FSG’S safety-first approach makes it a hat-trick of fleet industry awards

It’s official! Fleet Support Group provides car and light commercial fleets with the most comprehensive solution to enable them to manage their at-work driving duty of care responsibilities.FSG drove off with the Best Safety Initiative Award at the 2009 Fleet News Awards - the industry’s annual ‘Oscars’ organised by the UK’s leading fleet industry weekly newspaper. That success makes it a hat-trick of fleet awards for FSG, which in the last 10 months has:

• Won the Van Fleet Safety Award for RiskMaster in the inaugural awards from Fleet Van, a sister title to Fleet News

• Clinched the Fleet Service Provider of the Year title presented by the Fleet Safety Forum, which is organised by road safety charity Brake, for iRIS (Integrated Risk Information System), the company’s sophisticated software system combining its long-established RiskMaster programme with in-car telematics.

In addition, last year an independent survey of companies offering occupational road risk management services revealed that no company marketed a product that provided a linked audit trail of drivers, vehicles and journeys - including ‘grey’ fleet drivers - to the level of RiskMaster.

The study was compiled by Gary Kent, who runs Toot Rock Consulting and has around 30 years' fleet experience. He said: “To totally manage occupational road risk, companies must have in place controls that cover the driver, vehicle and journey whether staff drive a company-provided vehicle or their own. My analysis highlighted no product that covered the three elements in totality in the way RiskMaster does.”

In announcing FSG and RiskMaster as the winner of the 2009 Best Safety Initiative Award, the independent panel of judges assembled from across the fleet industry by Fleet News commented: “RiskMaster was the clear winner of the Best Safety Initiative category because of the comprehensive way it covers the entire spectrum of occupational road risk.”

The focal point of RiskMaster is a ‘Permit to Drive’, which means each driver and vehicle annually passing a rigid ‘fit for the road’ examination with regular online driver declarations about licences and health status - to ensure employers are completely aware of all issues affecting their drivers. Failure to reply can mean withdrawal of a driver’s permit.

Employees are granted a Permit to Drive following a DVLA licence check, and an online driving assessment that is then used as the basis for any training as highlighted following analysis, profiling drivers as ‘low’, ‘medium’ or ‘high’ risk. Vehicle maintenance records, insurance details and any data on crashes and motoring offences are also fed into the system.

As information is supplied, it is analysed by the RiskMaster software system, which then point-scores a driver’s data. If points rise above a preset level, management is alerted. A driver can qualify for a permit, or a temporary permit, or be denied.

The analysis is a continual process so every driver has a ‘Driver Operating Life Report’ and they are simultaneously measured against their employer’s own specific parameters. A telematics option can also be added to RiskMaster.

The Fleet News Awards judges were particularly enthusiastic about RiskMaster’s Permit to Drive feature that is applicable whether employees drive a company vehicle or their own car on business trips.

FSG Chairman Geoffrey Bray, who was presented with the Award, said: “Occupational road risk management is not only crucial in terms of compliance with the law, but it is a proven mechanism for reducing fleet operating costs. The judges were all fleet experts who see and use many fleet safety solutions. We are delighted that they view RiskMaster as the indisputable market leader.”

Fleets using RiskMaster include: WHSmith, Dun & Bradstreet, Balfour Beatty Utility Services, Unison and the Labour Party

Photo: FSG Chairman Geoffrey Bray (centre) receives the Best Safety Initiative trophy from Mark Jones (right), Head of Fleet Solutions at award sponsor Total Systems, flanked by compere Jon Culshaw

Are diesel models a waste of cash?

Diesel power has been the dominant choice for cost-conscious fleet decision-makers in recent years, but some companies could be wasting their cash instead of saving it, according to vehicle information provider Parker’s.

The typically higher list price of diesel cars coupled with the widening price differential of petrol and diesel at the pumps - currently around 9p a litre - means that the break-even point for some diesel models could be above 100,000 miles.

In addition, a wide range of vehicle manufacturers continue to introduce low emission technological advances on petrol-engined cars that have also improved their fuel consumption thus closing the gap on the MPG advantages of diesel.

Engineers at all vehicle manufacturers are busy downsizing petrol and diesel engines - smaller turbocharged engines are more efficient - but the greatest potential for reducing CO2 emissions, and thus improving MPG, concerns petrol engines.

As a result, with the imminent switch to Euro 5 (January 1, 2011 for the registration and sale of new cars) and Euro 6 (January 1, 2015 for the registration and sale of new cars) emissions legislation, petrol engines are expected to become an increasingly attractive proposition.

In addition, the cost to vehicle manufacturers of meeting the new emissions legislation is expected to be greater in respect of diesel engines than petrol powerplants. As a result, the price differential between diesel models and their petrol equivalents could escalate further.

Of course, company car choice lists should be based on total cost of ownership data and take into account the impact of tax - drivers’ benefit-in-kind as well as all corporate taxes including National Insurance contributions and the new capital allowance rules that favour cars with emission levels of 160 g/km and below - but the list price/MPG data is useful in helping to review the most cost-effective vehicles to drive.

For example, six of the most popular diesel models currently bought by Fleet Support Group on behalf of customers are:

• BMW  318d SE 4dr
• Audi A4 2.0TDi 143 PS Executive S Line
• Volkswagen Golf 2.0TDi 140 bhp SE 5 dr
• Ford Mondeo 1.8TDCi Zetec 5dr
• Citroen C5 1.6HDi VTR+ Estate
• Vauxhall Insignia 2.0 CDTi S.

Using Parker’s new diesel v petrol cost calculator - www.parkers.co.uk/cars/petrol-vs-diesel - reveals the following versus petrol-engined alternatives:

• Fuel prices used: Diesel 99.7p a litre/petrol 90.7p a litre

Cliff Ainger, FSG’s FleetMaster Manager, said: “Many of today’s company car policies bear absolutely no resemblance to the current economic situation.

“Best practice suggests that fleet operating policies should be reviewed once a year, but in the current economic climate a more frequent examination might be required. Not only from a financial viewpoint, but also to ensure that businesses take advantage of the latest technological breakthroughs from vehicle manufacturers.”

As can be seen from the figures it would take more than 175,000 miles to break even on the cost of the Volkswagen Golf, according to Parker’s. Yet it would take only 56,000 miles to do so in a Citroen C5 despite the price differential between the rival petrol and diesel models being similar at around £2,000.

This is due to the efficiency of Volkswagen’s petrol engine technology with fuel economy only 12 mpg worse than the diesel variant. That contrast with the Citroen C5 where the difference in fuel economy is 19 mpg and therefore the diesel model is strongly favoured.

Mr Ainger said: “There is no single solution to the petrol or diesel debate. A car-by-car analysis is required and, depending on model choice and annual mileage, petrol may be a more financially astute solution. However, Parker’s data does not take into account total cost of ownership figures or tax issues and these are clearly relevant in determining the optimum fuel choice.”

• To further add to the diesel v petrol debate new data from auction giant BCA reveals that the used vehicle price premium historically enjoyed by ex-diesel powered company cars over their petrol-engined equivalents is narrowing. Diesel enjoyed a substantial price premium over petrol throughout 2008 and over the first quarter last year, a diesel fleet car averaged nearly £1,000 or 18% more than a petrol car. However, that premium has narrowed to around £500 early in 2009, equivalent to 11%, as more oil burners hit the used car market.

Performance management is key to cutting fleet costs

Effective performance management is an integral part of a manager’s role, but many bosses find performance management difficult, and many organisations do not do enough to get the absolute best from their people.

Yet, says Fleet Support Group Chairman Geoffrey Bray, effective and efficient performance management can deliver real cost savings to companies, which are crucial in today’s recession-hit corporate environment.

It is against that background that FSG is holding its annual workshop where guest speakers will be highlighting a range of cost-reduction fleet management techniques with the chief focus on performance management.

To be held on Wednesday, June 17 at Castle Combe, one of the speakers will be Dave Washbourne, Driver Risk Project Manager of Balfour Beatty Utility Solutions (BBUS), one of the UK’s leading utility solution providers, with a strong position in international markets. The company works across the water, wastewater, gas and power industries, and blue chip clients include United Utilities, National Grid, E.ON and Yorkshire Water.

He has launched a major occupational road risk management trial involving company cars and commercial vehicles and their drivers and the introduction of FSG’s RiskMaster safety programme as well as GreenRoad Technologies’ Safety Centre.

Mr Bray said: “Very few companies have an appetite to manage misbehaving drivers. There is a psychology of fear among many bosses to manage employees who are costing their businesses money. Yet, in today’s business environment cost management is essential.”

More importantly, argues Mr Bray: “Staff disciplinary processes are not linked to occupational road risk management in many cases. Technology such as RiskMaster and Safety Centre provides organisations with a wide range of information that enables them to performance manage their drivers.

“But, the appetite to use that information is frequently not apparent within companies despite there being clear evidence that not only are available solutions delivering legal compliance but also real cost savings.”

BBUS ‘discovered’ RiskMaster when FSG was exhibiting at last year’s Royal Society for the Prevention of Accidents Safety & Health Expo.

Now the company is using RiskMaster to help manage around 300 drivers working on a contract in the North West and will shortly be deploying the technology on vehicles involved in delivering a key contract in the Midlands. Additionally, Safety Centre has been fitted to around 350 vehicles in the North West. GreenRoad Technologies is an FSG business partner.

Safety Centre provides real-time feedback to employees on their driving skills via an in-car device that measures up to 120 different driving manoeuvres. Each manoeuvre is evaluated in five categories: acceleration; braking, lane changing, cornering and speed handling. Driver safety and economy levels are displayed using a colour classification system: green light indicates safe driving, yellow needs attention and red is high risk.

Coupled with the online RiskMaster ‘Permit to Drive’ and ‘Driver Operating Life Report’, the safety solutions have already delivered massive vehicle operating cost savings to BBUS as well as maximum safety compliance.

BBUS is working towards a zero accident culture and FSG Sales Director Marcus Bray said: “The early signs are very positive. BBUS is a company that has embraced safety solutions to deliver performance management with significant benefits already. In the near future I believe the information delivered by both systems will be joined together to ensure maximum safety enforcement and business efficiencies.”

GreenRoad says clients have typically reduced accidents by 54%, lowered accident costs by 65%, and cut fuel consumption by up to 10% or more. That ‘live’ data can then be fed into RiskMaster to provide a comprehensive safety audit of all vehicles and drivers.

BBUS has a sophisticated balanced scorecard system to measure many attributes of its vehicles and drivers including location, speed and fuel consumption.

Mr Washbourne said: “We hope this trial will assist us in achieving all of our objectives - safety, risk and environmental. We look forward to analysing the results over the coming months.” 

To book your place at the FSG workshop please email debi.reeves@fsguk.com

Employees’ failure to declare penalty points could invalidate company insurance

A company’s insurance policy could be invalidated if an employer makes a claim following a crash involving a member of staff who has failed to declare that they have points on their driving licence.

According to a survey of almost 2,000 adults by insurance firm Swinton, one in ten drivers would avoid declaring their points to a potential employer.

The potential scale of such deception is huge, says the insurer, which estimates that over six million drivers in the UK now have points on their licence, and that the UK’s 6,000 speed cameras record over two million drivers speeding each year. Subsequently an unblemished driving licence is becoming increasingly rare.

Employees not declaring driving offences could prove very costly to businesses, which is why the first stage of Fleet Support Group’s multi-award winning RiskMaster safe driving programme includes a Driver and Vehicle Licensing Agency (DVLA) licence check.

Steve Chelton, Swinton InsurerDdevelopment Manager, said: “If a member of staff enrolled on a company car scheme fails to notify their employer of penalty points on their licence, they are putting the company’s insurance policy in jeopardy should they have to make a claim.”

FSG Chairman Geoffrey Bray believes that it is essential that employers have a current record of all employees’ driving licences whether they drive a company or private vehicle on business.

“It is not about penalising any employees. All organisations have a legal duty to comply with health and safety law and that means conducting an audit of drivers and then acting upon the results. This may include implementing risk management solutions that are targeted at ‘high risk’ individuals to help them improve their safety record.

“Companies that don’t conduct an audit or undertake an audit and then refuse to act on the findings are failing in their duty of care.

“Good employers will have systems in place that encourage staff to disclose their driving record so that, if necessary, measures such as driver training can be introduced to improve their behind-the-wheel skills.”

Budget 2009: Fleets await Chancellor’s decisions

Chancellor of the Exchequer Alistair Darling will make his second Budget speech on Wednesday, April 22 at 12.30pm with company car and fleet issues expected to be among the announcements.

Since the switch to an emission-based company car benefit-in-kind tax system, the Chancellor has always given a three-year warning of rate changes so fleet operators should look out for 2011/12 rates in the Budget.

Benefit-in-kind tax rates in 2009/10 will be unchanged from 2008/9 levels, but there will be a 5 g/km tightening with effect from April 6, 2010. That will see the 15% company car tax band lowered from 135 g/km to 130 g/km. The special 10% tax rate that applies to low-emission cars will remain unchanged for the next two years and applies to models with CO2 emissions of 120 g/km and below.

Fleet decision-makers should also look out for possible changes to tax-free Approved Mileage Allowance Payments (AMAPs) paid to staff who drive their own cars on business as well as Advisory Fuel Rates, which are used by employers to reimburse employees for business travel in their company cars, or where employees are required to repay the cost of fuel used for private travel.

Meanwhile, April 1 saw the much-publicised introduction of new corporation tax rules in relation to business car capital allowances. Essentially, it means that company cars above 160 g/km will be more expensive to run.

But, ACFO (Association of Car Fleet Operators) is expecting a number of issues in connection with the fine detail of how the changes impact on company cars to be cleared up in the Budget. They include clarification on where capital allowances apply where rental cars are used by business - with the rental company or with the final business user.

However, one issue that has been cleared up in an HM Treasury note seen by the British Vehicle Rental and Leasing Association is in relation to fleet use of second-hand cars.

It reveals that second-hand cars purchased or leased by businesses will be treated as new expenditure for the purposes of capital allowances.

Finally, there is widespread speculation that the establishment of a ‘scrappage’ scheme, which has been called for by the motor industry, could be announced in the Budget with an implementation date of June.

The Society of Motor Manufacturers and Traders wants the Government to fund a £2,000 discount on the purchase of new and nearly-new vehicles where motorists trade in a car or van more than eight years old. The industry hopes that such a scheme will drive up sales of vehicles, which have been hit by the recession.

HM Treasury has announced that Vehicle Excise Duty changes that were scheduled for April 1 will be delayed for a month. From May 1 out will go the current seven-band CO2-based VED structure and in will come a 13-band structure. VED rate increases have been capped at £5 with ‘standard’ rate VED increases due on April 1, 2010 capped at £30 with some rates on lower emissions cars cut by £30. Duty rates for 2010/11 and rates for the new ‘first year VED’ due to be introduced on April 1, 2010 are also contained in the new document, but remain unchanged from the levels announced in November’s Pre Budget Report. Currently the rate has been set at £0 on cars emitting 130 g/km and below. On more polluting new models the ‘first year’ VED rate has been set as high as £950 (above 255 g/km of CO2). Full details can be accessed at: http://www.hm-treasury.gov.uk/tax_vehicle_excise_duty.htm