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Siemens Case Study
Car Benefit Solutions (CBS) is one of the UK’s leading providers of automotive benefits consultancy, specialising in the development and implementation of structured company car alternatives. The CBS product suite includes financial modelling, technical advice, policy development, Inland Revenue compliance, project management and Health Checks.
Siemens were one of the original pioneers of Employee Car Ownership (ECO) schemes when they introduced these arrangements in 1998 for some 2,200 eligible employees from a total car fleet potential of circa 4,000 units. Since this introduction, the original scheme has been well received by employees but has given rise to frustration for their employer largely attributable to an onerous administration burden and secondary tax implications arising from the nature of the support provided by Siemens.
Click here to download a pdf of this case study.
Car Benefit Solutions (CBS) is one of the UK’s leading providers of automotive benefits consultancy, specialising in the development and implementation of structured company car alternatives. The CBS product suite includes financial modelling, technical advice, policy development, Inland Revenue compliance, project management and Health Checks.
Siemens were one of the original pioneers of Employee Car Ownership (ECO) schemes when they introduced these arrangements in 1998 for some 2,200 eligible employees from a total car fleet potential of circa 4,000 units. Since this introduction, the original scheme has been well received by employees but has given rise to frustration for their employer largely attributable to an onerous administration burden and secondary tax implications arising from the nature of the support provided by Siemens.
Project Objectives
- Business cost reduction
- Selection of operational provider
- Consolidation of multiple supply arrangements
- Reduction in secondary tax costs
- Minimisation of administration burden
- Tax and legal compliance.
- Conduct Feasibility Study to assess economic
viability of options - Management of Invitation To Tender (ITT) process
- Assist business unit HR policy definition
- Design employee communication material
- Develop Early Termination and Excess Mileage solutions
- Tax clearance and legal compliance
- Project management.
- Single benefit provision methodology
- Participation from all operating companies
- Administration burden reduced by over 50%
- No erosion of employee benefit
- Access to latest tax structure efficiencies
- Expertise and strategic support during project lifetime.
Did CBS add value?
"With 18,000 employees and 25 businesses ranging from meter reading to mobile telecommunications and MRI scanners to power generation, Siemens UK operations are complex and cross many labour markets, each of which has its particular nuances. The business vehicle needs, including Light Commercial Vehicles and regular cars, are delivered through the Car Benefit Scheme, the core of which is the Siemens Vehicle Plan (SVP). The SVP as designed, developed and jointly implemented by our partners at CBS and accommodates the needs of some 4,000 eligible employees with a single car benefit proposition.
"With 18,000 employees and 25 businesses ranging from meter reading to mobile telecommunications and MRI scanners to power generation, Siemens UK operations are complex and cross many labour markets, each of which has its particular nuances. The business vehicle needs, including Light Commercial Vehicles and regular cars, are delivered through the Car Benefit Scheme, the core of which is the Siemens Vehicle Plan (SVP). The SVP as designed, developed and jointly implemented by our partners at CBS and accommodates the needs of some 4,000 eligible employees with a single car benefit proposition.
The approach adopted in communicating the change to our driver population was always a key consideration for our Fleet Review Project. CBS's involvement gave us great comfort that the materials and methods we employed were of the highest quality and that the resultant message was clear and unambiguous. Feedback from our employee road shows has supported the opinion that we achieved all of our objectives in this respect."
Ben Debnath,
Corporate HR, Siemens plc
Click here to download a pdf of this case study.
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