Luxembourg joins in this Europe-wide survey for the first time
On 20 June 2013, BGL BNP Paribas’ head office hosted a presentation of results of the Corporate Vehicle Observatory Barometer, an annual survey of company fleets by the Corporate Vehicle Observatory (CVO). This Arval initiative covers 16 countries, 12 of them in Europe. For the first time, Luxembourg took part in the survey, which concerns company vehicles, their financing and related services, the outlook for the future, new technologies on the horizon, and more. The CSA polling institute conducted the survey with a representative sample of decision-makers on corporate fleets.
Henri Boulan, head of CSA, presented the results with a panel of experts at his side: Robert Christophory, General Manager of BNP Paribas Lease Group Luxembourg; Christophe Dardenne, Managing Director of Costantini Constructions; Thierry Schuman, a member of the BGL BNP Paribas Management Committee and Country Human Resources Head; and Gerry Wagner, Arval’s General Manager and Chairman of the Luxembourg Federation of Vehicle Lessors (Fédération Luxembourgeoise des Loueurs de Véhicules). The moderator for the evening was motoring journalist Serge Pauly.
The CVO Barometer shows that despite the difficult economy, with vehicle fleet costs expected to come under more pressure, 22% of decision-makers at large firms (with over 100 employees) in Luxembourg expect their fleet sizes to increase. That compares with just 12% expecting their fleets’ sizes to decline. These figures place Luxembourg at the European average. However, given the need to reduce overheads, 30% of the large firms surveyed believe that vehicles’ useful lives will be extended.
In terms of financing automotive fleets, financial leasing seems to remain Luxembourg firms’ preferred solution (45% for companies with fewer than 100 employees and 38% for those with more than 100 people). But in terms of the number of vehicles, operating leasing is used much more than financial leasing. In Europe as a whole, on the other hand, fleets are most commonly financed by equity (48% for firms with fewer than 100 employees and 36% for those with more than 100 people).
The survey revealed another difference between Luxembourg and the rest of Europe: the main criterion cited by firms in choosing vehicles. Among large Luxembourg firms, 37% say that the purchase price is the most important factor, whereas the data from other European countries clearly point to the total cost of ownership (TCO). Actually, driver-related costs represent between 10% and 30% of total costs generated during the term of use of a company car. And although some companies monitor driver behaviour, they are much more inclined to apply restrictive measures to poor behaviour behind the wheel than to reward good drivers.
The survey also looked at the environmental impact of business fleets. In Luxembourg, all firms large and small are conscious of the ecological impact of motor vehicles and are trying to reduce it by optimising vehicle use and choosing cleaner cars, although electric vehicles still find a lukewarm reception. The companies’ environmental consciousness shows in the fact that 65% of them have implemented actions in favour of vehicles that emit less CO2, although they still omit to optimize their daily usage.
Full results of the CVO Barometer are available at www.arval.lu
Founded in 1989 and owned by BNP Paribas, Arval specialises in full service vehicle leasing. Arval offers its customers – professionals, SMEs and large international corporates – tailored solutions that optimise their employee’s mobility and outsource the risks associated with fleet management. Expert advice and service quality, which are the foundations of Arval’s customer promise, are delivered in 25 countries by over 4,000 employees, and in 14 other countries through a network of partners. Arval’s total leased fleet adds up to 689,000 vehicles throughout the world (June 2012). Within BNP Paribas, Arval belongs to the Retail Banking core activity. (www.arval.com)
About BGL BNP Paribas
BGL BNP Paribas (www.bgl.lu) is one of the largest banks in the Grand Duchy of Luxembourg. It offers an especially wide range of financial products to individuals, professionals, private banking clients and businesses. BGL BNP Paribas is Luxembourg’s number-one provider of banking services to professionals and small- and medium-size companies, and number two in services for individuals. It is also the leader for bancassurance. In 2012 the international magazine The Banker named BGL BNP Paribas “Bank of the Year” in Luxembourg for the second year in a row.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) has a presence in nearly 80 countries with 190,000 employees, including 145,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across Mediterranean basin countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia-Pacific.
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