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I’ve spoken about this a lot recently having had a test drive in a Ford Mustang Mach-E. Whilst it’s not perfect the build quality, materials and technology were easily a match for any prestige brand. As soon as people migrated from Mercedes and BMW to an unknown brand like Tesla the die was set.

Looking at the spec. and design of the VW ID7 I can’t see any traditional prestige car driver not being tempted by this amazing car. What do you think?

Volkswagen’s sleek electric ID7 upper-medium car will be almost five metres long and have a range of up to 438 miles, the manufacturer has announced.

The model, which is planned for launch this year in Europe, is one of 10 new electric models that will be launched by Volkswagen by 2026.

This year sees the introduction of a new ID3, the ID Buzz with long wheelbase and the ID7. An electric compact SUV and the production version of the ID2all are planned for 2026.

Thomas Schafer, CEO of Volkswagen Passenger Cars, said: “With the ID7, we are taking the next step in our electric offensive.

“Already by 2026 we will offer the widest electric range of all manufacturers in Europe – from the entry-level (ID2all) model for less than 25,000 Euros up to the ID7 as the new top model within the ID family.

“Our goal is to achieve an electric car share of 80% in Europe by 2030. As from 2033, Volkswagen will produce only electric vehicles in Europe.”

The ID7 is almost five metres long and the manufacturer says the powertrain has been designed to maximise range.

Depending on battery size it predicts WLTP ranges up to 700km and charging capacities of up to about 200kW.

The ID7’s cabin features a 15-inch infotainment system screen, an augmented reality head-up display, and a new air conditioning operating concept integrated on the top level of the infotainment system.

Other technologies available in the ID7 include a panoramic sunroof with smart glass which can be switched between opaque and transparent settings by touch control, as well as Climatronic front seats which offer cooling and heating as well as a drying function.

Travel Assist technology can support assisted lane changing on the multi-lane motorway at speeds above 56mph.

The ID7 can also independently perform assisted parking manoeuvres in different ways, including parking with memory function over a distance of up to 50m.

For this, the driver either remains sitting in the ID7 or monitors the parking procedure from outside the vehicle using the smartphone app.  By Graham Hill thanks to Fleet News.

Transport Secretary Grant Shapps is being urged to adopt EU vehicle safety measures that are due to come into effect in July.

The package of 15 integrated measures includes better direct vision in HGVs, automated emergency braking that detects pedestrians and cyclists, and intelligent speed adaptation.

The UK supported these measures, which apply to new cars, vans, lorries and buses, until it left the EU. After Brexit the new rules will not automatically apply.

A group of former Transport Ministers, including serving MP Sir Peter Bottomley, Father of the House of Commons, say the UK now needs adopt the regulations to avoid putting the safety of its road users at risk.

David Davies, executive director of the Parliamentary Advisory Council for Transport Safety (PACTS), which advises the Government, said: “There has been little progress in reducing road deaths and injuries over the past decade (apart from during the 2020 lockdown).

Here is a package of measures that would kick start a new chapter. It comes at almost no cost to government or the motorist. We support the call from former transport ministers for the government to at least match the standards that will apply in Northern Ireland. It could demonstrate the UK’s new independence by going further and faster.”

The measures have the support of road safety stakeholders and the UK automotive industry, as compliance with these standards will be a requirement for exporting vehicles to Europe from July this year.

Under the Northern Ireland Protocol with the EU, they will also apply to Northern Ireland.

In a letter to Shapps, the former Transport Ministers said not adopting the new standards “risks putting the UK automotive industry at a competitive disadvantage.”

The Government consulted on new vehicle regulations in November 2021. A response has not yet been published.  By Graham Hill thanks to Fleet News

The average UK driver travelling 7,400 miles per year (22 minutes of driving per day) has a 15% high risk of obesity, according to research by Select Car Leasing.

The findings, from Select Car Leasing’s Driver Health Calculator, also revealed that drivers also have a one-in-20 chance of sleep deprivation, caused by the impact that prolonged periods behind the wheel have on the body.

Drivers with an average of 12,000 miles per year raise their risk of obesity to 30%. It also puts drivers at a higher risk of being stressed for time, poor overall health and a risk of their health hindering social activities.

Dr Deborah Lee of Dr Fox Online Pharmacy commented on the findings: “I find these Driver Health Calculator statistics quite alarming.

“Many of us spend at least half an hour a day behind the wheel, which equates to a mileage of around 10,000 miles a year.

“However, many people have a much higher annual mileage, especially those who drive for a living, such as lorry drivers, taxi drivers, and delivery drivers. Yet, most drivers will be totally unaware of the additional health risks of these prolonged journeys.”

To help combat the effects of driver health, Select Car Leasing has provided guidance to help offset the risks of excessive driving, including getting plenty of rest, in-car lumbar support to help maintain a healthy posture behind the wheel and parking further away from work as a way of incorporating low-effort exercise into the day.

Select also advises maintaining a balanced diet and listening to a podcast during a drive to make it appear shorter and boost mood before the day begins.

In November 2021, Select relaunched its corporate offering – Select Fleet Solutions – to provide audits, fleet management, salary sacrifice and grey fleet assistance. By Graham Hill thanks to Fleet News

The UK’s automotive trade body, the Society of Motor Manufacturers and Traders (SMMT), is calling on the UK Parliament to ratify the Brexit trade agreement.

MPs are debating the draft deal with the EU today (Wednesday, December 30) after Parliament was recalled to put the deal into law, a day before the UK severs ties with the European Union.

The SMMT wants the immediate ratification of the draft UK-EU Trade and Cooperation agreement (TCA), to ensure all automotive companies benefit from continued tariff-free trade from January 1.

It says that the draft TCA delivers across several areas for UK automotive, keeping the sector connected to a market that accounts for eight out of 10 of its vehicle exports.

Furthermore, the SMMT says that the TCA delivers on the core ask to avoid tariffs for most finished vehicles, parts and components.

Mike Hawes, the SMMT’s chief executive, explained that for automotive, Brexit has always been about “damage limitation”.

“The draft Trade Cooperation Agreement, while no substitute for the completely free and frictionless trade with Europe we formerly enjoyed, will address immediate concerns,” he said.#

“The TCA provides the opportunity for tariff and quota-free trade, foundations on which the industry can build.

“Even with immediate ratification, however, there will be just hours to adjust to new trading rules, so a phase-in period is critical to help businesses adapt.

“All efforts should now be made to ensure its seamless implementation, with tariff-free trade fully accessible and effective for all from day one.”

The SMMT says that the inclusion of specific provisions on transitional phase-ins for both electric vehicles (EVs) and batteries is also welcome.

However, it argues that the deal does not deliver some key asks, including formalising co-operation on the development of regulations and standards after the end of transition.

Nor does it prevent increased administration and potential for friction at the border, as we leave the single market and customs union, it said.

Hawes continued: “Further ahead, we must pursue the wider trade opportunities that Brexit is supposed to deliver while accelerating the UK’s transition to electrified vehicle manufacturing. 

“With the deal in place, Government must double down on its commitment to a green industrial revolution, create an investment climate that delivers battery gigafactory capacity in the UK, supports supply chain transition and maintains free-flowing trade – all essential to the UK Automotive sector’s future success.”

The eleventh-hour post-Brexit trade deal struck between the UK and the EU has been welcomed by the fleet and leasing industry.

It had faced a significant rise in costs, with tariffs imposed on cars and vans, if no deal had been agreed when the UK exits EU trading rules tomorrow (Thursday, December 31). By Graham Hill thanks to Fleet News

Fleet decision-makers and the leasing industry is bracing itself for a price hike on new company car and van orders in the event of a ‘no deal’ Brexit.

However, in a note from BMW, seen by Fleet News, the German manufacturer has announced a customs duty related increase of more than £3,000 on the recommended retail pricing (RRP) of the BMW i3, irrespective of whether there is a free trade deal or not.

BMW had announced at the beginning of October that BMW i3 models, along with the majority of other BMW models, would be subject to an “economic increase” in the recommended retail price rise from January 1, 2021.

Due to changes in the ‘Product Specific Rules of Origin’ legislation, it says that the maximum permitted content of non-EU and non-UK materials means these models will be subject to additional tariffs after the end of the Brexit transition period.

This will be the case, it adds, “whether or not there is a free trade agreement with the EU”, which means a further increase in the RRP of BMW i3 models is needed.

The current RRP for a BMW i3 (ZI3I), valid until December 31, is £35,120 – the previously announced RRP, to be effective from January 1, was £35,670. However, BMW says that the new RRP from January will now be £38,785 – an increase of more than £3,600.

Similarly, the current RRP for a BMW i3 (ZI3J), valid until December 31, is £37,650 – the previously announced RRP, to be effective from January 1, was £38,200. However, BMW says that the new RRP from January will now be £41,315 – again an increase of more than £3,600.

It says that for Direct Sales Agency Agreement vehicles, orders registered on or before December 31 will be charged the pricing valid on the date of order.

Meanwhile orders registered on or after January 1 will be charged as follows:

Vehicles which arrive in the UK on or before December 31 and which are marked sold on or before December 31 will be charged the pricing valid on the date of order as the vehicle will not incur additional import charges. Vehicles must be registered by April 30, 2021, to benefit from this pricing.

Vehicles which arrive in the UK on or after January 1, regardless of the date of order, or which are marked sold on or after January 1, will be charged at the new price, incorporating the customs duty increase and are not price protected.

BMW’s price hike comes after Renault issued its own price warning ahead of a free trade agreement not being reached.

In a letter from Renault’s fleet director, Mark Dickens, to customers, he says that the manufacturer has been in discussions with our factories to secure “increased production of vehicles and parts” to mitigate any risk of disruption to supply at the UK-EU border.

In addition, he said that Renault has increased capacity and staffing to ensure the “timely delivery of vehicles, parts and accessories to our customers”.

Any customer order created up to and including October 31, 2020, will be price protected regardless of the importation date, he says.

Any order placed from November 1 onwards, and that is matched to a vehicle imported from January 1, however, could be subject to revised pricing based on the imposition of vehicle tariffs.

In the event that tariffs apply on import, Renault says that those will be as per World Trade Organisation (WTO) terms, and will be added to the order price. Tariffs on WTO terms equate to 10% of the total new vehicle price including options.

Furthermore, it says any vehicle imported from January 1, ordered from November 1, could be subject to revised pricing based on the imposition of vehicle tariffs.

Finally, it says that any customer order created from January 1 would be subject to any new pricing irrespective of vehicle importation date.

Dickens wrote: “We will continue to closely monitor events and will keep you informed of any developments.”

Fleet News reported last month, how manufacturers had written to leasing companies warning them that they cannot guarantee company car prices beyond the end of the year, even for some models being ordered now.

In letters sent to vehicle lease provides by major carmakers, including BMW, Jaguar Land Rover and Mercedes-Benz, they say that the threat of a ‘no deal’ Brexit was to blame for the potential price hike.

Talks between the UK and EU are due to resume in Brussels at this 11^th hour. A free trade deal is looking less likely but still in the balance.

Any deal between the UK and EU would need to be ratified by parliaments on both sides, so time is running out for an agreement to be reached and to get the sign off before December 31.

Residual Value Concerns

A senior manager working at an FN50 vehicle leasing company, said the lack of clarity around pricing was a big issue for the industry.

He said: “Our view is that we should be advising clients to hold back on orders unless they choose from the manufacturers that have said they will honour prices.”

He envisages a number of cancellations from customers where any price protection doesn’t apply.

Furthermore, in terms of future residual values, he said they were in a state of “limbo”.

“There is an argument that they should increase proportionately to the increase in new vehicle prices,” he said, “but that would only be if we expected that the used market increases in value proportionately in three years’ time.

“There is an argument for that, but the future used values would then be increasing in value because of a one-off tariff that is being imposed rather than anything that relates to enhanced value.

“Such increases may be correct when looking at the actual price values of new vehicles, but it is also a value based on the future value prediction of a tax, which doesn’t feel quite right either.”

He continued: “If the tariff was imposed for just an – undetermined – period of time, and then taken away, what would happen to used car prices? Will they also increase now for a while and the turn back or will they stay at the higher value? Will future residual values also rise and then fall again in that scenario?

“In essence, the uncertainty will show through in the new car and used car market we believe and cause a de-stabilising effect. This is never good news for anyone in the automotive sector.”

‘Costly’ Brexit Preparations

The Society of Motor Manufacturers and Traders (SMMT) has revealed the cost to the sector of preparing for Brexit has surpassed £735 million, with more than £235 million spent in 2020 alone.

Most companies (67%) across the industry say they are doing everything in their control to prepare for new processes that will come into play on January 1, with 70% securing GB Economic Operators Registration and Identification (EORI) numbers, 60% spending significantly on stockpiling and 52% employing customs agents, as companies also try to prepare for any disruption or delay to supply chains.

However, significant gaps in the industry’s ability to plan still exist, with a lack of clarity on the nature of the UK-EU’s future relationship hampering the efforts of almost nine in 10 (86%) firms to prepare.

Critical questions remain unanswered. With the industry’s competitiveness built on Just-in-Time deliveries, companies cannot afford any supply chain delays so clarity on the operation of key new customs systems such as the Goods Vehicle Movement Service (GVMS) and the Permission to Progress (P2P) process, is vital, says SMMT.

Moreover, even if the UK and EU do conclude a Free Trade Agreement (FTA) from the end of 2020, there is uncertainty as to how companies will prove origin or products; if firms cannot do this then they will not be able to benefit from preferential trading terms.

Mike Hawes, SMMT chief executive, said, “As the UK-EU FTA negotiations enter the endgame, now is the time for both sides to deliver on promises to safeguard the automotive industry.

“Securing a deal is absolutely critical but it cannot be any deal. To work for UK automotive it must deliver for UK products and that means securing the right terms and conditions that allow our exports – now and in the future – to be zero tariff and zero quota trade.

A deal that failed to achieve this would be the equivalent to no deal at all, devastating jobs and slamming the brakes on the UK’s ambitions to be a world leading manufacturer and market for electrified mobility and battery technologies.”  By Graham Hill thanks to Fleet News

https://instagram.com/grahamhill999/

By Graham Hill

For most people WLTP probably doesn’t mean a lot but for anyone in the motor industry it’s been an absolute pain over the last 12 months. It stands for the Worldwide harmonised Light vehicle Test Procedure. It’s an attempt to get all vehicles properly tested, following the VW emissions debacle, making it more difficult to fiddle the results.

New model cars for this year had to be approved using the new testing criteria. The tests were still carried out in the rolling road laboratories but instead of self-testing examiners were in attendance to oversee the testing and the tests were more involved and took much longer.

A few failed but when the new models were designed they took the changes into account so most successfully got the approval they were looking for at the first time of testing, keeping them in the same emissions brackets. However, the next phase was to test existing models which caused major challenges as they were found to be way out.

An even bigger challenge was not so much carrying out modifications on the production lines in order to make new cars (but old models) compliant and back to their previous readings, it was the time it was taking to wait for a re-test. The authorities hadn’t allowed for the massive increase in test facility requirements for not only cars that had previously been tested but the re-test requirements.

Cars that were tested under the old regime must be sold by the end of August so we’ve seen some extra discounts but we’ve also seen orders and production lines shut down whilst manufacturers have carried out modifications to their engines and exhaust systems in order to make their latest production compliant.

In an effort to reduce the burden the DfT has allowed 10% of the manufacturer sales or 2,000 vehicles that haven’t made it through the new emissions tests to be registered after 1st September,

However, this takes us to the next challenge. The Real Driving Emissions Tests (RDE). This compliments the WLTP tests and takes us a little further towards accurate emissions tests. The RDE tests require that standard cars be fitted with test equipment for testing on real roads in real conditions.

They check amongst other things low and high altitudes, year-round temperatures, additional vehicle payloads, up and downhill driving, urban, rural and motorway road driving. So it looks like we’ll be in for even more disruption as we move to the next ridiculous level.

The fact is that everyone drives differently which provides widely differing emissions and performance results. And that’s all before we Brexit. More pain for the industry and customers. By Graham Hill

In this next story, Mel Buchan bought a Mini ‘off page’ from an Arnold Clark garage in Inverness. He saw the brand new car advertised on their website, with all its equipment listed, paid a deposit and waited for the car to be built and delivered.

Mel works offshore so couldn’t be at home to sign for the car but was sent photos. Upon inspection, he noticed that the car didn’t have the multifunction steering wheel, as advertised. He complained and was told that the advert was wrong but if he wanted the upgraded steering wheel he would have to pay £425 for it.

By now my blood was boiling and not because I was standing by a radiator. But it gets worse. He actually agreed to pay the extra £425 for the steering wheel – because he wanted it! It was only after this that he realised that the car was advertised as having parking sensors and floor mats. Again these items were missing despite them being clearly shown in the advert.

The only option given by the dealer was to re-order the car with the ‘bits’ on and pay thousands of pounds more! This is when he contacted my dear friends at Auto Express. Following contact between Auto Express and Arnold Clark the extras were fitted – all free of charge, with an apology for the incorrect advert due to ‘human error’. Does no-one read the Consumer Rights Act?

It covers inaccurate advertising and the big no no – supplying goods – ‘NOT AS DESCRIBED’. Whilst Arnold Clark appear to pat themselves on the back for being so nice to the customer someone needs to slap them with a bill for the inconvenience caused to Mr Buchan for inaccurately advertising the car and then giving him the runaround. If there was ever a more straightforward case of providing goods – not as described – I haven’t seen it!

I always support the guys at Auto Express because they constantly fight battles on behalf of consumers but unfortunately they don’t quite get to the right result in the right way, they probably need me on their panel of experts to help them in these sorts of cases. By Graham Hill

If you are a regular reader of my posts you will know what section 75 of the Consumer Credit Act is and the way that it makes the finance company jointly and severally liable in the event that you have a ‘fit for purpose’, ‘miss-representation’ or any other breach of contract claim against the dealer.

The general perception is that first and foremost the dealer is responsible so you immediately take up the problem with the dealer which invariably gets you into a bit of a dispute. However, I am reading about more and more cases whereby the customer has immediately taken up the case with the finance company, which tends to take the side of the customer and roll over, somewhat quicker and easier than the dealer, leaving a very happy client and the finance company to battle out the recovery of any money they have spent from the dealer – not your problem.

In fact it is often the case that before making finance available to a dealer he must sign up to an agreement that simply says that in a dispute with a customer that the funder settles, the dealer is responsible to refund the cost. The agreement, in my opinion, shouldn’t be needed as it is covered off in sub-section 2 of section 75 of the act, as follows:

75 Liability of creditor for breaches by supplier.

(1)If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.

(2)Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under subsection (1), including costs reasonably incurred by him in defending proceedings instituted by the debtor.

The fact is that if you have taken out finance on a car, usually HP or PCP, and you feel that you have a claim against the dealer I would suggest that you challenge the finance company and if they ask you if you have already taken up the case with the dealer, point them in the direction of the Consumer Credit Act 1974, section 75.

As an aside I asked a lawyer friend of mine in the industry why the lender is more likely to roll over and he explained that if you took up the case against the dealer your recourse would be via the fairly wet fish Trading Standards but if you escalate a claim against a lender your recourse would be via the gritty Financial Ombudsman Service and if they investigate a claim they immediately charge £550 per claim investigation (in fact I believe they are allowed 25 claim investigations before they incur a charge). So there you have it. By Graham Hill