An interview with CLM’s Tony Hulatt
Tony Hulatt was appointed Managing Director of CLM Fleet Management in 1993 after seven years with the company. In 1996, he led his colleagues in a successful managerial buy-out and took the company into full director-ownership in 1999.
Tony’s day-to-day duties involve developing both prospective and existing client business relationships.
FleetDirectory: What do you consider to be the greatest challenges facing fleet managers today?
Tony: In the current environment, the biggest challenge must be achieving the near impossible balance between the corporate influences of finance and HR; the former in respect of absolute cost control, the latter in ensuring that the fleet remains a motivational tool for both existing drivers and for recruitment.
The pendulum has clearly swung and currently remains with finance and therefore cost control, and making the fleet ever leaner, must be a fleet manager’s number one priority above all others. At a time of potential upturn, the fleet manager’s challenge lies in keeping all vested interests happy whilst delivering ongoing savings.
FleetDirectory: The progress seen in electric vehicle technology in recent times has been encouraging but why do you think fleet managers aren’t embracing them?
Tony: Like any ground breaking advances in any sector, there is a ‘safety in numbers’ influence and currently, there is no real weight of experience or momentum to persuade sufficient fleets to take the EV plunge.
Having said that, and against the background of cost control, EV pricing is not helping their cause. Whilst I accept all the arguments about being greener, the disparity of pricing against standard cars is such that the case for EVs in the current economic climate is difficult to sustain – no point in being green if your business fails through inadequate cost control.
CLM now has some long experience of managing electric commercial vehicles and, even putting aside the unexpected failure of Modec, the in-life repair costs, and related battery issues do limit their widespread acceptance and cost effectiveness in the foreseeable future, other than in bespoke operating environments.
The key to EVs overtaking conventional models lies not, in my view, with the first corporate owner, but with the future pre-owned market and given some of the very high costs associated with battery repair, the retail public will take some convincing that a four or five-year -old EV of current technology is a risk worth buying.
FleetDirectory: Do you feel manufacturers are doing enough to produce vehicles that effectively limit overheads for fleet operators?
Tony: Given the advancements in technology over the last few years, especially linked to service intervals, fuel consumption, and CO2 output, I believe manufacturers have responded and continue to deliver improvements that are driving down running costs.
The key here however, lies with Government – all of us need to work to clear strategies and objectives and until such time as political expediency is replaced by consistent long term policies, manufacturers’ R&D programmes can only do so much. EV development is a case in point – until Government provides the necessary commitment and incentives to deliver a national charging infrastructure, then the speed of EV investment and development will always be in the slow lane.
FleetDirectory: The motorway speed limit – is it high time we seriously considered raising it?
Tony: Depending on which survey you choose to read, anywhere between 60-70% of drivers questioned, regularly exceed 70mph on motorways.
If the much quoted statistic that police operate to a tolerance of +10% before considering prosecution, then the lack of compliance and consistent enforcement is an indication of its irrelevance to modern driving conditions.
When the 70mph speed limit was introduced in 1965, barely 20% of cars on the road could then comfortably exceed that figure – that percentage will now have been turned on its head.
In addition, improvements to braking, handling performance and safety enhancements such as ABS ensure that comparatively, an 80mph speed limit now would be no more a risk than 70mph was 40 years ago.
There will always be law breakers and boy-racers, but I for one would be happy to see an 80mph limit introduced but coupled with zero tolerance enforcement.
FleetDirectory: How effective do you think the Continuous Insurance Law will be in controlling the number of uninsured drivers on UK roads?
Tony: Although largely a non-corporate problem and an issue for private drivers, it is important that uninsured drivers are caught, brought before the courts, and the appropriate penalty exacted and therefore for all properly insured parties, we must hope that this new legislation works better than the MID which has increased the level of administration and bureaucracy for companies for no discernable benefit, to alleviate a problem that largely doesn’t exist within its sector.
FleetDirectory: What lies ahead for CLM? How do you expect the business to progress and what can we expect to see from you in the future?
Tony: On the back of its niche status and independence, CLM has seen excellent growth in its acquisition of new clients in 2011, driven by their desire to increase savings opportunities linked to both acquisition and, as importantly, centralised administration regardless of how many legacy providers are inherited.
Flexibility is also high on the agenda and having been constrained by long term contracts which are expensive to break, CLM is seeing a definite movement towards extended mini-lease options that allow clients to flex vehicle numbers to better match fleet needs, as these change over the cycle.
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