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By David Bartlett, head of accident management, AA Business Services

The days of being guaranteed a courtesy car while your vehicle is being repaired are largely behind us.

The automotive market and landscape have changed and are continuing to evolve.

A myriad of factors has impacted the availability of courtesy vehicles, and the reality is that they’re now in limited supply, regardless of insurance agreements for their provision.

The current landscape

As a result of global factors including the Covid 19 pandemic and the war in Ukraine, hire car providers are facing pressures, like many areas of industry, that are impacting the availability of vehicles.

One of the main challenges they’re facing is rising costs and this can be largely attributed to resourcing and energy.

Labour market shortages have put upwards pressure on wages. Together with an increase in the National Living Wage of 9.7% and rising inflation, this has contributed to a perfect storm in the rising cost of resourcing.

The price of petrol and diesel has also reached record highs over previous months. This has hit rental companies hard, as every delivery and collection requires a runner car that incurs the cost of an additional driver and fuel.

Worldwide, there’s been an average increase of 47% in rental costs, so if rental is your contingency, these costs need to be factored into budgets.

Due to ongoing supply chain challenges, we’re still seeing a delay and shortage of new vehicles coming to market, pushing up the price of new and second-hand cars as well.

In the past few years new vehicle costs have risen over 20% and in some cases its over 40% for used vehicles.

It’s therefore simply not a viable option for most repairers to increase the number of courtesy vehicles, extend leases or replace those ageing or unfit, leaving them with a smaller fleet.

Coupled with this, order delays for a number of parts are extensive and unpredictable, which is out of repairers’ hands, and in some cases, this results in fleets of courtesy cars being tied up with drivers for longer. And this is a worldwide problem.

So stark is this issue in certain areas that there have been recent reports of some insurers and fleets writing off historically repairable cars to save themselves the rising costs of providing courtesy cars. This is more of an issue or policies that include a credit-hire for drivers.

A further and developing challenge placing demands on bodyshops is insurance policies for electric vehicle (EV) drivers which stipulate the provision of replacement EV courtesy cars.

As it stands, EVs aren’t an affordable option for most repairers and, even if they were, the majority don’t yet have the fast-charging infrastructure to turn these vehicles around quick enough, let alone navigate the increased energy costs and minimal uplift in rates for such requests.

Alongside – and as a consequence of – this changing landscape, we’re seeing an ageing profile in short-term fleet operations.

To effectively manage this, and navigate the current supply challenges, requires ongoing innovation to find the best solutions to minimise fleet costs and downtime and this is what we’re doing at the AA in close partnership with our suppliers and partners.

Taking control

So, what does this mean for fleets? With so many variables at play, fleets and drivers need to focus on what they can control.

One ball firmly in their court is their accident management programme.

So, where should you start? Firstly, turn attention to your insured events experience.

In the event of an accident that renders a vehicle off the road, regardless of where the fault is attributable, how’s your business going to be impacted?

This is a question that every organisation needs to know the answer to, and it will vary widely depending on the nature of the work carried out by employees – for example, are your employees desk based, or do they need to drive to carry out their role?

To get an accurate picture, it’s also important to undertake analysis of your accident management history.

This should include your average vehicle downtime and the cost of this to your business. Knowledge is power and it’s only through understanding how your business is affected by vehicles being off road that you can best plan to mitigate the impact on business.

Once you have the information you need, take action.

What this looks like will depend on the results of your analysis and shape of your organisation.

It may be that if your fleet is predominantly used for commuting and visiting customers, you need to update your company car policy to explain to drivers what they can do in the event of an accident without a courtesy car. This can include working from home, for example.

If your business relies on vehicles to operate, such as carry-out deliveries, then the solution will be more complex.

You can look at temporary options to implement such as vehicle rotation and amending shift patterns to maximise the use of all vehicles in operation at any one time.

We’re seeing the benefit of contingency planning for this purpose first-hand as many businesses now opt for an end-to-end accident management solution.

This sees the various – often very separate – aspects of incident management strategically linked into a single service.

It means working in close partnership with customers to keep their vehicles on the road, helping them to navigate the fast-changing landscape, while remaining safe and compliant at all times.

Looking ahead, it’s important we all acknowledge that the landscape has changed and we’re likely to see a further decline in the availability of courtesy cars. So, it’s important to adjust fleet expectations and be proactive.

Any organisation that operates a business-critical fleet needs to take action by adopting a robust end-to-end accident management solution.

This way they can maximise business productivity by minimising the risk of disruption in the event of an accident.  By Graham Hill thanks to Fleet News

A UK-based battery company has developed an electric vehicle (EV) capable of being charged in under 6 mins with existing charging infrastructure.

Nyobolt has taken a systems level approach to develop batteries capable of charging in minutes by pioneering new materials, cell designs, efficient software control and power electronics.

Its vision is to match today’s convenience of refuelling at the pumps, but it says that has been impossible to achieve in today’s EVs, because batteries are big, heavy and costly, with vehicles often weighing over two tonnes.

The requirement for heavy EV battery packs places a huge strain on the supply of battery raw materials.

The Nyobolt EV weighs closer to one tonne than two, uses a 35kWh battery and is capable of fully charging with up to 250km range in under 6 mins with existing charging infrastructure, without sacrificing battery life.

Nyobolt has tested its batteries for more than 2,000 fast charge cycles without significant performance loss.

Sai Shivareddy, CEO at Nyobolt, said: “Unlocking the challenges faced by electric vehicle designers has been key to the development of our breakthrough fast-charging batteries.

“Previously, enabling a light weight fast-charging vehicle was not possible without compromising its lifetime and so people have been relying on costly and large battery packs in the vehicle.

“With our unique technology we have achieved a six-minute charge car and developed smaller battery packs that can deliver more power and charge in less time.

“Our partnership with Callum shows how adoption of system-level technology innovations can transform the future of electric vehicles and increase accessibility of EVs, including to the 40% of UK households who can’t charge their vehicle at home overnight.”

Nyobolt decided to work with designer Julian Thomson, who was inspired by his design of the Lotus Elise.

Thomson invited design and engineering business Callum to collaborate in the development of the vehicle.

The resulting EV, says Nyobolt, showcases how its battery technology can be readily adopted across the automotive industry.   

With Callum and Nyobolt working hand-in-hand, a system-level approach has addressed each element from materials, to cell, to pack, to drivetrain, to whole vehicle, it said.

David Fairbairn, managing director at Callum, added: “Nyobolt’s pioneering battery technology has provided us with a unique and inspiring opportunity to support in the design and execution of a vehicle set to mark the way forward for EV technology.

“The collaborative creativity, engineering capabilities and steadfast efforts of Nyobolt, Julian Thomson and Callum have resulted in an EV that is not only exciting technically for the industry, but something that is beautiful to behold, too.”

Nyobolt says its ready-to-deploy technology will go into production in early 2024. By Graham Hill thanks to Fleet News

Transport for London (TfL) collected £73.3 million in fines from drivers using London’s ultra-low emission zone (ULEZ), last year.

Drivers who fail to pay the £12.50 charge receive a penalty charge notice (PCN) of £180, although this figure is reduced to £90 if paid within a fortnight.

The figures, obtained through a freedom of information request, show that the ULEZ generated more than £224m in 2022 – an average of £18.7m per month – with £151.3m coming through daily charges. 

The ULEZ was introduced in April 2019 to cover central London before being expanded to the North/South Circular boundaries in October 2021.

It will be expanded across the whole of the capital from August 29.

Earlier this year, TfL estimated that the expansion of London’s ULEZ would be worth up to £300m in its first year. However, it said that income from the pollution-cutting scheme is expected to be “negligible” by 2027.

TfL’s group finance director, Patrick Doig, told the London Assembly, its “central estimate” is for the ULEZ to generate an additional £200m in the 12 months after it is expanded to the Greater London boundary, from August 29 this year, with a “50% plus or minus” range from £100m to £300m.

TfL says that 95% of vehicles in the zone are expected to be compliant when the expanded ULEZ goes live, avoiding the £12.50-a-day charge, and compliance rates will increase incrementally each year thereafter.

To help fleets comply, a £110 million scrappage scheme has been opened up to more firms ahead of the ULEZ expansion.

From the end of July, businesses registered in London with fewer than 50 employees will be able to apply.

Currently, charities, sole traders and businesses with 10 or fewer employees registered in London can apply to scrap a van (£5,000 grant) or a minibus (£7,000 grant), retrofit certain vans or minibuses (£5,000 grant) or scrap and replace a van or minibus with a fully electric vehicle (EV) (£7,500 or £9,500 grant respectively).

As well as allowing bigger operators to apply, charities operating in London will also be able to scrap or retrofit up to three vans or minibuses instead of just one.

Furthermore, there will be a new grace period for sole traders, microbusinesses, small businesses, and registered charities who have ordered brand-new compliant vehicles, or if they have booked an approved retrofit appointment for a non-compliant light van or minibus.  By Graham Hill thanks to Fleet News

The price of diesel has fallen after the Competition and Markets Authority (CMA) expressed concern of weakening competition in the retail fuel market, new RAC analysis shows.

It suggests that over the two weeks since May 15, when the CMA issued its road fuel market study update saying average supermarket margins in 2022 had increased compared to 2019, the average price of a litre of diesel at supermarkets fell by 7.44p, from 151.02p to 143.58p.

The gap between the average prices of a litre of petrol and diesel at supermarkets was 9p on May 15, but by Monday (May 29) this had shrunk to 2.5p.

The RAC believes, however, that supermarket diesel prices should still be around 6p a litre lower than they are today (137p) if a fair price was being charged.

By comparison, the UK-wide average price of diesel is currently 147.44p per litre with unleaded at 143.14p – a gap of more than 4p.

Throughout April, however, the gap at the pumps averaged 14p a litre despite wholesale diesel being 4p cheaper than petrol.

The average price of a litre of unleaded at a supermarket is currently 140.64p while diesel is 2.5p more expensive at 143.14p.

RAC fuel spokesman Simon Williams said: “Since the Competition and Markets Authority’s made its announcement about supermarkets increasing their margins compared to three years ago and said they will be formally interviewing bosses, it appears the rate at which the price of diesel has fallen has sped up.

“Significant cuts to the price of supermarket diesel were long overdue as its wholesale price has been below petrol’s since the end of March. As a result average retailer margin on diesel had reached 22p a litre – more than three times the long-term average of 7p.

“Even today, with 27p having come off the average price of supermarket diesel since the start of the year, diesel drivers are continuing to get a poor deal.

“For two straight months it has cost retailers less to buy diesel on the wholesale market than it has petrol, yet they continue to charge more for diesel at the pumps.”

While wholesale price changes take some time to filter through to smaller forecourts which only buy new stock every few weeks, Williams says he cannot see any reason why the supermarkets still have not cut their prices to fairer levels as they buy much more frequently.

“We look forward to the results of the CMA’s review within the next four weeks and hope it heralds an end to poor value at the pumps,” he added.

“We also hope it means the biggest retailers start charging fair prices at all of their sites across the country, and not just at those where they’re competing directly with other forecourts locally.

“It can’t be right that the same brand can sell fuel for so much more in one part of the country than another – this sort of postcode lottery is wholly unfair to drivers and completely unjustifiable.”  By Graham Hill thanks to Fleet News

Smart off-peak energy tariffs have the potential to save electric vehicle (EV) drivers hundreds of pounds, new analysis of more than 100,000 drivers suggests.

The research, conducted by EV charging app Bonnet, concludes that EV drivers can save up to £260 each year by using public chargers overnight.

Looking at where and how EV drivers refuel their electric cars, it found those taking advantage of smart off-peak energy tariffs have already saved hundreds of pounds this year.

Off-peak tariffs are currently offered in the UK by several major charging networks, such as GeniePoint and Chargy, and are especially helpful for the estimated third of drivers who are unable to install a charger at home.

The smart tariffs allow drivers to take advantage of cheaper rates overnight – though the exact hours and days vary by network.

Patrick Reich, CEO and co-founder of Bonnet, said: “This data will be welcome news for those looking to go electric but worried about not having access to a home charger.

“With the rollout of these innovative smart tariffs at public chargers, drivers are able to save hundreds of pounds annually – even with historically high electricity costs.”

Bonnet analysed recharging sessions undertaken through its app to create an average cost of those using peak tariffs, off-peak tariffs, and those combining off-peak with Bonnet’s Boost subscription – which further discounts driver costs by up to 15%.

EV drivers who used both off-peak tariffs and Bonnet’s Boost spent an average of £11.13 for a full charge – meanwhile those who did not take advantage of off-peak rates, and weren’t boost subscribers, spent a £16.19 on average for a full charge – an increase of almost 50% (46.5%).

Assuming normal use, over the course of a year, Bonnet’s data shows that EV drivers who take advantage of Bonnet’s Boost packages and off-peak tariffs can save £260 annually.

Reich said: “To make it easier for people to understand which chargers offer these tariffs, at Bonnet we’ve recently updated our app so drivers can easily find chargers with cheaper overnight rates.

“We want to make it as easy as possible for people to switch to electric vehicles and help protect our planet, and so will continue to ensure EV drivers have all the information they need to reduce their costs.”

Total off-peak savings analysis based on analysis of driver charging habits

Source: Bonnett – data analysed by Bonnet during May 2023 of more than 100,000 drivers.

By Graham Hill thanks to Fleet News

The cost of charging an electric vehicle (EV) at home has levelled out, but public charging continues to increase, according to new research published by Mina.

Analysis of data, based on more than 50,000 real-life charging events, reveals that the price of home-charging stayed level last month (April), at 32p per kWh, on average.

The cost of charging an EV on the public network, meanwhile, rose to 76p/kWh.

Mina CEO Ashley Tate said: “Our data is unique in that it records an actual electric vehicle user’s cost and consumption, at home and in public, and so every month we can build a far more accurate picture of what’s really going on than just extrapolating from energy and charge point providers’ headline figures as others may have to.”

He explained that its analysis showed that the “shocking leaps” in energy prices of last year are not happening anymore.

However, he said: “We’re still seeing public charging costs have been rising bit-by-bit every month, even into spring.

“At home it’s a different story. Costs have levelled out and the question now, especially with the announcement of the new price cap from July, is whether there will be a fall in home charging tariffs as energy prices drop this summer, or whether it may take a while for the wholesale prices to feed through to EV users.”

Ofgem announced recently that the standard variable tariff for domestic electricity rates will be lowered to 30p/kWh from July 1.

The reduction is down from the current 34p/kWh which has been in place since October 1, 2022.

Mina’s monthly report comes after analysis by the AA showed that the price of slow charging an electric vehicle (EV) on the public network increased by 5p/kWh in April, compared to March, while the fast-charging rate rose by 1p/kWh.

The figures, from the April 2023 AA EV Recharge Report, show an increase in slow charging costs by one supplier of EV charging at supermarkets pushed up the average price by 5p/kWh. However, it remains half the average cost of ultra-rapid charging when priced at a flat rate (as opposed to peak/off-peak pricing schemes).  By Graham Hill thanks to Fleet News

Tesla price cuts, the arrival of new manufacturers from China and an increase in production are resulting in fleets starting to see discounts on new electric vehicle (EV) orders.

That’s according to Mike Potter, CEO of Drive Electric, who told delegates at the Association of Fleet Professionals (AFP)’s 2023 Conference, it was a sign that EVs are becoming a “normal part of the fleet market” as well as the sector seeing a return to something a little closer to “traditional market conditions”.

“We’re not talking about massive discounts but the time when all EVs were sold at list price appears to have passed, at least for the time being,” he said.

“The moves made by Tesla appeared to us to be designed to try to prompt some kind of price realignment in the EV market and, to some extent, that has worked – although it has arguably had negative effects in terms of setting future residual values.

“Certainly, others have had to look at their own sales to fleets and whether incentives needed to be introduced.”

He added: “New entrants from China have also been a factor.

“MG is now really established as a standard fleet choice at the entry level EV end of the market and the arrival of others such as BYD could have a similar impact in the mid-market.

“Their product appears to be strong enough to challenge existing players and if availability is good, they could mount a serious challenge.”

EV lead times ‘shortening’

Some fleet managers in the audience reported that lead times on EVs were starting to fall, sometimes substantially – although this could create its own problems.

Peter Milchard, AFP board member, said: “It was interesting during our panel discussion to hear that some fleets, who are sensibly placing EV orders 12-18 months ahead of when they actually need the vehicles based on recent supply experiences, are now seeing some of those orders arriving in 6-9 months.

“On one hand, it’s good news, because it suggests that lead times are returning to sensible levels in some instances, but it does mean that their orders are arriving a year earlier than they really need them, which can obviously be an issue in itself.”

Solus versus panel funding

The conference also debated the advantages of solus versus panel funding for fleets.

Steve Winter, of Appleridge Fleet Consultancy, said: “You can easily find differences of between £30-£100 per month on the same vehicle depending on the leasing company.

“These are not normally a sign of anything other than the appetite of that business for leasing you a certain kind of model of vehicle but does show the importance of benchmarking when it comes to vehicle acquisition.

“Fleets should consider having a panel of lenders is the right solution.”

The AFP conference took place at The British Motor Museum, Gaydon, and focus

ed on practical advice for fleets facing a range of current issues.

Sessions took the form of panel discussions with leading fleet managers chaired by AFP board members. These covered topics including handling supply matters, dealing with the rising costs of leasing and rental, managing an aged fleet, reimbursing drivers of electric vehicles, and optimising van fleets while gearing up for electrification.

AFP chair Paul Hollick said: “The ongoing impact of everything from the pandemic to the current economic crisis means fleet managers are facing a multitude of difficult issues for which there are often no easy answers such as rising costs across the board, ongoing supply difficulties, electrification of van operations and the ageing of their existing fleets.

“We wanted delegates to leave with ideas they can put straight into action – and the feedback that we are receiving suggests that the conference very much achieved that aim.”  By Graham Hill thanks to Fleet News

There was a 24.9% year-on-year increase in the number of vehicles stolen across England and Wales, according to new data published by the Office of National Statistics (ONS).

Analysis shows that there were 130,389 vehicles stolen last year, compared to 104,435 during the previous year (2021).

Furthermore, AA Insurance Services says that theft from vehicles rose by 9.9%, with 212,900 people having items stolen from their vehicle compared to 193,647 the year before.

Devon and Cornwall Police were unable to supply figures to the ONS, so the true figure is likely to be even higher.

Gus Park, managing director for AA Insurance Services, says that the rise in vehicle thefts is “worrying” and highlights that security is “vitally important”.

He added: “Unfortunately, there is no one thing that can guarantee keeping your car safe from theft, but just making it a bit harder for the thieves can make it less likely that they’ll go for your car.”

When it comes to taking cars, thieves are keeping pace with manufacturers by using a variety of hi-tech methods to steal them. Relay theft, key cloning and signal blocking continue to be the main methods of illegally obtaining vehicles.

When it comes to taking things from cars, faster and more traditional methods are adopted such as smashing windows or forcing windows and doors open are adopted to gain phones, wallets, and other valuable possessions.

AA Insurance Services is reminding company car and van drivers to not store valuables in their vehicles if possible, or at the very least advise drivers to keep items hidden away.

Visible deterrents such as using a steering wheel lock plays a crucial role in keeping thieves at bay, because these devices cannot be overcome by the technology now being used by gangs to steal cars, it says.

Although nothing is fool proof, this deterrent is likely to make the thief move on to the next unprotected car.

Separate data from the Metropolitan Police, which was published recently, revealed that tool theft from a vehicle had increased by 25% – accounting for a third of all tool thefts recorded in the capital in 2021 and 2022.

Tradespeople are 10 times more likely to experience tool theft from a vehicle than they are from a building site or their place of work – with only 14% of cases leading to the suspect being identified. By Graham Hill thanks to Fleet News

Old electric vehicle (EVs) batteries will be used to store solar-powered energy to fuel a fleet of new EVs.

North Tyneside Council is revitalising its Killingworth Site depot, in a multi-million-pound project supported by the European Regional Development Fund (ERDF).

A core aim of this initiative is to futureproof the site for sustainability and energy efficiency.

The depot – which is home to around 1,000 council employees – now includes a solar PV array and car ports delivering 700 kilowatts at peak generating around 600,000kW/h of electricity each year.

There are also more than 40 EV chargers being installed in the coming months, which will increase as the authority transitions a significant part of its fleet to electric over the next few years.

However, realising it would be giving 15% of the solar energy it generated back to the grid, as it had no way of storing the excess energy created during daylight hours, the council turned to Connected Energy in an effort to use this excess electricity to charge its electric vans at night.

Connected Energy has developed a battery energy storage system (BESS), which is already used to support solar storage and EV charging across the UK and Europe.

Its E-Stor system uses batteries from end-of-life electric vans, giving them a second life.

Ian Lillie, strategic facilities manager for North Tyneside Council, with responsibility for the depot, said: “Since installing and commissioning the PV array in February 2023 we have already generated over 100,000kW of green energy. However, we’ve had to give back over 20,000kW to the grid because we can’t store it.

“By using Connected Energy’s battery energy storage system, we can capture that energy and use it to charge our electric vans and indeed the buildings on site overnight. And in the winter, we can use E-Stor to store energy from the grid on lower tariffs at night, to use during the day.

“The combination of solar and BESS should significantly reduce our electricity bills while also cutting carbon emissions from our energy consumption.”

Lillie continued: “E-Stor repurposes batteries from end-of-life electric vans, so the ability to power the vans of the future using batteries from the vans of the past was a compelling argument for us.

“On top of that, the scalability of the E-Stor solution means we can ramp up our use of BESS on site as the council expands its own EV fleet.”

Typically, the batteries still have up to 80% of their original energy storage capacity at the end of the vehicle’s life, making them ideal for this application.

Furthermore, Connected Energy’s intelligent management system enables E-Stor to integrate with solar PV, the grid, and other smart technology like building management systems.

Councillor Sandra Graham, council cabinet member for the environment, said: “Battery storage is an integral part of a decarbonised energy ecosystem, and it is a testament to the site’s inventive approach that this is one of the first systems of its kind to be installed in the North-East.

“The redevelopment of the site has given us an opportunity to take positive action in line with our carbon reduction commitment, and the use of battery storage will allow us to stockpile the energy that our solar plant generates, so that nothing goes to waste.”

Connected Energy has been developing and delivering battery energy storage projects for more than 10 years. The company’s HQ is based on the Newcastle Helix site.

Matthew Lumsden, CEO and founder of Connected Energy said: “The concept for our systems came from our work in the North-East on a number of electric vehicle trials and driven by the mission to find a second life use for EV batteries.

“We now have over 30 systems operating across the UK and Europe – however this will be our first installation in the North-East. We’re proud to see a system in action so close to our HQ and look forward to seeing the benefits it will bring to the location.”  By Graham hill thanks to Fleet News

Electric vehicle (EV) battery manufacturer Gotion High Tech, which supplies Volkswagen, has revealed the Astroinno L600 with a range of 1,000km (620 miles).

Gotion has spent the past 10 years developing the lithium manganese iron phosphate (LMFP) battery having wanted to improve the energy density of lithium iron phosphate (LFP) batteries.

Dr Qian Cheng, the executive president of Gotion Global, said: “Astroinno L600 LMFP cell achieves 240Wh/kg in gravimetric energy density and 525Wh/L for volumetric energy density.

“It can achieve more than 4,000 cycles at room temperature and 1,800 cycles at high temperature, easily achieves 18 minutes of fast charging, and passes all safety tests.”

He added: “Because of the high energy density of Astroinno battery, we can also achieve a range of 1,000km (620 miles) without relying on NCM (nickel manganese cobalt) material.”

In terms of battery design, it has also reduced the number of structural parts by 45% and lowered their weight by nearly a third, while the wiring required has fallen from 303 metres to 80 metres

Gotion expects to start mass production of the L600 battery cell in 2024.

The 620-mile range quoted by Gotion would be a huge increase in terms of what is currently available on the market. Volkswagen’s new electric ID7 upper-medium car, for example, will have a range of up to 438 miles.

An electric concept car from Mercedes-Benz, the Vision EQXX, did manage to cover more than 1,200 km (746 miles) on a single charge, last year.

It travelled the distance in real-world driving conditions from Stuttgart in Germany, to Silverstone in the UK, surpassing the 1,000 km (620 miles) record it had set in April, 2022.

The car uses a 100kWh battery, which is ultra-compact, with a footprint that is 50% smaller and 30% lighter than the 107.8kWh pack used in the Mercedes EQS.

It achieved an average consumption of 8.3kWh/100km, more than double that of the EQS.  By Graham Hill thanks to Fleet News