Hundreds of fleet managers and other company mobility players completed the survey conducted by Fleet.be on the Cash for car measure. The survey brought to light several useful points that are currently under debate concerning the place of cars in Belgium.

It is uncertain whether the many policy measures, which have garnered media attention, will help to alleviate traffic congestion in urban centres and improve air quality in the short term. To be convinced of its effectiveness, one only needs to review the results of the latest study on website Fleet.be on the Cash for car measure, the transport allowance launched by the Michel Government.

The most telling insight of this survey conducted with 480 drivers and 263 fleet managers is that 60% of those polled do not plan to give up their vehicle! Among the proponents of the measure, a majority of them would use the financial savings to buy another new, bigger and more comfortable or used vehicle. Just a small number of the survey respondents plan to use only one vehicle for the household.

It is also shown that the measure creates more participation among those workers who have a lower budget for their cars (less than 400 euros per month). Workers from the public sector are most in favour of the measure. For all the sectors, the planned solutions are listed here in order of decreasing preference: public transport, bicycle and car-sharing.

However, the transportation budget that has been tentatively implemented by the federal government needs to be more far reaching and place importance on the financial advantages for the worker before a majority of employees are willing to give up their individual vehicles.

From the fleet managers' perspective, it has been noted that the larger the company is, the more open it appears to be to the measure. However, on the basis of this perspective, the choices and priorities are far from being the same from one company to another. This correlation also highlights a willingness to help workers make transportation choices and to offer them other extra-legal advantages (group insurance, holiday time). A certain amount of large companies, for that matter, have already incorporated transport schemes and other options into their business.

For instance:

"ENGIE launched a mobility scheme called "Let's choose", which has reduced single drivers from 70% in 2010 to 23% in 2017. With its new building having better public transport service while providing fewer parking places, the company proposed that all of its employees establish their own transport budget according to their wishes. For an equivalent amount, the staff could therefore choose between keeping a parking space or opting for a series of transport solutions (bicycle, PT subscription, car-sharing, etc.), services (electronic equipment, training, Décathlon vouchers, etc.) or extra-legal advantages (additional holiday time, etc.). The latter option was very attractive, allowing ENGIE to reach its basic objective and therefore free up a good amount of parking spaces," explained Chloé Laurent, Mobility Managers Network (June 2017).

All of the sector's actors agree on one essential point: coordination between different government authorities (towns, regions, provinces, federal government), infrastructures, and an improved public transport offer are indispensable before being able to plan a profound and sustainable transformation to the behaviours of individuals in our country.

Laurent Mélignon, Corporate Sales Director of Arval, the market leader in full-service car leasing and new mobility solutions, looks ahead to 2025. What does the future hold for the industry and mobility?

Arval is part of the Commercial, Personal Banking & Services division of the BNP Paribas Group. As the market leader, it plays a key role in offering full-service car leasing and new mobility solutions. Laurent Mélignon, Corporate Sales Director of Arval, is thus ideally placed to share his thoughts on what's in store for Arval in 2025.

Arval is the market leader in a sector in flux: how companies and private individuals see and approach mobility has changed significantly. Mélignon sees several reasons for this: "In our country, taxation is the primary driver of many change processes. This taxation is linked to wage costs: many companies see company cars as a tax-friendly alternative for maximising the remuneration they want to pay their staff. Employees, meanwhile, see company cars as a way to be compensated with tangible benefits, without the tax authorities targeting them. In the coming year, the tax framework will continue to evolve in line with this social evolution. The federal mobility budget and the bicycle allowance, for example, or options such as the cafeteria plan or the flex income plan: these are just some of the ways in which companies can use their salary package to motivate their workers."

But Arval's Corporate Sales Director sees even more drivers of change for mobility. Mélignon: "Our entire mobility culture is also changing, a trend that is set to continue in 2025. The younger generation is much less attached to the status that company cars have been associated with for so many years. They are just as happy to hop on a bicycle, take the bus or use car sharing, depending on the company's location, of course. Finally, there are also several macroeconomic factors driving this change. These include the growing traffic crisis many cities are facing, as well as the increasing awareness of people and economic players regarding the energy transition. We are all gradually seeing the need for change and alternative mobility choices. This has been clear for quite some time."

Flexible complexity

The mobility mix will only become stronger in the future. Mélignon: "That is a big part of our mission: to be and remain a one-stop shop, offering companies the opportunity to think in terms of flexible remuneration. A new employee, for example, someone who is single and without a family, has different mobility needs than their colleague, who is married with two children and has their own home in the countryside or in the city. Now that this need is becoming stronger and more established, Arval is the ideal partner to provide companies with knowledge about mobility and take the burden off their hands. We enable employers to offer flexibility by taking care of the complexity associated with it."

Positive mindset

Mélignon expects the transition to electric mobility to continue in 2025: "When I look at corporate customers, I see that 80% of all new orders are electric. This is quite different from the private market, where we barely reach 20%. The electrification of the Belgian fleet is therefore mainly driven by companies. I see that the government has recently made some announcements and initiatives to slightly adjust and refine the federal mobility budget. In the coming months, more and more people may thus give up their company cars and opt for this adjusted budget instead. Arval can also be of service there, with a positive mindset and a lot of know-how, in our role as a 'full mobility provider'."

Tipping point

According to Mélignon, the shift to electric mobility, which the market has been anticipating for so long, will also have consequences for companies. Mélignon: "We expect to see many more affordable models in 2025. Electric vehicles will no longer be just for the lucky few. This benefits the private market, but it also gives companies more opportunities. In addition, I expect the price of cars with combustion engines to rise. We often receive this feedback from manufacturers. As a result of the Corporate Average Fuel Economy (CAFE) standards, which regulate their CO2 emissions, they will soon have to pay huge fines if they fail to meet these standards. It is therefore in their interest to steer the market towards electric cars. They will also adjust their production capacity accordingly: 'made to order' instead of holding large stocks will become the industry standard from next year."

The road ahead

On a final note, Arval expects the market to open up to smaller and medium-sized enterprises and individual clients in the near future. Mélignon: "We believe that the change in the market will mean that many companies, which currently still favour purchasing company cars or financial leasing, will switch to operational leasing. They will outsource the risk related to, for example, residual value to us. And that is where we can make a difference as the market leader: we see this as a scenario for the near future, for which we are already preparing."

Thinking about leasing a company car? Not sure which options are available? Below is an overview of all our available leasing options. That way you can determine which type of leasing is right for you. What's more, our partner Arval has a top deal, valid until 30 November 2024: drive the new electric BMW iX1 eDrive20 or BMW i4 Gran Coupé for a very advantageous all-in price.

Financial or operational leasing?

The same reasoning applies to both financial and operational leasing: you pay a leasing company for a specific period, usually four or five years. In both cases, the leasing company is the legal owner of the car. You do, however, have the option to purchase the car at the end of the contract. In financial leasing, the amount of the purchase option is known from the start of the contract whereas with operational leasing, the amount is determined at the end of the contract based on the car's market value.

'Including services'

This is one of the major advantages of operational leasing versus financial leasing: the taxes, (comprehensive) insurance, maintenance and costs (except fuel) are all included in the rental price. What's more, you enjoy additional services such as summer and winter tyres, roadside assistance and a replacement vehicle. All you need to do is pay a specific amount each month and that's it. In short, you get to drive with peace of mind: everything has been paid for, except for the fuel.

Tax implications?

The purchase option has tax implications: for a financial lease, you depreciate the investment asset and deduct the interest on your tax return. The car is listed as an asset on your balance sheet. For an operational leasing contract, the full rental price is processed as a cost. Tax deduction limits apply in both cases and you may have to take the professional use of the car into account. Equally important: the VAT is paid monthly on the rental price and not in one go, allowing you to use your lines of credit for other investments.

Get our top deal

Our exceptional offer is valid until 30 November 2024: you can lease the new electric BMW iX1 eDrive20 or BMW i4 Gran Coupé under an operational leasing contract at an affordable and exclusive price, including all services.

Arval Belgium SA, Ikaroslaan 99, 1930 Zaventem – RPM Bruxelles – TVA BE 0436.781.102, intermédiaire en assurances à titre accessoire, inscrit auprès de la FSMA sous le numéro 047238 A. Sous réserve d’acceptation de votre demande.

Arval Belgium nv, Ikaroslaan 99, 1930 Zaventem – RPR Brussel – BTW BE 0436.781.102, nevenverzekeringstussenpersoon geregistreerd bij de FSMA onder het nummer 047238 A. Onder voorbehoud van aanvaarding van uw aanvraag.

Today, many employees see mobility as a need they address with their employer. They have moved beyond relying solely on the private car to get around, instead using a mix of mobility solutions – private, public and mixed. Belgian companies are therefore increasingly looking for expert advice on the perfect mobility mix, adapted to their own professional needs and the needs of their staff. Arval’s mobility specialists show how mobility is evolving and how to handle it accordingly. This not only takes knowledge, but also guidance to support employers in this area.

Philippe Kahn, Mobility Solutions Expert, sums up Arval’s vision and mission: “Life is a journey made of journeys. This means that we at Arval are constantly asking ourselves how we can support and relieve small, medium-sized and large enterprises in all the mobility issues they face. Our DNA as a supporter is built on two key aspects that add value: personal and sustainable mobility*. From individual firms to large companies, Arval offers its corporate know-how and provides a one-stop-shop solution."

* Sustainable mobility: mobility with lower greenhouse gas emissions, which promotes electrification, soft mobility and/or public transport.

Sustainable mobility: a natural progression

Many companies are now fully focused on sustainable mobility or are evolving in this direction. This means not only opting for electric cars, but also looking at new mobility solutions with an open mind. Arval has a role to play in this: all customers are informed and guided in their pursuit of sustainable mobility. For many companies, new mobility solutions such as Arval Bike Lease, Arval Car Sharing and the future budget management tool are key to a balanced mobility strategy.

Added value: business and personal

Arval’s budget management tool provides companies with a comprehensive overview of all their employees’ used mobility solutions and the associated costs. This is just one aspect of the added value companies get. Mobility consulting is also an integral part of what Arval offers.

Kahn: "If a company of around 100 employees plans to move to the centre of Antwerp, we sit down with them to see what new mobility solutions they'll need and how much it will all cost. This way, we're truly part of the team and together we look at the effects of all possible mobility solutions on their future. This is customisation, where we put our expertise at the service of our customers."

This expertise often leads companies to take a step forward in their business management and to better support their staff."

Kahn continues: "The days of using an Excel file to keep track of pool car usage are over. Apps on phones or computers make everything easier and smoother. They keep track of the location of pool cars between the various branches and blur the line between pool and shared cars. For example, employees can use a car privately during the weekend – albeit for a fee – and for business travel during the week. Support for leasing an electric bicycle is also included. Arval relieves employers and gives them extra assets to support their employees in their private mobility too. Through their mobility offerings, companies can support their employees' daily lives, both in and out of the office.”

Arval Belgium SA/NV – Ikaroslaan 99, 1930 Zaventem – Brussels Register of Companies – VAT BE 0436.781.102, secondary insurance mediation, FSMA no. 047238 A. Subject to acceptance of your application.

Since 2019, the bank has reduced its CO2 emissions per full-time equivalent by 55%. And according to Sandra Wilikens, Chief Human Resources Officer, everyone must play their part.

Between 2019 and 2022, the bank succeeded in reducing its CO2 emissions by 55%. So how did you do this?

"Mainly by focusing on the energy efficiency of our buildings, which account for approximately 80% of our immediate emissions. We also optimised our real estate and significantly reduced business travel. We settled on a structured approach involving all departments. Since 2012, our Green Bank Platform has gathered the contact persons of each department every quarter, allowing them to present an action plan with their initiatives. They then develop a series of KPIs on energy and paper consumption, business travel, the electrification of the vehicle fleet, waste management, etc. Because measuring is knowing."

The target was to achieve a 42.5% reduction in emissions compared to 2012 by the end of 2025. A goal we have since achieved. What else is in the pipeline?

"We have no intention of resting on our laurels until 2025. Because there is no time to waste if we want to be carbon neutral by 2050. Our new headquarters at Montagne du Parc in Brussels is a good example of energy efficiency, but there is still a room for improvement in the rest of our real estate. We will improve the energy efficiency of the various regional offices, install solar panels in more than 80 branches, and LED lighting will become standard in all our buildings. These efforts must allow us to reduce our CO2 emissions by another 7%."

How much progress have you made in terms of the electrification of your fleet?

"We are making a sustained effort to electrify our fleet, and I think we are on the right track. At the end of 2022, just under 30% of our fleet of leased company cars was electric – 100% electric and plug-in hybrids. In the third quarter of 2023, these cars accounted for 95% of new orders. This was largely due to the new car taxation. But for employers, it doesn't stop there. They must deal with a complex tax framework, including the reimbursement of electricity costs. Some of our staff members also face obstacles, for example, because they have difficulty accessing a charging station. I intend to organise a mobility roundtable this year. The aim is to bring governments, operators, start-ups and companies together. Because we have to move forward and are all in this together."

How do you ensure sufficient employee engagement?

"With a lot of communication. You need to explain what you are doing and why. That is the only way to get people to cooperate. We have a network of more than 200 EcoCoaches within the bank. The sustainability compartment of CBA 90 also inspires. We set six specific objectives each year. If we achieve at least three, all staff members receive a bonus at the end of the year. To date, this has been a success. We also have other incentives. With our “Green Fuel Consumer Plan”, we reward staff members who have a company car but use it sparingly. We are also launching many campaigns to promote soft mobility, such as walking, cycling and public transport. The decision to base our offices in cities is also positive. At the end of 2022, 79% of the employees working in Brussels used public transport to get to work. Outside cities, 60% of employees do this."

Finally, can you think of any issues that need to be addressed urgently?

"Digital pollution is often underestimated. To give you an idea: sending 100 mails emits just as much CO2 as driving twenty kilometres. That’s why we organise an internal campaign every year to raise awareness among our staff members and give them tips on how to reduce their digital footprint. Regularly cleaning up your mailbox, sending links instead of files, deleting outdated files: all little things. But if our 11,000 colleagues do this daily, we can make a big impact. Every effort counts!"