Case Study: AbbVie and TraXall employ TCO approach to EV transition

AbbVie Benelux is a biopharmaceutical company whose mission was to move to a zero-emission fleet quickly, simply, and cost-effectively. The company is working with TraXall Belgium, whose specialism is international mobility and fleet management, as its EV transition partner. 

AbbVie is committed to an ambitious CO2 emission reduction goal. So firstly, in managing this complex process, TraXall guided AbbVie to move from a fixed car list to a new car policy based on a full TCO (Total Cost of Ownership) budget approach and including only 100% electric vehicles in every category. This was made possible by TraXall’s car configurator tool, which enables employees to build their new company car in accordance with the company car policy. It’s based on a fixed car list and/or a free choice on the basis of TCO (Total Cost of Ownership). In addition, TraXall took full control of fleet management so AbbVie could focus all its efforts on its core business - getting much-needed drugs and therapies to patients.

Cost saving through a multi-bid approach

Employees of AbbVie (whose vehicles come up for renewal) now use TraXall’s car configurator to select vehicles from the company’s pre-approved leasing providers and this process is managed through TraXall. The fleet management company does this using a multi-bid approach to get the most competitive rates for the client and manages the whole transition towards an electric fleet, with all parties, on AbbVie’s behalf. 

Says Wojciech Regucki, EMEA Fleet Manager, AbbVie: “TraXall supported us in a neutral way in choosing our partners. Just think of the electric charging company and the fuel card supplier for the drivers who still have a combustion vehicle. Moreover, we are also very satisfied with TraXall Belgium's quick and successful implementation of our two international leasing suppliers." 

As to the benefits of collaborating internationally with TraXall, Regucki states: “The benefits are numerous. The multi-bidding approach has generated substantial savings. Then there’s the support at the local level to manage our fleet according to local needs, the preparation of our fleet for the upcoming tax changes, and the phasing out of fossil fuel vehicles in cities and wherever appropriate.”

“We are eager and proud to help AbbVie in their ambitions and contribute to their transition to an electric fleet,” says Leomont Wouda, Managing Director of TraXall Belgium.

The new car policy means the pharmaceutical provider saves time and can include new models and powertrains as they become available. Employees don’t have to go hunting to check whether the car they want can be added to the car list or not. They can use TraXall’s car configurator to select a vehicle and ancillary equipment with a direct view of their own potential contribution and benefit in kind. TCO is already known and everything is planned around it. Employees are also clear on the car policy rules. 

The benefits of the TCO approach

Through partnering with TraXall, AbbVie is able to keep costs under control because, for every company car with emissions, the tax deductibility gradually reduces to zero. For employees, the benefit in kind does not increase any further by selecting the right powertrain in line with legislation changes. By responding in this way, they avoid skyrocketing costs. And of course, AbbVie also puts itself in the spotlight as an attractive employer to attract talent.

Not only Belgium, but TraXall International manages AbbVie's fleet in Switzerland, the UK, Austria, Germany, Portugal, and Spain. 

AbbVie at a glance: 

Image: Wojciech Regucki, EMEA Fleet Manager, AbbVie