Fleet LatAm Conference: Optimizing safety, security while achieving carbon neutrality

Optimizing safety and security all while achieving carbon neutrality is ideal when creating your corporate fleet policy but this can be a challenge in Latin America if you do not know the ins and outs of the business.

In this brief snapshot, we will see what some of the key suppliers are doing to help fleet and mobility in the region.

First of all, keep in mind that the efficient control of safety within your fleet can represent nearly half of all cost reduction measures and a large part of this is achieved by reducing the number of traffic collisions.

And considering the multiplicity of technological devices used by people these days, being distracted while driving is the main cause of traffic collisions worldwide.

“In Latin America and the Caribbean, 19.2 road deaths per 100,000 people occur every year, approximately double that of countries with high incomes,” says Estrella Bonales (pictured left) who is Latam customer success and business development leader for eDriving.

Approximately 94% of car crashes are caused by driver error and 70% of those occurring in commercial fleets involve distracted drivers, says the executive.    

Speeding and aggressive driving behaviors, to include those such as smoking and using the cell phone while at the wheel, are responsible for 31% of fatal accidents, according to Geotab VP of Sales in Latin America Juan Cardona (pictured right).

Drivers are four times more likely to get in an accident if they are taking selfies, calling or text messaging while driving, according to Lytx. 

“One simple fix is using a seatbelt as this reduces the risk of injury by 45-60%. Remember that bad driving behavior impacts the cost of fuel, maintenance, insurance, among others, and this can be improved with the use of telematics,” says Mr. Cardona.

With telematics, you can evaluate, compare, and rank the behavior of your drivers and then prepare adequate driver training and accident reduction measures. Telematics, now with the help of cameras and AI, can also determine who is responsible for an accident and even in real-time.

Another thing to manage properly is the increasing occurrence of crime throughout supply chains. “Two of the countries with the highest risk of crime during land transportation are in Latin America, being Mexico and Brazil,” says Lytx CFO Brendan MacKenzie (pictured left). 

There is a lot of talk about sustainability but remember that safety and security is sustainability within itself.

Finally, to determine the ROI of implementing a driver risk management program, one must know how much it cost to do nothing to reduce vehicle accidents. According to eDriving, a commercial vehicle collision costs a total of US$72,000 on average and this entails much more than the cost to repair your car. 

Besides the potential cost on human health and life, other setbacks include higher insurance premiums, vehicle & employee downtime, administration & investigation, legal fees, medical expenses, recruitment costs for temporary workers, and the reduced value of vehicles.

KPI for achieving a safe fleet

•    Number of fatalities & injuries
•    Collisions per million miles
•    Events per 100 miles
•    Driver scores
•    Annual collision costs
•    Claims frequency

Ms. Bonales, Mr. MacKenzie, and Mr. Cardona were all special guest speakers during the Fleet LatAm VEx Conference 2022 held on Tuesday (26 April).

Environmental Sustainability

Instead of going full-electric, one way to push carbon neutrality in your company is to make the transition to hybrid vehicles, a strategy which looks feasible in Mexico considering the comments of two executives from LeasePlan in the country. 

During their presentation at the 5th edition of the Fleet LatAm Conference, CCO Karla Flores and Customer Success Director Edgar Torres mapped out the difference of greenhouse gas emission when comparing hybrids with internal combustion engine (ICE) vehicles. 

LeasePlan CCO Karla Flores and Customer Success Director Edgar Torres (source: handouts)

While a compact ICE vehicle used for corporate sales – on average - gets 20.4km per liter and creates 117 g/km of CO2 emissions or 11.7t per 100,000km, an ICE vehicle for managers gets 15.2km per liter and creates some 157 g/km of CO2 emissions or 15.7t per 100,000km, according to the executives.

Meanwhile, a standard hybrid – on average - gets 26.3km per liter and creates approximately 91 g/km of CO2 emissions or 9t per 100,000km.

In terms of prices, while the compact vehicle for salespeople averages 250,775 Mexican pesos (US$12,313) and the standard vehicle for executive managers is 366,293 MXN, the standard hybrid vehicle cost 381,982 MXN on average.

CO2 Emissions per vehicle type (source: LeasePlan)

For fleet managers, flexibility is more important than ever today, something that was explained by Sergio Lecue (pictured right) who is International Key Account Director for ALD Automotive in Latin America.

What is needed today are shorter term solutions, more mobility products, and electric vehicle (EV) options, according to the executive.

“Customers are seeking short to mid-term solutions so this commonly means shortening their contracts. Furthermore, remember that it is not only about having a car today so offering more mobility products is a must. Finally, although still in its infancy in Latin America, electrification is a solution to offer,” said Mr. Lecue during the Conference.

Suppliers must be aware of the needs of their customers so that they can offer the best solutions and there are four main things to address when determining this, according to Mr. Lecua, being optimizing TCO, security, energy usage, and mobility options.

When considering hybrids or electric vehicles (EV), the biggest issue fleet managers and drivers face today are those associated with charging. Fleet managers must implement the shortest, most comfortable, and intelligent charging solution for their vehicles, and this requires knowing the mechanics of charging infrastructure and the options available.

In a nutshell, “charging costs 20kWh per 100km of driving,” says Alejandro Criado who is Head of Presales Engineers at Wallbox. 

You first need to know the demands of your vehicles and then install the appropriate types of chargers in strategic locations. And for the most cost-effective operation, charge at night or during non-peak times. 

Keep in mind that the time inside (parked) decides the minimum power needed. Fast food or supermarket stops (30 minutes) demand 11-22kW chargers, restaurant stops (1 hour) demand 7.4kW, mall or hospital stops (2 hours) demand 3.7kW, and a factory or place of work (8 hours) demand 1.8kW.

Besides offering several charger models with different features and a variety of power outputs, Wallbox offers dynamic load balancing to help optimize operations, Mr. Criado explained during his presentation at the Conference.

Top Photo: Fleet LatAm Conference VEx 2022 was carried out in three languages, hosted by Steven Schoefs (English), Daniel Bland (Portuguese), and Pascal Serres (Spanish)