2 immediate steps companies can take to reduce the impact of coronavirus on their fleet
We are living in extraordinary times. The coronavirus (Covid-19) outbreak has created the most serious health crisis of a generation. As the situation continues to evolve rapidly, many governments are preparing for very challenging scenarios by implementing rigorous measures and sometimes even lockdowns, which are affecting people, companies and business assets such as fleet vehicles. Everyone has an important role to play in helping to get through the coming weeks and months. As a fleet manager, you can already start doing your bit by taking some decisive steps to reduce the impact of an economic slowdown both on your organisation and on society as a whole. We outline two immediate measures here.
Measure 1: Extend rather than renew your vehicle contracts
Each year, most companies renew between a quarter and a third of their fleet. Every new vehicle delivery ties you into a lease agreement for the next three to four years, but such a long time span is difficult to oversee right now. Therefore, take a close look at the vehicles that are up for renewal and evaluate whether you can extend the existing lease contracts rather than placing orders for new vehicles. This also often generates immediate cost savings. Additionally, and perhaps more importantly, it gives you the flexibility to swiftly spring into action once business picks up again.
Measure 2: Delay scheduled maintenance
The virus outbreak has caused supply chain problems that are likely to affect the availability of many spare parts for several months to come. Additionally, as part of the measures to limit the spread of the virus, most vehicle service centres are operating at reduced capacity. In view of this, it makes sense to focus only on critical repairs (e.g. vehicle breakdowns) and legally required inspections. Delaying non-critical service appointments and cosmetic damage repairs will allow the available vehicle maintenance resources to be directed where they are most needed. This measure is less drastic than it may at first seem. After all, as part of the coronavirus response, many companies have advised their employees to stay at home and avoid all non-essential travel. Needless to say, this means less wear and tear on lease vehicles, so maintenance will be required less frequently for now.
How LeasePlan is playing its part
With over 55 years of experience and 1.9 million vehicles under management in over 30 countries, LeasePlan is a trusted partner for countless customers around the world. Their safety and business continuity are among our top priorities. As part of our full Covid-19 Response Plan, we are continuously monitoring government regulations as well as the availability of spare parts and the supply of new vehicles. Our aim is to ensure we can adapt to the changing situation and keep you as mobile as possible in these unprecedented times. LeasePlan's team of experts are specialised in the challenging dynamics of today's and tomorrow's mobility market. They can provide tailor-made advice and offer solutions for your specific mobility needs. Ask your LeasePlan contact person for more information or support.
What's next? Contact your LeasePlan representative. We will discuss the possibilities and provide you with a tailor-made proposal based on your individual situation.
We can help with the following:
- Joint review of your situation and analysis of your fleet with an extra focus on the vehicles that are up for renewal and advice regarding changes to the maintenance schedule
- Tailor-made proposal
- Implementation of agreed actions