Espoo draws criticism over executive car deal during job cuts

Espoo is renewing a four-year deal for company cars that could cost up to four million euros, prompting criticism from local politicians as the city cuts jobs. Yle reported that the city expects the actual cost to be about two million euros.

The procurement covers 40 to 50 fully electric cars for employees entitled to a company-car benefit. The vehicles are mainly in the E segment, described in the decision as upper-middle-class cars, though executive-class models may also be purchased.

The city sought bids for seven models: the Audi Q6 e-tron Quattro S line, Audi A6 Avant e-tron, BMW iX 50 xDrive, Mercedes-Benz CLA 250+ AMG, Mercedes-Benz GLC 400 4MATIC, Volvo EX60 P10 AWD Plus and Skoda Enyaq Coupe 85x 4×4 RS. The cars will be supplied by Secto Automotive Oy.

Espoo logistics director Kari Sirviö said the decision renews a contract that is put out to tender every four years. The city currently has 30 leased cars, and he said the number is not expected to rise. Since most car contracts last three years, some employees may receive two cars during the four-year procurement period, he said.

Politicians question the timing

Leaders of the three largest groups on Espoo City Council said the purchase looked troubling while the city was making savings and laying off staff.

Green Party group leader Mikki Kauste said the deal looked incongruous as several library employees were being laid off. He said spending four million euros could have kept many people in city jobs.

National Coalition Party group leader Emma-Stina Vehmas said the purchase raised questions given the city’s tight finances. She said major procurements should be carefully justified and reviewed for possible savings, and that she wanted the City Board to explain why cars in this class were needed.

Social Democratic group leader Juri Aaltonen also criticised the timing, saying the purchase looked bad just after the city’s change negotiations had led to layoffs.

Vehmanen said the City Board could take up the decision for review. Aaltonen said the city should reconsider whether its leaders needed cars of such a high standard and whether so many people should receive the benefit. Kauste said the Greens had repeatedly proposed removing the benefit during budget talks, while noting that doing so might lead to higher salaries for managers and would not necessarily save money.

Espoo said just over a week ago that it would reduce its workforce by 140 after change negotiations. That includes 80 layoffs, while 60 positions are due to end by 2029, partly through retirements. The city’s budget proposal targets savings of about 7.3 million euros in personnel costs next year.