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By David Bartlett, head of accident management, AA Business Services

The days of being guaranteed a courtesy car while your vehicle is being repaired are largely behind us.

The automotive market and landscape have changed and are continuing to evolve.

A myriad of factors has impacted the availability of courtesy vehicles, and the reality is that they’re now in limited supply, regardless of insurance agreements for their provision.

The current landscape

As a result of global factors including the Covid 19 pandemic and the war in Ukraine, hire car providers are facing pressures, like many areas of industry, that are impacting the availability of vehicles.

One of the main challenges they’re facing is rising costs and this can be largely attributed to resourcing and energy.

Labour market shortages have put upwards pressure on wages. Together with an increase in the National Living Wage of 9.7% and rising inflation, this has contributed to a perfect storm in the rising cost of resourcing.

The price of petrol and diesel has also reached record highs over previous months. This has hit rental companies hard, as every delivery and collection requires a runner car that incurs the cost of an additional driver and fuel.

Worldwide, there’s been an average increase of 47% in rental costs, so if rental is your contingency, these costs need to be factored into budgets.

Due to ongoing supply chain challenges, we’re still seeing a delay and shortage of new vehicles coming to market, pushing up the price of new and second-hand cars as well.

In the past few years new vehicle costs have risen over 20% and in some cases its over 40% for used vehicles.

It’s therefore simply not a viable option for most repairers to increase the number of courtesy vehicles, extend leases or replace those ageing or unfit, leaving them with a smaller fleet.

Coupled with this, order delays for a number of parts are extensive and unpredictable, which is out of repairers’ hands, and in some cases, this results in fleets of courtesy cars being tied up with drivers for longer. And this is a worldwide problem.

So stark is this issue in certain areas that there have been recent reports of some insurers and fleets writing off historically repairable cars to save themselves the rising costs of providing courtesy cars. This is more of an issue or policies that include a credit-hire for drivers.

A further and developing challenge placing demands on bodyshops is insurance policies for electric vehicle (EV) drivers which stipulate the provision of replacement EV courtesy cars.

As it stands, EVs aren’t an affordable option for most repairers and, even if they were, the majority don’t yet have the fast-charging infrastructure to turn these vehicles around quick enough, let alone navigate the increased energy costs and minimal uplift in rates for such requests.

Alongside – and as a consequence of – this changing landscape, we’re seeing an ageing profile in short-term fleet operations.

To effectively manage this, and navigate the current supply challenges, requires ongoing innovation to find the best solutions to minimise fleet costs and downtime and this is what we’re doing at the AA in close partnership with our suppliers and partners.

Taking control

So, what does this mean for fleets? With so many variables at play, fleets and drivers need to focus on what they can control.

One ball firmly in their court is their accident management programme.

So, where should you start? Firstly, turn attention to your insured events experience.

In the event of an accident that renders a vehicle off the road, regardless of where the fault is attributable, how’s your business going to be impacted?

This is a question that every organisation needs to know the answer to, and it will vary widely depending on the nature of the work carried out by employees – for example, are your employees desk based, or do they need to drive to carry out their role?

To get an accurate picture, it’s also important to undertake analysis of your accident management history.

This should include your average vehicle downtime and the cost of this to your business. Knowledge is power and it’s only through understanding how your business is affected by vehicles being off road that you can best plan to mitigate the impact on business.

Once you have the information you need, take action.

What this looks like will depend on the results of your analysis and shape of your organisation.

It may be that if your fleet is predominantly used for commuting and visiting customers, you need to update your company car policy to explain to drivers what they can do in the event of an accident without a courtesy car. This can include working from home, for example.

If your business relies on vehicles to operate, such as carry-out deliveries, then the solution will be more complex.

You can look at temporary options to implement such as vehicle rotation and amending shift patterns to maximise the use of all vehicles in operation at any one time.

We’re seeing the benefit of contingency planning for this purpose first-hand as many businesses now opt for an end-to-end accident management solution.

This sees the various – often very separate – aspects of incident management strategically linked into a single service.

It means working in close partnership with customers to keep their vehicles on the road, helping them to navigate the fast-changing landscape, while remaining safe and compliant at all times.

Looking ahead, it’s important we all acknowledge that the landscape has changed and we’re likely to see a further decline in the availability of courtesy cars. So, it’s important to adjust fleet expectations and be proactive.

Any organisation that operates a business-critical fleet needs to take action by adopting a robust end-to-end accident management solution.

This way they can maximise business productivity by minimising the risk of disruption in the event of an accident.  By Graham Hill thanks to Fleet News

Toyota is developing new battery technology that will give future electric vehicles (EVs) a range of up to 932 miles (1,500km).

Unveiling its future EV plans, the manufacturer says that it will introduce a step-change in battery performance over the next five years. 

From 2026, it will introduce new battery technology offering a range of 1,000km (621 miles), by increasing the energy density of the battery, weight reduction and improving vehicle aerodynamics.

At the same time, it aims to cut costs by 20% compared to the current bZ4X and achieving a quick charge time of 20 minutes or less from 10-80% power.

Toyota is also developing low-cost batteries that it says will contribute to the spread and expansion of battery electric vehicles (BEVs).

The bipolar structure battery, which has been used in the Aqua and Crown hybrid vehicles, is now being applied to BEVs.

The battery uses lithium iron phosphate (LFP) and is expected to be available from 2026-2027.

The low-cost battery will offer a 20% increase on range compared to the current bZ4X (up to around 375 miles), but come with a 40% reduction in cost, and recharging in 30 minutes or less (10-80% charge).

However, it is the development of all-solid-state batteries which could deliver a step-change in how far the manufacturer’s car will trave on a single charge in the future.

Having discovered a technological breakthrough that overcomes the longstanding challenge of battery durability, the company says it is reviewing its introduction to conventional hybrid electric vehicles (HEVs) and accelerating development as a battery for BEVs.

It is currently developing a method for mass production, striving for commercialisation in 2027-2028.

The technology, it says, will deliver a 20% improvement in range compared to the 1,000km range promised from 2026, with an even quicker charge time of 10 minutes or less (10-80% charge). That would give Toyota a BEV range of up to 1,200km (745 miles).

A higher-level specification battery being developed at the same time, however, is aiming for a 50% uplift, delivering a range of up to 1,500km (932 miles).

“What we want to achieve is to change the future with BEVs,” Takero Kato, president of new Toyota EV unit BEV Factory, said in a video posted on the manufacturer’s YouTube channel today (Tuesday, June 13).

“We will launch the next-generation battery EVs globally and as a full line-up on the market from 2026,” Kato said.

Today’s announcement comes after Toyota revealed in April that it was continuing its investment in plug-in hybrid (PHEV) technology, with the aim to launch models that cover more than 120 miles on a single charge.

At the time, the carmaker said it planned to position its future PHEV models as the “practical BEV”, sitting alongside a strengthened line-up of electric and hybrid cars.

In April, the automaker sold 8,584 EVs worldwide, including under its Lexus brand, accounting for more than 1% of its global sales in a single month for the first time. By Graham Hill thanks to Fleet News

A UK-based battery company has developed an electric vehicle (EV) capable of being charged in under 6 mins with existing charging infrastructure.

Nyobolt has taken a systems level approach to develop batteries capable of charging in minutes by pioneering new materials, cell designs, efficient software control and power electronics.

Its vision is to match today’s convenience of refuelling at the pumps, but it says that has been impossible to achieve in today’s EVs, because batteries are big, heavy and costly, with vehicles often weighing over two tonnes.

The requirement for heavy EV battery packs places a huge strain on the supply of battery raw materials.

The Nyobolt EV weighs closer to one tonne than two, uses a 35kWh battery and is capable of fully charging with up to 250km range in under 6 mins with existing charging infrastructure, without sacrificing battery life.

Nyobolt has tested its batteries for more than 2,000 fast charge cycles without significant performance loss.

Sai Shivareddy, CEO at Nyobolt, said: “Unlocking the challenges faced by electric vehicle designers has been key to the development of our breakthrough fast-charging batteries.

“Previously, enabling a light weight fast-charging vehicle was not possible without compromising its lifetime and so people have been relying on costly and large battery packs in the vehicle.

“With our unique technology we have achieved a six-minute charge car and developed smaller battery packs that can deliver more power and charge in less time.

“Our partnership with Callum shows how adoption of system-level technology innovations can transform the future of electric vehicles and increase accessibility of EVs, including to the 40% of UK households who can’t charge their vehicle at home overnight.”

Nyobolt decided to work with designer Julian Thomson, who was inspired by his design of the Lotus Elise.

Thomson invited design and engineering business Callum to collaborate in the development of the vehicle.

The resulting EV, says Nyobolt, showcases how its battery technology can be readily adopted across the automotive industry.   

With Callum and Nyobolt working hand-in-hand, a system-level approach has addressed each element from materials, to cell, to pack, to drivetrain, to whole vehicle, it said.

David Fairbairn, managing director at Callum, added: “Nyobolt’s pioneering battery technology has provided us with a unique and inspiring opportunity to support in the design and execution of a vehicle set to mark the way forward for EV technology.

“The collaborative creativity, engineering capabilities and steadfast efforts of Nyobolt, Julian Thomson and Callum have resulted in an EV that is not only exciting technically for the industry, but something that is beautiful to behold, too.”

Nyobolt says its ready-to-deploy technology will go into production in early 2024. By Graham Hill thanks to Fleet News

Electric vehicle (EV) battery manufacturers will have to report the product’s entire carbon footprint, from mining to production to recycling, as early as July 2024.

The data will then be used to set a maximum CO2 limit for batteries to apply from the end of 2027.

The new law, passed by the European Parliament, will only apply to EV battery makers selling to member states, not in the UK. It is unclear whether the UK Government will take a similar approach.

Alex Keynes, clean vehicles manager at green group Transport & Environment (T&E), said: “Batteries are already far more sustainable than burning oil in our cars, but they will soon have to be even better.

“New rules on carbon footprint, recycling and due diligence checks, provided they are properly implemented, will mean batteries sold in Europe will set the standard for the rest of the world.

“The next step is to put in place measures to bring to market smaller and affordable electric vehicles that use even less materials.”

Companies selling batteries in the EU will also have to comply with rules designed to prevent environmental, human rights and labour abuses in their supply chains.

The law will require battery-makers to identify, prevent and address a wide range of issues, spanning water pollution to community rights.

New EU recycling targets mean that from 2027, battery-makers will need to recover 90% of nickel and cobalt used, rising to 95% in 2031.

They would also need to recover 50% of lithium used in 2027, rising to 80% in 2031.  By Graham Hill thanks to Fleet News

Transport for London (TfL) collected £73.3 million in fines from drivers using London’s ultra-low emission zone (ULEZ), last year.

Drivers who fail to pay the £12.50 charge receive a penalty charge notice (PCN) of £180, although this figure is reduced to £90 if paid within a fortnight.

The figures, obtained through a freedom of information request, show that the ULEZ generated more than £224m in 2022 – an average of £18.7m per month – with £151.3m coming through daily charges. 

The ULEZ was introduced in April 2019 to cover central London before being expanded to the North/South Circular boundaries in October 2021.

It will be expanded across the whole of the capital from August 29.

Earlier this year, TfL estimated that the expansion of London’s ULEZ would be worth up to £300m in its first year. However, it said that income from the pollution-cutting scheme is expected to be “negligible” by 2027.

TfL’s group finance director, Patrick Doig, told the London Assembly, its “central estimate” is for the ULEZ to generate an additional £200m in the 12 months after it is expanded to the Greater London boundary, from August 29 this year, with a “50% plus or minus” range from £100m to £300m.

TfL says that 95% of vehicles in the zone are expected to be compliant when the expanded ULEZ goes live, avoiding the £12.50-a-day charge, and compliance rates will increase incrementally each year thereafter.

To help fleets comply, a £110 million scrappage scheme has been opened up to more firms ahead of the ULEZ expansion.

From the end of July, businesses registered in London with fewer than 50 employees will be able to apply.

Currently, charities, sole traders and businesses with 10 or fewer employees registered in London can apply to scrap a van (£5,000 grant) or a minibus (£7,000 grant), retrofit certain vans or minibuses (£5,000 grant) or scrap and replace a van or minibus with a fully electric vehicle (EV) (£7,500 or £9,500 grant respectively).

As well as allowing bigger operators to apply, charities operating in London will also be able to scrap or retrofit up to three vans or minibuses instead of just one.

Furthermore, there will be a new grace period for sole traders, microbusinesses, small businesses, and registered charities who have ordered brand-new compliant vehicles, or if they have booked an approved retrofit appointment for a non-compliant light van or minibus.  By Graham Hill thanks to Fleet News

The price of diesel has fallen after the Competition and Markets Authority (CMA) expressed concern of weakening competition in the retail fuel market, new RAC analysis shows.

It suggests that over the two weeks since May 15, when the CMA issued its road fuel market study update saying average supermarket margins in 2022 had increased compared to 2019, the average price of a litre of diesel at supermarkets fell by 7.44p, from 151.02p to 143.58p.

The gap between the average prices of a litre of petrol and diesel at supermarkets was 9p on May 15, but by Monday (May 29) this had shrunk to 2.5p.

The RAC believes, however, that supermarket diesel prices should still be around 6p a litre lower than they are today (137p) if a fair price was being charged.

By comparison, the UK-wide average price of diesel is currently 147.44p per litre with unleaded at 143.14p – a gap of more than 4p.

Throughout April, however, the gap at the pumps averaged 14p a litre despite wholesale diesel being 4p cheaper than petrol.

The average price of a litre of unleaded at a supermarket is currently 140.64p while diesel is 2.5p more expensive at 143.14p.

RAC fuel spokesman Simon Williams said: “Since the Competition and Markets Authority’s made its announcement about supermarkets increasing their margins compared to three years ago and said they will be formally interviewing bosses, it appears the rate at which the price of diesel has fallen has sped up.

“Significant cuts to the price of supermarket diesel were long overdue as its wholesale price has been below petrol’s since the end of March. As a result average retailer margin on diesel had reached 22p a litre – more than three times the long-term average of 7p.

“Even today, with 27p having come off the average price of supermarket diesel since the start of the year, diesel drivers are continuing to get a poor deal.

“For two straight months it has cost retailers less to buy diesel on the wholesale market than it has petrol, yet they continue to charge more for diesel at the pumps.”

While wholesale price changes take some time to filter through to smaller forecourts which only buy new stock every few weeks, Williams says he cannot see any reason why the supermarkets still have not cut their prices to fairer levels as they buy much more frequently.

“We look forward to the results of the CMA’s review within the next four weeks and hope it heralds an end to poor value at the pumps,” he added.

“We also hope it means the biggest retailers start charging fair prices at all of their sites across the country, and not just at those where they’re competing directly with other forecourts locally.

“It can’t be right that the same brand can sell fuel for so much more in one part of the country than another – this sort of postcode lottery is wholly unfair to drivers and completely unjustifiable.”  By Graham Hill thanks to Fleet News

Fetch, a new on-demand car-hailing service using remote-controlled driverless vehicles, has been launched by Imperium Drive.

The service, which has undergone 18 months of testing, is first launching in Milton Keynes before being rolled out across the country.

It will be able to connect with other urban areas and key transport interchanges, such as airports.

Customers can hire a car through the Fetch app, stating when they need it and for how long.

An electric vehicle (EV), which is remotely controlled by an operator, is then delivered to them. The customer then drives the car themselves to their destination and when the rental period is up, the remote vehicle operator takes over and pilots the car back to base or to the next user.

Koosha Kaveh, the chief executive of Imperium Drive, said: “It’s driverless but not autonomous – yet.

“There’s still a human involved, but they’re sitting in a control centre piloting the vehicle in the same way you would a drone.

“When fully autonomous, we think this system has the potential to replace private car ownership in the UK. Why pay all the costs of having a car on your drive when you can just pay for one to arrive when you need it.

“For short trips, the service offers the same convenience as a ride-hailing or taxi service, but with the ability to cover greater distances at less than half the cost of services like Uber or Bolt.”

There are currently four cars in the Imperium Drive fleet, operating within a four-mile radius of the Milton Keynes city centre hub.

Further regional hubs are planned to enable intercity travel and airport transfers.

To ensure the safety of occupants and other road users, the cars have multiple cameras attached to them, giving the operator a 360-degree view, and the operating system uses computer image algorithms to detect anything near the car.

RAC road safety spokesperson Simon Williams said: “While this scheme has been tested very successfully over an 18-month period, we worry that the experience of remotely driving a vehicle distances the driver from the potential road safety consequences in a video game-like manner.

“Although the remote driver has a reasonable view in front and around them by not being present in the vehicle they are – like it or not – somewhat disconnected from the reality of actually being behind the wheel.

“There’s also a risk they could be distracted by something in the room where they are located. We also fear there could be serious consequences when this scheme is rolled out more widely and if the delivery distances were to be lengthened to take in faster roads.”

Imperium Drive’s leadership team has a combined 45 years of experience in telecoms, robotics, autonomous vehicles and advanced mobility, with more than 60 patents and over 500 scientific citations.

To watch the demonstration on YouTube click HERE

By Graham Hill thanks to Fleet News

Smart off-peak energy tariffs have the potential to save electric vehicle (EV) drivers hundreds of pounds, new analysis of more than 100,000 drivers suggests.

The research, conducted by EV charging app Bonnet, concludes that EV drivers can save up to £260 each year by using public chargers overnight.

Looking at where and how EV drivers refuel their electric cars, it found those taking advantage of smart off-peak energy tariffs have already saved hundreds of pounds this year.

Off-peak tariffs are currently offered in the UK by several major charging networks, such as GeniePoint and Chargy, and are especially helpful for the estimated third of drivers who are unable to install a charger at home.

The smart tariffs allow drivers to take advantage of cheaper rates overnight – though the exact hours and days vary by network.

Patrick Reich, CEO and co-founder of Bonnet, said: “This data will be welcome news for those looking to go electric but worried about not having access to a home charger.

“With the rollout of these innovative smart tariffs at public chargers, drivers are able to save hundreds of pounds annually – even with historically high electricity costs.”

Bonnet analysed recharging sessions undertaken through its app to create an average cost of those using peak tariffs, off-peak tariffs, and those combining off-peak with Bonnet’s Boost subscription – which further discounts driver costs by up to 15%.

EV drivers who used both off-peak tariffs and Bonnet’s Boost spent an average of £11.13 for a full charge – meanwhile those who did not take advantage of off-peak rates, and weren’t boost subscribers, spent a £16.19 on average for a full charge – an increase of almost 50% (46.5%).

Assuming normal use, over the course of a year, Bonnet’s data shows that EV drivers who take advantage of Bonnet’s Boost packages and off-peak tariffs can save £260 annually.

Reich said: “To make it easier for people to understand which chargers offer these tariffs, at Bonnet we’ve recently updated our app so drivers can easily find chargers with cheaper overnight rates.

“We want to make it as easy as possible for people to switch to electric vehicles and help protect our planet, and so will continue to ensure EV drivers have all the information they need to reduce their costs.”

Total off-peak savings analysis based on analysis of driver charging habits

Source: Bonnett – data analysed by Bonnet during May 2023 of more than 100,000 drivers.

By Graham Hill thanks to Fleet News

A lack of skills to work on advanced driver assistance systems (ADAS) is putting road users at risk, according to a new report from the Institute of the Motor Industry (IMI).

It suggests that there are currently only 3,000 ADAS-certified technicians, yet 106,000 will be needed by 2030.   

Steve Nash, CEO of the IMI, said: “Drivers are becoming accustomed to and reliant upon autonomous features on their vehicles.

“Any failure could be catastrophic. For example, if a driver took a second too long to notice that their adaptive cruise control had failed on a motorway, they could easily suffer a serious high-speed collision with the vehicle in front.

“It would be a similar story if lane keeping assist, or the lane departure warning failed, and a driver drifted into the neighbouring lane in front of a faster vehicle.

“The risks could be even higher for more advanced features such as autosteer and automated lane change.”

It is the first time that the scale of level 2 autonomy in the UK car parc and the skills required to maintain it has been analysed.

It found that 5% of the UK car parc features level 2 autonomy (where the vehicle can control acceleration, braking, and steering), but there are currently only 3,000 technicians with IMI TechSafe qualifications to work on vehicles featuring ADAS.

In 2023 alone, the IMI estimates a shortfall of 6,000 technicians to support the UK car parc. By 2030, 44% of cars on UK roads will include ADAS, requiring a total of 106,000 qualified technicians

Based on current qualification and training trends, the IMI estimates that there will be a shortfall of 51,000 qualified technicians in just seven years.

Nash continued: “It is no exaggeration to say that it is a matter of life and death that these technologically advanced vehicles are maintained only by fully qualified technicians.

“The skills need is immediate with such a significant proportion of UK cars already using level 2 autonomy. It is also critical to recognise the serious economic impact of the skills gap.

“A lack of qualified workforce means delays in vehicle repairs, undermining UK mobility.”

While the IMI’s report highlights a big skills gap across the whole automotive aftermarket, there are several subsectors that are more advanced.

In particular, the accident repair, body and glazing sectors have a greater proportion of their workforce qualified to work with ADAS because of the critical role they play in repairing vehicles after accidents.

But there is still a gap in qualified technicians to service the current car parc, says the IMI.

This sector, which comprises a large number of independent repair shops, as well as dealership networks and large, multi-site repair organisations have invested in the latest tools and technologies as well as training for their workforce in order to remain competitive.

The IMI estimates that there are currently 1,800 technicians ADAS qualified in these subsectors with a requirement for 25,000 technicians ADAS qualified by 2030.

Nash said: “Autonomous vehicles rely on complex systems, including advanced electronics, sensors and software.

“Without the necessary skills to diagnose and fix issues with autonomous systems, the safety and reliability of the vehicles cannot be guaranteed.

“Not only that, the increasing integration of autonomous technology in vehicles means that technicians need to have a deep understanding of how different systems interact and work together, requiring a commitment to continuing professional development to keep up with the latest advancements in the field.”  By Graham Hill thanks to Fleet News

Contract Hire or leasing as it’s generally known relies on two things for the really cheap rates. Firstly the fleet discounts that can be passed on to consumers through the rates and secondly a buoyant used vehicle market, The higher the resale value the lower the rate. So drops in the used car market are not good news.

An imbalance between supply and demand in the used electric vehicle (EV) market could push prices down by up to a further 10%.

That’s according to Dean Bowkett of Bowkett Consulting, who says that consumer interest in EVs remains minimal against a backdrop of rising supply.

Used EVs have now fallen by 21.2% over the first four months of 2023 (from January 1 to May 1), according to analysis by Indicata.

In fact, according to recent analysis by the AA, some used EVs, with less than 10,000 miles on the clock, can now be bought for half the price of a new electric car.

Bowkett told the latest Vehicle Remarketing Association (VRA) member meeting: “We could soon be in a situation where for mainstream cars that are available with both petrol and electric drivetrains, the latter is marginally cheaper.”

Rupert Pontin, vice chair at the VRA, says that the future of EVs in the used car market is very much a live debate within its organisation.

“Indeed, there are those who believe that supply and demand are now balanced and can point to rising values for some models that appear to be underpriced,” he said.

“However, others believe that further falls in value will happen, and given the swingeing reductions seen over the last year, there is an extreme degree of caution in the market.”

He added: “Fighting the forces of supply and demand is tremendously difficult, and vehicle values are very much a dynamic outcome of those factors.”

The meeting also heard from Alastair Cassels of MHA on the three key issues facing motor manufacturers during the immediate future – the forthcoming zero emissions vehicle (ZEV) mandate, distribution costs and competition from new entrants.

He says that the ZEV mandate could have huge implications for manufacturers selling cars in the UK, including some of the biggest mainstream names.

“It is possible that for those who don’t meet the mandate’s targets, fines of £15,000 per vehicle could be imposed, which is a dramatic figure,” explained Cassels.

“Carmakers who don’t have sufficient EV representation in their ranges will be in very difficult positions and may have to do everything from buy credits from other manufacturers to strangling supply of petrol and diesel vehicles to balance their sales.”

The VRA meeting was held at the premises of VRA members City Auction Group in Peterborough, and also featured Rob Severs of iVendi looking at the impact of the new Consumer Duty regulations on motor finance, while there was a panel discussion looking at data issues currently affecting the remarketing sector featuring Jonathan Hartley, sales and marketing director, Jepson; Jeremy Raggett, account director, Autotek21 and Mark Rose, managing director, Tracker.

Pontin concluded: “Our members are living through a time when our sector is perhaps seeing more change than at any point during their working lives and the VRA is playing a crucial role in helping businesses keep abreast of the latest developments, something that can be seen in our growing membership base.” By Graham Hill thanks to Fleet News