British Gas And RAC Provide EV Chargers On Specialist Tariff

Wednesday, 8. September 2021

The RAC has partnered with British Gas to offer an electric vehicle (EV) charger and tariff to support drivers of plug-in cars.

It follows the launch of the RAC’s EV leasing website and enables customers to have a smart 7kW home charge point installed by a British Gas engineer paired with a bespoke electricity tariff with cheaper off-peak overnight charging.

RAC director of EVs Sarah Winward-Kotecha said: “We’re very excited to have teamed up with British Gas to offer home charge points and a bespoke EV electricity tariff as they’re as synonymous with taking care of people’s energy needs as we are with fixing and rescuing cars.

“Working with trusted names like British Gas and Hitachi Capital Vehicle Solutions means customers can now – through the RAC – lease some of the most popular electric cars at market-leading prices and get a smart home charge point installed with a specialist energy tariff that offers cheaper off-peak EV charging.

“Combine all this with RAC EV breakdown cover, which is unrivalled in the roadside assistance market, and drivers now have everything they need to affordably switch to a zero-emission car with complete peace of mind.”

Customers who want to have a home charge point installed via the RAC have the choice of two models – with either fixed or removable cables – made by Alfen. Both come with a three-year warranty and are installed by a British Gas trained EV installer. The Alfen Eve S-Line Untethered can be installed from £659 and Alfen Eve S-Line Tethered from £745.

Both chargers can be controlled via a smartphone, allowing drivers to schedule charges to take place overnight when the electricity rate is cheaper. They can also look back at their daily, weekly and yearly charging, to see the cost and their electricity usage.  

The RAC-e Recharge Electric Car Tariff costs 6p per kWh between 12-5am, which could save up to £300 annually.

Americo Lenza, portfolio director at British Gas, added: “Working in partnership with the RAC allows us to provide a unique proposition for those looking for hassle free motoring.

For the first time, drivers can now combine the vehicle, the charger, the green energy, the servicing and the breakdown cover in one place. Supporting customers with cost effective ways to make the change to electric is vital as we transition away from petrol and diesel cars. Once you’ve switched, you’ll never go back.”  By Graham Hill thanks to Fleet News

Nearly 18,000 Major Offences Recorded On UK Motorways Since 2016!

Wednesday, 8. September 2021

Auto Express investigation shows extent of drivers and pedestrians breaking the law on motorways, with illegal stops accounting for more than a third of all offences.

Drivers are putting lives at risk by committing thousands of dangerous motorway manoeuvres every year, Auto Express can reveal. Our investigation surveyed 28 police forces and found officers had issued at least 17,775 tickets over the past five and half years, catching people making U-turns on motorways, driving the wrong way on slip roads, stopping in live lanes and driving on hard shoulders.

What we did

Motorways are subject to specific traffic laws set out by The Motorways Traffic (England and Wales) Regulations 1982. These make it illegal, for instance, to walk on a motorway, and govern where drivers are allowed to enter the roads, and how they must behave once they are on them. These laws are the reason you see signs saying ‘end of motorway regulations’ when you pull into a motorway services area, for example.

We asked the 43 police forces in England and Wales how many motorway-specific traffic offences their officers had issued tickets for between the start of 2016 and May 2021, and received data from 28 forces. Some constabularies weren’t able to furnish us with information because either their systems weren’t set up to allow for this kind of interrogation, or because they have no motorways in the areas that they police.

Nonetheless, our investigation is the most comprehensive of its kind, and paints a clear picture of the sorts of driver behaviour police deal with on motorways on a daily basis.

What we found

There are a number of motorway-specific offences covered by the 1982 regulations, and police make regular use of them.

The most common offence is making an unnecessary stop on a hard shoulder or emergency refuge area; officers issued 6,821 tickets for this between 2016 and mid 2021. Next, 2,645 fines were issued to those driving on hard shoulders or refuge areas, while 837 people were caught driving or stopping on verges or central reservations.

Some forces, including Essex and Avon and Somerset told us of thousands of ‘Red X’ offences committed by drivers travelling in closed motorway lanes, something for which tickets started to be issued in 2019 to reflect how smart motorways work. We’ve included these figures in our totals, although not all forces shared this data, so direct comparisons cannot be made between individual years.

Less common infractions were arguably more worrying than more prevalent ones. A total of 165 people were caught driving the wrong way on a motorway from 2016 to 2021, while 204 received tickets for driving the wrong way on slip roads, and 82 were ticketed for making U-turns on motorways.

And while learner drivers have been allowed on motorways with an approved driving instructor in a dual-control car since 2018, 514 learners were ticketed for either breaching these rules, or because they were on a motorway prior to 2018.

It’s not just people in vehicles police have to worry about, either: 469 pedestrians were caught on motorways, and three penalties were issued by one force to drivers not controlling animals in cars on motorways.

Most of these offences result in three penalty points and a £100 fine, but illegal stops on hard shoulders and refuge areas carry a non-endorsable, £30 penalty. Despite these numbers, and the fact police can only spot a proportion of offences, the UK’s 2,300 miles of motorway are statistically the safest stretches of road in the country.  By Graham Hill thanks to Auto Express

Motor Industry Woes Increase As Raw Materials Are Added To Microchip Shortages List.

Wednesday, 8. September 2021

The ongoing chip shortage and a shortage in raw materials, including steel, could further affect the supply and price of new vehicles entering the market, new research from Cox Automotive and Grant Thornton suggests.

Just last week, Jaguar Land Rover (JLR) warned leasing companies that lead times for 53 model variants are now in excess of one year.

Facing the same supply issues, Mercedes-Benz has removed specification features from certain models “from late June production and until further notice,” in order to limit delivery time delays.

It followed Toyota announcing a 40% cut in worldwide production in September. It had planned to produce almost 900,000 cars next month but has now said that will be reduced to 540,000 units.

Every car- and van-maker is being impacted by the computer chip crisis. Almost 95% of fleets responding to a Fleet News poll said they were experiencing vehicle delays.

Owen Edwards, associate director at Grant Thornton UK, said: “There is increasing evidence of supply chain issues, shortages of raw materials and high raw material prices, which could affect the price and supply of new vehicles.

“The demand for hot-rolled coil steel used in the automotive industry for chassis has increased significantly in 2021.”

Fleet decision-makers were warned at the start of the month by vehicle software company VNC Automotive that the global semiconductor shortage will have a greater impact on the automotive industry than the pandemic.

However, Edwards says that carmakers have reasons to be optimistic about the short-term outlook. “They are resistant to disruption and adversity, and demand for vehicles is still robust,” he said. “This can be attributed to the way vehicles are sold, through structured finance products.”

He added: “We’ve enjoyed a prolonged period of low-interest rates, making borrowing affordable. Demand is expected to continue this year, but clearly questions remain around the short supply of vehicles.”

With vehicle shortages, profit margins for both the new and used car markets are expected to remain high.

Pandemic impacts carmakers

The joint report from Cox Automotive and Grant Thornton reveals the extent of manufacture-related disruption within the automotive retail market throughout the pandemic.

It shows significant losses affecting all major manufacturers in the early stages of Covid-19, since March 2020, with Chinese manufacturers suffering the earliest hit due to plant closures, closely followed by the rest of Europe.

However, the report also reveals that major manufacturers such as Tesla, General Motors, Kia and Toyota still managed to make a profit in Q2 of 2020 and rebounded quickly to growth halfway through the pandemic.

Edwards, the report’s author, explained: “Tesla continued to make profits, delaying the closure of production in its Fremont plant in the US, for as long as possible and reopening production as quickly as possible when it could. Where and when possible, some production was diverted to China.

“However, the normalised numbers need to be reviewed carefully as Tesla continued to benefit from both the strong rebound in the market and from other OEMs purchasing Regulatory Credits (also known as environmental credits).

“Therefore, removing the income from Regulatory Credits to leave only income generated from the production of vehicles meant that the business was in loss throughout Q1 and Q2 2020.

“Vehicles produced nevertheless continued to increase, and it was not until Q3 that Tesla’s normalised EBIT ex Regulatory Credits started to make profits.”

The report also shows that OEMs responded quickly to the change in the market by making cost reductions. For example, despite having made losses in Q2 2020 of US$6.1bn, Ford’s performance improved in Q3 with a solid rebound to US$2.8bn profit caused by its focus on high-value vehicles such as SUVs and pickup trucks, which enjoyed a substantial increase in demand after the pandemic’s initial impact. Furthermore, Ford’s cost reduction plan, which started in 2017/18, realised value.

Stellantis also experienced a strong rebound from a US$0.96bn loss to US$2.2bn profits in Q3 2020. In addition, Stellantis benefited from continued cost reductions from its recent acquisitions of Opel/Vauxhall and FCA.

However, Nissan Motor Company was heavily affected by the lack of production in Q1 and Q2 2020, making significant losses of US$94bn and US$153bn, respectively.

Nissan was already struggling in the US market before the pandemic, and this was compounded by the drop in production over Q1 and Q2 2020.

Nevertheless, the cost reductions meant that the business generated less severe losses than investors had expected. Further cost-cutting took place over the period, and vehicle volumes returned; by Q3 2020, Nissan was making a profit.

Honda and Mazda both followed a similar trend, with Honda becoming profitable in Q3 2020 and Mazda following in Q4 2020.

As 2020 ended and Q1 2021 began, most of the OEMs were generating profits, with the exception of Nissan.

Philip Nothard, insight and strategy director for Cox Automotive, said: “What these findings demonstrate is that the new vehicle market is not all doom and gloom, and manufacturers have done extraordinarily well to bounce back their fortunes with some using highly creative methods.

“While there is no doubt that current well-publicised material shortages are causing a slowdown in the new vehicle market and impacting on used supply and demand, manufacturers have demonstrated that they can be agile and adaptable enough to ride these situations out, which offers some hope for future recovery.”  By Graham Hill thanks to Fleet News.

New Funding For Battery Development To Equal The Range Of Petrol And Diesel

Wednesday, 8. September 2021

Four projects have received a share of £91 million to develop low carbon automotive technology, including a new, long-distance electric vehicle (EV) battery.

BMW will receive £26.2m to help develop electric car batteries with a range similar to internal combustion engines and which can charge in as little as 12 minutes.

Andreas Loehrke, head of research and design for BMW Motorsport UK, said: “This is a really exciting opportunity to collaborate with world leading companies to develop high tech battery technology.

“It strengthens our UK partner base and safeguards and extends our research and design centre.”

The four projects have been awarded funding through the Advanced Propulsion Centre (APC) Collaborative Research and Development competition, which supports the development of innovative low carbon automotive technology.

Together, the APC say they could save almost 32 million tonnes of carbon emissions, equivalent to the lifetime emissions of 1.3 million cars, and secure more than 2,700 jobs across the country.

It is also hoped that the innovations will address motorists’ concerns about adopting EVs by cutting charge times and boosting driving range.

Alongside the BMW project, £9.7m of joint industry and Government funding from the APC will go to a project led by Sprint Power in Birmingham to create ultra-fast charging batteries for electric and fuel cell hybrid vehicles that can charge in as little as 12 minutes.

Founder and CEO of Sprint Power, Richie Frost, said: “As we move steadily towards the UK’s ban on new petrol and diesel combustion engine vehicles in 2030, tackling consumers’ concerns on EVs head on is critical.

“We are delighted to be leading this pioneering project that will create a step change in battery charge times, helping to create highly efficient fuel cell vehicles for the future and accelerating the charging time on battery electric vehicles significantly closer to refuelling times on today’s internal combustion engine cars.”

The lion’s share of the funding, £41.2m, will be go to a project led by REE at their Engineering Centre of Excellence at the MIRA technology park in Nuneaton to develop and manufacture their REEcorner technology.

It packs critical vehicle components (including steering, braking, suspension, powertrain and control) into a single compact module located between the chassis and the wheel, enabling fully-flat EV platforms to meet the growing needs for efficient commercial electric vehicles.

The remaining £14.6m will fund a project led by Cummins to develop a novel zero carbon, hydrogen-fuelled engine in Darlington, to help decarbonise heavy-duty commercial transport.

APC CEO, Ian Constance, said: “These projects tackle some really important challenges in the journey to net-zero road transport.

“They address range anxiety and cost, which can be a barrier to people making the switch to electric vehicles and they also provide potential solutions to the challenge of how we decarbonise public transport and the movement of goods.

“By investing in this innovation, we’re taking these technologies closer to the point where they are commercially viable, which will strengthen the UK’s automotive supply chain, safeguard or create jobs and reduce harmful greenhouse emissions.”

The APC collaborates with UK Government, the automotive industry and academia to accelerate the industrialisation of technologies, supporting the transition to deliver net-zero emission vehicles.

Since its foundation in 2013, APC has funded 170 low-carbon projects involving 402 partners, working with companies of all sizes, and has helped to create or safeguard nearly 50,000 jobs in the UK.

The technologies developed in these projects are projected to save over 288 million tonnes of CO2, the equivalent of removing the lifetime tailpipe emissions from 12 million cars.  By Graham Hill thanks to Fleet News

Safety Body Calls For Lower Drink Driving Limits Following Latest Government Figures

Wednesday, 8. September 2021

Official figures reveal 230 people were killed in drink-driving accidents in 2019, with a further 1,820 seriously injured.

Drink-driving deaths in Great Britain have plateaued for the ninth consecutive year, prompting calls for a lower drink-drive limit, the use of alcolocks and a wider implementation of rehabilitation courses for offenders.

A total of 230 people were killed in road traffic accidents in 2019 (the most recent year for which data is available) where one or more drivers involved were under the influence of alcohol.

Since 2010, when 240 people were killed, the figure has barely varied – the lowest death toll in that nine-year period is 230 and the highest has been 250.

According to newly released Government figures, a further 1,820 people were seriously injured in drink-driving accidents in 2019 – another figure that has shown no sign of improving, actually increasing 9.64 per cent on 2018’s figure of 1,660. The total number of collisions in 2019 where at least one driver involved was over the drink-drive limit was 5,350 – an average of 14 per day.

Road safety organisation IAM Roadsmart has responded to the figures by calling for the drink-drive limit in England and Wales to be lowered to the same level as in Scotland. The organisation also wants to see alcolocks fitted to cars, meaning the ignition can’t be turned on until the driver has provided a breath sample showing they’re fit to drive.

Education campaigns on the subject should be run for longer and at a higher profile, IAM says, with more rehabilitation courses, the provision of evidential roadside breathalysers to the police and the seizure of vehicles belonging to repeat drink-drive offenders.

“Hardcore drink-drivers are simply not getting the message and these figures will not improve until policy changes,” said Neil Greig, director of policy and research at IAM RoadSmart.

Hunter Abbott, managing director of personal breathalyser firm AlcoSense, added: “The fact that testing is at its lowest level on record should be ringing alarm bells. Police carried out just 285,380 roadside breath tests in England and Wales in 2019 – less than half the number in 2008.”

The drink-drive limit in England and Wales is currently 80 milligrammes (mg) of alcohol per 100 millilitres of blood, or to 35 micrograms (mcg) per 100 millilitres of breath. Scotland has tougher limits of 22 mcg of alcohol in 100 ml of breath or 50 mg in 100ml of blood.  By Graham Hill thanks to Auto Express

Thatcham Helps Insurers To Understand New Technology When Assessing Risk

Thursday, 2. September 2021

A new collaboration between Verisk and Thatcham Research aims to help UK insurers identify new advanced driver assistance systems (ADAS).

Thatcham says that the lack of data regarding the varying features of newer vehicle models can ‘fundamentally’ affect an insurer’s understanding of vehicle risk.

Many insurers struggle to identify features that have become available in more car models and marketed under different product names, it explains.

Verisk, a global data analytics provider, is enhancing its motor insurance products with Thatcham Research’s Variant Code, a dataset that provides updated information on the growing variety of standard and optional features in UK vehicles.

“This is about accurate risk assessment at a uniquely granular level,” explained Dan Payne, chief digital officer at Thatcham Research.

“Variant Code offers a competitive advantage, empowering Verisk’s insurer customers to make more informed and intelligent decisions, and price according to the features present on a particular model variant.

“This is fundamental as vehicles evolve and technologies that were once the preserve of high-end models are increasingly made available at entry level.”

Verisk is also benefitting from the aggregated view of data that Variant Code provides, says Sean Moriarty, operations manager at Verisk.

“Carmakers have their own naming conventions for vehicle features, which can be problematic,” he said. “However Variant Code provides this information using a consistent nomenclature, ensuring the quick and easy identification of these features.”

Features such as advanced driver assistance systems (ADAS), expensive headlights, and keyless and connectivity systems, are ‘accurately’ captured, says Thatcham, addressing what has been a frustration for the insurance industry.

Moriarty said: “Variant Code addresses a long-standing challenge to the accurate underwriting of new vehicle models, benefitting both insurers and insureds.

“Until now, there has been a lack of clarity regarding the fitment of certain features across vehicle variants and their potential positive or negative impact on risk.

“ADAS have been a particular issue – with little information available to insurers on the presence of technology that can reduce accident risk.”

Variant Code enhances the vehicle risk data Thatcham Research has delivered for the past 20 years on behalf of its members and the Association of British Insurers (ABI)

It contains data for more than 50,000 vehicle variants, provides data on key systems such as ADAS, lighting, security and connectivity and covers 98% of the car parc released in the UK since 2015.  By Graham Hill thanks to Fleet News

Microchip Shortage Will Have A Major Effect On Car Production Till 2022

Thursday, 2. September 2021

Fleets face delays of more than a year for company car orders as well as changes to original specifications as vehicle manufacturers grapple with the shortage of key components, including semi-conductors.

Jaguar Land Rover (JLR) has warned leasing companies that lead times for 53 model variants are now in excess of one year.

The cars affected include versions of the 2022 model year Jaguar E-Pace, Land Rover Discovery, Land Rover Discovery Sport, Range Rover Evoque, and Land Rover Defender.

“Although these can remain open for quoting and ordering on your systems if you choose, your supplying Retailer will not be in a position to accept orders for these derivatives due to extended lead times,” said the briefing note from JLR.

However, the manufacturer added that a large number of models are still available for order, including the Jaguar I-Pace and F-Type, as well as alternative derivatives of the delayed cars, including plug-in hybrid versions of the E-Pace, Discovery Sport, Evoque and Defender 110.

In an official statement, JLR said, “Like other automotive manufacturers, we are currently experiencing some Covid-19 supply chain disruption, including the global availability of semi-conductors, which is having an impact on our production schedules. We continue to see strong customer demand for our range of vehicles.

“We are working closely with affected suppliers to resolve the issues and minimise the impact on customer orders wherever possible.”

Fleet customers, said JLR, should address any questions to their local retailer.

Mercedes-Benz specifications removed

Facing the same supply issues, Mercedes-Benz has removed specification features from certain models “from late June production and until further notice,” in order to limit delivery time delays.

The wireless charging of mobile phones, hands-free access to the boot (by kicking under the rear bumper), multibeam LED headlights and certain audio systems are among the features to disappear from the standard specification of certain cars, with AMG-line derivatives particularly affected.

Read how a shortage of raw materials ‘threatens price and supply’ of new vehicles

A statement from Mercedes-Benz said that all customer groups are affected by the current delays.

“Regardless of the model, we take into account how long a customer has been waiting for their vehicle and try to prioritise accordingly,” it said.

“Nevertheless, handovers to customers are strongly dependent on the individual equipment and the short-term availability of parts.”

Customers can check the specification of their car can do so via the Mercedes-Benz Online Showroom (shop.mercedes-benz.co.uk), or by speaking to their retailer.

As a leading global manufacturer, Mercedes-Benz AG expects that the worldwide shortage of supply of semiconductor components will continue to affect its business in the second half of this year.

In its latest editorial, Cap HPI said component shortages of semiconductors, steel, rubber and even foam were affecting different manufacturers’ production to varying degrees.

“Manufacturers are prioritising registrations in their most profitable channels, namely retail, meaning less short-cycle rental, company cars and demonstrators are being registered,” it said.

“They are also diverting build slots to the most profitable models due to component supply issues and removing some items from cars, allowing fewer semi-conductors to be required.”

The impact to JLR and Mercedes-Benz from the semiconductor shortage comes as Toyota announced a 40% cut in worldwide production in September.

It had planned to produce almost 900,000 cars next month but has now said that will be reduced to 540,000 units.

Every car- and van-maker is being impacted by the computer chip crisis, with some delivery times for vehicles. Almost 95% of fleets responding to a Fleet News poll said they were experiencing vehicle delays.

Fleet decision-makers were warned at the start of the month that the global semiconductor shortage will have a greater impact on the automotive industry than the pandemic.  By Graham Hill thanks to Fleet News

Potentially Faulty Systems Could Be Putting Drivers’ Lives At Risk.

Thursday, 2. September 2021

Four-in-five drivers mistakenly expect to be warned by their vehicle when advanced driver-assistance systems (ADAS) are faulty, research from Autoglass suggests.

Despite a clear majority (72%) of drivers understanding that ADAS can help to reduce accidents, the research warns that millions of drivers could be relying on their dashboard to tell them when something is wrong.

However, ADAS technologies currently do not have the capability to alert the driver if they have not been correctly recalibrated or recalibrated at all, for example following a windscreen replacement, or if a minor accident has caused them to be knocked out of alignment, says Autoglass.

Chris Abbotson, national sales manager at Autoglass, explained: “Advanced driver-assistance systems are dramatically improving road safety, but they can only do so if the sensors are properly recalibrated by a skilled technician.

“It’s incredibly dangerous for a driver to be in charge of a vehicle if the onboard sensors are either not recalibrated or not recalibrated correctly, as they would likely be relying on safety systems that are unable to accurately identify hazards on the road.”

ADAS technologies, which include safety features such as blind spot warning, parking sensors and lane keep assists, are found on more and more fleet vehicles in the UK and are increasingly relied upon for the safety of drivers and other road users.

ADAS sensors need to be recalibrated correctly after a windscreen replacement to ensure they are functioning as the manufacturer intended them to. As it stands, only half (48%) of UK drivers realise this is the case.

Autoglass says it is important that fleet managers check that the ADAS sensors on the vehicles in their fleet are recalibrated after any windscreen replacement and that they are recalibrated correctly to minimise the risk of accidents.

Overall awareness of ADAS features amongst drivers also remains concerningly low, with only 33% having heard of advanced emergency brake systems, and only 21% aware that vehicles can automatically recognise traffic signs.

The research highlights that more must be done to educate drivers about managing the systems to ensure these advanced safety systems function correctly, says Autoglass.

“When choosing partners for any windscreen work, fleet managers need to ensure they are working with the best technicians who have received the latest training to ensure they are capable of correct ADAS recalibration and are aware of the latest technologies in vehicles,” said Abbotson.

“All technicians at Autoglass complete the IMI accredited ADAS training to ensure they can replace windscreens and recalibrate the ADAS sensors in one appointment, minimising downtime for vehicles and reducing the risk for drivers.”  By Graham Hill thanks to Fleet News

All New Cars To Be Fitted With Speed Limiters In 2022

Thursday, 2. September 2021

If you are ordering a new car next year, you and fleet decision-makers are being urged to prepare drivers now for vehicles being fitted with intelligent speed assistance (ISA) technology from next year, says FleetCheck.

The European Commission has provisionally agreed that all new vehicles sold in Europe will be fitted with a speed limiter as a legal requirement from July 2022.

The regulation also mandates all new cars that have already launched be fitted with ISA technology by July 2024.

The UK is likely to follow the new road safety regulations, despite leaving the EU, as it has retained most EU laws for new cars.

Peter Golding, managing director at the fleet management software specialist, says the move should be seen as significant opportunity to enforce a safety message on speed.

“Thankfully, macho attitudes towards speeding that were once quite common among drivers of company vehicles have reduced considerably in recent years,” said Golding. “However, speeding tickets are still pretty common, as any fleet manager will tell you.

“Our view is that the introduction of ISA technology is a moment that employers should be seizing as an opportunity to make clear that there is no corporate leeway when it comes to speeding and the dangers it represents.”

The speed limiter technology uses GPS data and/or traffic-sign-recognition cameras to determine the maximum speed allowed in an area.

It then limits the engine’s power and the vehicle’s speed to that limit, but it is possible to override the system by pressing hard on the accelerator.

Golding says that, with the first ISA cars, vans and trucks now less than a year away, this is a good moment to adopt a “zero tolerance approach” to excessive speed.

“With the long lead times currently being experienced by fleet operators, vehicles being ordered within the next few months will potentially arrive with ISA fitment, so this is very close to being a live fleet issue,” he continued.

“Our view is that this should be presented to drivers as a genuine benefit. Firstly, these are safer vehicles – reduced speed means fewer accident and fewer serious accidents. Secondly, it will potentially remove the chance of you picking up a speeding ticket.”

Research undertaken by the EU shows that drivers like ISA-equipped cars because, in everyday driving, sticking to the speed limit becomes one less thing to worry about. “We are sure that this will soon become the case among drivers of company vehicles,” said Golding.  By Graham Hill thanks to Fleet News

Will The Effect Of COVID On Business Travel Be Permanent?

Thursday, 2. September 2021

The vast of majority of businesses (93%) replaced domestic business trips with virtual meetings during the pandemic, according to new research from the Department for Transport (DfT).

The survey, conducted by Ipsos Mori, reveals that almost half (44%) of firms had replaced all trips, 41% half or more and 8% less than half. Just one in 14 – 7% of businesses replaced none.

Business types most likely to have replaced any of their business trips with virtual meetings included large businesses (98%), medium sized businesses (97%) and businesses in London (84%).

Essential services businesses were most likely to say they had replaced all business trips with virtual meetings (55%).

Manufacturing and construction businesses were most likely to say they had not replaced any business trips with virtual meetings (16%).

AN ‘ADEQUATE’ REPLACEMENT

Half of businesses (50%) considered fully virtual meetings to be an adequate replacement for business trips; more than one-in-four (28%), however, did not.

A slightly higher proportion (57%) agreed that meetings with a combination of virtual and face-to-face attendees were an adequate substitute for business trips. One-in-five (20%) disagreed.

Large businesses (58%) were significantly more likely to agree that meetings with only virtual attendees are an adequate replacement for face-to-face meetings, those in Wales/Scotland/Northern Ireland were significantly more likely to disagree (43%).

Large businesses (67%) and companies in the North (68%) were significantly more likely to agree that a mix of virtual and face-to-face attendees were an adequate replacement for face-to-face meetings – companies in the South (excluding London) were significantly less likely to agree (46%).

TRAVELLING FOR BUSINESS

The DfT survey suggests that proportion of employees travelling on business is expected to stay broadly the same post pandemic.

Companies expect an average of 38% of employees to be travelling for business, compared with 40% before the pandemic. Just 1% of the firms surveyed by Ipsos Mori said no employees will travel for face-to-face meetings.

The DfT data, however, suggests that the frequency of face-to-face meetings is expected to fall as virtual meetings will remain in the mix.

Two-fifths (41%) of companies said that they expect to make fewer business trips than before the pandemic (27% somewhat less, 14% far less) and more than a quarter (27%) expect to make more business trips (19% somewhat more, 8% far more).

Almost a third (30%) said they expected to make the same level of business trips.

Assuming restrictions are no longer in place, companies expect to be using a similar mix of main modes as before the pandemic, with a return to long-distance rail and domestic air travel, and a reduction in the proportion of car journeys compared to levels during the pandemic.

Companies said that they expect an average of 33% of trips to use car as their main mode of transport, compared with 29% pre-pandemic.

Meanwhile, 13% would choose to use long-distance rail as their main mode versus 15% pre-pandemic, and 11% would use domestic airlines compared with 14% before Covid-19 struck.

In terms of other modes, companies expect an average of 10% of trips to use local trains as the main mode versus 14% pre-pandemic and 11% during the pandemic.

The DfT says that 7% will use local buses, compared with 6% pre-pandemic and 4% during, and 5% will use taxis, which is an increase on the 3% pre-pandemic and 5% during.

Other modes, including cycling and walking will account for 3% of business trips, which is the same as proportion seen pre-pandemic and down from the 5% seen during Covid-19.  By Graham Hill thanks to Fleet News