Italy: From Green to Safety

The new corporate car policies match the targets of reducing emissions and overall costs and of increasing security.

Companies have now set off on a new path, embracing the typical philosophy of green fleet management. This has the aim of improving productivity and the level of safety, of systematizing cost control and of adopting ICT systems in the management of vehicles, placing great emphasis on the issue of reducing pollution. Based on an analysis of the needs and the size of the vehicle fleet, favouring lower emissions for the same engine, introducing hybrid and natural gas vehicles as pool cars, companies have achieved significant results in terms of savings and lower emissions.

Within a framework of total safety, Italian companies, are also beginning to install various devices designed to protect employees and drivers: broadband alarms, voice alerts, presence sensors and so on.

For nearly three years, Italian fleet management, companies have embarked on the ‘green’ path including downsizing, lowering the displacements for each level of users and thus achieving a significant reduction in CO₂ emissions, a theme particularly dear to many companies. Reducing the environmental impact of companies’ activities is a continuing goal in the life of good Italian companies. Each good Italian company is committed to continuously improving and rendering more effective its environmental management system, in order to minimize and prevent the impact of its activities, its products and its services: the duty of all.

Zero emissions are a goal, but the time is not yet ripe for this in Italy. There is a move towards developing small e-fleets with zero emissions, to be added to a company’s existing fleet. Companies active in doing this wish to be among the protagonists in Europe for a shift towards e-power, in terms of innovation, impact and size.

The Total Cost of Ownership of a fleet acquired using the Long-Term Rental formula generally refers to the initial fee, costs of fuel and the tax impact. This is correct because the fee covers only the cost of the vehicle, the cost of money, management and maintenance services, tax and insurance, replacement vehicle and tires, roadside assistance and the cost of remarketing (residual value). Among all of these the only significantly manageable item is that of fuel, not because we are able to influence the price per liter, but rather because we can impact on total cost.

The composition of the fee and the cost of each service is a matter for the renter. It is his job to seek the best overall price and work with a view to downsizing and downgrading in corporate policy, which is itself not an insignificant matter. The tax applied to company cars is an often obscure and seemingly illogical business, with the sole purpose of making cash.

There are also variable costs in a long term car rental agreement: deductibles, tires included in the rent, mileage, repatriation expenses and contractual penalties, elements that can be well managed in advance, with the objective that the rental budget remains the same until the end of agreement. Deductibles should remain within the fee in order not to increase this too much and at the same time to empower the driver, directly charging them in a case of claims and liabilities. Remaining with insurance, insurance companies can often increase premiums,, including proposals for changes to the contract and an increase in the fee or, alternatively, an extension of the rental period. The insurance element should be at the sole risk of the lessee, such contract options should therefore be negotiated prior to being eliminated. It is also essential to ensure that all vehicles are equipped with the latest active and passive safety devices, systems and integrated hands-free, and for travelling staff,, with a navigation system. The higher cost of the vehicle will certainly be repaid with fewer claims and fuel savings obtained through route planning capabilities.

Authored by Giovanni Tortorici