Renault & Nissan Facing Emissions Investigation

Friday, 10. July 2020

I mentioned last week that along with Mercedes, who have already been found guilty in Germany for using ‘defeat devices’ Renault and Nissan are facing investigations and court action for allegedly doing similar things.

As I already mentioned when the VW scandal was exposed, all of us in the industry knew what was going on with all manufacturers doing similar things – VW just happened to be the one manufacturer that got caught.

The latest update: Renault and Nissan have been accused of emissions cheating by law firm Harcus Parker, which claims that up to 1.3 million cars could be fitted with a ‘defeat’ device.

Both manufacturers strongly deny the allegations.

London-based Harcus Parker says it has seen independent test data that suggests 700,000 Renaults and 600,000 Nissans in the UK made between 2009 and 2018 could be affected.

It includes around 100,000 1.2-litre petrol versions of the Qashqai, plus diesel-powered Note, Juke and X-Trail. Diesel versions of Renault’s Clio, Espace, Captur, Megane and Scenic are all named in the allegations too.

The allegations follow those recently made against Mercedes-Benz, which has co-developed come powertrains with the Renault Nissan Alliance.

Damon Parker, senior partner at Harcus Parker, said: “For the first time, we have seen evidence that car manufacturers may be cheating emissions tests of petrol, as well as diesel vehicles.

“We have written to Renault and Nissan to seek an explanation for these extraordinary results, but the data suggests to me that these vehicles, much like some VWs and Mercedes cars, know when they are being tested and are on their best behaviour then and only then.

“These are vehicles which could and should meet European air quality limits in normal use, but rather than spend a little more on research and development, Renault and Nissan appear to have gone down the same path as VW and Mercedes and decided to cheat the tests.”

The law firm says owners of the affected vehicles could be due up to £5,000 in compensation if the claim is successful.

Nissan said: “Nissan strongly refutes these claims. Nissan has not and does not employ defeat devices in any of the cars that we make, and all Nissan vehicles fully comply with applicable emissions legislation.”

Renault said: “All Renault vehicles are, and always have been, type-approved in accordance with the laws and regulations for all the countries in which they are sold and are not fitted with ‘defeat devices’.”  By Graham Hill thanks to Fleet News

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Working From Home & Using A Private Car Will Have Serious Consequences.

Friday, 10. July 2020

Long-term changes to the way people work could result in more employees becoming grey fleet drivers.

As the lockdown is slowly lifted, employers are wrestling with what the ‘new normal’ might entail, including where staff will work in the future.

Millions of employees have been working from home during the pandemic and many expect that, with technologies like Miscrosoft Office Teams and Zoom allowing people to connect virtually, it’s a trend that will continue.

A Fleet News survey showed an overwhelming majority of fleet decision-makers – close to three-quarters (73.4%) – were working from home; one in 10 were dividing their working day between the office and home, and just 15.4% were still in the office full-time.

The latest picture will be revealed in the June digital edition of Fleet News, which will be published next week.

Meanwhile, a separate Fleet News poll suggested that for many, some two-thirds (68.1%) of respondents, working from home will become their ‘new normal’.

Paul Hollick, co-chair of the Association of Fleet Professionals (AFP), warns this could have significant consequences for fleets, with more employees joining the ranks of those that drive their car for work, the so-called grey fleet.

Employers have a legal obligation to ensure that grey fleet vehicles are reasonably safe to use, are fit for purpose and are lawfully on the road.

Companies also typically pay Approved Mileage Allowance Payments (AMAPs) to reimburse fuel used in the course of a work trip at 45p per mile.

“Grey fleet could become a bit of a battleground, because of Covid-19,” warned Hollick. “Employees won’t be office-based (in the future), they’ll be home-based, which means their contract of employment might be changed.

“If the employee is classed as home-based rather than office-based a journey from home to the office will then become a business trip.”

Furthermore, Hollick says that, with people wary of public transport, employees are turning to used vehicles in the sub-£3,000 bracket to stay mobile, which could end up being driven for work purposes. 

New figures from the Department for Transport (DfT) show how hard public transport has been hit. Journeys by national rail are 8% of typical levels and London tube use stands at just 14%.

During the first full day of lockdown (Tuesday, March 24), car use fell to less than half (44%) of the expected level. Light commercial vehicle (LCV) use stood at 55%, HGV use at 84%.

Three months later and the day after retail outlets were allowed to open for the first time on Monday, June 15, car use had risen, but was still only at 70%. Van use and HGV use had grown to 84% and 92%, respectively.

In line with Government advice to avoid public transport, cycling use has doubled during some weekdays and trebled at the weekend.  By Graham Hill thanks to Fleet News

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Vehicle Thefts Increase By Over 50%

Friday, 10. July 2020

Vehicle thefts have risen to highest level in four years, as more than 150,000 cars, vans and motorcycles were reported as stolen in 2018-19.

It’s an increase of 10,000 vehicles when compared to the year before and a 56% (54,932) increase compared to four years earlier, according to data analysed by RAC Insurance.

All but three of the police forces that responded to a Freedom of Information request recorded an increase in the numbers of vehicles stolen in their force areas from 2014-15 and 2018-19.

The largest increases were recorded by Kent Police (up 12,550 to 40,726 thefts in 2018-19, a 45% increase), Metropolitan Police (up 9,635 to 30,773 thefts, a 46% increase) and West Midlands Police (up 5,677 to 10,372 thefts, a 121% increase).

Six forces recorded a more than doubling in the number of vehicles stolen between 2014-15 and 2018-19, with the biggest jumps in Suffolk (up 172% from 347 to 945 thefts), Surrey (up 133% from 661 to 1,543 thefts) and the West Midlands.

Only Lincolnshire, the City of London and Police Scotland recorded a reduction in thefts during this period, with reductions of 28, 29 and 473 thefts respectively.

Most police forces (32) also recorded a rise in vehicle thefts year-on-year, between 2017-18 and 2018-19. Kent, again, saw the largest rise, as well as the largest number of overall vehicles stolen in 2018-19 (up 2,575 to 40,726 thefts, 7% more than in 2017-18), followed by Essex (up 1,056 to 5,409 thefts, 24% more than in 2017-18) and the West Midlands (up 836 to 10,372 thefts, 9% more than 2017-18).

When looking at the biggest percentage increases over this 12 month period, Suffolk witnessed the highest jump with 44% more thefts (945 in 2018-19 compared to 655 a year earlier), followed by Bedfordshire (37% increase, from 1,056 to 1,445 thefts) and North Wales (32% increase, from 464 to 612 thefts).

RAC Insurance spokesperson Simon Williams said: “These figures paint a rather disturbing picture – vehicle thefts are on the rise almost everywhere, and in some parts of the country numbers are rocketing.

“It’s also not the case that the rises in crime are confined to a few larger urban areas, with many police forces covering more rural areas also seeing big increases.

“While vehicle crime is at far lower levels today than it was in the early 1990s, thanks to improvements in vehicle security, and the number of vehicles licensed to be driven on the UK’s roads is higher than at any point in the past, it’s still concerning that so many more vehicles are being stolen than just a few years ago.”

The average fleet loses around £16,000 per year as a result of vehicle or equipment theft, according to Verizon Connect.

Its research found that businesses have at least one vehicle stolen each year.

The average loss increases to nearly £50,000 for those businesses that have between 101-250 vehicles, as the number of vehicles stolen rises to three for businesses of this size.

Some of the increases in recent years can be put down to a rise in thefts of vehicles that are easier to steal, such as motorbikes and mopeds that are less likely to have immobilisers. Government data also shows that thieves generally use keys to access vehicles in around half of crimes, which suggests that drivers need to do more to keep their keys safe.

Tracker data suggests that nine out of 10 van thefts were performed using the keys.

In a fifth of cases (18% in 2018), thieves were able to access vehicles because they weren’t locked in the first place.

Company car drivers and fleets are being warned by Tracker to be wary of opportunistic criminals looking to steal cars to fill a replacement parts gap caused by COVID-19.

The stolen vehicle recovery company says that police across the country are already fighting an increase in ‘chop shops’ – where stolen vehicles are stripped down and expensive parts sold on. But, it argues, the lack of legitimate parts could increase their popularity and profitability still further. By Graham Hill thanks to Fleet News

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Cap HPI Confirm That There Is No Drastic Drop In Used Car Prices

Saturday, 20. June 2020

Initial analysis of the impact of the coronavirus pandemic on used car values does not show a “seismic” shift in prices being achieved, suggests Cap HPI.

 

However, it is urging caution and warned vendors to expect “volatile” price movements over the coming weeks.

 

Cap HPI says that more vehicles are beginning to be sold at auction, with pricing data volumes increasing by 70% in the week commencing May 4, compared to two weeks earlier, in the middle of April.

 

From the start of the lockdown, the company stated that it would be analysing both used car retail and wholesale data, but it would not adjust used values while there was insufficient data to portray the market accurately.

 

Between March and May 10, no values were moved, but now that cars are selling in more volume, it says they need to be adjusted to reflect sold prices and allow the trade to buy and sell optimally.

 

The latest data shows that average wholesale selling prices have increased steadily from around £4,000 to more than £7,000, suggesting vendors are now more confident of selling slightly more expensive cars.

 

Early indications suggest a 2% to 5% downward movement for some of those models and ranges older than five-years-old.

 

Derren Martin, head of valuations UK at Cap HPI, explained: “The previous five years have seen an average drop of 4% during April and May at the five-year-old age point, and last year witnessed a 6.3% drop. So, the movements we are currently seeing in the middle of this pandemic are by no means seismic. We are reflecting the data as volumes slowly increase.”

 

Cap HPI reported a 2.2% fall in used car values on March 27. The total cumulative Live movement during March, leading to April’s monthly values, was an average drop of 2.2% (-£275) at the three-year, 60,000-mile point, the majority of which happened in the final 10-days of valuing. For newer used cars, the drop was 1.8% (-£425) at the one-year, 20,000-mile point.

 

In April, Cap HPI observed around 7,500 sold records and that number has already been exceeded by the middle of May.

 

Furthermore, both Manheim and CD Auction have reported they have started online sales, while BCA has continued its online offering during the pandemic.

 

Cap HPI says that, while wholesale records are still well below usual volumes, there is now enough data for prices to be reflected to assist the industry.

 

Martin continued: “We are now in a position to confidently move values in line with the market, taking a prudent approach using our editorial expertise, no algorithms, to analyse the data.

 

“Initially, we will be moving values on older vehicles in mainstream sectors, where there is enough evidence to accurately reflect current prices, by looking at each generation of model individually.”

 

However, he said: “No overall market movements will be applied. At the current time, younger used cars will not be moved in value as that end of the market is still very much in a hiatus.”

 

The data company says outliers, unrepresentative volumes and prices will not be reflected to move values.

 

It has also made the decision not to move values of younger cars or of cars in niche sectors, due to the paucity of data available.

 

For now, it says that valuation movements will only be made on cars between around five and 20-years old. The situation will be reviewed on an ongoing basis.

 

The analysts at Cap HPI are also analysing retail advertised prices in large volumes, although it says movements on retail price have been negligible.

 

Martin concluded: “We can see how retail and trade values operate differently in the market and this continues to be true during the pandemic.

 

“It’s more important than ever to take a careful, considered view from the evidence and it is likely to be a volatile time for used car prices over the next few weeks, whilst supply and demand dynamics work themselves out.

 

“We would recommend the industry keeps a very close eye on our daily valuations as they may move in either direction.”  By Graham Hill thanks to Fleet News


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Government To Introduce 6,000 Motorway EV Fast Chargers

Saturday, 20. June 2020

I’m still mystified as to why the industry seems to be preoccupied with the charger infrastructure given that fact that the super fast chargers can charge a car in around 15 minutes and as new electric vehicles are launched their range is not too far away from the range of a full tank of petrol. Anyway here is what the Government said:

 

The Government expects up to 6,000 additional rapid electric vehicle (EV) chargers will be required across the UK’s motorways and major A roads by 2035.

 

A £500m Rapid Charging Fund was announced in the March 2020 budget. It will be used to assist where the electrical connection costs of upgrading sites to meet future charging demand is not commercially viable.

 

The Government said it has undertaken a detailed analysis to assess the number of chargepoints required to meet future en route charging needs along motorways and major A roads.

 

Currently, a driver is never more than 25 miles away from a rapid (50kW) chargepoint anywhere along England’s motorways and major A roads, with a total of 809 open-access rapid chargepoints, as of January 1 2020. This includes an average of two rapid chargepoints at motorway service areas with more being rolled out over the next year.

 

As part of the UK’s commitment to end our contribution to climate change, the government is committed to supporting growth of green, zero emission technologies.

 

It is consulting to bring forward the end of the sale of new petrol and diesel cars and vans to 2035, but realises that extensive public charging infrastructure across the motorways and major A roads is a key part of this transition.

 

By 2023, it aims to have at least six high powered, open access chargepoints (150 – 350kW) at motorway service areas in England, with some larger sites having as many as 10-12.

 

By 2030 it is planning for there to be around 2,500 high powered chargepoints across England’s motorways and major A roads.

 

The Government said the new charging points will allow drivers to pay for the cost of charging their vehicle using debit or credit card payment and there will be clear pricing information available in pence per kilowatt hour.

 

James Taylor, general manager for Zipcar UK, said: “We are encouraged to see the government’s mission to accelerate the UK’s transition to electric vehicles, as rapid electric vehicle chargers are fundamental to enabling growth.

 

“However, while great progress is being made, we believe that more needs to be done. A ubiquitous charging infrastructure is vital to the growth of electric vehicles and is key to building consumer confidence in using them.

 

Rapid chargers have a key role to play, but a combination of rapid, fast and more on-street chargers are needed, particularly in urban areas such as London where air pollution levels are usually high.”

 

Dr Nina Skorupska CBE, chief executive of the REA, added: “This is an important moment for the UK’s electric vehicle sector, one which should give confidence to investors, fleets, and individual drivers alike.”  By Graham Hill thanks to Fleet News


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New Technology Reduces Waiting Time At Temporary Traffic Lights

Saturday, 20. June 2020

A new ‘smart’ traffic light system is helping to reduce waiting times for drivers across the South East.

 

Seven towns across Kent and East Sussex have benefited so far from new technology, which was successfully trialled by electricity firm UK Power Networks in Maidstone, last summer.

 

As the Covid-19 pandemic continues, the firm has worked with local councils to use the new smart traffic lights across Marden, Orpington, Crowborough, Twickenham, Maidstone and Dover.

 

The temporary traffic lights, which are sometimes necessary, to cater for roadworks use something called the ‘autoGreen’ radar system. It automatically detects congestion and makes continuous adjustments to the phasing of the traffic lights to maximise traffic flow, all without the need for an operator’s intervention.

 

Each site is different, it says, but this form of artificial intelligence adapts to the situations it monitors, creating safer, more efficient and less stressful journeys and local environments.

 

The trial in Maidstone revealed that in heavy traffic autoGreen reduced journey times between 8% and 12%, rising to 27% to 41% in congested conditions, with some 15-minute periods cutting journey times by half.

 

Other benefits to motorists and councils included less impact on surrounding infrastructure and reducing the environmental impact of queuing traffic. It also improved safety for workers on site, by reducing their exposure to pollution, safety risks and occasional abuse, it said.

 

Paul Dooley, streetworks performance manager at UK Power Networks, explained: “Our trial in Kent using this technology was well received.

 

“We were able to demonstrate the tangible benefits and help to alleviate environmental concerns. There was a greater increase in cars passing per hour. This in turn led to shorter journey times along with an overall improvement in air quality.”

 

Dooley says that the system accurately tracks vehicle movements and uses this information to optimise the operation of the lights, varying the decision-making algorithms and timings.

 

He concluded: “Our long-term aim is for this type of smart traffic lights to be deployed whenever we need to do roadworks that affect traffic, across Kent and the other areas that we serve, in future.”  By Graham Hill thanks to Fleet News


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Council To Fine Drivers Who Keep Their Engines Running

Saturday, 20. June 2020

Drivers who leave their vehicle’s engine running while parked face a £20 fine after Lambeth Council introduced the penalty to improve air quality.

 

Drivers who allow their vehicle engines to run “unnecessarily” when parked in the London borough will be asked to turn off their engines, and if they fail to cooperate, will be issued with the fine from Monday (May 18).

 

The move builds on previous anti-idling events in the borough to raise awareness and educate drivers on the effects of idling, it said.

 

Councillor Claire Holland, Lambeth’s deputy leader  and cabinet member for sustainable transport, environment and clean air, said: “Cleaning up toxic air is an absolute priority for this council.

 

“Poor air quality is a huge health risk to our residents, and engine idling is a major contributor. We are determined to tackle the issue and are confident these new measures will help encourage people to change their behaviour so that everyone in Lambeth – particularly young children due to the effects on their development – is able to breathe clean air.”

 

In Lambeth, Waterloo, the Southbank, central Brixton, Clapham and the Vauxhall Gyratory have been identified as idling hotspots.

 

Outside schools, hospitals, taxi ranks and coach bays have also been flagged as key locations for drivers committing idling offences.

 

Between February 2018 and September 2019 wardens in Lambeth told 2,044 drivers to switch off their engine while stationary, of which 2,017 drivers complied with their advice and 27 people did not.  By Graham Hill thanks to Fleet News


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More Drivers Are Avoiding Various Motor Fines

Saturday, 20. June 2020

The volume of motoring fines and penalties incurred by company car and van drivers increased by 3% in 2019, new figures from Lex Autolease show.

 

This compares to a 60% year-on-year cumulative increase over the past three years, suggesting a slower rate of increase than in previous years.

 

This was also reflected in the value of fines incurred by drivers, which did not grow for the first-time last year, bucking the trend of yearly increases from £10.7 million in 2016 to £17.1m 2019.

 

The percentage of drivers caught by bus lane cameras fell for the first time by 17% year-on-year, with fines issued for congestion charges and council parking also falling by 6% and 4% respectively.

 

Mersey Flow and Dartford Crossing fines also saw a year-on-year decrease with the total number of penalty notices issued falling by more than two fifths (44%) from 54,618 in 2018 to 30,391 in 2019.

 

However, the picture is not entirely positive, says the country’s largest vehicle leasing company.

 

The percentage of motorists penalised in private car parks rose by 6% year-on-year to £6.2m, and illegal junction-box stops and red-route driving fines increased by almost a fifth (19%) to £6.3m during the same period.

 

Lex Autolease analysed data from more than 361,000 company cars and vans to identify trends in behaviour and driver safety.

 

Kim Morris, motor operations director at Lex Autolease, said: “Company car drivers are often more likely to incur fines and penalties on the roads when compared to ordinary motorists, as the pressure to hit deadlines and attend meetings on time can sometimes lead to poor driver behaviour.

 

“The majority of fines can be easily avoided and if not closely monitored can quickly add up to expensive outgoings for employers – especially those with larger fleets.”

 

She believes that the emphasis fleet managers have placed upon driver health and safety in recent years is starting to pay off, with a considerable slowing in the rise of the number of fines incurred and a decrease in the number of fines for commonplace offences, including bus lane driving and congestion charges.

 

However, she said: “Our analysis shows that there’s still more businesses can do to educate their employees to bring these numbers down further.

 

“Continuing to invest further in driver education can help to modify employees’ driving habits and in turn save businesses unnecessary outgoings each month.”

 

She concluded: “As the new tax changes for alternatively-fuelled vehicles gather momentum, driver education will become even more important for fleets to make sure avoidable fines and penalties do not offset the cost saving benefits of low or zero emission vehicles.”  By Graham Hill thanks to Fleet News


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Latest Diesel Engines Are The Cleanest Ever And Cleaner Than Petrol

Thursday, 11. June 2020

I’ve included the following report because it illustrates a point that I’ve been making for some time now that diesels are now cleaner than petrol cars and as we are years away from all cars being electric should they still be demonised and disregarded by drivers?

 

The fact is that whilst sales of petrol vehicles now massively exceeds the sale of diesels, if you are environmentally aware but not in a position to drive an electric vehicle should you immediately opt for petrol? Petrol emits more CO2 than diesel so if we’re not careful we will see the opening up of holes in the ozone layer – remember those? So read the report, aimed at the fleet industry, and draw your own conclusions.

 

Once the fuel of choice for the company car driver, diesel’s dominance among fleets has been on the wane for some time.

 

Its reputation tarnished and the attraction of tax-busting hybrid and battery electric vehicles (BEVs) difficult to ignore, numbers have continued to dwindle.

 

Industry leaders say they cannot see a way back for the embattled fuel and this is despite diesel beginning its fightback last year, when the first cars complying with the latest emissions standard began joining UK fleets.

 

Cars qualifying for the so-called RDE2 standard do not attract the 4% diesel company car tax surcharge, while fleets benefit from not having to pay the higher first-year rate of VED.

 

Shaun Sadlier, head of consultancy at Arval UK, says the savings from choosing a RDE2 diesel company car can run into “thousands of pounds” over a typical three-to-four-year lease contract.

 

“Fleets operating RDE2 cars also benefit from lower Class 1A NICs and first-year VED costs in comparison with a non-compliant model,” he said.

 

Mercedes-Benz, Jaguar Land Rover (JLR) and BMW were among the first to offer RDE2 cars. Rob Morris, national fleet operations manager, at Mercedes-Benz, says that its RDE2-compliant engines were a “popular choice” with customers.

 

All Mercedes-Benz cars produced from this month (June) will meet the stricter standard.

 

Vauxhall has become the first volume manufacturer to offer the emissions standard across its range.

 

James Taylor, general sales director at Vauxhall, told Fleet News: “That means all new Vauxhalls avoid the 4% diesel surcharge on benefit-in-kind (BIK), offering savings to our customers of up to £22 and £43 per month for 20% and 40% taxpayers, compared with the same (non-compliant) models.”

 

STRICTER LIMITS

 

The on-the-road Real Driving Emissions (RDE) test was introduced alongside the new emissions testing regime, the Worldwide harmonised Light vehicle Test Procedure (WLTP), in two stages.

 

RDE1 was introduced in September 2017 for new car type approvals and applied to all new car registrations from September, last year. Vehicles compliant with this standard are designated Euro 6d-Temp. The stricter RDE2 standard came into force from January for new type approvals and will be applicable to all new cars, which will be labelled Euro 6d, from January 2021.

 

Cars certified to RDE1 (Euro 6d-Temp) must emit less than 2.1 times the Euro 6 NOx limit of 80mg/km for diesel and 60mg/km for petrol engines. This conformity factor tightens to 1.43 times for RDE2-compliant (Euro 6d) vehicles.

 

In 2023, it’s expected conformity factors will be removed, aligning laboratory and on-road emissions limits.

 

Alongside Vauxhall, other Groupe PSA brands have become RDE2-compliant, including all Citroën and DS diesel models, plus the majority of Peugeots now also meet the stricter emissions standard.

 

RDE2 models include all 1.5-litre and 2.0-litre BlueHDI-powered Citroëns and DSs, with manual and EAT8 automatic transmissions.

 

BlueHDi versions of the Peugeot 3008 and 508 have also qualified, along with the new 208 and 2008.

 

Martin Gurney, who is responsible for fleet and used vehicle sales for Peugeot, Citroën and DS in the UK, says Groupe PSA has been “working hard” to ensure its vehicles are compliant ahead of schedule.

 

He added: “These early announcements should reassure customers that we are committed to engineering clean and efficient powertrains for all drivers. The fact that most of our diesel models already meet the forthcoming RDE2 standards speaks volumes about the development that goes into our engines.”

 

BMW continues to add RDE2 models, while Hyundai says it will add further RDE2 engines to its line-up to join the i10, later this year.

 

Other manufacturers, such as Audi, Škoda, Renault and Kia, which do not currently have any RDE2 cars, say launches in the second half of the year will see compliant models come through.

 

But will a wider choice of cars, which avoid the 4% surcharge, be enough to halt the demise of diesel?

 

DIESEL’S DECLINE

 

The leasing industry is reporting growing interest from savvy fleets, but all admit the focus is shifting to zero emission motoring.

 

Figures from the Fleet News FN50 show that the proportion of diesel cars on the FN50 fleet – the UK’s top 50 leasing companies by risk fleet size – fell from almost two-thirds (63.4%) to almost half (50.5%) in 2019.

 

In terms of vehicles they had ordered, the flight from diesel was still more pronounced. Almost half of the cars ordered last year were petrol (47.6%), while only two-fifths (38.8%) were diesel.

 

Jon Lawes, managing director of Hitachi Capital Vehicle Solutions, has seen a growing fleet interest in RDE2 diesel cars.

 

However, he says this is when there is a direct comparable alternative available for the model they want.

 

He explained: “WLTP has been responsible for the wholesale rise of CO2, irrespective of RDE categorisation, and, therefore, we’ve seen a continued negative shift in perception of diesel vehicles.”

 

WLTP CO2 values for company cars registered after April 6, which are typically higher than those derived from the old emissions testing regime for comparable vehicles, are now used for tax purposes.

 

Their use has coincided with a new company car tax regime to try to take account of the hike in emissions, which also includes a new zero percentage rate for battery electric vehicles (BEVs).

 

PLUG-IN INCENTIVES

 

Lawes says he expects a “continuing overall decline” in diesel market share as more fleets opt for plug-in hybrid or BEV alternatives.

 

However, he did offer a glimmer of hope for diesel powertrains. “We expect RDE2 models will cause this decline to plateau as this will provide a favourable cost-effective option for some sectors and drivers.”

 

David Bushnell, principal consult-ant at Alphabet (GB), said: “For those high mileage drivers, where diesel is still probably the number one choice for fleets, the selection of an RDE2 vehicle will clearly make sense in terms of personal taxation and national insurance costs.

 

“It’s also an existing technology that many drivers are comfortable using. But, even here, we’re seeing mild hybrid technology coming in to reduce drivetrains’ CO2 output.”

 

However, he says the “clear additional tax benefits” for choosing plug-in hybrid and battery electric vehicles, revealed in the Budget, will prove hard to ignore.

 

Chris Chandler, principal consultant at Lex Autolease, has seen a similar trend. He said: “The cost savings and environmental benefits of a plug-in hybrid or full electric alternative are more attractive at the moment.

 

“The main question we’re being asked by fleets on a daily basis is how they can start – or accelerate – their transition along the ‘Road to Zero’.

 

“The availability of RDE2 vehicles and how to optimise diesel fleets seems to be far lower down fleet managers’ agendas.”

 

GROWING INTEREST

 

Chandler’s comments appear to be backed up by the results of a recent Energy Saving Trust survey.

 

It revealed that one-in-three UK fleet managers expect half of their company car fleet to be electric by 2025, and seven-in-10 fleet managers are preparing to buy an electric car within two years.

 

Matthew Walters, head of consultancy and customer data services at LeasePlan UK, said: “From our conversations with fleet managers, it’s evident WLTP is still the main consideration when it comes to compliance-related tax savings and how this impacts the vehicle selection process.”

 

He expects sales of internal combustion vehicles (ICEs) to fall as electric vehicles become more available and increasingly affordable.

 

Lex Autolease has seen a significant increase in demand for plug-in hybrid and full electric vehicles over the past 12 months, especially since the 0% BIK tax announcement.

 

Chandler says a “good awareness” of wholelife costs in the market is driving the shift towards low and zero-emission driving.

 

He said: “Rather than pay 25-30% tax on a RDE2-compliant diesel vehicle, company car drivers seem to be more focused on taking advantage of the tax benefits of plug-in hybrid and pure electric cars.”

 

As a result, the UK’s largest vehicle leasing company, Lex Autolease, says it doesn’t anticipate increased availability and understanding of RDE2-compliant models will significantly slow the decline of diesel.

 

Chandler added: “RDE2-compliant models will simply account for a growing proportion of the existing diesel market.”  By Graham Hill thanks to Fleet News.


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New Report Recommends Battery Condition Reports To Improve Electric Vehicle Resale Values

Thursday, 11. June 2020

Autovista Group has published a new whitepaper outlining how a report outlining the remaining battery life of an electric vehicle (EV) could improve its residual value.

 

Created in partnership with battery analytics specialist TWAICE and TÜV Rheinland, the document states that driving profile has a major impact on how long a battery lasts and in the absence of documentation of how a driver has treated the battery, residual value formation remains below its full potential.

 

“Used car programmes and extended warranties are already powerful signals that help address the information asymmetry between buyer and seller. But the BEV represents a new challenge for the market,” said Christof Engelskirchen, chief economist at Autovista Group.

 

“We know that how the battery is treated over the 8-10 years of its lifetime has a major impact on range and therefore suitability for daily use, but car manufacturers provide no systematic transparency on battery treatment and quality.”

 

Munich-based TWAICE has the technology in place to evaluate the true remaining quality of a battery based on how it was treated. It creates a digital twin of a battery and can simulate the impact of operating conditions, driving style, and charging behaviour.

 

Jonas Keil, battery engineer at TWAICE, said: “Many people underestimate the impact of battery treatment. At the three-year point with 28,000 miles on the clock, a battery that has been poorly treated will perform worse on promised range by about 5% – and this gap will only increase as battery quality, once lost, cannot be recovered.”

 

Autovista Group has simulated that improved and verifiable battery quality, provided in the form of a Battery Health Report, delivers up to £400 higher remarketing results for a three-year-old used C-segment BEV in Germany.

 

Dr. Matthias Schubert, executive vice president mobility at TÜV Rheinland, added: “Numerous long-term tests have shown that the aging pattern of EV batteries can vary widely amongst individual cases, depending on the user profile. An assessment of the remaining capacity and expected performance lifetime is a decisive precursor to establishing residual value.”

 

The full potential of a Battery Health Report can only be realised if information on battery treatment becomes available as a standard data item on every used BEV transaction, similar to information on age, mileage and equipment.  By Graham Hill thanks to Fleet News.


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