Access to Mobility Does not Mean OwnershipSat, 09/01/2018 - 10:03
Q: What is LeasePlan’s main challenge to becoming as competitive as it is in the European market?
A: Europeans have embraced the leasing culture, which makes it easier for us to market our solutions. Mexico’s reality, however, is still different. Mexico City’s vehicle park amounts to 7 million units and all are bought rather than leased. Leasing culture is only starting to permeate the country thanks to the advisory efforts of companies such as LeasePlan. We approach our clients and make them aware of the benefits that leasing entails. This includes fiscal advantages but also greater control of vehicle fleets.
Q: Why is leasing vehicles instead of purchasing them a better strategy for LeasePlan clients?
A: Access to mobility anytime and anywhere is necessary for companies to focus on their business. Our clients’ core business is usually not fleet management and engaging in this activity without the necessary expertise or systems hampers vehicle control. LeasePlan can reduce companies’ expenditure thanks to our supplier network that offers more competitive prices for repairs and maintenance services. Additionally, LeasePlan has agreements with several OEMs that reduce the price of the vehicle.
Q: What is LeasePlan’s strategy to promote the leasing culture now that car sales are decelerating?
A: We approach our customers and show them the advantages of paying a monthly leasing fee rather than decapitalizing through vehicle purchase. Owning vehicles means having assets that do not yield profits but require constant investment that could be better allocated toward the companies’ main operations. Leasing also eliminates the need to take care of guarantee issues regarding defective auto parts and enables companies to identify users with high incidence rates.
Q: What needs did LeasePlan identify to develop its app and how has the market reacted to it?
A: Companies stall when they are not at the forefront of technological development. Users tend to forget to schedule maintenance dates for their vehicles. LeasePlan came up with a solution that gives them greater control by letting them schedule maintenance dates at any moment and keep track of key data from the vehicle. For fleet managers, we report costs related to the vehicle and we inform them which vehicles generate the most costs, how long units have stayed in the shop and other KPIs. The company also created the MyFleet online solution to help customers set report parameters according to their needs. All these systems are supported by the newly created LeasePlan University in which we try to align clients’ and suppliers’ operations. That way, all companies involved in the operation of the fleet can be aware of what can be done to improve processes. In 2018, we are launching a telematics solution that tracks driving habits and pinpoints the location of any vehicle in the fleet at all times.
Q: What is LeasePlan’s strategy toward EVs and autonomous vehicles?
A: In Europe, we have taken some steps toward making EVs the new normal by 2030 because the technology is already available. In Mexico, the development of this market still depends on diverse factors such as the availability of charging stations. Some of our customers in Mexico are global companies, so part of their policy is to reduce emissions in all markets. Depending on what their policies dictate, we work together with these customers to help them achieve their sustainability objectives. LeasePlan will push to support EVs and hybrids but the process will follow the market’s evolution. The company is doing consulting on CO2 emissions for its clients and we already have a client in Mexico about to make its fleet fully electric.
Q: How did LeasePlan perform in terms of client portfolio and revenue growth during 2017?
A: We added 85 new customers to our portfolio and we grew our fleet by 48 percent, even though LeasePlan had forecasted growth of 16 percent. Our strategy of having our salespeople work like consultants has made a difference.
LeasePlan is a Netherlands-based company focused on leasing and fleet management services