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Adapting to change: Electrification and growth in the European fleet industry

By Ralph Gliemann, Director Professional Services, OEConnection

In recent years, there have been substantial advancements that have contributed to the growth of the European fleet. The average vehicle age has steadily increased since 2016, demanding higher levels of service and maintenance. At the same time, there has been a steady decline in privately owned vehicles, impacting the growth in fleets and the need to provide customers with a consistent and dependable stream of vehicles, ones that still need regular servicing, maintenance checks, and adherence to contractual requirements. 

At the same time, the transition to electrified vehicles also plays a critical role, one accelerated by European deadlines to phase out fossil-fuel vehicles. Some manufacturers aim to produce only full-electric vehicles in Europe by 2030. While EVs create new opportunities and reduce maintenance needs, they also pose challenges, such as impacting the growing disparity between current demands for skilled workers and the availability of qualified technicians. This requires fleets and dealerships to adapt business processes, invest in training, and leverage innovative technologies to optimise efficiency and reduce costs.

As fleet operators and lease companies face pressure from all directions, including higher operating costs, skills shortages, and efficiency targets, there is an opportunity around the processing time for authorising the jobs that keep fleet vehicles on the road. SMR, body, glass and MOT are all costly – both in time and money – for suppliers, fast fitters, fleets and lease companies, so making these tasks as efficient as possible is key to remaining competitive. 

As a leading technology provider for the aftersales industry, OEC provides a way forward through our innovative authorisation fleet solutions to help reduce vehicle downtime and processing costs. 

With access to approved data, pricing, labour and parts information directly from the manufacturer, OEC’s fleet solutions provide a line-by-line breakdown and automatic approvals without the need for human interaction, reducing the number of processes and checks in the event of further approval or payment failure. This results in quicker billing, invoicing, and payments for fleet operators.

European OEMs have tested OEC’s solutions, with one manufacturer saving over three million pounds annually and reducing authorisation time by 80%. Faster authorisation leads to quicker repairs, keeping fleets operational. Cutting vehicle downtime is crucial for competitiveness, and these solutions help fleet operators reclaim thousands of working hours each year, enhancing technician and accountant productivity. 

The OEC’s fleets solutions also offer efficiency gains, streamlined administrative tasks, and technician upskilling. By embracing innovation, fleet managers can overcome challenges and embrace new opportunities within the evolving fleet landscape.

Learn more about FleetLink and OEC by visiting: https://oeconnection.com/en_GB/products/fleetlink-leasing-companies/

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