FMMC North America debate Telematics, Safety, Accident Responsibility   

Vivid Cafe 

By Daniel Bland, August 2024

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Fleet and Mobility Managers Club (FMMC) North America recently met to discuss the topic of telematics and among the concerns were assuring fleet safety all while determining responsibility. 

Following a talk by FMMC Latin America in July about the challenges of transitioning your fleet to electric vehicles (EV), the North America group last week (August 13) found that telematics can help improve safety, efficiency, and sustainability in your fleet, but safety was the main issue of concern.   

There are many issues to deal with like keeping drivers compliant and determining who is responsible in the case of an accident.  

Questions arise such as whether to install an in-cab camera and the frequency at which the core company (fleet operator) should discipline drivers for bad behavior such as speeding or other traffic infractions. 

Moreover, if appropriate measures are not taken and an accident occurs, could the company itself be at fault instead of the driver?  

And when telematics is being provided by an outsourced fleet management company or directly from an automaker, we found that data is being delivered to the fleet manager but in many cases, not much more. Fleet operators still need to crunch this data and find solutions to their problems.  

Lastly, are there alternatives to telematics which can motivate drivers to be compliant? Should we be keeping an eye on every move they make or just reprimand them once an infraction occurs? This all depends on your corporate policy and other issues like whether you have union drivers.   

For some companies, vehicles are work-tools, so your boss has a right to keep an eye on you.  For others who are more focused on offering benefit vehicles for executives, the "big brother" strategy will certainly be less welcome.   

Solutions 

To keep drivers compliant and to avoid assuming fault, core companies should advise drivers of their bad behavior at least once a month or even more often.  Technologies such as real-time driver alerts and AI-powered sensors together with ongoing training sessions and driver behavior analysis are recommended.  

As for data, fleet operators should understand that having the hardware to collect driver information is only half the job. Developing solutions in-house or finding suppliers that know how to turn this data into aggregate value are needed.  

In the end, although the goal is to optimize safety, efficiency, and sustainability, it usually comes down to maximizing cost-savings.  

Electric Vehicles 

Other topics were discussed such as improving sustainability through route management and the deployment of EVs. However, total cost of ownership (TCO) on these vehicles is still too high so price reductions are needed from OEMs.  

Moreover, dealing with remarketing is unknown as EV fleets are still very new, FMMC members said. What are the residual values of these vehicles?  

Another challenge mentioned was making sure vehicles have enough range. Fleet operators cannot have employees sitting around waiting for a charge so having a charger always available on-site is a good option.  

Finally, the alternative of paying for carbon credits was also brought up during the meeting. 

The Americas 

Compared to fleet operations in Latin America, it looks like the concerns for safety in North America is very similar considering the comments made by FMMC Latin America and Brazil groups.  

The one difference is that most standard cars in North America have most of the ADAS (Advanced driver-assistance systems) needed for safe operations such as collision warning and intervention systems and driver control assistance while many do not down South, especially for non-executive work-for-tool vehicles. 

To maintain cost savings, one solution is to avoid high-end vehicles and just pay for add-on safety options on a more basic car. In the end, technology is improving throughout the Americas and the overall situation in Latin America looks bright. 

Stay tuned for our next meeting in September with FMMC Brazil where we will address other key issues in fleet management.     

The goal of FMMC is to share best-practices throughout the Americas, working to help mature the market as well as improve the know-how of fleet professionals throughout the region.