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The split between business/fleet funding and private/retail for cars has changed dramatically over the past year.

 

Private/retail now accounts for 18% of the FN50’s car risk fleet, up from 12.8% in 2018, reflecting the increasing popularity of personal contract hire (PCH) products.

 

“There’s nothing new about the ‘cash or car’ conundrum,” says Ben Creswick, managing director of JCT600 VLS.

 

“However, there is no doubt the radical changes to the industry over the past 24 months have made this conversation much more prevalent.”

 

Where a company wishes to support employees by offering an alternative, JCT600 VLS says this has been done through a ‘structured’ PCH offering, where duty of care is tightly controlled and, typically, the financial model is based on a business mileage reimbursement mechanism, rather than pure salary.

 

However, as with all historical fluctuations in the company car market, Creswick says this is not applicable to the entire populace.

 

He explains: “For the majority of our customers’ core fleet requirements, business contract hire remains the most cost-effective for the business and the driver.

 

“While (JCT600) VLS has not seen a material change to PCH, what we have witnessed in the overall marketplace is an aggressive push into ‘affinity’ PCH, as a way of mitigating poor levels of traditional BCH (business contract hire) growth, or to soften the degree of fleet shrinkage within leasing companies.”

 

The impact of OpRA

 

The British Vehicle Rental and Leasing Association (BVRLA) says PCH accounted for 68% of all new leasing broker car contracts in 2018 and, across its membership, personal contracts saw the highest level of growth at 14%, accounting for nearly 1.9 million vehicles.

 

Looking at all the funding methods offered by the top 50 leasing companies, contract hire/operating lease retains its dominant position for financing cars.

 

Out of the 1.26 million cars on the FN50’s risk fleet, 92% are classed as an operating lease, where the leasing company takes the residual value risk. That is up slightly year-on-year from 91% in 2018; contract hire/finance lease also increased, from 2% to 3.1%.

 

Salary sacrifice retained its risk fleet share, with 3.9% of cars funded this way compared with 4% in 2018.

 

Meanwhile, employee car ownership (ECO) schemes (0.4%) and others (0.6%) both saw slight declines.

 

Ashley Barnett, head of consultancy at Lex Autolease, says: “Since the introduction of Optional Remuneration Arrangements (OpRA) in 2017, which saw employees taxed on the greater of the cash allowance foregone or the company car benefit, we saw increased complexity added to employee car ownership schemes and salary sacrifice arrangements.

 

“Many customers using these products exited, and new interest reduced.

 

“This saw contract hire continue to be the funding product of choice for the traditional company car user.

 

“Perk users who have the option to take a cash alternative are showing continued interested in PCH as they move away from traditional company car schemes into the consumer market.

 

“Most are using this option as a means of avoiding restrictions typically associated with company car policies such as emissions caps and restrictions on makes and models that often aren’t monitored in grey fleet.”

 

Arval, like many of the FN50, offers PCH products and other alternatives to the traditional company car.

 

“These have been growing, especially over the last year, because of the long period of uncertainty surrounding company car taxation and WLTP,” it says.

 

The absence of future benefit-in-kind (BIK) rates, and uncertainty over how the tax regime would adapt to the new emissions test – the Worldwide harmonised Light vehicle Test Procedure (WLTP) – had been blamed, in part, for falling company car numbers.

 

BIK statistics, published by HMRC in the summer, showed the number of company car drivers had fallen by 50,000 year-on-year.

 

However, tax officials said initial analysis suggested a new way of reporting company car tax could have skewed the figures.

 

How many company car users are there?

Since 2009-10, the number of company car users had remained relatively stable (at just under a million). But, the latest data indicated a dramatic fall from 940,000 in 2016/17 to 890,000 in 2017/18 – a 5.3% decline.

 

Another company car market indicator, fleet and business sales, shows registrations down by 1.7% last year, according to data from the Society of Motor Manufacturers and Traders (SMMT).

 

However, that could simply be due to employees and companies keeping cars for longer as they awaited BIK clarification, rather than a reduction in company cars.

 

The tax picture was finally clarified last summer, with the Treasury publishing two tax tables, one for cars registered before April 2020, and one for those registered after. BIK rates were also published up to April 2023, and there was a new 0% BIK rate for pure electric vehicles (EVs).

 

Leasing companies report a surge in fleet orders, with company car drivers and businesses eager to take advantage of the tax rates for the cleanest cars.

 

Arval says: “It’s important to recognise the reason people have been moving out of company cars has been the ongoing uncertainty around their personal tax, rather than any structural change in its effectiveness as a business tool or employee benefit. Faced with an unknown cost, they have been using the cash option to fund a PCH, effectively the nearest alternative.”

 

It is a trend reported by many in the FN50. Dominic Graf, head of commercial performance at Alphabet, explains: “We’re not seeing any significant movement in the funding methods being used by businesses to give employees access to cars; what we are seeing is a change in how they gain access to these funding products.”

 

Over the past 12 months, it has seen a 120% increase in its private/retail fleet – albeit from a low base – as employees opting out, or being provided with a cash allowance, look at PCH options.

 

Lex Autolease has also seen an increase in interest from previous company car drivers in PCH products, but Barnett warns: “Many should take care when seeing deals with low mileage, needing to realise that this presents a new restriction compared with the company car environment, and that, along with wear and tear, might lead to additional charges.”

 

LeasePlan created Select and Drive, a members-only, employer-endorsed web platform, to offer cash-taking employees access to cars.

 

Matthew Walters, head of consultancy and customer data services at LeasePlan UK, predicts: “Segmenting your fleet to various populations to ensure the fleet provision is right for the employee and the business will become an important factor in ensuring that the fleet strategy is future-proof for tomorrow.” By Graham Hill thanks to Fleet News

For years I’ve been complaining about the weaknesses of recalls when cars have safety recalls that put drivers’ lives at risk. There are still hundreds of thousands of vehicles on the road that haven’t had safety recall repairs carried out. So I find it ridiculous that the Government is introducing legislation for environmental reasons.

 

The Government is seeking new powers in the Environment Bill to compel vehicle manufacturers to recall vehicles when they do not meet the relevant environmental standards.

 

The Department for Environment, Food and Rural Affairs (DEFRA) introduced the Bill to Parliament on January 30th.

 

It will create new powers to stop the export of plastic waste to developing countries and will enshrine environmental principles in law, while introducing measures to improve air and water quality, and restore habitats so plants and wildlife can thrive.

 

The new vehicle recall powers are included in an effort to help improve air quality in urban areas.

 

Environment secretary Theresa Villiers said: “We have set out our pitch to be a world leader on the environment as we leave the EU and the Environment Bill is a crucial part of achieving this aim.

 

“It sets a gold standard for improving air quality, protecting nature, increasing recycling and cutting down on plastic waste.”

 

As well as the measures outlined, the legislation will also create legally-binding environmental improvement targets.

 

A new independent Office for Environmental Protection will be established to scrutinise environmental policy and law, investigate complaints and take enforcement action against public authorities, if necessary, to uphold environmental standards.

 

The office’s powers will cover all climate change legislation and hold the government to account on its commitment to reach net zero emissions by 2050.

 

The Environment Bill was introduced into parliament in October 2019 and has been re-introduced to parliament following the general election. I agree that this is important but not as important as safety recalls that could kill drivers, passengers and other road users. By Graham Hill thanks to Fleet News

The following report only covers contract hire, not PCP contracts where the cars are returned rather than bought or part exchanged. End of contract (EOC) fair wear and tear damage charges for cars have reduced in the past 12 months, by 2% or £7.50 on average to £314.53 (2018: £322), marking the first reversal for four years, FN50 data suggests.

 

The British Vehicle Rental and Leasing Association (BVRLA) updated its Fair Wear and Tear guide in April after feedback from end-user fleets, its own members, remarketing experts and other fleet stakeholders to help improve clarity on what is often a contentious issue.

 

However, while the absolute figures are in decline, there are clear differences between the charges levied at cars on business contract hire (operating and finance lease) and those funded via salary sacrifice schemes.

 

Leased cars were hit with average fair wear and tear charges of £326, while salary sacrifice cars averaged £271. The FN50 asked leasing companies to split out the figures for the first time.

 

It suggests that either employees take greater care of cars their perceive as their own than they do a company vehicle – certainly this could be the case when comparing job-need cars to sal/sac – or that leasing companies are less willing to charge individuals than they are companies.

 

There were also differences in the percentage of cars charged and the level of the damage waiver.

 

Overall, the average percentage of cars being charged increased from 39% to 40%, while the average damage waiver fell from £167 to £117.

 

However, 43% of leased cars were charged fair wear and tear but only 31% of salary sacrifice cars were hit with charges. Likewise, the damage waiver for leased cars was £112, but sal/sac drivers had a more generous £133.

 

Both were significantly below last year’s overall average. This means there is a much smaller margin for error, increasing the likelihood that charges will be applied when vehicles are returned.

 

Average charges for leased cars covered a wide spread, from a high of £759 to a low of just £45 per car, showing wild variances from leasing company to leasing company.

 

If you isolate the 10 biggest leasing companies that provided figures, the average leased car figure is £319.51, down from £330 last year, so the companies that account for the most volume in the UK leasing industry have charges at a lower level than average.

 

The BVRLA’s aim with its guide is to provide an industry-wide, accepted standard that defines fair wear and tear when vehicles are returned by fleets to their leasing or rental company.

 

It also provides advice for best practice in vehicle maintenance and upkeep that will prevent unacceptable wear and tear charges occurring.

 

A BVRLA spokesman said: “With personal contract hire responsible for a growing portion of the BVRLA car fleet, there was extra focus on improving clarity and demonstrating fairness, especially when customers return a vehicle at end of lease.

 

“With many customers new to the concept of vehicle leasing, and possibly unsure of their responsibilities in maintaining the vehicle, members will be providing more help and support during the period of lease or rental.”

 

This might also explain the lower charges levied at salary sacrifice drivers, many of whom will also be facing wear and tear charges for the first time. Their experiences here will go some way to determining whether they stay in the scheme.

 

The guide gives advice to drivers about what they need to do to avoid end of lease charges, where they can get advice on routine maintenance, servicing and appraising the vehicle at the end of the lease and what they can expect the day the vehicle is returned, as well as how to complain if things go wrong.

 

Some leasing companies offer a fixed-cost menu of charges set out at the start of the contract.

 

Others do not repair vehicles before sending them out to auction, so do not charge for the cost to repair the damage.

 

Instead, they charge for the loss of value against the residual value due to the damage.

 

There are other alternatives. Fleet management specialist ARI Fleet UK has moved into the finance lease space, offering funding with no mileage limits or end of contract damage charges.

 

Rory Mackinnon, head of asset funding at ARI Fleet UK, explained: “Fleet managers are looking for support on cost management strategies and we have been working closely with our customers to deliver this.

 

“We identified an opportunity for a specialist finance solution to help drive down fleet costs. For too long, fleet managers have had to contend with excessive leasing fees and we are looking to challenge the status quo and disrupt the market.”

 

Nick Hardy, sales and marketing director at Ogilvie Fleet, Fleet News’ Leasing Company of the Year (up to 20,000 vehicles) and 15th in the FN50, says its fixed-cost menu pricing approach creates a transparent process for customers.

 

“We don’t see EOC as a profit centre,” said Hardy. “We need to cover our costs and, at the moment, we’re still doing that. If we weren’t washing our face we may need to go back to customers and have that conversation, but at the moment I’m glad we don’t need to do that.”

 

Ogilvie isn’t the only leasing company in the UK that uses a menu pricing scheme for EOC, but those using this system are still in the minority.

 

Hardy said: “Everyone should be charging within the BVRLA guidelines, but there’s nothing in there that is going to dictate pricing.

 

“Customers are wise to some leasing companies looking at EOC as a way to claw back some profit, so I would say customers are being more careful about the condition of vehicles, rather than being more careless.”

 

Caroline Sandall, chairman at fleet operators association ACFO, said: “We worked with the BVRLA on developing the new guide in April this year and, generally, the rules have relaxed.

 

“The updated guide should make it much easier and clearer for drivers what is expected. The level of damages is very black and white and prescriptive so there should be less confusion on EOC.”

 

Sandall says areas like dents on the bonnet or alloy damage were particularly contentious elements for fleets on fair wear and tear charges.

 

She added: “There were some small grey areas on the old version, but now it is much more prescriptive around the number of acceptable chips in a given area on the vehicle.

 

“There has been an increase in EOC complaints for the BVRLA due to the increased focus on personal leasing, but they have worked to make the guidelines much clearer to address that.”

 

Salary sacrifice charges

 

The average end of contract charge (EOC) for vehicles on salary sacrifice was £271, according to the FN50 data.

 

This level of charging is 20.3% lower than the leasing average, or £55 less.

 

Salary sacrifice was the second largest market segment for funding type after contract hire in this year’s FN50 figures, representing 3.9% of volumes overall, but is still a small fraction of the market compared with traditional contract hire which accounts for 92% of the market.

 

A smaller number of vehicles on salary sacrifice attracted EOC charges, too, at 31% compared with leased cars at 43%.

 

Both figures suggest leasing companies are more reticent to apply charges to a form of funding that has been under pressure from changes to the taxation rules. Nevertheless, there are big variances in the average charges applied, ranging from £485 to £105. By Graham Hill thanks to Fleet News

According to Fleet News a challenging used car market in 2019 has had a significant negative impact on the optimism of leasing companies for residual values (RVs) in 2020, the Fleet News FN50 survey suggests.

 

With prices achieved for ex-lease cars falling month-on-month for at least the first nine months of last year, leasing companies have seen disposal profits eroded across the board. For end-user fleets, the past 12 months have proved a wise time to have outsourced RV risk.

 

In several cases, defleeted cars have failed to achieve the residual value forecast for them back in 2015 and 2016, and the majority of FN50 leasing companies have little faith that the situation will change this year.

 

More than half (52%) think RVs will fall in 2020, and only 15% forecast a rise.

 

This outlook is significantly gloomier than forecasts made this time last year for 2019, when 36% predicted residual values would fall, but it is more positive than the 12-month outlooks in both 2016 and 2017, when leasing companies were gripped by a doomsday scenario for the UK’s EU exit.

 

Brexit continues to blight the automotive sector, with the Society of Motor Manufacturers and Traders (SMMT) attributing the decline in both new and used car sales in 2019 to consumer confidence being “undermined by political and economic uncertainty”. The result is a temporary loss of appetite for big ticket purchases, it says, with vehicle owners holding onto their cars for longer.

 

Under normal circumstances, a decline in new car sales and a steady rise in new car prices should prompt an uplift in used car sales as buyers switch to secondhand models. But this tipping point in the supply-demand balance of the used car market has failed to materialise.

 

Cap HPI reports that franchised dealer groups have focused on their new car sales to qualify for quarterly manufacturer bonuses, at the expense of the used cars on their forecourts, and any shortfall in stock from fewer part-exchanges has been more than offset by the availability of used stock returning to the market after the record new cars sales of 2015 and 2016.

 

The result is FN50 leasing companies anticipating an average decline of 2.2% in RVs over the next 12 months. Among the 52% of leasing companies who predict a decrease, the average drop is 5.6%, a greater reduction than the 4.4% forecast a year earlier.

 

Even the most optimistic leasing companies are less bullish than previous years, with those forecasting an increase average a rise of 4.9%, compared with 3.6% in 2018 and 3% in 2017.

 

However, pricing experts are less bearish about the next 12 months.

 

“Things are not going to be as bad as they appeared over the first half of this year,” said Andrew Mee, Cap HPI head of forecast. “It’s our view that the market correction is pretty much over now.”

 

The far steeper than normal month-on-month drops in used car values in the second quarter of 2019 have come to an end, adds Mee, who says the “market is now behaving much more normally. Values will not increase, but they are not falling like they did earlier this year”.

 

Moreover, ‘peak diesel’ may have already occurred, with the sharp falls in the sale of new diesel cars in 2017 and 2018 potentially leading to an undersupply of used vehicles in 2020 and 2021. “And that will be good news,” said Mee.

 

But uncertainty remains. As one leasing director asked, will the rapidly evaporating demand for new diesel cars, down 20.3% year-on-year in 2019, and 30% lower in 2018 than 2017, be mirrored in the used car market, or will lower supply create a shortage that drives up prices?

 

Similar uncertainty is starting to bedevil the forecasting of residual values for electric and hybrid company cars. Company car drivers keen to minimise their benefit-in-kind (BIK) tax bills are fuelling double, and even triple digit, growth in the sales of some alternative fuel vehicles, but will this demand be matched in the used car sector where the tax advantages are far more limited?

 

In the short term at least, Mee sees a windfall heading the way of leasing companies with electric and hybrid cars on their fleets. Electric cars are worth significantly more now than they were a year ago, he says.

 

“Leasing companies will have been cautious in their RV forecasts, so they are in for a nice surprise, especially for smaller battery electric models like the Nissan Leaf, Renault Zoe and Citroën C-Zero,” said Mee. “Hybrid cars have not been such a strong story, but their values have not fallen in line with petrol and diesel prices because they are around in smaller volumes and are seen as green alternatives to petrol and diesel.”

 

The critical figures for leasing companies, of course, are not book values, but the differentials between the RV forecasts made at the start of leases and the disposal prices achieved at the end.

 

Grosvenor Contracts Leasing is one of the few FN50 members with a positive outlook for residual values in 2020, having returned better defleet figures this year than last. The company’s commitment to preparing vehicles to the highest standards prior to auction – “dealers don’t want to be buying work,” said Shaun Barritt, CEO, Grosvenor Group – has underpinned the prices it achieves and maintained high first-time conversion rates.

 

Above all, the company’s success lies in

envisaging ideal forecourts in three or four years’ time, says Barritt, ensuring a broad mix of cars.

 

“Problems arise when you are bulk buying and bulk supplying, but seldom do we have very high volumes of one make or model,” he said.

 

This issue is repeatedly raised by smaller leasing companies, who compare their broad model mix and ability to be nimble when remarketing with the lack of flexibility of the largest FN50 companies that have to remarket scores and even hundreds of similar vehicles into a soft used car market.

 

In Northern Ireland, Donnelly Fleet sells virtually all of its passenger cars via nine used car centres run by the Donnelly Group dealer network.

 

“We are not dealing with big scales, so we’re not going to flood our forecourts with 30 or 40 identical vehicles,” said Tony Magee, general manager, Donnelly Fleet.

 

“The market here is smaller and a sizeable deal could see six-to-15 vehicles coming back, so I can put one into each of our centres. With these volumes we can be more optimistic about RVs.”

 

Even so, Donnelly Fleet is putting in contingencies across all fuel types, rather than writing residual value forecasts at 100% of Cap Monitor, adopting a position shared by many FN50 firms.

 

The turbulence in the used car market, which saw book values tumble by about 15% between January and August, last year, has cost leasing companies about £800 per car at disposal.

 

“You would have to go back 15 years to find drops like that,” said Nick Hardy, sales and marketing director of Ogilvie Fleet.

 

He adds that after years of relative stability, the leasing industry had become accustomed to relatively low levels of depreciation, making the drop in values such a bombshell last year.

 

Previously, market falls of the magnitude experienced in the first nine months of 2019 would have seen leasing companies encourage their clients into contract extensions, but such protection appears to have been absent this year.

 

Figures provided for the FN50 show that the proportion of cars returned late has actually fallen by seven percentage points to 32% in 2019, compared with 2018. Interestingly, the two companies with the most bullish forecasts for 2020 have very few late returned cars.

 

“Nothing should stop us being optimistic. I am cautiously optimistic that the worst is over. People will still want to change their cars,” said Hardy. By Graham Hill thanks to Fleet News

UK drivers are risking their licences by breaking the speed limit when overtaking, shocking government figures have shown.

 

According to official stats, in 2017 almost 8,000 vehicles were involved in collisions when overtaking – and over half (55%) of these were cars.

 

Safety chiefs are now urging motorists to watch their speed when overtaking to avoid putting themselves and other road users at risk – and avoid getting hit with heavy fines or even losing their licence.

 

The Royal Society for the Prevention of Accidents (RoSPA) is keen to set aside myths that speeding is acceptable when overtaking another vehicle.

 

“The common-sense message is do not overtake unless you are sure you can complete the manoeuvre safely and without causing risk or inconvenience to another road user,” warns an RoSPA spokesman.

 

“Although you should complete an overtaking manoeuvre quickly, never exceed the speed limit for the road.”

 

As rule 125 of the Highway Code states, the speed limit is the absolute maximum you should drive on any particular road. This does not exclude overtaking.

 

Exceeding the speed limit for any reason is dangerous as well as illegal and could see you hit with penalty points, a hefty fine, or even being banned from the roads entirely.

 

While overtaking is, of course, legal, there are strict rules about how and when it is safe to overtake – the most fundamental being that you should only overtake ‘when it is safe and legal to do so’.

 

If you’re caught speeding while overtaking, you could collect a fine up to £2,500 and six points on your licence, depending on your speed and the road you’re caught on.

 

Should you get 12 penalty points or more in any three-year period, you’ll have your licence revoked. By Graham Hill thanks to the RAC

Could a vegan steak bake change the car industry? It might sound tenuous, but the phenomenal success of the unlikely offering from Greggs, along with myriad other vegan products from national chains that have been rolled out for ‘Veganuary’ this month, demonstrate that catering to the growing demand for animal-free products is big business.

 

The growing interest in veganism is driven by animal welfare, health and environmental concerns. It’s not just about eating only plant-based food but entirely avoiding using animal-based products – such as leather upholstery in cars.

 

Leather has long been used as a luxury material for car interiors – and it remains a popular choice among many. But the past few years have seen a major push by premium car firms to develop vegan leather alternatives, with some firms in the process of phasing out leather options entirely.

 

There are growing public calls for car firms to offer vegan options: six-time Formula 1 world champion Lewis Hamilton, for example, recently asked his employer Mercedes-Benz to phase out leather entirely.

 

Non-animal-based leather alternatives aren’t a new concept: for example, Mercedes has offered a synthetic material called Artico since 2003, Toyota uses a material called Softex and Ferrari offers Mycro Prestige as a vegan leather option on some models.

 

Yvonne Taylor, the director of corporate projects for animal rights organisation People for the Ethical Treatment of Animals (PETA), told Autocar that, compared to industries such as fast food, fashion, aviation and hospitality, the car industry “has been slower to capitalise on the demand for vegan products”, adding: “this is ironic, given that many of the biggest companies has been using vegan leather for its high quality and durability for years.”

 

Taylor wants car firms to offer entirely vegan interior options for every model, saying that leather isn’t a byproduct of the meat industry, as many people think, but a “global, $100 billion-a-year industry that slaughters more than one billion cows, sheep, goats and pigs [annually].”

 

According to Taylor, a PETA investigation into cattle ranchers in Brazil who supply leather producers that sell producs to car firms, found evidence of factory farming, extreme crowding and animal cruelty.

 

For the car firms, it’s been a question of market demand: Mercedes says that leather remains the most popular choice for upholstery in its cars, although it is developing new vegan leather alternatives. And other premium firms are reacting to the change in consumer demand, too.

 

Land Rover has been one of the leaders in this area, working with partners on a range of non-leather fabrics: the Evoque and Velar are offered with a premium wool-polyester blend from Kvadrat, a synthetic suede by Miko and a eucalyptus fibre textile. In a recent interview, Land Rover’s chief colours and materials designer Amy Fascella said: “Premium car customers still love luxury, but they’re also dialling back the consumerism and doing some good if they can.”

 

Tesla has phased out the use of leather entirely from its upholstery options, in part because of pressure brought by PETA after it bought shares in the California-based EV maker. And Volvo’s new sister brand Polestar will offer only leather-free interiors, using a water-based PVC material called Weavetech that was developed in-house. Polestar boss Thomas Ingenlath says it demonstrates that “our care for the environment goes beyond the electric drivetrain”, with the aim to “promote and accelerate the shift of the car industry towards leather-free interiors.”

 

The drive by the car industry towards reducing carbon emissions is also prompting a move away from leather – and that’s partly why the forthcoming Volkswagen ID 3 and Ford Mustang Mach-E EVs will use only animal-free materials.

 

Taylor says the production of animal-derived materials such as leather is “as toxic to the Earth as it is cruel to animals.” Indeed, the UN estimates animal agriculture – including the leather and wool industries – creates 14.5% of global greenhouse gas emissions.

 

Taylor refers to cattle and sheep as “the Humvees of the animal kingdom”, due to the volume of methane they produce, and adds that turning animal skin into leather involves using environmentally harmful toxic materials.

 

The leather industry believes its product has a strong and necessary future, however.

 

The director of Leather UK, Dr Kerry Senior, said: “The reality is that more than 90% of the world’s population eat meat, and that consumption is rising. While this is the case, more than seven million tonnes of hides and skins will be produced every year, which will need to be dealt with. The most efficient and elegant solution to that problem is the production of leather. Leather is unarguably a byproduct of the meat industry.”

 

He also pointed out that vegan alternatives to leather all use synthetic chemicals themselves in their production.

 

The challenge for car firms is finding premium materials that they can produce in volume and that feel similar to and can be as durable as leather over potentially a decade or more of hard use in a car. To test its Weavetech fabric, Polestar artificially aged it for 6000 hours, including submerging it in a ‘boiling water-like environment’ for four weeks.

 

New production processes are creating new options, too, with new materials often shown on new concept cars.

 

With demand for leather remaining strong, the car industry is unlikely to stop offering such interiors in the immediate future – just as Greggs still sells real steak bakes. But as demand for vegan and similar ethical products grows, car firms will be keen to stake a claim on that business.

 

Some of the ideas being developed:

 

Volkswagen ID Roomzz – apple skin leather:  This electric large SUV concept features a leather-style fabric made by mixing polyurethane with apple skin left over from juice production.

 

Bentley EXP 100GT – grape leather: Red wine and upholstery don’t usually mix well, but Bentley’s 100th anniversary concept used a material made from grape skins that are a waste product from wine production.

 

Mercedes-Benz Vision AVTR – recycled bottles: The futuristic Vision AVTR features Dinamica microfibre, a material made from old clothing, plastic bottles and flags. Similar fabrics are already in use in some production cars, including a number of Volvos and the new Renault Zoe.  By Graham Hill thanks to Autocar

Mitsubishi has come under investigation in Germany amid reports that some of its models are fitted with an emissions cheating device.

 

German police raided 10 sites in several locations including Frankfurt, Hanover and Regensburg as part of the investigation. Among the companies being investigated is parts supplier Denso, producer of diesel injectors and pumps for Mitsubishi models, which is said to be co-operating with investigators.

 

Three properties searched belong to manufacturing group Continental AG, which is reported to be listed as a witness in the case.

 

An official statement from German prosecutors said: “There is a suspicion that the engines are equipped with a so-called shutdown device.” A similar component identified on 11 million Volkswagen Group models in 2014 sparked the notorious Dieselgate scandal.

 

A Mitsubishi spokesman in Germany confirmed to motoring magazine Automobilwoche that the company was under investigation but emphasised that Mitsubishi Europe, as an importer, isn’t involved in development or production of new cars.

 

An official statement said: “Mitsubishi Motors will of course collaborate and contribute to this investigation.”

 

The engines in question are 1.6-litre and 2.2-litre four-cylinder diesel units that were sold as conforming to Euro 5 and Euro 6 emissions requirements. German police have asked anyone who has acquired a car with either motor since 2014 to contact them. By Graham Hill thanks to Autocar

Jaguar Land Rover (JLR) will make 500 job cuts at its Evoque and Discovery Sport SUV-producing Halewood manufacturing plant on Merseyside.

 

In what Unite the union described as “a further blow to the UK car industry” the premium carmaker will cut jobs as part of a move from a a three-shift system to a two-plus shift system, in April, in an effort to deliver flexibility efficiencies and enable sustainable growth.

 

The move is part of its Project Charge programme which, it claimed, had achieved a total of £1.7 billion of a £2.5bn operational savings as it reported losses in August last year – seven months after the announcement of 4,500 job cuts across the business.

 

Quoted in the Liverpool Echo newspaper, a JLR spokeswoman claimed that the decision to restructure shift patterns at the Halewood plant would deliver “significant operating efficiencies at the plant, while enabling us to meet the growing customer demand for our new Range Rover Evoque and Land Rover Discovery Sport”.

 

The manufacturing plant currently employs 4,000 people with around 500 agency staff.

 

Unite said that the proposed job losses would comprise a mixture of permanent employees and agency staff and accounts for over 10% of the plant’s workforce.

 

The union has negotiated that the loss of the permanent employees will be through an enhanced voluntary redundancy scheme.

 

Unite national officer, Des Quinn, said: “This is a further blow to the UK car industry in general and to our members at Halewood in particular.

 

“Unite will be ensuring that the commitment to limit job losses to voluntary redundancies is fully honoured.

 

“The challenges being faced at JLR are also being experienced by other UK car factories.

 

“The UK’s car industry has plummeted from being the jewel in the crown of the UK’s manufacturing sector in a few short years, directly as a result of government inaction.

 

“Until the government ensures that there is long-term frictionless trade and no tariffs with the European Union along with meaningful investment in the infrastructure to ensure the success of electric vehicles, the UK’s car industry will continue to experience severe challenges.”

 

In July last year JLR announced its plan to spend close to £1bn installing electric tooling in its Castle Bromwich factory to build three new electrified models, the first of which will be the next generation all-electric Jaguar XJ EV.

 

JLR said that its free cash flow was negative £719 million after £795 million of investment spending in the quarter, but added that this represented a £954 million improvement year-on-year.

 

The UK Government has announced that it would underwrite JLR’s EV programme spending to the tune of £500 million as part of a £625 million loan facility expected to be completed in the coming months and amortize over five years.

 

Global sales fell by 5.9% for the OEM in 2019 as 557,706 vehicles were sold worldwide.

 

Overall sales were hit particularly hard by a 13.5% decline in registrations in China.

 

In the UK Jaguar sales declined 2.6% to 36,069 (2018: 37,019) as Land Rover declined 1.7% from 77,906 in 2018 to 76,546. By Graham Hill thanks to Automotive Management On-Line

Drivers should book an eyesight test in 2020, says GEM Motoring Assist.

 

This, according to the road safety organisation, would help in reducing collisions and injuries on the UK’s roads.

 

GEM road safety officer Neil Worth, said: “What better time than the year 2020 to get your vision checked properly and ensure the risks you face as a driver or rider are as low as possible?

 

“You should only drive when you’re sure you can see properly.

 

“After all, poor eyesight is linked to more than 3,000 fatal and serious injury collisions every year.

 

“We continue to be concerned that there are too many people driving whose eyesight has deteriorated to a dangerous level.

 

“This puts their own safety at risk, as well as the safety of others sharing the same road space.”

 

The eyesight test was introduced to the driving test in 1937 and has only been changed in minor ways over the years to reflect changing number plate sizes.

 

It is the only eyesight test drivers are required to take until they reach the age of 70.

 

Opticians should examine a driver’s field of view, as is done in America, to check whether motorists can see and react to what’s happening around them, according to GEM.

 

Worth added: “So this year we are encouraging drivers to ensure their eyesight goes beyond 20/20.

 

“After all, 20/20 is only an expression of normal visual acuity, but the requirements for safe driving go beyond clarity of central vision.

 

“A detailed professional eye examination will mean any problems can be identified and – in the vast majority of cases – corrected, meaning the risks are reduced considerably.

 

“So many people are staying behind the wheel into their eighties and beyond.

 

“This, coupled with the greater volume of traffic and an increase in distractions, both inside and outside the vehicle, points to the clear need for more regular and detailed eyesight testing.”

 

“Asking someone to read a number plate at 20.5 metres (67 feet) cannot on its own be a measure of their fitness to continue driving.

 

“A proper eye test will also measure peripheral awareness, eye coordination, depth perception, ability to focus and colour vision.”

 

GEM has called for drivers to have an eye test every two years, ensuring there are no safety concerns about their vision and to deal with any issues at an early stage.

 

The organisation is also calling for every new driver to produce evidence of a recent eye test when first applying for a licence, and to obtain a mandatory vision test every 10 years in line with licence renewal. By Graham Hill thanks to Fleet News

More than half of all drivers have either hit or had a near miss with an animal on UK roads, new research from GoCompare Car Insurance suggests.

 

Two-thirds (68%) of respondents, meanwhile, said they would not know what to do if they hit a larger animal, such as a deer or a badger while driving.

 

The animals most likely to be involved in an incident with a car are:

 

• Bird e.g. pigeon (27%)
• Cat (23%)
• Large game bird e.g. pheasant (20%)
• Deer (18%)
• Dog (17%)
• Rabbit (17%)

 

 

When asked what kind of road the accident happened on, two-thirds (68%) of drivers said they had been on a country road, followed by one in four (24%) on a town or city road.

 

While the animal running out into the road was the biggest reason for the incident (66%), driving at night was blamed by 22% of drivers. Driving too fast or being distracted contributed to 8% of the incidents.

 

The research also showed that animal-related accidents can happen at any time of day with broad daylight (32%) being the most common of the driving conditions, followed by evening/dusk (29%).

 

When asked what action they took, 39% of drivers admitted to driving on after hitting an animal, with those living in Scotland (47%) being the least likely to stop.

 

What is clear from the research, however, is the impact that hitting an animal or having a near-miss can have on the driver and the car.

 

When asked how they felt after hitting or nearly hitting an animal, only 16% of the drivers involved said they weren’t affected by the incident at all.

 

Men were nearly three times more likely to feel unaffected (21%) than women (8%). More than half (55%) admitted they were shaken by the incident, while 28% said they have slowed their driving down as a result. Fewer than one in ten (8%) said the incident had affected their confidence when driving.

 

In terms of vehicle damage, 18% of drivers who hit an animal sustained damage to their vehicle, with 10% resulting in an insurance claim.

 

Comparing genders, men were twice as likely to badly damage their car after hitting an animal compared to women.

 

Animal involved with car incident	Percentage of drivers reporting
Bird	27.5%
Cat	22.7%
Gamebird	20.0%
Deer	17.8%
Rabbit	17.1%
Dog	16.9%
Squirrel	16.0%
Fox	15.7%
Hedgehog	11.9%
Sheep	10.3%
Badger	8.9%
Cattle	6.6%
Horse	6.6%
Other or unidentified	5.8%

 

 

Lee Griffin, founder and CEO of GoCompare said: “Sadly, as our research shows, accidents and near misses with animals on our roads are something most drivers have experienced.

 

“While some encounters may not be dangerous, a close call with an animal on the road can happen anywhere and at any time. They can leave drivers badly shaken or worse, lead to accidents and expensive repair bills.

 

“Animals are unpredictable and as a result, these incidents are unexpected but are increasingly common, as we all spend more time in our cars.

 

“Often the type of animal isn’t the issue. The action taken by a driver to avoid a bird can be just as dangerous as hitting a large mammal.

 

“Drivers on country roads need to take particular care, especially when driving at dusk or in the dark at this time of year when daylight time is shorter.

 

“But the reality is that we all need to be more aware of the likelihood of meeting an animal of some kind on the road.

 

“Being mindful of our speed and the distractions around us will help reduce the risk of a serious accident if the worst does happen.”

 

What is clear is that many drivers wouldn’t know what to do in the event of an accident involving an animal, but GoCompare has spoken to Adam Grogan, head of wildlife at the RSPCA.

 

He said: “Each year the RSPCA receives and attends several thousand calls regarding road traffic accidents involving deer. As a result of this, we always urge people to be cautious when driving in an area with known wildlife nearby and pay heed to warning signs indicating that wild animals may be around.

 

“If you do hit an animal while driving, we would advise people to stop and check (if it’s safe to do so), as the animal may be more seriously injured than they appear.

 

“If you find an injured wild animal, contact the RSPCA’s 24-hour emergency line on 0300 1234 999 for further advice on what to do.

 

“Always report any deer-vehicle collisions to the police and try to remember to record any deer-vehicle incidents at Deer Aware.

 

“Animals can scratch and bite when frightened, particularly if they are injured, so be cautious and apply common sense.

 

“Please do not try to handle or transport any injured deer, foxes, badgers, otters, swans, geese or birds of prey; keep a safe distance from them and call our emergency line for assistance.

 

“Always wear gloves when handling all other animals and please take them to a vet for treatment where possible.

 

“We also urge people to take care in dangerous locations, like a busy road, and ask people to always report any animal obstructing a highway to the police and call for help if you can’t reach the animal safely.”

 

Find out more about what to do if you find an injured wild animal on the RSPCA’s website.

 

Richard Leonard, head of road safety at Highways England, added: “We urge drivers to look out for animal warning signs which let you know that animals are known to be about in the area, or likely to be roaming across the road.

 

“You may be well-travelled and on a known route where you’ve never seen an animal before – but there may one in nearby foliage or woodlands.

 

“We want everyone to reach their destination safely – so my top tip is if you see an animal warning signs slow down, remain vigilant and keep your distance.”

 

Key points

 

• By law, you are required to tell the police if you’ve hit a dog, horse, cattle, sheep, pig or goat.
• If you hit any animal, it’s best to report it to the police, particularly if it could be a pet, so that the owner can be informed.
• If you see a dead animal by the roadside, you can contact the local council

 

By Graham Hill thanks to Fleet News and GoCompare