The latest news in fleet management from LeasePlan.

Welcome to On The Horizon

The Super Future was the theme of LeasePlan’s recent Fleet Forum event in Auckland. Reflecting on the current preoccupation in the vehicle industry on the ‘next big thing’, whether it be the concept of mobility or electric or autonomous vehicles. We cover the latest on these topics in this edition of On the Horizon, as well as taking a closer look at how driver behaviour can benefit your bottom line.

A glimpse of the future

The future is now, and it looks different from what we might have expected — that was the key message from the speakers at LeasePlan’s annual Fleet Forum event, held at Auckland’s ANZ Viaduct Events Centre in early September. More than 170 LeasePlan clients, contacts and suppliers were entertained, informed and given the chance to network at this popular event, which had the theme of ‘Super Future’, shaping a better tomorrow.

Following an introduction from LeasePlan New Zealand Managing Director Charles Willmer, the event was opened by a video presentation from Transport Minister Simon Bridges, who outlined the government’s schemes for encouraging electric vehicle (EV) uptake. His message was underscored by Mark Gilbert, the chair of the Drive Electric organisation, which works to promote the use of EVs and the development of an appropriate infrastructure. Mark's presentation discussed where to next for plug-in vehicles in this country.

Another interesting glimpse of the future was provided by the general manager of Uber New Zealand, Richard Menzies. He outlined how vehicle usage is changing worldwide, and how Uber is developing new services beyond just driving people from A to B, including carpool services, enhancing public transport networks and ‘Uber Eats’ food delivery.

Commentator Bernard Hickey painted a picture of the current economic situation in New Zealand, with its previously unheard-of combination of strong GDP growth and low inflation. However, he refused to be drawn into any ‘crystal ball-gazing’ about what might happen next…

Stephen Hogg of PwC gave the audience an insight into the future of lease accounting and the introduction of the new IFRS (international financial reporting standards) from 2019, and how they will affect companies with leased vehicles. Also speaking on the subject of how new legislation will affect workplaces in the future was Gordon MacDonald, Chief Executive of WorkSafe, who outlined the new Health and Safety at Work Act and the new responsibilities for employers.

Aside from MC Jeremy Corbett’s clever commentary, the morning’s entertainment and dose of thought-provoking came from Dr Tom Mulholland, ‘the attitude doctor’, who spoke about his work on encouraging Kiwis to engage in more healthy thinking. Dr Tom’s exercise on who in the room was likely to make it to 80 years old was food for thought for many of those in the audience who have been known to drive and text, who may be a little ‘short for their weight’ and who enjoy a few drinks.

With ample opportunity for networking and reconnecting with others in the industry, Fleet Forum was a successful and enjoyable morning out for all attendees.

The future of mobility

The theme of this year’s Fleet Forum, the Super Future, also gave LeasePlan New Zealand the chance to muse about future of mobility. Commercial Director Johannes Jacobs (JJ) says we should expect to see a shift in emphasis, from how businesses physically get people places to how they achieve their broader goals in terms of work and productivity. Looking forward, he says, companies will increasingly start looking for tailor-made mobility solutions.

‘We’re talking about mobility that combines transport needs, travel needs, connectivity and technology into one integrated managed service that enables all of us to get more work done more effectively,’ JJ says. ‘Right now, when we think of mobility, most people think of how to get the vehicles they own or lease moving as freely and efficiently as possible. Looking ahead though, the whole concept of mobility will be much more open.’

Other trends identified by LeasePlan when looking at the future of mobility include the sharing or rental of vehicles for personal and business use; on-demand commercial ride sharing with taxi companies; high-tech solutions to carpooling; using technology to better manage parking; and using apps to bring planning, booking and payments for travel to device level.

'And while many people may be reluctant to give up their cars, pressure may be put on them in the form of increased cost and inconvenience as governments seek to discourage fossil fuel use and turn greater parts of cities into walking and cycling areas in a bid to improve urban quality of life', JJ says.

‘We’re going to see a significant casualisation of the motorised economy, as more and more people opt to not own, not drive or to only drive as required. Even those who have a specific need for ownership, whether in cities or outside, will look to save money by driving fewer miles and seeking cheaper fuel options.’

In the light of all these developments, LeasePlan is rethinking its role.
‘Leasing takes on new meaning in the sharing and digital economies. As mobility becomes the new focus, our role and focus is moving away from vehicle provider to mobility service provider. Our future lies in combining and managing corporate travel, corporate fleet and facility management.’

RUC exemption for EVs extended

The government’s commitment to getting more EVs on the roads has been underscored by the announcement that the road-user charges exemption for electric light vehicles has been extended to 2021. In early September, Transport Minister Simon Bridges announced that the exemption, which will come into force on 22 September, would be extended from 30 June 2020 to 31 December 2021.

The exemption from RUCs, available to vehicles which don’t pay for petrol at the pump, could save drivers of EVs up to $600 a year.

‘We’re committed to accelerating the uptake of EVs in New Zealand, because the benefits of going electric are clear,’ Bridges said. ‘They’re cheaper to run than petrol or diesel vehicles, they’re powered by our abundant renewable electricity supply, and they’ll reduce the amount of emissions that come from the country’s vehicle fleet.’

At current prices, charging an EV is equivalent to buying petrol at 30 cents a litre, compared to current petrol costs of just under $2 a litre. The government is also working on introducing a RUC exemption for heavy EVs such as buses and trucks.

The RUC exemption is one of 14 government initiatives announced in May to help achieve its goal to double the number of EVs on New Zealand roads each year, to reach 64,000 by 2021. Further information on the government’s electric vehicles programme is available at www.transport.govt.nz/ev.

Self-drive car hits the road

Google cars and autonomous Ubers might be the talk of the vehicle industry overseas, but Kiwis can have a look first-hand at how a self-drive car performs in a public-road trial in November.

The New Zealand Traffic Institute (Trafinz), Volvo, the New Zealand Transport Agency and the Ministry of Transport are joining forces to present an autonomous vehicle demonstration in Tauranga in November, as part of the Trafinz conference. The trial will be held over 15 km of public road, in normal traffic conditions.

The New Zealand Transport Agency and Ministry of Transport are working with Volvo and Trafinz to ensure the trial will operate within the law, including appropriately managing any safety risks.

Volvo has announced a worldwide Drive Me autonomous vehicle research project, part of its vision that no one will be seriously injured or killed in a new Volvo by the year 2020. One hundred Volvo customers will drive IntelliSafe Autopilot-equipped XC90s on Swedish roads in 2017, to explore the practical use of such vehicles in real-life situations.

Keeping an eye on driver behaviour

Car manufacturers can install safety features and new engine technology, but when it comes to vehicle safety and efficiency, who’s behind the wheel makes the biggest difference of all. Driver behaviour has a major impact on fleet costs, from fuel and maintenance expenses to insurance premiums. So how can fleet managers maximise the performance of their drivers, to improve both safety and the bottom line?

LeasePlan's Fleet Reporting and Telematics solutions can help fleet managers keep a closer eye on driver behaviour. Fuel consumption and accident reporting are two areas to watch, to identify emerging issues and to get to the root of any  potential problems.

Once you have identified problem behaviours  — those vehicles with higher than expected fuel usage or greater numbers of incidents — you can target driving training and preventive measures more efficiently. You may also be able to see patterns, such as accidents occurring when drivers are tired or in unfamiliar environments, and address these appropriately.

For more information on how LeasePlan can work with you to identify trends in your fleet usage, through Telematics and Fleet Reporting, visit our website or get in touch with your client development manager today.

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