Category: Press Release

Strong impetus for fleets to electrify while new car supply remains highly inconsistent is changing the badge composition of some fleets, says FleetCheck.

Peter Golding, managing director at the fleet software specialist said that several manufacturers who previously had low or non-existent fleet profiles were gaining ground.

“There are a number of factors converging here but probably the strongest is that drivers are very keen to get out of ICE vehicles into EVs with significantly lower benefit in kind rates.

“However, the availability of EVs in general, especially those with sensible delivery times, is extremely variable and so their real world choices often consist of manufacturers that have not traditionally had a significant fleet presence and fall outside of existing badge policies.

“Some companies are gaining from this in a noticeable manner. Names such as Tesla, Kia, Hyundai, and even Polestar have not historically figured on company car bestseller charts but are making their way onto fleets in relatively large numbers.

“Much of this success is deserved, with the models on offer not just being in good supply but also representing some of the best core company car EVs currently available. It’s having a definite and in some cases, a rapid effect on the badge mix seen on some fleets.”

Peter said that it remained to be seen whether this situation would lead to a long-term change in which manufacturers dominated the fleet market or if established car makers would reassert their presence.

“Some established manufacturers have individual models doing well but among the big players, probably only VW can currently offer a good choice of EV models in the principle sectors of the company car market.

“This situation will be resolved in the next couple of years as new models are introduced but it will be interesting to see whether there is an ongoing degree of displacement, especially with the predicted entry of a number of highly capable Chinese car makers into the market in the medium term adding to the potential for disruption.”

A five point plan to control spending on petrol and diesel has been issued by FleetCheck as prices reach record levels in the wake of the Ukraine invasion.

Peter Golding, managing director at the fleet software company, said that fleets should adopt some form of strategy because it appeared the conflict was unlikely to resolve quickly.

“The terrible situation in Ukraine is something that is playing on all of our minds and I think most people believe it could sadly persist for months or even years.

“While it is not a major issue compared to the loss of life we are seeing, it is clear that fuel costs are rising to record levels quickly and substantially, and are unlikely to normalise any time soon. This is currently adding substantially to fleet costs on an almost day-by-day basis.

“Our five point plan for fuel is designed to be easy to understand and implement, and should produce results quickly. While it is probably not possible to completely offset the impacts of the price rises we are seeing, taking greater control over costs is very much achievable.

“The plan was actually created in response to the initial spikes in fuel prices that we saw in the Autumn caused by shortages – and so we know it works from the experiences of fleets that have adopted it – but it is even more pertinent today.”

Peter added that the plan had been written largely with petrol and diesel cars and vans in mind but its principles applied almost equally to the large numbers of electric vehicles being added to fleets.

“While fuelling EVs represents a fraction of the cost of an ICE vehicle, there will still be substantial percentage price increases in energy very soon – and working to minimise the effects of these rises is very much part of fleet management best practice.”

The five point plan is:

1. Encourage more economical driving. Ask employees to drive smoothly by accelerating and braking gently, taking maximum notice of what is happening on the road ahead. Change up early and, as always, stick to the speed limit or lower – drive at 70mph and you’ll use up to 9% more fuel than at 60mph and up to 15% more than at 50mph, according to the AA.

2. Explain to drivers how to prepare their vehicles. Some simple steps can have a positive impact on fuel consumption. Remove roofracks or other heavy items from vehicles that don’t need to be carried. Only use power-hungry devices such as air conditioning and rear window demisting when needed. Tyre pressures should checked as they can have a significant effect. Also, don’t leave the vehicle running before use.

3. Measure your fuel use. A large number of fleets simply don’t know how much fuel they use overall, per driver or per vehicle. The easiest way to put a monitoring system in place is to buy all petrol and diesel through specialist fuel cards. You can then access the data collected as software-generated reports.

4. Analyse your fuel data. Fleet software provides the means to analyse the information you have gathered – enabling you to identify drivers and vehicles that are not achieving the kind of fuel consumption that you expect.

5. Don’t be afraid to challenge employees. The single largest factor affecting fuel economy in the real world is driver behaviour. A disparity in fuel economy of more than 30% is not unusual between drivers in identical vehicles on similar routes. Let drivers know that they are being monitored, especially if you are using telematics, and talk to those who seem to be using excess fuel, offering help and advice.

New managerial solutions may be needed for some fleets in order to overcome the inherent operational limitations of van electrification, says FleetCheck.

Peter Golding, managing director at the fleet software specialist, said that it was becoming clear that compromises in terms of range and payload would have unavoidable real world impacts for a significant minority of operators.

He explained: “Fleets have found that car electrification is a relatively simple affair. Electric cars can simply be substituted for their petrol and diesel equivalents in the vast majority of cases with no real issues.

“For some van operators, the situation is similar. If your driver has access to home charging and your eLCV covers no more than perhaps 120 miles in a day with a light load, then everything is relatively simple.

“However, if you need vans to cover long motorway journeys with a full load on a cold day, and your driver is one of the many who don’t have access to off-street parking and therefore can’t have a charger fitted, then the picture is quite different.

“For some fleets, this means that electric vans are simply incompatible with their current operations. A few are hanging on to see whether hydrogen will emerge as an alternative but that remains a marginal choice because of the absence of refuelling infrastructure. The bottom line is that new operational solutions may need to be found to enable electrification. The way in which your fleet is currently organised and used may no longer be appropriate.”

Peter said that fleets were beginning to discuss a range of possible options, with some very creative thinking being proposed.

“One idea that is gaining some traction is the possibility of using vans as shared transport resources. This could work for courier companies, for example. Instead of three electric vans being used on the same long delivery route, three could be shared across shorter runs.

“There is also talk of exploring what is called backloading in the heavy goods world where an effort is made to ensure that no vehicle returns from a long delivery run with an empty payload, instead being effectively rented to a third party.”

Peter said that new approaches may also need to be adopted that would change the working day of employees, building charging times into how their work is structured.

“Most route planning is currently undertaken on the basis that mileage and payload are effectively limitless but that will obviously change. It could be that routes will need to be planned where driver breaks are planned around access to charging points and indeed, this is something that is already happening on fleets where eLCVs are being adopted.”

Peter added that the fleet sector needed to be open about this subject in general and adopt an approach of knowledge sharing, where best practise experience was widely discussed.

“The fact is that, outside of a few major businesses, electric vans remain something of a rarity and operational experience is so far relatively limited. What is needed is a very open level of discussion about the real world solutions that are enabling fleets to operate most effectively.

“We are certainly encouraging this across our user base and some other organisations, notably the AFP, are also establishing excellent forums. Van electrification means that fleet management will have to change for some fleets, and the key to a successful shift over the next few years will be identifying solutions that work for all.”

Tyre management looks set to become the focal point of service, maintenance and repair (SMR) for fleets as they adopt electric vehicles (EV) over the next few years, FleetCheck is predicting.

The fleet software specialist says that it is becoming clear from real world EV cost profiles seen so far that while general maintenance costs for electric cars are lower than comparable petrol and diesel models, tyre costs are higher.

Peter Golding, managing director at FleetCheck, explained: “Tyres have gradually become an ever more significant element of the SMR bill over the last decade or longer as standard fitments have become larger and lower profile.

“However, the arrival of EVs on fleets is going to bring about a step change that will make the situation even more acute. Looking at our user base, we are starting to see that while standard workshop servicing and maintenance costs for EVs are lower than for petrol and diesel vehicles thanks to the elimination of a variety of wear parts, tyre costs are increasing.

“There are a number of reasons for this. Probably the most significant are weight and torque. EVs are much heavier than ICE vehicles and this causes increased wear, especially when it comes to models with two wheel drive rather than four, and the high level of torque that some offer electric cars is also having a definite effect.

“While it is still early days in terms of building up a picture of the overall impact, it seems likely that the tyre element will move from being just over a third of the total cost over a fleet lifetime to nearer a half. It’s going to becoming the focal point of SMR management.”

Peter said that this shift would undoubtedly place a greater emphasis on fleet approaches to the management of tyre costs over time.

“Tyre costs can, like every other element of the SMR bill, be successfully managed. Certainly, we expect greater emphasis to be placed on identifying the best suppliers who are able to offer tyres at the lowest prices, although most replacements will almost certainly be like-for-like in terms of manufacturer fitment, so potential for savings here may be limited.

“However, there is also likely to be increased interest in tyre maintenance, so we expect that there will be a more emphasis on ensuring tyre pressures are regularly checked and that other factors influencing wear such as wheel alignment are considered.

“Also, it has long been recognised that a more measured approach to cornering and braking can contribute to increased tyre life, which again takes us back to the subject of torque. We expect fleet managers to take a greater interest in how employees are using their EVs on the road as a result, with measures introduced that are designed to ensure that drivers are mindful of their tyre use – something that can be tracked using our software.”

Slow driving licence renewals by the DVLA are taking drivers out of circulation and leaving already-stretched fleets with further reduced resources, FleetCheck is reporting.

The fleet software company says that it is hearing from across its user base and elsewhere that the issue is especially affecting vocational licence renewals where drivers are notifying the authorities of new medical conditions for the first time.

Peter Golding, managing director, said: “Every time a truck or bus driver wants to renew their licence, they have to undergo a thorough medical by a doctor and any new conditions notified. This might be something as common as high blood pressure. The DVLA will then assess this change for safety before granting a licence renewal.

“This appears to be where the hold-ups are occurring, with 4-8 week delays not being untypical, we are being told. There is a provision in the Road Traffic Act called section 88 that allows drivers to carry on working in these conditions but, in the real world, there is a significant question mark over whether this is covered by standard fleet insurance. In the end, it appears that most fleets are deciding not to take the risk.”

Peter said that, as a result, drivers awaiting renewal are often being placed on yard duties or simply told to go home until the DVLA process is completed and a notification received.

“For fleets that are already badly stretched by high demand for services at the same time as experiencing driver shortages in the wake of Brexit, this is a very definite problem. They simply can’t afford to be losing drivers for a month or longer.

“There is no obvious solution other than perhaps applying for licence renewals much earlier than they are technically needed. It appears to be simply a case of waiting for the DVLA to work through a backlog that has now been in place for some time.”

Fears over the future residual values (RVs) of internal combustion engine (ICE) cars and vans are increasingly helping to drive fleet adoption of electric vehicles (EVs), FleetCheck is reporting.

Andy Kirby, customer success director, said that worries were being expressed across its outright purchase user base that demand for used petrol and diesel vehicles might start to substantially fall in the second half of the decade.

He explained: “There is a general feeling that, as we head towards the 2030 end of ICE production, no-one really knows what is going to happen to used vehicle buyer sentiment and therefore RVs.

“There are extremes of belief – some saying that petrol and diesel demand will hold up because those vehicles offer definite advantages and will be in limited supply, while others believe that they will be seen as yesterday’s technology and discarded.

“Because of this uncertainty, there is a feeling that ICE is increasingly a gamble when it comes to future RVs. The logic is that EV demand is now a solid bet for the future, while petrol and diesel will certainly fall away at some stage.”

Andy said that the situation was being made more acute by the current long delays affecting vehicle supply.

“If you order a car today and are given a delivery date of late 2022 then, if you are operating on a four year cycle, that takes you right up to 2026 as a disposal date, which feels very near to the 2030 deadline. The fear is that the used market will be quite different by then.

“The situation is even more marked when it comes to van operation. We have some fleets who operate LCVs on a six year cycle. That means if you place an order now, you’ll be potentially looking to sell that van in 2028, when it is likely that electric will be the fleet norm.

“When faced with these kinds of scenarios, we are increasingly seeing people choose electric today become it looks like the safer RV bet. This is a way of thinking that can only become more dominant as time passes.”

New regulations that bring smaller light commercial vehicles (LCVs) travelling to the EU under the requirement to have an International Operator’s Licence will place key demands on fleets in the future, says FleetCheck.

The fleet software company reports that, from 21st May, all organisations running LCVs of between 2.5-3.5 tonnes will need to obtain the accreditation as part of the UK-EU Trade and Cooperation Agreement.

Requirements include appointing a designated transport manager with a valid International Transport Manager Certificate of Professional Competence (TM CPC) qualification as well as a range of commitments to systems monitoring areas such as maintenance and drivers.

Peter Golding, managing director, said: “This represents quite a jump in the level of responsibility for fleets who find themselves in this position. Until now, they’ll have operated 2.5-3.5 tonne vans using the same arrangements as for cars and the smallest LCVs.

“Now, however, they will be placed under a range of much more stringent demands, from professional qualifications to audit systems to show that they are meeting a whole series of fleet management standards.

“Especially when it comes to vehicle maintenance and drivers, there is a lot of specific information required in much more detail and meeting more stringent requirements than these fleets will have recorded previously.

“For most, there’s probably a real world decision to be made – is it worth the additional cost and commitment for the level of business that each company undertakes in the EU? If the answer is yes, there is quite a lot of work that needs doing between now and May.”

Peter said that it was already working with some of its fleet customers to help them extend their existing International O licence arrangements to vehicles affected by the new move and had also received enquiries from companies looking to upgrade their systems.

“As soon as businesses start looking at the demands of the licence, they tend to quite quickly conclude that some kind of digital infrastructure is the best way to move forward because of the need to record information across wide areas in an auditable fashion. It’s not impossible using paper systems but it is difficult, time consuming and much more prone to human error.”

A series of van driver safety resources created by National Highways through its Driving for Better Business campaign has been added to FleetCheck’s widely-used Vehicle Inspection App.

The Van Driver Toolkit is included in the latest update to the product, which has been used to complete more than 11.5 million car, van and truck safety checks since its launch nearly four years ago.

The resources are designed to provide practical advice to drivers of light commercial vehicles about day-to-day safety issues, covering everything from winter driving to safe towing, and driving licences to speed limits.

Peter Golding, managing director, said: “We have a longstanding relationship with Driving for Better Business, which exists to transform fleet road safety in the UK, and are an enthusiastic supporter of their aims.

“Incorporating their advice into a safety inspection app is a fleet industry first, we believe, and we are sure will help van drivers to stay safe while out on the road. It’s a simple yet potentially highly effective innovation.”

FleetCheck’s Vehicle Inspection App was introduced in April 2017 and creates the means for drivers and fleet managers to schedule, carry out, confirm, follow-up and audit all kinds of legally-required inspections from daily walkarounds to weekly or monthly checks.

It has been continually enhanced, notably to incorporate a range of advanced features such as support for languages commonly used among UK fleet drivers; a fit-to-drive declaration; an improved trailer inspection routine; an option for employees to view documentation and policies; and enhanced damage, defect and collision reporting.

Peter said: “The app has been one of our major success stories of the last few years. There has been a general increase in awareness of the importance of this kind of digital safety check product in the market both among car and commercial vehicle fleets, displacing previous paper-based systems, and we have been well-placed to take advantage of the trend.

“However, there have also been a number of developments emerging during the pandemic that has accelerated usage. Van fleets engaged in round-the-clock delivery of frontline services and increasing numbers of people working from home both need to carry out remote safety checks that can be tracked and audited by their fleet managers. Now, with the emergence of Omicron, it feels as though these features have renewed relevance.

“The Van Driver Toolkit is the latest step in our programme of continual enhancement and has already been enthusiastically embraced by our user base. It’s very much the kind of practical and effective improvement that we see as a FleetCheck hallmark.”

Increasing demand for training in response to the HGV driver shortage has seen FleetCheck strike a new affinity deal with RED Driver Training.

Peter Golding, managing director at the fleet management software company, explained that his company’s customer base was looking to new ways of tackling the current scarcity.

He said: “We are hearing from transport manager that there are a number of issues arising around risk management best practice as a result of the driver crisis.

“Some are telling us they continue to use drivers who, in times when there was less of an recruitment problem in this area, they would perhaps want to let go. These are people who meet all legal requirements but are only performing well enough instead of excelling.

“Similarly, there is a suspicion that a larger proportion than usual of the drivers who are now looking for work might not have been considered good enough elsewhere, that the quality of those available is far from aspirational.

“In both these instances, there is a widespread understanding that training can have a positive impact, helping existing drivers to improve their performance and also through pre-recruitment assessments on new candidates.

“Our customer base is increasingly asking for us for help and advice when it comes to these types of services, which is why we have looked to this new affinity deal.”

Peter said that FleetCheck chose to work with RED through its affinity programme after looking closely at the market and the offer negotiated included a free consultation designed to help fleets identify the best type of driver training to help with their issues.

“Through the data we collect with our software, we are able to help transport managers gain an understanding of which drivers may potentially benefit from training and RED’s expertise can then show the types of solutions available and the best course of action.

“We’re big believers in driver training as a risk management tool because we see its positive effects over time across our user base, and we are delighted to be able to negotiate this arrangement and confident that RED will deliver for our users.”

Peter added that while the driver shortage was affecting HGV operators most acutely, there was also an increasing level of interest in training from fleets of all kinds.

“This is something that very much appears to be a post-pandemic trend, with many fleets that have been placed under high levels of stress – such as those delivering front line services – realising that drivers may need assistance.”

Ian McIntosh, CEO, RED Driver Training, said: “FleetCheck has a very wide range of customers, covering everything from cars to the largest and most specialised commercial vehicles, and we are well-placed to deliver services to meet all of their needs. Like us, they are a company with a genuine commitment to a risk management culture, and we are very pleased to have arrived at this new agreement.”

Andy Kirby, customer success director at FleetCheck, added: “FleetCheck now has affinity agreements in place with five major service providers, ranging from auction services to driver training and maintenance to MoT tests.

“We’re in the process of finalising further affinity deals which we’ll announce in the near future. Our aim is to use our position to negotiate arrangements that benefit our customers, especially as many look to new strategies in the post-pandemic economy.”

The van fleet sector appears to be splitting into thirds over eLCV adoption, FleetCheck is reporting, with “sceptics” set to be a potential issue.

Peter Golding, managing director at the fleet management software company, said that operators could be classified into enthusiastic adopters, those who saw electrification as inevitable, and others who were determined to resist electric vans as long as possible.

“The idea of ‘thirds’ is, of course, a useful simplification but also largely true, as far as we can see across our user base at this point in time. We all know about the major fleets that are buying hundreds of eLCVs and blazing a trail, and there are those who are not enthusiastic but view the arrival of electric vans as something they just have to do.

“However, it is not difficult to find others who are determined to drag their heels and this has potential implications for fleet van operations. Especially among SMEs, it is not unusual to find vehicles that are 6-8 years old still in daily use. Even though diesel production ends in 2030, they could still conceivably be in use a decade later, which is highly undesirable.

“Now, the views of these sceptics are likely to be gradually changed over time when they see other people successfully using eLCVs – but they are still likely to prove a potential drag on the overall move towards electrification.”

Peter said that a process of education alongside a range of operational and fiscal incentives and disincentives may be necessary to convince objectors to switch.

“The main concern that I have heard from most electric van sceptics are about cost and range, and perhaps more needs to be done to show how these issues are being tackled over time. The installation of kerbside charging and the way in which the prices of electric vehicles should fall are important points, as is the potential for PHEVs as a stepping stone to 2030.

“Also, there will be operational disincentives such as the growth of Clean Air Zones and potentially market incentives such as ongoing vehicle subsidies and taxation measures. All of these have a part to play in changing minds.

“However, we also shouldn’t shy away from simply promoting the environmental benefits of van electrification. It is very possible that within a few years, businesses seen to be using diesel vehicles will be viewed as out of touch by consumers, and there is every possibility that will equally apply to major corporations and small local companies.”