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VW has lost the first major ruling in a landmark High Court lawsuit by owners in England and Wales affected by the Dieselgate emissions scandal.

The class action lawsuit, which could be the largest consumer action in English legal history, involves almost 90,000 owners of Audi, Seat, Skoda and Volkswagen models. They are claiming for compensation over the installation of illegal ‘defeat devices’ to cheat European emissions standards.

Lawyers for the owners say Volkswagen knowingly “cheated” these rules put in place to “save lives”  by installing an unlawful device designed to detect a rolling road test and alter the combustion process to reduce nitrous oxide (NOx) emissions by up to 40 times.

 

The judge in the case, Mr Justice Waksman, ruled that “the software function in issue in this case is indeed a defeat device” under the classification defined by the European Union. The judge claimed he was “far from alone in this conclusion”, noting various courts and industry bodies that agree with the verdict.

He called Volkswagen’s defence “highly flawed” and “absurd”, adding: “A software function which enables a vehicle to pass the test because it operates the vehicle in a way which is bound to past the test and in which it does not operate own the road is a fundamental subversion of the test and the objective behind it.”

After the ruling, the head of group litigation at Slater and Gordon, which represents around 70,000 of the claimants, said in a statement: “This damning judgement confirms what our clients have known for a long time, but which Volkswagen has refused to accept: namely that Volkswagen fitted defeat devices into millions of vehicles in the UK in order to cheat emissions tests.”

Volkswagen responded that it is “disappointed” in today’s ruling but that the “judgement relates only to preliminary issues”. The company intends to appeal.

“To be clear, today’s decision does not determine liability or any issues of causation or loss for any of the causes of action claimed,” it said in a statement. “Volkswagen remains confident in our case that we are not liable to the claimants as alleged and the claimants did not suffer any loss.”

The first hearing began in December 2019, looking at whether the company’s ‘EA189’ diesel engine (sold in 1.2-litre, 1.6-litre and 2.0-litre capacities) featured such a device.

Despite today’s ruling, there are still further phases of the case, including determining ‘causation’ – i.e. whether or not the defeat device caused damage. These are due to play out at the end of this year or early 2021. If the verdict goes against Volkswagen, it could be ordered to pay hundreds of millions of pounds in compensation.

Volkswagen hasn’t paid compensation to any UK owners, claiming the cars weren’t fitted with a ‘defeat device’ under UK law. Previous rulings to the contrary in other countries, such as the US, carry no weight in the UK, hence the need for the class action proceedings.  By Graham Hill thanks to Autocar

Volvo has limited all its new cars to a maximum speed of 112mph, as part of its commitment to road safety.

 

The Swedish brand announced the initiative last year and started limiting vehicles from the beginning of 2020.

 

As well as the speed cap, every Volvo car will now also come with a Care Key, which allows Volvo drivers to set additional limitations on the car’s top speed. The new initiative is similar to the Ford MyKey, which enables owners to set a maximum speed and other restrictions, such as loud the stereo can be turned up.

 

“We believe that a car maker has a responsibility to help improve traffic safety,” said Malin Ekholm, head of the Volvo Cars Safety Centre. “Our speed limiting technology, and the dialogue that it initiated, fits that thinking.

 

The speed cap and Care Key help people reflect and realise that speeding is dangerous, while also providing extra peace of mind and supporting better driver behaviour.”

 

The top speed limit has proven to be controversial since it was announced, with some observers questioning the rights of car makers to impose such limitations through available technology.

 

From 2022, all new cars sold in the UK must be fitted with a speed limiter linked to traffic sign recognition or GPS data, however they can still be overridden by the driver.

 

The Volvo system has no override, meaning flagship models such as its S60 and S90 T8 twin engine variants may be less desirable when compared to rivals, which are limited to 155mph.

 

Volvo says that above certain speeds, in-car safety technology and smart infrastructure design are no longer enough to avoid severe injuries and fatalities in the event of an accident, however.  By Graham Hill thanks to Fleet News

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

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

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

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

Euro NCAP has announced a series of new safety tests into its programme, which have been labelled as “game-changing” by Thatcham Research.

 

Vehicles launched in 2020 will undergo the new tests later this year, which are designed to “address long-standing needs in occupant protection, improve post-crash protection and promote the latest advanced driver assistance technology.”

 

A key change is the implementation of a new moving barrier to the moving car frontal crash test. It replaces the offset-deformable barrier test, which has been used by Euro NCAP for the last 23 years.

 

This new test evaluates the protection of occupants inside the car while also assessing how the car’s front-end structure contribute to injuries in the collision partner.

 

“The objective is to encourage makers of larger vehicles to share some of the burden of the impact with smaller vehicles. Historically SUVs and other big cars have offered very good protection to their occupants. However, the smaller vehicles they sometimes crash into can fare less well,” said Matthew Avery, director of research Thatcham Research and Euro NCAP board member.

 

In the new compatibility test, if the larger vehicle is too stiff in an impact scenario, it will be penalised accordingly. Avery says this levels the playing field for all vehicle sizes, which is a “win-win for road safety”.

 

Side impacts account for the second highest frequency of death or serious injuries. The latest updates to this area of the safety assessment include adjustments to the near-side barrier test speed and mass, increasing the severity of the test.

 

Euro NCAP will, for the first time, evaluate far-side impact protection, focussing on driver protection and the potential interaction between driver and front seat passenger. With the latter test, the protection offered by new-to-market countermeasures such as centre airbags can be adequately verified.

 

The organisation has also added new, more challenging, test scenarios to rate AEB technology for cars and vulnerable road users, including back over situations and turning at a crossing. In addition, the first step is taken to evaluate Driver Status Monitoring systems, designed to detect driver fatigue and distraction, as part of the Safety Assist assessment.

 

Post-crash safety too plays a vital role in crash survival. In partnership with CTIF, the International Association of Fire & Rescue Services, Euro NCAP developed new rating rules to promote better post-crash safety.

 

Manufacturers will be rewarded when rescue information is accurate and easily available. Euro NCAP also checks ease of extrication, electric door handles, etc. and endorses advanced eCall functions.

 

Avery said: “These are the biggest changes to Euro NCAP’s impact testing protocols in a decade. Chief amongst them is the new ‘compatibility’ impact test. For the first time there will be two moving elements to the head on collision: the test vehicle and barrier.

 

Most importantly we will not only look at the intrusion occurring to the vehicle being tested, but also to the new Mobile-offset Progressive Deformable Barrier.”

 

In addition, a new ‘THOR’ mid-sized dummy will be used in the tests. Avery continued: “The THOR dummy is the most advanced we’ve ever worked with. It makes the new test especially challenging for carmakers, as the dummy more closely represents a human.

 

The previous dummy we used was designed for impact scenarios that are less common today, while the THOR dummy is far more complex and sensitive and can record abdominal injuries.

 

“As a result, carmakers not only have to tune vehicle restraints and structures to accommodate for THOR’s sophistication, but there is also the new barrier to consider.” By Graham Hill thanks to Fleet News

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

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.

Sanitisation costs for cars and vans bei g delivered and returning from garages are beginning to appear.

 

Dealers and garages are currently “working out” who pays the cost of sanitisation on cars and vans that are delivered to their new owners or undergo service, maintenance and repair (SMR).

 

There appears to be general agreement among all parties that vehicles will need sanitising thoroughly before they are handed over or handed back after service and maintenance to the customer or employee with a company car.

 

But who is to pay for cleaning products, PPE equipment and the time taken? These costs can’t simply be absorbed by the dealers and garages.

 

Tim Meadows, vice president and commercial director at Epyx, said: “This is a development that we are just starting to see through our 1link Service Network SMR platform, which is used by fleets totalling four million vehicles, as lockdown starts to ease.

 

“Sanitisation is becoming recognised as an essential part of almost any visit by a vehicle to a workshop. The car or van is potentially touched by many people as part of almost any SMR process, and the potential spread of infection needs to be minimised.

 

“However, that sanitisation has a cost and is starting to appear as a formal charge on some job sheets. The question is, who pays?”

 

Meadows says that garages “understandably” see it as an additional cost that they shouldn’t have to bear. “Their customers, equally understandably, feel the same,” he said.

 

The issue is especially acute where, on lower Service Maintenance and Repair bills, it could be interpreted as a disproportionate amount, added Meadows.

 

“If you are having £1,000 of work done, then a potential £10 item doesn’t stick out but, if your car is in the workshop for a MOT test or even just having a small repair, it becomes more noticeable.”

 

Leasing companies that already work on very small margins are working with dealers and manufacturers to arrive at a compromise to avoid increased delivery costs

 

Meadows continued: “Some of the fleets that use 1link Service Network have hundreds of thousands of maintenance jobs every year and adding £10 to each suddenly becomes a very large sum of money.

 

“Equally, this is a significant cost for garages to absorb. However efficient they become at sanitisation, this is something that takes time and money.”

 

Meadows believes that one thing that the industry had seen during the coronavirus crisis is a “very strong spirit of co-operation”.

 

“Everyone recognises that they are facing the same issues and they need to resolve them together,” he said. “We are sure that sensible solutions will be found to this problem.”

 

I agree, it’s not the end of the world, an extra £10 for most jobs is not over the top, it’s more the concern on the part of the customer that the sanitisation has been carried out. So many changes to our lives, not just in the short term but forever. By Graham Hill thanks also to Fleet News