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Performance Economy and Technology

Extra-efficient TDI engines

All Audi A1 models, A3 and A3 Sportback 1.6 and 2.0 TDI models and A4 and A4 Avant 2.0 TDI 136PS models fall into the lowest tax band for diesel BIK tax in 2010/11 – 13%.

Audi start-stop

Many models benefit from automatic start-stop for greater fuel and CO2 efficiency, while brake recuperation adds to optimal energy utilisation resulting in reduced emissions of CO2. Promoting lower BIK tax for drivers than previously as start-stop-equipped models fall into lower tax bands than non-start-stopequipped cars. Employers’ Class 1A National Insurance Contributions are reduced as these are also based on CO2 emissions.

Environmental Impact

Efficient management of a company car fleet’s environmental impact has become the number one priority in today’s industry.

Running a greener fleet should mean running a more efficient fleet, which by extension means running a less expensive fleet. But that has not always been the case as 'going green' historically has had a cost attached.

Then there is corporate social responsibility. Companies and organisations have the ability to lead from the front in helping society become more environmentally aware as, generally, they possess the money and organisational skills required. And when industry becomes an early adopter and displays best practice in the way things are done, others follow.

Then there are the drivers themselves. By initiating emissions-based incentives, a wellrun fleet whose fleet manager is on top of the latest issues will help company drivers to be better off. Everybody wins.

Controlling Costs

Making the most of every penny has seldom been more relevant to fleet operators, as recession follows credit crunch and trade becomes tougher.

For many fleets the need to reduce costs is paramount, and the tough economic climate offers an ideal opportunity for change. New ideas, the latest fleet management thinking, changes in legislation and rapidly advancing technology from manufacturers opens up new possibilities for fleets, while downsizing, alternative fuels and smart management practices are making their way to the top of everyone's agenda.

Our local business Audi Guide to controlling costs offers advice, insight and help to fleet operators looking to streamline their operation, and offers a top ten check list for best practice.

1. Understand your choice list: introduce an informed selection process for your fleet vehicles and base your choices on wholelife costs. Desirability in the used market is a key influencer to residual values, and will in turn reduce your whole-life cost profile. Desirable cars on the choice list will act as a major staff incentive and keep your drivers happy.

2. Consider switching to diesel: despite the virtual elimination of the price disparity between unleaded petrol and diesel fuel, fleets will benefit from diesel’s greater economy and lower emissions, especially when higher mileages are involved. The latest common-rail technology and the introduction of technology such as automatic engine start-stop make for an even more compelling case.

3. Choose cars with CO2 emissions of 160g/km or less: significant manufacturing advances mean that many popular models can be chosen with CO2 emissions of 160g/km or less, so complying with the latest capital allowance legislation. By ensuring your main fleet complies with the legislation, you will cut acquisition costs and ensure optimal tax-efficiency. Drivers will also benefit from lower BIK tax liabilities.

4. Investigate the advantages of contract hire: new emissionsbased rules affecting leased cars mean that 100% of lease costs can be offset against tax for cars with emissions of 160g/km or less. For vehicles above this threshold, only 85% can be offset. There are significant VAT advantages, too, for contract hired cars with emissions below 160g/km.

5. Introduce a driver training programme: research has shown time and again that well-run fleets that employ an element of third-party driver training enjoy lower accident rates and greater efficiency. Demonstrating best-practice techniques will reap benefits in lower costs and greater fuel-efficiency, while implementing tyre pressure/condition checks will also help minimise the need and cost of replacement.

6. Instil a 'green' culture among drivers: educating drivers to be more environmentally aware by choosing lower-emitting cars will improve your fuel efficiency and reduce your company's carbon footprint. Introduce an incentive into the choice list that offers a higher trim level if a cleaner, greener model is chosen. Downsizing could also be actively encouraged – many modern 'superminis' are actually as big, or even bigger, than older 'lower medium' models but are less expensive to run.

7. Consider your mileage patterns: question the validity of journeys made by company car drivers and ask if the mileage really is necessary. Cutting mileage is a sure-fire way of reducing costs, not simply on fuel but also on wear and tear, servicing and tyre replacement.

8. Review fleet insurance options: evaluate your insurance arrangements and consider alternatives, including selfinsurance. If your accident rate is low this can present costsavings, particularly for larger fleets. Positive actions such as introducing regular driver licence checks and driver training can also lower premiums.

9. Phase out 'grey fleet' cars: as fleet manager, you will be responsible for drivers making business journeys in their own cars, or cars chosen by drivers who have opted out of your company car scheme. As you have no direct control over insurance, maintenance and suitability for purpose, the hidden costs these vehicles may present represent a risk that can be eliminated.

10. Be aware of disposal procedures: if you purchase cars, choosing vehicles with a strong residual value prediction will mean you will retain more of your acquisition cost at disposal time. Educating drivers to look after their cars will help disposal: an incentive scheme could well be the way forward.

The Audi Business Library

The internet has become integral to all our working lives and it provides a wealth of information for the fleet manager. But its scope can also be a hindrance; just where exactly is all the information you need? We've together a series of useful documents to provide you with access to important information, advice, service and news.