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Grey fleet managers urged to improve cost reduction

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Grey fleet managers urged to improve cost reduction

Tuesday, 01/12/2009 12:03
Transport planning bosses have been urged to improve risk management and cost reduction strategies when it comes to letting employees use their own cars for work.

John Lewis, chief executive of the British Vehicle Rental and Leasing Association, said managers must issue clearer guidelines to staff using their own vehicles on business.

He claimed all employees should have to give proof that their car is roadworthy and insured, advising companies to get tough with those who cannot.

Mr Lewis also argued that overgenerous mileage payment rates are giving staff an extra incentive to do more miles for business, costing firms thousands of pounds each year.

He said case studies from the Office of Government Commerce show that such costs could be eradicated if employees were to seek alternatives to grey fleet operation.

"Public sector organisations have been able to save hundreds of thousands of pounds, reduce emissions and improve road safety by replacing much of their grey fleet with leased or rental vehicles," he commented.

Last month, the Institute of Advanced Motorists warned that business drivers were also incurring extra fuel costs by "blindly" following their sat navs' instructions with no idea of where they are heading.

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