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Home / Business / Economy / Employment

Size still matters when weighing up staff vehicle benefits

By Liz Dobson
NZ Herald·
27 Apr, 2008 10:57 PM3 mins to read

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There is still plenty of demand for bigger vehicles. Photo / Glenn Jeffrey

There is still plenty of demand for bigger vehicles. Photo / Glenn Jeffrey

KEY POINTS:

While many companies are scrutinising the sustainability of their fleets and moving to smaller-sized vehicles or alternative fuels, bigger is still better for clients of Custom Fleet NZ.

The country's largest fleet company has noticed the beginning of a move towards smaller cars for its clients but, in many cases, larger vehicles are still preferred.

For some of its clients, staff contracts dictate a larger vehicle. And in a tighter job market, if companies want to attract staff, then they have to offer a more prestigious marque than, say, standard pool vehicles.

Also playing a role in the continued upsizing of work vehicles are safety requirements within businesses, says managing director Geoff Tipene.

"While many will opt for smaller vehicles in the future, we will not see the larger vehicles completely disappear while there are still policies requiring this type of vehicle for safety, employee health and safety reasons and where they are required for specific purposes."

With more than 2000 New Zealand companies as clients, and a fleet of more than 130,000 vehicles in Australasia, Custom Fleet has a large acquisitions team that studies all the vehicles available here and links the product with the company.

"We are not aligned with any particular vehicle manufacturer and will, therefore, provide our customers with the vehicles that best suit their situation," says Tipene.

"We will not try to influence their choices unless we feel another vehicle will provide a better solution."

There was initial interest in hybrid vehicles - such as the Honda Civic and the Toyota Prius - for fleets when they became readily available in the market.

Not only is there the cachet for employees of driving a "green" car, but hybrids use up to half as much petrol as their non-hybrid equivalent and produce 90 per cent fewer emissions.

But for Custom Fleet's clients, the price of leasing a hybrid over the usual 36-month period is not feasible for many companies - not with a Toyota Prius starting at $43,000 and a Honda Civic hybrid at $35,000.

For that price, many companies could lease a high-end vehicle suitable for management.

Now, more companies are looking at diesel as an option - especially for pool cars, and especially as petrol prices keep rising.

"But with some companies, it is a matter of getting staff around New Zealand. They have to get from A to B for their work, so they factor in the price of petrol into the sale," says Tipene.

However, another fleet company has found a rapidly growing demand from clients for alternative products.

Dennis Kelly, managing director of FleetPartners, says demand for more sustainable fleet solutions has soared in recent years.

For now, however, the choices are limited. That is why strategic fleet management and careful selection of vehicles and fuel types are vital to reducing a fleet's carbon footprint, he says.

"The choice of vehicle, type of fuel, how the vehicle is used and even how it is disposed of are critical to achieving lower emissions and more sustainable fleet management."

Kelly says businesses seeking to reduce their carbon footprint should focus on a "whole of life" approach to their fleets.

"Greening your fleet should be good for the environment and for your business.

"Purchasing smaller, more fuel-efficient vehicles is an important step, but fleet managers should also take into account fit-for-purpose considerations, occupational health and safety and the costs/benefits of different fuels," Kelly says.

"Other factors such as the composition of your fleet, driver training, maintenance and even vehicle operation can all help reduce emissions and save on fleet costs at the same time."

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