While cars form part and parcel of our landscape, they now exist side-by-side with other means of mobility. We are entering an age of diversity and flexibility. Arval Luxembourg, a specialist in long-term leasing, presented the major trends looming on the horizon at the head office of BGL BNP Paribas on 6 July 2016.

Based on the results of the 2016 CVO Barometer (a European survey of corporate fleets conducted on the initiative of the Corporate Vehicle Observatory), Arval's Corporate Consulting Unit analysed the different options available for the short, medium and long term to guide fleet managers in their mobility policy.

More widely available alternative energies, the ecological debate on petrol versus diesel and the entry into force of the new calculation of benefit-in-kind for company cars on 1 January 2017 are all likely to be factored into the choices made by businesses in Luxembourg in the coming years.

On the one hand, there will be a greater shift towards petrol engines, even if diesel engines – increasingly cleaner under the effect of various regulations – will try to hold on to their secure position. Within five years, the share of diesel vehicles in the corporate fleets of the firms surveyed in Luxembourg will stabilise at 79%, compared with 88% for our European neighbours.

On the other, 54% of the companies surveyed are considering including or have already included so-called alternative energy vehicles in their fleet (hybrid, plug-in hybrid, electric, etc.). The real use of vehicles is therefore gradually being taken on board as company managers make trade-offs, and the different types of energy are assigned a particular use: diesel for long journeys; petrol for intermediate distances of up to 15,000 kilometres. Electric vehicles are for the time being limited to short trips in and around town and are seen as an ideal solution for pool cars.

Whatever type of energy is used, the operating cost of a vehicle fleet has to be associated with drivers and their driving practices, which not only influence fuel consumption, but also maintenance and claims costs, and can thus increase the cost of vehicle use by 40% or more. The on-board telematics solution, Arval Active Link, launched by Arval Group in 2015, provides an initial response to this problem through monitoring and reporting, but without impinging on users' privacy.

The environment is changing, home-to-workplace distances continue to increase, consumers' expectations of vehicles are evolving (particularly among young people) and work organisation now includes teleworking and the optimisation of mobility. In response to all these cultural, economic and ecological changes, businesses in Luxembourg are exploring the issue of the mobility of their staff in a new light. The Arval Mobility Link solution will allow a combination of different means of transports via a mobility budget that can be consulted at any time. Cars will therefore no longer be seen as the only way to meet mobility needs, but will be one component of the comprehensive service provided by Arval.

Today, firms in Luxembourg have different needs and are looking for flexible solutions for their automotive fleet: long-term leasing, medium-term leasing, car sharing and others. To meet those needs, Arval Luxembourg is launching Arval Mid-Term Rental, a new leasing solution that covers a period of 1 to 24 months, giving businesses in Luxembourg the flexibility they need to cope with periods of peak activity, seasonal activity or different phases of recruitment (e.g., trial periods, fixed-term contracts). It also permits optimal vehicle management when the evolution of the firm's activity lacks visibility.

"We're adapting our services to our customers' changing requirements. With Arval Mid Term Rental, we're offering a flexible solution to meet their evolving mobility needs", notes Gerry Wagner, CEO of Arval Luxembourg.