How COVID-19 Will Effect Change on Fleets
In these unprecedented times fleet managers need to understand the impact COVID-19 will have on their fleet now and in the future, not only will it affect economic change, it is clear from recent studies the coronavirus pandemic has led to an increase in air quality all around the world. Lockdowns have resulted in factories and roads shutting, thus reducing emissions, in turn having a direct effect on current business models demanding change to “keep up”.
You are no doubt already effecting your businesses disaster recovery plan and doing all you can to keep your employees and customers safe while trying to establish business continuity. This article is intended to provide you with the guidance needed to help manage the impact this virus has had on fleets and how to start taking action.
It is important to limit the amount of damage this virus is having on your business and fleet; you can achieve this by avoiding all non-essential travel and postponing appointments which are not deemed critical. In addition, it is important to:
- Understand the current status of your fleet, what duration do you have left on contracts? latest mileage data, identifying essential drivers
- Do you have any vehicle on extension?
- When is your next vehicle renewal?
- Do you have any vehicles on order?
Manufacturers have stopped production globally which will have a knock-on effect on new vehicle lead times. To provide business continuity look to informally extend the duration of your current lease agreements or increase mileage limits so that vehicles can remain in use for longer and utilise spare vehicles for drivers waiting for a new vehicle delivery.
Although you will be doing everything you can to adhere to government guidelines and keep as many of your employees at home there will still be a number of unavoidable trips which can cause nervousness and uncertainty for your drivers. It is important to manage these concerns by providing a clear communication structure providing information on:
- Safety tips
- Process for Service, Maintenance and Repairs
- Hygiene tips
- Vehicle renewals process and possible new vehicle delays
It is also important to understand what this means for your vehicles warranty and what will happen to your vehicle if you can’t stick to the manufacturer service schedule?
Here at Rivervale we offer any make and any model of car or van to our customers so it was important to pull together all the available information to help you through this uncertain period. We have put forward the questions to all manufacturers and dealers within our network and have compiled the information below.
It seems the majority of car manufacturers are confirming that their warranties will still stand if your vehicle servicing is delayed due to coronavirus. This is great news and will be a relief to many, however it’s important to point out for the few that might see an opportunity to exploit here that if you purposely delay or miss your next service your warranty will be voided
In a similar stance to servicing vehicle manufacturers have made announcements that warranties will not be affected. It is advised to check with your vehicle manufacturer before making any assumptions and check any specific detail available.
If you've booked a service and it's been cancelled your vehicles warranty will be honoured. The manufacturers are recording service requests, and this will be taken into account. It’s important to point out that use of your vehicle is only currently permitted for essential use and travel to and from work where necessary. If you are continually using your vehicle for reasons outside of those permitted during the lockdown period, when you do come to have your manufacturer scheduled service questions may be asked.
Now you have everything in place to effectively manage your fleet in the current climate it’s time to plan for the future. To do this you will need to consider the economic effect while shaping policy changes which are in line with your business model and manage your environmental responsibilities in time for the 2035 road to zero campaign.
Whatever your scenario there will be a dilemma during the creation of your strategy and that’s why we are recommending a Fleet Policy Review.
Our Fleet expert is perfectly placed to assess your needs and guide you through the entire process, covering off compliance, health and saftey, acquisition and total cost of ownership
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The comments above do not necessarily reflect Rivervale's views unless clearly stated.