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Cash or car for execs?

Companies are allowing execs leeway in selecting their own company ride

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Most companies provide their employees with company cars mainly for business purposes as well as for personal use.

However, we are seeing a new trend where businesses provide leeway of some extent in their vehicle benefits program for high-ranking executives.

Employees now are given two options; either they continue using their company vehicles or they accept an allowance provided by their company to purchase their own cars.

Cars Bikes & Trucks understands that either way, normally such benefits are concerted among executives and management team members.

For Edaran Tan Chong Motor, its vehicle policy states that the management team is assigned their own company vehicles at their disposal.

“We allocate our company’s own brands of vehicles to our management executives,” Infiniti’s business division general manager Tiffany Tan told CBT.

“For example, our top level managers are given the Infiniti Q70. The Nissan Teana is given to our senior managers while our middle management team gets the Renault Fluence,” she added.

The situation is the same for Naza Kia Malaysia. An executive said that as part of the company’s practices, on-field managers especially those in the sales and service division, are given their own take-home vehicles.

“As an automotive company, we believe that such a procedure is necessary. When we utilise our own model line-ups, we get to live and experience our own brand,” its operations general manager Roshdy Hassan said.

Mercedes-Benz Malaysia, on the other hand, has been running its company car program for the last six years and has proven to be successful, according to its president and chief executive Roland Folger.

“Our program has allowed us to gain a higher degree of engagement from our managers as we provide our own company cars. When we do so, our employees’ loyalty towards the company is higher because they get to drive and experience their own products,” he said.

CBT was also told that in exceptional cases whereby its top staffs insist on not using their company cars due to safety reasons, MBM will provide them with a “nominal sum” to purchase their own vehicles.

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About Adela Megan Willy

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