With insurance being the third biggest component of a fleet’s Total Cost of Ownership (TCO), any changes in this area will have a substantial impact on your total fleet spend. And many changes are afoot! Disruptive trends such as digitalisation, the internet-of-things and disintermediation of brokers, to name a few. Surprisingly, so far little has been written about fleet insurance to date. Although some universal parallels exist with the larger insurance landscape, there are some very specific trends that are reshaping this industry.
Welcome to Global Fleet Insights; a blog developed and managed by LeasePlan International. Our blog, which focuses on all aspects of international fleet management, is designed to be a platform for the sharing of developments as well as best practices in international fleet management.
Following last year’s Technology Industry Benchmark we are pleased to share with you LeasePlan’s latest benchmark on the Consumer Goods industry. With benchmarking, organisations evaluate various aspects of their company car policy and fleet processes in comparison to industry peers. This allows organizations to develop improvement plans or adapt specific best practices, usually with the aim of increasing the performance of the business. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to improve their practices. Companies in the Consumer Goods Industry are active in daily life products, such as health care products, cosmetics and food.This industry benchmark is based on client research, LeasePlan’s fleet data and our own expertise. This infographic shows the consolidated results over the countries in scope.
Following a number of game-changing occurrences in 2015, including over-exceeding the Kyoto target, the Paris Climate Summit, ‘Diesel Gate’ and falling oil prices, it was to be expected that governments would be looking at legislative changes that will also impact car use. So far, most measures that governments have taken are related to the purchase of low-emission vehicles, excise duty on fuel prices and taxation of private usage of company cars. But, numerous cities – like Oslo* – are now also reviewing the possibilities of banning vehicles (or certain ones at least) from their city centers.
Autonomous driving technologies are developing fast. But, despite the buzz around the potential impact of self-driving options, aspects such as timing, uptake and penetration remain hard to predict. The new technologies that make autonomous driving possible also bring with them possibilities for completely new mobility models and services. In addition, developments based on networks, sensors, mobile communication, real-time information, and new levels of connectivity are changing our view on mobility. It is expected that autonomous vehicles (AVs) will open up the way for on-demand driving solutions: a car when and where it is needed. But, the big question that is begging for an answer is how and in what measure these disruptive technologies could impact fleet.
If you suspect that car costs are higher in certain European countries than in others, you’re right. But, in what measure do they differ? And how do cost variations in different countries weigh up to each other? Now, a study by LeasePlan of car costs in 11 European countries reveals that the cost of driving a car can vary as much as € 350 from one country to the next, with the Netherlands topping the list as most expensive country.
Each year at the beginning of March the hearts of automotive fans around the globe start beating faster. It’s the time when a beautiful city located in the south-west end of Switzerland transforms into one of the busiest places in Europe, hosting all the major vehicle manufacturers and automotive designers. It is when the Geneva Motor Show takes place hosting some 200 exhibitors from 30 countries. Up to 700,000 visitors are expected to attend the show over eleven days and to visit over 77,000 square meters of Palexpo exhibition space, where over 120 World and European premiers are presented. This year again LeasePlan was there to report on the 86th edition of one of the most important international auto shows.
The International Accounting Standards Board (IASB), responsible for issuing International Financial Reporting Standards (IFRS), has recently launched a new standard for lease accounting. This new standard will also change how accounting for international fleets carried out. Although it will take until 1 January 2019 for these rules to become effective, some companies will already need to adjust their reporting (for operational leases) by the end of 2017! Here are 6 questions about the new lease accounting standards that are relevant for all international fleet managers:
Keeping your commercial vehicle fleet up and running is one of your major spends – probably only just behind salaries and premises. So, of course, the spotlight is permanently on LCV fleet costs. Vehicle purchase price and estimated maintenance costs are usually the decision drivers. However, at LeasePlan we recently found that companies might be missing out on some significant cost saving opportunities by focusing primarily on such costs.
Fleet is not a commodity; it is a key category as the performance of an organisation’s fleet has a significant impact on its business effectiveness. It is therefore vital to select the right supplier to support you in managing your fleet needs.
In our last blog post in this series we talked about how data-driven insights help drive Global Fleet Management value. But getting hold of those insights is just the start. To actually start getting value from them, you need to turn this knowledge into action. So what skills do you need to do this? And what’s the best way to get them?