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2008 Features with focus on Car Policy

Introduction - Good habits make for good drivers

We are going to undertake an instructive analysis of a fundamental element for healthy and efficient fleet management - the Car Policy. The car policy, or the regulations relative to a car fleet, represents the basic manual where drivers are concerned, the most important document for the correct use of the company car.

The importance of the car policy

The importance of having an effective car policy in place no longer leaves any room for doubt in the world of business. The use of what is known as a ‘company car’ is an exceptionally sensitive subject in most companies, both for the employer and the employee.

The car policy within the company

The definition and content of the ‘car policy’ within the company has evolved considerably over the past ten years. Several reasons are behind this development.

It is quite clear that users of company cars have not, over recent years, always displayed a heightened sense of responsibility where the car policy is concerned.

There has been a good deal of downward drift, which has led to employers, leasing companies and insurance companies putting extra pressure on users.

Which system to choose ?

In the car policy, the choice of vehicle undoubtedly represents the most sensitive and at the same time, the most significant element. This choice can be made according to the three methods described below.

The quality criteria of a car policy

Whether you operate the strictest or the most innovative car policy, all regulations relative to the car fleet have to include certain vital elements:

Example of a Car Policy

‘Car Policy’: system for making company cars available for professional use. By using a practical example of a car policy, we will analyse the various important components to be included in the document.

McKinsey & Company Inc. Belgium case study

The Belgian arm of international group McKinsey & Company operates a fleet of vehicles from five sites throughout the country. Philip Everaert, Fleet and Facility Manager, is responsible for the fleet. We use it as an example.

Concentra Group case study

Belgian Media group Concentra here serves as an example of a car fleet whose management has been brought together under one roof, for all divisions. Purchasing and Logistics Manager Freddy Cruyl is in charge.

TCO under the spotlight

The IFMI Expert Session held in Geneva on March 7th 2008 to coincide with the Geneva Motor Show brought together a select number of international fleet managers to discuss Total Cost of Ownership with a panel of expert speakers. Starting from the premise that this topic is much talked about but little applied, the most important aspects were outlined, explained and discussed.

Market trends in Europe

In Europe, including Belgium, there is more and more realisation that the company fleet should be managed professionally.

This phenomenon does not only involve players within the sector, such as car brands, leasing companies, insurers and other partners; companies too now understand that only a structured approach enables the management costs of their fleet to be kept under control. This general evolution should not hide the fact, of course, that there are differences between countries, both where the entitlement to a company car is concerned and in terms of financing.

2007 Features

Accident Management

Although accidents happen in a split second, their consequences sometimes seem to go on for a very long time. And they bring with them both worry and administrative headaches. Just the sort of problems a fleet manager would prefer not to have. This lesson might bring you happiness by showing you how to react after an accident in order to quickly put it behind you, and without too much cost.

 

Mobility & ecology

A company car is much more than just a nice reward: it is also an indispensable tool for the daily trip from home to work and for journeys required by the driver’s function. But let us not deceive ourselves: over the past few years the car has lost many of its advantages in terms of mobility. And on top of this, the impact of a fleet, whatever its size, on the environment cannot be ignored. As a fleet manager, how should you manage these contradictory elements?

 

Fleet & Business Lessons

We will provide you with practical and original information on the ins and outs of managing a vehicle fleet - Glossary, Fleet analysis, What is the purpose of this analysis? and Financing modes.

 

Car Policy

Whilst establishing the car policy can sometimes be an eventful journey, it nevertheless represents a solid shield against a number of problems, or even injustices, amongst the personnel. Car policy as a social peace-maker? Yes, that too. - Definition of the car policy; What should the car policy set out?

 

Insurance

What does the law say?; Why limit the level of accidents?; What to do in a case of theft?; Mobility insurance?; Operational leasing with or without insurance?; Self insurance, what’s that?; Insurance on the web?

 

Fuel

In this lesson, we demonstrate how fuel management is much more than just going to the service station every X kilometres. Fuel costs represent a not inconsiderable proportion of the company’s expenses. So, it is important that you stay in control of these costs at all times, and that you opt for the most suitable solution where fuel management is concerned.

 

Reporting & Control

Reporting on, following up and managing the fleet is the topic for this lesson. These items depend largely on the company culture and the capacity and method of fleet financing. Today, the vast majority of companies have extended computer systems, involving intranet and extranet, which help with fleet management. Communication to, and between, senior managers, colleagues and the drivers of the vehicles themselves, is much more flexible and above all more rapid. This is an important point when a problem or an emergency arises, for example a modification to the car policy, a breakdown or an accident.

 

Outsourcing

Managing a fleet is a speciality in itself. You may not have the time to take care of the constant follow-up your fleet requires. You may only be able to dedicate a limited amount of time to this. This is why subcontracting, or outsourcing, appears to be an interesting solution. The management of a vehicle fleet can in fact be subdivided into four sub-categories: the financial aspect, the operational element, logistics and personnel policy.

 

Assistance

The very reason for the existence of the car is to provide mobility. This principle is just as true for a company car, an essential economic factor both for the driver and for the company. Cars which are out of service following a breakdown or an accident represent a direct loss for the enterprise. There are various solutions and options enabling mobility to be guaranteed. This lesson will allow us to probe a little more deeply into the topic of assistance.

Despite the continuous technological progress of cars, a breakdown or an accident always remains possible. And even worse, the latest versions of electronic equipment to be found in modern cars make it very unlikely that the driver will be able to get the car going again himself. But don’t despair. Various services offer assistance solutions which will guarantee optimal mobility for your drivers.

 

Maintenance

Modern cars require less and less maintenance, to the great pleasure of the fleet manager, who thus makes substantial savings. But beware, because lengthening the service intervals does not imply that less attention needs to be paid to the mechanics. And attention is also needed at the time of signing a maintenance contract, because they don’t all offer the same services.

 

Remarketing

The life of a company car doesn’t stop when it reaches the end of its lease contract. At least when the car is in a marketable condition. The preparation for the second life of the company car is called ‘Remarketing’, the subject of this eleventh lesson. Procuring a car is one thing, letting it go later is quite another. The second point may seem less captivating and less financially interesting, but appearances can be deceptive. Handling a car at the end of its contract is an art in itself, and when it is well thought out, it can be a fruitful operation.

 

Equipment & Options

Anyone who spends a large part of his day behind the wheel has the right to call for a certain level of comfort and security. In this twelfth Fleet Lesson, we will look at why it is not in the fleet manager’s interest to systematically reject the requests of an employee who wants to add extra options to his company car. Although it should be said that not all options are of interest to the company.