GE Capital at the Fleet Event in Silverstone discuss The State of Car Policies in Europe and Key Fleet Challenges, a 2013-2014 edition.

1. GE Capital
The State of Car Policies in Europe
and Key Fleet Challenges
2013-2014 Edition

2. Foreword
2014 is upon us and with the New Year comes a sense of
optimism. Broad economic data suggests that Europe is turning
a corner and, within our industry, fleet managers look to be
starting the year on an optimistic note as well.
This is highlighted in our first State of the Car Policy Report.
A vast majority of respondents from our survey – 80% to be
precise – expect their fleets to either grow or remain stable over
the next two years. Likewise, over three quarters of respondents
told us they are looking to expand their fleet into new countries,
as they aim to take part in the fast growth of emerging markets
such as Russia, Turkey and Brazil.
These findings point to promising signs of confidence returning
to the market. To be sure though, there are still critical issues
to overcome, and we developed this report with this in mind.
Our goal has been to identify the key challenges that global,
European and local Fleet Managers currently face and
benchmark how companies across Europe structure their car
policies, in order to help them overcome these challenges.
Indeed, with the first edition of the report, we are embarking on a
year-long discussion entitled The Fleet Debate, which will look at
the different aspects of the fleet management universe, providing
managers with the opportunity to find best practices from across
the industry and to engage with peers and opinion leaders to
identify new ways to improve the efficiencies of their fleets.
We are excited to see that the fleet industry is eager to engage
in such a debate. Over 70 companies managing a cumulative
150,000+ vehicles took part in this survey, and leading fleet
managers have also provided invaluable insights on the current
environment which you will find in the pages of this report.
We hope you enjoy The State of Fleet Policy report and join the
Fleet Debate.
Maurice Benisty,
Chief Commercial Officer at GE Capital International

3. Contents
Executive summary: 10 Key findings
2
Data and methodology
3
Section 1: The state of car policy
4
• By type of fleet: comparing personnel only and commercial and personnel car policies
5
• By fleet size: comparing large and small fleets
6
• By geographic region: comparing globally and locally managed fleets
7
Section 2: The three key challenges
9
• Driver behaviour
10
• Global fleet management
12
• Fuel management
13
The information materials and opinions contained in this document are for general information purposes only, are not
intended to constitute legal or other professional advice, and should not be relied on or treated as a substitute for specific
advice relevant to particular circumstances.
Except as required by law, neither GE Capital EMEA Services Limited, nor its affiliated companies or businesses accept any
responsibility and shall not be liable for any loss or damage whatsoever, whether in contract, tort (including negligence) or
otherwise arising from reliance on the information, materials and opinions contained in this document.
1

4. 10 Key findings
01.
02.
Financing through an operating
lease is the main funding method
for corporate companies
“Improving drivers behaviour”
represents the top challenge
fleet managers face (61% of
respondents)
03.
04.
80% of the fleet managers expect
their fleets to grow or remain
stable in the next 24 months
60% of respondents told us their
fleet management is handled
internally
05.
06.
The most common car allocation
methods are:
• Total Cost of Ownership (TCO) (25%)
• Fixed budget (21%)
All firms surveyed stated they
have fuel card solutions in place
and 42% of them are looking for a
global solution
07.
08.
Limited use of telematics (22%)
for influencing drivers behaviour,
currently mainly used in
combined fleets (personnel
& commercial)
60% of respondents already
operate on regional or global scale,
with 54% looking to further optimise
their global approach
09.
10.
Almost two thirds (62%) of
respondents told us they have
active CO2 restrictions in place.
Most common restrictions are
within 130-140 g/Km limits.
Over three quarters (78%) of
respondents intend to expand their
fleet into new countries. Russia,
Turkey and Brazil are the most
anticipated new geographies
2

5. Data and methodology
An online survey...
72 fleet managers responded to an online
questionnaire structured to cover five
categories:
150,000+
• Choice of car
company cars
managed across
72
companies
• Environment
• Fuel management
• Insurance
• Driver behaviour
The responses were collected during October
& November 2013.
…with insights from experts
Following the survey, a panel discussion was organized to debate the outcomes of the survey and gain
further insights from leading European fleet managers.
Robert Patrick
MSD
Luc Dendievel
Regional Sourcing Manager at Merck, Sharp and
Dohme (MSD) EMEA. Robert co-leads MSD’s fleet
procurement, policies and operations for their
12,000 vehicle fleet in the EMEA region. In 2012,
Robert was co-winner of Fleet Europe’s International
Fleet Manager of the Year award. MSD is a leading
research-driven healthcare company.
Category Director Fleet EMEA at Johnson &
Johnson, Luc strives to optimise fleet management
at international level. In 2008, Luc won the Fleet
Europe Innovation award and, in 2013, he was
elected International Fleet Manager of the Year at
the Fleet Europe Awards. Johnson & Johnson is a
multinational medical devices, pharmaceutical and
consumer goods manufacturer.
Andy Leeden
Paolo Penati
Global Fleet Category Manager for AstraZeneca,
Andy is responsible for global fleet strategy, supplier
management, development, procurement and
execution, covering more than 70 markets and
20,000 vehicles. AstraZeneca is a global, innovationdriven, integrated biopharmaceutical company.
European Sourcing Manager for the Stanley Black
& Decker group, Paolo is responsible of 4,800
vehicles to manage thought coordination of 20 local
fleet managers. Stanley Black & Decker is a global
manufacturer of hardworking, innovative, powerful
industrial tools and household hardware.
Structure of the report
The report is structured in two main sections.
• he first section outlines the key elements of a typical
T
car policy and allows users to benchmark their own fleet
policies against others, depending on the type, size and
scope of their fleet
• he second section analyse the three key challenges fleet
T
managers are currently facing, related to driver behaviour,
global fleet management fuel management
3

6. Section 1:
State of car policy: overview
According to our respondents, the most typical car policy structure is funded through an operational
lease, managed internally with TCO-driven allocation approach and active CO2 restrictions.
Funding
47%
Fleet managers are mainly funding their fleet
through operational lease. This funding solution is
used by almost half the companies we surveyed.
The largest difference in funding methods is
between the personnel-only and combined fleets.
Operational lease
Fleet management
Outright purchase
20 %
Finance lease
16% 17%
Fleet management
The majority of companies surveyed are managing
their entire fleets internally. However, the larger
and more global the fleet becomes, the more
often companies look to outsource their fleet
management activities.
23%
17%
Internal management
60%
Outsourcing
Partial outsourcing
Allocation strategy
The most common fleet allocation strategy
is based on TCO, followed closely by fixed
budget approach. TCO driven is a strategy most
commonly used for large and global fleet, as well
as for combined (commercial and personnel cars)
policy, whereas for personnel car fleet the fixed
budget is more commonly used.
25%
21%
17%
11%
13%
13%
TCO driven
Fixed budget
Car list
Car list with option
Environment
Others
Environment
The majority of companies surveyed have active
CO2 restrictions in place. The companies having
such restrictions in place have global and large
fleets.
38%
62%
No active CO2
restrictions in place
Active CO2
restrictions in place
Driver behaviour
Currently about half of the fleet managers surveyed
have programmes in place to influence the
behaviour of their drivers. Such programmes are
less common in personnel only fleets. “Influencing
driver behaviour” has been highlighted as the #1
challenge for fleet managers. We find the number
of companies with such programmes is likely to
increase over the coming years.
No programs in place
aimed at influencing
driver behaviour
51%
Programs in place
aimed at influencing
driver behaviour
4

7. State of car policy: by fleet type
Significant differences exist in how a car policy is structured to manage personnel only or combined
(commercial and personnel) fleets.
Combined cars
Commercial and personnel cars
Personnel only cars
Funding
60%
Taking out an operational lease remains the
preferred funding solution for fleet managers
with combined cars and personnel cars policies.
However, for the combined car policy, fleet
managers often use more than one solution.
Operational lease
41%
Fleet management
Outright purchase
22%
19% 19%
16%
Finance lease
12% 12%
Fleet management
We find that combined cars are mainly managed
internally by the fleet managers. However, for
personnel cars, the fleet management type is more
differentiated. Here, the chosen management type
is heavily influenced by the company’s strategy,
with the majority choosing to outsource or manage
internally.
20%
25%
7%
67%
Internal management
54%
Outsourcing
Partial outsourcing
26%
Allocation strategy
The allocation strategy is specific to the type of
fleet used. TCO-driven is a key allocation strategy
for all fleet and remains the first one for combined
car policy. While the most common allocation
strategy for personnel cars is with a fixed budget.
17%
28%
21%
24%
12%
17%
TCO driven
Fixed budget
16%
Car list
11%
Car list with options
13%
18%
Environment
13%
10%
Others
11%
Environment
Fleet managers set up more active CO2 restrictions
in personnel car policies than in commercial
personnel cars. For both policies, companies state
the maximum CO2 allowed emission at 140g/km
55%
45%
41%
59%
Driver behaviour
“Influencing driver behaviour by providing drivers
with programs” is an initiative more developed
for commercial personnel car policies than for
personnel car policies. In this case, companies have
developed driving programs such as e-training.
No active CO2
restrictions in place
Active CO2
restrictions in place
No programs in place
aimed at influencing
driver behaviour
45% 55%
59% 41%
Programs in place
aimed at influencing
driver behaviour
5

8. State of car policy: by fleet size
Car policies reflect the differences between the size and the complexity of managed fleets. This is
most evident between small and large fleet policies.
Small fleet
(0-250 cars)
Funding
Large fleet
(2000 cars)
43%
41%
Taking out an operational lease is the most used
funding solution for fleet managers of any fleet size.
However for commercial personnel car policies
particularly, smaller fleets are more likely to use
two types of funding, rather than a sole financing
arrangement.
Operational lease
Fleet management
24%
Outright purchase
23%
21%
Finance lease
17% 17%
14%
Fleet management
6%
We find small fleets are mainly managed internally.
However, for large fleets management is more
broadly spread across the three management
options, with internal management being the most
prevalent.
11%
35%
83%
Internal management
38%
Outsourcing
Partial outsourcing
27%
Allocation strategy
Managers of large fleets prefer to allocate
cars with a TCO-driven approach. However,
the picture for small fleets is more
fragmented as fleet managers use fixed
budget, TCO driven, car list and environment
options at approximately the same rate.
30%
17%
23%
TCO driven
13%
Fixed budget
19%
16%
Car list
8%
13%
Car list with options
15%
17%
Environment
16%
11%
Others
Environment
65% of large fleet respondents have active CO2
restrictions in place. While only 41% have this
initiative in place for small fleets. The average CO2
emission allowed for all fleet sizes is 140g/Km.
35%
59%
41%
65%
Driver behaviour
Small fleets are developing more programs in their
car policy to influence behaviour of their drivers in
comparison to the large fleets.
No active CO2
restrictions in place
Active CO2
restrictions in place
No programs in place
aimed at influencing
driver behaviour
39% 61%
46% 54%
Programs in place
aimed at influencing
driver behaviour
6

9. State of car policy: by geographic region
Differences in car policies are also dependent on the geographic scope of a fleet.
Local fleet
Specific to one country
Global fleet
Centralised policy for multiple countries
Funding
48%
44%
Taking out an operational lease is the most used
funding solution for all fleet managers, regardless
of their geographic scope.
Operational lease
Fleet management
22%
20%
Fleet management
Outright purchase
21%
13%
18%
12%
Finance lease
10%
Fleet managers operating localised fleets are more
likely to manage them internally. Those managers
operating a global fleet policy are likely to take a
more differentiated approach.
7%
37%
83%
Internal management
37%
Outsourcing
Partial outsourcing
26%
Allocation strategy
Fleet managers who operate on a single
country basis are mainly allocating cars with a
fixed budget. However, for global fleet,s ‘TCOdriven’ allocated cars is the more prevalent
approach.
28%
17%
28%
TCO driven
12%
Fixed budget
21%
Car list
7%
Car list with options
13%
16%
Environment
13%
16%
Others
17%
11%
Environment
67% of large fleet managers operating with
a global car policy currently have active CO2
restrictions in place. In comparison, only 45% of
large fleets operating with a local car policy have
this function in place. Across all fleet sizes, the
average CO2 emission allowed is 140g/Km.
55%
45%
33%
67%
Active CO2
restrictions in place
No programs in place
aimed at influencing
driver behaviour
Driver behaviour
Both local and global fleet are developing
programs in their car policy in order to influence
driver behaviour.
No active CO2
restrictions in place
48% 52%
47% 53%
Programs in place
aimed at influencing
driver behaviour
7

10. Driver Behaviour
“The safety training
is the most effective
solution for changing
driver behaviour”
Luc Dendievel,
Johnson Johnson
Global Fleet Management
“Global policy approach is a challenge faced by fleet managers”
Paolo Penati, Stanley Black Decker
Managing Fuel
“It is very complex to
setup international Fuel
programmes. There are
limited options available
in the global markets for
consolidating actual
fuel data”
Robert Patrick,
MSD
8

11. Section Two
Three key challenges
According to the fleet managers participating in the
survey the key challenges needing to be addressed in the
following year are:
Out of the total of respondents:
61%
are concerned
about driver
behaviour
54%
are looking to
optimise their
global fleet
48%
want to improve their
fuel management
approach
Out of this group:
Out of this group:
Out of this group:
• 1% are looking to
4
reduce damages and
accidents by influencing
driver behaviour
• 0% are looking for an
7
international coverage and
centralisation of policies
• 2% are willing to
4
have a fuel card with
international coverage
• 3% would like to have
1
more expertise and
knowledge of local markets
• 8% would like to
3
manage fuel costs and
track fuel consumption
• 0% are aiming to reduce
3
CO2 consumption
9

12. Driver behaviour
Influencing drivers to reduce damages and accidents
is the most common challenge
61
Share of companies with active programmes
in place for influencing driver behaviour,
by fleet type
%
of the fleet managers
surveyed are concerned
about driver behaviour
Global fleet
53%
European fleet
42%
Local fleet
52%
Large fleet
54%
Medium fleet
36%
Small fleet
61%
Personnel cars only
41%
Personnel commercial cars
55%
However only
49%
have initiatives in place aimed at
influencing driver behaviour
Is telematics a solution for influencing
driver behaviour?
Do you use telematics to monitor and influence
the driving behaviour of your fleet?
Yes
22%
78%
No
FLEET
THE
Small fleet and combined personnel commercial car policies
are the largest implementers of programmes targeted at
influencing driver behaviour.
DEBATE
2014
MSD
Johnson and Johnson is providing the drivers with an
online training program based on safety. According
to Luc Dendievel, the E-driving training is the most
effective solution for changing driver behaviour and
enhancing safety on the road.
According to Robert Patrick, from MSD, there is little
point in having telematics if there is no strategy or
resource allocated to analyse the data or a programme
of action to utilise that data to improve driver behaviour
and increase operational efficiency.
10

13. Driver behaviour
Influencing driver behaviour to reduce CO2 emission is
a key objective for fleet managers
61
%
39%
of the fleet managers are
looking for ways to influence
driver behaviour to reduce the
CO2 emission
Does your fleet have
active CO2 restrictions in
place today?
Fleet managers are looking to reduce their fleet
CO2 emission by implementing CO2 restrictions
in their car policy. 61% of fleet managers have
already implemented active CO2 restrictions with
an average capping of 140g/Km.
Additional measurements such as engine
reduction have been implemented for limiting
CO2 emission.
What is the maximum allowed CO2 emission
within your policy? (g/km)
No
180
150-160
Yes
11%
15%
63%
130-140
100-120
Does your fleet have other active
measurements to limit emissions/
pollution in place today?
61%
11%
Case Study
Local UK fleet: 800 cars, 300 cash takers
Engine reduction
58%
Imposed fuel
38%
Limit on fuel consumption
27%
Gearbox
14%
Sootfiller
7%
Challenge: The Customer asked GE Capital to conduct a study
to optimise car policy by providing a tax and cost efficient car
option to reduce CO2 emission.
Solution: We designed and introduced a new policy for users
where all cars were put on a contract purchase product and
would automatically have CO2 emissions reduced from
120g/km to 110g/Km.
Results: The customer was able to claim capital allowances
on the fleet (as they were using a contract purchase product)
ensuring 100% tax relief in year 1, due to the lower CO2
emissions. This resulted in a saving of €24 per month per car,
while the car choice for the employee did not diminish.
11

14. Global fleet management
Centralising policy and processes for multiple countries is
a growing focus for fleet managers
54
Case Study
%
Pharmaceutical Company
20,100 cars in 18 countries
of the fleet managers surveyed
are looking to optimise their global
fleet approach – with their top
priority to have a centralised policy
with international coverage
Challenge: The customer engaged GE Capital
to address the challenge of having a wide
portfolio of OEMs and models on its company car list.
Solution:
• enchmarked OEMs and models choice against peers in
B
their industry.
• dentified costs reduction by focusing on fewer OEMs and
I
models for their global policy.
• egotiation with OEMs for developing global contracts with
N
the best pricing solution.
60%
of fleet managers surveyed are
operating on a European or global scale with
single or multiple suppliers.
Based on the results of the survey, a global fleet
manager is more frequently dealing with three
or more leasing providers across the Globe.
Additionally, global fleet generally allow for
more than 5 car manufacturers in their policies
whereas, local fleet allow between 1 to 4 car
manufacturers.
THE
FLEET
DEBATE
2014
According to Paolo Penati at Stanley Black
Decker, global policy is a challenge faced
by most fleet managers. Their global policy
is generally centralised and managed by a
Global Fleet Council, however in order to have
a tailored European-specific approach, Stanley
Black Decker has established a European
Fleet Council as well.
However, some countries in the CEE region
need specific, stand-alone policies. The
difference of leasing solutions, manufacturers
offered, taxation and regulation across the
various regions have to be supported by
different suppliers.
53%
Results: GE Capital consultants delivered over €14MM in
savings through a reduction of OEM’s from 13 to 4 on a
global level.
On what scale do you operate your fleets?
Global
26%
European
33%
Local
40%
Number of partners by geographic scope
How many fleet leasing providers do you have?
17%
61%
19%
22%
38%
19%
23%
2 Suppliers
38%
23%
3 Suppliers
More than
3 suppliers
24%
Global scope
1 Supplier
8%
European scope
Local scope
How many car manufacturers does your policy allow?
17%
28%
61%
8%
29%
46%
22%
17%
11%
32%
1 Manufacturer
2-4 Manufacturers
36%
5-9 Manufacturers
21%
10 Manufacturers
and more
Global scope
European scope
Local scope
12

15. Managing fuel
Having a single fuel card solution covering all markets
remains a challenge
100
%
Of fleet managers use fuel
cards in their fleet policy
54%
of fleet managers are trying to
improve their approach to fuel management,
with their top priority being to have a fuel card
with international coverage
Based on the responses, all participants are using fuel cards
in their fleet policy. 62 % of the fleet managers have national
fuel cards for their fleet and 38% have already implemented
international fuel cards.
Moreover, we find fleet managers allocate their gas-station
coverage in relation to their fleet scope. Those managers
operating local fleets are more likely to use one network only,
whereas those managing global fleets typically have a fuel card
covering multiple networks.
National
International
Does the fuel card have national
or international coverage?
62%
38%
National
International
Can the fuel card handle only one gas station
network or multiple networks?
56%
39%
6%
Global scope
All networks
24%
39%
43%
41%
34%
1 network
Limited number
of gas stations
17%
European scope
Local scope
THE
FLEET
DEBATE
2014
Andy Leeden, Global Fleet Category Manager at
AstraZeneca: “Having a single fuel card with a global
or even regional coverage would be an ideal solution.
When fuel typically represents 30% of TCO; it is a
considerable cost. A unique fuel card could reduce
fuel pricing, management time and improve reporting
and compliance. However, to my knowledge there is
currently no solution on the market, offering one fuel
card with global or multi region coverage.”
13

16. Managing fuel
Tracking fuel consumption is a significant cost challenge
Do you provide fuel for private use of the vehicle?
Managing fuel is always considered as a
challenging topic.
85%
38%
of the fleet managers are looking
to improve fuel management for their fleet.
15%
Based on the results, 72% of fleet managers monitor the actual
fuel consumption of their car fleet drivers in order to optimise
fuel management. This process is largely used for local and
small fleets.
Yes
Case Study
No
Fully outsourced fleet, 200 cars, 18 countries
Do you monitor the actual fuel consumption
of your car fleet drivers?
No
Yes
39%
Global fleet
61%
Local fleet
79%
Large fleet
69%
Small fleet
82%
Personnel cars only
71%
29%
Personnel commercial cars
72%
28%
21%
Challenge: A GE Capital customer had been concerned
about the impact on fuel costs while their cars were used for
personal use.
Solutions:
• ntroduced a whole life cost policy for improving the
I
average miles per gallon by 20% as well as reducing
fuel costs
• stablished a cost and tax efficient method of providing
E
the private fuel benefits.
31%
18%
THE
FLEET
• nalysed each individual driver’s levels of private mileage
A
and determined individual free private fuel levels.
Results: GE Capital consultants delivered annual cost savings
of € 281,000 savings and a reduction of 81% of private
fuel costs.
MSD
DEBATE
2014
According to Robert Patrick from MSD, it is very
challenging to setup International Fuel programmes.
There are limited options available in the global
markets for consolidating actual fuel data. Spend on
a global level and differing taxation treatments for
fuel across markets, further complicates the analysis.
In some instances it can take a lot of manpower to
track real fuel consumption, therefore in a number
of markets MSD focuses on theoretical consumption,
whilst in others real data can be tracked. The primary
focus in managing fuel costs remains ensuring that
fuel consumption is a key variable in analysing Total
Cost of Ownership of fleets, and that in making vehicle
selections fleet managers fully understand expected
fuel costs for differing vehicle options.
According to Luc Dendievel from Johnson Johnson,
the potential solution for tracking fuel consumption
would be to implement a telematics solution in every
car. The provided data would track the actual fuel
consumption for each driver and therefore some
tailored solutions can be implemented in order to
reduce fuel costs.
14

17. Looking to the future
80
%
Of the fleet managers expect
their fleet to remain stable or
increase over the next 24 months
Share of companies expecting their fleet to remain
stable or increase, by type of fleet
Increase
41%
Large fleet
38%
Small fleet
Remain stable
34%
50%
Local fleet
46%
Global fleet
59%
Personnel cars only
41%
Personnel commercial cars
55%
39%
Remain stable
Increase
20%
39%
38%
38%
Decrease
35%
The majority of fleet managers expect their fleet size to remain
stable over the next 24 months.
Global fleet and personnel commercial cars are expected to
see the highest growth over the next 24 months. Moreover, 94%
of small fleet managers expect their fleet to remain stable or
increase.
Additionally, global fleet managers expect their responsibilities to
expand to new geographies.
THE
FLEET
DEBATE
2014
Andy Leeden, Global Fleet Category Manager,
AstraZeneca, said, “Globally the fleet size will remain
stable, but the trend is that the fleet is moving.
It’s moving eastwards. There will be a decline in
Western Europe and North America, but growth in
the emerging markets. Our fleet follows the demand
for our medicines.”
26%
81
%
Of the fleet managers plan to expand their
fleet business towards new countries.
The top priorities are:
50%
Russia
48%
Turkey
36%
Brazil
15

18. We hope you found the State of Car Policy Report informative useful for your
involvement with Fleet management.
This report forms part of a wider range of activity from ‘The Fleet Debate’ –
a community of industry discussion, peer debates best practice sharing centred
around Fleet Management.
Throughout the year, GE Capital will be arranging a series of webinars, roundtables
workshops with business leaders peers to discuss current challenges, the evolving
market, and to debate the future of Fleet Management; in addition to supporting an
online hub for accessing useful Fleet insights best practices.
THE
FLEET
DEBATE
2014
Join the
Fleet
Debate
If you would like to know more about The Fleet Debate please email
fleet.debate@ge.com
or keep your eyes on the Fleet press for upcoming debates insights.
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