FLEET NEWS 2014 AWARD ENTRY: NEW PRODUCT/SERVICE

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1 FLEET NEWS 2014 AWARD ENTRY: NEW PRODUCT/SERVICE RAC S UNIVERSAL SPARE WHEEL TO BENEFIT MORE THAN 58,000 FLEET CUSTOMERS IN 2014 GROWING TO UPWARDS OF 80,000 IN 2016 Executive summary In the last 12 months the RAC has been called out to more than 120,000 instances where motorists have experienced a puncture and their car had no spare wheel this is known as a Puncture No Spare (PNS), this represents an annual increase of 50%. As more cars are sold in this way, the problem is expected to grow significantly, particularly for fleets the RAC expects annual call-outs to grow to 80,000 for fleet vehicles by The inconvenience to fleet managers and company car drivers, primarily in the form of lost time, has been enormous as the existing solution meant that it could take as much as half a day to get the driver back on the road with the need to tow the vehicle to a garage to repair or replace the punctured tyre. The RAC saw a solution in the development of a universal fit wheel and identified Dynomec as the most suitable partner. The aim was to significantly reduce the impact on the driver, both in time off the road, as well as increasing their safety. In addition, the RAC wanted to reduce CO2 emissions by negating the need to tow vehicles to a local garage. In partnership with Dynomec, the RAC developed the Universal Spare Wheel a wheel that, through the use of a series of PCD washers, is compatible with most five-stud wheels and can be driven by the motorist until a convenient time for the repaired original to be re-fitted for them by an ATS or Kwik Fit garage. The Universal Spare Wheel is then returned to the RAC patrol vehicle. The reception from RAC business customers has been enormously positive and as a result the solution has moved from a trial with 160 RAC patrols, to being rolled out to all RAC patrol vehicles before the end of In addition, the RAC is also developing a four-stud version, which will increase the compatibility. Background and history Puncture No Spare (PNS) is a term becoming ever more popular in the vehicle breakdown industry. OEMs are more often providing a puncture repair kit in new cars, as opposed to a spare wheel. This reduces the overall weight of a car which improves fuel efficiency and helps OEMs to reach their CO2 emissions targets. Spare wheels are now often offered as an optional extra and are not standard issue 50% of new cars are sold without one and business car drivers are far more likely to drive the type of modern car that does not carry one. However, many motorists are not aware that they don t have a spare wheel and/or are unable to use the supplied puncture repair kit, particularly when on the hard shoulder of the motorway or a busy A road. 1

2 This growing problem has seen an increase of 50% in call-outs to RAC members in just the last year up from 87,000 to 120,000. The RAC expects the issue to continue increasing as a problem for our members, particularly in the fleet area in the coming years. Traditionally, when responding to a PNS an RAC patrolman arrives on the scene, unaware that there is no spare wheel to replace a punctured tyre. RAC patrols had an Intertrade spare wheel, but this could only be used to load a vehicle onto a flatbed for towing to a garage it could not be used as a replacement wheel for driving to a local garage or beyond. As a result this solution took a significant amount of time the customer had to wait for an RAC patrolman to come out, then the customer had to wait further for the tow truck to come to the scene. They then have to wait while the tyre is repaired or replaced at the local garage. It was not uncommon for this process to take as much as half a working day of the motorist s time. Additionally, the CO2 benefits of having a lighter vehicle with no spare wheel in it are entirely negated by the fact that a patrolman and a flat-bed tow truck have both been involved in the rescue process. Within an initial 12-week trial in one operational area (South West) there were 360 less patrol tows than normal and 59 less tows from a contracted operator. On average, this saved 30 miles per journey, equating in a reduction of more than 12,500 miles of the type of driving that typically produces more CO2 emissions. In summary the problems of the increase in PNS were four-fold: Increase in work time of the patrolman on the scene from 22 minutes to replace a spare wheel, to 44 minutes when dealing with a PNS and using a puncture repair kit or something else to get the vehicle off the roadside Safety issue every additional minute that a motorist is stood by the side of a busy motorway the exposure to potential accidents increases any reduction in that time will go a long way to increasing their safety Carbon footprint despite the 25-30kg weight saved by not having a spare wheel in a car, the increased footprint generated by the patrolman and/or tow truck means that there was potential for the RAC s carbon footprint to be reduced if we could find an alternative solution Wheelchair-bound customers unfortunately wheelchair-bound drivers often have customised vehicles to accommodate them. The impact when driving with no spare wheel is that they cannot be transported in a patrol vehicle How did the RAC deal with the problem? The RAC had, with the Intertrade spare wheel, a solution that allowed them to replace a PNS in terms of being able to get a vehicle onto a tow truck, but this solution would not support any form of longer driving, i.e. getting off the motorway or driving to a local garage. However, with the increasing number of call-outs for PNS and the longer work time involved in dealing with them, the RAC needed a better solution. As a result, the RAC approached Dynomec to develop a more robust solution that would provide a better alternative to the Intertrade spare wheel solution. 2

3 Dynomec owned a variety of patents regarding the pitch circle diameter (PCD) the connection process for attaching a wheel to a car, so they were the obvious choice for the RAC to work with in terms of developing the Universal Spare Wheel. Following the brief from the RAC, Dynomec engineered the aluminium Universal Spare Wheel we now use in all our patrols. But the solution does not stop there. The RAC additionally developed partnerships with ATS and Kwik Fit so that the customer could get their tyre replaced at a time and place that works for them. The patrol then picks up the spare from this location. As a result the new wheel and partnerships with ATS and Kwik Fit means that the customer journey is significantly improved. How it works While a PNS would traditionally meant as much as half a day out of a driver s schedule, the new Universal Spare Wheel reduces the inconvenience to the motorist immeasurably. Now, when an RAC patrol arrives at a PNS, the Universal Spare Wheel is attached within 25 minutes. The motorist then has the choice about the next step. They can take the car immediately to an ATS or Kwik Fit garage to have the original tyre repaired or replaced and continue their day. However, the Universal Spare Wheel is so robust that if the motorist needs to continue their day, to get to work, attend meetings, get to a customer or be somewhere urgently, they can drive with the Universal Spare Wheel and organise for a mobile ATS unit to come and repair/replace the wheel at a location convenient to the customer. ATS or Kwik Fit will then organise for the Universal Spare Wheel to be returned to the RAC patrol vehicle. Results As a result of the introduction of the Universal Spare Wheel and the partnerships with ATS and Kwik Fit the customer has been put at the forefront of the solution The inconvenience in time lost has been significantly reduced victims of a PNS are now statistically back on the road within 90 minutes of a call to the RAC The longer term repair/replace solution is delivered to the customer at a time and location convenient to them The customer s safety is increased as they will not be left at the roadside for any significant amount of time There is less need for the RAC to use a flat-bed truck to recover vehicles which means the RAC s CO2 emissions have been significantly reduced The landscape and the next 12 months The RAC anticipates that the PNS issue will continue to grow quickly in the next four-five years as more and more companies buy cars with no spare wheel. This is likely to impact fleets more significantly as vehicles are typically replaced on a three-year cycle. At the same time, road usage is changing. Specifically, as the Government introduces managed motorways systems, getting a puncture on a motorway where there is no hard shoulder will be even 3

4 more problematic than it already is, ensuring that a quick and efficient solution such as the Universal Spare Wheel becomes even more critical. We began by trialling the spare wheel in 160 of our RAC patrols across the South West of England. The trial has been so successful and so well received, particularly from fleet managers, that from January 2014 the RAC will have the current 5-stud Universal Spare Wheel in all of its RAC patrol vehicles. The RAC, in conjunction with Dynomec, is also developing a 4-stud version which will mean that we can solve PNS with even more vehicles. The RAC will be the first breakdown recovery service to offer the Universal Spare Wheel nationally in all its patrol vehicles. Summary The introduction of the Universal Spare Wheel to the RAC patrols has had an immediate impact on customer experience, and while it is still early days in terms of the broader roll-out, we anticipate its use having a hugely positive impact on the RAC s carbon footprint. Wide reach the solution the RAC has developed will benefit over 58,000 fleet customers in 2014 growing to over 80,000 in 2016 Customer service it has been designed with the customer in mind and will reduce driver downtime significantly, enabling customers drivers to continue their journey and/or gain a permanent repair more quickly Environment it will reduce the amount of recoveries that require a flat-bed truck or additional towing, thus significantly reducing the RAC s carbon footprint Customer safety introduction of the Universal Spare Wheel has halved the time required at the side of the road when a patrol arrives to a PNS call-out from 44 to 22 minutes. This means that in 2014 we anticipate saving fleet drivers more than 21,000 hours of standing at the side of the road (and getting them back to work) Motorists champion we are the first to market with this innovation designed to help motor manufacturers, fleet providers and motorists alike 4

5 Appendices Launch press release RAC trials universal spare wheel as puncture no spare call-outs increase by nearly 50% in a year With the number of punctures on cars with no spare wheel rising by 44% in the last year, the RAC has begun trialling a universal spare wheel which is designed to speed up the fix time and minimise inconvenience for members. In the 12 months up to August 2012, the RAC responded to 87,000 breakdowns involving a puncture on a vehicle with no spare, and in the 12 months ending in August 2013 this increased to approximately 120,000. The disappearance of the spare wheel has arisen as a result of car manufacturers seeking to improve fuel economy and reduce carbon dioxide emissions by lessening vehicle weights. As spare wheels are relatively heavy (often weighing as much as 25kg-30kg), removing them from a standard vehicle and making them an optional extra has become increasingly common with manufacturers. And, with car manufacturers obliged to ensure that average new car emissions do not exceed 130g of CO2 per kilometre by 2015 and 95g by 2020, the spare wheel is unlikely to make a comeback in the foreseeable future. Although manufacturers provide a tyre inflation kit in place of a spare wheel, these are only suitable for carrying out temporary repairs on punctures up to 4mm and can be daunting to use at the side of the road. RAC patrols attending these breakdowns would firstly try to fix the puncture and, if this was not possible, would then either collect and fit a new tyre or, alternatively, tow the member to the nearest garage, both of which can be time-consuming. However, with the RAC universal spare wheel, which fits the majority of cars that don t have a spare wheel fitted as standard, a quick and effective solution is possible, saving members time. RAC patrols will fit the wheel quickly and liaise with the nearest ATS Euromaster centre on their behalf to find out what replacements are available. Payment can be taken at the roadside by the RAC patrol, ensuring the customer can drive straight to ATS Euromaster, or book a mobile fitting at their convenience. The RAC will then arrange collection of the spare directly from ATS, avoiding any further hassle. Developed with specialist manufacturer Dynomec working in partnership with tyre expert ATS Euromaster, the five-stud, 17in lightweight alloy multi-fit wheel fits a high proportion of vehicles and will significantly cut down the time spent by members at the roadside, often in potentially dangerous situations such as on the hard shoulder of motorways. Trials are taking place in South West England and Northern Ireland with some 200 patrols carrying the new wheel. Head of RAC technical operations Phil Ryan said: The Dynomec universal spare wheel demonstrates how the RAC is at the forefront of providing innovative solutions to help our individual members and business customers get back on the road as quickly as possible after they break down. We understand why motor manufacturers need to reduce the weight of their vehicles in order to make them more fuel efficient and to meet EU carbon dioxide emissions targets and removal of the spare wheel helps them to achieve this. 5

6 But drivers should not suffer as a result, and in order to minimise the disruption and inconvenience that punctures can cause, the universal spare wheel provides additional options for patrols to deal with breakdowns more quickly and effectively. We are already seeing very positive results from the trials and we expect the universal wheel to become an increasingly common sight on our roads. Columba Zaal, ATS Euromaster s group operations director, explained: We too have noticed a surge in the number of calls our centres receive from drivers stranded with a tyre failure and no spare. The industry needed to respond to this growing problem, and it made sense for us to partner with the RAC to jointly develop a mobility proposition for motorists. Zaal added: All of our centres carry an extensive range of premium, mid-range and budget tyres, so we are confident we can get the majority of customers back on the road quickly. In the event that a specific tyre is not available on the shelf, we can arrange to attend any non-roadside location, such as a member s home or place of work, on a same or next-day basis. Operating the largest mobile tyre fitting fleet in the business is a key advantage. The RAC believes its universal spare wheel is set to be a welcome sight for both individual and corporate members as well as being a major benefit for business customers such as fleet managers who will be able to get their vehicles back on the road more quickly, saving both time and money. ENDS 6

7 Press coverage report for Universal Spare Wheel 7

8 8

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