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.

Streamlining for the new realities

As the implications of the Spending Review hit home, the public sector faces the harsh reality of long-term budget constraints and it must make some very difficult decisions about where the axe will fall. With a long-term vision, however, the public sector cuts present an opportunity to reform fleet management, increase efficiency and achieve significant cost savings.

The provision of business travel across the public sector is a likely target for scrutiny and improvement. With changes to taxation, volatile fuel costs, rapid changes in on- and off-vehicle technologies and the ongoing drive to reduce carbon emissions, vehicle use offers significant potential for cutting costs. As budget necessities force the public sector to rethink the status quo, they have an opportunity not only to cut costs, but to implement a more efficient form of fleet management.

In doing so, the public sector can learn from the recent experience of the private sector, which has made significant changes to transport policies resulting in tangible savings and benefits. Automotive Leasing's White Paper, Streamlining for the new realities, looks at the diverse vehicle provision arrangements currently being used in the public sector, examines alternative options and where improvements can be made, and outlines future strategies.

Is the war on the motorist coming to an end?

The National Infrastructure Plan is further evidence that the war on the motorist has ended. It must have been very tempting for a cash-strapped government to impose further levies on motorists but thankfully the transport secretary has not gone down that road. Instead, we’re encouraged that he has signalled the strategic importance of car travel to the economy by committing investment to road infrastructure.

Automotive Leasing supports all efforts that make life easier for the business driver, including more innovative ways to reduce congestion that go beyond road-building. At a national policy level, there is a need to think creatively about freeing up capacity on Britain’s roads.

We also firmly support the ‘decarbonisation of fleet’ initiative and commitment to incentivise electric vehicles. The country cannot achieve critical mass for electric vehicles without large-scale adoption among commercial and public sector fleets, so it is reassuring that the government understands that a substantial commitment to the supporting infrastructure is necessary to achieve success.