Demand for Diesel Reaches its Peak

According to GE Fleet Service’s quarterly survey only 38% of respondents predict an increase in use of diesel in the future, down almost a quarter on the same time last year. A further 61% expect no change in their use of diesel.

Diesel sales have been propping up new car sales for the last few years. In 2005, diesel registrations totalled 897,887 and rose 40% in December 2005, while the new car market dropped five per cent on 2004 to 2,439,717 units.

Uncertainty over fluctuating oil prices has seen a rise in importance for fuel economy (81%), whole life costs (79%) and environmental impact (57%) when constructing a fleet policy since the fourth quarter of 2004. The importance of fuel cards (63%) has also increased by over a quarter in the last 12 months as businesses increasingly try to manage rising fuel costs. And only 34% of the professionals surveyed  (a decrease of 58% in 12 months) are offering their drivers private fuel.

Additionally, as fuel costs are perceived to have a greater influence on business mileage in the future, employers are re-evaluating their business travel arrangements. According to respondents, business mileage reduction measures could  include increased home working (75%), video/tele-conferencing (58%), improved rail coverage (63%) and even increased use of low cost air travel (54%).

Rich Green, managing director at GE fleet services, comments : “The re-introduction of the three per cent benefit in kind diesel surcharge on Euro 4 models from April this year may be leading to a softening of diesel demand among fleets in the future. But while diesel cars continue to offer real fuel cost, environmental and corporate benefits, I don’t foresee a wholesale switch back to petrol or any other fuel.

“At a time when managing operational costs could be the key to business survival, it is right that fleet decision makers look at measures to reduce fuel costs. Improved communication technology and the increased functionality of the internet can offer a real opportunity to lessen or even eliminate unnecessary business miles.”

Company Information

GE Commercial Finance Fleet Services, with more than 1.2 million vehicles worldwide is a leading global car leasing and fleet management company, with operations in the US, Canada, Mexico, Europe, Japan, Australia and New Zealand. GE Fleet Services' European businesses with 250.000 cars are located in Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, Switzerland and the UK.

With over US$220 billion in assets, GE Commercial Finance, headquartered in Stamford, Connecticut, offers businesses around the globe an array of financial services and products.

GE (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming, and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide.

In the UK, GE Commercial Finance Fleet Services has a fleet of 54,000 vehicles and is based at head offices in Sale, near Manchester, where 250 people are employed.

www.gefleetservices.com

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Simon Wells

Paperchase Public Relations

PR Consultant  
 
Inge Declercq

GE Commercial Finance Fleet Services

Brand & Communications Manager Europe



 
 
 



 
 
 



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