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Touted moves to cut costs by moving to a solus-badged fleet have been condemned by Hitachi Capital Vehicle Solutions as a "blunt instrument" with potential impacts upon staff motivation and morale.
"The company car is the last bastion of the employee benefit, with most businesses needing to freeze pay-rises and cut bonuses just to keep their heads above water," said Hitachi pricing manager Chris Shore. "Companies need to think carefully about the impact of staff motivation and morale before taking the step to reduce the level of the company car benefit even further by restricting vehicle choice."
As an alternative, Shore said business car operators should look to their vehicle provider to find "creative and innovative" ways to accommodate wider choice into a deal without increasing cost. He suggested greater analysis of whole-life costs, and effective policy management of terms and mileage.
"Difficult times call for more responsive working partnerships, and it's the duty of the fleet provider to ensure it continues to be responsive to its customers' business needs," said Shore.
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