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Civic slipping down the table leaves German cars occupying the top six places, reports Matt de Prez

The Audi A4 has retained its crown as the FN50’s most reliable car for the second year running, achieving the lowest number of mechanical breakdowns and warranty repairs among the UK’s 50 largest leasing companies.

It rose to victory last year – where it topped the charts for the first time – fending off its keenest rival, the BMW 3 Series, although BMW remains the UK’s most reliable car maufacturer.

In total, 80 models received a ranking by leasing companies in the 2020 listing.

Having launched in 2015, the A4 received a mild-facelift last year – bringing cleaner mild-hybrid engines and revised infotainment.

An all-new 3 Series launched in the same year, however, beating the A4 in the 2020 Fleet News Awards to win both the Best Premium Car and Best New Company Car trophies.

Whether the new model will enable the brand to reclaim its position at the top of the FN50, as it did between 2015-2017, remains to be seen.

Comparing this year’s figures with the previous shows a major move for the Honda Civic. It topped the chart in 2018 before slipping to fifth place last year. In 2020, the Civic has dropped again and now sits in seventh position.

Golf’s strong performance

It means the top six is populated entirely by German cars this year, with third place occupied by the Volkswagen Golf.

It’s a strong performance for the model, which is the best-selling fleet car in the UK and was replaced by an all-new model earlier this year.

The Golf pushed BMW’s 5 Series down to equal fifth place with the Audi A3 – also replaced by an all-new model this year – which climbs the chart from 11th and makes Audi and BMW the only brands to have two cars in the top five.

Mercedes-Benz enters the table in fourth place, with its C-Class model ranking in the top 10 for the first time since 2016.

It’s second entrant, the E-Class, has also climbed the table from ninth to eighth place this year – having placed 13th in 2018 – a good result that reflects the saturation of the newer generation car among leasing company fleets since it launched in 2016.

Hyundai makes an appearance in equal ninth position, with the i30 giving the brand a spot in the top 10 list for the first time.

Rounding off the top 10 is the ageing, but the nonetheless exceedingly popular, Nissan Qashqai.

It ties with the i30 in ninth place after a one-year hiatus and is the only model representing the crossover segment in this year’s top 10.

Both the Volkswagen Passat and Škoda Octavia dropped out of the table this year, placing 12th and 15th respectively.

The Audi A1 (23rd), Toyota Yaris (40th), Toyota CH-R (28th), Kia Sportage (33rd) and Ford Focus (16th) have all slipped out of the top 15 this year, although it should be noted that the margins between many of the models are very small.

While BMW failed to top the reliability ranking with its 3 Series, and the 5 Series lost ground this year, it still retained its title as the Most Reliable Manufacturer overall.

The Munich giant remains undefeated for six years.

Leasing companies ranked 27 models this year. Audi has held on to its number two spot this year with a strong performance from its A4 and A3 models, while Mercedes-Benz and Volkswagen sit third and fourth, respectively.

Honda has dropped from fifth to eight place this year, while Toyota – which saw improved positions for the Aygo (17th) and Prius (23rd) versus 2019 – has crept up one position to secure the final place in the top five.

Hyundai places sixth, while Volvo shoots up the table, occupying its highest ever position: seventh.

Volvo’s performance reflects its dramatic growth in the fleet sector, with strong year-on-year increases in registrations growing the presence of its vehicles on FN50 fleets.

Seat takes ninth place and is the VW Group’s third most-reliable brand, according to the FN50 survey.

Mitsubishi climbs two places, meanwhile, and occupies 10th position.

Kia drops out of the top 10 to 13th, having placed ninth in 2019 with the Ceed now its top rated model, in 18th place. Equally, Ford has dropped from 10th to 14th and has no cars in the top 15 reliability list (although Focus just misses out in 16th place).

Renault turning a corner

Renault may be happier, appearing in the top 15 for the first time.

The French brand appears to be turning a corner, with the Captur rising to 12th and both Mégane and Kadjar receiving a ranking.

This year’s newcomers mean that Mini (16th) and Vauxhall (19th) have been pushed from the top 15 list altogether.

How are models/brands ranked?

Each FN50 leasing company provides its top 10 most reliable models and most reliable brands and the ranking is based on 10 points for first place, nine for second and so on.

Some leasing companies also provide reliability data to add robustness to the survey responses. By Graham Hill thanks to Fleet News

The number of public electric vehicle charging devices has increased 18% in the UK over the past year to 19,487.

The figure is included in the latest Electric Vehicle Charging Device Statistics report produced by the Department for Transport, which says that, of these, 3,530 were rapid devices.

This is an increase of nearly 10 times since 2015.

Rod Dennis, RAC data insight spokesman, said: “The rise in the number of charge points across the UK is very encouraging and sends all the right signals to drivers who might be thinking about opting for an electric model next time they change their car.

“Add in the fact that many people with electric cars can charge from home and overall it’s a positive picture.

“But there’s still a way to go and the focus now needs to be on installing as many fast chargers as possible, given that less than a fifth of public chargers are rapid.

“While the speed of fully charging an electric car can’t compete with the five minutes or so it takes to fill up a petrol or diesel model, a greater number of faster chargepoints could help tempt more people to ‘go electric’ sooner.”

The DfT report says there is an uneven geographical distribution of charging devices within the UK.

London has the highest level of charging device provision per 100,000 of population with 63, while Northern Ireland is lowest with 17. The UK average is 29 per 100,000 people.

Some UK local authorities have bid for Government funding for charging devices, and others have not.

The report says most of the provision of charge points has been market led, with individual charging networks and other businesses such as hotels choosing where to install devices.

Charlie Jardine, founder and CEO, EO Charging, the electric vehicle charge point and charging software developer, added: “It’s great to see an 18% increase in public chargers this year with a 7% increase in available chargers in the last quarter alone.

“We look forward to seeing this number grow as electric vehicles are set to be an essential part of how we ‘build back better’ from the Covid-19 pandemic.

“Whilst increasing the availability of public charge points is an important step in overcoming the barriers to EV adoption, 59% of vehicles on roads are company vehicles so businesses must carefully consider installing their own EV charging infrastructure.

“We’ve seen much evidence of businesses leading the way on this in recent months, with significant demand from our customers transforming their fleets across the UK and Europe from diesel and petrol to electric.”

At the end of last month, Richard Jones, managing director of Lex Autolease – the UK’s largest leasing company – labelled the country’s charging infrastructure “not-fit-for-purpose”.

He told Fleet News parts of the country are poorly served, limiting the wider adoption of EVs.  By Graham Hill thanks to Fleet News

BMW has unveiled its iX: its first purpose-built fully electric SUV, offering more than 500PS and a range of up to 373 miles.

A similar size to the X5, it will rival the Audi e-tron and Mercedes-Benz EQC when it goes into production in the second half of 2021.

The iX features two electric motors – a 121PS one to drive the front wheels and a 400PS on to power the rear wheels.

It will be offered with different battery options with the range-topping model featuring a battery of more than 100kWh.

The iX can be charged at up to 200kW, allowing the battery to be charged from 10% to 80% in under 40 minutes.

The standard charger works at 11kW which means the battery can be charged from 10% to 80% in 11 hours.

BMW says the iX will offer a new level of connectivity through the presence of 5G and cloud technology, with some functions which need a lot of computing power carried out in the cloud, where they can be processed faster than in the car.

Frank Weber, member of the board of management of BMW AG, Development, said: “We are setting new industry standards with the technology in the BMW iX.

“The iX has more computing power for data processing and more powerful sensor technology than the newest vehicles in our current line-up, is 5G-capable, will be given new and improved automated driving and parking functions and uses the high-performing fifth generation of our electric drive system.” By Graham Hill thanks to Fleet News

The UK’s automotive trade body, the Society of Motor Manufacturers and Traders (SMMT), is calling on the UK Parliament to ratify the Brexit trade agreement.

MPs are debating the draft deal with the EU today (Wednesday, December 30) after Parliament was recalled to put the deal into law, a day before the UK severs ties with the European Union.

The SMMT wants the immediate ratification of the draft UK-EU Trade and Cooperation agreement (TCA), to ensure all automotive companies benefit from continued tariff-free trade from January 1.

It says that the draft TCA delivers across several areas for UK automotive, keeping the sector connected to a market that accounts for eight out of 10 of its vehicle exports.

Furthermore, the SMMT says that the TCA delivers on the core ask to avoid tariffs for most finished vehicles, parts and components.

Mike Hawes, the SMMT’s chief executive, explained that for automotive, Brexit has always been about “damage limitation”.

“The draft Trade Cooperation Agreement, while no substitute for the completely free and frictionless trade with Europe we formerly enjoyed, will address immediate concerns,” he said.#

“The TCA provides the opportunity for tariff and quota-free trade, foundations on which the industry can build.

“Even with immediate ratification, however, there will be just hours to adjust to new trading rules, so a phase-in period is critical to help businesses adapt.

“All efforts should now be made to ensure its seamless implementation, with tariff-free trade fully accessible and effective for all from day one.”

The SMMT says that the inclusion of specific provisions on transitional phase-ins for both electric vehicles (EVs) and batteries is also welcome.

However, it argues that the deal does not deliver some key asks, including formalising co-operation on the development of regulations and standards after the end of transition.

Nor does it prevent increased administration and potential for friction at the border, as we leave the single market and customs union, it said.

Hawes continued: “Further ahead, we must pursue the wider trade opportunities that Brexit is supposed to deliver while accelerating the UK’s transition to electrified vehicle manufacturing. 

“With the deal in place, Government must double down on its commitment to a green industrial revolution, create an investment climate that delivers battery gigafactory capacity in the UK, supports supply chain transition and maintains free-flowing trade – all essential to the UK Automotive sector’s future success.”

The eleventh-hour post-Brexit trade deal struck between the UK and the EU has been welcomed by the fleet and leasing industry.

It had faced a significant rise in costs, with tariffs imposed on cars and vans, if no deal had been agreed when the UK exits EU trading rules tomorrow (Thursday, December 31). By Graham Hill thanks to Fleet News

Drivers urged to carry out regular maintenance checks to avoid costly fair wear and tear outlay, reports Fleet News.

The average fair and wear charge incurred by company cars has risen 12% in the past five years, according to this year’s FN50 (The top 50 contract hire companies).

Bear in mind these are charges on companies with fleets of cars. If you are an individual, sole trader or small business owner the contract hire companies treat you differently as the loss of you as a customer is less important than the loss of a multi-vehicle fleet so end of lease charges tend to be considerably more than those imposed on a fleet customer with the same level of damage on the vehicle.

So please keep this in mind when reading this article. Of course using a good broker who can assist with these end of contract charges can help to level the playing field and minimise the charges.

A company car would, on average, have faced a fair wear and tear bill at defleet of £289 in 2016. This year’s FN50 shows that has risen by £35 to £324, on average, not including salary sacrifice cars.

Looking at the 10 biggest leasing companies in isolation, the average fair wear and tear bill was £407.

That is £83 higher than the FN50 average and worrying, when the vast majority of cars are operated by these firms.

Compared with FN50 2019, however, the overall average charge has fallen for the first time in more than a decade; by £2 from an average of £326.

Tusker says it has found that the condition of returned vehicles has improved marginally over the past year. “We are seeing a reduction in the value of the recharge (circa 2%) and a reduction in the number of recharges applied (3%) since 2018,” says Tusker CEO Paul Gilshan.

“A variety of reasons could explain this, including lower mileage contracts.”

However, Tusker’s experience of a reduction in the number of cars incurring charges year-on-year was not replicated by the FN50 average.

The percentage of cars that incurred fair wear and tear costs rose by one percentage point to 44% from 43% the previous year.

Five years ago, just more than a third (36%) of cars were attracting fair wear and tear charges, before getting as high as one-in-two cars (50%) in 2018 and falling to 43% last year.

Bridle Group reported the lowest percentage of cars attracting charges, with just one-in-50 (2%) of its vehicle returns.

Alan Carreras, sales director at the top 50 leasing firm, explains: “There are a number of factors at play.”

Bridle Group’s customer base consists, predominantly, of public sector users, typically schools, colleges and community trusts for which it provides minibuses.

“They cover a reasonably low annual mileage – on average 7,000 miles per year – and, while this in itself doesn’t exclude them from attracting damage, the likelihood is lower than the ‘typical’ annual mileage, for obvious reasons,” he says.

“We also take a pragmatic approach to de-hire; we understand the difficulties some organisations face when attempting to balance their books.”

Carreras explains that a damage recharge, which might be acceptable under the current British Vehicle Rental and Leasing Association (BVRLA) fair wear and tear guidelines, is not something they would automatically apply.

“We wouldn’t look to put our clients in an unnecessarily difficult position at the end of contract especially where any potential issues might not negatively affect the actual resale value once the vehicle has been remarketed.”

FAIR WEAR AND TEAR GUIDE

Most rental and leasing companies adhere to the Fair Wear and Tear guide published by the BVRLA.

The aim of the guide is to provide an industry-wide, accepted standard that defines fair wear and tear when vehicles are returned at the end of a lease or finance agreement.

The guide also gives advice to drivers and fleets 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.

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

“Transparency is at the heart of our relationships with clients and I genuinely believe that it’s the reason why we’ve continued to grow the business every year, including this – very challenging – year,” Hardy explains.

“Our truly ‘fair’ fair wear and tear policy is possibly the most transparent way we work with our clients. We explain what the extra costs might be at the outset of a contract. Nothing is hidden.

“Any charges we make are done on the basis of reduction on vehicle values, this only showing the true cost of any necessary recharges and we always verify the costs with photographic back up.

“If we don’t or can’t do that, there are no charges made. Our clients always know where they stand and we rarely have any issues.

“We know that our stance is quite unique, but unlike many others, we don’t see this area as a profit centre and so can be completely transparent about it all.”

Leasing companies, typically, also employ a damage waiver and, while the percentage of cars incurring damage charges has increased, so has the average damage waiver.

It now stands at £144, up from £112 in 2019. It was as high as £170 in 2016.

 

Simon Staton, client management director at Venson Automotive Solutions, says: “Comparisons year-on-year, however, can be misleading.”

The annual figures, he argues, will be influenced by those vehicles coming back off contract, how long they have been on that contract and the industries in which the vehicles operate.

Staton adds: “For company cars, the organisation may have the approach that for non-critical damage, scratches, scuffs, repairs are left and they are happy for the recharge.

For other organisations, vehicle condition is critical to company image and they will get the repairs done as and when they occur.

“Equally, a car being used as a pool vehicle may be treated better because the tracking of who’s driving it and when, compared with a company car being used for job requirements and travelling several thousand miles a year.” 

Implementing a few simple changes could significantly reduce wear and tear costs to the business, according to Staton.

“For example, regular maintenance checks by employees or the business can help identify issues early and avoid things getting worse and causing further damage,” he says.

“It is important for fleet operators to ensure they fully understand the contract they have with their fleet provider, so that they can avoid unnecessary costs at the end of the vehicle’s contract term.”

Venson also suggests implementing a fleet policy that recharges fees back to drivers if damage is not reported or routine inspections are not carried out.

Furthermore, it says fleets should regularly communicate and educate drivers on what needs reporting to the fleet team and consider using driver training, and an ongoing education programme, to ensure employees are driving safely which, in turn, will reduce accident damage.

Salary sacrifice charges rise but average waiver falls. The average fair wear and tear charge for salary sacrifice cars was £331, a £60 increase on the £271 reported last year.

It means that the average charge incurred by salary sacrifice vehicles is now on a par with the FN50’s leasing average, after being some 20% lower in 2019, the first year the figures were collated separately.

However, this rise is not necessarily down to cars having more damage: the more likely explanation for the higher charge is a reduction in the average damage waiver from £133 in 2019 to £79 this year – a fall of £54.

Salary sacrifice is the third largest market segment for funding type after contract hire, operating and finance, in this year’s FN50, representing 3.7% of the risk fleet overall.

The data also shows more cars attracted charges this year, with 34% facing a fair wear and tear bill, up from 31% in 2019. However, this is still significantly lower than the 44% reported for non-salary sacrifice cars.  By Graham Hill thanks to Fleet News

An eleventh-hour post-Brexit trade deal struck between the UK and the EU has been welcomed by the fleet and leasing industry.

It had faced a significant rise in costs, with tariffs imposed on cars and vans, if no deal had been agreed when the UK exits EU trading rules on Thursday (December 31).

However, while business will now have to adapt to the new trading rules and work through the detail of the deal, the expected hike in vehicle prices of several thousand pounds has been avoided. 

Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), said that the Brexit trade deal comes as a “big relief” for the industry and provides a “welcome boost” for the UK automotive sector, which can now plan with more “confidence and certainty”.

“Avoiding tariffs on vehicles and parts is essential,” he added, “but with the end of the transition period only days away, there is a lot to be done to prepare for January and beyond as details around the new trading terms become clear.”

Mike Hawes, chief executive of UK automotive business group, the Society of Motor Manufacturers and Traders (SMMT), also welcomed the agreement.

However he said: “We await the details to ensure this deal works for all automotive goods and technologies, including specifics on rules of origin and future regulatory co-operation.

“A phase-in period is critical to help businesses on both sides adapt and efforts should now be sustained to ensure seamless implementation, with tariff-free trade fully accessible and effective for all from day one.”

Hawes said that the SMMT will continue to work closely with Government to ensure all companies are “as prepared as possible in the limited time left.”

Fleet News reported in November, how BMW has announced a customs duty related increase of more than £3,000 on the recommended retail pricing (RRP) of the BMW i3, irrespective of whether there is a free trade deal or not.

BMW had announced at the beginning of October that BMW i3 models, along with the majority of other BMW models, would be subject to an “economic increase” in the recommended retail price rise from January 1, 2021.

Due to changes in the ‘Product Specific Rules of Origin’ legislation, it says that the maximum permitted content of non-EU and non-UK materials means these models will be subject to additional tariffs after the end of the Brexit transition period.

This will be the case, it said, “whether or not there is a free trade agreement with the EU”, which means a further increase in the RRP of BMW i3 models is needed.

Stephen Haddrill, director general of the Fleet and Leasing Association (FLA), said: “As always in trade talks, the devil is in the detail but we appear to have a deal that will enable UK goods to be sold without tariffs or quotas in the EU market – that bodes well for business confidence, leading to renewed investment and lending as we enter 2021 and begin the long economic recovery from the Covid impact.”

Businesses urged to prepare

Logistics UK (formerly the Freight Transport Association), while welcoming the deal, warned that there was still a lot of work to be done to protect the nation’s supply chains, and the economy as a whole.

Elizabeth de Jong, policy director at Logistics UK, said: “A deal is great news for the UK economy, since it removes the risk of tariffs being placed on almost every item imported from the EU, which would have raised prices and slowed the rate of economic growth.

“We are still absorbing all the details, but it looks as though HGVs will continue to have access to the EU market, and aircraft will still be permitted to fly to and from the EU, which safeguards the UK’s highly interconnected supply chains and protects the jobs of those charged with keeping the country stocked with the goods it needs.”

Meanwhile, Logistics UK is urging traders to continue to get ready for new trading conditions as they were before. “The new trading relationship will still require many of the same preparations, not least the introduction of customs declarations and additional checks on food and livestock,” added De Jong.  “Logistics UK is advising traders not leave paperwork to the last minute, or ignore it, as this will cause delays to journeys.” By Graham Hill thanks to Fleet News

Fleet decision-makers and the leasing industry is bracing itself for a price hike on new company car and van orders in the event of a ‘no deal’ Brexit.

However, in a note from BMW, seen by Fleet News, the German manufacturer has announced a customs duty related increase of more than £3,000 on the recommended retail pricing (RRP) of the BMW i3, irrespective of whether there is a free trade deal or not.

BMW had announced at the beginning of October that BMW i3 models, along with the majority of other BMW models, would be subject to an “economic increase” in the recommended retail price rise from January 1, 2021.

Due to changes in the ‘Product Specific Rules of Origin’ legislation, it says that the maximum permitted content of non-EU and non-UK materials means these models will be subject to additional tariffs after the end of the Brexit transition period.

This will be the case, it adds, “whether or not there is a free trade agreement with the EU”, which means a further increase in the RRP of BMW i3 models is needed.

The current RRP for a BMW i3 (ZI3I), valid until December 31, is £35,120 – the previously announced RRP, to be effective from January 1, was £35,670. However, BMW says that the new RRP from January will now be £38,785 – an increase of more than £3,600.

Similarly, the current RRP for a BMW i3 (ZI3J), valid until December 31, is £37,650 – the previously announced RRP, to be effective from January 1, was £38,200. However, BMW says that the new RRP from January will now be £41,315 – again an increase of more than £3,600.

It says that for Direct Sales Agency Agreement vehicles, orders registered on or before December 31 will be charged the pricing valid on the date of order.

Meanwhile orders registered on or after January 1 will be charged as follows:

Vehicles which arrive in the UK on or before December 31 and which are marked sold on or before December 31 will be charged the pricing valid on the date of order as the vehicle will not incur additional import charges. Vehicles must be registered by April 30, 2021, to benefit from this pricing.

Vehicles which arrive in the UK on or after January 1, regardless of the date of order, or which are marked sold on or after January 1, will be charged at the new price, incorporating the customs duty increase and are not price protected.

BMW’s price hike comes after Renault issued its own price warning ahead of a free trade agreement not being reached.

In a letter from Renault’s fleet director, Mark Dickens, to customers, he says that the manufacturer has been in discussions with our factories to secure “increased production of vehicles and parts” to mitigate any risk of disruption to supply at the UK-EU border.

In addition, he said that Renault has increased capacity and staffing to ensure the “timely delivery of vehicles, parts and accessories to our customers”.

Any customer order created up to and including October 31, 2020, will be price protected regardless of the importation date, he says.

Any order placed from November 1 onwards, and that is matched to a vehicle imported from January 1, however, could be subject to revised pricing based on the imposition of vehicle tariffs.

In the event that tariffs apply on import, Renault says that those will be as per World Trade Organisation (WTO) terms, and will be added to the order price. Tariffs on WTO terms equate to 10% of the total new vehicle price including options.

Furthermore, it says any vehicle imported from January 1, ordered from November 1, could be subject to revised pricing based on the imposition of vehicle tariffs.

Finally, it says that any customer order created from January 1 would be subject to any new pricing irrespective of vehicle importation date.

Dickens wrote: “We will continue to closely monitor events and will keep you informed of any developments.”

Fleet News reported last month, how manufacturers had written to leasing companies warning them that they cannot guarantee company car prices beyond the end of the year, even for some models being ordered now.

In letters sent to vehicle lease provides by major carmakers, including BMW, Jaguar Land Rover and Mercedes-Benz, they say that the threat of a ‘no deal’ Brexit was to blame for the potential price hike.

Talks between the UK and EU are due to resume in Brussels at this 11^th hour. A free trade deal is looking less likely but still in the balance.

Any deal between the UK and EU would need to be ratified by parliaments on both sides, so time is running out for an agreement to be reached and to get the sign off before December 31.

Residual Value Concerns

A senior manager working at an FN50 vehicle leasing company, said the lack of clarity around pricing was a big issue for the industry.

He said: “Our view is that we should be advising clients to hold back on orders unless they choose from the manufacturers that have said they will honour prices.”

He envisages a number of cancellations from customers where any price protection doesn’t apply.

Furthermore, in terms of future residual values, he said they were in a state of “limbo”.

“There is an argument that they should increase proportionately to the increase in new vehicle prices,” he said, “but that would only be if we expected that the used market increases in value proportionately in three years’ time.

“There is an argument for that, but the future used values would then be increasing in value because of a one-off tariff that is being imposed rather than anything that relates to enhanced value.

“Such increases may be correct when looking at the actual price values of new vehicles, but it is also a value based on the future value prediction of a tax, which doesn’t feel quite right either.”

He continued: “If the tariff was imposed for just an – undetermined – period of time, and then taken away, what would happen to used car prices? Will they also increase now for a while and the turn back or will they stay at the higher value? Will future residual values also rise and then fall again in that scenario?

“In essence, the uncertainty will show through in the new car and used car market we believe and cause a de-stabilising effect. This is never good news for anyone in the automotive sector.”

‘Costly’ Brexit Preparations

The Society of Motor Manufacturers and Traders (SMMT) has revealed the cost to the sector of preparing for Brexit has surpassed £735 million, with more than £235 million spent in 2020 alone.

Most companies (67%) across the industry say they are doing everything in their control to prepare for new processes that will come into play on January 1, with 70% securing GB Economic Operators Registration and Identification (EORI) numbers, 60% spending significantly on stockpiling and 52% employing customs agents, as companies also try to prepare for any disruption or delay to supply chains.

However, significant gaps in the industry’s ability to plan still exist, with a lack of clarity on the nature of the UK-EU’s future relationship hampering the efforts of almost nine in 10 (86%) firms to prepare.

Critical questions remain unanswered. With the industry’s competitiveness built on Just-in-Time deliveries, companies cannot afford any supply chain delays so clarity on the operation of key new customs systems such as the Goods Vehicle Movement Service (GVMS) and the Permission to Progress (P2P) process, is vital, says SMMT.

Moreover, even if the UK and EU do conclude a Free Trade Agreement (FTA) from the end of 2020, there is uncertainty as to how companies will prove origin or products; if firms cannot do this then they will not be able to benefit from preferential trading terms.

Mike Hawes, SMMT chief executive, said, “As the UK-EU FTA negotiations enter the endgame, now is the time for both sides to deliver on promises to safeguard the automotive industry.

“Securing a deal is absolutely critical but it cannot be any deal. To work for UK automotive it must deliver for UK products and that means securing the right terms and conditions that allow our exports – now and in the future – to be zero tariff and zero quota trade.

A deal that failed to achieve this would be the equivalent to no deal at all, devastating jobs and slamming the brakes on the UK’s ambitions to be a world leading manufacturer and market for electrified mobility and battery technologies.”  By Graham Hill thanks to Fleet News

For the last two years I’ve questioned the need for an electric vehicle charge infrastructure. We now have a deadline following which no petrol or diesel cars can be sold so we need to be satisfied that we can charge our EV’s.

Manufacturers are already developing cars with ranges up to 800 miles whilst BP have superfast chargers that can charge 80% in around 30 minutes. With average annual mileage dropping and set to remain low post COVID there is no need to have a massive charging infrastructure.

These are my views but they don’t seem to be shared by too many others. Let’s see what others say.

The number of public electric vehicle charging devices has increased 18% in the UK over the past year to 19,487.

The figure is included in the latest Electric Vehicle Charging Device Statistics report produced by the Department for Transport, which says that, of these, 3,530 were rapid devices.

This is an increase of nearly 10 times since 2015.

Rod Dennis, RAC data insight spokesman, said: “The rise in the number of charge points across the UK is very encouraging and sends all the right signals to drivers who might be thinking about opting for an electric model next time they change their car.

“Add in the fact that many people with electric cars can charge from home and overall it’s a positive picture.

“But there’s still a way to go and the focus now needs to be on installing as many fast chargers as possible, given that less than a fifth of public chargers are rapid.

“While the speed of fully charging an electric car can’t compete with the five minutes or so it takes to fill up a petrol or diesel model, a greater number of faster chargepoints could help tempt more people to ‘go electric’ sooner.”

The DfT report says there is an uneven geographical distribution of charging devices within the UK.

London has the highest level of charging device provision per 100,000 of population with 63, while Northern Ireland is lowest with 17. The UK average is 29 per 100,000 people.

Some UK local authorities have bid for Government funding for charging devices, and others have not.

The report says most of the provision of charge points has been market led, with individual charging networks and other businesses such as hotels choosing where to install devices.

Charlie Jardine, founder and CEO, EO Charging, the electric vehicle charge point and charging software developer, added: “It’s great to see an 18% increase in public chargers this year with a 7% increase in available chargers in the last quarter alone.

“We look forward to seeing this number grow as electric vehicles are set to be an essential part of how we ‘build back better’ from the Covid-19 pandemic.

“Whilst increasing the availability of public charge points is an important step in overcoming the barriers to EV adoption, 59% of vehicles on roads are company vehicles so businesses must carefully consider installing their own EV charging infrastructure.

“We’ve seen much evidence of businesses leading the way on this in recent months, with significant demand from our customers transforming their fleets across the UK and Europe from diesel and petrol to electric.”

At the end of last month, Richard Jones, managing director of Lex Autolease – the UK’s largest leasing company – labelled the country’s charging infrastructure “not-fit-for-purpose”.

He told Fleet News parts of the country are poorly served, limiting the wider adoption of EVs.  By Graham Hill thanks to Fleet News

 A man who stole construction machinery worth over £22,000 was caught out by the digger’s hidden tracker.

Robert Smith, 56, of Cuckoo Lane, Rampton, Cambridge, took the digger and trailer overnight between September 27 and 28, 2018.

The machinery was stolen from a substation in Wittering on the outskirts of Peterborough, but at 8:20pm on September 28, the digger’s owner was told by a telematics company that the vehicle was on the move.

It was at this stage the owner knew it had been stolen and called police. Co-ordinates from the tracker pinged in a wooded area and the National Police Air Service (NPAS) helicopter was called to assist officers.

The helicopter captured a van being driven out of the same wooded area, leaving the stolen digger and trailer behind.

The helicopter tracked the van onto a main road and followed it until it stopped, and two men ran from the vehicle on foot.

The van then continued but was stopped not long after by officers from Lincolnshire Police, with Smith – the driver of the van – being arrested on suspicion of theft.

In police interview Smith answered ‘no comment’ to all questions.

He was later served a postal requisition charging him with theft from the person of another. Smith denied the offence but changed his plea to guilty on the second day of his trial at Cambridge Crown Court on October 28.

He stood trial alongside two co-defendants who were found not guilty by jurors.

Smith was sentenced at Peterborough Crown Court on November 3, where he was handed 12 months in prison, suspended for 18 months. He was also ordered to complete 70 hours of unpaid work and pay £2,945 in compensation to the owner of the digger and trailer.

DC Jon Edwards, who investigated, said: “This was a case where officers were helped immensely by the NPAS helicopter and it highlights how useful that assistance can be.

“Despite Smith’s ‘no comment’ interview, and claims he was out poaching in the area, he was essentially caught red-handed with the stolen machinery.”  By Graham Hill thanks to Fleet News

Cap HPI says it is prepared to handle any large volume shifts in pricing from manufacturers that may arise from a ‘no-deal’ Brexit.

Fleet News revealed last week how leasing companies are being warned about a potential price hike on vehicles if the UK and EU fail to strike a trade deal.

In letters sent to vehicle lease provides by major carmakers, including BMW, Jaguar Land Rover and Mercedes-Benz, they say that the threat of a ‘no deal’ Brexit is to blame for the potential price hike.

If no deal is reached and ratified before December 31, automotive trade body, the Society of Motor Manufacturers and Traders (SMMT), has previously warned that World Trade Organisation (WTO) non-preferential rules, including a 10% tariff on cars and up to 22% on vans and trucks would apply.

That would have equated to a price increase of almost £3,000 on the average UK exported car to the EU, a £2,000 price increase on UK vans exported to the EU and a price increase of £1,800 on cars and vans imported from the EU, if fully passed on to UK consumers.

However, the UK is able to set its own tariff levels (as all countries can) and has since published the UK Global Tariff rates, which is the tariff schedule that will be adopted from January 1, 2021.

Following a consultation, the Government has agreed to simplify the tariff levels, with a 10% rate on all cars, vans and HGVs.

Manufacturers are working with Cap HPI on the scenarios relating to the potential charges and where the manufacturers have used the Cap HPI template, the new pricing change data will be ready in its system and visible in the event of a ‘no-deal’ Brexit.

It says that data will be available from January 1, 2021, to ensure fleets can continue to price vehicles accurately and easily.

Despite the Government’s target date of October 31 for a deal to be struck, negotiations are ongoing. If the protracted discussions end in a no-deal and no further talks are agreed, tariffs will come into force on January 1, 2021.

The impact will be significant, says Cap HPI, with vehicle manufacturers having to amend their vehicle and options prices to take these tariffs into account.

Jon Clay, head of vehicle identification at Cap HPI, said: “The team at Cap HPI has worked diligently with partners to ensure the new vehicle data systems are prepared for any eventuality.  If a no-deal Brexit is enforced, Cap HPI has ensured it has the teams in place to process the data supplied in an agreed format with the manufacturers.”

Vehicle manufacturers have been working closely with Cap HPI on a wide range of scenarios for some time to ensure a smooth transition for customers. Any pricing changes will start to be visible as early as the manufacturer allows, but most likely changing from January 1, it said. The changes will be made on a model range by range basis.

Experts at Cap HPI have offered guidance on the potential impact of Brexit on used car values.

Andrew Mee, head of forecast UK at Cap HPI, said: “As yet there is no evidence that Brexit concerns are having a negative effect on used car values.

“An outcome that sees tariffs on new cars may result in a reduction in new cars sales, which would be good news for used values.

“In the short term, higher new car prices may pull up some used prices, especially for newer cars.”

However, he said used values are still likely to fall during 2021 as the negative impact of coronavirus on consumer confidence, which could be worsened if Brexit has further negative impact on GDP and unemployment, is likely to outweigh the positive impact of higher new prices.

In the longer term, from three years into the future, the reduction in used supply should help lift used values, which by then Cap HPI expects will have recovered from the coronavirus impact.

Mee concluded: “We will not be altering our future value forecasts until we know for certain that tariffs are being introduced, how long they might last for, and post Brexit economic forecasts are updated, so that we can fully assess the broader picture.” By Graham Hill thanks to Fleet News