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The following article mentioned specifically fleet managers being responsible for offences that drivers are convicted for. But beware if you are a director, owner or partner of a company that either provides company cars or pays an allowance for employees to use their own cars on business (either a car allowance or mileage allowance) as the same rules apply to the person responsible.

Fleet decision-makers could face the same penalty points as their employees should they be convicted of a driving offence, the Licence Bureau is warning.

The supplier of driver licence validation services says it is witnessing an increasing number of these cases being recorded on its system.

Responsible parties can incur the same penalty points as the actual vehicle driver due to the often unknown and much misunderstood ‘cause or permit to drive’ legislation.

Licence Bureau says that it means even though the initial offence was committed by a third party, it was ultimately the fleet manager’s responsibility.

Steve Pinchen, sales director of Licence Bureau, explained: “This much unknown rule has some very serious implications indeed for individuals and businesses alike.

“Those responsible for business fleets – of any scale – really do need to do their homework and ensure that they have all bases covered when it comes to compliance. Not only that, but there is a cultural aspect here too where everyone must be attuned to minimising road safety risk.”

According to the Road Traffic Act 1988/1991, ownership of a vehicle involved in an offence is irrelevant. This therefore implicates both owned business fleet and grey fleet operators.

The Act also cites that causing or permitting driving otherwise than in accordance with a licence can incur three to six points with fine up to £1,000.

The points remain for four years on licence from date of offence. The ‘person responsible for the fleet’ can have the points added to their own personal driving licence.

At present, the majority of these ‘dual penalty recipient’ offences recorded on Licence Bureau’s system relate to ‘causing or permitting using a vehicle uninsured against third party risks’ – an offence which carries six to eight penalty points.

Pinchen said: “Beyond the actual penalty points there are the knock-on implications for elevated risk profiles within the business and what that might mean for insurance premiums; professional and personal impacts for fleet managers; as well as potential for reputational damage for the company.”

Other offences recorded on Licence Bureau’s system include ‘using a vehicle with defective tyres’ which carries three penalty points for each individual implicated, and ‘using a mobile phone while driving a motor vehicle’ which carries three to six penalty points.

The volume of motoring fines and penalties incurred by company car and van drivers increased by 3% in 2019, according to figures from Lex Autolease released earlier this year.  By Graham Hill thanks to Fleet News

Average used car values exceeded £8,000 for the third month in a row in August, with sold volumes continuing to rise, up by 3.9% over the month, reports BCA.

BCA sold record numbers of vehicles online in August. Daily online sales entries averaged more than 6,000 units, with a record number of 7,400 vehicles offered on Wednesday, August 19, the highest volume of vehicles ever offered by BCA online in one day.

BCA chief operating officer for UK Remarketing, Stuart Pearson, said it has seen “improving levels” of supply reaching the marketplace throughout the period of the pandemic with “well-matched demand” for stock from its buyer base.

“The marketplace is operating very efficiently and this is good news for all professional operators in the used vehicle sector.”

He added: “Anecdotally, many dealers are telling us that their stock churn has improved significantly, with many holding lower volumes of stock but still selling as many vehicles as they might have expected pre-Covid19.”

Used car challenges ahead

Indicata, however, suggests that the UK used market showed its first signs of cooling off in August, according to its latest used car report.

During August, it says that the UK was the only one out of 13 European countries to experience a year-on-year fall (-3.3%) with the sub-three-year sector down by 15.75%.

Volumes were also down by 50% in the sub 12-month sector caused by OEMs reducing their push on self-registrations and demonstrators as new car shortages continue following the Covid-19 pandemic lockdown. The six-nine-year age group was the only one to rise during August by 8.8%.

Hybrids and electric vehicle (EV) sales were up year-on-year by nearly 50%.

Meanwhile, market stock levels grew by 3% in August as used cars stuck in the wholesale supply chain have finally seen the light of day.

“The UK used car market saw an interesting blend of high prices, improving stock levels and a fall in demand year-on-year,” explained Jon Mitchell, Indicata’s group sales director.”  By Graham Hill thanks to Fleet News

Automotive companies from across the UK and EU are calling for an ambitious free trade deal, warning that ‘no deal’ will have a catastrophic impact on the industry.

If no deal is reached and ratified before December 31, World Trade Organisation (WTO) non-preferential rules, including a 10% tariff on cars and up to 22% on vans and trucks would apply.

Such tariffs – far higher than the small margins of most manufacturers – would almost certainly need to be passed on to consumers, making vehicles more expensive, reducing choice, and impacting demand. Furthermore, automotive suppliers and their products will be hit by tariffs, they say.

New calculations, published on Monday, September 14 by the Society of Motor Manufacturers and Traders (SMMT), suggest that a reduction in demand resulting from a 10% WTO tariff for cars and vans could reduce EU and UK factory output over the next five years by three million units.

That would equate to losses worth €52.8 billion (£48.7bn) to UK plants and €57.7bn (£53.2bn) to those based across the EU. Suppliers would also suffer from these changes, it says.

The lead organisations representing vehicle and parts makers across the EU, the European Automobile Manufacturers Association (ACEA) and the European Association of Automotive Suppliers (CLEPA), along with 21 national associations, including the SMMT, have joined forces to warn that this combined loss in trade value would seriously harm one of Europe’s most valuable assets.

Collectively, the EU27 and UK automotive sector is responsible for 20% of global motor vehicle production and spends some €60.8bn (£56bn) on innovation each year, making it Europe’s largest R&D investor.

The SMMT’s chief executive, Mike Hawes, said:  ”These figures paint a bleak picture of the devastation that would follow a ‘no deal’ Brexit.

“The shock of tariffs and other trade barriers would compound the damage already dealt by a global pandemic and recession, putting businesses and livelihoods at risk.

“Our industries are deeply integrated so we urge all parties to recognise the needs of this vital provider of jobs and economic prosperity, and pull out every single stop to secure an ambitious free trade deal now, before it is too late.”

The industry says that any deal should include zero tariffs and quotas, appropriate rules of origin for both internal combustion engine and alternatively fuelled vehicles, plus components and powertrains, and a framework to avoid regulatory divergence.  

Crucially, it says that businesses need detailed information about the agreed trading conditions they will face from January 1, 2021, to make preparations. This, combined with targeted support and an appropriate a phase-in period that allows for greater use of foreign materials for a limited period of time, will ensure businesses are able to cope with the end of the transition period.

Eric-Mark Huitema, ACEA director general, said: “The stakes are high for the EU auto industry – we absolutely must have an ambitious EU-UK trade agreement in place by January. Otherwise our sector – already reeling from the COVID crisis – will be hit hard by a double whammy.”  By Graham Hill thanks to Fleet News

Early terminations and contract extensions from fleets and company car drivers are being reported by leasing companies as job losses increase.

Over the past three months, the number of people claiming out-of-work benefits (job seekers allowance and low income benefits) has more than doubled, reaching 2.7 million in July, according to the Office for National Statistics (ONS).

The latest data also shows more than three million people were still furloughed as the Government scheme begins to wind down.

The ONS says that more than one-in-10 workers (12%) were, effectively, having their wages paid by the Government between late July and the middle of August, a 50% reduction on May’s figures.

Unsurprisingly, the highest number of furloughed staff were found in those companies yet to re-open – almost three-quarters of staff (71%) compared to 11% at those businesses back trading.

The scale of the downturn is unprecedented. The UK economy is now 17.2% smaller than it was in February 2020.

Furthermore, Quarter 2 2020 is now 22.1% below Quarter 4 2019, which is more than three times greater than the total fall during the next largest period of recession, which occurred during the global economic downturn of 2008 to 2009.

The Bank of England has warned that UK unemployment is expected to peak at 2.5 million by 2021, with more than a million jobs expected to be lost in the second half of this year.

It highlighted what it called the “considerable uncertainty” remaining about the prospects for employment after the furlough scheme finishes in October.

WINNERS AND LOSERS

Paul Hollick, chairman of the Association of Fleet Professionals (AFP), said: “Some companies have taken the bit between the teeth by introducing redundancies quickly, but they were already on shaky ground, with plans already in place.”

However, he explained there have been “winners and losers” as a result of the pandemic, with those in the hospitality and travel sector hit particularly hard, while anything that is digitised and can create online services and solutions is able to tap into growing demand.

The amount of money spent online increased by 61.9% in June when compared with February, ONS data suggests. This has resulted in an increase of £943.5 million in average weekly sales from £1.5 billion in February to a staggering £2.5bn in June.

Courier fleets have been among some of the biggest winners, with DPD announcing it was recruiting 6,000 new staff, including 3,500 drivers, in response to the unprecedented boom in online shopping.

The delivery firm is investing £200m this year to expand its next-day parcel capacity, including £100m on vehicles, £60m on 15 new regional depots (10 more than originally planned in 2020) and the remainder on technology.

The new jobs will include delivery and HGV drivers, warehouse staff, management positions and support staff, including mechanics.

CEO Dwain McDonald said the business was experiencing the “biggest boom in online retailing in the UK’s history”.

It is a similar story at APC, with 100 new roles available, all of which will be permanent positions, including drivers, warehouse operatives, customer services staff and IT.

The courier firm’s chief executive, Jonathan Smith, explained that the past five months have seen “unprecedented demand” for its delivery services.

For firms facing a more uncertain outlook, Hollick believes business owners and operators do not know what to do in terms of “rightsizing their business”.

He explained: “No one really understands the total impact yet, because everything is being propped up (by the Government), but I wouldn’t want to be an account manager at this time.

“The way that you operate with customers is going to fundamentally change post-Covid. I think it’s going to be a case of sitting in an office or at home to do an account review rather than face-to-face.”

EARLY TERMINATIONS

Account management and sales teams would, typically, be out on the road, potentially covering long distances to visit their customer base on a regular basis.

But lockdown has shifted customer meetings online and, with obvious productivity gains, returning to pre-pandemic working practices is not on the cards.

Volkswagen Financial Services Fleet reported it was seeing “no demand” from customers for a return to face-to-face meetings. Head of sales and marketing, Tom Brewer, said: “We’re seeing a desire to continue with remote meetings at the moment.

“In our experience, this approach doesn’t seem to have any detriment to the quality of the conversations or the effectiveness of the meetings. There are upsides for all parties – aside from minimising the risk to everyone’s health – in the productivity benefits for us and our customers; meetings tend to be shorter and there is no fuel cost and no time lost to travel.”

It is not planning a reduction in headcount, but elsewhere companies looking to tighten their belts are recognising that they can do more with less.

As a result, Hollick expects the traditional company car market will shrink due to the significant job losses already being seen and those yet to come as the furlough scheme ends.

Furthermore, he says other employees, who qualified for a car due to the amount of annual mileage they covered, face having the benefit removed due to now not hitting the required threshold.

Three-quarters (74.8%) of fleets told Fleet News in a recent survey that they expect greater use of video conferencing in the long term, while almost 61% expect to see average mileages fall. And more than a third (35.8%) said that they expect to be running fewer company cars in the future.

Alphabet has reported an increase in early terminations and reschedule requests in recent months, driven predominantly by individual and small-to-medium enterprise (SME)customers.

However, Gavin Davies, Alphabet’s general manager for customer relationship management and public sector, said: “We are seeing bulk early termination requests from some of our corporate fleets as well, but they are also utilising other options, such as putting new car orders on hold while they assess their individual situations and future fleet needs.

“This has been the case particularly in those industries that have been hit hardest by the lockdown or still have staff on furlough.”

He added: “As the furlough scheme has given an artificial stimulus to current demand, we do expect to see an increase in early terminations as the scheme comes to an end in October.”

Matthew Walters, head of consultancy and customer data services at LeasePlan UK, says contract extensions have increased by approximately 50% above average. “Many businesses are also increasingly interested in the efficiency savings gained by outsourcing their operations and fleet activity.”

Jon Lawes, managing director of Hitachi Capital Vehicle Solutions, told Fleet News that sales teams were particularly impacted by a lack of travel. “We’re seeing customers looking to reduce their contract mileage moving forward, meaning that policy benchmark mileages have reduced by approximately 10% across certain customers,” he said.

The greatest impact has been in the retail sector, with job losses resulting in company car numbers being cut.

“The headcount and vehicle allocation for retail store area managers has reduced as a result of companies streamlining their middle management to respond to the economic impact of the virus,” said Lawes.

Since March, Lex Autolease has granted payment holidays to more than 3,000 customers, from small fleets to those with thousands of vehicles.

Mileages have also been amended to encourage rental cost-savings and existing vehicles redistributed. As a result, Andy Barrell, head of business development at Lex Autolease, said: “We’re not seeing mass vehicle terminations across our customer base.

“Customers are naturally more inclined towards short-term agreements when there is ongoing uncertainty, so it’s no surprise we’ve seen an increase in demand for short-term daily rental, alongside our informal extension agreements – giving customers more time to assess future requirements.”

The total number of new cars registered to fleet and business so far this year is 45.3% down year-on-year, with 433,868 units registered in 2020, compared with 792,091 in the same period last year.

Historic HMRC data shows a declining pool of company cars, with 890,000 employees receiving the benefit in 2017/18, compared with 940,000 the previous year.

Officials blamed the dramatic decline on reporting issues leaving some vehicles unaccounted for, but the figures for 2018/19, in the coming weeks, are still expected to show a downward trend.

Hollick, however, is predicting leasing firms and carmakers could benefit from a renewed interest in salary sacrifice. He explained: “A few big fleets have already mentioned to me that they are relaunching salary sacrifice schemes to take advantage of the low rates for electric vehicles (EVs). But it’s going to be a fascinating market and I don’t think anybody will know the true impact until the start of next year.”

Hitachi Capital’s Lawes says employees are concerned about the long-term economic impact of Covid-19 and committing to a company car contract, with some perk schemes affected.

That being said, he also sees the renewed potential of salary sacrifice. He told Fleet News: “Now is a prime time to take a salary sacrifice EV with 0% BIK charges.”

Although Alphabet has seen an increasing demand to move to cash incentives in recent years, Davies also highlighted the “significant taxation benefits” for companies and drivers who choose to adopt ultra-low-emission vehicles (ULEVs).

“Alphabet has seen a huge uptake in EVs since the 0% BIK rates were introduced earlier this year,” he said.  By Graham Hill thanks to Fleet News

The Chancellor’s summer economic plan introduced a range of measures to help the UK economy recover from the impact of the coronavirus.

The plan, revealed to the House of Commons yesterday (Wednesday, July 8), to protect jobs, help younger workers and encourage spending with measures such as a temporary VAT cut, from 20% to 5%, for the hospitality sector and a restaurant voucher scheme.

However, help for the fleet industry and wider automotive sector, including a potential scrappage scheme, was not forthcoming.

Paul Hollick, chairman of fleet representative body the Association of Fleet Professionals (AFP), said: “The Chancellor’s announcement was all about carefully targeted help for various sectors that are felt to be among the most vulnerable and it is disappointing that none of this support has found its way into areas that are likely to benefit fleets.

“This especially applies to low-carbon transport initiatives but there could also have potentially been aid for dealers, manufacturers and even fleet service support companies, all of which are facing specific problems.

“Given the fast-moving economic and infection situation, we don’t think this is the last time we’ll see him making announcements of this type over the next few months and we remain hopeful that we will be included in future programmes, an argument we’ll be making as an organisation.”

The automotive sector had been hoping for a scrappage scheme, offering money off a new car purchase.

Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders (SMMT), welcomed the Chancellor’s plans to safeguard jobs and encourage consumer spending in some parts of the economy.

However, he said: “It’s bitterly disappointing the Chancellor has stopped short of supporting the restart of one of the UK’s most important employers and a driver of growth.

“The automotive sector has been particularly hard hit, with thousands of job losses already announced and many more at risk.

“Of Europe’s five biggest economies, Britain now stands alone in failing to provide any dedicated support for its automotive industry, a situation that will only deter future investment.

“We urgently need government to expand its strategy and introduce sector-specific measures for UK auto to support cash flow such as business rate holidays, tax cuts, and policies that provide broader support for consumer confidence and boost the big ticket spending that drives manufacturing. Until critical industries such as automotive recover, the UK economic recovery will be stuck in low gear.”

The Chancellor instead offered a ‘job retention bonus’ to encourage firms to retain furloughed staff. The one-off £1,000 payment will be made to employers for every furloughed employee retained to the end of January 2021.

It applies to workers earning over £520 per month, with the cost estimated at up to £9.4 billion.

There is a six-month VAT cut for restaurants, hotels and attractions, from 20% to 5% from July 15 to January 12, 2021.

Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered. Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected

The threshold for stamp duty on residential property in England and Northern Ireland will also rise from £125,000 to £500,000. It applies from July 8 until March 31, 2021.

Energy efficiency grants for homes have also been introduced.

In addition, a ‘Eat Out to Help Out’ scheme offers 50% discount for every diner, up to £10 a head, from Monday to Wednesday throughout August.

Support for young workers is to be delivered through the ‘Kickstart scheme’ – a £2bn fund to pay for six-month work placements for 16 to 24-year-olds on universal credit – and grants for training young people.

In terms of infrastructure, more is expected in the Budget, while the Prime Minister, Boris Johnson, has earmarked £100 million for 29 road projects.

Nick Molho, executive director of the Aldersgate Group, said: “Beyond the need to commit public investment to support shovel ready projects and early stage innovation trials, it is critical that the Government puts forward a comprehensive policy plan in the autumn to drive private sector investment towards the low carbon and environmentally resilient infrastructure needed to put the UK on track for its net zero and nature restoration targets.

“Clear policy commitments in areas such as energy efficiency, clean transport and industrial decarbonisation will be vital if the private sector is to do a lot of the heavy lifting to build a competitive, jobs rich, low carbon economy.” By Graham Hill thanks to Fleet News

Used car values for both petrol and diesel stayed strong in August, but used electric vehicles (EVs) and some hybrids continue to struggle, says Cap HPI.

For the third month in a row, values for EVs have reduced, it reports, with feedback from the market suggesting that EVs continue to look expensive compared to their internal combustion engine equivalents.

For the volume models, price pressure continues to be around the three-year-old EVs, which are coming back into the market, says Cap HPI.

Derren Martin, head of valuations UK at Cap HPI, explained: “2017 saw an increase of around 40% in EV new car registrations over the previous year, so it is no surprise that as more vehicles come back into the used market, values will be exposed to supply and demand dynamics.

“Some examples of models that have dropped in value at that age are the BMW i3, Kia Soul and Nissan Leaf.”

Some hybrids that have moved down in value at the three-year point are the Toyota Auris, Toyota Prius, Lexus LS and Mercedes-Benz S-Class. Some of this is due to a reduction in activity in the private hire industry, where demand for these vehicles has historically been strong.

Overall, pricing experts at Cap HPI say that the used car market remains strong in August, with values up by a minimal 0.2% at the three-year point, which equates to around £30 on average.

So far this year, there has only been one month where values dropped and that was during the run-up to lockdown in March.

On average, used car values when calculating the same models at the same age and mileage point as a year ago, are some 7% higher than they were in August 2019.

Martin said: “The used car retail market has remained robust throughout August, making it the third consecutive month since car showrooms reopened with remarkably strong consumer demand.#

“Looking at the retail advertised data received by Cap HPI, it is clear that across all mainstream sectors, prices have edged up slightly on average. This is unsurprising since trade prices have increased overall and consumer demand is so strong.

“If ever there was a time to increase asking prices and maintain margins, the last three months has been it. These small average increases have not adversely affected days-to-sell.”

Martin says that consumer demand is still being driven by people wanting to avoid public transport, buyers downgrading and savers looking to upgrade.

The SUV sector saw smaller models increase in price, while larger ones were under more pressure due to significant availability, meaning prices dropped slightly.

The trend was most acute at younger ages, and at six-months-old, larger SUVs have fallen by around £225 on average, whereas smaller examples have increased by around £150.

The Citroen C4 Cactus, Dacia Duster and Renault Captur have increased in value the most of these smaller models. There is generally a very different customer for these two sizes of SUV.

Martin concluded: “Since the unexpected upturn in June, particularly at older ages, Live values during July and August have stayed very stable, as we predicted.

“September will result in more part-exchanges and fleet returns hitting the market, as new car buyers opt for the 70-plate, but it is unlikely that volumes will be as high as in previous years.”

He continued: “The reduced volumes of cars would typically lead to strong prices. However, with the furlough scheme coming to a close and an economic downturn continuing, consumers are likely to become more prudent.

“The pent-up demand from inactivity during lockdown will come to an end, as will people buying to avoid public transport – that was always likely to be a short-term dynamic. Those upsizing due to grants or savings made during the last few months will also wane.

“In short, predictions are that the next few weeks will remain stable, as there is currently no weakness in the market. However, from the end of September and into October, prices are likely to come under more pressure. What is clear is that viewing valuations in real-time and keeping vigilant will become more important than ever.”  By Graham Hill thanks to Fleet News.

The Government is being warned a ‘no deal’ Brexit could impact vehicle costs and prove fatal to the wider UK automotive sector.

A recent Society of Motor Manufacturers and Traders (SMMT) survey showed one-in-three automotive employees was still on furlough at the end of July, with up to one-in-six jobs at risk.

The impact of the coronavirus crisis is being felt across the sector, but jobs could also be threatened by the prospect of a ‘bare bones’ or no-deal Brexit, says the UK automotive trade body.

If the EU and UK do not agree a deal by the end of the year, the UK will leave the EU’s single market and the customs union without any agreement on future access from January 1, 2021.

The SMMT wants a full, zero-tariff deal in place by the end of the transition period to give businesses on both sides the chance to prepare.

Chief executive Mike Hawes said: “Before Covid-19, we expected to produce 1.3 million vehicles this year; the pandemic means we’re already looking at scarcely 900,000.

“A ‘no deal’ Brexit would wreak further long-term damage on the sector. Tariffs would add cost, custom duties and complexity, which would disrupt supply.”

The SMMT suggests a ‘no deal’ scenario could see UK vehicle volumes falling below 850,000 by 2025 – the lowest level since 1953. This would mean a £40 billion cut in revenues, on top of the £33.5bn cost of Covid-19 production losses over the period for UK automotive.

“The industry cannot withstand the shock of a hard Brexit,” explained Hawes.

“Covid-19 has consumed every inch of capability and capacity. There is not the resource, the time nor the clarity to prepare.”

Almost all countries in the world are part of the World Trade Organisation (WTO) which regulates international trade. Should the UK leave the EU without a deal, its trade with the EU will be governed by WTO rules.

When joining the WTO, each country negotiates the maximum tariffs it can set on various types of goods. The tariff charged by the EU on imported cars is 10%.

Leaving without a deal would mean UK-built cars facing a 10% tariff cost and vice versa, says the SMMT’s annual UK Automotive Trade Report.

Tariffs would result in a price increase of almost £3,000 on the average UK exported car to the EU, a £2,000 price increase on UK vans exported to the EU and a price increase of £1,800 on cars and vans imported from the EU, if fully passed on to UK consumers.

The report adds that additional customs duties, costs and complexity would significantly disrupt sourcing of parts and components from the EU.

Executive director, business transformation at Ford of Britain, Graham Hoare, said the manufacturer had implemented measures to ensure product is available for fleets.

He explained: “We’ve brought a lot of cars into the UK and have maintained that availability. That’s really important so we don’t have disruption to our supply chains as the change happens.”

But he warned: “A Free Trade Agreement is necessary for the viability of our business. If you think about all the other changes we’re embarking upon… another burden just makes the activities we’re performing in the UK a little less viable.”

JUST-IN TIME

Frictionless trade within the EU has been critical for enabling the UK car industry to develop supply chains that cross EU borders several times.

A separate report, produced by The UK in a Changing Europe on Manufacturing and Brexit, highlights how supply chains have to operate with supreme efficiency, and parts have to be delivered ‘just-in-time’ throughout the day.

As an example, 350 trucks arrive from the EU every day at Honda’s plant in Swindon, bringing in about two million parts. Components arrive from five-24 hours after ordering. The plant is scheduled to close a year from now.

Meanwhile, a typical driveline system produced by GKN, the British-based supplier, incorporates specialist forged parts from the UK, Spain, Italy, France and Germany.

These are assembled at GKN Driveline’s factory in Birmingham and supplied to automotive assemblers in the UK and EU.

The components, assembled drivelines and the final assembled car could cross the English Channel several times, says the report.

It is a similar story for BMW, which assembles engines at its Hams Hall engine-assembly plant near Birmingham.

Engine blocks come from France and are processed at the plant. They may go to Germany for further work before being assembled.

The engine may go into a Mini assembled in Oxford or the Netherlands, or into a BMW assembled in Germany.

“The final car could be sold anywhere in Europe or globally,” the report says. “This close integration and the need for minimal trade friction becomes even more important as most UK car producers operate on very low profit margins (around £450 on a £15,000 car).”

BREXIT TALKS

After a meeting between Prime Minister Boris Johnson and the EU Commission president Ursula von der Leyen last month, both agreed new momentum was needed in negotiations.

Official talks resumed at the start of this month, but ended with the EU’s chief negotiator, Michel Barnier, saying that “regardless of the outcome” there would be “inevitable changes” from January 1, 2021. The next round of negotiations began last week, with no apparent progress made.

The commission has also told member states and businesses to revisit plans for a ‘no deal’ Brexit.

In a press briefing, prior to the SMMT’s annual International Automotive Summit, Hawes insisted: “We must secure a comprehensive Free Trade Agreement that maintains tariff- and quota-free trade. With such a deal, a strong recovery is possible.”

The UK in a Changing Europe report says the potential danger is that carmakers may simply decide that production in the UK is no longer profitable and shift their assembly plants to the EU.

Many manufacturers with plants in the UK also have plants in the EU to which they could move production. Moreover, many of these plants have spare capacity.

“Such relocations usually happen when new vehicle models are introduced, and the decisions about sites are normally taken at least two years in advance of planned production starts,” it says.

‘MULTIPLE CHALLENGES’

Key companies in the UK automotive sector, that account for the bulk of UK automotive production – Nissan, Jaguar Land Rover (JLR), and Groupe PSA (Vauxhall’s owner) – have all planned new models in the next couple of years.

“There is a real danger they will decide to produce them in the EU, not the UK,” says the report. “This would have a knock-on effect on other industries in the UK.”

UK steel, for example, despite not being subject to tariffs itself, would suffer because the car industry would contract, reducing demand for steel.

“Manufacturing matters,” said Professor David Bailey, senior fellow of UK in a Changing Europe.

“Much of the sector has already taken a hit through the Covid-19 pandemic and Brexit risks further disruption for manufacturers which they are keen to minimise.

“A no-trade deal is seen as the worst-case scenario for sectors like automotive given the impact of tariffs. But even a minimal Free Trade Agreement could bring disruption for manufacturers, for example via its impact on supply chains and in terms of regulatory divergence. Whatever the form of Brexit at the end of the transition period, manufacturing faces multiple challenges.” By Graham Hill Thanks To Fleet News

We are now into the blackberry season and it would seem that birds love blackberries if my white car is anything to go by! And in these days of water-based car paint, cars are even more vulnerable to this acidic poo than ever before.

At best it makes the car look unsightly at worst, even if you have removed the droppings, the car can remain stained to the point where a lease car could be assessed to be seriously damaged when returned at the end of contract with the leasing company charging for a respray of affected panels. In one case that I reviewed the car needed a complete respray so make sure that you read this advice AND ACT IMMEDIATELY.

Here is the advice from Car Buyer:

We’ve all spent ages cleaning our car to a lovely mirror finish only to have our hard work ruined by the unsightly splatter of bird droppings. As well as being unpleasant and annoying, bird mess can actually damage paintwork, with potential repair bills in the hundreds or even thousands of pounds in the worst cases.

Time is of the essence, because the longer droppings sit on the paintwork, the more chance they have of causing costly problems. But why does bird mess damage paintwork? And what’s the best way to remove it safely?

How can bird droppings damage a car?

When bird droppings are removed from paintwork, they can leave a dull, cloudy mark, and even a visible ripple in the paint’s surface in the worst-case scenario. It’s also possible to make matters worse by scratching the paintwork in the removal process, either by being too aggressive or using the wrong tool.

For many years, the acidity of bird droppings has been blamed for the ‘etching’ effect they can have on paintwork. Recent research carried out by car detailing specialist Autoglym, however, has come up with another reason.

• Carbuyer’s best car cleaning tips and products

In its testing, it was found that as the top layer of paint lacquer warms during the day, it softens and expands, while bird droppings instead dry and become hard. Later on, when the lacquer cools and contracts, it can mould to the texture of the hardened bird mess, leaving a troublesome impression on the surface.

While the effect might be fairly slight, only a small imperfection is needed to create a visible dull patch that stands out against the shiny paint next to it.

How to remove bird mess safely

As we’ve mentioned, speed of removal is the most important factor in preventing damage, and according to Autoglym’s theory, this is especially important on sunny or hot days when the lacquer is at its softest. If you drive your car every day, you’ll have a good chance of spotting any offending droppings quickly and taking swift action.

If you use your car less regularly but it’s still parked outside, it’s worth having a quick look over it on a daily basis. For vehicles left outdoors for longer periods, a car cover is the most sensible and surefire solution. It can also be worth trying to avoid parking under trees, street lights and the eaves of buildings if your car seems to attract bird mess.

The key to easy and safe removal is to use water to ensure the droppings are soft. This is most easily achieved by placing a damp cloth or car cleaning wipe over the offending area and leaving it in place for a few minutes. Once you’ve done this, you should find it comes away from the surface easily.

Always avoid pressing hard, or using a rubbing or scraping motion to dislodge the droppings; if not all of it is removed first time, simply place another damp cloth or cleaning wipe over the spot again and repeat this process until everything has gone.

It’s advisable to wear disposable gloves when tackling this job and, of course, to wash your hands thoroughly afterwards.

What if my car is already damaged?

If the paintwork already has dull spots from bird mess, you can usually deal with them yourself with a little time and attention. More extreme cases may require the help of a car detailing company or paint restoration expert.

If you want to try to correct the paint at home, the first step is to wash the car to ensure it’s clean. Once it’s dry, apply a lightly abrasive car polish to the affected area, following the manufacturer’s instructions. This should gently remove the damaged top layer of paintwork, exposing the fresh paint below for a better finish.

Once it’s polished, ensure you cover the panel with a wax or sealant to protect it from the elements. If the condition of the paint is very poor, an expert will be able to assess the damage and use the correct products along with tools such as orbital polishers to get a satisfactory result.

WD40

I also came across this bit of advice but take care and follow instructions as you don’t want to make matters worse. According to WD-40, its magic-in-a-can spray has 259 automotive uses – and cleaning off dry bird poop from car paint is one of them. To remove bird droppings from your vehicle, spritz a little WD-40 on the area, let it sit for 60 seconds, then rinse or wipe away with a clean, soft cloth.

Final Warning & Advice

You should check your car’s paint warranty and make sure that you don’t do anything that could invalidate the warranty. And if you find that your car is badly damaged and could need a complete respray check to see if you are covered by your insurance especially if you have no claims discount protection. By Graham Hill thanks to Car Buyer

Before providing the latest report I must first warn those who are thinking of joining one of the many class actions against Daimler (Mercedes Benz) over their emissions cheat systems. Read the terms of the class action and make sure that you are not committing to any of the costs should the action fail. I’ll be keeping an eye on things for you as I had 3 Mercedes during the period in question!

Legal claims against Mercedes-Benz for emissions ‘cheating’ in England and Wales have been strengthened following a £1.6 billion settlement in the USA.

London law firm Fox Williams is pursuing claims for Mercedes owners in England and Wales in collaboration with US law firm Hagens Berman, which achieved a payout of more than £560 million for US Mercedes owners.

Mercedes, however, claims the cars sold in America are different to those in the UK.

It is estimated by Fox Williams that up to 1.2 million potential claimants owning (or having owned) impacted vehicles in England and Wales are affected. This includes private owners and businesses, such as fleet operators and hire car companies.

According to Hagens Berman’s investigations, Mercedes used defeat device, similar to the one used by Volkswagen, on its BlueTEC diesel vehicles.

Affected models are alleged to include the A-Class, B-Class, C-Class, Citan, CLA, CLS, E-Class, GL-Class, GLA-Class, GLC-Class, GLE-Class, GLS, M-Class, S-Class, SLK, Sprinter, V-Class, and Vito, built between 2008 and 2018.

Andrew Hill, the Fox Williams partner who is leading the action, said: “Like many members of the general public, I have been shocked at the allegations of deception and fraud made against some of the world’s largest and most prestigious automotive manufacturers, including Mercedes-Benz.  We believe business and private owners in England and Wales will very likely have good claims for the damage caused to them from unwittingly owning or leasing dirty diesels.”

Three other law firms, PGMBM, Leigh Day and Slater and Gordon, are also investigating potential group claims against Mercedes-Benz over emissions.

A spokesperson for Mercedes-Benz Cars UK said: “With regard to the US settlement, the vehicles in question were produced exclusively for the North American market.  The emissions control system of US vehicles differs in comparison to vehicles in Europe both with respect to hardware components and configuration of the control software.  In addition the legal framework and the certification process in the US is different to that in Europe.

“We believe the claims brought forward by the UK law firms are without merit, and will vigorously defend against any group action.”

Daimler AG, the parent company of Mercedes-Benz, was fined more than £700m by German prosecutors in 2019 over the diesel emissions scandal.

It has filed objections against the German Federal Motor Transport Authority’s (KBA) recall orders regarding diesel exhaust emissions and these objection proceedings are ongoing.  By Graham Hill thanks to Fleet News

Fleet News has prepared the following report for companies and employees who use their own cars for company business including the obligations on both parties. If you use your own car for business you should read this report.

With the UK government currently discouraging people from using public transport, we’re set to see an increase in the number of cars on British roads.

As employees return to work it’s likely that they’ll choose to jump in their cars instead of on buses and trains.

However, organisations aren’t only responsible for the safety of their staff in the workplace, they also have a duty of care to their employees when driving at work, regardless of whether it’s using a company car, a hire car or their own car.

The Health and Safety at Work Act 1974 is very clear and requires employers to take appropriate steps to safeguard staff and members of the public.

Whilst some organisations are unsure of the guidelines when employees use their own vehicles to perform any job-related tasks – known as grey fleet drivers.

Businesses have the same duty of care to ensure all vehicles used for business purposes are safe and legal to be on the road.

Whether it’s travelling to a meeting or nipping to the bank, the legislation applies across the board.

This means that every employee needs a valid driving licence and that every vehicle needs to be properly taxed, with a valid MOT (if over three years old) and serviced regularly.

Additionally, businesses must also check the employee’s insurance to make sure it includes business use cover.

At the very minimum employees should have Class 1 business insurance that covers their journeys during working hours.

The Health and Safety Executive indicates that more than a quarter of all road traffic incidents may involve somebody who is driving as part of their work, so businesses need to take a proactive approach.

The cost of unsafe driving

Work-related driving that becomes unsafe or illegal can result in substantial legal, reputational and financial repercussions for businesses if driver and vehicle documents have not been checked and recorded.

If a driver, who fails to meet the minimum requirements is involved in an accident while working then the consequences are considerable.

In the event of an incident, an organisations practises come under scrutiny and any investigation which finds a poor or non-existent process of checking drivers is likely to expose a failure in duty of care.

This could result in sizeable fines as well as claims for compensation made by those who suffer injury or damage as a result of employer negligence.

It’s important to keep in mind that fines for conviction under the Corporate Manslaughter and Homicide Act 2007 are based on the size and turnover of the business.

Fines start at £300,000 and there is no maximum limit. In the worst cases, under the Corporate Manslaughter Act, employers, including senior managers and directors could find themselves facing prosecution and even prison sentences.

Regular licence checking should be part of a business’s overall risk assessment.

It’s important that a complete view of an employee’s driving history is carried out periodically through their employment and businesses are encouraged to keep the most up-to-date information available on all their drivers.

Failing to do so, means that businesses have no way of knowing whether employees have previously committed an offence since the last check.

Driving down risk 

It can be cumbersome and time consuming for employers to gather information about their employees’ personal vehicles.

But with a duty of care towards staff and financial penalties on the line, no employer wants to be in the dark about whether or not their grey fleet drivers have valid MOT, tax and insurance.

Having visibility over a vehicle’s road-worthiness and last service enables finance and HR departments to ensure that workplace journeys are carried out safely and legally.

If the driver and vehicle validation process can be combined with business expenses and claiming business mileage then all the better.

As part of our digital expense management solution from Selenity, we use their enhanced duty of care service.

This allows us to carry out automatic checks of driver and vehicle data using data sourced from the Driver and Vehicle Licensing Agency (DVLA) and the Driver Vehicle Standards Agency.

Currently, there isn’t a way for businesses themselves to automatically check insurance documents using the Motor Insurance Database (MID) managed by the Motor Insurers Bureau (MIB) – only police and insurance providers have access.

However, with the outsourced insurance validation service from Selenity, we ensure that all our employee’s claiming mileage upload their insurance documents so that they can be checked within our expenses system.

Not only does this remove the time-consuming process of checking individual drivers documents but as the checks are electronically carried out, we don’t need to store large amounts of physical documentation.

Businesses often fail to establish whether employees have the correct level of insurance cover.

But using digital expense management software with driver compliance functionality built in, means that unless employees have been checked and validated they won’t be able to claim business mileage expenses.

Finance departments who withhold the reimbursement of travel expenses to staff who aren’t correctly covered minimise their risk.

If an accident were to occur then it would be more likely the Health and Safety Executive (HSE) would see a strong case that duty of care has been carried out properly.

Putting the brakes on uncompliant drivers

The effective management of work-related road safety not only helps to reduce risk but also clearly demonstrates a commitment to safeguarding employees. 

By regularly checking the licences of employees, it’s possible to determine whether drivers remain appropriate to make work-related journeys.

In the long run this reduces the chance of facing financial penalties and the risk of being prosecuted under Corporate Manslaughter legislation.

Whether you have ten or a thousand drivers, a business’s duty of care obligations remains the same.

The process is an ongoing one and enlisting the help of a reputable third-party provider can help make validation more accurate and efficient for everyone involved.

Allowing organisations to remain compliant and confident they are correctly covered as well as enabling finance teams to focus on the day-to-day – without fear of unexpected penalties and safe in the knowledge that it’s being taken care of.  By Graham Hill thanks to Fleet News