Category: Press Release

Increased pressure on personal finances is creating new potential grey fleet dangers, FleetCheck is warning.

Peter Golding, managing director at the fleet management software specialist, said that drivers using their own cars for business were being tempted to cut corners to save money.

“The current economic situation means that even people on what might be called good incomes are feeling the pinch and looking to make savings. Their car is one place where they may well look to reduce expenditure.

“There are several ways in which they might try to achieve this. One is to postpone routine maintenance, either in the shape of regular servicing or in delaying replacing wear items like tyres and brake pads. Another is that they might reduce their insurance cover to third party only or not bother with the business element of their policy.

“We are already hearing anecdotal feedback that this is happening on some fleets and it is clear that fleet managers need to be extra-vigilant when it comes to the checks that they make on grey fleet drivers and vehicles.”

FleetCheck highlighted two weeks ago that the recent fall in company car numbers reported by HMRC almost certainly meant that the grey fleet was growing, probably as a result of drivers moving out of their fleet cars during successive lockdowns.

“Our view in the longer term is that these drivers will be attracted back into the company car fleet by the low-tax opportunity offered through EVs. However, until that point, grey fleet management is going to become a growing challenge for, both in terms of the shortcuts in expenditure that drivers might be tempted to make and there simply being more and older private cars being used on company business.

“It’s certainly an area where we are looking to offer increased support to our customer base and we expect other suppliers in the fleet sector to be doing the same. This is going to be one of the big issues of 2023 and beyond for our sector, we believe.”

News that three of the UK’s handful of hydrogen filling stations are closing at the same time that a raft of new models have been unveiled shows how the country is “slipping further behind” in adopting the fuel for road transport.

Peter Golding, managing director at FleetCheck, said that it was clear that other European countries and manufacturers were taking hydrogen ever more seriously as a zero emissions alternative to electric vehicles (EVs) but government support in the UK was seriously lacking.

He explained: “At the Paris Motor Show, we saw everything from new hydrogen panel vans to luxury saloons to sports cars, seemingly all with serious production intent. BMW also said that would have a new hydrogen car ready for sale by 2030. It really does feel as though there is genuine momentum building in this area.

“However, the corresponding news from the UK is that three of our existing hydrogen filling stations are closing, which means our total network is barely into double figures. There is a suggestion that these will be replaced with stations suitable for larger commercial vehicles in the future but there is no escaping the almost complete absence of provision right now.”

He pointed out that, as a contrasting example, the German government was involved in partnerships to expand their national filling station provision to 300 by the end of this decade.

“The difference between The UK’s 10-or-so hydrogen stations and Germany’s current 90-something is the gap between impossibility and viability in operational terms for the vast majority of fleets. By the time the Germans have 300, we will be slipping ever further behind.

“What appears to have happened is that the UK authorities have backed EVs to the exclusion of other options when elsewhere, there is much more of an accent on a blend of zero emissions fuels. That means we are competitive when it comes to EV charging point installation but that there is really no meaningful support for hydrogen.

“The Government’s hydrogen strategy, released last year, stated that the fuel would have a key role to play in road transport in the future but was unclear on how that would develop. Today, it’s still unclear and is obviously not helped by current political turmoil.”

Peter said that FleetCheck’s view, and one largely shared among its customer base, was that hydrogen had two main fleet applications – for commercial vehicles above around three tonnes and in places where charging points were unavailable or unviable.

“It can seem as though we are putting a lot of effort into making electrification work instances where hydrogen is potentially an easier and better solution. However, the situation is just not going to change in the UK unless there is a huge shift in government attitudes. An important source of road transport power is therefore going to be unavailable to UK businesses.”

New HMRC data that shows a marked fall in company car numbers probably also means that grey fleets are growing quite rapidly, says FleetCheck.

The news suggests that more drivers decided to take a cash option during the pandemic, said managing director Peter Golding, and are now using their own cars for business purposes.

He said: “There’s a relatively complex picture emerging here. Over the next few years, we expect overall company car numbers to grow as low taxation electric vehicles (EVs) come to form the majority of fleets. However, it also makes sense that in recent times, drivers who have been spending little time on the road because of lockdowns would want to opt-out of the fleet and take a cash allowance, even if only temporarily.

“What this means is that we are going through a phase where a relatively large number of people have moved out of fleet schemes – 80,000 according to the HMRC numbers – and are using their own vehicle for work purposes. This means a substantial growth in grey fleets and potentially also an increase in the proportion of drivers who are using their own cars quite intensively for business, rather than on a more occasional basis.”

Peter said that the trend would doubtless place a greater emphasis on grey fleet management, particularly in companies where there had been a large scale movement out of company cars.

“Grey fleet is, we believe, a generally neglected area of fleet management and this influx of new vehicles means that employers need to pay great attention to ensuring their house is in order in two key areas – risk management and the environment. Drivers using their own cars tend to opt for older, more polluting models, and this creates a lot of pressure to get these areas right.

“Certainly, we are already having conversations with our user base about this subject, covering everything from setting the right grey fleet policies to ensuring that our software is used effectively to both make sure that drivers and vehicles meet safety standards, and that the fleet carbon footprint remains on a downward trajectory.

“At the very least, companies should be aware that their grey fleet responsibilities are the same as for any company car and they need to cover basics such as licence checking and ensuring drivers have suitable business insurance.”

Peter added that it was also important to create a pathway for employees who had left the company car scheme to return at some point in the future.

“A company car will nearly always be safer, more environmentally friendly and generally cheaper for businesses to run than a grey fleet equivalent. Employers need to make the advantages of moving into a very low taxation EV as clear as possible to their drivers and encourage them to follow this route.”

FleetCheck software has been used to enable Wolseley UK’s new Earned Recognition accreditation from the Driver Vehicle Standards Agency (DVSA).

The Warwick-based company, a leading plumbing, heating and cooling trade specialist merchant, operates FleetCheck’s core fleet management system – which is Earned Recognition approved – to produce all the maintenance key performance indicators required by the DVSA, which are then sent to official body on a weekly basis.

FleetCheck’s Driver app is also used to perform digital vehicle checks and all defect reporting takes place through the software, which also collects relevant data from some of Wolseley UK’s suppliers through bespoke interfaces.

Wolseley UK operates a fleet of over 800 vehicles across the country ranging from vans to HGVs and cranes.

Peter Golding, managing director at FleetCheck, added: “We’ve been a keen promoter of Earned Recognition since the scheme’s creation thanks to the advantages that it creates for fleets through technology and we’re pleased to help Wolseley UK earn accreditation.

“Earned Recognition saves time and increases accuracy for businesses operating commercial vehicles, as well as underlining their commitment to a genuine safety culture. More and more of our users – and fleets in general – are choosing to use it.”

Jess Partridge, national compliance manager for transport at Wolseley UK, said: “Just 5% of UK fleets have Earned Recognition status and we are very pleased to be formally accredited by the DVSA. It shows our customers and our colleagues just how committed we are to offering a high standard of health and safety on the road.

“When we first adopted the FleetCheck system a couple of years ago, the aim of achieving Earned Recognition was part of our decision making process and the company has played a key role in helping us become recognised.”

The DVSA’s Earned Recognition is a voluntary scheme that allows fleets to prove they meet driver and vehicle standards by continuously monitoring their own compliance using approved software such as FleetCheck.

Speeding accounts for more than four out of five driving offences that occur in company cars and vans, according to new data from FleetCheck.

The top five offences recorded from its LicenceAssured driver licence checking product are speeding (82.0%), phone use (2.7%), no third party insurance (2.6%), failure to give information about the driver of the vehicle (2.5%) and jumping traffic lights (2.0%).

Peter Golding, managing director, said: “The precipitous drop from top placed speeding to second placed phone use shows how simply going too fast is by far the biggest issue when it comes to real world fleet driver behaviour.

“In fact, further refining the data produces even more definitive findings. Drilling down into those 82% of speeding offences, three out of four are for exceeding the limit on public roads rather than motorways, so the problem is very much concentrated on everyday driving.

“All of this says one thing to us – that employers should be encouraging and training drivers to slow down and even potentially penalising them when they don’t. Driving over the limit is not just dangerous but uses more fuel and causes more vehicle wear and tear. It’s bad from every angle.”

Peter added that some of the other offences seen in the LicenceAssured data should also be of interest to fleet managers.
“All the other issues that we have recorded are dwarfed by speeding but that does not mean they are not worthy of attention by fleet managers. While much less of a problem than it once was, illegal phone use while driving clearly remains a problem, for example.

“It is also surprising that so many company vehicles are being found by the police without adequate insurance. These could well be grey fleet drivers and checking that employees have the necessary cover is something that all fleet managers should do.”

Launched 18 months ago, LicenceAssured has already been adopted by 20% of FleetCheck’s customer base and was recently accredited by the Association for Driving Licence Verification.

Peter said: “We’ve been really pleased with the reception to the product. Licence checking is a fundamental part of modern fleet risk management and we are confident that we have made it as easy and as effective as possible.”

The spiralling cost of heating could see company car drivers choose to return to the office this winter to save costs, reversing the work-from-home trend that began during the pandemic, FleetCheck is predicting.

Peter Golding, managing director at the fleet software specialist, pointed out that the massively increased cost of heating a home in order to work during the day was making the cost and effort of visiting the office much more attractive to many.

“This is unlikely to be a uniform trend and will depend very much on how much each individual’s heating bill has risen compared to the fuel cost of their commute – but the sums will undoubtedly add up for some.

“There will be at least a couple of potential effects for fleets. Working from home has been an overall mileage saver for fleets and if more employees start commuting, mileage will increase, which has an obvious knock-on effects in terms of the amount of SMR needed.

“The other is more subtle. Some company car drivers effectively became home workers during the pandemic and their journey to work was really no longer classed as a commute for risk management purposes. That situation could now reverse.”

Peter added that FleetCheck had already picked up on anecdotal feedback that more EV company car drivers were heading into work to charge their vehicles as electricity costs had risen during recent months.

“The picture regarding EV charging at work remains in flux and many businesses still give the power away to anyone who parks on their car park and wants to use it, whether it is for business or private mileage. This may have to change if more drivers use free company facilities for all of their charging needs. Electricity is becoming, or has perhaps already become, too expensive to be given away for non-work purposes.”

The shift to electric vehicles (EVs) could see some fleets operating a number of diesel vans on an almost “indefinite” basis, FleetCheck is warning.

Peter Golding, managing director at the fleet software specialist, pointed out that a variety of businesses already felt that they had applications for which current electric van designs would never be suitable, leaving diesel as their only option.

He said: “Some of our customers are telling us that they feel caught in a difficult situation. As they see it, there are some jobs for which electric vans are unlikely to ever make sense – for example, where very long range is needed, where there is a lack of charging facilities in remote areas, or where there is a need to keep moving during power cuts. They believe that this leaves them no choice other than to operate diesel vans until the technology changes

“However, they also foresee a point fairly soon when they’ll no longer want to buy new diesel vans because of concerns over future residual values as the market shifts to electrification towards the end of the decade. If you keep your vehicles for 5-6 years, this is a concern.

“Essentially, what some are planning to do is keep a handful of diesel vans indefinitely and there is a possibility that they already own these vans now. They see no choice but hanging onto these vehicle is something that is going to create a whole range of operational issues.”

The key problem, Peter said, was that ensuring these diesel vans were kept in a safe and roadworthy condition was likely to prove extremely challenging.

“It’s no exaggeration to suggest that, by the turn of the decade, some fleets may already be operating a number of diesel vans that have been in service for nearly a decade with no plans to take them out of service.

“There appear to be two scenarios. One is that fleets will want to keep some diesels rather than use EVs because they are used intensively, the other is that they will be used infrequently as a flexible back-up. Both of these situations create maintenance problems. Keeping a 10 year old van covering 30,000 miles a year in a good state of repair is expensive and difficult; ensuring a rarely used van is always ready to go is almost equally tricky.

“We believe that the ideal solution would be for the UK government would introduce an effective road hydrogen strategy, giving these fleets a more flexible, zero emissions alternative to diesel in the long term but there is simply no sign of this happening. In our view, this is a mistake.

‘The only other outcome, in our view, is that there is a technological shift in either electric van range or the charging infrastructure that resolves the issues that these fleets believe make ongoing diesel van necessary – but it’s difficult to envisage what this would look like.”

Use of technology is making it easier for fleets to enforce “golden hour” guidance following any kind of road collision, FleetCheck is reporting.

Peter Golding, managing director at the fleet software specialist, explained if details about an incident can be quickly recorded and submitted to your insurer and accident management company then large amounts can be saved in claims costs.

He said: “The first concern following a road collision for fleets is to ensure that the driver and other road users are not badly injured. Once that is established, there should be a concerted effort to gather as much relevant information as rapidly as possible.

“The golden hour is a long-recognised concept in insurance. There are whole industries that exist to try and make money out of claims following collisions – with costs for replacement vehicles and injury claims being among the most onerous. However, these can be avoided by moving within the first 60 minutes or so.

“Historically, it’s been difficult for fleets to enforce any kind of guidance for employees in this situation. Drivers may not know what information to record or where to send it. However, that is now changing quickly.

“We’ve added collision recording facilities to our standard FleetCheck app and this walks the driver through the process and allows them to send it immediately to their fleet manager. Some other companies have created products following a similar concept. It is no exaggeration to say that these are revolutionising the process.”

Peter added that uncontrolled costs following the golden hour could easily run into thousands of pounds.

“If you ask industry experts, there are all kinds of estimates about how much accident costs increase if you aren’t able to get on top of the situation but the very lowest are still well into four figures and some are much, much higher.

“These additional expenses add nothing to the process of dealing with the aftermath of the collision and exist only to artificially inflate the value of the claim. If fleets can successfully take control in this area, then very substantial savings can be made.”

The fleet sector needs to start having a constructive discussion about the likelihood of road charging being introduced in the future and the kind of scheme it would like to see, says FleetCheck.

Peter Golding, managing director at the fleet software specialist, said that the rapid growth in electric vehicles expected over the next few years – and the subsequent decline in revenue for fuel, road and company car taxation – made an initiative of this type almost inevitable.

“It went under the radar a little but one of the things that Boris Johnson mentioned to the Commons Liaison Committee the day before his resignation was the probable inevitability of some kind of road charging scheme.

“Now, exactly how much influence he has now is very much open to question but his comments did provide a window into Government thinking. The topic is clearly a live one – especially at a time when the public finances are under pressure – and it is probable that different models are under discussion.

“Our view is that it very much makes sense for the fleet sector to begin to give formal thought to the subject. The declining tax take resulting from electrification means that Treasury revenue will be falling every year. It is inevitable that some kind of new scheme fills the gap.”

Peter said that his own opinion was that any road charging scheme needed to be, above all, fair and easy to use – especially when it came to payment processing.
“Our main concern is that the technology adopted proves too complex and, as a result, is difficult both to introduce and to use. There is a strong argument, we believe, for a graduated approach over time with simple systems being introduced in the first instance, such as tolls on some major motorways.

“However, what really needs to happen is for the views of all the fleet industry’s major players to be heard. This is something that is almost certainly coming and we should be doing everything to ensure that whatever solution is adopted meets our needs, as one of the major interested parties.

“It would be responsible to start constructive discussions now. There is some good work being done in this area already – such as by the AFP’s Future Roads committee – and it would be positive for as many fleets as possible to make their views known.”

As the earliest potential adopters of autonomous technology, fleets need to make their thoughts clear to a new official inquiry, FleetCheck is advising.

Peter Golding, managing director at the fleet management software specialist, said the new Transport Select Committee inquiry into self-driving vehicles could be an important influencer on the creation of the legal infrastructure surrounding their use.

“We’ve already had the Law Commission look at this subject in some detail and this new inquiry should build on that work alongside other investigations into how autonomous technology might be used in the future.

“Our view is that fleets need to be a big part of this. As almost certainly the main buyers and earliest adopters of vehicles with these kinds of capabilities, we should make sure that our voices are heard.

“Our view is that concerns are likely to fall into two parts. One is that as employers, fleets need to know that any technology fitted to cars and vans used by their drivers is absolutely as safe as it can be. Our people and other road users must be protected.

“The other is a complete understanding of how autonomous tech fits in with existing duty of care responsibilities. Giving a third party control of a vehicle is a significant change in this area and not something that should be done lightly.”

The new inquiry will look at the development and deployment of self-driving vehicles, the progress of research and work in the UK and abroad, and what needs to happen to prepare for their arrival. This includes regulation, perceptions of safety, the role of government, implications for infrastructure and for existing car use.

Peter said: “I don’t think I am being controversial if I say that I hear quite a lot of scepticism among fleet operators about this technology and the temptation for manufacturers to push for its use before it is really ready.

“Certainly, every commentary I have read on the subject in recent years contains the same message – that engineers have 90% solved the issue of self-driving but are having trouble with the last 10%. That would be too big a risk for any fleet.

“The industry is relying on regulators – over whom the Select Committee should have an influence – to ensure that no vehicle makes it to market carrying tech that is not fully proven in real world conditions.”