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The classification of journeys is causing a headache for fleets, because of the rise of homeworking due to coronavirus, says the Association of Fleet Professionals (AFP).

Describing the problem as ‘The New Commute’, the AFP says that problems revolve around whether an employee’s home is now officially their place of work.

AFP chairman Paul Hollick explained: “If someone is working from home rather than the office, then it raises the question of which is actually their place of work. This is important when it comes to both expenses and risk management.

“For example, if someone now drives their own car to the office once a week, are they allowed to reclaim their travel costs using AMAP rates, as they would for any other business journey that they undertake?

“The other major issue is whether, if someone now uses their own car to travel from home to work, whether that is now seen as a business journey from a risk management point of view, rather a commute.”

HMRC rules

Hollick says that the HMRC rules in this area were often inconsistently applied. Normally, they were based on the employee’s contract of employment showing that they were home-based but there was also a reasonableness test, to ensure that the employee is working from home rather than the office for a proportionally greater length to time.

“As always with points of taxation,” Hollick explains, “it is better to have hard and fast rules but these are open to local interpretation and fleets can potentially suffer from a lack of uniformity.”

He added that the issue of risk management was probably clearer but also open to some degree of interpretation.

“Any employees who work from home for the majority of time but sometimes visit the office using their own vehicles have, strictly speaking, all become grey fleet – and should be subject to all the usual grey fleet management practices,” he said.

“Again, we have yet to hear from any fleets who have been in touch with the Health and Safety Executive about this but it is an area that would benefit from future clarification.”

The pandemic is creating a series of questions for fleets that AFP members were currently discussing and to which they were attempting to find solutions.

“The New Commute is just one of a series of issues that we are working hard to resolve for members but sharing best practice ideas,” said Hollick.

“It is at times such as now, when so much surrounding fleet management is fluid, that the AFP can really add value.”

The AFP was formed in March from the merging of the Association of Car Fleet Operators (ACFO) and the Institute of Car Fleet Management (ICFM).  By Graham Hill thanks to Fleet News

Electric cars are set to treble their market share in Europe this year, but an environmental campaign group is warning the UK could face long lead times in 2021.

Despite the pandemic, electric vehicle (EV) sales have surged since January 1 and will reach 10% this year and 15% in 2021, says Transport & Environment (T&E).

But, with carmakers having to meet targets to reduce the average emissions of the cars they sell in Europe, or pay fines, T&E says the UK supply of EVs is likely to dry up next year in the absence of British regulations equivalent to those in Europe.

Greg Archer, UK director at T&E, said: “Electric car sales are booming thanks to emissions standards. Next year, one in every seven cars sold in Europe will be a plug-in. European manufacturers have EVs to sell, but from January they’ll have no incentive to sell them in the UK unless the Government requires them to do so.”

From 2021, UK sales of EVs will not help manufacturers achieve EU standards. T&E says that the Government has so far failed to make parliamentary time available for equivalent new UK regulations to encourage sales here. These must be introduced by the end of October to be in place by January and maintain supplies of electric cars to the UK, it says.

Furthermore, it claims that the current draft regulation contains errors that will lead to about a fifth less EVs being sold in the UK than was likely if it had remained a part of the existing EU scheme. This is despite Government claims that the rules are equivalent to those in the EU.

The Department for Transport (DfT) has dismissed the claims.

Archer continued: “The electric car is becoming mainstream, but we risk turning off the tap in Britain.

“Carmakers will prioritise EV sales in markets where laws and tax breaks encourage them most, but the UK’s proposed standards are too weak and maybe too late.

“Government needs to quickly introduce regulations equivalent to the EU’s in 2021, or demand for electric cars will outstrip available supply and drivers will be left with long waits to secure their new electric car which will be more expensive.”

Read more on the UK analysis from T&E – UK Car CO2 Regulations: Going nowhere fast.

By Graham Hill thanks to Fleet News

The number of drug driving charges has risen by 125% to record levels in the last year, following the introduction of new legislation in 2015.

The significant rise in the number of charges was uncovered by Freedom of Information requests sent to UK police forces by BookMyGarage.com.

Of the 27 police forces across England and Wales that responded, the total number of drug driving charges increased from 4,122 in 2015/16 to 9,270 in 2019/20.

Drug driving became a specific offence in 2015, meaning police could charge someone for drug driving if they had at least one of 16 specified drugs in their blood above a certain limit.

Half of the 16 drugs listed are ‘medicinal’ and so drivers are just as likely to be prosecuted for having a legal drug in their system as they are an illegal drug while behind the wheel.

Sixteen police forces also provided data on the number of drivers who had tested positive for drug driving at the roadside, with the cumulative number of positive tests in these areas more than tripling from 2,619 in 2015/16 to 9,074 in 2019/20.

Not all positive tests necessarily result in the driver being charged, for instance where a roadside test shows as positive, but a police station test comes back as negative.

“Most people are aware of the ongoing problems surrounding drink driving but far fewer people know that drug driving is just as much of a problem,” said Jessica Potts, head of marketing at BookMyGarage.com.

“Although the data suggests the new police powers are enabling forces to arrest and charge more people, it’s alarming that the overall number of drug driving charges continue to rise despite its potential to cause devastating outcomes.

“Motorists should be especially aware that the law doesn’t just apply to illegal drugs. Medicinal drugs, such as those prescribed to treat insomnia or even some pain killers, feature on the list so it’s crucial drivers always check their medication to see if it impairs their ability to drive.”

Of the forces that responded, Essex police charged the most people for drug driving in the last year, with 1,828 charges between March 2019 and February 2020. Merseyside Police had the second highest number of charges at 1,605.

While most forces have seen an increase in the number of charges between 2015/16 and 2019/20, others have seen notable decreases. For instance, the Metropolitan Police saw a peak number of charges in 2016/17 of 1,152 but this has since decreased to just 339 charges in 2019/20.

Despite these figures, almost two thirds of people feel that the rules around drug driving are not being properly enforced.

The National Travel Attitudes Survey, published by the Department for Transport (DfT), found that 63% of respondents in England agreed that ‘the laws on driving whilst impaired by illegal or legal drugs, are not properly enforced’. By Graham Hill thanks to Fleet News

Skoda has developed a new Sound Analyser app for its dealers that is able to diagnose faults from a sound recording.

The app can recognise small irregularities in sound patterns and can suggest a range of measures that might be required.

It works by recording noises made by the vehicle while it is running and comparing them with stored sound patterns. In the event of any discrepancies, the app uses an algorithm to determine what they are and how they can be resolved.

Stanislav Pekař, head of aftersales at Skoda Auto, said: “Sound Analyser is a prime example of the new opportunities digitalisation at Skoda can create, even in terms of after sales. We will continue to consistently use artificial intelligence technologies to offer our customers an even more personalised service, thus enhancing the customer experience even further.”

The software is already able to recognise ten patterns – with an accuracy of more than 90%  – including for components such as the steering system, the air conditioning compressor and the clutches in the direct-shift gearbox (DSG). The app is also set up to recognise other sound patterns and will be expanded to include other service items.

Skoda has trialled the smartphone app in 14 countries – including Germany, Russia, Austria and France – since June 2019. A total of 245 Skoda dealers have been taking part in the pilot project. They have been instrumental in providing the audio recordings for the software’s ‘learning process’ and have directly contributed to the app’s development.

Artificial intelligence is a key pillar of Skoda’s digitalisation strategy. Apps like the Sound Analyser can interact with the environment, perceive and weigh up facts, or solve specific problems. By Graham Hill thanks to Fleet News

Birmingham has joined Bath in announcing a start date for its charging clean air zone (CAZ) after the schemes were approved by Government.

Birmingham’s CAZ will start from June 1, 2021, while Bath will start charging non-compliant vehicles from March 15, 2021.

Birmingham’s zone will cover an area of the city inside the inner ring road (A4540 Middleway) and once live will mean that the owners of non-compliant vehicles, which account for around 25% of the vehicles on Birmingham’s roads, will need to pay a daily charge to drive into or through the CAZ.

Birmingham was meant to introduce a CAZ last year, along with Leeds, but both were postponed until 2021 due to the coronavirus pandemic.

Cars, taxis and vans will pay £8 per day to drive into the CAZ in Birmingham, while HGVs, coaches and buses will be charged £50 per day.

Birmingham Council says it is providing a range of exemptions and financial incentives worth some £35 million to help residents, city centre workers and businesses prepare for the introduction of the CAZ.

Applications and expressions of interest for all of these schemes are now open with more information available at the website: BrumBreathes.co.uk.

Councillor Waseem Zaffar, cabinet member for transport and environment at Birmingham City Council, said: “The majority of drivers on Birmingham’s roads will not need to pay the daily charge but if you do then you may be eligible for an exemption or one of the financial incentives.  So, I would encourage everyone to check the Brum Breathes website today.”

Bath’s CAZ had been due to be switched on in November but was delayed due to the coronavirus pandemic.

Bath & North East Somerset Council says it considered air quality, traffic levels and the impacts of Covid-19 on local businesses and the economy, before agreeing the new start date of March 15, with the Government.

However, it said that the date will be monitored to account for any significant developments during the ongoing coronavirus pandemic.

The council is currently contacting more than 9,000 local businesses to help them establish whether charges will apply to their vehicles, and how to access the support on offer.

The CAZ will operate in the city centre 24 hours a day, seven days a week, 365 days a year.

Charges will apply to pre-euro 6/VI diesel and pre-euro 4 petrol vehicles, except cars and motorbikes.

Non-compliant vans, taxis and minibuses will be charged £9, while non-compliant trucks and lorries, and coaches and buses face a daily charge of £100.

The council has also announced financial support to help fleets upgrade to compliant vehicles. Local businesses including those in neighbouring authorities that have premises and/or regularly drive in the zone, can apply.

For example, it says that eligible van drivers could receive up to £4,500 in grants, plus interest-free finance, to help them upgrade to a similar, compliant vehicle.

Larger grants are available of up to £20,000 for HGVs and £35,000 for buses and coaches.

In light of Covid-19, the council has also amended the scheme so that if eligible businesses fail their initial credit check, they can re-apply once their finances have improved.

In addition, these drivers would be able to apply for exemptions on their non-compliant vehicles for up to two years.

There are also a wide range of exemptions available for hard-to-replace or special vehicles, and to support disadvantaged groups and vital services in the city, it said.

Furthermore, discounts will be available for drivers of larger, higher emission motorhomes and horse-transporters (private heavy goods vehicles) who can pay £9 instead of £100 provided they register with the council. Applications for all local exemptions and discounted vehicles will open in November. 

Leader of the council, councillor Dine Romero, said: “In 2017, the government directed us to reduce levels of nitrogen dioxide in the city in the shortest possible time. Technical work showed that a charging zone was the only measure that could achieve compliance in the time frame we were given.

“The council consulted widely on this and agreed to introduce a class C charging CAZ with traffic management at Queen Square, charging all higher emission vehicles, except private cars and motorcycles, to drive in Bath’s city centre.

“However, there is no getting away from the fact that Covid-19 has had a significant impact on many businesses and this will be an additional cost that they have to consider.

“We have worked hard to secure a considerable package of financial and other support to help business owners and I would urge them to get in touch, talk to us and find out how we can help.

“We all want clean air and the zone is a step towards our wider ambitions for Bath and North East Somerset to address air quality and tackle the climate emergency.”

Chris Yarsley, policy manager at Logistics UK, welcomed the clarity which today’s announcement provides on the date for the introduction of the CAZs in Bath and Birmingham, which the business group has been working on with the local authority for some time. This will allow logistics operators time to plan new business practices and speed vehicle replacement timelines where necessary, he said.

“News that support packages will be available for operators to assist with the acquisition of Euro VI standard vehicles is also positive encouragement for a sector which has been impacted by the downturn of the economy caused by the Covid-19 pandemic, and is only now starting to return to pre-pandemic levels of trading.

“Logistics operators remain committed to cleaning up urban air but it is important that other contributory factors to air quality are also considered in the longer term, including improvements to traffic flow patterns, retiming of deliveries and the introduction of alternatively fuelled vehicles, as well as other sources of air pollution, to the benefit of all.”  By Graham Hill thanks to Fleet News

More people are wanting to travel on their own in their own vehicle due to Covid-19, leading to an increase in private car usage for business journeys, says Jaama.

As a result, the fleet software company believes the management of grey fleet drivers should be a priority for employers.

As mentioned below if employees are now working from home then travelling to the office will now be classed as a business trip.

“Duty of care information needs to be captured and managed properly to ensure drivers are only using grey fleet vehicles which are safe, legal and appropriate for business use,” explained Martin Evans, managing director of Jaama, and director of the Association of Fleet Professionals (AFP).

“Companies who just pay allowances and mileage reimbursements without any diligence do so at their peril.”

Jaama says the buoyancy of the used car sector for four to seven-year- old sub-£10,000 cars, suggests more people are updating their own car to carry out more journeys for work purposes.

Evans continued: “Many fleet managers need to make a concerted effort to ensure they gain control of their grey fleet to avoid big problems in the future. All the signs are that the grey fleet car parc will continue to grow over the coming years.”

Fleet News has previously reported how long-term changes to the way people work could result in more employees becoming grey fleet drivers.

Paul Hollick, co-chair of the Association of Fleet Professionals (AFP), warned that this could have significant consequences for fleets, with more employees joining the ranks of those that drive their car for work, the so-called grey fleet.

Employers have a legal obligation to ensure that grey fleet vehicles are reasonably safe to use, are fit for purpose and are lawfully on the road.

Companies also typically pay Approved Mileage Allowance Payments (AMAPs) to reimburse fuel used in the course of a work trip at 45p per mile.

“Grey fleet could become a bit of a battleground, because of Covid-19,” warned Hollick. “Employees won’t be office-based (in the future), they’ll be home-based, which means their contract of employment might be changed.

“If the employee is classed as home-based rather than office-based a journey from home to the office will then become a business trip.”  By Graham Hill thanks to Fleet News

One in five (18%) of drivers aged 17-24 admit to taking part in video calls while behind the wheel, while almost a third (29%) of all drivers make and take calls on handheld phones, new research from the RAC suggests.

The illegal use of handheld mobile devices has been studied by the RAC since the 2016 Report on Motoring highlighted the issue was at ‘epidemic levels’.

However, this latest data suggests tougher penalties introduced in 2016, have failed to change in behaviour among motorists, particularly younger drivers.

With police resources stretched, four out of five (79%) drivers told the RAC they support the introduction of camera technology to identify illegal mobile phone use in the UK, with the vast majority (52%) strongly in favour of this happening.

RAC road safety spokesperson Simon Williams said: “Our figures highlight what many drivers already know – that the problem of illegal phone use at the wheel has far from disappeared.”

Furthermore, Williams says that the situation is not helped by mobile phone laws. Mobile phone use that doesn’t involve telecommunications, such as checking text messages, recording a video or changing pre-downloaded music, is not covered by the legislation, although drivers could be convicted for not being in proper control of their vehicles.

He added: “It’s significant that motorists are united in their desire to see camera-based technology, like that already in use in other countries, introduced on our roads to catch drivers who risk everyone’s safety by breaking the law in this way.

“If the behaviour of those who continue to think it’s safe to use a handheld phone while driving upwards of a tonne of metal is ever going to change, they need to believe there’s a reasonable chance of being caught.”

An increased popularity in video call services from the likes of WhatsApp and Snapchat are particularly concerning, with younger drivers more than twice as likely to say they make or receive video calls while driving – on average 8% of all UK drivers say they do this, with the figure rising to 13% among those aged 25 to 44.

Equally concerning is just under one-in-10 drivers aged 17 to 24 (9%) say they play games on their phones while driving, making them three-times more likely to do this compared to the average UK driver.

Other drivers’ use of handheld phones is the second biggest overall motoring-related concern identified in the 2020 RAC Report on Motoring research, after the state of local roads – a third of all UK drivers surveyed (32%) say the issue concerns them and strikingly nearly eight-in-10 (79%) now want to see camera technology introduced to catch drivers acting illegally.

The 29% of drivers of all ages in 2020 that say they make and receive calls on handheld phones while driving is a five percentage point increase on last year and the highest proportion since 2016.

While younger drivers are still more likely to do so (42%, down from 51% last year), those in the 25 to 44 age group are also statistically more likely to break the law in this way (32% admit to doing so, almost unchanged on 2019’s figure of 33%).

More positively, the proportion of drivers admitting to other dangerous activities such as checking or sending text messages or taking photos or video appear to be reducing – although it is unclear whether this is simply down to lower overall car use this year as a result of the pandemic.

Less than one in 10 (8%) of all drivers say they text or send other messages while driving, down from 14% last year and from a high of 20% in 2016.

But young drivers are again much more likely to break the law – 15% of those aged 17 to 24 say they are doing it in 2020, although this is down substantially on 2019 (37%).

More than one-in-10 motorists (14%) this year say they check texts or other app notifications while driving, down from 17% in 2019. Among younger drivers, the proportion is 22%, down from 35% last year.

Williams said: “While there’s been a reduction in some elements of this dangerous activity, more people say they are making and taking calls now than at any point since 2016, shortly before tougher penalties were introduced.

“Our findings from 2016 were a watershed moment which led to the UK Government calling for people to make illegal mobile phone use while driving as socially unacceptable as drink-driving.

“The fact drivers still state it’s their second biggest motoring concern of all shows that more progress still needs to be made here.”

Brake, the road safety charity, is calling for a complete ban on the use of a phone when driving, including hands-free.

The road safety campaigners claim this view is supported by evidence, which shows hands-free devices impairing driving as much as hand-held and are urging the Government to provide clarity in the law, before more lives are lost.

Joshua Harris, director of campaigns for Brake said: “Any use of a phone behind the wheel is dangerous but the fact that such a large proportion of young people admit to making video calls and playing games when driving really beggars belief.

“We need clarity in the law around phone use behind the wheel, and we need it now. The Government must implement a full ban on phone use when driving, including hands-free, to make the dangers crystal clear to the public and to crack-down on this reckless behaviour. The police must also be provided with the right tools and investment to enforce the roads effectively.

“In the wrong hands, a car is a lethal weapon and even a moment’s distraction from the road can have catastrophic consequences. More than 75 people are killed on UK roads every day and with driver distraction levels seemingly on the rise, the Government must step in and act, now.” 

Inspector Frazer Davey, of the Avon and Somerset Police Roads Policing unit, said that the importance of concentrating on driving “cannot be overstated”.

“Using a mobile phone while in charge of a car puts you and everyone else at risk. The consequences of allowing yourself to be distracted while you are driving can be catastrophic. It’s simply not worth it.”

Type of handheld mobile phone use while driving	2020 and 2019 figure (all drivers)	2020 and 2019 figure (drivers aged 17-24)
Make and receive calls	29%, up from 23%	42%, down from 51%
Send texts, social media posts or use the internet	8%, down from 14%	15%, down from 37%
Check texts, social media posts or app notifications	14%, down from 17%	22%, down from 35%
Take photos or record video	6%, down from 13%	14%, down from 35%
Make or receive video calls	8%	18%
Play a game on a mobile phone	3%	9%

Source: representative sample of UK drivers from RAC Report on Motoring. UK sample size: 3,068  By Graham Hill thanks to Fleet News

The following article appeared in Commercial Fleet but it applies not just to fleet or company car drivers, all drivers can take part to help keep the roads safer although I have my fears about drivers becoming part of a police state. But if it saves lives I guess it’s a good thing.

Fleet operators and their drivers are being urged to share dashcam footage with police to help prosecute dangerous drivers and improve road safety.

More than 10,000 clips have already been uploaded to the National Dash Cam Safety Portal since its launch last year. The platform allows road users to report serious road incidents and securely upload video footage to the appropriate police force.

In-cab camera manufacturer Nextbase, which developed the portal, told Commercial Fleet more than half (52%) of the uploads have been followed up by police, with drivers being taken to court, having to attend awareness courses, sent warning letters or fined.

“This demonstrates the success of the platform in identifying the most severe incidents and linking motorists with police in a bid to crackdown on this behaviour,” said Nextbase’s Bryn Brooker.

“The whole idea behind it (the platform) was to make the roads a safer place; it was built to remove the most dangerous drivers from our roads.”

Drivers uploading a video must first tick a box that says ‘I am willing to go to court and testify’ if required. Brooker explains this “filters out those people uploading a video of their neighbour running a red light, for example, and ensures that focus is on only the worst of the worst motorists”.

FLEET ROLE

TRL – formerly the Transport Research Laboratory – wants to increase the role of dashcams, and other filming devices such as smartphones, in a bid to reduce the amount of dangerous driving on UK roads by encouraging drivers to upload footage.

Dashcams can provide crucial evidence to TRL’s expert witness and investigations team, but senior consultant Victoria Eyers told Commercial Fleet that working in collision investigation, the “ultimate aim is improving road safety”.

She believes commercial fleet operators using the technology could play a vital role in improving road safety by sharing video footage of dangerous driving, which is witnessed by their drivers.

Eyers explained: “It’s about volume; the more miles of driving you record, the greater the chance of recording examples of bad driving.

“Fleet operators that are covering much higher mileages than a private motorist have the potential to record more instances (of dangerous driving).

“They could, potentially, be a vital source of footage as long as it can be dealt with within the 14-day limit for some offences.”

Auto Windscreens began using the technology across its commercial fleet in 2016 with 340 commercial vehicles and 59 cars fitted with devices from sister company VisionTrack.

Group fleet manager, Shaun Atton, said: “We use the 24/7 managed service; there is a team which specifically reviews our footage and events. If one of our vehicles is involved in an RTI (road traffic incident) then the team raise the FNOL (first notification of loss) with our insurers. This allows us to control costs by having early access to the footage and sharing with relevant parties.”

Furthermore, Auto Windscreens’ drivers can make use of an alert button should they witness any kind of event, which automatically uploads a video for the teams to review.

POLICE RESOURCE

Currently, the majority of police forces – 33 of 45 in the UK – have signed up to the Nextbase initiative, with many individual forces also having their own portals on individual websites.

They have been promoted through Operation Snap, in an effort to encourage more people to upload examples of dangerous driving.

Her Majesty’s Inspectorate of Constabulary and Fire and Rescue Services (HMICFRS), in a recent report on roads policing, said that video footage recorded on dashcams and helmet cameras was a “cost-effective way” in which forces can deal with road traffic offences.

However, it found examples of forces that had adopted the scheme without enough consideration of potential demand and the resources needed to meet it.

In some forces, it said, “support functions were overwhelmed by the number of submissions”.

This resulted in some being unable to meet the legal requirement to notify registered keepers of vehicles of potential prosecutions.

In others, the process for submitting footage was difficult and there was little or no contact with the people who had been motivated enough to provide it.

The report concluded: “There are obvious benefits to the scheme, but it must be properly resourced and there should be clarity on how and when submitted footage will be used.”

Eyers agrees that resourcing is an issue, despite the National Dash Cam Safety Portal reducing the amount of time it takes police to process clips. Nextbase estimates it saves an average of eight-10 hours of police time for each case.

“If resources could improve in the future then the police could potentially increase the number of prosecutions that result from them,” said Eyers.

Responding to findings of the HMICFRS report, the National Police Chiefs’ Council lead for roads policing, Chief Constable Anthony Bangham, said: “Forces are working hard to target those who use our roads dangerously or to commit crime, but we know there is more to do.”

FLEET BENEFITS

The presence of vehicle technology in general has increased significantly in the past decade, with telematics now said to be in more than 60% of commercial vehicles.

“This data can be used effectively to improve driver performance and reduce claims costs by identifying higher risk drivers so interventions can be provided to change driver behaviours and reduce risk,” explained Jon Dye, director of underwriting for Motor at QBE Europe.

“Now we see technologies merging together to the new trend of video telematics. This provides the fleet with a single box solution, and for the insurer it provides a wealth of valuable data for risk management and claims purposes.

“The hope is that as the use of the technology improves, we can drive down the frequency and severity of claims.”

Dashcams have fundamentally changed the way motor claims can be handled. Dye said: “In the past, we had to take the driver’s word for what happened in an incident, which presents challenges. We were often confronted with a pencil sketch of road layouts and positions of third-party vehicles, which also had its challenges.”

Dashcam footage, however, allows insurers to view the incident exactly as it happened, applying the industry’s technical expertise to consider road conditions, speed of travel, visibility, reactions and behaviour of drivers.

“This is factual primary evidence which enables us to make accurate and fair liability decisions,” said Dye. “Dashcam footage also provides additional insights such as parties involved, passenger numbers and speed of impact so we can consider injury likelihood and extent which gives us an added layer of counter-fraud claims management.

“In seconds, we can often see exactly what happened and who was at fault, which means we can settle claims significantly faster and, therefore, at less cost.”

By using video telematics technology, Dye says QBE’s customers also raise the “effectiveness of their fleet and gain valuable intelligence about their employees’ driving”.

“This can be used to inform driver training, improve fuel economy, reduce wear, reduce accident risk and enhance productivity.”

Furthermore, it can be reflected in lower premiums, bringing additional savings to a fleet’s bottom line. By Graham Hill thanks to Commercial Fleet

I warned of this situation even before we voted to exit the EU. Whenever the EU arranged a trade deal with a country outside the EU bloc in order for the goods (not just cars) to be considered European and therefore qualify for free tariffs the majority of the product, in this case the car, had to be manufactured within Europe.

Some reports suggested 51% others as high as 60% had to be manufactured within the EU. I raised the question at the time that whilst we would possibly end up with a deal with Europe resulting in duty free sales of cars both to and from the EU it still meant that we would be outside the EU.

So what did this mean? Whilst in  Europe we have movement of components backwards and forwards but as long as the majority of the cost of a car was sourced in Europe it met the conditions attached to free trade with other countries.

So let’s look at an example, not genuine but for illustration. The EU has a Free Trade deal with South Korea. Mercedes sell cars to South Korea duty free based on the cars being predominantly manufactured in Europe by value. So currently the Mercedes is made using UK parts, say dashboards, screens, interiors etc. all considered to be EU parts.

The UK content accounts for say 10% of the cost of the car contributing to say 55% made in the EU. The rest is sourced from say China, India, US etc. Once out of the EU the EU content drops to 45% as we no longer contribute to the EU portion which means that the car now falls outside the free trade rules and becomes subject to duty charges.

I was ignored at the time as I was told that this would all come out in the trade deal. It hasn’t and could easily lead to European manufacturers replacing UK parts with parts manufacture in the EU.

And it gets worse.

When we manufacture items in the UK we often source components from outside the EU but under the rules of origin we have been able to use parts from outside the UK but the finished item can still be sold as British. The technical term is Cumulation.

It seems that many of the components used in UK car manufacturing come in from Turkey and Japan. It seems that according to our chief negotiator David Frost the EU has thrown out the practice of cumulation insisting that 60% of the component cost of anything sold to the EU must be sourced in the UK to qualify for free trade.

Component parts from Turkey and Japan that have traditionally been regarded as part of ‘made in the UK’ under cumulation rules will in future fall outside the UK content. Which means that whilst we could have a free trade deal between us and the EU if vehicles don’t contain sufficient UK components to meet the rules, tariffs will have to be paid.

This will certainly be bad news for Jaguar Landrover, Ford, Nissan and Vauxhall all of which use a lot of parts from Turkey and Japan and sell many vehicles into Europe.

Frost has also confirmed that the EU has rejected the UK’s request for electric cars, batteries and bicycles to be treated leniently under the rules of origin if the majority of components come from elsewhere.

Sadly it seems that the originally agreed Theresa May withdrawal agreement had addressed and resolved this issue – according to the Guardian. 2 years ago the average British produced content of cars built in the UK was about 44% which means they will all fall foul of the country of origin rules.

As I understand it if we come out with a deal, components that are made in the EU that feed into British made items will pass the rules of origin test but components from outside the EU won’t in the future. We have some difficult times ahead. By Graham Hill

Every so often I receive directions to dealerships by solicitors to protect them from consumer claims. Anything to avoid carrying out a repair or paying back money. In this missive, they explain what a dealer should do when it comes to carrying out repairs as a gesture of goodwill.

Dealerships often have a policy on when they will allow goodwill repairs.  They may be offered because the warranty has recently run out, the problem is recurring due to possible driver error, or because the customer just likes to complain and it gets them off your back.

Most customers will accept goodwill gestures for what they are, a goodwill gesture and not a legal obligation. But there is always one customer who tries it on, pushing to get all they can out of you, taking advantage of your generosity.

There is a danger that you carry out a goodwill repair to something that didn’t exist at the point of sale or has been described as falling within the constraints of the Consumer Rights Act, giving the customer the impression the problem is the dealer’s responsibility and the problem existed when they bought the car.

By carrying out a repair, you are potentially taking ownership of the problem. The repair must resolve the problem brought to you in the first place or else you could be pursued to court on the basis that your repair caused the fault that is now being complained about. 

A goodwill repair can blow up in your face as it could infer an extension to the warranty or that there is a warranty on the parts that you fit.  This is made worse if you suspect that the problem has been caused by the customer driving or modifications carried out.

Your repairs could mask the true cause of the original problem and make it difficult to prove further down the line. 

If legal proceedings are issued by the customer, goodwill repairs can also make it more difficult in your defence to argue that there was nothing wrong with the vehicle when sold. Judges don’t generally need too much persuading to conclude that a vehicle was faulty at the point of sale.

This doesn’t mean that goodwill repairs should not be carried out. They are an important tool in generating loyal customers, especially as for many consumers it’s how a complaint is dealt with that can say far more about you than how the sale was dealt with.

However, it is important you document your decision by making it clear it is a goodwill repair – it is not under the warranty, there is no warranty for any new parts fitted as part of(s) provision, and it is in no way an admission the vehicle has any defects or issues. By Graham Hill