18 Nov 19

Leasing, telematics trending in South America

Among the fleet management trends in South America are the transition to leasing and the increased usage of telematics, according to three fleet management experts in the industry.

When it comes to leasing, one of the main benefits is that you do not need to deal with vehicle depreciation, according to Edgar Freitas Chaves who is the logistics and transport supervisor of the Israelite Albert Einstein Hospital in the city of São Paulo.

Moreover, “leasing companies have the expertise, the proper certifications, quick and efficient fleet renewal procedures, and bargaining power when it comes to acquisitions,” says Mr. Chaves, adding that one of the benefits the hospital has achieved is progressive discounts at petrol stations. The hospital has a fleet of 60 vehicles.

Israelite Albert Einstein Hospital, São Paulo (source: Israelite Albert Einstein Hospital)

For international food and beverages company DPA (Nestlé and Fonterra joint venture), “leasing brings benefits such as improved safety, cost reduction, more productivity, and a chance for companies to focus more on their core business,” says transport coordinator in Brazil, Renan Vidal.

For safety, DPA has developed its Rumo Seguro program which is aimed at eliminating traffic accidents in its corporate fleet. It is focused on managing the risk to life, vehicles, and dangerous routes.

Through telematics, the company improves safety by detecting and correcting wrongdoings and increasing opportunities through the reduction of costs and improvements in company productivity.

DPA has a fleet of some 200 vehicles, being 165 light vehicles (tool cars and executive cars) and 35 heavy vehicles. While most of its tool car fleet is made up of the Ford Ka and Chevrolet Cobalt, the brands making up its executive fleet are Honda, Jeep, Toyota, Hyundai, and Volvo.

Meanwhile, Brazil-based food production company Cocamar has found significant benefits through the implementation of telematics under its Vida Segura program which started in April 2018. Aimed at improving driver safety and corporate vehicle productivity, the program entailed implementing telematics and cameras in more than 70% of its vehicles.

When it first started, drivers committed 56 unsafe acts for every 1,000km traveled. “By August 2019, the number of unsafe acts dropped to only three, a reduction of 94%,” says Cocamar fleet analyst Ezequiel Scopel. Unsafe acts included speeding of 110kph (90kph in rain), harsh braking, sudden acceleration, running sharp curves, and high RPM.

Fuel consumption was also reduced by 33%, a savings of 1.3 million reais (US$317,000) per year. Cocamar has a fleet of 220 light vehicles.

As for Brazil, it is home to South America’s largest vehicle fleet. Of the 65 million vehicles, some 15% are corporate. And of the 2.17 million in new car and LCVs registered in 2018, nearly half of them were fleet sales.


Authored by: Daniel Bland