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Five Reasons for Greater Flexibility in Fleet Management

Holman Marketing
July 13, 2021

A vehicle shape made up of vines

It is no secret that we Germans love certainty. And generally, this is not a bad idea. Even our American colleagues say, “Better safe than sorry,” from time to time.  But the idea of certainty currently has serious disadvantages as well. Because our market is no longer as straightforward as it once was. Don’t you think? We’ll give you 5 examples that speak for greater flexibility in leasing.

1. The question of how many employees will work from home has a significant impact on fleet management planning. But where the path will take us after 2021 is uncertain. In a survey by the auditing and consulting firm EY, 81% of all respondents said that in the future they no longer wanted to work in the office every weekday. Seven percent wanted to work only from home. Companies like SAP allow for working from home up to 100% of the time. Other companies, such as Adidas, want to see their employees back in the office as soon as possible. And in the meantime, works councils have also discovered the topic themselves and want to have a say. Currently, the only thing that is certain is that nothing is certain.

2. How often will onsite meetings take place in the next few years?  “Companies have reduced their travel budgets by 40% to 50%,” says Fabian Billing, head of the German offices of the management consultancy McKinsey & Company. About 50 billion less was spent on business trips in 2020 than in 2019, according to estimates of the business travel association GDR. It is already certain that “Field Service, Inc.” will spend more time in meetings in front of the computer than on the highway. What does this mean for your fleet? Hard to say. But at the moment, committing to a certain mileage when ordering a vehicle sounds like a game of chance.

3. Another factor for uncertainty involves supply problems in the automotive industry. Semiconductors are unavailable, supply chains are collapsing due to the pandemic, and even special plastics are becoming scarce. Fleet managers would be better off with contracts where the term can be extended easily and without penalties if getting new vehicles takes a little longer.

4. 2021 is an election year. Will we get a Green Chancellor? Or will Conservatives want to score points with extra green positions?  Tempo 130, emission reductions, even up to banning cars in cities – it’s all on the table. Even the EU Commission has gotten involved and wants to sue Germany because pollution levels are too high in some inner cities. No matter how the election turns out, there will be changes that will affect procurement decisions and exchange cycles of fleet vehicles. Committing to fixed terms for your leases now in the face of such volatility can be a disadvantage for your fleet.

5. The other keyword: new engine technologies. Or: Do you really know exactly what cars we will need in five years’ time? Electric cars? Trucks with fuel cells? Hybrid or fully electric cars? Even the car industry does not know exactly where the path will take us. Which is why Martin Daum, head of Daimler Truck AG, is keeping all options open: “Our customers make rational purchasing decisions and do not want to compromise on the suitability for everyday use, tonnage and range of their trucks. With our alternative drive concepts from Mercedes-Benz, the GenH2 fuel-cell truck, the eActros LongHaul and the eActros, we are focused on customer requirements—and are creating real, locally CO2-neutral alternatives for them.”

Conclusion: The world is changing. And with it, your fleet will also change. Therefore, it is now important to be able to react flexibly to changes.  Our advice: Free your leasing contracts and fleet management from restrictions, and stay flexible. We would be happy to advise you.

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