Leasing and operating cost developments will be the
driving factors for 2012, says Jens-Uwe Berg of JATO
Dynamics.
Go deeper with GlobalData
In Europe, the stagnation or decline in leasing volumes was
less severe than the overall decline in new car sales, as
B2B-clients, though looking at ownership costs, still renewed their
leasing contracts.
But what will be the developments
and challenges for the lessor and the lessees if their focus is on
ownership cost in 2012?
The uncertainty of financial
markets will persist throughout 2012. There’s also the possible
effect on non-euro states, important for a leasing industry
dependent on available capital and the ability to fund
contracts.
If financial markets, and trust in
them, are diminishing, there will be less capital to fund new
vehicles at a time of tightening lending rules and the returning
issue of residual values.
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By GlobalDataWe will continue to see market
concentration as companies diversify both risk and strategies. A
larger fleet in more markets means lower operating cost and risk
mitigation at the same time.
What would this mean for fleet
operating cost development? The challenge of rising cost will not
diminish and, depending on where the fleet is operated, different
cost containment strategies should be applied.
In the more stable economies ‘green
fleet’ initiatives will increase, particularly in the UK, France,
Germany, Scandinavia and Benelux, where market growth, geographical
advantages or fiscal incentives boost the introduction of electric
vehicles and hybrids.
This will prompt the more holistic
approach of ‘total cost of mobility’, whereby all means of
transport and technology utilised by the company’s core business
will be evaluated to minimise cost and non-necessary emissions.
On a larger European scale
(especially in the stagnant and declining markets), fleet managers
must have initiatives in place to reduce the carbon footprint of
their vehicles, containing cost increases where possible, but
meaning a reduced total number of vehicles to reflect these
external market pressures.
As monthly rates for vehicles are
unlikely to be optimised through tendering or multi-bidding, a lot
of leasing companies, fleet managers and consultants are now
proposing accident reduction initiatives and coaching sessions to
reduce the cost and downtime caused by misfortune.
This usually leads to more
eco-friendly driving behaviour that is not only safer but more
fuel-efficient. Some estimates of the savings are double-digit
percentages, unachievable by regulatory measures and cost control
alone.
Jens-Uwe Berg is market
development manager of global leasing at JATO Dynamics
