Fleet News

Perkins poised to scrap 500 vehicle company car fleet

ENGINE manufacturer Perkins is set to scrap virtually all of its 500-vehicle company car fleet by offering a cash alternative.

Between 400 and 450 drivers from middle management have been told that as their cars come up for renewal they will only be offered a cash option.

So far 100 drivers have voluntarily opted for the scheme, which offers a cash alternative of between 10.5% and 14% of a driver's salary. Perkins has a 500-vehicle perk fleet run on a three-year/ 45,000-mile agreement with LeasePlan. Key suppliers include Vauxhall, Ford, Volkswagen and Audi.

A spokeswoman said: 'The trend in the UK is has been to steadily reduce the tax effectiveness of the company provided car. Perkins recognises this and looked at alternative options to offer employees.'

Cash options are available to those wishing to move away from a company provided car. Those who still want a lease car have that option through LeasePlan, which can arrange a personal plan where no deposit is required and regular maintenance and road fund licence are included. It is unclear whether the company will still retain the role of the fleet manager.

Under the new 2002 carbon dioxide-based company car tax regime , drivers will be taxed on a combination of a car's list price and its CO2-emissions.

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