FN: How important are wholelife costings when setting your fleet choice lists?
MG: Most fleets use wholelife costs but they don’t manage the fleet by wholelife costs.
We are looking at how we do that, for example, how we incentivise drivers to save us money.
It’s about looking at the wholelife cost during the life of the vehicle and asking ‘is it costing us what we think it will on maintenance, accidents, fuel economy, etc’.
Here the lease cost ends up being only half of the wholelife cost.
We have made changes as a result of using wholelife costs.
We used AFRs for the choice list but changed it to 80% of combined mpg as a real-world figure with the fuel price based on the pump price .
That allows us to reduce thresholds and improve our wholelife costs.
FN: You have a low average CO2 of around 132g/km. How has this been achieved?
MG: We focus on the tax bill but also the correlation with low CO2 and high mpg keeps it in check. We ask our drivers whether BIK and mpg is important and from that we cap the list.
Our cap varies from 130g/km to 180g/km depending on the category . We’ve been reducing the caps every year.
It’s the BIK and mpg that is driving us down this route more than the legislation changes.
RC: In each individual category we have a ‘green list’ where we highlight the lower CO2 models to make it more obvious for drivers.
The bulk of our drivers are capped at 140g/km and we will drop this further, probably to 130g/km next.
FN: As a manufacturer of building materials, Lafarge is focused on safety and duty of care. How does this cascade down to the fleet?
RC: Our biggest thing is safety. We put risk assessments in place two years ago using 2009 as the data point for accident management benchmarking.
MG: We were in the middle of a downturn and we wanted a large amount of cash to fund the programme. We took the approach that our spend on training would reduce accident costs.
We spread the cost into the lease rate with GE so it became a couple of extra pounds per month on each car rather than a big upfront cost.
This removed the cost barrier so we could focus on the duty-of-care plan.
The programme has resulted in a fall in the number of accidents by more than a third and also a reduction in the cost of accidents by almost 50%, which is due to reduced severity.
We took the 80/20 rule: the riskiest 20% have one-to-one training; the other 80% undertake an e-learning course.