The director of Ford of Europe's telematics division claims the in-car systems can offer fleets cost-savings of up to one fifth.

Kathryn Lees said 'smart fleet operators' can expect to achieve savings of between 10% and 20% with financial rewards generated directly from vehicle tracking systems and potentially indirectly by cheaper insurance premiums.

Lees, speaking at the Fleet News Europe Congress 2002 held in Barcelona, Spain, said the manufacturer had spent time talking to fleet customers in order to ascertain the type of services they required.

And she said potential savings available to fleets easily outweigh the cost of buying and running the systems.

'These savings of between 10% and 20% are net of the running cost,' Lees said, 'so the rewards of telematics do outweigh the initial costs.'

'Telematics enable businesses to run efficiently, easily and professionally,' she added.

Lees said that one customer told Ford it had achieved savings of £6,500 in overtime costs for just two months simply by knowing the exact whereabouts of their drivers.

On the potential for cheaper insurance charges, she said: 'It helps you and the insurance company know exactly how your vehicles are used. It could help if you can prove that the vehicle is never used abroad, for example.'