Employers embrace retro fleet model
David Woods, 19 December 2008
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Company car schemes similar to those from the 1970s are making a comeback thanks to the economic uncertainty.
Company car schemes similar to those from the 1970s are making a comeback thanks to the economic uncertainty.
Research from GE Capital Solutions shows employers are starting to restrict the choice staff have over their company cars - the number of companies allowing staff to choose any car from any manufacturer has fallen by 8% in the past 12 years and the number employers who allocate cars from a single manufacturer has increased by 3.7%.
The research shows employers are putting more emphasis on fleet as a cost-driven business tool rather than a salary benefit. Employers are now more concerned about cost factors in fleets, such as fuel prices, than about HR issues surrounding company cars,
Gary Killeen, commercial leader at GE Capital Solutions, said: "The company car schemes of the 1970s saw employees given pretty much identical vehicles - it was common to see car parks outside factories and offices full of nothing but Ford Cortinas or Vauxhall Vivas."
However fleet is still described as ‘important' by 95.5% of employers.
Killeen added: "In the current climate employers are looking at company cars as a cost-effective business tool. Car choice is being restricted more often and cost factors are overtaking human resources issues."
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