Fuel Prices Drive Behavioural Changes

Pricey : Petrol is at £1.30 per Litre. (Pic: LeasePlan)

The first days of March brought further bad news for motorists across the UK, with major news sites reporting that the average price of a litre of unleaded petrol had reached the £1.30 mark. Overall, the steady rise in fuel prices is a well-documented phenomenon, with a variety of factors, including government tax levels and unrest abroad being blamed for higher costs at the pump.

According to the BBC, car-owners are now beginning to change their driving habits in response to rising petrol prices. Small changes in the way that drivers operate their cars can have a dramatic effect on their weekly fuel spend, and the instantly recognisable savings are a key factor in encouraging many to drive more efficiently.

Simple measures such as pumping up tyres and avoiding excessive revving at traffic lights can, according to the BBC, save £10-£20 per week for the average motorist. For business car drivers covering a greater mileage, this figure could be much greater. This doesn’t just bring economic benefits, it has the added bonus of reducing emissions, which aids the UK’s push for a greener future.

A caveat of this response from the public is that the most effective way of dropping fuel costs – by reducing journeys taken – is simply not an option for business car drivers. In this regard we understand our clients’ predicament and with the average spend at the pump dropping from £25 to £20, it is clear that all motorists, whether private owners or business drivers, are feeling the pinch. This reduction is primarily a result of owners half-filling their cars, and perhaps unwittingly, they are in fact following one of the AA suggestions to reduce the weight of the vehicle to save on costs.

However, this changing behaviour amongst private drivers can, by proxy, convey benefits to business users as a widespread shift in fuel buying habits should encourage manufacturers to push for the development of more fuel-efficient cars, in addition to the production of increasingly popular models of electric vehicles.

While Quentin Wilson’s description of ‘eerily quiet’ motorways may be slightly premature, the future of traditional cars would appear to be dependent on finding more and more ways to squeeze the potential out of every last drop of fuel. If this trend continues, the figure for MPG could well become the first consideration in every consumer’s mind when making a new purchase

The Stuff of Electric Dreams?

Today, the BBC announced an unlikely entrant into the electric vehicle race – Rolls Royce. Famed for cars which epitomise luxury and a degree of excess, it seems an unlikely pairing. In truth, it is just that - the Phantom that was revealed at the Geneva Motor show is, for now, a one-off. While this exercise could be passed off as mere publicity, the fact that the unveiling has been keenly watched by the likes of Maybach and Bentley suggests that what we have been shown here could be a fleeting glimpse of the future.

The question remains, why not? As electric vehicles’ capacities and capabilities grow, it would appear that these top-end vehicles could one day leave fossil fuels behind. Comfort in these cars is crucial, and the traditionally constant battle against engine noise would become obsolete in an electric Phantom or Bentley. The unique levels of torque and rapid acceleration provided by an electric motor would also surely appeal to manufacturers who design these vast vehicles to shift at speeds deemed acceptable by the modern top-level buyer, who demands speed as well as luxury.
 

From Concept to Reality

The model on show is very much a concept car, and with a price tag in the region of £250,000, many would be forgiven for questioning its relevance. It is an expensive statement, but something that it can achieve is to capture the public imagination. If electric cars can be associated with all brands, including those at the top of the automotive tree, then, surely, the concept of electric vehicles as an everyday phenomenon is succeeding. Although still in its early stages, there is also some innovative technology on show with this prototype, including a wireless charging system could remove the need for roadside posts, or dangling extension leads.
 

Crucially, the reaction of Rolls Royce’s competitors should be watched with interest. While there have been positive statements from the likes of Bentley's chief executive Wolfgang Durheimer, speaking to the BBC, commented, “electrification and hybridisation were among the key technologies I introduced at Porsche and I think there is potential for these technologies in Bentleys too.” Dieter Zetsche, the chief executive of Daimler, has been less positive however, suggesting there was no demand for electric Maybachs.
 

Ultimately, it is up to the technology to prove its’ worth, and while we may not all be able to drive Rolls Royces in the future, we can potentially benefit from the change in the perception of electric vehicles that statement prototypes such as this can usher in.

Leasing in the 'Big Society'

Cameron: Service Reforms

Writing in The Telegraph today, David Cameron outlined his vision for the future of public services. At first glance, phrases promising “the decisive end of the old-fashioned, top-down, take-what-you're-given model of public services” seem difficult to decipher, but what is clear is that outsourcing in the public sector, including fleet services, is set to increase.

The Prime Minister goes further in suggesting that services should be offered at the ‘lowest level’ to ensure best value for money. This change towards more specialised and flexible procurement is potentially a big opportunity for both the automotive leasing industry and public sector organisations.

Initiatives such as salary sacrifice are innovative ways of reducing overheads and offering a greater employee benefits package without reducing staff numbers. Similarly, outsourcing provides numerous advantages to public sector bodies seeking to increase efficiency and reduce costs.

The greatest challenge for fleet services providers is to present the case for the most competitive and innovative solutions to public sector challenges.

The Future of Accident Prevention

Every fleet manager dreams of an accident-free fleet, but due to the fact that human beings are involved in driving, it has never quite been a reality. Traditional logic suggests that the easiest way of reducing the number of accidents on the roads would be to limit driver control, but this would often remove the flexibility offered by driving a fully autonomous fleet vehicle.

The BBC has revealed new developments in accident-prevention technology that don’t seek to limit the driver, but instead revolve around some remarkable in-car tech. Imagine a car windscreen that could enhance your vision or brakes that can apply themselves before the driver even realises they are in danger. It sounds like the stuff of science fiction, but both of these technologies, amongst a plethora of others, are already in development.

Technology has an important role to play in safety, and enormous strides have already been taken. If they can be integrated in a cost effective fashion, then these developments could be as important as the three-point seatbelt, or the airbag. But, whilst we certainly look forward to the mass market adoption of next generation safety technologies, we recognise that even those that exist in test scenarios are years away from general availability.

Through our close relationships with major vehicle manufacturers we keep abreast of these developments and monitor progress, and will always ensure the best new technology is available to our fleet buyers. However, in the meantime, we continue to emphasise the importance of regular maintenance, driver training and well defined motor and travel policies as critical to safer driving.

Consumers Ready For Electric Switch?

Vehicle valuation company Glass has carried out a poll of 400 motorists, and has found that public perceptions towards electric vehicles have become much more positive. The survey suggests that a third of motorists are considering buying an electric or hybrid vehicle as their next car, a leap since last year.
 

The government grant is obviously having a positive effect on EVs in the public consciousness. We shouldn’t forget that ensuring major take-up among commercial and public sector fleets is vital to achieving critical mass for EVs as well as public take-up. At the same time, if employees are enthused about EVs, this will help to foster a wholesale change in the way in which fleet buyers consider electric vehicles.
 

Of course the most important factor for EVs’ long-term chances is being to be answer the question: are they practical? Automotive Leasing will be undertaking a detailed pilot of the Nissan Leaf this year which will evaluate their practicality for work travel. We’ll be blogging about it when the scheme is up and running.

2011: Electric Cars’ Time To Shine?

Following the government announcement that 2011 would be the year of the electric car, the BBC has embarked upon a trial to see how easy it is to drive one of these pioneering vehicles between London and Edinburgh. As Automotive Leasing looks to the future with the introduction of the fully electric Nissan Leaf to our range of fleet options, this test will hopefully prove that the electric car has a role to play in greening the future of fleet in the UK.

Long distances have traditionally been one of the main challenges to the proliferation of electric vehicles, and for this reason the test will provide a useful study into the feasibility of electric charging posts. Although many of the miles travelled by public sector workers are accumulated in short local trips, there are those that need to undertake longer journeys on a regular basis as part of their roles. Whilst we’d advocate use of public transport where possible for longer trips, there are many instances when this is not possible or desirable. Therefore, it is important to look at other options that are sustainable and environmentally friendly. Electric vehicles are one potential solution, and testing their effectiveness for longer journeys will be a key part in their adoption. Range, suitability and driver satisfaction will be key assessments as we progress our Nissan Leaf pilot with fleet drivers in the coming months.

Looking forward, Automotive Leasing would hope that with government investment in an electric future, long-distance electric travel could come to represent a genuinely credible, sustainable option for fleet buyers across the UK.

Ever more efficient fleet management in 2011

With the news that councils face a roughly 10 per cent cut in their core central government funding next year, the need for savings is more acute than ever. The challenge is fierce but there are solutions that need not harm frontline services. Outsourcing is going to be a hot theme in 2011 in many areas of service provision. Fleet management is one area that can be outsourced to free up manpower, save money and improve the efficiency of travel policies.