Fleet Europe Summit: “You cannot dance at every wedding”
In today’s keynote discussion entitled “When electrification meets flexibility”, one quote in particular resounded in the public’s ears. The author? Konstantin Sixt, Member of the Managing Board and Chief Sales Officer at Sixt SE, who had an interesting talk with Tex Gunning, CEO of LeasePlan, and Bart Beckers, CCO of Arval.
All experts agree that the way forward is built on sustainability and flexibility. The question is how to balance both in the interest of tomorrow’s fleet and mobility expectations – and whether long-term renting is still a must in the face of the trumps offered by Mobility as a Service.
“The number of leased vehicles grows year after year. We expect the leasing market to continue its growth path. Moreover, we haven’t seen a shift in contract duration and that is logical: three-to-four-year contracts are still the standard as they offer the best value proposition to our customers. Also, most people want access to a car around the clock and long term leasing offers that convenience. Those living in cities have more punctual mobility needs and can indeed benefit from flexible solutions, like car sharing or short-term rental,” said Tex Gunning, CEO at LeasePlan Corporation NV.
Earlier this year, mobility company Sixt sold its leasing business to Hyundai Bank. Has the company changed its expectations towards long term rental and the viability of the associated activities? “You cannot dance at every wedding, as they say in Germany. That is why we decided to sell our leasing activities and focus on 100% flexible mobility. B2B and B2C customers realize that the most expensive assets in their lives are their house and their car. They look for solutions that allow them to only pay for the use instead of ownership – and increasingly so,” explained Konstantin Sixt, Member of the Managing Board and Chief Sales Officer at Sixt SE.
Bart Beckers, CCO at Arval, seemed to appreciate the strategy. “You don’t need to do everything yourself. Partnerships are crucial, not least between long and short term rental. More and more corporates want seamless solutions from A to B, where the company car is combined with other shapes of mobility. With EVs, such combinations are even more relevant.”
“How does electrification change the game and are the goals realistic?” asked moderator Steven Schoefs, highlighting that LeasePlan has committed itself to be 100% electric by 2030 and that Arval is aiming at 500,000 electrified vehicles by 2025.
Konstantin Sixt’s reply was as clear as it was encouraging: “Large leasing companies should lead the way and persuade their customers to go electric. From our side, I am proud of the fact that one third of our car sharing fleet is already electric. In the Netherlands it is even 100%.”
Tex Gunning: “We could go faster than we are already going with our electrification, were it not for charging infrastructure. We will get to our 2030 target, helped by the tsunami of new BEV models that is coming our way, but governments should not yoyo with their subvention schemes and laws – we need long term support and legislative stability.”
“Indeed, infrastructure is quite important. We as large fleet operators can help open doors. Yet, what corporates and their drivers should realise is that EVs are feasible in 98% of all cases, even if they don’t have big batteries. For the remainder of situations in which the range doesn’t suffice, short-term flexible solutions involving an ICE vehicle are at hand,” concluded Bart Beckers, underlining once more the need for partnerships between leasing companies and short-term rental companies – and a seamless customer journey.
