Fleet Forum 2005

16 February 2006

The Alphabet Fleet Intelligence Forum 2005 brought together international fleet managers from several countries to discuss trends, challenges and solutions for international fleet management. Topics included residual value, employee moti-vation schemes, and international vehicle taxation and legislaion.

Alphabet invited senior international decision makers, including fleet management specialists, management consultants and tax experts, to par-ticipate in the annual Fleet Intelligence Forum in Barcelona, Spain on November 17-18, 2005. The Forum gave international fleet managers a rare chance to meet directly with each other and exchange know-how and experiences in managing international fleets. The Forum is the fourth annual event that has been hosted by Alphabet. Previous forums were held in the UK, Germany and Austria.

After the Forum, Karl-Heinz Kral, the Head of Alphabet, said, “We believe strongly in provid-ing our customers with intelligence that helps them manage their fleets more effectively. The international fleet managers attending the Forum tell us this is an opportunity for them to meet face-to-face, learn from each other, and share ideas. We are glad to give them that chance.”

Decision makers from international companies took part in the Forum. The discussion fo-cused on three important trends – the development of European tax law, total cost of own-ership issues, and employee motivation.

All participants agreed that, at present, one of the challenges faced by the fleet manage-ment sector is widely varying tax laws across the European Union. The variations in tax rules particularly affect cross-border leasing, pricing and international sales. A uniform car policy at the European level would simplify the business of fleet management. And, in the context of a European solution, CO2-related taxation will then play an important role.

Participants, moreover, discussed residual value as an essential factor in calculating total cost of ownership. Factors such as ecological aspects, brand, and market situation have the greatest influence on the residual value. By taking these factors into account, fleet manag-ers will be able to ensure long-term competitive pricing as well as position their companies as attractive employers to motivate and retain employees.

In addition, participants discussed alternatives to motivate and attract employees. Em-ployee Motivation Schemes such as cash-for-car options give employees cash to lease a car. These options can be tax effective, reduce internal resources required to manage fleets, eliminate financial risks and help employers attract top talent. During 2004, Alphabet launched AlphaDrive – a new product that offers cars with hassle-free service administration at attractive rates to employees with a cash-for-car option. AlphaDrive allows companies to offer the cost-effective solutions to employees and has been implemented successfully at a number of Alphabet customers.

Alphabet International Contact: Catherine Lindner on +49 89 382 52141