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As the economy slides it seems the voices of fleet managers are increasingly drowning out those of their HR colleagues
Some interesting conclusions are being drawn from the results of the latest Company Car Trends survey, a quarterly snapshot of attitudes in the business car market from GE Capital Solutions.
According to the survey, the number of fleet managers able to make a final decision on choice of suppliers of goods and services has risen sharply in the past year, from 37.0% to 68.8%. There has also been an increase in those who can have final say over fleet policies, up from 39.7% to 43.7%.
Gary Killeen, commercial leader at GE Capital Solutions, interprets this as fleet managers being given more responsibility as the recession bites. The need to save costs through best practice is taking precedence over wider issues, such as staff recruitment and retention.
"We are certainly seeing a reversal of the trends of the last decade," he told me. "In the current economic climate, employers are starting to look at the company car again as a cost-effective business tool. Car choice is being restricted more often and cost factors are overtaking human resources issues."
I'm not sure I buy into the 'fleet manager versus HR manager' battle scene that is being painted here, but then I don't have the frontline experience of Killeen and his team. However, the fact that business car managers can be viewed as guardians of cost saving - rather than wholesale wasters of company funds - is one we should all embrace.
There are few advantages arising from the present economic climate, but if it does allow companies to cut some waste and impose some key disciplines, then perhaps it will not be viewed entirely as a business disaster zone. In the fleet arena that could mean introducing fuel cards, restricting vehicle choice and moving to a genuine whole-life cost calculation.
But we should be wary of a step too far. Where do you stand, for instance, on the question of leasing used vehicles rather than new? Apparently the number of companies offering so-called 'pre-owned' vehicles on contract hire and leasing deals is on the increase.
Philip Kehoe, operation director at DSG Auto Contracts, which is one such company, said: "Twelve months ago, our customers would not have even considered a used car as a viable option; now we have major finance and leasing companies arranging deals with the likes of VW and Audi. I am sure used car leasing will continue to grow in popularity during 2009."
He claims there are cost savings to be made, despite the discounted prices available to major leasing firms on new vehicles. But my feeling is that most businesses should tread carefully here. In the first place, many of the savings are not actually that great on the figures I have seen quoted, and in the second place, we do have an HR issue to consider here.
Moving to a pre-owned business car may be fine for the self-employed or relatively small businesses, but it is not a policy I would suggest you impose on essential fleet users.
Just remember, in better times, around one-third of employees would switch jobs for a better company car, and people have long memories. Right now, they may well accept a policy of restraint but they will not forget being poorly treated.
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