Some daily rental companies are beginning to turn down fleet business in favour of higher margin consumer bookings, the Association of Fleet Professional (AFP) is reporting.

James Pestell, AFP Director, said that businesses were finding no vehicles were available using corporate rental online portals but then discovering that if they visited a rental outlet in person, they could hire a car or van at a retail rate using a credit card.

“We’re not saying all rental companies have adopted this as a policy and we are not saying that, even within the same companies, it is happening uniformly across the country – but it does certainly seem to be happening, according to feedback from our members.

“To some extent, suppliers doing this is understandable. Most of them are operating reduced fleets in a time of high demand, so it makes commercial sense for them to be employing their assets in markets where bigger margins are available.

“On the other hand, fleets are regular and reliable customers for daily rental and often have longstanding relationships with their preferred rental suppliers. Their needs should arguably be given due consideration. Certainly, we suspect that many of our members would rather be given the opportunity to have conversations about rates than simply be shown zero availability when there are vehicles available for rent.”

James said that rental shortages were currently a regular topic of conversation among AFP members, with widespread discussions about the difficulties that were being faced.

“It’s a situation that is showing few signs of improvement and may even get worse before it improves. Rental companies – like everyone else – simply can’t access new vehicle supply in the quantities they need.

“However, it does create difficulties for fleet operators in all the usual instances when rental vehicles are needed – to cover vehicles that are off the road for repair, for new employees, for temporary contracts and more.

“Some fleets are keeping hold of vehicles that they would normally have defleeted to use as pool vehicles as an alternative but this is far from a perfect solution, with the vehicles often in the wrong locations for the current need.”

A shortage of daily rental vehicles is causing a wide range of problems for businesses affecting everything from maintenance to taking on new starters, the Association of Fleet Professional is reporting.

James Pestell, AFP Director, said that the issue had been affecting van short term hire for some time but had now started to spread to cars, becoming a common subject of discussion among AFP members.

“The problem is that many daily rental companies defleeted large numbers of vehicles during the pandemic and, because of the semiconductor shortage affecting car and van production, have found difficulty in replacing them. Even when they can get stock, they are having to pay something closer to list price, which has not historically been their business model.

“As a result, fleets have found themselves in a situation where booking rental is very difficult, prices are rising quite quickly and, even if you can get hold of a vehicle, the supplying company will often ask for it back at some point to fulfil other pre-existing bookings.

“This is happening at a time when fleets themselves are in situation where, again because of vehicle production issues, they actually need more cars and vans from rental companies. It is becoming a genuine headache on a daily basis for many operators.”

James explained that problems reported by AFP members were widespread and varied.

“Having to delay servicing and repairs is an issue because relief vehicles are often unavailable while cars and vans are off the road. Clearly, this has operational implications from a risk management point of view that require careful handling.

“Similarly, there are few rental vehicles to provide a fallback when breakdowns occur, meaning downtime is becoming a more and more serious problem, interrupting fleet operations and adding to costs over time.

“Also, getting hold of rental vehicles for use by new starters while waiting for their company car to be delivered is tricky, especially for the kind of timescales that are now needed with new vehicle waiting times often tipping into 6-12 months.”

James added that there was no immediate solution to the problem in sight and that effective fleet management strategies were few.

“Probably the single most effective thing that fleets can do is to hang on to some of the vehicles they would normally defleet to use as pool vehicles in place of rental provision but that in itself creates problems with keeping them in a roadworthy condition while they are often not stored in the locations where they are ultimately needed.

“The underlying problem is that there are simply too few vehicles around and, until production issues are resolved, the situation will persist.”

Van electrification expert Paul Kirby has been added to the speaker line-up for the Association of Fleet Professionals’ (AFP) first-ever annual conference, which will take place at The British Motor Museum, Gaydon, on May 18^th.

He will discuss his own ideas and experiences as well as moderating a discussion called “The Trouble With Vans” which covers the issues that businesses are facing on their journey to eLCV adoption. Other speakers on the panel include Colin Hutt of Clarion Housing, Matt Hammond of Altrad, Stuart Murphy of Royal Mail, and Steve Openshaw of Eric Wright.

Paul operates his own EV Essentials company and has worked within the motor industry for more than 25 years, notably as a van specialist for a number of companies including Vanarama and LeasePlan.

AFP chair Paul Hollick said: “Van electrification is among the topics at the top of the fleet agenda at the moment with many businesses tackling a range of practical issues from charging to payload, and we are very pleased to be able to include Paul and the other panel speakers as part of our line-up. We are sure that they will have some very interesting observations that delegates will be able to take away and apply to their own situations.”

He added that Mercedes-Benz had signed up as a platinum sponsor for the AFP Conference, alongside Allstar and Mina.

“Obviously, corporate sponsors play a huge part in making an event such as this possible and we’d like to sincerely thank the three companies that have come on board in this capacity. Their contribution is very much valued.

“We’ve already had delegates fill around 60% of the available capacity. Places are limited, so we advise people to register as soon as possible.”

Registration is at https://www.theafp.co.uk/conference/ and open to AFP members only.

A special webinar about its recently-launched Dealer Standard has been announced by the Association of Fleet Operators (AFP).

Being held on Wednesday 20^th April at 9.30am, it will feature AFP board members James Pestell and Ric Baird alongside Zoe Lawson, head of corporate sales at Marshall Motor Group, all three of whom were involved in the accreditation’s development.

Topics covered will include why and how the Standard was created, its aims, what it includes, the benefits to all parties involved, monitoring and feedback processes, and how fleet operators, service providers and dealers can get involved.

The AFP Dealer Standard is a 28-point accreditation designed to ensure that fleet cars and vans are delivered in a consistently good condition to the end user, who is given a comprehensive handover that covers new technology, particularly if they are taking delivery of their first electric vehicle.

Marshall, Inchcape and Sytner have become the first major motor retailers to commit to the Standard, and more look set to soon follow suit, said Paul Hollick, chair at the AFP.

He said: “We’ve been very pleased with the initial response to the launch of the Dealer Standard from across the fleet and dealer sectors. It has been extremely positive.

“Our intention was always that the accreditation should become used right across the industry by all dealers and fleets and we’ve made an excellent start towards that objective.

“Indeed, we are already hearing from some major leasing fleets that they are planning to work in the future only with dealers who commit to the Standard, which would certainly help to accelerate its adoption.

“We’ll be discussing these issues and more as part of the webinar, which will serve as an excellent introduction for any organisation interested in finding out more.”

The webinar is open to all interested parties and details can be found at https://www.theafp.co.uk/webinars/dealer-standards-launch/.

New government plans for the UK’s electric vehicle (EV) charging infrastructure unveiled on Friday have been broadly welcomed by the Association of Fleet Professionals (AFP), saying they deliver “most of” the measures for which the professional body has been campaigning.

The Electric Vehicle Infrastructure Strategy commits £1.6 billion to the creation of 300,000 public charge points by 2030, as well as placing new legal responsibilities on charging providers covering means of payment and other factors.

AFP chair Paul Hollick said: “We need more chargers of the right type in the right locations to support the massive EV rollout of cars and vans to which the fleet sector is committed.

“It’s an area in which we have been campaigning heavily, including conversations with the government, and we are pleased to see that most of what we have been asking for is covered in the new announcement.

“The challenge now is to ensure that the rollout that the strategy promises happens at the right pace, matching the development of the EV parc in terms of both numbers and location of charge points.

“We also need to ensure that the right type of charge points are available, especially those with larger bays that can handle larger electric vans. This is something that is essential for fleet adoption of these vehicles.”

Paul added that the AFP’s Kerbside Charging Group would be reporting within 4-6 weeks on its work into the creation of a national “heat map” showing where driver demand for kerbside charging was required.

“We’ve drawn in data covering something like 70,000 drivers of company cars and vans who live in apartments or terraced housing, don’t have the option of installing off-road charging, and need access to kerbside facilities.

“The aim of the Kerbside Charging Group is to ensure that there is a safe and secure kerbside facility within a five minute walk of their homes. The creation of the heat map is a significant step in this process, we believe, and we will be sharing the data with national and local government as well as charge point operators.

“Our intention is that the new information is fed into the new government strategy and used as a detailed guide to where charging provision is most urgently needed.”

A new voluntary industry standard covering dealer deliveries of cars and vans to fleet customers is being launched today by the Association of Fleet Professionals (AFP).

The AFP Dealer Standard consists of 28 points covering pre-delivery standards, the condition of the vehicle on handover and familiarisation with its key functions.

Paul Hollick, chair at the AFP, explained: “The Dealer Standard is quite simple in its intent – to ensure that the vehicle is delivered in excellent condition to the fleet end user, who is shown the fundamentals of how it works and treated courteously.

“The need for this kind of benchmark has become apparent over time as a number of factors have emerged. Probably the most significant is that cars and vans have been rapidly becoming more complex. The time when a driver could sit in the seat of a new model and work out all the key functions in a couple of minutes are long gone.

“Modern vehicles require a degree of familiarisation on handover – especially in instances where drivers are adopting an electric model for the first time – in order to be used safely and effectively.

“At the same time as this requirement has become essential, issues such as the pandemic and supply issues have placed dealers and the logistics sector under considerable pressure, meaning that handover standards have varied considerably. What we hope to encourage is a high degree of consistency in important areas such as ensuring that vehicles arrive with a high level of charge.”

Paul said that the AFP intended for the Dealer Standard to be rapidly adopted as an industry benchmark on a voluntary basis.

“Dealers can sign up to the Standard for a fee by getting in touch with the AFP and committing to meet its requirements, at which point they also become a member of the organisation. They can then use the Dealer Standard logo in marketing materials and tenders to promote their participation in the programme.

“We have, of course, been talking to major dealers as part of the creation of the project and there is a high degree of interest. They recognise the importance of getting this crucial element of the fleet customer experience right and the first few who have decided to take part should be announced within a few weeks.”

Further details about the AFP Dealer Standard can be found here.

Making grey fleet operations low-carbon is going to one of the major challenges of the next few years, says the Association of Fleet Professionals (AFP).

Paul Hollick, chair at the AFP, said that the contrast in emissions between rapidly-electrifying company car schemes and employee’s own vehicles was becoming increasingly marked.

“By the end of this year, and certainly looking into 2023, it’s likely that many major fleets will have something like a 30-50% rate of EV penetration. They are well on the way to becoming zero emissions fleets.

“However, the rate of change for grey fleet is much, much slower. Among private motorists using their car for work purposes, those opting for PHEVS and EVs are still very much the outliers and that situation may well persist for a while.

“For organisations who are determined to work towards low-carbon and net zero futures, this is a genuine issue and, we believe, one of the major challenges for fleets over the next few years.”

Paul said that there were actions that fleets could take and make part of their fleet policies in order to attempt to accelerate change.

“Probably the most obvious solution is a EV-based salary sacrifice scheme. These are currently very attractive while electric car taxation remains low and represent an attractive potential benefit to many employees. Also, because they are operated by third parties, they require little additional resource from the fleet department.

“It is also essential to ensure that infrastructure and reimbursement to support grey fleet EVs is being properly managed. That might mean helping grey fleet drivers who are keen on PHEV or EV adoption to install charging at home or, if they don’t have a driveway, to access charging elsewhere. It also means ensuring that reimbursement for charging is being carried out correctly, something that current AER rates don’t always cover.”

Paul added that, ultimately, fleets might need to take greater control over grey fleet vehicles that are being used for company business in order to achieve their environmental aims.

“It may be that, over time, you have to set standards so that only vehicles that meet ever more stringent emissions targets are used as part of your grey fleet operations. However, it is difficult to know what will happen to petrol and diesel vehicle prices and residual values as we head towards 2030, and the financial impact on employees will very much need to become part of your calculations over time. They may not be able to afford to make the transition.

“It may well be it is inevitable, towards the end of the decade, that fleets have to use more rental and pool cars as a substitute for grey fleet in order to ensure that only low and zero emissions vehicles are used on company business.”

The Association of Fleet Professionals (AFP) has announced its first-ever annual conference, to take place at The British Motor Museum, Gaydon, on May 18^th.

Paul Hollick, chair at the AFP, explained that the Covid pandemic had prevented the industry body from holding such events since its formation in early 2020.

He said: “The timing of the creation of the AFP and the arrival of coronavirus means that almost all of our events to date have been digital, so we are very pleased to be able to unveil the plans for our annual conference and to see everyone in-person.

“It is open to all AFP members and will focus heavily on a range of topics surrounding the adoption of electric cars and vans, which is very much the headline subject of the moment.

“This will include a look at the EV charging infrastructure at home and in the office, how to reimburse your drivers for home charging costs, delivering a smart EV highway charging solution for your vehicles, salary sacrifice deployment, and using data and telematics to optimise your fleet and monitor your EVs.

“Mercedes-Benz is on board as our first sponsor and we hope to attract interest from a range of businesses to support the conference and become involved in the event.

“We’ll be announcing more details about speakers soon, as well as how to register, but May 18^th is a date that all serious fleet operators should be adding to their diary, we believe.”

Poor electric vehicle (EV) supply is becoming a major threat to fleet electrification plans and the situation is unlikely to improve in the near future, the Association of Fleet Professionals (AFP) is reporting.

The issue is significantly affecting electric cars but the situation for vans is even more acute and means that some businesses are even considering adding petrol and diesel vehicles back onto their choice lists, said Paul Hollick, AFP chair.

“We are in a position where many company car drivers are placing huge pressure on their employees to move them into EVs because of the current benefit in kind advantages but the supply to satisfy that demand is very frequently unavailable.

“Some manufacturers are even asking fleets to take certain EVs off choice lists because they simply do not know when any orders might be able to be fulfilled and, to fill the gaps, some employers are considering readopting ICE (internal combustion engine) vehicles, which seems like a deeply retrograde step but might be the only practical solution.”

The situation was leading some fleets to employ unusual methods in order to attempt to obtain stock, Paul added.

“Because their usual supply sources are failing, they are using social media such as LinkedIn to issue general appeals for any leasing companies that can provide vehicles of the type they need. This creates a potential issue by taking them outside of trusted supply arrangements.”

Similar issues were especially threatening industrywide efforts to begin adopting electric vans during 2022, he explained.

“Many of our members were expecting that this year would provide a genuine opportunity to begin electrification of their light commercial vehicle operations but it appears as though supply is even poorer than for cars with delivery dates for many models unavailable.

“This creates a real conundrum. Ongoing supply issues mean that many are now operating vans that are sometimes more than six years old. They really need changing for basic reliability and safety reasons but delivery times are unavailable for the electric replacements that businesses want to acquire.”

A final problem was being encountered by some fleets and their drivers finding it difficult to get home charging installed because of similar supply issues to those affecting vehicles.

“Semiconductor shortages are at the heart of most EV supply disruption and the same is true of chargers. Some drivers who have been able to get cars or vans are therefore unable to charge them effectively. This is creating a further layer of frustration.

“Certainly, there is a view emerging across our organisation that the current situation makes the government’s 2030 rule for complete production electrification look increasingly optimistic. The nearest time that it appears supply might normalise is well into 2023 and it would now require a huge effort to meet the official deadline.”

Advice on car and van electrification from the AFP can be found at https://ev-hub.theafp.co.uk.

Field Dynamics has been appointed as the data partner to the Association of Fleet Professionals (AFP) for its recently-announced national electric vehicle (EV) kerbside charging demand map.

The online resource, expected to be launched at the end of Q1, will show where fleet drivers reside who need kerbside charging, generally because of living in a property with no drive, meaning private charging cannot be installed.

Charlie Gilbert, partner at Field Dynamics, explained: “This project will involve harvesting, cleansing and processing information largely provided by the AFP’s project team members, who are supplying data from their fleets at postcode geographies.

“We will then develop a methodology to compare this fleet footprint data with information about on- and off-street households to provide a view of which fleet drivers are in local authorities where there is high kerbside charging demand.

“The online map we then construct will be public facing and available for everyone to query and interrogate.”

Paul Hollick, chair at the AFP, added: “We’re pleased to be able to appoint Field Dynamics to this project and start to move forward with construction of the map, which we aim to promote to central and local government, charging providers, power companies and others.

“Initially, we expect to use data from AFP major fleets operating EVs totalling about 160,000 drivers but have also issued a general data call from any businesses across the country that might be able to contribute.

“Every day we are hearing from fleets, especially van fleets, that want to speed up the electrification of their operations but are being hampered by the problem of charging for drivers who do not have off-road parking or any other access to a charger.

“This is generally thought to be about 40% of drivers across all fleets but, when it comes to light commercial vehicles, we believe the figure to be nearer 70%. That means good availability of kerbside charging is essential if van electrification is going to be a success.”

Field Dynamics is a leading net zero data analytics consultancy that performs advanced data science and spatial analysis, as well as creating bespoke modelling solutions. Much of its work is delivered using its cloud intelligence platform, the Accelerated Insight Platform.

Its projects span both the public and private sector with clients covering leading management, strategy and transport consultancies, distributed network operators, charge point operators, government departments and local authorities.

Fleet operators interested in contributing data to the AFP project should visit https://ev-hub.theafp.co.uk/ev-kerbside-charging/ to indicate their interest and a member of the AFP will call them to discuss how the process works. All information provided will be anonymised to avoid breaching GDPR regulations.

For more information on the Kirbside charging project, click here.