Company Cars Drive Back From AbyssThu, 09/06/2011
In recent years business fleets have shrunk due to cost cutting and employees using their own vehicles for work purposes. However, recent research, by a leading auditing firm, has revealed that the company car is set to make a major comeback.
The main reasons, the report has shown, are motor insurance requirements, duty of care concerns and government measures. These are set to increase the attractiveness of company fleets says the company.
Fleet systems are favoured by the government as they provide the simplest way to switch business drivers into the most fuel efficient models.
New motor insurance requirements will incentivise company car use and new legislation, the so called "kill bill" act, will make companies responsible for accidents that occur to employees who drive their own cars at work in cases where the vehicle is badly maintained.
"The Government has made it clear that it wants the company car to remain a key part of the corporate landscape," said a spokesperson for the company.
A motor insurance spokesperson added “Companies are becoming increasingly aware of their duty of care responsibilities."
"Fuelled by concerns over potential corporate as well as individual director liability, companies are favouring a return from employee car ownership schemes (ECOPS) and cash-for-car schemes to operating company cars."