The holy grail of transport and the environment, as the name suggests, is to decarbonize transport as quickly as possible. Rapid electrification is one of the most effective ways to achieve this. But we believe that to get there, everyone in the auto industry needs to play their part.
Leasing companies play a major role in achieving this mission. Leasing companies own millions of cars and have a huge impact on the cars people drive and, in turn, the pace of the transition to electric vehicles that we all so desperately need. The leasing giants claim they are already doing their part and accelerating electrification, but is that really the case?
When I take a closer look at their climate change plans, I’m not convinced. Leasing companies have weak electrification targets (most don’t even have them), and none have set lease end dates for fossil fuel vehicles. This is in sharp contrast to many automakers and fleets that have already committed to 100% electric vehicles by 2030.
When I confronted leasing companies with this inconvenient truth, their response was something I’ve seen many times in my time in the industry: pointing fingers. They say we depend on the cars consumers want and the cars automakers produce. Of course, the transition away from diesel and gasoline will take place through the interaction of various stakeholders, but shifting the burden is too easy and will delay much-needed change. This is why we are calling on leasing companies to finally take responsibility and accelerate their electrification plans.
Who will emerge as the first true green leader?
So what does it take for a leasing company to become a true green leader? First, it’s about ambition. Leasing companies should set electrification targets ahead of the market and commit to eventually ending leasing fossil fuel vehicles by 2028 at the latest. Looking at automakers’ production plans, there will be enough supply for leasing companies to go fully electric. . Additionally, EVs will reach price parity by 2027, removing one of the biggest barriers to electric vehicles: their high initial costs.
However, these higher goals must also be aligned with corporate policies that ensure the leasing company effectively achieves the higher goals. If leasing companies are serious about accelerating electrification, they should be more vocal and supportive of government actions that increase demand for electric vehicles. T&E has been calling for pan-European company car tax reform and EU action on vehicles for many years. So far, the leasing giant has remained surprisingly quiet. Only public and clear support for ambitious policy reforms will convince me that leasing companies are actually serious about their electrification efforts.
There is also a huge opportunity for the CEO of a major European leasing company to be recognized as a green pioneer. Will Tim Alversen or Alan Van Groenendaal be the first CEOs to phase out fossil fuels in the leasing sector? Apart from a good reputation, this is also a smart business strategy. If you look at the auto industry, you can see that the longer you wait, the more you lose. If I were the CEO of a leasing company, I’d rather be Tesla than a European automaker trying to catch up.
