It’s a difficult time for the automotive industry and, by extension, fleets. These are the top five challenges they’re facing…
Vehicle Procurement
Securing vehicles, let alone the right ones, has become a major challenge for fleets of all sizes. This is because of major supply-chain issues, which have forced car manufacturers to rollback production. More alarmingly, it’s also caused some to prioritise low-volume, high profit models; which could prove to be a lasting trend in some instances.
The consequences of this mean that fleets may find themselves forced to settle for less than ideal models, and to maintain older vehicles for longer periods of time.
Servicing and Maintenance
Another challenge for fleets is a by-product of broader supply-chain issues. Unable to procure new vehicles, and in a timely fashion, businesses are being forced to hold on to their vehicles for longer cycles. This naturally exposes them to greater amounts of wear and tear.
This poses two key problems. First of all, it increases a company’s expenses in terms of servicing and maintenance. Secondly, it poses greater duty of care considerations as vehicles may become increasingly unreliable or unsafe.
Sourcing Drivers
With unemployment being, generally, quite low in the UK the balance of power definitely lies with prospective employees. Combined with an ongoing shortage of drivers, this issue is bound to prove challenging for some fleets; especially those operating commercial vehicles that require specific training.
Businesses will have to be more competitive, and creative, in order to attract and retain capable drivers and other employees. It may be a question of offering better pay, or other benefits such as company cars or ample annual leave entitlements.
Grey Fleet
Many fleets possess a grey fleet. This consists of vehicles that, whilst not being owned by the business, are used by employees for work-related purposes. Because of the current cost-of-living crisis, many drivers are keeping their cars for longer or are avoiding servicing and maintenance; in an attempt to save money, or simply because they can’t afford the associated costs.
For businesses, this poses duty of care risks and considerations; as grey fleet vehicles are classed as being a formal part of a fleet.
Duty of Care
Meeting fleet duty of care obligations can be a challenge at the best of times. But with aging vehicles remaining in use, including grey fleet vehicles, the risks have never been so severe. It’s imperative that fleets ensure that all vehicles used for business-related purposes are well-maintained and are regularly inspected. Drivers also need to be checked for valid driving licences and appropriate insurance.
Large Vehicle Roads Deaths Are On The Rise – https://autoservefleet.co.uk/latest-news/large-vehicle-roads-deaths-are-on-the-rise/
EV Drivers May Face A £227 ‘Pavement Tax’ – https://autoserve.co.uk/motoring-news/ev-drivers-may-face-a-227-pavement-tax/