Arval Archives - Fleet Summit
  • Covid-19 – click here for the latest updates from Forum Events & Media Group Ltd

Posts Tagged :

Arval

EVs attracting drivers back to company car schemes

960 640 Stuart O'Brien

Employees who have previously taken cash options are returning to company car schemes in “noticeable” numbers thanks to electric vehicles (EVs), reports Arval UK.
 
Shaun Sadlier, head of consulting at Arval UK, said this was something that was predicted when the latest zero and low benefit-in-kind rates for EVs were unveiled in 2019, but is now becoming increasingly more apparent:
 
“Many cash takers liked their company car but didn’t like paying what they perceived as high benefit-in-kind and that was why they opted-out. Now, with low benefit-in-kind in place for EVs for at least five years, many more are now returning to company car schemes.
 
“We predicted that this would start to happen some time ago, but it’s now becoming noticeable In several of the major fleets with which we work. It’s a welcome development that will feed demand for zero-emission vehicles and lead to wider, faster adoption.”
 
Sadlier added that, while benefit-in-kind was the key attractor in choosing a zero emission vehicle, there were also a range of other factors in play.
 
“If you talk to fleet managers and their drivers, there’s a lot of enthusiasm around the vehicles themselves. It’s as simple as many people really liking EVs as their day-to-day mode of transport. We are beyond the early adopter phase and heading into mass-acceptance.
 
“All it takes is a couple of EVs on a fleet to disprove the reservations some people hold about these vehicles. They can see that misgivings such as range anxiety are actually of limited importance for the vast number of journeys that are made.
 
Arval UK recently updated its own company car scheme to increase adoption of EVs and the move paid off with almost two thirds of its company car drivers making the switch so far. 
 
“All of our consultants and many of our sales team have switched to EVs. They act as ambassadors for the technology, developing personal experience to share with customers, friends and family – as more people drive EVs, consumer confidence will increase. Coupled with the growing number of different models that are available, plus the recent 2030 announcement, it’s not an exaggeration to say that we can all play our part in a zero-emission future and choosing an EV is a step in that direction.”

Almost half of Arval staff already go electric through “rewired” company car scheme

899 599 Stuart O'Brien

Almost half of the more than 200 Arval staff who qualify for a company car have already switched to an electric vehicle (EV) since the launch of a new scheme in May.

The rethink is aimed at speeding up fleet electrification in order to reduce emissions, to showcase best practice and to educate drivers about the increased choice of EVs and improved charging infrastructure now available, explained Arval UK HR Director, Ailsa Firth.

She said: “We’re regularly providing advice to customers who want a rapid switch to electrification for a large proportion of their fleet. Our own company car scheme has now turned that guidance into reality, to act as a real life case study from which others can learn. 

“We completely rewired our approach, taking into account factors such as cost, choice and CSR, to create a scheme that covers the vast majority of EVs currently available on the market, alongside hybrids, petrol and diesel vehicles.

“Much work has gone into the structure of these choice lists, as well as ensuring that other key factors that make up our company car scheme, such as cash allowances, whole life cost allowances and whole life methodology, are incorporated into our latest thinking.

“Especially, with the 0% benefit-in-kind taxation rate in effect for the 2020-21 tax year, we expect EV uptake among employees to continue to be very high.”

Under the new scheme, drivers can switch to an EV if their current company vehicle is more than 18 months old and Arval is also offering employees free use of more than 40 charging points at its Swindon head office.

Changes to Arval’s Ignition salary sacrifice scheme have also ensured that all employees can access EVs and low-emission vehicles at attractive monthly rates, regardless of grade or benefit package.

“For a 40% taxpayer, we can provide an electric hatchback at around half what they would expect to pay otherwise. Salary sacrifice schemes make a lot of sense at the moment and take-up has been high,” added Ailsa.

Contract hire expected to ‘leap’ for company vehicles

960 640 Stuart O'Brien

A leap may be about to occur in the use of operational leasing as a means of acquiring company cars and vans, according to new research from Arval Mobility Observatory.
 
When asked whether they intended to introduce or increase use of operational leasing, also known as contract hire, in the next three years, more than a quarter (26%) of fleets said yes, compared to just over one in 10 (12%) when the same question was posed in 2019*.
 
Shaun Sadlier, head of Arval Mobility Observatory in the UK, said: “These responses indicate more than a doubling of the overall tendency, year-on-year, to increase the use of operational leasing, or contract hire as it’s also known.
 
“This method of acquisition has been gradually increasing across the market for a long time but it’s been a gradual change over decades. Here, we see signs of a potential leap forwards rather than further incremental steps. The movements are large enough to suggest a genuine shift in attitude.”
 
The move was marked across organisations of all sizes except for the very smallest, he added, with the trend clear across all businesses with more than 10 employees.
 
“At the largest scale, 38% of businesses with more than 1,000 employees now say they would implement or increase the use of operational leasing compared to 17% when asked the same question in 2019.
 
“However, for those with 10-99 employees, the change is even more marked, with a rise from 8% to 31% year-on-year, which is just under a fourfold improvement. It’s pretty dramatic.”
 
Sadlier explained that operational leasing had very clear advantages – predictable costs, the avoidance of residual value risk, easy packaging with other key vehicle services and more – and one or all of these factors appeared to be gaining favour. 
 
“What is also interesting is that this research was carried out before the coronavirus crisis. In a business future where there will undoubtedly be increased and perhaps substantial pressure on company budgets in the short and medium terms at the very least, there is every chance that operational leasing will look even more appealing to fleet and mobility decision makers.” 
 
For the 2020 edition of its Fleet Barometer, the Arval Mobility Observatory this year questioned 5,600 businesses in 20 European countries, posing a wide range of questions covering current fleet and mobility trends.
 
More information on the research project can be downloaded from arval.co.uk/amo-insight

Clean Air Zones to impact 40% of businesses, research shows

960 640 Stuart O'Brien

More than four out of 10 businesses (43%) believe they will be affected by the introduction of Clean Air Zones (CAZ) across the UK and the Ultra-Low Emissions Zone (ULEZ) in London, 

The findings stem from the 2020 Arval Mobility Observatory, which gains insights into fleet and mobility trends across the UK and Europe through a wide ranging set of questions.

It also asked respondents how they will react to the introduction of CAZs and the ULEZ. In total, 76% said they will replace vehicles to meet the new standards, 27% will find other types of transportation to allow them to continue doing business within the zones, and 27% will make no changes, accepting the impact and cost.

Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “These results indicate the ways in which fleets are planning to manage the introduction of the new zones across the country although, of course, many have now been delayed by the coronavirus crisis.

“Overall, more than four out of 10 believe they will be affected and, of these, around three out of four plan to meet the challenge by operating vehicles that meet whatever new regulations are being introduced.

“To us, this is unsurprising. In most places, the introduction of CAZs are really designed to remove vehicles that use older, less clean emissions technology from cities. The truth is that because the regulations are relatively straightforward, many fleets are already compliant. Over the next couple of years, just through normal, planned replacement of vehicles, most should meet the regulations.

“It’s also thought-provoking to see that around a quarter are planning to use alternative modes of transport. It would be fascinating to know what these are, especially whether some fleets are going to be able to make a switch into public transport or other mobility options.”

Fleet managers reveal their major future challenges

960 640 Stuart O'Brien

Road infrastructure, Clean Air Zones and the adoption of alternative fuels top the list of challenges faced by UK fleet and mobility managers over the next five years, according to authoritative new research.

The findings come from Arval Mobility Observatory, which gains insight from businesses through a wide ranging set of questions designed to uncover broader trends and concerns.

When asked, “What do you see as the main challenges facing fleets in the next five years?”, 43% of respondents cited a lack of road infrastructure as the top issue. The introduction of more Clean Air Zones in urban areas (30%) and the implementation of suitable alternative fuel technologies (30%) followed, while unclear Government policy towards transport (27%), increased vehicle taxation (23%) and increased driver personal taxation (16%) were also reported as key issues.

Shaun Sadlier (pictured), Head of Arval Mobility Observatory in the UK, said: “It’s clear that businesses are thinking very hard about the practicalities surrounding the day-to-day use of cars and vans, as shown in their concerns over road infrastructure and Clean Air Zones.

“The latter especially is a subject that is potentially quite confusing, with a whole range of different measures being adopted across the country and some now being delayed by the coronavirus crisis. This complexity might be the cause of fleet manager concerns.”

Related to clean air, he said, was the implementation of alternative fuel technology which, for the vast majority of fleets during the next five years, would mean electric and plug-in cars and vans. 

“This is a major shift but our experience is that the transition turns out to be relatively painless in the real world and brings a wide range of benefits for businesses and drivers. Certainly, conditions for adoption get easier all the time.”

‘The Journey Goes On’ launched to support fleet emergence from lockdown

960 640 Stuart O'Brien

An initiative called ‘The Journey Goes On‘ has been launched by Arval to support customers in its eight largest territories – France, Italy, UK, Spain, Germany, Netherlands, Poland and Belgium. 

It sets out to provide a range of safe, sustainable and cost-effective mobility solutions as businesses emerge from lockdown.

Alain van Groenendael, Group Chairman and CEO at Arval, explained: “Now, more than ever, we believe that our mission is to help our customers, their drivers and individuals, to face the new journey in which we are all engaging. They are calling for more flexibility as well as more safety. We want to be there for them, and that’s what ‘The Journey Goes On’ is all about.”

The programme is built on three main pillars to tailor Arval’s leasing operations for businesses as they recover from COVID. Firstly, procedures have been adapted to comply with social distancing and driver safety with car pick-up and delivery at home or to offices, onsite maintainance and increased car sanitisation.

Flexible, shorter-term leasing solutions are also available immediately to help businesses restart, a large range of vehicles are immediately available for leasing for just a few months, aimed at ensuring businesses have the mobility solutions in place to get back on their feet and keep their employees safe. 

Finally, sustainable, alternative mobility options such as EVs and, in the future potentially, e-bikes will help businesses continue to transition to more environmentally-friendly fleets. 

Alain continued: “With the current situation, leasing makes even more sense in this period of uncertainty. Arval believes more people will benefit from these safe, convenient solutions from ‘The Journey Goes On’ for their mobility.”

For more information about the initiative, visit https://www.arval.co.uk/the-journey-goes-on.

What coming out of lockdown means for electrification in fleets

960 640 Guest Post

By Shaun Sadlier, Head of Consultancy, Arval UK

The moment before lockdown perhaps now seems like a long time ago but, if you cast your mind back to early March, there was much excited talk about the prospects for electric vehicles on UK fleets.

Chancellor Rishi Sunak had just announced a three-pronged commitment from the government to support the EV market – advantageous tax measures for businesses, similar benefits for drivers, and expenditure to support the growth of the charging infrastructure. A whole raft of new EVs were announced that looked set to assist in broadening the fleet appeal of electric cars for fleets and drivers. It seemed as though the moment had come for EVs to become mainstream company cars.

Then coronavirus happened. The question now is, will the lockdown and the “new normal” that follows affect the prospects for electrification?

To answer, we need to ask what has changed for fleets over the last few months? Initial feedback from businesses suggests that there is a refocussing of priorities. While few are signalling any reduction in numbers of vehicles, many will be putting a focus on costs. With this in mind, we at Arval UK see no reason why fleets should waver in their drive towards EV adoption. Indeed, there are factors that may make corporate commitment to zero emissions vehicles even stronger. 

Firstly, the tax incentives and other measures that the Government announced pre-crisis remain in place and are still highly attractive from a financial point of view.

Secondly, while the purchase price of EVs are generally high compared to petrol and diesel cars, our experience at Arval UK is that the total real world running costs are highly competitive and, in some cases, better than internal combustion engine alternatives. This is something that may not yet be widely understood but we are planning wider education to make this point explicit.

Lastly, the desire for businesses to reduce their carbon footprint and work towards reduced emissions is unlikely to be changed by coronavirus and there may even be a shift towards placing greater emphasis on these areas as a result of the crisis, to come back better than before – an intention we’ve heard from many of our customers.

So, overall, while there may be a slight delay in the drive towards electrification, the direction of travel hasn’t changed at all, something that we very much welcome. Our view is that electrification is good for businesses, their drivers and the planet. The current crisis hasn’t changed these facts.

Most wanted fleet ADAS devices revealed

960 640 Stuart O'Brien

Collision avoidance and emergency braking head the list of advanced driver assistance (ADAS) systems desired by fleet and mobility managers on company cars.

That’s according to new research from Arval, which reveals 49% ranked collision avoidance or warning systems in top place, followed by automatic emergency or braking systems (46%), pedestrian detection systems (38%), lane departure warning systems (30%), driver fatigue warning systems (30%), automatic parking systems (20%) and adaptive cruise control (15%).

The findings come from the 2019 edition of Arval Mobility Observatory, which covers 3,930 fleets and asks a wide ranging set of questions about fleet and mobility trends.

The research also looked at the measures taken by employers to minimise road risk. The most common is a risk assessment (61%) followed by a safety communication programme (35%), on-road training (33%) and classroom training (22%).

However, there is a wide variance between the smallest and largest businesses. For example, 84% of those with more than 1,000 employees carry out risk assessments compared to 32% with fewer than 10 employees. The difference is even more marked for on-road training, with 62% against 11%.

Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “ADAS systems are becoming very common on company cars but they are something of an issue for fleets in that there is very little reliable information available about which work best in terms of actually helping drivers avoid accidents.

“What this research represents is therefore really a list of which devices fleet and mobility managers believe will be most useful in real world conditions – and what it indicates they want more than anything is to avoid collisions with other vehicles and pedestrians.

“Our view is that ADAS technology works best in promoting safety when used alongside telematics devices that allow driver behaviour to be highlighted, helping employees to make improvements both by themselves and through options such as training.”

Most useful systems to improve driver safety

Collision avoidance or warning systems                                     49%

Automatic emergency or braking system                                    46%

Pedestrian detection system                                                          38%

Lane departure warning system                                                   30%

Driver fatigue warning system                                                      30%

Automatic parking systems                                                            20%

Adaptive cruise control                                                                   15%


Measures taken to minimise road risk

                                                All       Fewer than                10-99             100-999         More than 1000
                                                            10 employees          employees    employees    employees

Risk 
assessment                          61%                32%                62%                79%                84%

Communication
programme                           35%                12%                35%                47%                57%

On-road
training                                  33%                11%                26%                43%                62%

Classroom
training                                  26%                8%                  32%                37%                38%

Third of fleets impacted by Clean Air Zones

960 640 Stuart O'Brien

More than one-third of fleets (35%) expect to be impacted by the introduction of Clean Air Zones and the London Ultra Low Emissions Zone.

In response, fleet and mobility managers questioned envisage a range of actions – 20% plan to replace their current vehicles with those that meet the standards of each zone, 13% to make no changes and accept the impact on their fleets and 12% to seek other methods of transportation within the zones.

That’s according to new research from Arval, though it says there is some difference in actions considered depending on the size of the businesses involved. For example, when looking at which fleets plan to replace their cars and vans, there is quite a wide variance – 25% of businesses with more than 1,000 employees, compared to 22% of those with 100-999 employees, 19% of 10-99 employees and 16% with fewer than 10 employees.

The findings come from the 2019 edition of Arval Mobility Observatory, which covers 3,930 fleets and asks a wide ranging set of questions about fleet and mobility trends.

The research also looked at the potential impact of any planned new toll roads being built in the UK and their likely use by fleets. In total, 51% said they would encourage their drivers to use the tolls and reclaim the cost while 26% considered it the responsibility of the driver to choose whether to use tolls at their own expense.

Again, there is quite a wide difference in attitudes among organisations of varying sizes, with almost twice as many businesses with more than 1,000 employees (35%) considering it up to drivers to pay for tolls than those with fewer than 10 employees (18%), who in turn are more likely to reimburse their drivers (59%) than their larger counterparts (45%).

Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “There has been quite a lot of debate around the likely impact of Clean Air Zones and the Ultra Low Emissions Zone, with some criticism that they don’t go far enough in enforcing low emissions standards.

“However, this research indicates that they are likely to change the behaviour of a relatively large number of businesses, whether that means operating greener vehicles or changing their transport options within the zone.”

He added that the attitudes that fleets have revealed towards toll roads were also interesting.

“This shows that more than half of businesses questioned would actively pay for tolls, presumably in the expectation that they are reasonably priced and will help to make their transport faster and more efficient.

“For us, this is further evidence of the concern that employers have about the impact of congestion on their operations, something that is seen elsewhere in our research.”

Image by Andreas Lischka from Pixabay

‘Terrible’ road conditions & congestion top fleet manager concerns

960 640 Stuart O'Brien

Fleet and mobility managers want the Government to tackle terrible road conditions and congestion.

That’s according to research from Arval, which revealed that of nearly 4,000 fleet mangers polled, over half the respondents (54 per cent) said that they wanted to see better roads, with 47 per cent asking for a solution to congestion.

30 per cent of those polled supported incentivising companies to adopt newer fuel options such as electric and hydrogen and improving public transport (22 percent).
 
18 per cent of fleet and mobility managers also believe that Government should be doing more to reduce pollution caused by road transport.
 
The findings come from the 2019 edition of Arval Mobility Observatory, research which covers 3,930 fleets and asks a wide ranging set of questions about fleet and mobility trends.
 
Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “The striking aspect about the areas highlighted by fleet and mobility managers is that they are all highly practical issues that affect the running of business transport on a day-to-day basis.
 
“The condition of roads and the problem of congestion are a concern because they affect the core efficiency of company transport. Businesses want journeys to be predictable and safe, and poor roads and large volumes of traffic have a negative effect on this aim.
 
“It is also striking the extent to which there is a desire to see Government make the adoption of EVs and hydrogen vehicles easier. There is clearly growing enthusiasm among businesses for these cars and vans, but also an awareness of the need to make their cost and the level of infrastructure support more appealing.
 
“Linked to the adoption of zero-emissions fuels is the belief that more should be being done to tackle road transport-based pollution. Our experience is that businesses are almost always supportive of Government moves to make improvements in this area.
 
“Finally, some people may think it surprising that fleet and mobility managers want to see better public transport but the strategic developments we are seeing in this area show that businesses see the future of travel as being one where cars and vans are used alongside a range of other options. Better trains, trams and buses should form a key part of this mix if possible.”

Image by shilin wang from Pixabay

  • 1
  • 2