A corporate car-sharing initiative by the Irish operation of German car rental company Sixt will offer Irish companies an alternative to the company car and employee private car use that could significantly cut their transport costs, writes Brian Byrne.
Detailed in Dublin this morning, the idea is already trialled and proven in Germany and other European countries by Sixt, which currently operates a fleet of 1,200 rental and leased cars in Ireland since the brand arrived here in 2011.
The initiative will focus strongly on electric cars, though diesel vehicles will be available for companies who regularly require cars for longer journeys than the current range of EVs.
The scheme will target companies which currently depend significantly on taxi and personal car use by their employees for business related trips out of the office, according to the MD of Sixt in Ireland, Conor Kelly.
He said that in addition to the scheme cutting costs for the participating companies, it can be of benefit to employees, who can themselves lease the use of the cars at weekends for private use, which the company can offset against the primary lease cost. Such a use would also have BIK benefits for those employees, because the tax doesn't apply to rented cars. The scheme would also deal with potential issues on the use of the 'grey fleet' of personal cars being used for work purposes. This has become a matter of significant concern over a company's responsibility in the case of an incident during such use.
Sixt Ireland will offer a consultancy service to potential customers to help them decide on the best method of applying the scheme to their requirements.
In basic terms, all employees who need occasional transport for company business are given an RFID (radio frequency identification) card which is used to reserve use of the car for the desired period. The card also manages the security of the car, unlocking it and allowing it to be driven only for the reserved time or journey.
"The system gives the company total control over the use of the vehicle, including whether of not they want to allow private use," says Conor Kelly, who noted that the first customer of the scheme will be revealed by the end of February. He expects that this year, around 100 cars will be leased out in the initiative.
A typical lease cost was outlined at €540 a month, and charges to employees for private use could bring that down to €339 a month in the example. Leases would be taken out for a 3-year period. Significant savings would also be made through the use of electricity rather than fossil fuels.
Pictured at the launch of the initiative today are Adrian Yeates, MD of Volvo Car Ireland; Emma Toner of Peugeot Ireland; and Conor Kelly, MD of Sixt Ireland.
