Run by president Victor Noguer and director Jaume Verge, AEGFA has main objectives of representing the group of car fleet managers, facilitating their professional duties by disseminating information and industry news, and enhancing their professional development through specific training solutions for the exercise of their functions.

The AEGFA is based in Barcelona and covers all of Spain including the Canary Islands. It has approximately 700 end-user fleet members with around 377,000 vehicles between them. Including leasing and rental firms, this figure increases around 750,000 vehicles. 

Activities include its inhouse magazine as well as three annual events: the Encuentro Nacional de Gestores de Flotas (National Managers meeting), the Día de la Flota Eléctrica (Electric Fleet Day) and Premios AEGFA a la Gestión de Flotas annual awards. The organisation also runs its Fleet Expert Diploma courses in Madrid and Barcelona twice a year.

The industry that it represents is not without its challenges – a relative newcomer to the car fleet market compared to other European markets, the Spanish fleet industry has been fast growing in recent years but was struck badly by the global economic crisis. This led to a 20% drop in residual values from the end of 2008. As a result many firms have turned to contract extensions by 12 or even 24 months – according to AEGFA one in three cars that was due to be returned in 2010 had its contract extended and the average contract is now 46 months compared to 43 before. 2011 has seen a return to purchasing for many firms although there has still been a sharp increase in contract rates as a result of the drop in RVs.

One effect of the move to extended contracts has been a pronounced development of the flexible leasing – or flexible renting as it’s known locally. 

AEGFA director Jaume Verge explains: ‘There are some sectors that cannot afford three or four-year contracts because they only need the vehicles for a shorter time – so they are now using flexible contracts that allow them to give back the vehicle after a year or 18 months.’

The main player is Northgate, which recently bought out rivals Fualsa and Record, although LeasePlan Industrial is also involved in this sector.

Nevertheless, renting (operational leasing) remains the dominant funding method by far, for reasons of cash flow as well as the removal of the risk for residual values.

As with all markets, cost control has become a focus for Spanish fleet operators in the last few years and it’s an issue that AEGFA looks to help its members with. However, the association says it’s important to be sure of the overall effects of cost control actions.

Director Jaume Verge says that the need for cost control has led to an increased demand for unbundled fleet contracts. 

He comments: ‘Nowadays it’s very rare that fleets work with only one supplier. Historically firms contracted everything through the leasing companies, but because pressure to control costs has increased, they are taking part of the services out of the leasing contract. Apart of two or three leasing companies, they may have other suppliers, such as an insurance company because they take the insurance out of the renting contract or a petrol card supplier.’ 

As an upshot of all of this, Mr Verge says that software to manage the fleet is becoming an issue. He adds: ‘There is a need for software that is independent and not depending on one supplier. However when we have looked at solutions they are too expensive for the average company. There is the need but not the money.’

Another issue that the organisation is currently looking at is the need for increased director and executive buy-in to the fleet department and improved recognition of the importance of the role.

He says: ‘The issue is that the fleet manager is not a first-rank manager – so they depend on bosses that are not very aware of all the work that is behind the fleet manager, such as the purchasing manager or the human resources. They don’t always know the need so they don’t always allocate resources to these needs. It happens in other market but perhaps it happens more in Spain because the development of the fleet market is more recent.’

This is a focus being developed by AEGFA. It is also looking to develop regional meetings and other services for its members to help them here. 

AEGFA is also trying to raise its profile by identifying new members – not such an easy task as you might think. Mr Verge explains that where once fleet vehicles were just the preserve of larger organisation, now there are many SMEs with a small number of vehicles that are using leasing. 

He adds: ‘In these companies they don’t have a fleet manager – it’s the administration or the human resources responsible that puts everything in the hands of the leasing companies. These cars are under the figures of the leasing companies and it makes it difficult to find out who these firms are.’

He also says that Spain has a large number of vehicles run by sole traders. According to estimates, as many as one million vehicles are run by such people but it is almost impossible to identify precisely how many and who such people are.

AEGFA LOOKS TO SUPPORT EV INDUSTRY 

AEGFA also looks to promote the electric vehicle industry through its work. The association supports the Instituto para la Diversificación y el Ahorro de la Energía (Institute for Energy Diversification and Saving of Energy or IDAE) with marketing actions to push the introduction of EVs in Spanish fleets.

Mr Verge says that the primary focus for EVs is private companies, as the public institutions – the local governments and regional governments – are under strong pressure to reduce their costs and they outsource EVs through private contractors. 

He adds: ‘Our main focus with this institute is to focus with private companies – they also have strict cost control but for CSR reasons they are trying and taking electric vehicles.’

However, as with many other markets, fleets are mainly looking to reduce their CO2 emissions by downsizing both the size of their cars and the engines used. This includes French firm Danone, which has recently moved its fleet to Volkswagen BlueMotion models – Polos for salesmen, Golf for sales managers and Passats for executives.  

This increased trend for greener vehicles has mainly been brought about by the need for cost-cutting as well as government incentives and a carbon-based vehicle tax system.

Mr Verge also says that firms are mainly focusing on hybrids, including food giant Leche Pascual, which in collaboration with Toyota Spain is rolling out 500 Auris HSD and 30 Prius models across its salesmen fleet as part of its commitment to sustainable mobility.

IDENTIFYING FUTURE CHALLENGES

In terms of future work, as a relatively new organization, the AEGFA is focused on expanding its work with existing members and identifying new members.

The AEGFA is also expanding into South America in collaboration with the Associação Iberoamericana de Administradores de Frotas de Automóveis (AIAFA) of which Mr Verge is executive vice-president. The association started two years ago in Brazil and has been launched in Chile and Argentina this year.  

Mr Verge adds: ‘In South America we are developing an association that covers the leasing companies too. We are not only focusing on fleet managers but also our association with the suppliers and rental companies because it is a common objective to make the industry more professional.’

Comparing the market to the Spanish fleet sector, he says: ‘We consider here that we have a lot to learn from other markets in Europe. But we are also finding that in South America every market is a different one. Everyone is focusing on Brazil because it’s the biggest country and the biggest market but Chile, Columbia, Peru or Argentina are also expanding.’

Whilst the challenges in South America lie in understanding each market’s needs and the scope for future development, in Spain the main focus for the AEGFA is to support its members as they look to balance economic requirements with fleet requirements and helping the fleet industry to come up with solutions that meet those needs.