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The cost of repairs to vehicles suffering pothole damage over the past 12 months has been revealed in new research published by Kwik Fit.

Its annual Pothole Impact Tracker (PIT) report, which is published today (Wednesday, March 31), shows that the total repair bill to vehicles from pothole damage over the past year rose slightly, from £1.249bn to £1.267bn.

Kwik Fit’s PIT Report tracks the impact of potholes on an annual basis and its research shows that this year, despite reduced mileage, drivers have hit an average of 11 potholes per month, and some 10.2 million have suffered damage to their car as a result.

As tyres are a car’s first line of defence against potholes, they are the most commonly damaged component, suffered by 4.2 million drivers.  This is followed by suspension damage (3m), wheels (2.8m) and steering (2m).

The average cost of repairs has reached £127.20, an increase of 11% on the previous year.

Almost half (48%) of drivers say that the condition of the road surfaces in their local area are worse than 12 months ago, with only 12% saying they are better; 35% say they are about the same.

Roger Griggs, communications director at Kwik Fit, said: “The condition of our roads is a long-term issue as shown by our PIT report over recent years.

“Potholes are not just an issue because of the cost to drivers, they present a risk to people’s safety.

“We need to ensure that any funds made available are used strategically and effectively and not just for short term patching up of the worst affected areas.”

The Kwik Fit research coincides with the publication of the Annual Local Authority Road Maintenance (ALARM) survey.

POTHOLE FILLED EVERY 19 SECONDS

It says that inconsistent roads funding is leading to highways authorities conducting quick fixes to potholes rather than employing longer-term solutions.

The 26th survey reports a 15% increase in highway maintenance budgets which were, in part, due to additional funding from central Government, including the Pothole Fund in England, as well as supplementary pots to support changes as a result of Covid-19 needs and active travel ambitions.

However, budgets reported are still lower than they were two years ago, and road conditions have yet to see any significant improvement.

This up-down approach to funding, says the Asphalt Industry Alliance (AIA), results in wasteful patch and mend repairs as local authorities have a statutory duty to maintain the highway but “don’t have the scope or certainty of funding” to implement more cost effective, proactive repairs.

This is borne out by the large increase in the number of potholes filled over the past 12 months in England and Wales, the equivalent of one being filled every 19 seconds, it says.

Local authorities also report that, despite the increase in budgets, target road conditions still remain out of reach.

If they had enough funds to meet their own targets conditions across all road types, there could be an additional 14,400 miles of local roads in a good state of repair and another 2,000 fewer miles in need of urgent repair.

Rick Green, chair of the AIA, said: “The last year has been like no other and the ‘hidden heroes’ responsible for maintaining our local roads should be proud of the role they played working throughout the pandemic to keep our key workers and emergency services moving, supermarket shelves stocked and vaccines distributed.

“While the extra funding in 2020/21 was welcomed, using it to repeatedly fill in potholes is essentially a failure as it does nothing to improve the resilience of the network.”

Green says that the average frequency of road surfacing is now once every 68 years and the bill to fix the backlog of maintenance work on our local roads in England and Wales remains in excess of £10bn.

“It is clear that a longer term approach to local road funding is needed, similar to the five-year commitment made to the strategic road network in the two Roads Investment Strategy (RIS) periods, to allow local authority highway engineers to plan ahead and implement a more proactive, sustainable and cost effective whole life approach to maintaining the network,” he said.

“This commitment is vital to the nation’s post-pandemic reset in which we will rely on our local road network to support recovery and underpin active travel and levelling-up goals.”

LONDONERS COMPLAIN MORE

The Kwik Fit research showed that drivers in Scotland are most likely to say their roads are worse than a year ago, while motorists in London are least likely.

In the capital a third of drivers 33% say the roads are worse, but nearly as many (27%) say they are better.

Interestingly, it is London drivers who are most likely to have complained to their local authority about the potholes in their area. Almost half (46%) of London motorists have done so, compared to an average of 30% of drivers across the country, which may be a reflection of the fact that London drivers pay an average repair bill of £142.60, compared to the national average figure of £127.20.

Drivers hitting potholes may find that the damage is not immediately apparent.  Pothole impacts can often result in slow punctures, damage on the inside wall of the tyre, or cracks in the wheel which are not obvious straight away.

Any driver who hits a pothole with significant force should monitor their car carefully in the days following the incident, to ensure that their vehicle has remained unscathed. By Graham Hill thanks to Fleet News

Road sign-reading technology could collectively save drivers millions of pounds by helping them avoid breaking the speed limit, according to Seat.

The technology uses a front-mounted camera to detect speed limit signs and automatically adjusts a vehicle’s speed. It can also scan school zones and other road signs.

A study of 2,000 UK motorists by Seat found that nearly 10% admitted to being caught speeding annually and more than three quarters (76%) of drivers aren’t always aware what speed they are travelling at.

The manufacturer calculated that by employing road sign-reading technology it could save drivers collectively £327 million based on 10% of licensed drivers in England being issued £100 for an SP30 speeding offence.

Richard Harrison, managing director of Seat UK, said: “It’s certainly eye opening to see that significant numbers of motorists aren’t necessarily always aware of their own speeds, but thankfully there is in-car technology – like our Dynamic Road Sign Display – already on the market to make drivers safer on the road.”

Statistics compiled by the Department for Transport (DfT) showed that over 50% of cars exceeded the speed limit on 30mph roads, while 47% of cars broke the limit on motorways in 2020.

From the research, 40% of drivers said they would want a similar technology to Seat’s Dynamic Road Sign Display technology – featured in the new Seat Leon – on their car if it was available.  By Graham Hill thanks to Fleet News

Vehicles should be fitted with ‘alcolocks’ to reduce drink-driving, a new report from the Parliamentary Advisory Council for Transport Safety (PACTS) suggests.

The alcohol interlocks, which require the driver to blow into a breath-testing instrument connected to the vehicle ignition system before the vehicle will start, should be introduced as soon as possible for drivers convicted of drink driving, says PACTS.

The report – Locking out the drink driver – finds that one on six drink driving offences is committed by a reoffender.

The current reliance on media campaigns, penalties, driving bans and police enforcement is enough to deter reoffending, claims PACTS. Nor is it enough to bring down the number of deaths from drink driving – 240 each year, which has not changed since 2010.

David Davies, executive director of PACTS, said: “We were shocked to find that one in six drink driving offences is committed by someone previously convicted.

“Since 2010, this amounts to over 100,000 offences – each of which is highly dangerous to the driver and other road users. Clearly the current system is not adequate.”

The PACTS report looks at the use of alcohol interlocks around the world and finds that they are significantly more effective than licence disqualification at reducing reoffending.

If combined with rehabilitation courses, the benefits can last long after the device is removed, it says.

The report recommends that the courts are given powers to offer or mandate alcohol interlocks for as many drink drivers.

Offenders would be responsible for the costs of the interlock programme – typically around £1,000 a year.

“A number of other countries have introduced alcohol interlocks to prevent repeat drink driving and to bring down the number of deaths and injuries that result,” said Davies.

“Alcohol interlocks have proved highly effective. PACTS is calling on the Government to give UK courts the powers to impose them without delay.”

Reoffending is a major concern. Since 2010, 32,025 people committed a drink drive offence with a previous drink/drug drive offence on their record.

Meanwhile, eight people were convicted of causing death by careless driving when unfit through drink/with alcohol level above the limit with a previous drink/drug offence on their record.

Dräger Safety UK welcomed today’s publication of the PACTS report into the use of interlock devices.

Graham Hurst, marketing manager Impairment at Dräger, said: “We believe that the time is right to try something different to reduce these avoidable fatalites.

“The experience of our colleagues in countries which already incorporate interlock devices into rehabiliaton programmes is that they have a clear impact on deterring drink driving.”

YouGov research, commissioned by Dräger last year, showed that there is public appetite for interlock devices to be fitted to offenders vehicles before their driving licence is returned, particularly for repeat offenders.

More than four in five respondents (83%) said they would support this and more than half (56%) agreed they should be introduced for first time offenders.

“This public endorsement and the publication of today’s report, suggests that there is a recognition that we need to take action to stop persistent offenders putting other road users at risk,” added Hurst.

Road safety charity IAM RoadSmart also welcomed the PACTS report. Neil Greig, IAM RoadSmart director of policy and research said: “The evidence is clear. Nearly all motorists want new cars fitted with alcolocks to help stop the daily carnage on UK roads from drink driving and this latest PACTS report is even further endorsement.”

The PACTS report mirrors recent research by IAM RoadSmart of over 2,000 motorists, which reveals overwhelming support from motorists to fit alcolocks in all new cars, with 90% of motorists supporting all new cars having built-in technology that immobilises the vehicle if the driver is over the limit.

From 2022 all new cars sold in Europe will be ‘alcolock enabled’ but it is up to the Government to decide how they will be used. IAM RoadSmart has previously stated they will be a useful tool to get drink drive offenders back to safer driving after a ban. By Graham Hill thanks to Fleet News

A law firm has claimed that Jaguar Land Rover may have used emissions cheating devices on a number of its diesel engines.

Leigh Day, which has already made similar claims against Mercedes, VW, Nissan, Renault, Porsche, Vauxhall, Citroen and Peugeot, believes up to 365,000 Jaguar and Land Rover models could be affected.

The lawyers state that some JLR vehicles have been proven to emit higher levels of NOx emissions that claimed in tests by German and UK regulators.

A statement issued by the car maker said: “Jaguar Land Rover does not use emissions cheat devices or software in any of its products. We have not yet seen any technical evidence in relation to this matter and will strongly contest any claims made by the no win-no fee legal firm.”

According to Leigh Day, a Jaguar XE 2.0-litre was found by the German VW Commission Enquiry in April 2016 to be producing NOx at nine times the threshold value in an on the road test. In the same report, a Range Rover 3.0-litre produced 11 times the threshold value during on the road testing.

In 2016, following the Volkswagen dieselgate scandal, the Department for Transport concluded in a report that there was no evidence that other manufacturers were using software of the type used by Volkswagen.

Oliver Holland, partner at Leigh Day, said: “Evidence in the public domain clearly shows that diesel engines in some Jaguar Land Rover models were fitted with emissions cheat devices so that customers have not been driving around in the low-emissions vehicles they thought they were.

“Instead, these owners have been cheated, and Britain’s roads and surrounding areas have been polluted with NOx emissions way beyond the levels that motor manufacturers have stated, to maintain profit and avoid regulation essential to our health and the health of the planet.”

Following the dieselgate scandal, Volkswagen Group was the first brand to face civil action with some 90,000 UK owners seeking compensation.

Class action lawsuits have since been launched against the majority of car makers by numerous law firms.

They are accused of using illegal defeat devices to manipulate the emissions performance of vehicles at certain times, such as during emissions tests, to make their cars appear to be more environmentally friendly.

All vehicles registered between 2009 and 2018 underwent the New European Driving Cycle (NEDC) test, in order to gain type approval. While EU law bans the use of ‘defeat devices’, exceptions within the regulations allow the effectiveness of emissions control systems to be reduced if it’s required to protect the engine against damage or ensure its safe operation.

Last year the European Court of Justice ruled that diesel emission defeat devices cannot be justified by the argument that they “contribute to preventing the ageing or clogging-up of the engine”.

Some car manufacturers admitted that engine control units were programmed to shut off at certain temperatures, but said such practices were fully compliant with the law.

In 2019, JLR issued a voluntary recall for 44,000 cars in the UK after regulators found 10 models were emitting more carbon dioxide (CO2) than they had been certified to emit.  By Graham Hill thanks to Fleet News

Better safety standards need to be applied to vehicles being used in the gig economy, says FleetCheck.

In a ruling that could have wider ramifications for the gig economy, the UK Supreme Court ruled that Uber must classify its drivers as workers rather than self-employed.

This will have ramifications on companies and drivers who use their own vehicles for business use.

Peter Golding, managing director at the fleet software specialist, said that the recent ruling against Uber and the company’s subsequent decision to provide a range of employment rights to drivers should be extended to the safety standards applied to cars and vans.

He explained: “This is not a complaint directed at Uber, which has an inspection regime in place for vehicles that are used as taxis, but at the wider gig economy where some home delivery and courier companies have long operated outside of normal safety bounds.”

Golding argues that there has always been some issues with people using their own “unsuitable” vehicles for business activity but, when this was limited to, for example, a relatively small number of pizza deliveries by teenagers using their old cars, the potential for issues was minimal.

However, he said: “We’re now in a situation, partially prompted by the pandemic, where gig economy drivers are delivering millions of parcels every day and the courier companies who employ them often outsource the entire issue of safety to the driver.

“This demands the question – if the recent example of Uber means that those drivers are being brought under legally-required employment practices, why does the same not apply to legally-required safety standards of those vehicles that are being used on business?

“Every other company operating vans in the country has a responsibility to ensure that they are maintained in a roadworthy condition in accordance with recognised manufacturer standards in a manner that is fully auditable.

“These duty of care measures exist to protect their drivers and other road users and, if problems occur, employers can face prosecution and a range of very serious penalties. There is no good reason for this to be suspended anywhere.”

Golding added that making this point was not intended to target the drivers themselves but the gig economy employers who enforced these kinds of working practices.

He explained: “These drivers are hardworking people who, especially at the moment, are proving important to keep the economy turning over and, in some cases, are helping to deliver services that are essential during the current crisis.

“However, that does not make the use of inappropriate vehicles right. For some home delivery companies, the only requirement is that the vehicle has an MOT and is insured for business use.

“I suspect we’ve all got our own horror stories about some of the vehicles that we’ve experienced courier drivers using, such as the 22-year-old Volvo estate that I’ve seen.”

In a sense, Golding says that those outlying vehicles are not the core issue. “The point is that even the better vehicles being used are often not fit for purpose,” he said.

“For example, if you’ve got a hundred parcels to deliver, fleet norms on safety say that you should be using a van with a bulkhead.

“If someone has an accident with those parcels unsecured on the back and front seats of their hatchback, the chances of the driver being hit hard by something heavy moving at speed is massively increased.

“Companies employing people and their vehicles on this basis are dancing around what is acceptable in safety terms. Their drivers and other road users deserve better.”

Golding believes that the fleet industry should look at ways of ensuring that these businesses start to adopt the same kind of everyday operational measures as other company cars and vans.

“Companies operating on this basis need to start to align to fleet industry norms on safety,” he added.

“These driver-owned vehicles are grey fleet and, as every good fleet manager knows, that means the employer has the same responsibilities as for company-owned vehicles.

“Home delivery and courier companies should, at the very least, be looking at driving licences, maintenance records, insisting on regular walkaround checks and ensuring that vehicles are fit for carrying their payload.

“These are safety essentials for every fleet as well as being a legal and a moral responsibility.” By Graham Hill thanks to Fleet News

Citroen has reduced the price of its range topping e-C4 Shine Plus so that all versions of the electric car are eligible for the revised plug-in car grant.

The e-C4 Shine plus previously had an on-the-price of £35,545, but is now priced from £34,995.

It follows the Government’s decision to lower the eligibility threshold for the plug-in grant to £35,000.

The grant amount was also reduced from £3,000 to £2,500.

Eurig Druce, Citroen UK’s managing director, said: “We were disappointed to hear the news that the support for consumers to make the switch to a low emission vehicle had been reduced.

For this period of transition to be a success and for electrification targets to be met, both the industry and consumers need clearer long-term guidance and support on how we will get there.

“That said, I am proud that Citroen UK’s policy of ‘Fair Pricing’ ensures that consumers will continue to be able to benefit from the full Government Plug in Car Grant when purchasing their new e-C4.”

Pricing for the new e-C4 ranges from £30,895 to £32,495 (on-the-road) when the grant is applied.  All models come equipped with LED headlights, 18-inch alloy wheels, 10-inch high-resolution touchscreen with Apple CarPlay and Android Auto, Sat Nav with TomTom Live Services, Active Safety Brake, Lane Keeping Assist, electric parking brake, rear parking sensors, rear parking camera, electrically folding door mirrors, dual-zone climate control and Citroen Connect Box Emergency and Assistance System.

The car uses a 50kWh battery pack and a 136PS electric motor. It provides a range of up to 217 miles and an 80% charge will take 30 minutes on a 100kW rapid charger.  By Graham Hill thanks to Fleet News

A consultation will be launched later this year to decide the distance a new hybrid electric vehicle can travel on zero emissions to remain on sale from 2030 to 2035.

Publishing its response today to a consultation on Ending the sale of new petrol, diesel and hybrid cars and vans, the Government also said it remained technology neutral and recognised that hydrogen could have a role to play.

Ministers confirmed in November 2020, that new petrol and diesel cars and vans would not be allowed to be sold in the UK from 2030.

New hybrid cars and vans that could drive a “significant distance” with no carbon coming out of the tailpipe, however, would be allowed to remain on sale until 2035.

The Office for Zero Emission Vehicle (OZEV) has previously explained that only plug-in and full hybrids will still be considered for sale from 2030 until 2035.

Full hybrids include the likes of the Toyota Prius and the Kia Niro, while mild hybrids, which are rapidly becoming the norm on most engines, are offered by Ford, with MHEV engines on the Fiesta, Puma and Focus.

In its response to the internal combsution engine (ICE) ban consultation, the Government says that it wants to increase the pace of transition to zero-emission driving.

“In doing so we recognise the importance of deploying a range of cleaner vehicle technologies from today up until the phase out dates,” it said.

“In particular, full hybrids and plug-in hybrids have a key role to play, both in reducing emissions and as a stepping-stone technology to help consumers and businesses adapt to zero emission driving.

“We are not banning the use of petrol and diesel cars and vans. These decisions only apply to new cars and vans. They do not apply to existing petrol, diesel and hybrid cars and vans which can continue to be driven and sold in the second-hand market.”

The Government says it recognises that a new target will be “challenging for different sectors of society and the economy”.

“Issues around affordability, range anxiety and infrastructure must be addressed to foster the willingness of drivers to transition to zero emission vehicles (ZEVs),” it added.

“Government takes a technology neutral approach on how this transition will be achieved. While it is true that battery electric vehicles (BEVs) dominate the current ZEV market, we recognise the potential of hydrogen as another solution for zero emission transport, particularly for heavier road vehicles.”

POSSIBLE DEROGATIONS

The Department for Transport (DfT) says that it will consider a “very limited range of derogations” to the phase out dates for specialist vehicles, including military service and emergency vehicles. A consultation on these derogations will be launched in due course.

It will also publish a delivery plan this year setting out major milestones towards the phase out dates and committed spending and regulatory measures. Progress against the plan will be monitored and reported publicly on an annual basis.

Furthermore, it will conduct a review of progress towards the phase out dates by 2025.

“Moving millions of vehicles to zero emissions is an enormous challenge,” said transport secretary Grant Shapps. “Government has already committed £1.5 billion to boost the early market, but now we are going further.

“We are backing our new phase out dates with over £2.8bn of investment to drive up the number of zero emission vehicles, accelerate the roll out of our world-class chargepoint infrastructure network, and to secure investment in gigafactories and other strategic technologies to develop the UK’s electric vehicle supply chain.”

In a Fleet News survey, conducted after the ICE ban was announced late last year, almost two-thirds of fleets said that implementing a ban on the sale of new petrol and diesel cars from 2030 was too soon.

The Government had previously said it would end the sale of new petrol and diesel cars and vans by 2040.  By Graham Hill thanks to Fleet News

Law firm Hagen Berman UK says it has filed proceedings against Daimler AG, Mercedes Benz Cars UK and Mercedes Benz Financial Services UK, in a bid to secure compensation payouts for drivers affected by emissions “cheating”.

The firm alleges that Mercedes programmed some of its diesel models produced between 2008 and 2018 to reduce the vehicles’ illegally high levels of nitrogen oxide when the vehicles were being tested for emissions.

In August last year, the German car maker agreed to pay a £560m settlement to owners in the USA after it was accused of cheating emissions tests.

Mercedes-Benz said cars sold in the US used different emissions control systems to those in Europe, however, and believes the claims brought forward by UK law firms are “without merit”.

Some 33,000 people in England and Wales have registered interest to have Hagens Berman represent them in the group litigation. The law firm says claimants can now formally opt in to join the case. Other interested parties are also still eligible to join.

“British consumers have a similar right to compensation for unlawful, deceptive and defective emissions-cheating implemented by Mercedes,” said Steve Berman, managing partner of Hagens Berman. “Following the $700 million US settlement against Mercedes, we spent the past year laying the foundation for equally successful litigation in the UK. We are now poised to hold Mercedes and other defendants to account.”

A number of car makers are being targeting by law firms for emissions cheating. Most recently, Harcus Parker announced it was investing all car makers that sold diesel models between 2009 and 2018. So far, no claims have been successful.

A 2016 investigation by the Vehicle Certification Agency, on behalf of the Department for Transport, found that only Volkswagen Group vehicles featured defeat devices designed specifically to beat official testing.

However, the tests provided further evidence that NOx emissions from diesel vehicles were higher in real-world conditions and on the test track than in laboratory conditions.

The investigation concluded that the EU regulations provided uncertainty about how emissions control systems may be reduced or deactivated in certain conditions and did not detail how the exceptions to the ban on defeat devices should apply, whether or how manufacturers should apply these exemptions, or how a type approval authority should evaluate the validity of their use. By Graham Hill thanks to Fleet News

Highways England has launched a new campaign advising drivers to “go left” if they break down on the motorway.

The multi-million pound exercise is aimed at improving safety on smart motorways following a review by the Transport Secretary last year.

It is being supported by partners across the recovery industry and independent road safety campaigner Meera Naran.

Set to the tune of the Pet Shop Boys’ hit version of the ‘Go West’ song, the advert delivers a clear, single-minded message – go left.

Highways England Acting Chief Executive, Nick Harris, said: “No one plans to break down on a motorway, but if the unexpected happens then I want all motorists to know what to do so that they can keep themselves and others safe.

“Everyone wants a safe journey and raising awareness is a vital part of helping to make sure that happens.

“This new campaign and its ‘Go left’ message is designed to deliver crucial information in an accessible way and to help make motorways safer for the people who use them.”

The campaign is part of an 18-point action plan set out in the Evidence Stocktake published by the Department for Transport in March last year.

The Transport Secretary called on Highways England to deliver the campaign to improve safety and public confidence on smart motorways. However, the Transport Committee has launched a seprate inquiry into the benefits and safety of Smart Motorways in response to numerous calls for them to be scrapped.

Campaigners against Smart Motorways have labelled them as ‘death traps’. One coroner concluded that smart motorways ‘present an ongoing risk of future deaths’ while another has referred Highways England to the Crown Prosecution Service to consider if corporate manslaughter charges are appropriate following the 2018 death of a grandmother on the M1 in South Yorkshire.

Meera Naran is campaigning for Safer Drivers on Safer Roads following the death of her eight-year-old son Dev on the M6. She said: “Having successfully campaigned for the implementation of the 18-point safety plan – this education campaign is an integral step in the right direction to support motorists.”

In 2019 there were almost 230,000 reported breakdowns across the Highways England network including around 207,500 on motorways. In the 12 months from June 2019, around 40,000 breakdowns were recorded as being due to tyre issues while more than 6,000 incidents were a result of vehicles running out of fuel.

AA president, Edmund King OBE, added: “As motorway design has changed since many of us passed our test, it is vital to inform drivers what they should do in rare but worse-case scenarios.

“This welcome new campaign reminds drivers to ‘go left’ should their vehicles develop faults and if possible, get off the motorway. However, if they can’t, then they should head for the next emergency zone.

“Some breakdowns can be avoided completely, so drivers should take five minutes before setting off to ensure their tyres are inflated correctly, that they have enough fuel or electric charge and that engine fluids are topped up.” By Graham Hill thanks to Fleet News

Mitsubishi will sell new cars until the autumn, at which point it will transition to an aftersales only business, the company has confirmed.

It means new examples of models such as the Outlander plug-in hybrid (PHEV) and L200 pick-up will cease to be available by the end of the year.

The Japanese manufacturer unexpectedly announced it was pulling out of both the UK and European markets, last year.

At the time of the announcement a Mitsubishi spokesman told Fleet News: “Stock-wise we have access to a minimum of around 15,000 new vehicles across the entire range presently, with the option to order more L200 and Mirage stock further down the line, so we have no concerns in terms of vehicle supply for the foreseeable future.”

While some new vehicles will be procured by Mitsubishi from Alliance partner Renault, the company has confirmed that they will not be offered for sale in the UK and will not be produced in right-hand drive.

FLEET GUARANTEE

Both the Mitsubishi Outlander PHEV and L200 have proved popular with fleets, with the Environment Agency and Highways England just two of those impacted by the carmaker’s decision to wind up its UK and European operations.

The Environment Agency has been replacing its fleet of diesel vehicles with Mitsubishi Outlander PHEVs and has ordered 96 to date.

Dale Eynon, director of Defra Group Fleet Services, explained that the Outlander PHEV (commercial variant), in particular, has been a “vital part of our programme to reduce emissions, while maintaining full operational capability and being cost-effective”.

The manufacturer says has been contacting its fleet clients personally to offer them assurances.

“All our clients will be taken care of for as long as they are running our vehicles, that is a guarantee,” said the Mitsubishi spokesman.

Highways England has numerous Mitsubishi vehicles on its fleet, including a fleet of Mitsubishi Outlander PHEVs as asset delivery inspector vehicles. All have been bought outright.

Highways England said it was in talks with Mitsubishi about the vehicles on its fleet to “maintain business as usual. This includes the SMR for our fleet”.

SALES FIGURES

UK registrations from 2020, show Mitsubishi had sold 9,076 new vehicles, compared with 16,199 during the previous year.

The 43% decline in new registrations is more than the industry average, which dropped by 29% during the year.

The Mitsubishi Outlander PHEV, which has proved popular with company car drivers thanks to low benefit-in-kind (BIK) tax, was updated with new trim levels and a new infotainment system, last year. Prices started at £35,455 (on-the-road) for the revised plug-in hybrid SUV.

However, Government cuts to the plug-in car grant announced two years ago, meant the Outlander PHEV was no longer eligible.

The plug-in grant was cut by £1,000 and no longer applied to hybrid cars with a range of less than 70 zero-emission miles. The Government said the reduction in funding – from £4,500 to £3,500 – for the cleanest cars, and withdrawing the grant completely for the likes of the Outlander, was a sign of its success.

Its BIK tax savings credentials have maintained its traction in the market, however, with the Outlander outselling every other plug-in hybrid SUV on the market in 2020, with 3,336 Outlander PHEVs registered from January to December.

It means around a third of all new vehicles sold by the manufacturer last year was an Outlander PHEV and more than 53,000 examples have now been registered in the UK.

£1.3 BILLION LOSS

That sales success, however, comes after Mitsubishi reported a £1.3 billion loss in the first quarter of 2020, resulting in its decision to focus on faster growing, more profitable markets, with the aim of cutting costs by 20% over the next three years.

“The company is effectively pulling out of Europe to focus on the likes of south Asian markets,” said David Bailey, professor of business economics at the Birmingham Business School and senior fellow at UK in a Changing Europe.

Along with exiting UK and European markets, Mitsubishi will aim to improve its bottom line by cutting R&D spend, undertaking ‘salary reviews’ and shutting one of its plants in Japan by next year.

Its European manufacturing operations at the Nedcar plant in the Netherlands were sold in 2012, with cars, instead, imported to Europe.

Planned new models the EU and UK will miss out include a new Outlander SUV and a new Battery Electric SUV (2021), a plug-in hybrid Outlander and L200 Pick up (2022), and the Xpander MPV and Pajero Sport SUV (2023).

Bailey added: “From a consumer point of view, the pull-out is a great shame as the firm has pioneered plug-in hybrid technology in the UK and Europe.”

Bailey believes that the technology will probably find its way into new Renault-Nissan-Mitsubishi Alliance models from Renault and Nissan.

“While the Alliance plan had anticipated a refocusing by Mitsubishi on south-east Asia, I’m still surprised that Mitsubishi is effectively leaving the UK/EU market completely,” he said.

“I had anticipated Mitsubishi models being assembled off the same platforms as Renault and Nissan models, and produced, for example, at Sunderland, so as to maximise the alliance’s market share in the region.”

However, Bailey doesn’t rule out the brand being resurrected in the UK market in this way at some point.

IMPACT ON RVs

Pricing experts at Cap HPI have played down the potential of Mitsubishi’s decision to exit the UK having a negative impact on residual values (RVs).

Andrew Mee, head of forecast UK at Cap HPI, told Fleet News: “It’s important to remember that Mitsubishi is an established brand with some popular models, notably Outlander and L200, and we expect these to continue to be attractive as used cars.

“While some funder and lender nervousness can be expected around residual values, there have been precedents of brands exiting the UK without values suffering, and these include MG Rover, Saab, Daewoo and Chevrolet.

“In all cases, values subsequently moved in line with market and sector trends and were not adversely affected by the brand’s withdrawal.”

Mee argues that the expected availability of spare parts and the knowledge and experience of service engineers should help used sales and values.

Furthermore, he says it’s even possible that, as there will be a finite number of Mitsubishi cars registered in the UK, as volumes on the road decrease over time, then interest from loyal customers could have a “positive impact on used values”. By Graham Hill thanks to Fleet News