BVRLA News, June/July 2011

BVRLA News

www.bvrla.co.uk June/July 2011

The newsletter of the British Vehicle Rental and Leasing Association

Funding future brightens: four lenders enter market The supply of funding for vehicle rental and leasing companies is set to improve with news that three new lenders are entering the market.

Clydesdale and Yorkshire Bank, Close Asset Finance and GMAC have all announced that they are entering the B2B vehicle asset finance sector, providing back-to-back funding for both vehicle leasing and short-term rental.

At the same time, Lombard, an existing funder to the industry, is expanding its presence in the sector.

Back in April the BVRLA set up a Funding Steering Group, with representatives from across the vehicle rental and leasing industry, in a bid to improve the availability of competitively-priced funding for the

sector. Members of the group have already met with all of the new funders.

“It is great to see these new lenders enter the market. Their arrival will help improve the supply of funding to those companies looking to fund back-to-back leases or short-term rental fleets,” said BVRLA chief executive John Lewis.

“However, there is still a big demand for new undisclosed agency funding to replace the facility being gradually withdrawn by Lloyds Banking Group.

“Undisclosed agency leasing represents a big proportion of the funding used by independent leasing companies, but some funders are reluctant to develop the product because of the extra administration required.” n

Electric vehicle seminar addresses key questions Around 100 delegates attended last month’s electric vehicle seminar hosted by the BVRLA and the Society of Motor Manufacturers and Traders (SMMT).

BVRLA members heard about the early EV experiences of Hertz and LeasePlan and got to quiz representatives from manufacturers including Renault, Mitsubishi, Ford and Allied Vehicles, as well as the government’s Office for Low Emission Vehicles.

Topics included safety, battering charging, mileage range, residual values, maintenance and government incentives.

Delegates were also given the opportunity to test-drive cars.

The BVRLA is now working with the SMMT to produce a fleet-focused version of its Guide to Electric Cars.

EV questions and answers, page 6

In this issue Red Tape Challenge becomes a fixture The government drive to remove bad regulations is set to become an ongoing process page 2 Industry wants better ‘customer experience’ The BVRLA is helping members to tackle the customer service issues in car rental page 3 Ryder gets heavy with Hill Hire takeover The £151m acquisition of Hill Hire puts Ryder in the driving seat of a huge HGV fleet page 4 European conciliation service takes off The BVRLA is operating a dispute resolution service for the panEuropean rental industry page 5 Carbon emissions: counting the cost Greenhouse gas reporting could have major implications page 7 Obituary: farewell to first BVRLA chairman Ivor Rowe, one of the founders of the BVRLA, dies at the age of 79 page 11

— Promoting responsible road transport since 1967 —

Comment Red Tape Challenge The vehicle rental and leasing industry is not completely selfreliant, it relies on a number of other things running smoothly in order that the wheels don’t come off.

A lack of finance or vehicle information and ill-conceived regulation can all cause major problems, so it is great to be able to talk about some progress in all three areas in this issue.

Whether you are looking for more or cheaper funding, some help setting prices for electric vehicles or just a bit less red tape in your life, things should be about to get better.

Rest assured that the team here at the BVRLA will be working hard to try and ensure that it happens.

Toby Poston Editor Toby Poston, toby@bvrla.co.uk 01494 545700 Production Manager Steven Prizeman, steven@bvrla.co.uk 01494 545710 Advertising Nora Leggett, nora@bvrla.co.uk 01494 545713 © Copyright BVRLA 2011 BVRLA News articles may be used copyright free by members provided that an acknowledgement is given.

BVRLA River Lodge, Badminton Court Amersham Buckinghamshire HP7 0DD T 01494 434747 F 01494 434499 E info@bvrla.co.uk W bvrla.co.uk Honorary Life President Freddie Aldous Chairman Neil Cunningham Vice Chairman Kevin McNally Honorary Treasurer Brian Back Chief Executive John Lewis

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looks set to become permanent fixture

The government’s ‘Red Tape Challenge’ campaign aimed at eliminating or amending bad regulations is set to become more than just a short-term PR stunt.

BVRLA chief executive John Lewis has been asked to continue in his role as a fleet industry ‘sector champion’ and will meet with civil servants in September to prioritise some of the best suggestions identified by the challenge and plan a way forward for the campaign.

“Every government says it is tackling red tape, but we need to make sure that this campaign has legs and doesn’t fizzle out into little more than a PR exercise,” said Lewis, following his first session as a sector champion in June.

“Unfortunately, eliminating red tape is not always as simple as just getting rid of lots of legislation. There is also a huge amount of very necessary regulation that has been updated and amended over time but now requires a major refresh to make it appropriate for today’s world.”

For four weeks in May and June, the government’s Red Tape Challenge website invited people to respond to a list of more than 400 pieces of transport legislation. The BVRLA helped get the ball rolling by listing ten regulations that it felt needed a major rethink. They included: Road Vehicles Regulations 2002 The BVRLA believes that this law should be amended to allow registration documents to be issued electronically, eliminating much of the

paperwork mountain that fleets have to deal with.

The association has estimated that this step alone could save the fleet industry and the Driver, Vehicle and Licensing Agency (DVLA) around £6m a year.

Vehicle Drivers (Certificates of Professional Competence) Regulations 2007 This legislation should be amended to provide exemptions for empty vehicles being driven to their annual test, between operating locations or to a customer site on behalf of a rental or leasing company.

This could save rental and leasing companies up to £5m a year.

Workplace Parking Levy Regulations 2009 This legislation should be scrapped.

It places an unnecessary burden on businesses and their employees with little or no environmental benefit.

“The UK has some compulsive lawmakers who emit far too many regulations, which is why the BVRLA spends so much of its time lobbying for common-sense legislation,” said Lewis.

“This challenge gives people and businesses on the front line an opportunity to fight back against this tide of road transport red tape. It’s early days, but there are already signs that the government is willing to give good ideas serious consideration.

For example, we understand that a working group is now looking at the viability of getting rid of the need to display a tax disc – as suggested by the BVRLA.” n BVRLA News | June/July 2011

Rental seeks better ‘customer experience’ The BVRLA has met with representatives from European consumer groups and the credit card industry to tackle some of the customer service issues facing the car rental sector.

In May, a London-based workshop was held so that rental companies could explain how they were trying to make life easier for customers, particularly for cross-border rentals.

Representatives from Which?, the European Consumer Centre, the European Commission, the Office of Fair Trading, Elavon and Barclaycard heard how the BVRLA was running a conciliation service for the panEuropean rental industry.

Delegates were also told about Leaseurope’s plans to publish a consumer guide to car rental and an

easy-to-read summary of key terms and conditions.

waivers and damage charges more transparent.

The event was organised as a followup to the EU Consumer Summit held in 2010, where the Commission laid down a number of customer service challenges to the industry.

“Car rental is definitely on the European Commission’s ‘watch-list’ so this meeting was a great opportunity to show some key consumer stakeholders that our industry really does take the issue of customer service seriously”, said BVRLA chief executive John Lewis.

During the workshop all parties discussed the possibilities of collating basic figures for customer complaints so as to get a more accurate picture of the number of dissatisfied renters.

The group also agreed that more work needed to be done to improve the quality of pre-contract information that consumers were given. As most customers do not read terms and conditions, car rental operators should work harder at eliminating industry jargon and make the costs of

“But it is actions and not words that will be measured at the end of the day and the whole industry must do more to improve the customer experience.”

The car rental industry representatives at the meeting were; Neil Cunningham, general manager Hertz UK and BVRLA chairman; Alison Chadwick, director of regional operations at Thrifty Car Rental; and David Alexander, operations director at Europcar UK. n

Age ‘equality’ plan would cost Renault EV has vehicle rental sector £34m a year a leased battery Banning all forms of age discrimination in the vehicle rental industry could cost the sector more than £34m a year and add up to 30% to the price of hiring a car or van, according to BVRLA figures.

The association wants the industry to be exempted from the government’s proposed age discrimination legislation because it believes that regulation is not required in the rental sector and would introduce a huge administrative and cost burden on its members.

Statistics show that young and inexperienced drivers, particularly males, are much more likely to have accidents than other categories of driver, making it more costly to insure them. Despite serious safety concerns about these drivers gaining access to a range of high-powered cars, vans and minibuses, a significant number of rental companies do already rent to people under 21.

The government has agreed that it is justifiable to charge higher prices, BVRLA News | June/July 2011

deposits and excesses to people in this age group. However, the new legislation would present rental companies with the ongoing burden of having to provide statistics to justify these charges, which could be challenged in court.

The BVRLA feels that the industry would also face extra administrative costs involved with insurance claims and vehicle repairs, which would end up increasing the price of vehicle rental for all customers.

“Older and younger drivers are already able to hire vehicles and the government accepts that some younger or less experienced customers should be charged more,” said BVRLA chief executive John Lewis. “But our industry is still being threatened by this new tranche of pointless EU-driven red tape, something the current government has sworn to eliminate. Costs for our vehicle rental companies and their customers will rise and no one will benefit – where is the logic in that?” n

Renault has announced that its new Fluence ZE electric saloon car will retail at £17,850 when it goes on sale next year, undercutting its main electric vehicle (EV) rivals by more than £5,000.

The price, which includes the government’s £5,000 Plug-In Car Grant, is considerably cheaper than other electric cars, like the Nissan Leaf (£25,990) and Mitsubishi i-Miev (£23,990), because Renault excludes the cost of the battery, which is leased separately.

The battery lease will cost from £75 a month, based on a three-year, 6,000-miles-a-year contract. Despite complaints from leasing companies that they need to be able to purchase the vehicle and battery together, Renault says that leasing the battery is the only funding option.

The five-seat Fluence will come with 16-inch alloys, climate and cruise control, sat-nav and an approximate range of 115 miles. n 3

Ryder gets heavy with Hill Hire takeover June was a busy month for Ryder, with the company announcing a £22m order for new vehicles and the £151m acquisition of Hill Hire.

The Hill Hire purchase sees Ryder take on 13 UK depots, 300 staff and 4,000 HGVs, significantly increasing its capacity for tractor unit and trailer rental and leasing.

“The opportunity to purchase Hill Hire came at the right time and enabled us to accelerate our positioning at the heavy end of the market,” said Robin White, marketing and corporate development director for Ryder Europe. “Ryder has a largely rigid fleet, while Hill Hire is better known for its tractor units and trailers. Also,

Hill Hire has lots of customers in the transport and logistics sector, which complements our growth plans. In terms of asset class and market penetration – it is a natural fit.”

Ryder’s £22m refresh of its rental fleet sees it buying 148 tractor units, 98 light commercial vehicles and 318 box vans and curtainsiders at 7.5, 12, 18 and 26 tonnes.

Both Ryder and Hill Hire have strong brands and reputations so the integration of the two companies will be carefully evaluated, with no set time-frame, added White. However, the Hill Hire portion of the business will eventually be rebranded as Ryder.

The company is adding 12 and 26 tonne curtainsiders with tail-lifts to its fleet for the first time to meet the needs of customers demanding bigger payloads. n

Hill Hire’s depot network includes sites that previously operated as designated premises for annual vehicle testing. Ryder is exploring the idea of developing some of these as Authorised Testing Facilities (ATFs).

Ryder Fleet 3,000 light commercial vehicles 3,000 tractor units 6,000 7.5 - 26 tonne rigids Rental 33% : Leasing 67%

Government seeks road haulage advice The BVRLA has been asked to participate in a new Road Haulage Forum that will help advise the government on policy matters.

Ryder: £151m purchase of Hill Hire “helps positioning at the heavy end of the market”

CV Committee and VOSA work on e-access to HGV test data The BVRLA has been working closely with the Vehicle and Operator Services Agency over the past few months to advance electronic access to HGV annual test data.

At a workshop on 29 June hosted by DAF Trucks, VOSA explained which data fields BVRLA members would need to use to access test results electronically. It is hoped that a pilot of the service will be up and running in the next few months. Access to the data will enable members to manage 4

their third-party maintenance providers more closely.

The BVRLA’s Commercial Vehicle Committee has also been in discussion with the association’s inspection provider, CARSQA, about changes that might be required to ensure that its inspection programme meets VOSA’s standards. VOSA recently announced the possibility of accreditation for such programmes.

The BVRLA’s new inspection programme will be in place shortly. n

BVRLA chief executive John Lewis will be joined by representatives from the Road Haulage Association, the Freight Transport Association, the United Road Transport Union, Unite and Skills for Logistics.

They will meet every six months to advise senior civil servants from the Treasury and the departments for Transport and Business, Innovation and Skills on such topics as:

❱ operational issues, including supply

chain resilience and management. ❱ policy – input into development of road-specific policy areas, including lorry parking and HGV charging, ensuring that appropriate practical, economic and commercial issues have been considered. ❱ taxation. ❱ supporting the challenge to inappropriate legislation/red tape. ❱ safety and the environment. ❱ driver welfare. n BVRLA News | June/July 2011

European conciliation service takes off The BVRLA is operating a European dispute resolution service on behalf of the pan-European rental industry.

Launched last Autumn, the European Car Rental Conciliation Service (ECRCS) is currently being piloted by the big four European cross-border rental companies: Avis, Europcar, Hertz and Sixt.

The service is open to anybody with an unresolved dispute involving a crossborder rental in Europe.

So far in 2011 the ECRCS has been asked to investigate 38 complaints.

Of the 33 disputes so far resolved, 84% were decided in favour of the rental company involved.

The largest percentage of complaints concerned additional charges, such as insurances, one-way fees and special equipment. In all cases where the

ECRCS found in favour of the rental company, it was because the company provided documentary evidence showing that the additional charges were clearly stated on the rental agreement and were signed for by the customer.

Although some problems are caused by language differences, the ECRCS believes many could be avoided if rental staff took time to ensure that customers understand the rental agreement and provided them with documents in their own language. n

Nature of Complaint Charges 50% Damage 41% Condition of Vehicle 6% Service 3% Complaints by country of rental Germany 25% Italy 16% France 16% Complaints by customer residence UK 50% Spain 44% France 3%

An example complaint A Spanish complainant contacted the ECRCS following a rental in Malta, disputing charges for parking fines.

The ECRCS approached the rental company for evidence that the complainant was responsible for the fines and was shown a copy of the rental agreement showing the registration number of the vehicle and date of the rental, and copies of the parking fines.

The ECRCS found in favour of the rental company.

End-of-contract disputes show marked rise on 2010 The number of complaints passed to the BVRLA Conciliation Service in the first half of 2011 has jumped by a third compared to the same period of 2010.

To date in 2011, the BVRLA has received 197 complaints, 93 of them involving rental companies and 101 involving leasing or leasing broker members.

The top three areas of complaint against rental companies were damage, charges and service. In the leasing sector, most complaints revolve around disputed charges, in particular charges for damage that customers believe is reasonable given the age and mileage of the vehicle involved.

In all cases, the BVRLA reviewed the evidence, which includes examining members’ processes and photographic evidence. In 41% of leasing cases the conciliation service found that the damage was outside the fair wear and tear standard and that the charge was therefore valid.

BVRLA News | June/July 2011

The BVRLA believes many disputes could be avoided if customers were made more aware of fair wear and tear standards before the end of their contract. The association’s guide The Industry Fair Wear and Tear Standard, for contract hired and other forms of leased vehicles, is available in an online electronic format to corporate

and leasing broker members under annual licence. Licensees can embed a branded copy of the guide in their website, allowing clients easy access for reference. n Contact Steph Czaplinska, steph@bvrla.co.uk 01494 545702

Conciliation service complaints

By sector of membership (Jan-June 2011)

Rental

Leasing

Leasing Broker

Total

2010

53

91

3

147

2011

93

101

3

197

Conciliation service outcomes

Showing percentage of results in favour of member and complainant (Jan-June 2011)

Rental

Leasing

Member

46%

41%

Complainant

50%

44%

Neither/Both

4%

15% 5

Electric vehicle questions and answers BATTERIES/CHARGING What is the value of the battery?

The notional value of an electric car battery is around £10,000. This is priced per kilowatt hour (kWh).

Currently the price per kWh is around $600, so for a typical 25kWh battery you would pay approximately $15,000.

Forecasts suggest the cost will fall to around $250-$300 per kWh over the next 10 years, so battery costs may halve in this time.

Will battery technology develop too quickly to establish strong residual values?

Developments in battery technology will be incremental, with no radical progress expected in the next twoto-three years. Battery developments will be aided by other progress, including light weighting, which will improve the range of electric vehicles (EVs). Vehicle manufacturers will continue to have a model cycle, but any vehicles that include advanced technology are also likely to be more expensive.

What is the rate of battery degradation?

A battery’s ‘end of life’ is typically thought to occur when it reaches 80% of its original capacity (ie when a battery with a 100-mile range offers an 80-mile range). It will take approximately 10 years for the battery to reach 80% capacity, depending on how the battery is used.

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How does battery charging work?

Each battery is made up of one or more strings of cells in series – a little like Christmas tree lights. The cells in a battery can have slightly different capacities, meaning that they charge and discharge at slightly different rates.

Cell balancing is required to make sure the cells work together and maximise the energy in the battery.

Without it charging would have to stop as soon as one cell was full, to avoid damage to that cell. This could leave other cells less than full and limit the energy storage capacity of the battery. Similarly, the battery would be considered flat when the weakest cell became empty. Basically, an unbalanced pack doesn’t use all the available capacity and discharging doesn’t use all the available energy.

Cell balancing evens up the voltages of individual cells, usually by leaking away a small amount of charge from fuller cells to bring their voltages down to the level of weaker cells.

Does rapid charging affect battery life?

Rapid charging will charge the average pure electric car in around 30 minutes, compared to the six to eight hours it takes via standard charging. But because it forces current into a battery more quickly, rapid charging creates extra heat and puts more wear and tear on the battery.

One of the main issues with rapid charging is how the manufacturer

manages battery temperature, because faster charging requires more cooling. Cooling adds size, weight and cost to battery packs.

For these reasons vehicle manufacturers adopt different positions with regard to battery charging: some say that rapid charging can be used with no effect on their battery, while others allow a limited amount of rapid charging or none at all. Manufacturers will be able to advise on how or whether rapid charging is restricted under their warranty terms.

Can we get official range forecasts for different usage patterns?

No. Battery range depends heavily on driver behaviour. Topography, payload and usage of auxiliary systems –including heaters – mean it is extremely difficult to predict range.

The key is to qualify the customer before the sale to match their journey requirements with the right vehicle.

MAINTENANCE/RECOVERY How prepared are dealer networks for EV technology?

In many cases, the whole dealer network is trained to service EVs. Every vehicle manufacturer is bound

by European regulation to offer training and the uptake rate on these schemes is extremely fast. Over 2,000 technicians have completed the Automotive Technician Scheme for electric vehicles.

BVRLA News | June/July 2011

Carbon emissions: who’s counting the cost?

The government recently launched a consultation on whether and how it should introduce mandatory greenhouse gas reporting for companies.

It has set out a number of options for which firms could be affected and what the scope of emission reporting could be: Which firms could be affected?

Option 1 Voluntary reporting for any company.

Option 2 All publicly quoted companies.

Can my vehicle be recovered if I get a flat battery?

Yes, recovery services will be trained to deal with this eventuality and can also tow an EV to the nearest charging point. If the 12V battery goes flat (eg because the lights are left on), normal jump leads can be used.

GOVERNMENT POLICY What is the future for the £5,000 Plug-In Car Grant?

The government is committed to supporting the low-carbon vehicle market for the life of the parliament.

The Plug-In Car Grant will be reviewed by March 2012 to ensure that government support is in line with the needs of the market.

The BVRLA and SMMT will be asked for their views on the subject, which has already raised the possibility of the scheme being expanded to include vans.

Will the government have to tax the electricity?

The Office for Low Emission Vehicles is unaware of any plans to increase the tax on electricity. Motoring taxes are a much wider issue than just EVs. In the next 10 to 20 years, the tax take from conventional cars is likely to decrease due to improvements in fuel efficiency.

EVs will remain a small part of fleet for many years to come and so are unlikely to be the focus of a tax review any time soon.

BVRLA News | June/July 2011

Option 3 All large companies as defined by the Companies Act (‘a company that makes a profit of £1.5m or more during an accounting period’).

Option 4 All companies whose UK electricity is of an agreed minimum consumption, eg 6,000 MWh or more.

Scope – what should be reported?

Scope 1 – Direct emissions Assets or activities owned or controlled by an organisation that release emissions straight into the atmosphere. This would include vehicles owned or controlled by a leasing or rental company.

Scope 2 – Indirect emissions from energy This could include the purchase of road fuel or electricity for EVs by companies that do not own or control their vehicles. This would include grey fleet as well as rented and leased vehicles.

Scope 3 – Other indirect emissions This would include emissions which are a consequence of the organisation’s actions. Examples of these would include business rail travel or flights and taxis.

Whatever form emissions reporting arrives in, the rental and leasing industry will have to comply.

However, there will also be an opportunity for members to differentiate themselves by offering customers carbon reporting and management services.

Avis Europe launched its environmental programme in 1997 and has implemented several initiatives to build carbon management into the business.

These include annual assessment of the carbon footprint by a third party, the integration of environmental reporting with financial reporting, appointment of environmental champions to drive carbon reduction activity internally, and the use of e-learning and videoconference tools to reduce travel.

Avis Europe covers its scope 1 and 2 emissions in its own reporting and has defined the emissions from its customers when they rent cars as scope 3.

It has developed a carbon offset option for customers, which sees money invested in renewable energy and resource conservation projects around the world.

Since beginning the programme, Avis Europe has worked with The CarbonNeutral Company to offset 167,810 tonnes of CO2. n

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It’s time to lift the lid on my trade secret

by Luke Johnson I have an eccentric admission to make: I have always been fascinated by trade associations. Indeed, my favourite birthday present one year was a directory of all Britain’s trade bodies. I accept this is an odd hobby, but let me explain why I think they are so interesting – and important.

In essence, competent trade organisations offer a wonderful insight into the peculiarities of an industry.

They carry the history of a business community, and try to explain its importance to the outside world. At their events, one can meet key players in their element. I love to learn the vital statistics about the scale of a sector, and trade bodies are often repositories of expert knowledge. Indeed, if you are researching an industry with a view to investing, the trade alliance should be your first port of call.

But beyond my specific curiosities, the best trade institutions carry out various useful functions: they promote and share best practice; they act as a forum for debate; they provide education for novices; and they work as lobbyists and champions for the trade. Frequently, they sponsor the main exhibitions and journals for an industry. Some provide members with technical advice and affinity services such as procurement discounts.

I suspect most trade associations came together originally for protectionist reasons, to keep out competition and set prices. Quite rightly, that sort of collusion is now illegal. So over the years the various commercial guilds and federations have had to find new purposes. Some have succeeded better than others. At heart, they act as a voice for business, and as an intelligence network for a profession.

During the past two decades I have attended as a delegate or speaker BVRLA News | June/July 2011

at annual conferences and award ceremonies for the television, stockbroking, catering, pub, book, theatre and newspaper industries, among others. Sometimes these gatherings can feel self-indulgent, but mostly they are worthwhile.

Opportunities to meet others who share your skills, passion and values are surely a good thing.

I recently spoke at the Garden Centre Association conference. It was a high-quality event, and demonstrated a vibrant society, with more than 200 progressive members, nearly all independent. This was an occasion for owners to learn, network and celebrate excellence. Above all, they

Of course, there are poorly run associations among the 1,000 or so serious trade bodies in Britain. These are the ones riven with infighting, run by second-rate staff combined with an inflexible, old-fashioned outlook. They tend to charge too high subscriptions and offer too little back to members.

The usual explanation for such weak performance is that the outfit has been captured by its executives, while the unpaid board are on an ego trip.

In contrast, dynamic trade bodies are governed by individuals who believe in the mission first and foremost. They set an example in terms of value and efficiency, and avoid bureaucracy at all costs.

‘One can meet key players in their element’ at trade events like the BVRLA conference

were a friendly bunch. I also gave a speech last year at a flashier affair, the annual convention for the Association of Publishing Agencies.

It is the trade body for contract publishers. Again, it was impressively done, and attendees I spoke to felt it was a valuable chance to understand trends, converse and perhaps do deals – or even get a new job.

The finest trade associations cultivate a spirit of fellowship among members.

They welcome young applicants, who will form the next generation.

This in turn can foster charitable activities, from bursaries and grants to apprenticeships. Such entities are not closed, secretive chambers, but welcoming, informative, mutual and philanthropic.

In these tough times, trade bodies should provide a place where entrepreneurs and managers can meet to share war stories, and avoid the intense feeling of loneliness that any operator can suffer – especially during a downturn. The camaraderie and understanding from others facing the same problems – even if they are competitors – can be invigorating for those feeling overwhelmed by temporarily difficult circumstances. n Luke Johnson runs the private equity firm Risk Capital Partners and is chairman of the Royal Society of Arts. lukej@riskcapitalpartners.co.uk THIS ARTICLE WAS FIRST PUBLISHED IN THE FINANCIAL TIMES ON 1 FEBRUARY 2011

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Obituary: Ivor Rowe, first BVRLA chairman Ivor Rowe, the first chairman of the BVRLA and one of its founders in 1967, has died at the age of 79.

A local councillor, Rowe became mayor of Prestwich in 1967, the first Liberal to hold the position. He volunteered in Israel during the Yom Kippur War and was very active in his local Jewish community, as well as acting as a Manchester JP and a school governor.

With his business partner Ronnie Royston, Rowe helped pioneer the modern business approach to vehicle contract hire and leasing in the 1960s with the company Control Cost Motoring (CCM). The pair helped launch the BVRLA in 1967 when the National Vehicle & Leasing Association that they had initiated merged with the British Car Rental Association.

Control Cost Motoring was eventually bought by Lex, with Rowe becoming a board director.

“Ivor was a very humane person, a fine example to all of how to get on with people amongst the cut and thrust of

He was also a passionate music lover, a director of the Halle Concert Society and regional chairman of the Variety Club.

Rowe: founding chairman of the BVRLA

business,” said David Longridge, who helped establish Avis Rent A Car in the UK and was on the BVRLA’s first Committee of Management with Rowe.

Rowe was married for 47 years, his wife, Dorothy, dying in 2001. He is survived by a son, Tony, and a daughter, Wendy. n Thanks to the Jewish Telegraph group of newspapers for some of the information in this article.

Legal and Policy: new name reflects team’s role The BVRLA’s Legal Services Department has changed its name to the Legal and Policy Department to better reflect the work that the team does on behalf of members.

of the department’s areas of operation and influence.”

“I believe that it is time to modernise the department title for legal services to better reflect the developing nature of what this section of the BVRLA is now responsible for,” said chief executive John Lewis.

The Legal and Policy Department handles more than 1,800 queries a year on business support, legal taxation and compliance. It also produces guidance on the BVRLA website to help members with changes in legislation, tax queries, minibus rules and a host of other topics relating to vehicle rental and leasing.

“It gives members and the wider outside world a better understanding

The department also manages the BVRLA’s conciliation service, dealing

with around 300 referrals a year from businesses and consumers who are in dispute.

The department’s lobbying and policy work, led by legal and policy director Jay Parmar, looks to reduce the regulatory costs facing members.

Key areas of lobbying include lease accounting, the Equality Act and electronic access to HGV annual test data. Its work is estimated to have saved BVRLA members £700m in the past two years. n

Used market for electric vans will be slow charger Auction house BCA has warned that it is likely to take at least four or five years for the used market to become receptive to electric commercial vehicles.

The company recently sold a threeyear-old Smith Edison E-van, which cost £40,000 new, for £10,100 at its Blackbushe site. Based on a Ford Transit chassis and formerly used for courier work in London, the electric van was sold by a leasing company BVRLA News | June/July 2011

and had just 14,000 miles on the odometer.

However, despite lots of spectator attention, genuine buyer interest for the white, long-wheel-base, high-roof 3.5 tonne van was limited.

It is still rare for electric vans to hit the remarketing arena and Duncan Ward, BCA’s general manager for commercial vehicles, believes only time will tell how the market will develop.

“I don’t expect to see many further used examples available over the next four to five years,” he said. “Over this period the whole market will become more knowledgeable and maybe more receptive as time goes on. All the manufacturers will claim that electric vans become most cost-effective over a longer than traditional period for the original owner, so there may have been some scepticism as to why this vehicle had hit the used market so early in its life.” n 11

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Road deaths drop to lowest figure since records began The number of people killed in road accidents has dropped 16% – from 2,222 in 2009 to 1,857 in 2010, the lowest figure since national records began.

be partly explained by the 2% fall in motor vehicle traffic seen in 2010, the benefits of new safety technology, including electronic stability control, are also apparent.

The latest statistics from the Department for Transport show that the number of people killed in cars and vans fell by 20% and 6% respectively, although the number dying in heavy goods vehicles doubled, year-on-year.

“Between a quarter and a third of road deaths and injuries are incurred in work time and these statistics suggest that companies are increasingly taking the issue of work-related road safety more seriously,” said BVRLA chief executive John Lewis. n

The total number of casualties, which includes those slightly or seriously injured as well as those killed, fell by 6%, to 208,655. While the fall can

Reported Road Casualties in Great Britain: Main Results 2010 can be downloaded here.

People killed in road accidents 2010 Type of road user

Number

Percentage change

Car occupants

842

-20%

Pedestrians

405

-19%

Motorcycle users

403

-15%

Pedal cyclists

111

+7%

LCV occupants

34

-6%

HGV occupants

28

+100%

Bus and coach occupants

9

-36%

New associate members Jet Total Vehicle Solutions

For over ten years Jet Total Vehicle Solutions has been providing defleet and remarketing support for many of the top automotive brands in the UK. Thanks to our commitment to quality, value and – above all – service, we have built a reputation as one of the industry leaders.

Towergate Insurance is the largest privately owned insurance intermediary in Europe and has over 30 years’ experience in the commercial vehicle sector. Our extensive experience and expertise enable us to offer self-drive hire policies which are underwritten by two of the largest UK insurers.

BVRLA News | June/July 2011

Selling Contract Hire 26-27 July

Aimed at sales and business development professionals, delegates will achieve a greater understanding of areas such as finance, taxation and competitive contracts.

Book now: fran@bvrla.co.uk

Asset Management and Risk Control Seminar 22 September, Oxford

Designed for credit, risk and underwriting professionals, topics include: compliance for rental and leasing contracts, consumer contracts and the Consumer Credit Act, contract enforcement, vehicle asset management and asset recovery.

Speakers from Blake Lapthorn, the ACPO Vehicle Crime Intelligence Service and the Recovery of Goods Centre.

Book now: fran@bvrla.co.uk

BVRLA City & Guilds Rental Operator Skills 1 November Glasgow and Amersham

With BVRLA members expressing a preference for an online accreditation system, this is likely to be the last ‘classroom-style’ assessment for this qualification in rental knowledge and service skills. Download an application form here.

Certificate in Fleet Consultancy Module One: 23-24 November Module Two: 18-19 January 2012 Aimed at sales executives and account managers, this course covers key principles of fleet and asset management, policy purpose and delivering fleet solutions, including finance and acquisition needs.

Book now: fran@bvrla.co.uk

www.jtvs.co.uk

Towergate

Training

Services include: ❱ free accident packs to help your customers know what to do in the event of a claim. ❱ vehicle tracking systems. ❱ forward-facing accident-recording cameras. ❱ direct reporting to the insurer. www.towergateinsurance.co.uk

ATA Technical Customer Service Advisor Dates on demand Aimed at individuals in technical service departments, this accreditation, valid for five years, intends to boost professional development.

Book now: fran@bvrla.co.uk For all BVRLA training, contact Fran Hampson, fran@bvrla.co.uk 01494 545703 13