Fleet profile
While acknowledging hydrogen’s promise, Pemberton is more intrigued by Hydrotreated Vegetable Oil (HVO). “HVO is a little more expensive and currently does not appear widely available. It can be stored, which suits some business depots but as yet is not yet stocked with regularly used service stations. Despite being marketed as net-zero/neutral, it still emits CO2 but does offer considerable net reductions over its lifecycle.
Pemberton is cautious about hydrogen’s progress. “We’re no further with hydrogen technology than we were 15 years ago in my personal opinion. It remains a buzzword, but processing, transporting, and storing hydrogen is complex and costly. People often underestimate these challenges.”
to avoid that expense in the first place by proactively engaging with the drivers over simple things like tyre pressure checks.”
Leasing costs for vans, which once ranged from a few hundred pounds, have soared under Pemberton’s management. “Post-Covid, prices have risen nearly 10 per cent every six months,” he notes. A van that previously cost £200 now costs in excess of £450 – a dramatic increase driven by changes in vehicle policies and reduced discounts on diesel models as manufacturers are mandated to sell electric vehicles.
“Electric cars are not a silver bullet ... My job is to find the best solutions for the business and reduce CO2
and
emissions where possible. We need to consider the entire lifecycle.”
To manage these costs, Pemberton has adopted several strategies. For instance, instead of an annual mileage limit of 17,500 miles, they now use 17,000 miles to ensure the vehicle doesn’t reach its 70k service threshold too soon, reducing maintenance costs. To accomplish this requires work with other functions that plan engineer working routes thus reducing daily travel. However, Pemberton acknowledges that shifting costs around has its downsides. “You can’t keep shifting costs without consequences,” he says. “There are always additional charges, like excess mileage fees. Vehicles in low-mileage areas like London benefit from less wear and tear but often cost more at the end of their contract due to body damage.” Anticipating unexpected expenses is also crucial. “Replacing a windscreen on a new Ford Custom now costs significantly more, compared to older models,” he reveals. “I’ll need to adjust my budget to account for such costs, since these are classified as accident damage.”
18 | November/December 2024 |
www.businesscar.co.uk
Fuel prices add another layer of complexity. “Our budget might anticipate a specific cost per litre, but real-world costs can vary wildly without a strict policy on where to purchase fuel, there are of course geopolitical variables to that affect price,” Pemberton says. “I plan to set the budget higher to cover expected increases, and hopefully we will benefit from any surplus if prices are lower.” Through these strategies, Pemberton is adeptly navigating fleet management, focusing on adaptability and proactive planning to keep Hotpoint UK on top of unpredictable fleet costs.
A future for hydrogen?
Pemberton reflects on the future of hydrogen and alternative fuels, drawing from his experience on various advisory boards. “Hydrogen shows potential, but realistically, it looks more suited for HGVs,” he explains. “Hydrogen is required to create electricity and power the vehicle, but transporting and refuelling it remains challenging. Though BP is investing in hydrogen infrastructure, stations will be limited to major routes, and I suspect it will be a long time before you see one in local towns.”
Pemberton has been closely monitoring fuel costs, analysing data from the fleet. “If all our engineers had used BP stations instead of third-party ones, we could have saved close to £300,000 in 2023,” he says. With fleet growth due to acquisitions, these savings are expected to increase. To address this, Pemberton explains, “We now track fuel invoices to identify the closest BP station to each refuel. We need to address this discrepancy.” He goes on to note that changing behaviour is a challenge, as engineers often decide to choose the nearest station that is convenient, even if it is not the one that’s preferred by the business.
In addition to fuel efficiency, Pemberton highlights another issue: “At times we’re losing up to £24 per week on some engineers due to idling – sitting in vans or talking on the phone during breaks.” Addressing these inefficiencies is crucial as the company optimises its growing fleet. Looking ahead, Pemberton’s proactive approach underscores his commitment to navigating the evolving landscape of fleet management. By embracing innovation, tackling cost challenges head-on, and fostering a culture of continuous improvement, he is steering Hotpoint UK towards a more sustainable and efficient future. The journey is ongoing, but with Pemberton at the helm, the company is well-equipped to meet the demands of tomorrow’s fleet.
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