Ultra-Rapid Public Charging Costs Reduce During The First Quarter Of 2023

Thursday, 20. April 2023

There has been a 15.6% reduction in off-peak ultra-rapid electric vehicle (EV) charging since the start of the year, according to the March 2023 AA EV Recharge Report. 

Prices have fallen from 71p/kWh in January to 64p/kWh in March.

Furthermore, flat rate prices for slow chargers, which are traditionally found in residential areas where there is no dedicated off-street parking, dropped by 2p/kWh with the price sat at just a penny above the Energy Price Guarantee for domestic electricity costs (35p/kWh versus 34p/kWh).

Flat rate rapid charging costs, however, increased by 1p/kWh between February and March to 67 p/kWh.

Elsewhere, all other flat rate costs, peak and off-peak prices remained static.

Jack Cousens, head of roads policy at the AA, said: “The second consecutive month of falling prices on the fastest types of charging is great news and is further boosted by flat rate slow charging almost meeting parity with domestic electricity costs.”

AA EV Recharge Report, March 2023 – Flat Rates

Charge TypeSpeedMarch (p/kWh)February (p/kWh)Difference (p/kWh)Cost to charge to 80%Pence per mile (p/mile)
DomesticUp to 7kW34340£13.607.64
SlowUp to 7kW3537-2£14.007.87
Fast8-22kW53530£21.2011.91
Rapid23-100kW67661£26.8015.06
Ultra-rapid+101kW7071-1£28.0015.73

AA EV Recharge Report, March 2023 – Peak and Off-Peak rates

Charge TypeSpeedMarch (p/kWh)February (p/kWh)Difference (p/kWh)Cost to charge to 80%Pence per mile (p/mile)
Slow off-peakUp to 7kW37370£14.808.31
Slow peakUp to 7kW72720£28.8016.18
Fast off-peak8-22kW57570£22.8012.18
Fast peak8-22kW75750£30.0016.85
Rapid off-peak23-100kW57570£22.8012.81
Rapid peak23-100kW75750£30.0016.85
Ultra-rapid off-peak+101kW5152-1£20.4011.46
Ultra-rapid peak+101kW6467-3£25.6014.38

Calculations based on adding 80% to a Vauxhall e-Corsa, 50kW, with a WLTP range of 222 miles. Adding 80% range equates to 178 miles of range. By Graham Hill thanks to Fleet News

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Utility Companies To Be Fined For Leaving Potholes After Work

Saturday, 8. April 2023

The Government has introduced new rules to clamp down on utility companies for leaving potholes behind after carrying out street works.

New regulations came into force on Saturday (April 1) for a performance-based inspection regime to ensure utility companies resurface roads to the best possible standard after street works.

Ministers say that this will potentially prevent thousands of potholes from developing in the future.

Currently, about 30% of utility companies’ street works are inspected regardless of how well those street works are carried out. Under the new “street works regime” utility companies will be assessed on the quality of their road repairs after carrying out street works, with the best companies inspected less and the worse-performing companies inspected more, based on their performance.

As a result, companies that leave behind roads in poor condition could see 100% of their street works inspected.

With highway authorities now charging £50 per defect inspection and a further £120 for follow-up inspections, ministers are hoping that poor performing companies will now be incentivised to perform better to avoid incurring high financial charges.

While the average failure rate for street works by utility companies is currently 9%, some of the worst performers are failing inspections by as much as 63%.

Other reforms in the inspection framework include mandating better live updates on roadworks to help drivers plan ahead.

The move will focus on telecom companies in particular, which the Government says is the worst performing sector – responsible for nearly 13% of poor street work repairs.

The measures, it says, will ensure these companies are checked more regularly until they can bring about noticeable improvements.

Transport secretary Mark Harper said: “We’re investing more than £5.5 billion over this Parliament to maintain roads up and down the country, and today’s measures are yet another example of how this Government is on the side of motorists and other road users, leaving no stone unturned in the fight against the plague of potholes.

“The new street works regime is a victory for all road users, with motorists and cyclists able to enjoy smoother, safer, and less congested journeys as we continue to level up transport across the country and grow the economy.”

More than £14bn to fix backlog

The new regulations and funding come after a report highlighted how local authority highway teams in England and Wales require more than £14bn to fix the backlog of road repairs.

This year’s Annual Local Authority Road Maintenance (ALARM) survey, published by the Asphalt Industry Alliance (AIA), made bleak reading for fleets facing costly repairs for pothole damage.

Average highway maintenance budgets across England and Wales increased by 4.5% to £25.8 million per authority. However, more than half (53%) of local authorities reported a cut or freeze in their highway maintenance budget.

In fact, when inflation is taken into account, the total highway maintenance budget of £4.33bn represents a cut in real terms.

The rising costs, due to these inflationary pressures, have resulted in engineers being forced to postpone or cancel road schemes to make savings.

The data also showed that in the last year, the gap between what local authorities received and what they said they would have needed to keep roads to their own target conditions and prevent further decline is now £1.3bn – a jump of more than 20% on last year’s figure and the highest amount reported in 28 years of successive ALARM surveys.

The Government announced an extra £200m for pothole repairs in the Budget. 

RAC head of roads policy Nicholas Lyes said: “Potholes not only cause expensive damage to vehicles but are potentially lethal to those on two wheels.

“Utility companies have a responsibility to ensure roads are properly repaired after carrying out essential maintenance, but unfortunately far too many roads are left in a substandard condition.

“Introducing new regulations to encourage repairs to be done to a higher standard first time around will benefit all road users.”

Accurate data on live works

The new measures being announced by the Government also require utility companies and local authorities to provide the Department for Transport’s street manager service with more up to date and accurate data on live works, including at weekends.

Companies will be asked to provide information about when works start and stop at weekends and all local authorities must share start/stop information about their works.

This will update sat navs and other apps so company car and vans drivers are aware of where street works are and can avoid those areas.  By Graham Hill thanks to Fleet News

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Ever Wondered About Salary Sacrifice For Electric Cars?

Saturday, 8. April 2023

There has been a great deal of discussion recently about this subject and whether it’s a product worth considering? I’m not in favour for reasons that are generally not mentioned. You are often restricted to a limited range of vehicles and even to a single manufacturer.

As the car is leased by the company they use a group insurance policy which means you could lose your no-claims discount. You are generally expected to keep precise mileage records. You should never replace a company car with Salary Sacrifice because although the costs are taken out of your wages before tax and NI deductions all running costs are effectively paid for by the company when all you pay is benefit in kind tax out of your net income.

There are also pension, sickness, maternity and paternity leave implications and when you change jobs you need to explain your income to the new employer as your gross income will be shown net of the salary sacrifice. Then there’s the question of what happens if you change jobs, who will be responsible for the early termination of the car. Leasing companies will not transfer the agreement that is a corporate agreement in your employer’s name into the name of you the employee.

But it’s your choice so here goes:

Salary sacrifice (sal/sac) is increasing in popularity among companies as a way of giving employees a cost-effective way of accessing a low emissions car. But a high uptake is not always guaranteed. We look at how to make a scheme work for both businesses and staff…

1 Make sure you/your employees understand how it works

Sal/sac works in a different way to traditional car funding – both for companies and retail customers.

The schemes enable businesses to provide employees with access to new vehicles by ‘sacrificing’ some of their pre-tax salary each month over a fixed term.

As well as leasing the vehicle, the fixed sum usually also includes other running costs such as insurance, vehicle excise duty (VED) and maintenance.

Participants do have to pay benefit-in-kind (BIK) tax on their vehicle, but the current tax regime makes sal/sac a cost-effective way to get behind the wheel of a fully-electric or ultra-low emission car.

David Carey, product management and development at Alphabet (GB) says:

“By selecting a low- or zero-emission car employees can pay comparatively little tax – effectively making their money go further, particularly when compared with a car loan or hire purchase made after tax.

“So, while an EV may initially appear to be more expensive, lower running costs coupled with significant reductions in BIK and the income tax and national insurance contributions-free treatment of the ‘sacrificed’ amount can result in long-term savings for participating employees.”

From the moment a scheme is launched, it is essential to ensure total clarity surrounding topics such as early termination fees, maternity leave and what happens when an employee leaves the company.

Organisations can take steps to minimise the impact and costs of any of these events.

“This can be via policy, by paying for the risks from the scheme or insuring the risks through a number of different products in the market such as termination insurance or payment support products,” says Christopher Caddick, head of business development at JCT600 Vehicle Leasing Solutions (VLS).

Organisations should also make employees aware of how sal/sac can be affected by potential tax changes. For example, as BIK rates rise, so will their monthly company car tax bill.

This became apparent after Chancellor of the Exchequer Jeremy Hunt provided BIK rates up to April 2028 in his Autumn 2022 Statement – with values for battery electric vehicles (BEVs) increasing to 5% over this time. 

Carey adds: “Although the Autumn Statement set out an incremental increase to BIK tax rates of 1% per year from 2025, the average electric vehicle (EV) driver on a £35,000 list price at the 20% tax rate will only be paying an extra £6 a month from April 2025. 

“This provides much needed certainty post-2025 and means employees can still benefit from favourable tax rates for EVs through salary sacrifice schemes when compared with petrol or diesel vehicles.”

2 Consider how to integrate the scheme into existing operations

Sal/sac schemes must, invariably, be integrated into existing operations in the most appropriate way possible, but what is the best way to achieve this?

For example, do you want the scheme to be linked to an existing portal? Or would you prefer colleagues to access it via a standalone website where everything – from educational support documents to ordering and ongoing management – is available? 

“If you are looking to launch a salary sacrifice scheme alongside any other car schemes in your business – be that traditional company car, cash allowances or employee car ownership schemes – then it is worth having all these schemes available in one portal where employees can weigh up the benefits and costs of each scheme, hopefully alongside one another,” says JCT600’s Caddick.

“The ultimate aim is to help colleagues make informed choices that are right for them. 

“These portals should also deliver the full employee journey from scheme details to access documents, ordering and managing vehicles.  Managing several schemes across various portals can become confusing and more complex than it needs to be for both a business and its employees.”

3 Be clear on why you’re introducing sal/sac

Sal/sac schemes have traditionally been perceived as a staff benefit to allow employees who are not eligible for a company car to access a new vehicle. But an increasing number of companies are using them to replace their traditional company car scheme, such as Willmott Dixon (see case study, below).

So what must companies be mindful of? Paul Gilshan, chief executive of Tusker, says:

“It is worth viewing a salary sacrifice scheme as an inclusive, rather than exclusive, benefit from the outset, which may necessitate re-looking at pre-existing company policies around eligibility.”

Gilshan adds that an EV-focused sal/sac benefits scheme can have a huge impact on lowering overall emissions for a business. Tusker has found that companies frequently look to market the schemes on the both the strength of its environmental credentials as well as the economic benefits to employees.

4 Build a communications plan

Ensuring newly-launched sal/sac schemes are explained to employees clearly is essential for both their immediate and long-term success.

Any communications plan should be based around the best channels available within your organisation. Does it have an intranet or use regular email newsletters? Would employees prefer videos to browse in their own time, or would webinars or live, in-person seminars be more suitable?

“A communications plan should be tailored to you and your employee population,” says Caddick.

“What works well for one business will not necessarily work well for another.

“Build a communications plan based on the tools you have available, combined with the knowledge of how best to communicate with employees.”

Tusker has witnessed a huge take-up of webinars following the Covid-19 pandemic, which allows large numbers of drivers to learn more about the scheme in a short space of time. It also produces a number of videos which are able to be hosted on intranet sites, or via links to its YouTube channel which help employers explain the scheme to employees.

“Equally, in-person launch events, often featuring a selection of available vehicles and product experts, can be very popular, and often result in a high rate of employee engagement,” he adds.

5 Choose the right sal/sac provider

Selecting the right partner who is able to tailor your sal/sac scheme to meet your objectives and requirements pays dividends.

For example, do they have access to the vehicles you require? Are they fully familiar with all the back-office functions that will be necessary? Can they support your growing requirements in full?

For peace of mind, it is important to ensure your provider has a proven history of delivering sal/sac schemes across businesses of all sizes.

“Implementing a salary sacrifice scheme often involves working with multiple internal stakeholders inside a company as well as alongside any other existing benefits suppliers, so robust processes and experience of these complex transactions are crucial to a smooth launch,” says Tusker’s Gilshan.

“Equally, it is important to ensure the scheme is as risk-free as possible for the employer, as salary sacrifice schemes can be opened up to far more employees than a traditional company car scheme.”

Selecting a provider which has established relationships with car manufacturers and suppliers can be immensely beneficial.

JCT600’s Caddick adds: “There are various solutions available on the market today, but, ultimately, you’re not procuring a supplier’s product, but a partner to your new scheme for your employees.

“Look for a provider with knowledge and experience in delivering employee-focused car schemes, clear roles and responsibilities and a focus on the overall solution.

“Ensure they have the latest technology to deliver a seamless employee journey.

“But, above all, look for a team which will support your employees through the scheme, while delivering service in line with values aligned to your business.”

Case study: Willmott Dixon

Construction and property services business Willmott Dixon switched its car funding policy from a standard three-year operating lease to salary sacrifice at the start of 2021.

Built and launched by fleet management company CLM in consultation with Willmott Dixon’s sustainable transport team, the company is using its sal/sac scheme to ensure rapid carbon emission reductions thanks to the significant tax advantages for electric vehicles (EVs). 

More than 600 drivers have already opted into the scheme, with half of those previously having taken the cash allowance. 

“I believe the scheme’s popularity will continue increasing as replacement cycles on the pre-existing company car scheme come round,” says chief financial officer Graham Dundas (pictured), who also chairs the sustainable transport team.

“We already have 150 more drivers in the salary sacrifice scheme than opted for the legacy company car scheme before its launch.

“It’s evident that colleagues really value the option to access low emission vehicles, preferably EVs, in a tax-efficient way.” 

The average CO2 emissions of the cars available through the scheme is 15g/km, and it is currently proving most popular among employees in higher tax brackets.

Dundas says the key to successfully implementing a salary sacrifice scheme is ensuring your organisation and sal/sac partner have the most comprehensive understanding of drivers’ requirements and the journeys they undertake. It is equally important schemes are explained clearly to all colleagues from the outset to secure fully-informed decisions.

 

“We’ve always recognised that take-home pay and the kind of car you drive are emotive topics – and there were always likely to be a lot of questions,” says Dundas. 

“Consequently, it’s important that colleagues clearly understand what a sal/sac scheme means for them from the moment it’s launched.”  

Willmott Dixon worked with CLM to initially carry out virtual presentations “to each of our regional offices which were exceptionally well received”, adds Dundas.

“We’ve also listened to all the feedback – and intend to continue doing so. 

“So far, we’ve adjusted our mileage reimbursement rates for EVs as HMRC-approved rates were slow to respond to rising costs, and we intend to become more flexible with choice lists for more junior people to ensure their requirements are catered for. 

“I believe you do need to monitor your sal/sac scheme regularly once it’s operational to ensure it continues to meet your organisation’s and drivers’ requirements – but this is a small price to pay for the benefits that accrue.”  By Graham Hill thanks to Fleet News

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Should e-Scooters Be Banned In The UK Following The Ban In Paris?

Saturday, 8. April 2023

Residents in Paris have voted overwhelmingly in favour of banning rental e-scooters amid growing safety concerns, with 459 injuries and three deaths in the city last year.

Some 90% of residents who voted in the French capital were in favour of a ban and findings in IAM RoadSmart’s safety culture report, which surveys more than 2,000 UK motorists on opinions of key road safety issues over time, discovered that e-scooters could be facing the same fate in Britain, if public opinion is anything to go by.

More than two thirds (68%) of respondents to its poll said they would support a law totally banning e-scooters.

The same proportion (68%) also stated that the growing number of e-scooters on the roads is a threat to their road safety, with three quarters (74%) of those over 70-years-old being the age group feeling most threatened by the device, compared to more than half (59%) of 17–34-year-olds.

Responses varied according to region, with residents of London and the West Midlands among those who feel most under threat by the growing number of e-scooters.

Not all of those who feel under threat by e-scooters are calling for a blanket ban on the machines, but are instead calling for smarter and stronger ways for them to be used more safely, with 86% of those surveyed stating that they are in support of tougher regulation of the devices.

This includes a law restricting e-scooters to cycle lanes only, enforcing age limits on those who are allowed to use them and introducing strict design and construction standards.

It comes after the latest Department for Transport (DfT) statistics revealed that there were 1,434 casualties involving e-scooters in Britain in 2021, of which, 10 people were killed.

This is compared to 484 casualties involving e-scooters in 2020, meaning casualties have almost tripled in just 12 months.

Neil Greig, director of policy and research at IAM RoadSmart, said: “The people of Paris voiced their opinions on e-scooters loud and clear at the voting booths, and our research demonstrates that British road users have similar concerns to our French counterparts.

“We still await the Transport Bill, meaning there is still no regulation of these vehicles, which can go up to 30mph in some cases.

“Given the number of collisions we have seen on our roads and pavements involving e-scooters since they have been introduced, the concerns of the public are more than understandable.

“The Government must act faster to regulate e-scooters before more injuries are sustained and lives are tragically lost.

“In the meantime, we would encourage those who wish to use rental e-scooters to ride with caution, vigilance and due attention, keeping themselves, other motorists and pedestrians safe.”

New safety and technical standards were recommended for e-scooters last month, after the increase in deaths and serious injuries.

They included a 20km/h (12.5mph) factory-set speed limit, a ban on passengers and pavement riding, compulsory helmets and a minimum age of 16.

The recommendations were set out in a new report from the European Transport Safety Council (ETSC) and the UK Parliamentary Advisory Council for Transport Safety (PACTS).  By Graham Hill thanks to Fleet News

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Car Manufacturers Say That They Won’t Follow Tesla And Decrease Prices (Update)!

Saturday, 8. April 2023

Tesla’s January price cut could not have come at a worse time for the used electric vehicle (EV) market, with the full impact not yet known, according to pricing experts.

The manufacturer announced overnight it was cutting the prices on the Model Y and Model 3 by thousands of pounds.

Price reductions were introduced in the US and European markets, with the Model 3 falling to £42,990 and the Model Y to £44,990, representing drops of £5,550 and £7,000 respectively, for the entry level models.

Prices were also reduced by as much as £8,000 on models higher in the range like the Model Y Performance.

Tesla’s price drop, however, comes after prices were increased last year. The manufacturer upped the prices of the Model 3 and Model Y in the UK by more than 4% – £2,300 on average – in June 2022.

Then the entry-level rear-wheel drive Tesla Model 3 saloon was the subject of a £2,500 price increase from £45,990 to £48,490, while the long-range variant of the Tesla Model Y SUV increased by £2,000 from £55,990 to £57,990.

Following the recent reduction, however, the price of a one-year-old standard range used Tesla fell by £1,400 overnight, from an average of £38,994 on January 15, to £37,599 on January 16, according to data from Auto Trader.

USED EV MARKET

Philip Nothard, insight and strategy director at Cox Automotive, told Fleet News: “With volumes of used EVs entering the market increasing by a reported 800% at the end of 2022, Tesla’s re-pricing strategy couldn’t have come at a worse time and the ripples have yet to reach the shore.

“Tesla has a different strategy from incumbent OEMs and is apparently less concerned about residual values (RVs) than its peers.

“It doesn’t have the same retail infrastructure as the incumbents, and, while that has many observers scratching their heads about how used Teslas will fare in the used market, it also means they don’t have retailers to appease either.”

However, Nothard added: “If any OEM can navigate these stormy waters, it’s probably Tesla.”

The used battery electric vehicle (BEV) market, while recording its best-ever annual performance last year with a record 71,071 units sold, a rise of 37.5%, still represents a small proportion of overall used sales.

Used BEV transactions equated to just 1% of the used market in 2022, up from 0.7% in 2021. Sales of hybrid electric vehicles (HEVs) rose 8.6% and plug-in hybrid electric vehicle (PHEVs) transactions were up 3.6%.

Combined, they represented 4.1% of the market (up from 3.3% in 2021).

NEGATIVE IMPACT ON RVs

In such a fledgling market, dramatic reductions in used values for BEV models, not just Tesla, have been reported on some models in recent weeks, according to Cap HPI.

It says that the fall in RVs was entirely expected as part of a market adjustment to values that were previously unsustainably high and does not herald a collapse in demand for BEVs.

The used value for a one-year-old Tesla Model 3 long range with 20,000 miles on the clock has fallen by £11,600, or more than 25%, since the middle of September.

Dylan Setterfield, head of forecast strategy at Cap HPI, explained: “Used values for many BEV models were strong through 2022.

“In many cases, nearly-new retail values were above list price, some by a considerable margin.

“This was clearly unsustainable and our forecasts reflected that, with large negative adjustments applied.”

Looking beyond Tesla, Nothard says there is no doubt that used EVs are under “scrutiny and pressure”, and they will be so for the foreseeable future.

He explained: “It’s a complex landscape with a demand versus supply imbalance, the price disparity between EV and ICE (internal combustion engine) and ongoing consumer concerns about charging infrastructure is coinciding with inflation and a cost-of-living crisis.”

However, he stressed: “It’s important to remember that all used vehicles, including electric ones, increased in value post-pandemic because of the shortage of new cars in the market. So, while we are in a depreciating marketplace with values dropping, prices remain inside the expected parameters in the main.

“The other dynamic we’re seeing is a firming up of ICE vehicle values. As we enter a third year in new vehicle supply shortages, coupled with a decline in the number of petrol and diesel derivatives in the overall new vehicle parc, we could see used ICE values increase as demand remains strong.”

He added: “We still have to determine used EVs’ final position in the market, and there may be some pain before finding the right level. But their prices will stabilise at some juncture – it’s a matter of when and not if.”

Jon Lawes, managing director at Novuna Vehicle Solutions, told Fleet News the used EV market had experienced price drops in recent months as the number of used vehicles returning to the market started to increase.

“The decrease in Tesla list prices looks like it has had a negative impact on confidence, but, in many cases, the used value reductions have just shifted models to more sensible levels,” he said.

“In general, EVs still command a significant premium over comparable ICE vehicles and, while the Tesla price drop may have shaken confidence in the market today, leasing companies are forecasting residual values for three-and-four-years’ time for new contracts.

“Price reductions are bound to be a hurdle to navigate on the road to EV mass adoption.”

FLEETS MANAGE FALLOUT

Lorna McAtear, fleet manager at National Grid, told Fleet News at 10, that, following the Tesla price cut, she had received a “barrage” of emails.

“Tesla is one of those companies that, as a fleet manager, you love and hate in equal measures,” she said.

“It’s an absolute headache, but we will end up with more vehicles back in price brackets that our drivers can get a hold of again in their banding.”

Meanwhile, Association of Fleet Professionals (AFP) chair Paul Hollick says both leasing companies and fleet managers hoped it would have been more of a “contained change”.

“It just got dropped on us, which, for me, proves that Tesla is not a car for corporate fleets,” he said. “It’s a retail solution.”  

Hollick says it could also be an issue for those that have just bought Teslas or have them on order at previous prices.

“The differences between the new and the old prices are substantial, and a move of this kind does, unavoidably, create ill-feeling,” he said.

“The company would do well to introduce some kind of redress.”

A Tesla spokesperson said that any customers with orders should contact their sales representative to discuss the price changes.

In a statement, Tesla said: “Our focus on continuous product improvement through original engineering and manufacturing processes has further optimised our ability to make the best product for an industry-leading cost.

“As we exit what has been a turbulent year of supply chain disruptions, we have observed a normalisation of some of the cost inflation, giving us the confidence to pass these through to our customers.”

Lawes believes that Tesla’s price drop is a sign that they are facing competition from existing and new entrants, and the recognition of a price point that could be unattainable to many. “The demand for their product is still there, they just need their target audience to be able to access it,” he said.

NOT FOLLOWING TESLA’S LEAD

The Tesla Model Y was the most popular EV in Europe in 2022, according to data from Jato Dynamics.

The manufacturer sold 137,052 Model Ys in Europe giving it significant headway against rival vehicles. The second best-selling EV was the Tesla Model 3, with 91,475 registrations.

However, Tesla’s combined performance was not enough to secure the position of leading EV manufacturer.

Volkswagen Group was the best-performing brand by volume, with 349,200 EVs registered across Europe in 2022.

Fleets hoping that other EV makers would follow Tesla’s lead in cutting the prices of plug-in products will be left disappointed.

Stellantis, the parent company of several major brands, including Vauxhall, Citroën, Peugeot, Fiat and Alfa Romeo, told Fleet News it had “no plans” to follow Tesla’s lead by cutting prices.

It was a similar story at Volkswagen Group, responsible for VW, Audi, Škoda and Seat brands, which confirmed it would not be cutting plug-in prices any time soon.

“Our BEV order backlogs carry well into 2023, with some models already sold out for 2023,” said a VW Group spokesperson. “Our priority now is to deliver the vehicles to customers.

“We will continue to closely monitor further developments in both the cost and market situation for all-electric vehicles in all core markets and take appropriate action if necessary.

“As a matter of principle, we do not focus on the quantity of our business, but on its quality. High profitability, therefore, takes precedence over high volumes.”

Kia UK also has no plans to cut prices on any of its current EVs. A Kia spokesperson said: “We believe to do so would be detrimental to our relationships with private and fleet customers, and the residual values of our vehicles.”

Ford announced it was cutting prices of its electric Mustang Mach-E crossover weeks after the Tesla announcement.

However, its decision to lower pricing of the Mach-E by an average of about $4,500 (approx. £3,700), dependent on the model, will only be available in the US.  By Graham Hill thanks to Fleet News

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EV Charging Network Continues To Grow As Gridserve Opens Two New Hubs On A1.

Saturday, 8. April 2023

Gridserve and Moto have announced that two new electric vehicle (EV) charging hubs on the A1 are now open for business.

The Electric Super Hubs at Moto Washington North and South on the A1(M) each have six 350kW-capable high-power chargers, joining the Gridserve Electric Highway network of 160-plus locations. 

Toddington Harper, CEO of Gridserve, said: “We are thrilled to open our next Electric Super Hubs at both Washington North and Southbound.

“As the demand for electric vehicles and charging increases, it is vital we continue this pace to roll out the installation of high-power chargers to support EV drivers and those making the switch to electric.

“We look forward to continuing our expansion and installing hundreds more high-power chargers across the network.”

Since 2021, the partnership has delivered more than 320 EV charging points with 142 of those being high-power EV charging points across 18 locations.

Moto chief executive, Ken McMeikan, said: “As the largest UK motorway services operator, we are continuing our mission to transform the UK’s rest stop experience and reducing range anxiety by revolutionising the EV charging experience for motorists on motorways is at the heart of our plans.

“We’re delighted to be able to continue our roll-out of the high-power charging hubs and we will be opening many more hubs at our motorway service areas across the country throughout the remainder of this year.”  By Graham Hill thanks to Fleet News

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England’s Most Dangerous Roads Receive Funding To Improve Safety

Saturday, 8. April 2023

The Government has announced £47.5 million of new funding to improve safety on 27 of the country’s most dangerous roads.

Through the third round of the Safer Roads Fund, the Department for Transport (DfT) says that 27 new schemes will be delivered, driving forward safety improvements such as re-designing junctions and improving signage and road markings.

To date, £100m has been provided through the programme to improve the 50 most dangerous roads in England, the majority of which are rural roads.

Some of the improvements already made include improved signage, safer pedestrian crossings and better designed junctions.

Transport secretary Mark Harper said: “Britain’s roads are some of the safest in the world, but we are always looking at ways to help keep drivers and all road users safe.

“We’re injecting £47.5m so that local councils around the country have the support they need to keep everyone safe, while reducing congestion and emissions and supporting local economies.”

The allocation of £47.5m to 27 different schemes has been based on data independently surveyed and provided by the Road Safety Foundation.

The data analysed is based on a road safety risk, looking at data on those killed and seriously injured alongside traffic levels.

According to Road Safety Foundation analysis, early estimates suggest that the £47.5m investment should prevent around 760 fatal and serious injuries over the next 20 years, with a benefit to society of £420m.

Once the whole life costs are factored in for the schemes, the overall benefit cost ratio of the investment is estimated at 7.4, meaning for every £1 invested the societal benefit would be £7.40.  

Dr Suzy Charman, executive director of the Road Safety Foundation, said: “The commitment and funding announced today is transformational for road safety teams in local authorities across the country.

“It will allow them to proactively reduce risk and make these 27 roads safer and more inviting for all road users.”

She explained: “Systematic changes have already had a big impact on road death and serious injury, for example seatbelts and airbags protect lives when crashes happen.

“In the same way we can design roads so that when crashes happen people can walk away, by clearing or protecting roadsides, putting in cross hatching to add space between vehicles, providing safer junctions like roundabouts or adding signalisation and/or turning pockets, and including facilities for walking and cycling.”

RAC road safety spokesman Simon Williams said that redesigned junctions together with clearer signage and better road markings are integral to improving safety.

However, he added: “While we’re pleased the Government is taking steps to tackle some of the country’s most dangerous routes, we remain keen to see its wider plans to reduce the number of fatalities as part of the long-awaited road safety strategy.”

Jonathan Walker, head of cities and infrastructure policy at business group Logistics UK, welcomed the Government cash to improve the safety of the roads network.

“It is now imperative that Government and local authorities work with the logistics industry to ensure that safety of road users continues to be prioritised, while maximising the efficiency of freight movements,” he added.

The latest round of funding from Government builds on its plans to recruit a specialised team of inspectors to build the country’ first ever Road Safety investigation Branch.

The team will look at how and why incidents happen and build an enhanced understanding of how we can better mitigate collisions. 

The 27 safety schemes receiving DfT funding 

RoadLocal AuthorityFunding (£)
A586Blackpool Council  1,100,000  
A35Bournemouth Borough Council  1,890,625  
A2010Brighton and Hove City Council  600,000  
A52Derby City Council475,000  
A104Essex County Council  1,360,000  
A35Hampshire County Council 6,040,000  
A5183Hertfordshire County Council  1,800,000  
A165Hull City Council  2,990,625  
A3056Isle of Wight Council  2,140,000  
A5105Lancashire County Council  920,000  
A5038Liverpool City Council  859,375  
A186Newcastle Upon Tyne City Council  3,650,000  
A6130Nottingham City Council 950,000  
A609Nottingham City Council 475,000  
A4158Oxfordshire County Council 800,000  
A4165Oxfordshire County Council 875,000  
A2047Portsmouth City Council 1,300,000  
A6022Rotherham Metro. Borough Council  750,000  
A6042Salford City Council  743,750  
A4030Sandwell Metro. Borough Council  750,000  
A625Sheffield City Council  1,425,000  
A3025Southampton City Council  875,000  
A13Southend-on-Sea Council  3,425,000  
A1156Suffolk County Council  1,275,000  
A25Surrey County Council 1,800,000  
A439Warwickshire County Council  1,320,000  
A3102Wiltshire Council  6,980,000  
  47,569,375  

By Graham Hill thanks to Fleet News

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Drivers Need Educating On New Car Safety Technology

Friday, 31. March 2023

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

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Diesel Drivers Being Ripped Off

Friday, 31. March 2023

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

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Call For Battery Health Check For Used EV Buyers

Friday, 31. March 2023

The Vehicle Remarketing Association (VRA) is calling for an industry standard battery health check to increase confidence in the used electric vehicle (EV) sector.

Consumer concerns over battery health, while not always well-informed, are real, and an accurate, credible statement on the current condition of each battery and its likely future degradation would help considerably, according to VRA chair, Philip Nothard.

“EV technology is still very new to most used car buyers, but many people have heard largely inaccurate stories about the rate at which batteries start to lose range and the cost if they fail completely,” he said.

“Our members agree that some form of industry standard battery health check would be the most effective solution, providing an accurate picture of what the consumer could reasonably expect in terms of current and future range and charging.”

Nothard explained that the motor industry knows from its experience of EVs to date that, in the overwhelming majority of cases, battery degradation will tend to be relatively low over time and will also be incremental, while total battery failure is extremely rare.

However, he said: “This is very much a matter of customer perception.”

The issue was discussed at this week’s VRA member meeting, held at Cox Automotive, Bruntingthorpe.

Titled “The Questions About EVs Remarketing Must Answer”, it featured Lorna McAtear, fleet manager at National Grid; Stuart Chamberlain, head of B2B remarketing and partnerships at Arval; Alex Johns, business development manager at Altelium; Derren Martin, director of valuations at Cap HPI; and Audrey Little, research and development executive at Arnold Clark Innovation Centre.

“We surveyed our members before the meeting and the need for an accepted battery health check was cited by 70% as a key issue that needs resolving within the used EV sector, so this is something that is very much on the agenda,” continued Nothard.

“The question from here is how we can create something relatively cheap and easy to use, has a high level of credibility, and is easily understandable by consumers.

“We are aware that some of our members have been having initial discussions with the Government and, of course, products are starting to make their way onto the market, such as those presented by Altelium at our meeting.

“What needs to happen now is that all these factors are brought together so that we can take steps forward as an industry, with wide-ranging discussions involving parties from across the remarketing sector and beyond. It would be very positive for the used EV sector if progress can be made quickly, we believe.” By Graham Hill thanks to Fleet News

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