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Fleets plan restructuring due to WLTP, Arval reports

Date: 13 September 2019   |   Author: Sean Keywood

Almost one in six fleets is planning some sort of restructuring due to the new WLTP vehicle testing regime, according to leasing company Arval.

The firm said 15% of fleet and mobility managers questioned for its Mobility Observatory survey said they expected to make some adjustment to the cars they offer.

Specifically, 12% said they would offer different models with lower emissions, 7% said they would use more alternative fuel vehicles, 6% said they would choose models with a lower fiscal impact, and 4% said they would reduce the level or category of cars on offer.

Arval said the responses differed greatly depending on the size of organisation concerned. For example, when looking at fleets that planned to adopt models with lower emissions, the measure was planned by 19% of businesses with more than 1,000 employees, 15% of those with 100 to 999 employees, 6% of those with 10 to 99 employees and 8% of those with fewer than 10 employees.

Head of Arval's Mobility Observatory in the UK Shaun Sadlier said: "Now that WLTP figures are starting to become the norm across fleets, we are seeing how businesses are handling their impact in a real world manner.

"The fact is that while the majority of fleets are not planning changes, a significant minority will be redrawing their choice lists and we are already supporting quite a large number of businesses through this process.

"The calculations and the knowledge needed to do this successfully are quite involved and even some large organisations with good internal fleet resources need to look to external consultants to be able to handle the challenge successfully."

Sadlier added that it was unsurprising the research showed that larger employers were making more changes than their smaller counterparts.

"These are organisations that, because of their size, will tend to have a much more structured approach to their company car operations and the impact of WLTP will be clearer, especially when it comes to drawing up choice lists," he said.

"The ideal outcome for fleets working to accommodate WLTP is to be able to offer a comparable model to each employee but without any kind of taxation penalty. Looking at options with lower emissions, especially alternative fuels, is the obvious route.

"Certainly, several customers with whom we have been working are now introducing vehicles that perform better under the new test, including hybrids and electric vehicles.

"Our general finding is that, in most cases, new choice lists can be created that resolve most of the issues raised by the switch to WLTP and it is helping some fleets move more quickly towards the wider fuel diversity we expect to see develop over the next few years."