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Fleets are being urged to educate their drivers on new safety technology being fitted as standard on company cars to save lives and money. There should also be an onus on dealers to ensure that customers fully understand the equipment fitted in their new cars.

A range of advanced driving assistance systems (ADAS) devices were made compulsory on all new models in the EU last year and, as a result, are also being made part of UK specifications.

“These safety systems have the potential to be highly effective, but drivers need to understand how to incorporate them into their daily driving,” explained Ian Pearson, head of insured lease at Arval UK. 

“It’s worth considering the historical lessons that can be drawn from reversing sensors. These have now been standard fitment on most fleet cars for a long time and the technology is well-proven, but even where reversing cameras are operational, drivers still back into stationary objects every day and sometimes at speed.

“In fact, it may be the case that they have become over-reliant on listening for the beeps and don’t use their mirrors, which shows the importance of using the device properly.”

Pearson says the technology available to today’s company car drivers is not “fail-safe” but there to assist the driver – and that can only happen if more is done to make them aware of how to make the best of features, such as lane departure and driver fatigue warning systems.

“It’s not about the technology in isolation, but how it interacts with the person at the steering wheel,” he added.

There is limited data on which ADAS devices were proving most effective for fleets when it came to improving safety, but Pearson claims that in itself underlined the need for more information to be given to drivers.

“The real-world success of ADAS is something that is difficult to measure,” he said. “If a driver drifts out of lane on a motorway and the steering corrects them, how do you know whether a collision has been avoided?

“What is important is that all of these devices have a potential role to play and could save the lives of employees out on the road if they are taught to use them correctly.”

Educating drivers does not need to be complex. Most of it can be done through some form of e-learning that is reinforced through periodic reminders.

“Use of ADAS should also be incorporated into fleet manager reviews when an accident takes place,” Pearson continued.

“However, we do know from Arval Mobility Observatory research that the ADAS devices most valued by fleet managers are collision avoidance and automatic emergency braking systems. This makes sense as they represent the technology most likely to prevent full-on collisions.”

Getting the most out of ADAS devices is not just purely a safety issue but also important in terms of extracting the most value from their cost.

“While the technology is generally a standard fitment on new cars, it is being incorporated into the price, so businesses are already paying for this potential safety,” said Pearson. “Also, it increases the cost of repair when there is an accident.

“There is a strong argument that fleets are – whether consciously or not – making quite a big investment in this technology and so should work to maximise its benefit.” By Graham Hill thanks to Fleet News

Diesel drivers are paying around 17p per litre more for a litre of fuel than those with petrol vehicles, despite the wholesale cost being the same.

It means retailers are making almost three times the margin on every litre of diesel they sell, according to figures from RAC Fuel Watch.

The average price of petrol across the UK stands at 146.63p while diesel is 164.26p despite both fuels selling for around 114.5p on the wholesale market.

Since the start of March, RAC data shows the average weekly wholesale price of diesel has fallen 5p a litre while unleaded has remained the same (diesel – 119p to 114.5p; petrol 114.6p to 114.7p).

RAC fuel spokesman Simon Williams said: “The forecourt price disparity between petrol and diesel across the UK is absolutely shocking given their wholesale prices are now virtually identical. 

“For retailers to be taking a margin of nearly 20p a litre on average throughout March, compared to the long-term average of 7p, is devastating for every driver and business that relies on diesel.

“The price of a litre of diesel should have already come down to around 152p, and now the wholesale price is the same as petrol at 114p we really should soon be seeing forecourts displaying prices of 147p. Sadly, this seems unlikely given current retailer behaviour.”

The big four supermarkets, which dominate UK fuel retailing, are charging 162p for a litre of diesel, on average. Williams labelled this “outrageous”.

He added: “As the supermarkets buy so frequently they have had plenty of time to pass on the lower prices they are benefitting from on the wholesale market to drivers at the pumps, but they remain totally resolute in their refusal to cut their prices substantially which is nothing short of scandalous, particularly in a cost-of-living crisis.”

Costco has bucked the trend and is charging just under 150p a litre for diesel, at the moment.

A number of independent retailers are also charging far less than their supermarket rivals, which is a sign of how much fuel retailing has changed.

“If smaller retailers can afford to make ends meet with lower margins and smaller sales volumes, then what excuse can the supermarkets possibly have for keeping their diesel prices so high?

“We hope the Competition and Markets Authority, which is currently reviewing the road fuel market in the UK, is keeping a watchful eye on this pricing behaviour as we believe it’s against the interests of diesel drivers up and down the country,” Williams said.  By Graham Hill thanks to Fleet News

UK factories made an additional 8,050 cars, with volumes buoyed by an easing of supply chain shortages, according to new figures published by the Society of Motor Manufacturers and Traders (SMMT).

UK car production rose 13.1% in February, up to 69,707 units, with production for both home and overseas markets seeing double digit increases, up 20.3% and 11.5% respectively.

SMMT says that exports drove the overall uplift; some 56,634 cars were produced to fulfil global orders, up from 50,786 a year before and accounting for 81.2% of output, with the majority of these exports (59.6%) heading into the UK’s largest trading partner, the EU.

Shipments to the EU rose 6.5%, helping to offset declines to the US (-19.9%) and China (-21.6%). Exports to Turkey, Japan, Australia and South Korea, meanwhile, also rose, collectively by 85%, and together represented a total of 6,498 cars, or 11.5% of exports.

The UK’s automotive industrial transition to hybrid, plug-in hybrid and battery electric vehicles continued, with combined volumes surging 72.2% from 15,905 to a total of 27,392 units and accounting for two in five (39.3%) cars produced in the month.

Mike Hawes, chief executive of the SMMT, said: “February’s growth in UK car production signposts an industry on the road to recovery.

“The fundamentals of the sector are strong; a highly skilled workforce, engineering excellence, a sector that is embracing new electrified vehicle manufacturing and wide ranging capabilities in the EV supply chain.

“To take advantage of global opportunities, however, we must scale up at pace and make the UK the most attractive destination for automotive investment by addressing trading and fiscal costs and delivering low carbon, affordable energy.”

By Graham Hill thanks to Fleet News

Tesco has increased the cost of its electric vehicle (EV) charging network, with rates now starting at 44p per kWh.

Drivers using Tesco charge points will now pay 44p per kWh at a 7kW charger and 49p per kWh at a 22kW charger.

The supermarket’s rapid chargers now cost 62p per kWh at a 50kW device and 69p per kWh for the fastest 75kW units.

The changes, which take effect from April 3, follow the introduction of a tariff for non-rapid devices in November 2022.

Payment will have to be made through the Pod Point app for the AC chargers or by contactless for the rapid points.

Using the slowest charger, it will now cost around £12 to add 100 miles worth of range to the average family EV.

The retailer said the increased EV charging tariff contributes towards covering infrastructure costs and energy costs incurred by EV drivers charging across the network.

Tesco first announced it had introduced free chargers at 100 of its Tesco stores in 2019. It was subsequently expanded to 600 stores and 2,500 points. The network was launched by Tesco, Volkswagen and Pod Point.

The average cost of using a public AC charger (up to 7kW) is 37p per kWh, according to the AA, while a rapid charger costs 66p per kWh.  By Graham Hill thanks to Fleet News

Electric vehicle (EV) drivers are potentially missing out on savings worth hundreds of pounds by not switching to specialist home charging tariffs, research suggests.

Mina found that the average pence per kWh cost for charging at home was marginally lower than the average overall home energy cost.

The EV payment specialist says that this suggests drivers are not using lower off-peak or EV-specific tariffs enough.

The average home charge was 30p per kWh – only slightly less than the average cost of all home electricity at 34p per kWh for the period analysed – according to Mina’s analysis of more than 60,000 plug-in events.

Furthermore, Mina found that there were more than 800 different home tariffs which, it says, causes customer confusion and an inability to work out if, or how, they should move to a more suitable tariff.

Mina says that this potentially meant some drivers were paying more than six times more than they could be to charge: equivalent to spending £15 more on each home charge for a typical EV with a 60kWh battery.

Over 20,000 miles a year, that would equate to around £1,500 that could otherwise have been saved.

“The lowest rate in our data of 60,000 charges was 5p per kWh for an EV specific home tariff, yet the average cost was 30p per kWh,” said Mina CEO Ashley Tate.

“Clearly, those two numbers are a long way apart which suggests there is more work to do, in that not enough drivers are on specific tariffs that will save them money.”

Tate claims that there is no lack of desire from energy suppliers to offer EV tariffs and help drivers make the switch, but with current wholesale energy costs being so high and unpredictable, they are finding it hard to launch these tariffs.

However, he added: “I do think we’ll see more of these coming to the market over the next two years. They are vitally important for the development of the EV market.

“We have spoken to some EV owners who have been contacted by forward-thinking energy firms about the possibilities of switching to a more suitable tariff, and that’s really good to hear how they are changing over and saving money.”

Octopus Energy’s Intelligent Octopus tariff, for example, allows drivers to charge for 10p an hour during a six-hour window when it is best for the grid.

Alex Schoch, head of flexibility at Octopus Energy Group, said: “As more low-cost renewables join the grid, these costs will only fall further – helping reduce the impact of travel on our wallets, as well as the planet.”

Often EV-specific tariffs have a shorter low-cost window at night for charging than standard off-peak, but the charges are considerably less during that period.

Issues drivers should be aware of when considering an EV tariff

• Do you understand how much energy you are using at home to charge your EV?
• Is a nightly 4-5 hour EV tariff window enough for daily charging needs, and can you schedule your EV charge to fit into it?
• Often the accompanying peak tariff rate is higher than average. Would the rest of your home energy bills negate the savings of the EV-specific element?
• Would a standard off-peak tariff, which is a higher cost at often around two-thirds that of peak, but goes on for longer (usually around eight hours), be a better bet?

By Graham Hill thanks to Fleet News

Wireless charging of electric vehicles (EVs) at up to 500kW could be possible following the development of new technology in Sweden.

Researchers at Chalmers University of Technology have pushed inductive power transfer technology further to enable high-power battery charging that is ready to presented to the fleet industry.

The initial study focussed on using the technology for charging electric urban ferries but Yujing Liu, professor of Electric Power Engineering at the Department of Electrical Engineering at Chalmers said for the electric trucks of the future, there is a potential application.

The wireless charger uses a new type of silicon carbide semiconductor and a newly developed copper wire that is as thin as a human hair. These two factors make transmitting high power through air a realistic proposition.

Charging power of 150kW to 500kW are possible, with no physical connection between the vehicle and charger. This makes charging at a depot, for example, more straightforward and removes the need for heavy charging cable.

Liu said: “A key factor is that we now have access to high-power semiconductors based on silicon carbide, known as ‘SiC components’. As a power source for electronic products, these have only been on the market a few years. They allow us to use higher voltages, higher temperatures and much higher switching frequencies, compared to traditional silicon-based components.

“This is important because it’s the frequency of the magnetic field that limits how much power can be transferred between two coils of a given size.”

Liu emphasised that charging electric vehicles entails several conversion steps; between direct current and alternating current and between different voltage levels.

“So, when we say that we’ve achieved an efficiency of 98% from direct current in the charging station to the battery, that figure may not mean much if you don’t carefully define what’s measured.

“But you can also put it this way: losses occur whether you use ordinary cable-based conductive charging or charge by using induction. The efficiency we’ve now achieved means that the losses in inductive charging can be almost as low as with a conductive charging system. The difference is so small as to be practically negligible. It’s about one or two per cent,” Liu explained. By Graham Hill thanks to Fleet News

The cost of vehicle repairs has risen by 40% from 2018 to 2022, according to analysis of extended warranty claims paid over five years by Intelligent Motoring. 

The average cost of warranty claims rose 37% between July and December 2022.

Covid-19, followed by soaring energy prices and continuing supply chain issues have continued to challenge the automotive sector.

However, Intelligent Motoring’s study of over 12,000 warranty claims reveals that rising repair costs began accelerating during the economic uncertainty that followed the UK’s Brexit referendum in June 2016.

In the past five years, warranty claims costs increased the most during 2018 to 2019, with the average claim cost rising 19%, while 2020-2021 saw a 10% increase.

Duncan McClure Fisher, CEO of Intelligent Motoring, a provider of automotive warranties, insurance products and aftersales solutions, said, “Without doubt the majority were unprepared for the knock Covid-19 inflicted on the automotive sector.

“But the industry had been facing challenges even before the pandemic hit, meaning Covid-19 was simply another element that deepened those difficulties.

“The resulting financial impact on motorists is significant and has been made worse by wider pressures including rising inflation and the overall increased cost of living.” By Graham Hill thanks to Fleet News

The huge potential of reducing a vehicle’s impact on the climate by going electric is being diminished by a growing trend towards larger and heavier plug-in cars, new research suggests.

Green NCAP’s results, published today (Thursday, March 23), show that vehicle size is “significantly” increasing the negative impact on climate and energy demand, driving not only a rise in fuel and electric energy consumption, but also creating a wider footprint in vehicle and battery production.

It tested the Life Cycle Assessment (LCA) of greenhouse gas emissions and primary energy demand of 34 cars in 2022, with different powertrain types: battery electric, hybrid electric, conventional petrol and diesel, and one vehicle, the Ford Puma, that runs on alternative fuel.

The LCA calculations used Green NCAP’s interactive Life Cycle Assessment tool, with calculations based on the average energy mix of the 27 EU Member States and the UK, and an average mileage of 240,000km (150,000 miles) over 16 years.

Green NCAP says the results show the “current and continuous trend” towards larger and heavier cars “significantly increases” the negative impact on climate and energy demand.

It drives not only a rise in fuel and electric energy consumption, but also creates a wider footprint in vehicle and battery production.

LCA results from the 34 tested cars show that battery electric vehicles (BEVs) are ahead in reducing greenhouse gases with 40‑50% less emissions compared to conventional petrol cars, depending on the model chosen.

In terms of primary energy demand, the differences between electric and conventional cars are less.

The hybrid electric sport utility vehicles (SUVs) that were tested, have higher fuel consumption and, due to increased emissions in the usage phase, have life cycle values in the range of 200‑240g CO2-equivalent/km and an estimated 0.85‑1.0 kWh/km.

These numbers lie between the values of a large electric SUV and a conventional petrol- or diesel-powered counterpart.

In the case of the bio-ethanol (E85) operated Ford Puma, compared to the same car in petrol mode, greenhouse gas emissions reduced to a level closer to the range of battery electric cars.

The processes needed for the bio-fuel production increase the Puma’s life cycle energy demand by 57%, yet given 60% of the total energy needed is renewable, much less fossil fuel is used, said Green NCAP.

The calculations show the considerable differences between each car’s impact on the environment, but also reveal the significant influence of mass on greenhouse gas emissions and primary energy demand.

Green NCAP says that this is clearly seen for all powertrain types even though the correlation might be slightly distorted for some cars due to differences in aerodynamic drag or powertrain efficiency.

Nevertheless, it says, the overlying message is clear – the heavier the vehicle, the more harm it does to the environment and the extra energy required to drive the car.

In general, battery electric vehicles emit significantly less greenhouse gases over their lifetime, but some of the gains are lost due to their increased weight.

Aleksandar Damyanov, Green NCAP’s technical manager, explained: “Electric vehicles and electrification in general offer huge potential in reducing greenhouse gases, but the ever-increasing trend of heavier vehicles diminishes this prospect.

“To counteract this, Green NCAP calls on manufacturers to reduce the mass of their products and calls on consumers to make purchasing decisions that not only consider the powertrain of their new cars, but also consider their weight.”

To better illustrate how mass affects environmental performance, Green NCAP has performed additional numerical simulations based on real-world Green NCAP measurements.

These studies show that all three powertrain types (BEV, non-rechargeable hybrid HEV and conventional ICE), when their mass increases, have the same relative rise in energy consumption of about 2% per 100kg.

However, their absolute consumption figures are very different.

Furthermore, higher mass is a major factor in the environmental impact of vehicle production.

Based on today’s estimates, a net mass increase of 100kg potentially results in an additional 500‑650kg of greenhouse gas emissions and 1.9‑2.4 MWh of energy demand in vehicle production (without battery, including recycling).

Growing trend towards heavier vehicles

Over the past ten years, the average weight of vehicles sold has increased by about 9% or around 100kg.

Sales of small SUVs have increased five times, becoming the most sold vehicles in 2022 with about four million cars sold across Europe.

Large SUV sales have further increased seven times leading to a total sales number of roughly 700,000 cars.

For a compact family car, the 100kg average increase in weight is responsible for about 1.4 tonnes of additional greenhouse gas emissions and 5.7 MWh of extra energy used.

According to the European Automobile Manufacturers’ Association (ACEA), in 2022, 9.3 million vehicles were sold, out of which 12.2% were battery electric.

This leads to a revealing calculation – assuming eight million vehicles are on average 100kg heavier, the impact of this weight increase on the climate is the equivalent of about 200,000 extra cars on European roads.  By Graham Hill thanks to Fleet News

It is inevitable that if the government is to encourage the move to electric cars they must disincentivise the continued purchase of petrol and diesel cars. Increased fuel duty is of course one thing that can be done, first registration tax is another. Let’s see what the experts have to say.

A planned 5p rise in fuel duty could cause “untold damage” if the Government decides to go ahead with it in the next budget, warns RAC Fuel Watch.

It says drivers face a “pump price shock” in less than two weeks unless the Chancellor decides to keep the 5p duty cut put in place a year ago, and cancel the annual planned hike at the Spring Budget on 15 March.

RAC fuel spokesman Simon Williams said: “All eyes are now on what the Chancellor decides to do with fuel duty at the Budget in just two weeks’ time. While we accept the 5p cut introduced last year can’t last forever, with household finances under even more pressure this Spring than they were a year ago, we don’t think now is the time to be removing it.

“To decide to raise prices by 5p on both fuels would prove punishing to households and businesses struggling to make ends meet, and may have a detrimental effect on both inflation – which the Government is desperate to bring down – and the wider economy. In the case of diesel, it would also mean the UK has the highest fuel duty rate in the whole of Europe.

“We also hope Mr Hunt isn’t about to become the first Chancellor in 12 years not to cancel the annual planned fuel duty rise. If he were to go ahead with it, untold damage could be caused.”

February saw the average price of a litre of unleaded come down another penny (1.26p) to 147.72p, while diesel dropped 3.19p to 167.19p. The falls make the cost of filling a 55-litre family petrol car £81.25 (down £0.69 from £81.94 a month earlier), and the diesel equivalent £91.95 (down from £93.71 at the start of February).

While the reduction in diesel prices is good news, wholesale price data analysed by the RAC shows drivers of the UK’s 12m diesel cars continue to pay a “needlessly high” price every time they fill up. Despite there being just a 6p difference between the wholesale prices of both diesel and petrol throughout all of February, diesel pump prices are currently 20p more than petrol. This means anyone filling a diesel car is, the RAC calculates, paying around £7 more per tank than they should be if diesel was being sold at a fairer price of around 155p a litre.

Last month, the RAC revealed that drivers of diesel vehicles are paying 20p per litre more for diesel than petrol, despite a wholesale cost difference of just 6p.  By Graham Hill thanks to Fleet News

The Tesla new car price reductions announced overnight on January 12 were significant, unexpected and widely publicised.

We may never know exactly what impact they had on used values, but the timing of the action, in the midst of a sharp downturn of used values for battery electric vehicles (BEVs), could not have been worse.

In the case of Tesla Model 3, used values had already decreased to the extent that nearly new used retail values were comfortably away from the revised list prices, but the impact on Model Y was to send used values for all three derivatives above cost new.

Unsurprisingly, there was an immediate impact on used values and we expect further significant reductions on this model.

Model 3, in particular, has been used across the industry as a comparison vehicle, even where it is not strictly a direct competitor vehicle for certain models.

As a result, the falls in Tesla Model 3 values are at least partially reflected in many other BEV models.

At Cap HPI we have made an additional negative adjustment to our forecasts due to a combination of reasons: an expectation of increased new car volume due to an improved competitive position (residual values and guaranteed future values are unlikely to decrease in pound note terms by as much as the list price reductions) and also the list price reductions potentially signal a move from a niche premium brand to a more mainstream, volume brand.

LEVERS FOR OTHER MANUFACTURERS

There are also other levers that rival manufacturers could pull in an attempt to reduce Tesla’s competitive advantage.

Although most BEV models are subject to limited fleet discounts, some adjustment may be possible.

Many will be looking very closely at their finance offerings to ensure interest rates are as competitive as possible and exploring whether there are any additional elements which can be incorporated into a new car deal, such as free servicing for a fixed period (unlikely to involve a large financial commitment for a new battery electric car).

As far as we are aware, most other OEMs are unlikely to follow suit with reductions to their own list prices.

Some, like Kia, came out very quickly, keen to rule such a move out and distance themselves from Tesla’s behaviour, while others have kept their cards closer to their chest.

It seems more likely that future planned list price increases may be cancelled, rather than making any attempt to match Tesla on the cost new front.

Some manufacturers also have the option of bringing cheaper versions of their existing vehicles to market; either by including smaller batteries which are already available in other markets, or reducing specification deemed to be unessential or adding limited value in the used market. By Graham Hill thanks to Fleet News