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Ford has introduced the first hands-off driver assistance system that can be used on motorways.

BlueCruise makes its debut on the Mustang Mach-E and is approved for use on UK roads by the Department for Transport (DfT).

It enables hands-free assisted driving at speeds of up to 80mph.

The system monitors road markings, speed signs and evolving traffic conditions to control steering, acceleration, braking and lane positioning, as well as to maintain safe and consistent distances to vehicles ahead – right down to a complete halt in traffic jams.

BlueCruise is classified as a Level 2 autonomous system and can be activated on 2,300 miles of pre-mapped motorways in England, Scotland and Wales, designated as Blue Zones. Drivers must remain attentive at all times and are monitored by an infrared camera continually.

If the system detects driver inattention, warning messages are first displayed in the instrument cluster, followed by audible alerts, brake activations, and finally slowing of the vehicle while maintaining steering control. Similar actions are performed if the driver fails to place their hands back on the steering wheel when prompted when leaving a Blue Zone.

Owners of 2023 Ford Mustang Mach-E vehicles in Great Britain are the first to be able to activate BlueCruise via subscription. The first 90 days are included with the vehicle purchase and, thereafter, a £17.99 monthly fee applies.

Ford engineers undertook 100,000 miles of testing on European roads to validate latest-generation advanced driver assistance systems including BlueCruise and its supporting features, in addition to over 600,000 miles covered in the US and Canada before the system was introduced to those markets last year.

Validation drives in Great Britain helped prove out the ability to handle circumstances drivers encounter every day, such as worn-out lane markings, poor weather and roadworks.

Torsten Wey, manager for advanced driver assistance systems at Ford Europe, said: “There’s a good reason why Ford BlueCruise is the first hands-free driving system to be cleared for use in a European country: We’ve proven beyond doubt that it can support the driver while also ensuring that they keep their eyes on the road for their safety and that of their passengers while the system is active. That means BlueCruise can make other road users’ journeys more comfortable too.”

Driver monitoring system

Thatcham Research vehicle technology specialist Tom Leggett says that before BlueCruise can be enabled, a driver monitoring system (DMS), using infrared cameras positioned in the instrument cluster, will ensure that the driver has their eyes on the road.

“Crucially, the driver is not permitted to use their mobile, fall asleep or conduct any activity that takes attention away from the road,” he explained.

“This demonstrates just how important DMS is, not only in enabling current assisted driving technology like BlueCruise but also as we move towards fuller levels of automation in the future.”

He explained: “Although the vehicle can help control speed and position in lane, the driver is still wholly responsible for safety.

“It’s therefore no surprise that Ford and other car makers are looking to introduce technologies like this ahead of ‘Level 3’ automated lane keeping systems, which have experienced lingering questions around liability especially.”

Because BlueCruise users remain responsible and liable, says Leggett, a lot of the legal and technical complexities of automation and self-driving have been avoided, while still offering drivers a beneficial comfort feature that can reduce fatigue on long, monotonous journeys.

He concluded: “We would expect car makers to ensure safe adoption by way of driver education and clear messaging in the vehicle manual and on the dashboard.”

As of January 2023, car manufacturers are able to seek type approval to launch Level 3 technologies with expanded self-driving capabilities at speed of up to 80mph.

The rules previously capped the use of such systems to 37mph, but were not adopted by the UK Government. Ministers gave the green-light to allow self-driving cars last August.  By Graham Hill thanks to Fleet News

All drivers and especially fleets are being urged to make company car and van drivers aware of an emergency alert test on their mobile phones to avoid them being distracted.

The siren will sound for 10 seconds on almost every smartphone in the UK on Sunday, April 23, at 3pm.

The alert system will be used to warn of extreme weather events, such as flash floods or wildfires and only when there was an immediate risk to life.

It could also be used during terror incidents or civil defence emergencies if the UK was under attack.

Lucy Straker, campaigns manager at Brake, the road safety charity, told Fleet News: “With the emergency alert test, it is important that people know when it is happening (3pm on Sunday 23 April) so if they have to drive or ride at that time, they are prepared and understand how to respond.

“If your phone is switched on, the alert will play for 10 seconds. If you are driving when the alert occurs, please do not look at or touch your phone until you have safely parked your vehicle and turned off your engine.

“We would also recommend fleet managers inform their drivers of the alert and, if possible, schedule journeys to avoid driving when the alert takes place.”

The test message and alarm is expected to hit 90% of mobile phones in the UK. Phone users can swipe away the alert message or click “OK” on their home screen to continue using their phone as normal.

People who have their phones switched off will not receive the message – but it will sound if your phone is switched to silent.

The Government has tried to play down concerns that drivers will be distracted by the alerts, potentially leading to accidents, saying evidence from local trials of the alert shows people will wait until they are stationary to check their phones.

Straker said: “We always recommend that people turn off their mobile phone whilst driving or riding – or put it out of reach, in ‘Do not disturb/Driving mode’ or on silent – so that it is not a distraction.

“We know that any distraction that takes a driver’s mind off the road, for any length of time, is potentially lethal.”

In 2021, mobile phone use contributed to more than 116 fatal or serious collisions on UK roads. By Graham Hill thanks to Fleet News

Skid resistance, a critical measurement reflecting the friction between a vehicle’s tyre and the road surface, is indispensable for road safety as it directly influences a vehicle’s stopping, steering, and control capabilities. In the UK, the Department for Transport has set forth regulations prescribing minimum skid resistance values to guarantee safe driving conditions; however, considering the current condition of numerous roads, are these minimum standards being achieved?

Various factors can impact skid resistance, encompassing surface texture and material, road surface condition, tyre type and condition, and environmental conditions such as moisture, temperature, and road debris. Gradually, road surfaces can deteriorate and become smoother, diminishing skid resistance and amplifying accident risks, especially in wet or icy conditions.

This issue is already concerning for petrol or diesel vehicles, but driving electric cars on roads with potholes and low skid resistance can lead to disastrous outcomes.

Skidding-induced loss of control is a major contributor to numerous accidents (particularly on wet roads). Special focus should be directed towards carriageway surfaces with skid-resistant properties, especially in areas where braking is common, like intersections, roundabouts, pedestrian crossings, and bends or steep inclines.

Electric cars deliver instant traction to the wheels, which requires exceptional grip if skids are to be avoided and maximum range maintained as a result of adequate skid resistance.

Resurfacing UK roads is crucial to maintain safe driving conditions and avert accidents. The resurfacing process involves applying a new material layer, such as asphalt or concrete, over the existing road surface. This can restore skid resistance, enhance ride quality, and prolong road lifespan.

Additionally, resurfacing can improve road surface drainage, mitigating standing water and hydroplaning risks. Hydroplaning occurs when water accumulates between tyres and the road surface, causing tyres to lose road contact and making vehicle control challenging.

Several permanent and temporary fixes include:

Retexturing: Mechanical reworking of the current surface to augment frictional characteristics and skid resistance. Common methods involve removing material from the road surface using diamond grooving, shot-blasting, bush hammering, or high-velocity water blasting.

Resurfacing: Involves cost-effective thin surfacing treatments to enhance surface texture, wet road skid resistance, and seal the surface against water penetration while arresting existing road surface disintegration.

Surface Dressing: Applies a bitumen emulsion spray onto the road surface, followed by a layer of high Polished Stone Value (PSV) chippings.

High Friction Surfacing (HFS): Utilizes refractory grade calcined bauxite, a highly durable aggregate (with high PSV) for sustained skid resistance. HFS systems can be thermoplastic (hot-lay) or thermosetting (cold-lay) resin binders.

Porous Friction Course: A highly permeable asphalt layer with continuous voids, accommodating low to moderate rainfall intensities runoff. This material enhances skid resistance at high traffic speeds, minimizes water sprays, and reduces aquaplaning possibilities.

Alongside resurfacing, other measures to enhance skid resistance on UK roads include employing road markings and textures to increase road surface grip, refining drainage system design and placement, and performing regular road maintenance and cleaning to eliminate debris and optimize surface conditions.

In summary, skid resistance is a vital element of road safety, particularly for electric cars. Resurfacing UK roads is essential to preserve safe driving conditions. Consistent road maintenance and improvements can ensure that roads remain secure and navigable for all users. By Graham Hill

I’ve spoken about this a lot recently having had a test drive in a Ford Mustang Mach-E. Whilst it’s not perfect the build quality, materials and technology were easily a match for any prestige brand. As soon as people migrated from Mercedes and BMW to an unknown brand like Tesla the die was set.

Looking at the spec. and design of the VW ID7 I can’t see any traditional prestige car driver not being tempted by this amazing car. What do you think?

Volkswagen’s sleek electric ID7 upper-medium car will be almost five metres long and have a range of up to 438 miles, the manufacturer has announced.

The model, which is planned for launch this year in Europe, is one of 10 new electric models that will be launched by Volkswagen by 2026.

This year sees the introduction of a new ID3, the ID Buzz with long wheelbase and the ID7. An electric compact SUV and the production version of the ID2all are planned for 2026.

Thomas Schafer, CEO of Volkswagen Passenger Cars, said: “With the ID7, we are taking the next step in our electric offensive.

“Already by 2026 we will offer the widest electric range of all manufacturers in Europe – from the entry-level (ID2all) model for less than 25,000 Euros up to the ID7 as the new top model within the ID family.

“Our goal is to achieve an electric car share of 80% in Europe by 2030. As from 2033, Volkswagen will produce only electric vehicles in Europe.”

The ID7 is almost five metres long and the manufacturer says the powertrain has been designed to maximise range.

Depending on battery size it predicts WLTP ranges up to 700km and charging capacities of up to about 200kW.

The ID7’s cabin features a 15-inch infotainment system screen, an augmented reality head-up display, and a new air conditioning operating concept integrated on the top level of the infotainment system.

Other technologies available in the ID7 include a panoramic sunroof with smart glass which can be switched between opaque and transparent settings by touch control, as well as Climatronic front seats which offer cooling and heating as well as a drying function.

Travel Assist technology can support assisted lane changing on the multi-lane motorway at speeds above 56mph.

The ID7 can also independently perform assisted parking manoeuvres in different ways, including parking with memory function over a distance of up to 50m.

For this, the driver either remains sitting in the ID7 or monitors the parking procedure from outside the vehicle using the smartphone app.  By Graham Hill thanks to Fleet News.

I came across the following article and thought that it was interesting. Brand is important to the companies that own them so if you’re cut up by a branded van or car, putting lives at risk, maybe you should give them a call. Here’s the article:

As a fleet manager, keeping drivers and vehicles safe is the number one priority. But it is not the only one – you must also endeavour to keep your brand as safe as possible.

Why does it matter?

How many times have you seen a lorry bearing the name of a big brand stuck at the side of the road? Or a tradesperson’s van with their company logo smashed to pieces?

This is before we start to think about how many drivers have been seen caught in a bout of road rage.

In fact, 55% of business car drivers have previously admitted to shouting, swearing and making rude gestures to other drivers. This is not the impression of your company you want the public to be left with.

In the crashes themselves, the vast majority of focus rightly goes to the safety and health of the driver. Once that is established, and the proper support given it is important to note the impact a crash can have on a brand.

Leaving a vehicle stranded for days is not a good look and neither is the resultant potential for social media snaps to go viral.

Indeed, social media creates a risk that one bad incident in one location could soon be beamed around the world.

While previously any fault or driver indiscretion might have been seen by a few passing motorists, it now has the potential to be an image or video shared widely and quickly.

The heavy lifting of policing poor driving is often performed by a bumper sticking asking, “How is my driving?”. I don’t think I have ever met anyone that has ever made use of the number provided. So what are your other options?

The good news

The flip side of the risk is the undeniable benefit of the hundreds or thousands of drivers who see the name of your company on the roads every day. In fact, this is an important part of many company’s marketing strategies.

For instance, if you live in, or regularly visit London, you are probably familiar with the loud, red, white and blue vans of Pimlico Plumbers.

Seeing them everywhere gives the impression that they are always available if you need them. This is exactly the impression that an emergency plumber wants to cultivate. Plain white liveries would not have the same impact.

While some accidents are unavoidable, and for the most part professional drivers are just that, professional, there is clearly room to improve and provide a helping hand to drivers.

The technology available in vehicles nowadays can be a real help to both drivers and fleet managers, and more help is on the way.

Dash Cams have long been a part of a fleet manager’s arsenal, but while they might have once been used purely to help prove fault in the case of an accident, they are now evolving to stop these accidents from happening in the first place.

Furthermore, Dash Cams also often record inside the vehicle too, a useful way to protect drivers and brands from baseless claims or help understand the cause of crashes.

Ultimately, the most important thing to do is to ensure that the fleet is maintained to a high standard, drivers are given the training and schedules to help them perform at a high level and every precaution is taken to protect the brand on the roads, including new technology.

Your brand is a valuable asset, handle it with care.  By Graham Hill thanks to Fleet News

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 Type	Speed	March (p/kWh)	February (p/kWh)	Difference (p/kWh)	Cost to charge to 80%	Pence per mile (p/mile)
Domestic	Up to 7kW	34	34	0	£13.60	7.64
Slow	Up to 7kW	35	37	-2	£14.00	7.87
Fast	8-22kW	53	53	0	£21.20	11.91
Rapid	23-100kW	67	66	1	£26.80	15.06
Ultra-rapid	+101kW	70	71	-1	£28.00	15.73

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

Charge Type	Speed	March (p/kWh)	February (p/kWh)	Difference (p/kWh)	Cost to charge to 80%	Pence per mile (p/mile)
Slow off-peak	Up to 7kW	37	37	0	£14.80	8.31
Slow peak	Up to 7kW	72	72	0	£28.80	16.18
Fast off-peak	8-22kW	57	57	0	£22.80	12.18
Fast peak	8-22kW	75	75	0	£30.00	16.85
Rapid off-peak	23-100kW	57	57	0	£22.80	12.81
Rapid peak	23-100kW	75	75	0	£30.00	16.85
Ultra-rapid off-peak	+101kW	51	52	-1	£20.40	11.46
Ultra-rapid peak	+101kW	64	67	-3	£25.60	14.38

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

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

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

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

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