideal if you change your fleet regularly • Rental payments usually lower to reflect the asset’s value at the end of the contract.

• Anticipated mileage will help determine the cost of rentals and it is common for service/maintenance packages to be built in.

HIRE PURCHASE • Suitable for companies that want to own their fleet at the end of the contract period, but don’t want to pay for them in one go.

• Payments higher than for leasing as payments need to cover full purchase value of the car and interest.

• Vehicle likely to have a resale value at the end of the HP contract, so some of the cost can usually be recouped.

FINANCE LEASING • Long-term rental contracts, most likely for the life of the assets being financed.

TELEMATICS AND IN-CAR TECHNOLOGY

The latest in-car technology gives companies the data they need to analyse how their fleet is operating and to identify areas for improvement Telematics and in-car technology can transform working practices by giving fleet operators a clear view of how their vehicles are being used. As a result, fleet managers can make informed decisions about what corrective action to put in place.

There are various solutions on the market that offer real-time information on driver behaviour, vehicle condition, fuel usage, and CO2 emissions, as well as GPS data on vehicle position and activity. And using the data provided allows fleet managers to analyse and compare performance to identify which drivers and which vehicles are the most or least fuel efficient. And with the amount of valuable data available in the back office, managers can also see what are the contributing factors – is it congested roads that is wasting fuel or an aggressive driving style?

USES AND BENEFITS OF TELEMATICS • Better routing for operational efficiency • Tracking for increased safety and operational efficiency • Gives data on driver styles to identify who is not driving efficiently • Gives information on vehicle condition for increased safety and efficiency • Real-time information allows for better decision making

DRIVING STYLES Telematics can identify bad driving habits, such as harsh accelerating and braking, or leaving the engine on unnecessarily. For example, a driver might arrive at a job and sit with the car idling for 15 minutes to keep the air conditioning or heating on while doing paperwork. Those 15 minutes add up to a significant amount of fuel wastage, especially in a large fleet.

Seeing the big picture about how their fleet is being driven allows the managers to take the right action, which could be as simple as educating the driver on idling or driving style, or replacing vehicles with more efficient types.

There are also many devices that can give in-vehicle feedback which allows the driver to modify their driving style in real time to

In-Car Technology

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become safer and greener drivers.

Vehicles that are serviced and wellmaintained are more efficient then those that are not. There are some solutions available that can monitor the vehicle’s diagnostic system, so that companies can immediately identify any mechanical problems which would cause the vehicle to operate less efficiently.

DUTY OF CARE As well as being able to help with better routing, telematics can give drivers an increased sense of security that they are being looked after by their employer, and in turn, the employer is adhering to their duty of care obligations. For example, some devices are able to detect if the vehicle has been in an accident and notify the back office. Tracking solutions can also add to driver security, especially if they are lone workers.

BIG SAVINGS A big area for savings is identifying fuel wastage and putting in place the right corrective action. But there are numerous other company benefits. If productivity is optimised then this increases end-customer satisfaction.

For example, in the service area, being able to monitor vehicles in real time and therefore make decisions in real time allows fleets to react to the day’s appointments and ensure they are meeting their customer commitments.

In addition, if the business is operating more efficiently, then this cost advantage can often flow down to the customer, helping to win repeat business.

In today’s tough economy, companies can make savings by ensuring their fleet is being maintained, utilised and driven efficiently. The latest in-car technology gives companies the data they need to analyse how their fleet is operating and to identify any areas for improvement.

GLOSSARY TELEMATICS:

TRACKING:

The integrated use of telecommunications and informatics

Uses GPS to monitor the location of vehicles as they travel

ENTERPRISE MOBILITY (EM):

GEO-FENCING:

Capturing and delivering information at the point of activity

Restricts the movement of a vehicle to within a specified area

GLOBAL POSITIONING SYSTEM (GPS): A satellite-based navigation system made of 24 satellites in space and receivers on earth to detect the user’s position

Please turn over for more details on the green benefits of in-car technology

07

Eco Driving

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TECHNOLOGY FOR GREENER D Using Fiat’s eco:Drive Fleet application is a simple way to change driver behaviour and see clearely how

Nearly a fifth of a fleet’s total cost goes on fuel according to the Institute of Car Fleet Management (ICFM). On the face of it, the easiest way to cut this is to buy more economical vehicles. And the choice is massive, from purely electric to super frugal internal combustion engines with cutting edge technology.

But there should be another easier and cheaper way. While fleet managers have no influence over fuel prices, they can have an impact on driver behaviour. Training is one route. It’s effective but humans are creatures of habit and it’s easy for drivers to slip back into bad ones. And training can be expensive and the continual investment required to maintain best practice can be prohibitive.

A SIMPLE SOLUTION The ultimate answer would be a technology that teaches and encourages fuel saving, costs little or nothing and is ever present in the driver’s life.

That pretty much sums up Fiat’s eco:Drive Fleet, an easy to use application that helps drivers use less fuel, reduce CO2 emissions and save money – up to 16 per cent in some cases.

The eco:Drive Fleet application is free to any Fiat car or van fitted with the company’s award-winning Blue&Me infotainment system and draws every fleet driver into the spirit of economical motoring. By plugging any USB stick into the Blue&Me port, allows acceleration, deceleration, gearshift and speed information to be saved onto it automatically. When the USB is plugged back into a computer eco:Drive Fleet converts the data into facts and figures such as mileage, CO2 emissions and money saved.

Clever tutorials then play back the least efficient journeys showing individuals what they personally are doing wrong and where

they can improve. It’s like giving drivers their own eco-driving instructor.

GETTING THE BEST OUT OF DRIVERS The eco:Drive Fleet will encourage drivers to get the best out of their vehicles by better route planning, using less congested roads and keeping to a constant speed with less wasteful accelerating and decelerating. It also warns against aggressive driving and advises drivers to look as far ahead as possible and coast to a halt without braking, where safe.

It teaches drivers how to manage their car better too. It tells them to set off straight away on a cold day as it’s the quickest way to get a modern engine performing at peak efficiency.

Eco:Drive Fleet also gives advice on clearing out rubbish from cars to cut weight, using onboard equipment such as air-con sparingly and keeping the windows up to make the vehicle as wind-cheating as possible.

Eco:Drive even explains the value of maintaining a car properly so that tyres are at their optimum pressure and components such as air filters work efficiently. Using the trip computer is another top eco:Drive tip. Having the instant consumption button pressed allows drivers to see how being gentler on the accelerator can yield large rewards. The eco:Calculator section of eco:Drive shows real time data how much fuel, CO2 and money drivers are saving.

IMPROVE FLEET EFFICIENCY But where eco:Drive Fleet scores for fleet managers is that it allows them to monitor all the data from the vehicles they supervise via an on-line dashboard. It automatically updates the database with management costs and the mileage count for maintenance intervals. And

it allows fleet managers to see how efficiently their fleet is performing according to an overall eco:Index. Companies can use this information to create an environment where economical drivers reap benefits. Competitions can be created between individuals or teams with the biggest fuel savers rewarded with prizes.

It’s a fun way to encourage drivers to save the company money by using the carrot of peer pressure and reward rather than the stick of admonishment. And the winners aren’t just the most economical drivers. On top of lower fuel bills for the company, everyone on the planet benefits from the reduction in CO2 emissions.

Real-life payback can be significant according to Fiat’s research. On average, drivers using eco:Drive reduced their fuel consumption and emissions by six per cent. The best ten per cent cut theirs by staggering 16 per cent. On top of that, their average speed actually increased and stopping times were reduced. Nor was the improvement temporary. In many cases there was a behavioural change over an extended period. This is undoubtedly because eco:Drive Fleet keeps drivers and fleet managers engaged in a convenient and personal way.

For the fleet manager, employing eco:Drive isn’t just about saving fuel. It’s about creating better drivers. And that means they’re less stressed, prompt lower maintenance costs, have fewer accidents and cheaper insurance.

The ICFM claims effective driver training can influence more than 80 per cent of fleet costs; eco:Drive Fleet can go a significant way to achieving that for free.

FOR MORE INFORMATION Visit: www.fiat.co.uk/ecodrive E-mail: fiat.fleet@fiat.com Tel: 08446 623622

FIAT ECO:DRIVE – POPULARISING ECO-DRIVING

BY MAKING IT EASIER AND MORE ENJOYABLE In four simple steps, Fiat’s eco:Drive application helps drivers monitor their behaviour and improve how efficiently they drive

STEP 1

STEP 2

STEP 3

DOWNLOAD

Driver puts personalised tips into practice

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STEP 4

ECO-DRIVING TIPS

RIVING

Simple changes to driving style can have significant benefits for the environment, and the company purse

your fleet is being driven

1. ALWAYS PLAN AHEAD

IF WE WERE ALL ECO-DRIVERS IN THE EU, WE WOULD SAVE...

FUEL CONSUMPTION 37 billion litres of fuel annualy

Five times the annual oil production at the world’s biggest oil rig.

Travelling numerous short journeys through congested areas burns fuel unnecessarily

2. KEEP A CONSTANT CHECK ON YOUR TYRE PRESSURES

The lower your tyre pressure, the harder the engine has to work to push the car forward, and the higher your fuel consumption

3. DON’T OVERLOAD YOUR CAR The heavier your car, the harder the engine has to work to move the load. Plus carrying luggage on the roof rack makes the car less aerodynamic.

Both result in extra fuel consumption

4. USE YOUR CAR’S ELECTRONIC DEVICES SPARINGLY

From the cigarette lighter to the defroster, any in-car device that runs on electricity sucks power from the battery. The more electricity you use, the more fuel the engine burns

5. KEEP YOUR CAR WELLMAINTAINED AND REGULARLY SERVICED

CO2 EMISSIONS 90 million tons CO2 a year

The same as Portugal’s yearly emissions.

Cars that are not maintained and serviced regularly tend to have parts and equipment that are not working to their maximum efficiency. This causes the car to burn more fuel

Eco Driving

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6. DON’T BE AN AGGRESSIVE DRIVER

Aggressive driving, especially tail-gating means speeding, rapid acceleration and braking. It burns fuel and wears out your engine and tyres

7. DRIVE CAREFULLY IN THE WET

Water on the road causes rolling resistance the engine has to work harder to push your car forward. The faster you drive, the harder the engine has to work

8. KEEP WINDOWS CLOSED AT HIGH SPEED

An open sunroof or window cases drag above 30mph, requiring the engine to work harder to move the car

9. MAKE GOOD USE OF YOUR TRIP COMPUTER

Your car’s trip computer gives you precious fuel consumption information and instant feedback on your eco driving

10. CHOOSE THE RIGHT SPEED Choosing the right speed (within the limits) improves fuel efficiency and safety. On a straight road where the national speed limit is in force, 50mph is the optimum speed for fuel efficiency

MONEY SAVED £43 billion a year

Same as the investment in renewable energy in the EU in 2009

ECO-DRIVING BRINGS SIGNIFICANT SAVINGS SAVINGS PER AVERAGE CAR LIFECYCLE

FUEL CONSUMPTION

CO2 EMISSIONS

MONEY SAVED

AVERAGE ECO-DRIVER

-6%

-1,088kg

TOP 10% ECO-DRIVERS

-16%

-2,895kg

£515 £1,355 09

Grey Fleet

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Written by Julie Jenner, ACFO chairman

USING STAFF-OWNED CARS FOR Exactly the same management responsibilities apply when employees drive their own vehicle for business as when they drive a company car Employees typically use two forms of travel for business journeys – a company-provided vehicle or their own car, the so called ‘grey fleet’. Yet, while company car – and indeed company van use – is invariably tightly controlled, a much more laissez-faire attitude is typical in relation to the use of privatelyowned vehicles for business.

EXPENSIVE BUSINESS Recent research supported by the Energy Saving Trust suggested that almost a third of companies allowed employees to drive privately-owned vehicles more than 7,000 miles on company business with 24 per cent of grey fleet vehicles covering more than 10,000 business miles a year.

If employees are reimbursed at 40p a mile (Authorise Milage Allowance Payment rates) that is a huge cost to business. As a result, some employers have discovered that it is more cost effective to introduce rules that limit the use of staff-owned cars on business, such as requiring higher-mileage staff to use a hire car or have a company car.

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DUTY OF CARE Under the Health and Safety at Work Act 1974, employers have a statutory duty to ensure, so far as is reasonably practicable, the health, safety and welfare at work of their employees.

This applies when employees are undertaking driving for work, whether in their own car or using a company car.

As a result, it has become very clear that grey fleet is not an ‘out-of-sight, out-of-mind’ issue as some employers thought – exactly the same management responsibilities apply.

For example, checks must be made to ensure that employees have the correct business-use insurance in place, that vehicles are serviced and maintained, a valid MoT certificate is in place, and vehicles are roadworthy. In short, it is advisable to have an auditable trail of vehicle documentation in place.

BAD FOR SAFETY AND THE PLANET In many cases, staff using their own car for business are driving old cars that are not equipped with the very latest safety features, such as electronic stability control and ABS

brakes (a mandatory standard feature on all new cars sold in Europe since 2003).

This means that many cars do not offer the best protection in the event of a crash as determined by the European New Car Assessment Programme ratings.

Another area of concern is the environmental credentials of grey fleet vehicles.

ACFO evidence, and that from other studies, suggests that where employees have given up a company car and now drive their own car on business, emission levels could be around 20 g/km of CO2 higher than the car they gave up.

TAKING ACTION While it is clearly possible to manage grey fleets effectively, there is a vast wealth of evidence that suggests many organisations in both the public and private sectors struggle to do so. This can be for a variety of reasons but they include a shortage of expertise, a lack of resource and the difficulty of monitoring vehicles not directly owned or managed by an organisation.

Nevertheless, it is equally clear that employers that pro-actively manage their grey fleet see a reduction in their carbon footprint, are reducing their risk exposure and almost certainly are cutting costs.

Grey Fleet

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IT HAS BECOME VERY CLEAR THAT GREY FLEET IS NOT AN ‘OUT-OF-SIGHT, OUT-OF-MIND’ ISSUE AS SOME EMPLOYERS THOUGHT – EXACTLY THE SAME MANAGEMENT RESPONSIBILITIES APPLY

BUSINESS SO HOW TO YOU TAKE CONTROL OF YOUR GREY FLEET? Firstly check the capability of employees to drive – don’t just assume that because they have a licence they can. Do this by checking licence validity with the DVLA. Also check that correct business insurance is in place on the vehicle, ensure the vehicle is fit for purpose for the job, and check the validity of the vehicle service and MoT documentation.

Secondly, as a condition of employment ask employees to sign a declaration every sixmonths to confirm all the above.

Thirdly, the company fleet policy should state that grey fleet drivers are responsible for ensuring that their vehicle complies with road traffic legislation, is maintained in accordance with manufacturer recommendations, is safe, roadworthy and fit for purpose.

Employers should manage employees’ journeys, which could mean trips being authorised, and improve appointment scheduling to reduce mileage.

Companies should also audit grey fleet mileage to eliminate so-called ‘ghost’ journeys and cap the business mileage allowed in a grey fleet vehicle. If above a pre-set threshold then employees must take a company car or have access to a rental vehicle/pool car or public

transport and video/teleconference alternatives.

Other tips include capping the age and CO2 emissions of privately-owned vehicles, introducing a programme of regular spot checks on grey fleet vehicles, and communicating with grey fleet drivers about company policy and procedures.

FOR MORE INFORMATION For further information and to obtain a copy of ACFO’s Best Practice Guide to Employee Driving Document Checking, which is available free of charge on request, go to www.acfo.org, e-mail info@acfo.org, or telephone 01730 260162.

SIX TOP TIPS FOR MANAGING GREY FLEET PUT IN PLACE A POLICY The policy should state that drivers are responsible for ensuring their vehicle complies with road traffic legislation, is safe, roadworthy, and fit for purpose.

Get them to sign a declaration to confirm the above

CHECK DOCUMENTATION Check the capability of employees to drive – don’t just assume that because they have a licence they can. Check validity of documents, such as driving licence, vehicle service, MoT and business insurance

REDUCE MILEAGE Cap the business mileage allowed – if above the threshold then employees must take a company car, pool car or public transport or have access to alternatives such as video/phone conferencing

MANAGE JOURNEYS Manage employees’ journeys, which could include trips being authorised and encourage improved appointment scheduling. Audit grey fleet mileage to eliminate so-called ‘ghost’ journeys

VEHICLE CRITERIA Cap the age and CO2 emissions of privately-owned vehicles allowed to be driven on business and introduce a programme of regular spot checks on grey fleet vehicles to ensure they are in order

COMMUNICATION Communicate with grey fleet drivers – do not assume that they know the company policy and procedures. This should include all forms of communication such as face-to-face, e-mail, posters

11

Vehicle Focus

GREENFLEET GUIDE TO FLEET MANAGEMENT – www.greenfleet.net

DRESS-UP YOUR FLEET WITH THE GIULIETTA The Alfa Romeo Giulietta has bags of driver appeal, sporty performance and Italian style – combined with those fleet essentials: safety, low-running costs and low emissions Coming from a rich racing heritage, Alfa Romeo cars have always encompassed a passion for motoring and high performance.

But in the modern world of fleet management, the requirement is for cars to be safe, secure, economical, and non-polluting.

So is it possible to combine these two different worlds? The answer lies with the Alfa Giulietta, which allows drivers to enjoy Italian style, performance, and passion – with high levels of practicality, safety and reduced emissions. A range of six turbocharged, Euro 5 compliant engines – three petrol and three diesel – offers CO2 emissions as low as 114g/ km and fuel consumption as impressive as 64.2mpg (combined) for the 1.6 JTDM-2.

The Giulietta is best-in-class for emissions, acceleration and fuel consumption; Even the 1.4-litre has an impressive 120bhp, while the new 1.4-litre TB MultiAir 170bhp offers the lowest emissions and fuel consumption in its class for petrol engines of this power rating.

THE NEW ARRIVAL This February, the Alfa range has been boosted by the addition of another ultra frugal yet high performing second generation MultiJet diesel engine – the new 2.0 JTDM-2 140 bhp.

It is an ideal engine for company car drivers requiring low fuel consumption and low running costs combined with driving comfort for long trips. The latest generation JTDM-2 MultiJet Common Rail system, combined with

12

an electronically controlled variable geometry turbocharger, guarantees excellent torque delivery: 350 Nm at just 1750 rpm (with the D.N.A. selector in Dynamic position) and 320 Nm at 1500 rpm (in Normal) – giving it the highest torque in its class compared to similarly efficient and powerful engines. It has a top speed of 127 mph and acceleration from 0–62 mph in nine seconds.

Yet while performance is high, the new Giulietta also enjoys reduced CO2 emissions from 124g/km to 119 g/km and reduced fuel consumption from 60.1mpg to 62.8 mpg in the combined cycle.

KEEPING COSTS DOWN The engine is designed for customers who appreciate excellent throttle response but are also concerned with fuel consumption and running costs. In real terms, with a 13 per cent Benefit in Kind rate, 40 per cent tax bracket company car drivers will pay as little as £90 a month in company car tax for the Lusso trim version.

On the theme of environmental respect, the engine is Euro 5 compliant and is equipped with Diesel Particulate Filter, Start&Stop technology, and gearshift indicator to enable drivers to achieve the best economy possible.

Moreover, it has a close coupled diesel particulate filter and a built-in Exhaust Gas Recirculation system that improves control of temperature and gas flow, simultaneously

guaranteeing lower emissions and reduced fuel consumption.

Lastly, the 2.0 JTDM-2 140 bhp boasts a particularly long servicing interval, minimising the amount of work required on the vehicle during its life cycle and cutting its running costs. The fact that the car only needs servicing every 21,000 miles is a testament to the high quality levels achieved and the efforts made to improve durability and efficiency even further, by means of careful work on individual components.

IT’S IN THE D.N.A All models are fitted with Alfa Romeo’s D.N.A. system which allows the driver to tailor the car’s responses to different driving styles and road conditions. For sporty reactions, it offers Dynamic mode, for the urban environment, there’s Normal mode and All-Weather is for maximum safety in low grip conditions.

By simply moving the switch to Dynamic, the VDC and Anti-Slip Regulation become less intrusive, the engine is made more responsive, the steering enjoys less power assistance for a sportier feel. D.N.A.’s Dynamic setting also activates a new function called Pre-Fill. This has been designed to give the brake pedal the feel of a racing car. It recognises that the driver is about to brake when the accelerator is released and increases the pressure inside the braking system by between five and seven bars. This reduces pedal travel by 30 per cent

Vehicle Focus and ensures quicker braking response. On its third setting, All-Weather, DNA makes the ASR more responsive and ensures the Giulietta is easier to control on low grip surfaces.

HIGH SPECIFICATION The new Giulietta isn’t just about being fun to drive. Each trim level, from the entry-level Turismo specification to the range-topping Cloverleaf, has a very high level of standard equipment. Electric windows, manual air conditioning and electrically heated and adjustable door mirrors are all standard.

Move up to the Lusso trim and you get dual zone automatic climate control, fog lights, Visibility Pack, leather steering wheel with audio controls and the Blue&Me™ hands-free infotainment system.

The Veloce trim features sports suspension for the more enthusiastic driver, while the Cloverleaf has a 10mm lower ride height for a more involving drive and a racier appearance.

Whichever the trim level, owners will get one of the safest cars on the road. The new Alfa Giulietta was recently awarded a Euro NCAP five-star crash safety rating with an overall score of 87/100: an impressive result that makes it the safest compact car built to date.

A FAVOURITE WITH FLEETS Alfa Romeo is an increasingly popular brand with fleets, providing the level of choice and driver appeal that HR directors need to attract key staff, while providing finance directors with the assurance that costs will remain under control. These qualities have not gone unnoticed by the many fleet industry commentators whose observations form fleet opinion among contract hire companies and the whole-life cost guides.

Martin Ward, manufacturer relationship manager at CAP, said: “The Giulietta looks

great from all angles and in proportion.

Interior quality and some of the fit and finish is almost up to German standards. “It drives and handles as you would expect from the Italian sports car manufacturer – brilliant.

“It has a good choice of petrol and diesel engines that have low CO2 figures, especially the 1.6 JTDM-2 that is only 114g/km. A refreshing change to see a C-sector car that has character and personality. Rear LED lights look brilliant and very distinctive.”

Alan Senior, director of Vehicle Information Publishing said: “The MiTo has had some success into fleets with its cheeky image and the Giulietta could follow in its footsteps.

There are great opportunities for Alfa to have a much larger stake in the fleet market as they now have a real competitor to the mainstream offerings. With evocative styling that reflects the original 60s models along with very competitive CO2 outputs, this should be a winner.”

The range is priced from £16,995-£24,495, with the 2.0 JTDM-2 Lusso costing £20,750.00.

FOR MORE INFORMATION Web: www. alfaromeo.co.uk/corporate Tel: 08446 623622

VEHICLE COMPARISON TABLE

P11d Value CO2

Alfa Romeo Giulletta JTDM-2 Lusso 140 5 dr, 2.0 DT 6 sp

Audi A3 Sportback TDI SE 140 5 dr, 2.0 DT 6 sp

Volkswagen Golf Match TDI 140 5 dr, 2.0 DT 6 sp

BMW 1 Series 118d SE 5 dr, 2.0 DT 6 sp

Vauxhall Astra SE CDTi 160 5 dr, 2.0 DT 6 sp

£20,695

£21,410

£20,850

£22,190

£22,415

119

115

126

119

129

Combined MPG

62.8

64.2

58.9

62.8

57.6

BIK %

13%

13%

18%

13%

18%

Monthly BIK @ 20%/40%

£45/£90

£46/£93

£63/£125

£48/£96

£67/£134

Bluetooth Phone Preparation

n

£250

n

£545

£220

Climate Control

n

£385

£450

n

£305

Cruise Control

n

£220

n

£220

n

Front Fog Lights

n

n

£230

n

n

n Standard Spec

Source: KeeRecources’ KWICKcarcost as at March 2011

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Health & Safety

GREENFLEET GUIDE TO FLEET MANAGEMENT – www.greenfleet.net

DRIVER RISK MANAGEMENT As an employer, you have a duty of care towards your drivers. Having a driver risk management strategy in place can help mitigate the risks

Writen by Simon Elstow, head of training, the Institute of Advanced Motorists Driving today is not what it used to be: crowded roads, hectic and pressured lifestyles – and everyone in such a hurry to reach their destination. Business drivers in particular spend long days behind the wheel and inevitably drive when tired. So it’s not surprising that these pressures feed into driving behaviour.

Too often, large fleets suffer significant losses due to poorly trained or educated drivers. These include damaged product, additional labour, warranty claims and excessive fuel costs.

One in three accidents involve someone driving at work. With this statistic so high, it’s imperative that an organisation has a Driver Risk Management (DRM) strategy in place as a duty of care to their employees. However this is often over-looked. Duty of care applies as much to high-mileage company drivers, including commercial vehicle drivers, as it does office-based staff.

SERIOUS BUSINESS Some employers have a false belief that they can adequately safeguard their employees and others whilst on the road as long as their vehicles have valid insurance and MOT, and that drivers hold a valid driving licence.

However this is a blinkered way of looking at road safety and doesn’t comply with legislation.

Health and safety law applies to on-the-road work activities as it does all work activities, and the risks should be effectively managed within a health and safety management system. Thankfully with the introduction of For the the Corporate latest GreenFleet Manslaughter and news, events and Corporate Homicide features please visit Act 2007, which www.green came into force in fleet.net April 2008, there has been a greater consciousness of driver risk management from employers.

This aside, many

businesses are now seeing the link between improving driving skills for their employees with fewer crashes, lower insurance and improved fuel consumption to name a few.

The business world is also becoming more socially responsible and are beginning to understand that the care of their employees is extremely important.

CONSCIENTIOUS DRIVERS Although these days you’re pretty unlikely to see insurance premiums decrease year on year, you can at least slow down the rate of increase and reduce excess levels if you improve your claims record. Drivers with better attitude also look after their vehicles more carefully, often making them worth more at disposal time. It’s been proven time and time again that trained drivers use less fuel too and cause less wear and tear to items like tyres and brakes.

Driver Risk Management is essentially a ‘no-brainer’ for employers as the actual costs of road accidents are almost always higher than just the costs of repairs and insurance claims. These costs to smaller businesses and those that are self-employed are even greater.

Therefore whatever the size of your business it makes financial sense to invest in DRM strategy, before you face hefty costs.

KNOW YOUR DRIVERS No one Driver Risk Management strategy fits all. Every company is unique and a DRM strategy should be tailored to suit each company, based on a range of different factors.

These include accident data, type of journeys and mileage, what type of vehicle is being used and what hours the drivers are doing.

Businesses can seek expert advice to help them find the best and most cost effective DRM programme for them.

An online driver risk assessment should be the first step in establishing an employee’s current work commitments and the driving skills they have, and require.

The assessment can help determine driver risk profiles and propose actions to lessen this risk by preparing a DRM programme suited to

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E VOLV N I S T G EN ACCID NE DRIVIN O SOME WORK AT

each individual.

This would produce an auditable trail for companies and also meet health and safety legislation. Medium and low risk profiles may not need immediate on road accompanied coaching, and may be suited to completing online e-learning modules which can be tailored to suit driver’s individual needs and act as a refresher for a driver’s understanding of good road craft and road regulations.

Where budgets are tight, e-learning could also be used to ensure staff are still provided with essential training to do their job safely and effectively.

For those that are judged as high-risk, hands-on training in real life situations, under the guidance of a qualified trainer, is the best learning tool a driver can have.

Training should focus on developing the core skills required to complete a task safely.

Tailored training can see each driver’s skills maximised, from LGV drivers through to infrequent grey fleet drivers.

Another integral part of managing the risk of your drivers is to ensure they are fully educated on driving in adverse weather conditions. With heavy snow occurring more regularly in Britain, drivers need to know how to cope. But it’s not just snow that causes problems; fog and flooding is also a problem on the roads and drivers should be educated on how to drive in these conditions.

FOR MORE INFORMATION Web: www.iamdriveandsurvive.co.uk www.iam.org.uk Tel: 0870 120 2910.

QUESTIONS TO ASK WHEN DEVELOPING A DRIVER RISK PROFILE:

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Does the driver have an accident history?

Does the driver have points on his/her licence?

What type of journeys does the employee do?

What type of vehicle is being used?

What hours is the driver doing?

Has the driver had any recent training?

Blue&Me Hands-Free Entertainment System

New Piano black bumpers

15” alloy wheels

Start&STOP

Air conditioning

New punto mylife. high tech, human touch.

The new Punto MyLife. With enhanceD looks and comfort to perfectly suit business users. For more information visit fiat.co.uk/fleet or call our business centre on 08446 623 622 †

fiat.co.uk

Fiat, the car brand with the lowest average CO2 emissions in Europe . Fuel consumption figures for the Fiat Punto MyLife 1.2 8v mpg (l/100km) and CO2 emissions: Urban 42.4 (6.7), Extra Urban 64.2 (4.4), Combined 54.3 (5.2), CO2 emissions 123 g/km.

Source: JATO Dynamics. Based on Volume-weighted average CO2 emissions (g/km) of the best selling brands in Europe, 1st half 2010.

†