Terminology used in some European countries to identify fleet services provided on a fee basis, for example, the management of maintenance and authorizations for repairs and tires. Other services might include the buying of new vehicles for the customer’s account and the selling of used ones on the customer’s behalf.
In the case of maintenance and tires, the service can be supplied either on a fixed rate basis, thus providing a guaranteed maintenance cost, or on a pay as you go basis, in which case the actual costs are passed on the customer as they are incurred. In the United States and Canada, the terminology has a broader and more general meaning, namely the application of business management techniques to the administration, control, monitoring, and planning associated with the acquisition and operation of a vehicle fleet.
In Western Europe, arrangements of this nature are frequently used to cover company owned vehicles which are in a transition period during the time the owning company is phasing into a new leased fleet. They are also used, though, on a longer term basis, especially by those larger fleets which may prefer the flexibility and cost reduction potential which characterizes these programs. (Also see “Actual Cost Fleet Management.”)