Driving Business Spring 2012

DRIVING

Issue 1 Spring 2012 £4.50

Helping you make better decisions

MAKE DRIVER SAFETY YOUR TOP PRIORITY Our action plan will help save lives and money – and it’s easy to implement

BUYING A NEW CAR? Don’t – until you’ve read our feature on how to make the right choice

SCREW BUSINESS AS USUAL HOW SIR RICHARD BRANSON WANTS TO CHANGE THE WAY YOU WORK FOREVER

❚ Buy or lease: we help you to decide ❚ Telecoms: get close to clients without leaving the office ❚ Compact vans: which are best for business?

Contents �

STRATEGY & FUNDING

6 Making the right choices

ISSUE 1 Spring 2012

� 16

�20

Six key questions to ask before choosing your next company car

9 Funding methods

Which way of paying for vehicles is best for your business?

�

BROADER VIEW

�32

16 Securing bank funding

The inside view on persuading banks to loan you money

20 The DB interview

Why Sir Richard Branson wants to change the way you do business

�

HEALTH AND SAFETY

�34

24 Prevent your drivers from killing people

A five-step programme to save money – and, in some cases, lives

�

THINK DIFFERENTLY

27 Telecommunications

�30 �6

Get closer to your customers without ever leaving your desk

�

CARS AND VANS

30 Best in class...

Family hatchbacks

Find out which diesel hatches make the best company vehicles

32 Best in class...

Compact vans

We compile your shortlist of cost-efficient small vans

34 Coming soon...

The new car/van models due for launch that you need to know about

�24

�27 mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 3

DRIVING

Helping you make better decisions

Scan this QR code into your smartphone to visit mydrivingbusiness.co.uk

Contact us

Editor’s welcome

Driving Business, Media House, Lynch Wood, Peterborough PE2 6EA. Email editorial@mydrivingbusiness.co.uk

Welcome to your first issue of Driving Business.

Inside, you will find advice to help you manage your company cars and vans in a cheaper and safer way – but not at the expense of your time.

We recognise that this is not a part of your business you necessarily spend a lot of time worrying about, but we can show you how to make significant savings by making only a few tweaks and enhancements.

Of course, if you want to go a step further, we can provide you with much more help on our website – www.mydrivingbusiness.co.uk Here, you can find everything you might ever need to know about running company cars and vans.

This includes an easy-to-follow tool which allows you to compare how much it costs to run every type of car and van on the market, making your future choices about which models to

Editorial Editor Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Deputy editor Simon Harris 01733 468308 simon.harris@bauermedia.co.uk News editor Gareth Roberts 01733 468314 gareth.roberts@bauermedia.co.uk Senior features writer Sarah Tooze 01733 468294 sarah.tooze@bauermedia.co.uk Web producer Debbie Wood 01733 468655 debbie.wood@bauermedia.co.uk Contributors Louise Cole, John Maslen, Richard Yarrow, Catherine Chetwynd Production Head of publishing Sandie Hurford 01733 468312 Senior art editor Luke Neal 01733 468262 Production editors Andrew Ryan 01733 468310 Alan Salt 01733 468267 Advertising Group sales manager Sarah Crown 01733 468320 Group advertisement manager Sheryl Graham 01733 468256

buy next much more straightforward.

And you can register for our monthly bulletin which will keep you up-to-date with new legislation and best practice.

However, Driving Business is about more than company cars and vans.

Our ‘Broader View’ articles offer thought-provoking insight into related areas of business, such as funding.

This includes our cover feature on a leading business entreprenuer – in this issue Sir Richard Branson with his latest book Screw Business As Usual.

You can find more about how to get the most from Driving Business on the back of the carrier sheet containing your name and address.

I’m keen to get feedback about this first issue so please email comments to editorial@mydrivingbusiness.co.uk.

You can also suggest features for us to look at in the future – let us know how we can make your job easier.

Stephen Briers Editor, Driving Business

Business development manager Stuart Wakeling 01733 468342 Account managers Heidi Rogers 01733 468269 Lisa Turner 01733 468345 Lucy Herbert 01733 468800 Project managers Leanne Patterson 01733 468332 Angela Price 01733 468338 Kerry Unwin 01733 468327 Publishing Managing director Tim Lucas 01733 468340 Group Marketing Manager Bev Mason 01733 468295

Contributors Louise Cole Louise runs a media agency, White Rose Media, specialising in fleet and logistics. Although most of her life has been spent writing about haulage fleets, she recognises the same business issues for cars and vans: safety, cost reduction and operational efficiency.

Richard Yarrow Richard is an experienced freelance motoring journalist. A former associate editor of Auto Express, he writes for national newspapers, consumer magazine and trade titles. Richard is equally at home interviewing company executives or driving their latest models.

John Maslen John is widely recognised as one of the most experienced and knowledgeable writers in the company car and van business. He wrote for trade magazine Fleet News for ten years and is now brand director at motor industry research business Sewells Insight.

Catherine Chetwynd Catherine worked for a number of public relations consultancies before moving to Executive Travel magazine, where she stayed for 12 years. She went freelance in 1995 and has written for The Times, FT, Financial Director, Accounting & Business and The Grocer.

Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Subscriptions: subscription@mydrivingbusiness.co.uk Printing: Headley Brothers Ltd, Kent © 2012 Bauer Media No part of this magazine may be reproduced without the permission of the publisher. You can purchase words or pictures for your own publications.

Phone 01733 465982 or email syndication@bauermedia.co.uk.

Driving Business will not accept responsibility for unsolicited material.

4 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

Thinking of changing your company cars?

Before you make any decision about which cars you should be purchasing or leasing, there are a number of key questions you should ask. Richard Yarrow reports

1

WHO WILL BE USING THE CAR AND WHAT FOR?

Consider what size of car you need and what body style.

It will narrow your choice by ruling out some manufacturers’ models.

The two main criteria are the job function and the driver. Is the car perk only, in which case it is part of the benefits package and needs to appeal to the driver – badge can be important here; or is it job need, in which case which type of function does it need to fulfil?

A sales rep with bulky samples to carry around would suit an estate or MPV; one travelling long distances requires something fuel efficient at motorway speeds. An electric vehicle could be the solution if multidrop urban use is required. Your choice has to be fit for purpose.

Also think about three doors or five. The latter is generally more practical and the popular choice for company cars. The former often has sportier styling, which might not portray the right business image.

6 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

2

WHAT BRAND AND IMAGE SHOULD I GO FOR?

3

HOW MUCH WILL IT COST?

4

SHOULD I CHOOSE A CAR WITH LOW EMISSIONS?

This is a serious consideration because it can reflect, either positively or negatively, on your reputation and success.

Prestige vehicles might lead clients to think you’re overcharging them. Equally, if older base models could suggest you might be struggling or indicate a lack of professionalism. Find the right balance that best fits your business sector.

The right car – still considered a perk by most employees – can also impact on staff recruitment and retention. Some fleet vehicle providers offer benchmark data and policy guidance based upon sector experience. Also consider how it will fit the rest of your fleet.

5

PETROL OR DIESEL?

6

WHAT ABOUT OPTIONAL EXTRAS?

Fuel is second in the table of costs associated with running a vehicle. Only depreciation is ahead of it.

Choose something with solid mpg performance and also consider cars with stop/start technology for extra savings.

Official fuel economy figures will show that 60+mpg from a D-segment saloon is a reasonable expectation. However, remember you might not match that in real-world driving. The manufacturers’ figures are carried out in lab conditions, not on actual roads.

You can expect employees to generally under-achieve the official figure by 10-15%, taking a 60mpg car down to 51-54mpg. Driver training can help to close that gap – particularly for the worst performers who might only be achieving the low 40s.

Diesel is the more popular company car choice, but the general rule is that the vehicle should be doing more than 15,000 miles a year for the extra cost – of it and the fuel – to pay off.

Before choosing a vehicle, do the maths.

Using wholelife cost (WLC) for calculations will ensure you know the bigger picture up front. WLC works out the pence per mile cost over the length of time you wish to keep the vehicle, often three or four years. It should include the vehicle cost (either lease or the purchase price minus the predicted re-sale value) and fuel costs, plus any maintenance charges, Vehicle Excise Duty, Class 1A NI and the insurance premium.

This method will generally identify cleaner and more fuel-efficient vehicles as being cheaper for your business. They also offer lower BIK liability for staff.

Yes, as low as you can. The wrong decision can impact massively on running costs – lower CO2 means better fuel economy.

Cleaner vehicles reduce the driver’s BIK tax payments, but there are also financial incentives for the company. These include improved capital write-down allowances, lower road tax, possible London Congestion Charge exemption and reduced Class 1A NI payments. All are based on the graduated scales driven by CO2 levels.

Many have companies introduced a CO2 cap of 160g/km; at this threshold 18% of the tax can be written down in the first year (as of April 2012). Above, and just 8% can be written down. However, opt for a car below 111g/km and 100% can be written down in year one.

From April 5, the BIK tax calculation for the cleanest cars changes.

Until then the rules allow for a reduced percentage of 10% BIK for petrol cars and 13% for diesels with emissions of 120g/km and below.

From April 5, the threshold drops to 99g/km.

Cars between 100-120g/km will see a rise in BIK of 1-5 percentage points. This change will also alter the amount of NI the company pays.

Your choice and it will obviously cost you more, but many companies consider it a worthwhile expense.

As well as giving employees the feeling of choice when selecting their car, some options – metallic paint is the classic example – can add value when it’s time to sell.

Some leasing companies will reduce the costs of certain options to reflect this. From a Health & Safety perspective, consider whether you offer hands-free telephone kits (or Bluetooth connectivity), parking sensors, fire extinguishers and first aid kit.

WANT TO KNOW MORE? n www.aldautomotive.co.uk for advice on choosing your next vehicle n www.fleetlineoffers.co.uk for price comparisons n www.mydrivingbusiness.co.uk for information on the BIK tax bands and measuring your running costs mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 7

fund ing Veh icle

Hands up if you want to save money...

There are many ways to fund company cars and vans, Gareth Roberts asks what’s best for you and what should be your key considerations?

T

▲

here are more ways that companies can pay for their cars and vans than any other business asset – and it can quickly become confusing.

Any review of vehicle acquisition needs to start with what you want to achieve with your vehicles.

Considerations should include cashflow, reduction of cost, driver choice, tax efficiencies, safety and duty of care, balance sheet and environmental concerns (see page 12).

Whatever your criteria, consideration should always be given to the total life cost of a vehicle.

WHAT IT MEANS FOR YOU

WHY TAKE ACTION NOW?

Your choice of funding has a major impact on costs and your ability to manage vehicles. It’s an expensive mistake to get wrong. Not only could it cost the business money, but how well vehicles are managed in-life could be compromised.

Are you currently using the right funding option? It could differ over time depending on changes in your company’s circumstances.

Regularly reassess.

▲

KEY CONSIDERATIONS FOR FLEET ACQUISITION n

n n n

Available cash for funding vehicles vs utilising it for core company needs Tax implications of funding options Type of vehicles operated Balance sheet implications

n

n n n

Attitude to risk and exposure to maintenance and residual value costs Importance of budgeting/cash flow Vehicle management expertise Importance of managing vehicles

BUYING OUTRIGHT

CONTRACT HIRE

HIRE PURCHASE

BEST FOR: flexibility; no fixed term/termination/ end of lease charges; company owns the asset; discounts from dealers; longer operating cycles (more than five years); larger commercial vehicles.

BEST FOR: no residual value risk; simplified budgeting; reduced fleet management role; tap into contract hire company’s buying power; off balance sheet.

BEST FOR: greater buying power; vehicle appears on balance sheet; interest elements of the hire purchase fee can be offset against taxable profits.

PITFALLS: residual value risk; responsible for sorting out service, maintenance and repair.

PITFALLS: fixed contract; early termination charges; excess mileage charges; end of contract damage recharges can be excessive.

Outright purchase remains a popular choice with smaller companies, particularly for vans, but there are associated risks.

If a company purchases its own vehicles, it becomes responsible for maintenance, repairs, insurance and disposal.

It is also exposed to the management issues of running the vehicle and any changes in value at disposal.

And in accounting terms, the vehicle will be a fixed asset on the balance sheet. The company will need to have available funds to buy the vehicles, either using its own resources or borrowing, and those borrowings will be on the balance sheet.

The employer will be the owner and so entitled to capital allowances of up to 100% in the first year, dependent on CO2.

Contract hire is a method of long-term rental for a fixed period, linked to a mileage allowance. It offers you a fixed monthly payment plan and you finance the difference between the cost and the resale value. Companies pay an initial fee.

You choose how long you want to keep the vehicle and simply send it back at the end of the contract and order a new one.

It is arguably the simplest way to budget and fix your motoring costs, as all you do is insure and fuel the vehicle.

Contract hire also protects you from the depreciation risk and can include vehicle excise duty, full maintenance/breakdown cover, vehicle recovery and even a replacement, if the vehicle is off the road.

FINANCE LEASE

PCP

BEST FOR: low monthly costs and initial outlay; flexibility; up to 50% of the VAT payments can be reclaimed.

BEST FOR: fixed prices, budgeting; only small deposit required; can include maintenance packages; no residual value risk.

PITFALLS: no ownership as vehicle must be sold to a third party; risk of high interest rates; potential for additional charges; focus on vehicle cost rather than wholelife cost.

PITFALLS: can be more expensive than hire purchase; must adhere to mileage limits.

A finance lease is a VAT-free option where you choose to pay either the entire cost of the vehicle, including interest charges, over an agreed lease period, or opt to pay lower monthly rentals with a final payment based on the anticipated resale value of the vehicle.

Under a finance lease you never take ownership of the vehicle. The user benefits with a fixed cost, but does take on the administration and operating risks, for example unexpected maintenance, repairs and losses in residual value.

10 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

Contract purchase (PCP) for a business aims to replicate the contract hire product, but uses a purchase-based product.

The business agrees to buy the vehicle by paying instalments for a period of time, but the supplier agrees to buy it back at the end of the contract for a pre-agreed fixed price if the business decides not to take up the purchase option.

A mileage limit will apply to all personal contract purchase deals. This is because the leasing company will use the mileage limit to determine the vehicle’s depreciation and therefore its re-sell value at the end of the contract.

PITFALLS: large deposit may be required; risk of high interest rates; be aware of additional fees.

Hire purchase is a simple method of buying a vehicle on deferred payment terms, where you have the option to become the owner of the vehicle at the end of the agreement.

Typically, the hire purchase pattern will be one payment followed by 35 or 47 equal monthly payments starting one month after the commencement of the agreement. A deposit may also be required.

Unlike contract hire or personal contract purchase agreements, the residual value of the vehicle is not taken into account.

Instead your monthly payments on a hire purchase agreement are determined by the retail price of the vehicle, the size of the deposit and the length of the contract.

TOP TIP: beware of hidden charges However a fleet is funded there is the risk of incurring ‘hidden’ or ‘unforeseen’ costs and it’s imperative to include them when budgeting.

End of contract charges will apply if the agreed mileage is exceeded and a 20,000-mile excess at 10p per mile would cost you £2,000 per car.

Maintenance budgets and vehicle age/mileage need to be closely controlled to avoid excessive costs and to ensure no under/over servicing.

Before you enter any lease agreement, you need to get clarity on what all the potential charges could be – a cheap rental can often be much more expensive when these are factored in.

fund ing Veh icle

WHERE TO GET MONEY

NEED MORE HELP?

EASY n The bank n The leasing company n Broker n Company funds HARD n The employee contribution

For more advice, contact: n www.hmrc.gov.uk for tax details n www.bvrla.co.uk for leasing/rental advice n www.mydrivingbusiness.co.uk for even more funding options and practical advice

LEASE PURCHASE

RENTAL

BEST FOR: payments typically cheaper than hire purchase; vehicle can appear as a balance sheet item and you can write down the value against taxable profits; frees up finance.

BEST FOR: flexibility; simple administration; no service, maintenance or repair costs, meeting short-term need for vehicles.

PITFALLS: availability of cars at a reasonable price; risk of additional ‘unforeseen’ costs through late returns or damage.

PITFALLS: you must have sufficient finance to afford the balloon payment at the end of the contractual period; you can only reclaim VAT if the car is used exclusively for business use; you take residual value risk.

Lease purchase is structured in the same way as contract purchase, with a lump sum or ‘balloon payment’ made at the end of the agreement based on the residual value.

However, while you may benefit from a slightly lower finance rate, unlike contract purchase you can not return the vehicle at the end of the contract – you must buy it.

The upside is if the vehicle holds its value, the deal is better.

A typical lease purchase agreement will last from two to four years, though with most companies it is possible to settle the agreement at any point during this period.

It is purely a finance package and does not include maintenance or other services (which are available on contract purchase).

CASE STUDY: ANGLIAN WATER Anglian Water decided to switch from contract hire to outright purchase for its vans six years ago.

It manages the vehicles in-house via fleet manager Nigel Allen.

“Owning the asset gives flexibility when we dispose of it. We can increase or reduce the size of the fleet without needing to have contract termination talks,” says Allen. “For instance, if residuals on three-year-olds improve then it might be a good time to get out. That reduces our wholelife costs.”

How tax changes influence funding The Government is using tax as a means of encouraging the use of cleaner cars by aligning tax bands with a vehicle’s CO2 emissions.

But it’s not just company car tax where it is possible to save money. Savings can also be made through capital allowance.

Outright purchased cars with CO2 emissions above 160g/km receive a 10% writing down allowance (it reduces to 8% from April) in the first year, while those between 111-160g/km attract a 20% allowance (18% from April).

Consequently, organisations buying a vehicle outright that emits 160g/km or below can offset twice as much of the cost of depreciation against their corporation tax bill each year.

At 110g/km or below, companies can write down 100% in year one, until 2013.

For leased cars emitting more than the 160g/km CO2 threshold, employers can claim only 85% of the financial element of the rental against tax, while if they are sub-161g/km they can claim all of it.

For a flexible option, daily hire or rental arrangements can be appropriate, especially where vehicles are only required on a short term or irregular basis.

Few companies will fund their all their company cars or vans using rental, although so-called ‘flexi-rent’ schemes which offer longer deals are popular.

Daily hire is a worthwhile option for companies that face seasonal fluctuations or that have temporary contracts which require a short-term increase in vehicles.

It also can be the best solution for when an employee without a dedicated company car is required to drive for a business journey, ensuring they do not drive their own car on business which is costly in terms of fuel reimbursement and has duty of care implications if their car does not meet certain standards.

CASE STUDY: CEL TECHNOLOGY IT company CEL Technology chose a rental option from Transmore Vehicle Hire, a subsidiary of Northgate Vehicle Hire.

“We need to be able to adapt to the challenges of our business very quickly and efficiently,” said Kris Bunting, MD of CEL Technology.

“The flexible rental solution provided by Transmore Vehicle Hire has given us the confidence to know that as our business grows and develops our fleet can respond promptly and effectively.” mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 11

Who can you turn to for full fleet support?

Keeping your fleet of cars, vans or trucks on the road is crucial to a successful business. It’s therefore good to know that you don’t need to go round the houses to get all the assistance you need.

From business insurance to driver training to every aspect of vehicle repairs, it’s all covered under the AA Business Services range.

So, whether you have a small fleet of cars or a single commercial vehicle, we can help keep your business running smoothly.

AA Fleet Insurance 0800 107 8177 theAA.com/insurance

AA Key Assist Fleet.Enquiries@ theAA.com

Fleet Risk Management from AA DriveTech tellmemore@AAdrivetech.com

AA Business Insurance 0800 107 8177 theAA.com/business

AA Fuel Assist FuelAssistEnquiries@ theAA.com

AA AutoWindshields 0800 054 2463 OutboundTeam@theAA.com

The insurer is Automobile Association Insurance Services Limited.

For Business Breakdown Cover call on

0800 55 11 88 and quote ref 0771

or buy online at theAA.com/business

mydrivingbusiness.co.uk The Driving Business website is packed with information to help you choose, manage and sell your company cars and vans Choose the right cars and vans.

Unsure which vehicle you want?

Head to the Find a Car/Van tool.

Want to compare car or van running costs? Our tool provides the calculation based on price, resale value, fuel costs and service, maintenance and repair costs. Here, you can also find out how much tax your drivers will pay and you can read reviews of every key car and van from our experienced road testers.

Managing the cost of your vehicles.

With myriad funding options to choose from, this section will help you decide which is best for your business. You can also get tips to help you reduce your fuel bill while our maintenance advice will ensure your vehicles stay on the road.

Safety & Compliance.

Running company cars and vans isn’t simply about choosing which vehicle you want. You have legal obligations to keep staff safe and you can find out what those are in this section – and what the implications are if you fail to comply.

Here, we also advise you on how to reduce accident costs and provide details of vehicle safety ratings, as well as offering tips on your drivers’ responsibilities.

Cool Stuff & Business Surgery.

Business Surgery is where you can ask questions of our experts and find best practice case studies on improving safety or reducing cost. It also contains the ‘Broader View’ articles which explore related areas of business management, such as funding and IT. Cool Stuff contains future launches, crazy concepts and things that we think will excite or surprise you from the business world. mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 13

SURE-FIRE WAYS TO SECURING BANK FUNDING Financial experts give you the inside view on persuading bank managers to loan you money COMMON OBJECTIVES TO OVERCOME...

Be proactive, do not succumb to the perception that banks are not willing to lend – they are there to support viable businesses Many requests for loans are declined because a company has not done proper preparation – make a strong case for yourself Demonstrate your professionalism. Many business people are strong on their product and/or service and are less robust on their company’s financial details Mitigate every risk – what if the base rate moved from 0.5% to 3%; if your best salesman left and set up his own business; if a major client got into difficulties…?

WHAT THIS ARTICLE MEANS TO YOU Funding plays a key role in the management of vehicles.

Without knowing how to source money as cheaply as possible, you start out at a commercial disadvantage.

In this ‘broader view’ article Catherine Chetwynd takes lessons from vehicle management to consider how funding affects other elements of your business, asking how you can secure money from the bank.

D

espite perception to the contrary, the majority of SMEs that apply for funding get it. The CBI’s SME finance monitor shows that 79% of SMEs applying for or renewing overdraft facilities do end up with an overdraft and 63% of companies that apply for or renew a loan now have a facility.

The statistics are skewed by the many very small companies (up to nine employees) seeking their first loan or overdraft, who may not have the experience to approach the process effectively. This is reflected in the figures for companies with 10 to 49 employees, which are much higher: 92% and 84% respectively.

So how do you persuade your bank to loan to you?

Preparation is vital

Preparation will make it clear that you have considered the implications of taking a loan, both from your point of view and from the bank’s. Go in ill-prepared, with only a vague idea of how much you want to borrow, what you want to do with it and how you are going to pay it back, and failure beckons.

“A lot of people are very unsure; they have not put

16 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

much thought into how to pitch for money. The more homework people do in developing a formal business plan, the better,” says HSBC strategy implementation director Mike Conroy.

CBI head of innovation and skills Tim Bradshaw agrees: “Banks are looking for a well thought-through and fully up-to-date business plan that takes into account the broader current economic context,” he says. “All too often, businesses go back to a bank with the same plan they were using two or three years ago, which does not help the process.”

Be aware of the risks

Companies need to demonstrate awareness of their risk such as how dependent they are on suppliers.

“It is important to have up-to-date management accounts and credit control policies, information on customer payment history and reputation, an understanding of customer demographics and macro conditions,” says Bradshaw.

Companies must show they understand how the type of lending requested matches the needs of the business – for example, overdrafts and short-term loans for immediate working capital requirements, versus longer-term debt, mortgages etc. for capital investment.

Cost of borrowing has risen

Access to wholesale funding markets has been hit by the economic crisis. Firms are unlikely to secure borrowing at rates they could’ve done a few years ago.

Regulatory reform is raising outlay for banks, via implementation costs and regulations designed to make the banking system healthier. Banks now have to hold both more capital and more cash for each loan issued which is reflected in their charges.

TOP FIVE FUNDING TIPS

CASE STUDY: DRAKES DEN INDOOR PLAY

Match the loan to its requirement. Is it short-term working capital because one big contract won’t pay for 40 days and you need to be able to pay suppliers in seven? Or is it a long-term loan to finance a printing press, which may take 10 years to repay?

1

Be realistic. If your business was growing modestly and your proposal says it will grow by 50% in 12 months, you will have to substantiate that. Give the bank a reason to believe you. And if your financial track record is not that hot, expect the bank to consider this.

2

Understand what banks look for when they are considering whether to lend – it’s the same principle as a job interview, you need a good idea of the job. There is a lot of information on the internet (see links right) .

3

The bank will look for security against a loan and if your business does not have sufficient assets, it could be looking at the personal assets of the directors, so expect to be asked for your house as security.

4

If you are turned down, you can appeal and that will be assessed by a different person within the bank. In addition, to ensure fair play, this is scrutinised by an independent reviewer who reports to the Government: 40% of appeals overturn the original decision.

5

Director of PTS Leisure Paul Selvester set up Drake’s Den, a safe indoor play area, in December 2009. He recently secured an Employer Business Loan from HSBC, which gives a discount on the interest rate for employing new staff.

PTS employed three people and got a 3% discount on the rate.

“We took in a business forecast, history, visitor numbers and showed what we could do with a bit more [money],” says Selvester.

NEED MORE HELP? n www.hsbc.co.uk knowledge centre about running business, fact sheets n www.betterbusinessfinance.co.uk information from major banks n www.businesslink.gov.uk helpful tips n www.mentorsme.co.uk free advice n www.businessgrowthfund.co.uk routes to Dragon’s Den type capital

mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 17

SMALL FLEET.

BIG

NEEDS?

Official fuel economy figures for the new BMW 3 Series Saloon range: Urban 25.4-57.6mpg (11.1-4.9l/100km).

Extra Urban 46.3-80.7mpg (6.1-3.5l/100 km). Combined 35.8-68.9mpg (7.9-4.1l/100 km).

CO2 emissions 186-109g/km. *Offer is available to business users only, figures exclude VAT. Participating dealers only. Not available in conjunction with any other offer. Figures include service, maintenance and repair for the duration of the contract. Hiring example is based on a 36 month BMW Corporate Finance agreement for the model shown. A BMW 316d Sport Saloon, a deposit of ÂŁ1,173.00 followed by 35 monthly rentals of ÂŁ391.00, mileage charge in excess of contract mileage 11.57 pence per mile. All agreements are based on a contract mileage of 30,000 miles and include metallic paintwork. Vehicle condition charges may apply at the end of your agreement. Offer correct at the time of printing and may change without prior notification. All hiring is subject to status and available to over 18s in the UK (excluding the Channel Islands). Guarantees and indemnities may be required. Hiring facilities provided by BMW Financial Services, Europa House, Bartley Way, Hook, Hampshire, RG27 9UF. BMW EfficientDynamics reduces BMW emissions without compromising performance developments and is standard across the model range.

BMW | MINI Business Partnership YOUR COMPANY BENEFITS.

THE NEW BMW 316d SPORT SALOON £391 PER MONTH (PLUS DEPOSIT)*.

• 118g/km CO2 • 13% BIK • 62.8mpg combined • Includes service and maintenance • Includes complimentary reversing assist camera • Includes Xenon headlights • Includes 18" alloy wheels

Delivering outstanding efficiency and unrivalled driving dynamics, the new BMW 3 Series Saloon is good news for the person behind the wheel as well as the one balancing the company’s accounts.

With class-leading performance and efficiency, newly-refined styling plus a high level of standard specification, this is a car that is sure to make a big impact with small fleets everywhere.

For further information and to find your nearest Business Partnership dealer, visit www.bmwbusinesspartnership.co.uk

316d Sport

118g/km 62.8mpg

Sir Richard Branson – a business timeline 1965 1966 Launches Student magazine

1970 1970 Launches mail-order record company trading as Virgin

1975 1972 Launches Virgin Records

1973 Virgin Records’ first artist, Mike Oldfield, launches Tubular Bells

1977 Signs Sex Pistols to Virgin Records

1978 Buys Necker Island

SCREW BUSINESS AS USUAL WHY RICHARD BRANSON WANTS YOU TO CHANGE THE WAY YOU DO BUSINESS

John Maslen Reports

20 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

1985

1980 1983 Launches Virgin Atlantic

1986 Record-breaking Atlantic crossing in Virgin Atlantic Challenger II

R

1990 1987 First crossing by hot-air balloon of the Atlantic

1991 First crossing by hot-air balloon of Pacific

R

2000

1995

1992 Sells Virgin label to EMI 1993 Launches for £500 Virgin Radio and million Virgin Trains

1999 Launches Virgin Mobile and knighted for contribution to entrepreneurship

2006/7 Virgin Mobile sold to NTL and becomes Virgin Media

2004 Announces plans for space tourism with Virgin Galactic 2005 Virgin United founded

2010

2007 Launches Virgin Money Giving charity donation website

“ ”

Business as usual isn’t working. It’s business as usual that’s wrecking our planet

mobilising your whole business to drive change can impact millions of lives, and give a whole new life purpose to all the people who work in your company.”

He favours ongoing involvement over simply funding good causes as a way of driving change within businesses, reflecting his own lifelong commitment to social responsibility.

“Even as a child I had a strong sense of social responsibility and this has grown over the years so that today I spend as much time on using my entrepreneurial skills to help solve issues as on running the business,” he says.

Examples of this approach within Virgin involve the creation of ‘Hit Squads’, which allow staff members to get involved for a few days of very focused time to support a not-forprofit organisation with their professional skills.

He says: “Even though they are doing it for nothing, we treat is as if they were being paid for consultancy projects to ensure it is taken seriously and there are clear deliverable tasks. I have seen entire annual strategies produced in just five days. They are not only great for staff morale; they are also a great training and development tool.”

Companies also need to understand the resources they use, such as raw materials, fuel burnt for travel and electricity used in buildings, so they can consider whether there are better ways of doing business.

A simple example is the laptop. Branson points out that the average laptop weighs about 10lbs, but it took more than 10lbs of raw materials to make. If you count everything processed and distilled into those 10lbs, such as minerals extracted using incredible quantities of fuel, a laptop weighs the equivalent of 40,000lbs.

Just understanding these issues can spark ideas that transform a business, particularly if employees are engaged in the debate about how to make a difference.

He says: “I want all our people to be entrepreneurial, to work under their own initiative and to realise that if something isn’t happening, then they have to make it happen.

“Companies that consistently manage and measure their responsible business activities outperformed their FTSE 350 peers on total shareholder return in seven out of the last eight years.” ▲

ichard Branson is a man on a mission and he wants to take you on the journey too.

Under the attention-grabbing mantra of ‘screw business as usual’, he is calling on companies to rethink the way they operate, to give the planet and people equal weighting alongside profit in the business plan.

It is a big challenge and one that will draw its fair share of criticism, particularly as Branson penned his missive from his own private paradise, Necker Island in the British Virgin Isles, as the head of a multi-billion pound company, Virgin Group, with his own personal fortune estimated at £3 billion.

Aged 61, he admits to assessing his legacy, saying: “As I grew older, it seemed I wasn’t making a big enough difference, particularly given my own incredible good fortune.”

But his enthusiasm for the cause is also backed by hard evidence from a global alliance of businesses and entrepreneurs who have proved the methodology works, laid out in his latest book, Screw Business as Usual.

Branson takes readers on a world tour of companies and initiatives that are changing people’s perceptions of doing business.

He says: “Business as usual isn’t working. It’s business as usual that’s wrecking our planet. Today people aren’t afraid to say ‘screw business as usual’ and show that they mean it.

Doing good can help improve your prospects and by doing good – doing the right thing – businesses will prosper. Doing the right thing can be profitable.

“Even a small or medium-sized company could look at different ways to use its resources to be proactive in some way and to support the communities and environments in which they operate.”

The essence of Branson’s message is the importance of thinking differently and establishing new priorities when making business decisions.

Critically, this doesn’t mean sacrificing profit, as he argues that a social business model can actually generate more money than slavishly sticking to ‘business as usual’.

Branson says: “Each and every business person, no matter how small or large his or her business is, has the opportunity to screw business as usual and help create powerful, world-changing communities with their staff, customers, suppliers and the general public.

“We are on the brink of a significant transformation in the world, one that will truly screw business as usual and herald a brand new way of doing business that will lead to more fulfilling lives for all of us and a much more fair, more equitable and healthy global village.”

So what does the new business model look like?

Awareness is critical to making a difference, firstly for understanding how your business impacts on the community and the environment and secondly for accepting that you can make a difference.

The third critical part is commitment, Branson adds: “Writing a cheque might impact hundreds of people’s lives;

2005

mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 21

▲

In Screw Business as Usual, Branson cites a range of case studies for examples of the social business model. These include well-known brands such as John Lewis, which shares ownership with its employees, and Unilever, which is working on global projects to tackle poverty.

Other companies include salesforce.com, where customers are part of a global alliance to reduce carbon consumption and Working Assets, a finance and communications company that has a mission statement to support peace, equality, human rights and the environment.

Other companies Branson reviews include the smoothie maker Innocent and ice-cream giant Ben & Jerry. In every case, the companies have managed to balance success and profit alongside social responsibility and good causes.

Virgin itself has a raft of initiatives, one of the most powerful being Virgin Unite, a foundation designed to bring together experts from around the world to tackle issues and use business as a force for good.

Branson adds: “Virgin Unite wants to look at how we could use everything we have as a group of businesses to connect people to create entrepreneurial approaches to some of the tougher issues in the world. Everything is built on a core belief that businesses really can and must do better in the world to take care of people and the planet.

“Virgin Unite focuses on three things: working with our 300 businesses so that they drive change at their very core, the incubation of new approaches to global leadership and the building of a community of people that never accepts the unacceptable.”

This approach has also coined a new phrase for the social business model, called Capitalism 24902, a reference to the 24,902 mile circumference of the world and the global nature of the initiatives Branson wants to inspire.

It is a long-term project, but one that he believes is a critical legacy to create in return for the success and opportunities he has enjoyed in his business life.

He adds: “We are on the brink of a significant transformation in the world. One that will truly screw business as usual and herald a brand new way of doing business that will lead to more fulfilling lives for all of us and a much more fair, more equitable and healthy global village.

“I look forward to partnering with you in this new adventure, filled with great opportunities that we can’t even fully imagine yet.”

Sir Richard Branson on Screw Business as Usual: “I have written this book for those who, at the same time as wanting to develop a business and make a living, also want to do more to help people and the planet. It’s a vibrant sea change from the way business was always done, when financial profit alone was the driving force.” Screw Business As Usual is published by Virgin Books and is priced £12.99. It is available from all good book retailers.

Web: virginunite.com/screwbusinessasusual Twitter: @virginunite #sbau Facebook: facebook.com/virginunite 22 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

HOW TO BE THE NEXT RICHARD BRANSON

Richard Branson is blessed with the same enthusiasm and determination that has driven him since he was a teenager, when he launched his own magazine, Student, aged 15.

A year later, he left Stowe School to run the magazine full-time.

On its own, the letter from a 16-year-old Branson to his headmaster would seem almost comical, but in context his words show a level of self-belief that was key to his future success.

He wrote: “The fact that I am asking to leave may well sound gutless and inexcusable, after all you and Stowe have given me. I fully appreciate... everything you have done. By leaving this summer, I feel I can give more to Stowe and Britain.

“By giving a platform to students and others, we aim to spark off enthusiasm and a new drive in Britain, beginning with its young.”

He admits the leap into the unknown was ‘terrifying’.

“I have never forgotten the lessons I learned in those early years, the ups and downs and the downright terrifying

moments when things looked as if they were about to go pear-shaped,” he says now.

“I learned that if you see a bright idea – go with it. If you see a problem – deal with it. Do good, don’t do harm.”

His experiences have given him a clear insight into the critical elements of a successful business, particularly how important it is to have happy and engaged staff, who are connected with the senior team.

He says: “It’s not about you, it’s not about the business – it’s about the staff and the customer.

It’s the Virgin ethos to take care of people and be considerate.

“We always try to promote from within the company. The head of Virgin United in Canada started out as a receptionist. The managing director of Virgin’s recording division started as a cleaning lady.

“The people in all organisations have the combined power of a hurricane to effect change. Every person should take responsibility to make a difference to everything they do, at work and in their personal lives.”

“ ”

The people in all organisations have the combined power of a hurricane to effect change

Advertisement Feature

As HMRC zeroes-in on mileage payments… …make sure your business is not in the firing line

HMRC is getting tough on mileage records.

A routine mileage audit by the Revenue recently cost a small firm with 15 drivers £25,000 in penalties.

An employee had overstated his business mileage. HMRC ruled that he’d effectively received private fuel benefit.

Because the firm hadn’t checked claims sufficiently, it had to pay tax liabilities and penalties on a third of all mileage claims, going back four years.

Why pick on mileage?

HMRC sees huge potential to recover technically unpaid fuel BIK. Traditional mileage records aren’t usually good enough to prove that you took all reasonable steps to avoid paying for employees’ private fuel.

In fact, over 90% of small and medium businesses would probably fail a tax audit.

What they look for Here are three of the common giveaways that inspectors typically look for: Low private mileage. Is less than 40% of car mileage personal?

Curious mpg results. Do fuel use and mileage payments tally with cars’ actual mileage?

Zero sums. Are more than 20% of mileages rounded to zero?

What should you do?

In a tax audit businesses need to be able to demonstrate that: • Journey logs are detailed, accurate and complete, showing date, start and finish points, purpose for trip, and mileage claimed

Protect yourself with TMC2 Mileage Audit Award-winning TMC Mileage Audit is the leading way to protect against excessive mileage costs and tax compliance risks.

Drivers report their mileages to TMC each month and we do the rest. More than 100,000 business drivers already use TMC. And now there’s TMC2 – especially for businesses with 1-100 drivers. It’s a complete outsourced solution, not just a clever piece of software, and it typically saves eight to 10 times its annual cost.

TMC2 works for company cars, cash allowance takers and owner-drivers; and with both pay-and-reclaim expenses and fuel cards.

We provide a dedicated account manager for you and a UK-based helpline for your drivers.

We even chase drivers for their mileage claims so you don’t have to.

Let TMC2 solve your mileage issues so you can focus on running your business, not worrying about the tax man.

To find out more, call 0843 222 6000 or visit www.tmc2.co.uk

• Claims are checked regularly and inaccuracies reconciled by drivers to prevent overpayments As long as these things are in place, it’s quite likely that HMRC won’t trouble to delve deeper into past mileage history.

The clear message is: ‘Sort mileage reporting out without delay.’

www.tmcuk.co.uk

Stop your drivers from killing people Last year, a company settled out of court for £1.5 million after one of its drivers, talking on a handsfree phone, drove into a woman at a bus stop, killing her.

Don’t let this happen to you.

Here’s what to do.

I

By John Maslen n just five years, vehicles being driven for work have wounded a staggering 363,000 people and killed more than 4,400.

The toll of injury and death linked to business journeys is not limited to the people in the vehicles being used for work, as they account for little more than 50% of the total. The rest are other drivers, pedestrians, cyclists and various road-users whose lives have been altered in some way as a result of the tragedy.

In 2010, the last year for which figures are available and where a journey-type was stated, 52,000 cars and vans were involved in accidents while being driven for work or commuting.

As a result, 540 people were killed, including drivers, vehicle occupants, pedestrians and other road-users. A total of 5,281 seriously injured and nearly 50,000 slightly injured.

Some may argue that the figures don’t apportion blame and that work drivers can’t be responsible for all the carnage, but the question is, does it matter?

Experts believe that for businesses to thrive, protect their employees and safeguard profits, teaching drivers how to spot and avoid danger 24 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

WHAT IT MEANS FOR YOU

WHY IT AFFECTS YOUR COMPANY

The Government created the Corporate Manslaughter Act four years ago to improve the chance of prosecuting companies involved in accidents resulting in the death of staff or third parties.

Company directors can now be fined and even sent to jail for safety failings.

The car is a place of work. That means it is subject to the same Heath and Safety at Work Act legislation as the office.

Also, if your staff have a crash, not only does it affect bottom line costs, but also employee productivity (time off work) and company image.

is just as important as keeping them from being the cause of accidents.

Industry statistics have revealed that car and van drivers who cover 25,000 miles a year as part of their job have the same risk of being killed at work as coal miners. Work-related driving is one of the biggest single causes of all reportable accidents.

But what can be done? Resource is a critical concern for small businesses, so sparing the people and time to get something done can be a problem.

However, small changes can provide a stepping stone approach to accident and cost reduction that will save tens of thousands of pounds in the long-run. Even avoiding a single accident could prevent a hike in insurance costs, hours of lost working time and potential damage to your company’s reputation.

Across the UK, the benefits are slightly bigger. In 2000, the Government estimated the costs to employers arising from ‘at-work’ road traffic accidents were in the region of £2.7 billion a year.

Here is a five-step programme, implemented in small stages over two years, that could save your business money – and in some cases save lives.

SO, WHAT DO YOU DO NOW?

IMMEDIATE

�

Arrange a face-to-face meeting with all staff and explain that you have their welfare in mind and you are thinking of introducing a driver development programme (note, not driver training – you have to acknowledge that they have a licence and can legally drive). Emphasise this isn’t about apportioning blame, but protecting people.

Start measuring and obtaining data, such as crash frequency, cost and number of employees affected. Your insurance company may be able to help here.

ONE MONTH’S TIME

�

Send around a fuller explanation of your long-term plans. Start setting out a driver safety policy, covering use of company vehicles and issues such as speeding, mobile phone use, drink/drugs and vehicle use. Begin a process of instigating formal electronic licence checks with the DVLA. Paper licence checks don’t show up hidden convictions and many companies have discovered employees are driving when they shouldn’t be.

WHAT HAPPENS IF YOU DO NOTHING? The ultimate penalty under the Corporate Manslaughter Act is jail for the company directors. More likely, though, is an unlimited fine.

You will have to publicise the fact that your firm has been prosecuted and face the impact on business that such negative publicity will cause.

SIX MONTHS’ TIME

�

You have established that your drivers are legal to drive. Aim to have all your driving-related policies established by now and to have gathered together all the insurance data so you have incident history for all your drivers. Implement online risk assessments and prioritise further support, potentially including on-road training, only for those who are flagged up as really needing it.

ONE YEAR’S TIME

�

Arrange a driver safety workshop. It is vital to have the support of senior management to prove it is in the company’s culture to take safety seriously. Just by making drivers aware of the issue’s importance, you can change how they behave.

TWO YEARS’ TIME

�

Re-examine all incident claims data and assess the impact of your programme.

Even if incidents have reduced there may be a pattern that can be addressed by arranging specific training.

FACTFILE n In 2010, where a journey-type was stated, 52,000 cars and vans were involved in accidents while being driven for work or commuting.

As a result, 540 people were killed, including drivers, vehicle occupants, pedestrians and other road-users.

5,281 were seriously injured and nearly 50,000 slightly injured. n Light goods vehicles were involved in 12,242 accidents in 2010.

These accidents resulted in 169 fatalities, 1,666 serious injuries and 15,106 slight injuries.

Source: DFT

NEED MORE HELP? n Peak Performance for driver development advice: www.peakperformance.net n Driving Business for best practice guidance: www.mydrivingbusiness.co.uk n Royal Society for the Prevention of Accidents: www.rospa.co.uk n Driving for Better Business for case studies: www.drivingforbetterbusiness.com

Source: Peak Performance/Sewells Research & Insight

mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 25

It’s all about you.

Your way, your choice for your fleet.

Maximising uptime is essential to fleet productivity and profitability.

So speak to the fast-fit specialist who has the know-how to keep your vehicles rolling 24/7.

At ATS Euromaster we offer: • Complete fleet solutions, tailored to your needs • The UK’s largest mobile tyre fitting fleet • 24/7 roadside rapid response for commercial vehicle tyre-related breakdowns • Scheduled vehicle servicing, maintenance & MOTs • Competitively priced premium, mid-range and budget tyres • Local service centres, nationwide

For more information call 0870 066 3624 or visit www.atseuromaster.co.uk

Put us to the test

Telecommunications brings you closer to customers and staff without ever leaving your desk, helping you to...

STAY IN TOUCH WHY TAKE ACTION? Roads are becoming more congested; the price of fuel is going up. But many meetings do not need to take place face-to-face. This is where telecommunications – video, telephone and internet conferencing – comes in. It enables you to stay in touch with customers at a fraction of the cost of visiting them.

T

also offers video conferencing, suggests that clients primarily use audio conferencing.

“For daily meetings and runof-the-mill conversations audio is sufficient,” he says.

CG offers services where callers pay for their own calls, or toll-free services which are invoiced to the host company.

Although you can share data through free online services, including Google documents, video conferencing comes into its own when people want to share presentations or work through spreadsheets with full and high-quality visibility.

Video conferencing has become a growth market for two reasons: the development of HD and the relative cheapness of bandwidth. ▲

By Louise Cole eleconferencing and video conferencing are still underused by smaller companies, where one-to-one calls and face-toface meetings remain the norm.

However, the return on investment can be very fast, whether you are replacing regional, national or international meetings, once you consider the cost of fleet and fuel, or alternative travel, accommodation, subsistence and lost employee time.

Teleconferencing is an accessible business option with countless service providers offering low-cost solutions on a dial-in basis.

Jon Appleton, MD of Conference Genie, (CG) which

mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 27

KEY BENEFITS

CASE STUDY: BRITISH TELECOMS

Telecommunications reduces unnecessary travel, which reduces your fuel bill. Staff become more productive as they spend less time in traffic jams and more time at their desk.

Decisions can be taken more quickly as key stakeholders can more easily free up diary time. It all points to bigger profits.

▲

For relatively small monthly sums you can get internet more than capable of sustaining good quality real-time video streaming.

The market is moving strongly towards the simplest solution: personal desktop conferencing.

Solutions work within a web browser, needing no hardware or software beyond webcam and speakers.

“For £200 a year you can have video conferences with up to 10 people per call anywhere in the world,” Appleton says.

Skype is also a simple, free form of internet-based video conferencing. Why then do people pay? Because paid for services, often up to £30-40 a month, will use open interfaces which allow you to connect with users of other systems.

The next two stages of video conferencing are room-based – which typically allows several people to be displayed on one 50-inch HD screen and data on another. It costs £10,000 upwards for infrastructure and then a monthly service charge of around £100 a month.

EyeNetwork brokers rooms across the world to allow companies without their own space to video conference.

Its MD Lisa Honan says this is frequently used for recruitment or by court services for remote testimony.

The final level of video conferencing, often costing £100,000-plus is immersive, where other ‘attendees’ appear as though seated at the same table. Impressive yes, but an unnecessary expense too far for most companies.

Keith Gyford, MD of First Connections, says return on investment for video conferencing is remarkably fast if companies choose the right kit which is then used, rather than stowed in a cupboard.

“ROI is typically three to four months. One government body saw ROI in 20 days, despite all its travel being within the UK. One private company in Europe made its money back in one meeting, once it had added up the cost of travel, accommodation and food,” he says.

WANT TO KNOW MORE?

www.eyenetwork.com www.firstconnections.co.uk www.conferencegenie.co.uk www.btconferencing.co.uk

28 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

BT, a supplier of commercial conferencing products, saved 11 million kms and 2,800 tonnes of CO2 for company travel through conferencing technology and flexible working. In 2011, its audio and video conferencing increased 27%.

BT uses teleconferencing to manage and support its 9,400 home workers, including its Openreach engineers.

These and other efficiency measures, between 2007 and 2009, have cut its commercial vehicle mileage by 9.5%, and fuel consumption by 10.8%.

Sales of its conferencing services to companies, says BT, have saved 53,000 tonnes of CO2 and helped customers avoid 717,000 face-to-face meetings over a 12-month period.

On average, companies are saving £256 in travel costs per meeting which equates to a total saving of £180m.

“

One government body saw return on investment in 20 days, despite all its travel being within the UK

”

Advertisement feature

Budget tyres could be a false economy

I

t’s been four years since the start of the economic downturn and for most there are no signs of an imminent change of fortune.

However, the fleet team at Michelin has noticed a change of priorities among decision makers.

Head of fleet Dave Crinson explains: “In the months after the recession was announced, many businesses made knee-jerk decisions to cut costs.

“We had many conversations with our customers about price, and a few who were under real pressure to show savings and reduce outlay chose to swap their tyre fitment from our tyres to budget alternatives.

“Now things have settled down we are finding that fleets are taking a more long-term look at their finances and some of those customers who changed tyre policy have found that using budget tyres proved a false economy.

“They have told us that the savings they made Dave Crinson: when they bought the tyres have not paid off as ‘Michelin is the the tyres have not lasted as long and have not best option for fleets’ offered the same fuel savings.

The reduced on-road performance has also been noted and we have welcomed back several customers.” tyres will need replacing and provide cost He added: “It is unfortunate that we are all per mile calculations to help customers make getting used to the tough economic situation, but better informed future tyre purchases. people are more confident now about making Crinson adds: “Every Michelin customer has more strategic decisions about their tyre policies. their own account manager who ensures they “Our tyres will never be the have the best tyres for their cheapest at the till because of fleet, and who also offers the levels of technology, advice and business support. research and development that “But at Michelin we are goes into making them, but we keen that everyone is able to are confident that the wholelife make informed decisions about cost of a Michelin tyre is the best their tyres. option for fleets.”

“Tyre Manager is a really In addition to helping its own useful tool for individual Dave Crinson, customers, Michelin is offering motorists as well as small and head of fleet, Michelin all consumers an opportunity medium-sized enterprises that to make use of its online tool, the new Michelin perhaps don’t have a dedicated fleet manager.

Tyre Manager.

“It’s simple to use, it works for all makes of tyres By entering details on www.mymichelin.co. and helps raise driver awareness of the imporuk/tyre-manager drivers and fleet managers tance of checking tyres on a regular basis. This can track how their tyres are wearing. not only contributes to improved safety, but can Sophisticated software will predict when also help reduce fuel consumption.”

“We are confident that the wholelife cost of a Michelin tyre is the best option for fleets”

Win the new iPad To mark the first issue of Driving Business, Michelin is offering a new iPad to one lucky reader.

To enter the free prize draw please send your name, company name, preferred contact email address, size of fleet, and details of whether your vehicles are owned or leased to Michelin– contact@uk.michelin.com with the subject ‘Michelin Fleet iPad Competition’.

Closing date for entries is 5pm on Friday, May 4, 2012. Only one entry will be accepted per person.

The winner will be notified by email. No cash alternative will be offered.

By providing your preferred contact email address you are agreeing to be contacted by Michelin Tyre PLC in the future via email. We will never share your data with third parties outside the Michelin Group and you can opt out of receiving further communications.

To find out how Michelin can help call 0845 366 1590, email us at michelin-contact@uk.michelin.com or visit us online at www.michelin.co.uk

BECLSAT SS

FAMILY HATCH

IN

We’ve looked at diesel versions of some popular company cars for the criteria you should consider before you decide to offer them to your drivers. For more models, go to www.mydrivingbusiness.co.uk

VAUXHALL ASTRA 1.7 CDTI ECOFLEX EXCLUSIV Key reason to buy: High quality product with widespread dealer network.

Best for: Only car in this group with CO2 emissions below 100g/km.

AUDI A3 SPORTBACK 1.6 TDI SE Key reason to buy: Practicality with a premium badge.

Best for: Arguably the best looking car in this group.

THE PURCHASE PRICE

The Nissan Qashqai stands out as the best performer for lease rates. Leasing rates at three years/60,000 miles, with maintenance. Best quote taken from www.comparecontracthire.com.

30 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

The Focus seems good value here, while the Astra shows the cost of the fuel-saving technology fitted to this engine variant. The higher-priced Qashqai could work out cheaper than some models here.

NISSAN QASHQAI

FORD FOCUS

✪✪

BMW 1 SERIES

18,000

£18,540

✪✪✪

AUDI A3

18,500

£19,840

VW GOLF

19,000

£20,045

VAUXHALL ASTRA

19,500

£20,140

FORD FOCUS

20,000

£20,060

VW GOLF

✪✪✪✪

20,500

£291 VOLKSWAGEN GOLF

NISSAN QASHQAI

FORD FOCUS

200

AUDI A3

250

BMW 1 SERIES

£288 £284

VAUXHALL ASTRA

300

21,000

BMW 1 SERIES

£320

£310

✪✪✪✪✪

£21,140

VAUXHALL ASTRA

21,500

£334

AUDI A3

350

DRIVER APPEAL

NISSAN QASHQAI

THE LEASING PRICE

✪

The BMW offers the most rewarding drive for enthusiasts, while the Focus is also a great performer on the road. The Volkswagen badge remains attractive to company car drivers.

HBACKS NISSAN QASHQAI 1.6 DCI ACENTA STOP-START

Key reason to buy: Stands out and has strong residual values.

Best for: Practicality and SUV-like driving position.

FORD FOCUS 1.6 TDCI ZETEC Key reason to buy: Great to drive, low fuel consumption from standard engine.

Best for: Hi-tech safety kit is affordable and accessible.

BMW 116D ES Key reason to buy: Rear-wheel drive handling engages the driver.

Best for: Strongest residual values in the sector.

VOLKSWAGEN GOLF 1.6 TDI MATCH Key reason to buy: Image is popular with drivers.

Best for: The best package for driver and company.

MAINTENANCE COSTS

The Astra is the only car here to break the 70mpg barrier in the official test cycle. Although this might not be representative of real-world driving, it’s a good way of benchmarking these rivals.

£22,032

The Ford Focus is king when it comes to low maintenance cost with routine servicing, wearand-tear items and typical repairs costing £1,650 over three years/60,000 miles.

FORD FOCUS

£19,128

£20,478

VW GOLF

£19,362

VAUXHALL ASTRA

19,000

£19,950

NISSAN QASHQAI

19,500

BMW 1 SERIES

20,000

AUDI A3

20,500

1,600

£1,650

21,500 21,000

VW GOLF

1,700

VAUXHALL ASTRA

£1,800

1,800

FORD FOCUS

£1,848 £1,824

£1,872

£21,774

1,900

BMW 1 SERIES

62.8

22,500 22,000

AUDI A3

VOLKSWAGEN GOLF

2,000

NISSAN QASHQAI 62.8

62.8

67.3 FORD FOCUS

60

AUDI A3

65

BMW 1 SERIES

68.9

70

VAUXHALL ASTRA

74.3

75

RUNNING COSTS £1,998

NISSAN QASHQAI

FUEL ECONOMY

The BMW 116d ES is the least expensive to run over three years/60,000 miles thanks to high resale values. All cost figures taken at three years/60,000 miles. Source: KeeResources. mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 31

BECLSAT SS

COMPACT VANS

IN

We’ve looked at some of the most fuel-efficient compact vans on sale and at the criteria you should consider before you decide to offer them to your drivers. For more vans go to www.mydrivingbusiness.co.uk

VAUXHALL CORSAVAN 1.3 CDTI START/STOP ECOFLEX Key reason to buy: Car-like driving feel.

Best for: Lowest fuel consumption and CO2 emissions.

PEUGEOT BIPPER 1.3 HDI 75 SE STOP & START EGC Key reason to buy: Low CO2 comes with the convenience of automatic transmission Best for: Fuel efficiency and CO2 emissions along with Citroën Nemo.

THE PURCHASE PRICE

The Fiat, Peugeot and Citroën are basically the same product built by Fiat but the Fiorino, which has lower prices than the Bipper and Nemo, is even more attractive in this non-stop-start variant.

32 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

11,000

Although you can buy a version of the Nemo and Bipper with a standard manual gearbox, the entry-level Fiorino illustrates that paying extra for technology might not deliver benefits.

550kg 500kg 450kg

FIAT FIORINO

VAUXHALL CORSA

PEUGEOT BIPPER

FORD FIESTA VAN

FIAT FIORINO £11,095

11,200

CITROËN NEMO

11,400

610kg

600kg

493kg

£11,815

11,800 11,600

660kg

650kg

FORD FIESTA VAN

660kg

12,000

£246

700kg

550kg

£12,105

PEUGEOT BIPPER

£12,165

VAUXHALL CORSA

PAYLOAD £12,200

CITROËN NEMO

12,200

VAUXHALL CORSA

FIAT FIORINO £231

£235

£244

230

240

CITROËN NEMO

250

FORD FIESTA VAN

£259

260

PEUGEOT BIPPER

THE LEASING PRICE

The Nemo and Bipper tie for load lugging ability, and the ones selected here have very similar specification. The Corsavan and Fiesta van are derived from cars and have a smaller payload.

FIAT FIORINO VAN CARGO BASE 1.3 MULTIJET DIESEL 75 Key reason to buy: Entry-level van has attractive list price and still fuel efficient.

Best for: Lowest monthly lease rate.

FORD FIESTA 1.6 HDI ECONETIC Key reason to buy: Nippy around town and strong performance.

Best for: Performance and driver appeal.

CITROËN NEMO 1.3 HDI 75 EGS STOP & START 660 Key reason to buy: Payload and cube practicality.

Best for: Fuel efficiency and low emissions along with the Peugeot Bipper.

The slippery shapes of the car-derived vans reap rewards for fuel economy but the advantage of electronic manual gearbox technology on the Bipper and Nemo over the Fiorino is just 1.6mpg.

12,500

£12,640

FORD FIESTA VAN

FIAT FIORINO

13,000

£1,265

Vauxhall’s Corsavan scores another win here, ensuring it’s the least expensive of this group to maintain over three years/60,000 miles. All cost figures taken at three years/60,000 miles.

£13,494

13,500

£12,550

PEUGEOT BIPPER

1,200

£1,431

PEUGEOT BIPPER

1,300

FIAT FIORINO

65

1,400

FORD FIESTA VAN

£1,412

£1,468

VAUXHALL CORSA

£13,687

1,500

VAUXHALL CORSA

14,000

1,600 £1,535

VAUXHALL CORSA

PEUGEOT BIPPER 68.9mpg

67.3mpg

FORD FIESTA VAN

FIAT FIORINO

76.3mpg

68.9mpg

70

CITROËN NEMO

75

78.5mpg

CITROËN NEMO

80

RUNNING COSTS

£13,188

MAINTENANCE COSTS

CITROËN NEMO

FUEL ECONOMY

The Fiesta van is the cheapest on overall running costs, but buyers must ensure it’s appropriate for their needs or whether a cube van such as the Bipper, Nemo or Fiorino would be more suitable. mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 33

Peugeot 208

COMING SOON...

The new models you need to know about for the next 3 months Peugeot is already making big claims for its new little car, promising a revolutionised driving experience thanks to... a small steering wheel. Yes, in introducing the 208 late last year, the company claimed that it “has not hesitated to re-write the rulebook” for a car that is “a true break from what has gone before”.

The replacement for the 207 has, we’re told, a cabin with an unusually small wheel and an elevated instrument panel, with the former making the car feel extremely agile and the latter contributing to clarity, safety and ease of use. The styling isn’t groundbreaking, owing a lot to the bigger 308 in profile, but

PEUGEOT 208 On sale: Spring

LEXUS GS On sale: June

The new Lexus GS needs to leap forward a considerable distance if it’s to match the sales of any of the BMW 5 Series, Audi A6 or Mercedes-Benz E-Class. And, frankly, it doesn’t bode well with the news that only two versions will come to the UK, at least to start with: the GS 450h hybrid and the GS 250, both featuring V6 petrol engines. No diesel, and in a segment where sales go largely to diesels. The GS 450h will break 40mpg and have CO2 lower than 150g/km while boasting a sub six-second 0-62mph sprint – but that’s in a segment in which the BMW 520d EfficientDynamics returns 62.8mpg and 119g/km. Different, yes; cost-effective, perhaps not.

34 ❚ Spring 2012 ❚ mydrivingbusiness.co.uk

it’s much prettier and, more importantly, Peugeot has dramatically improved fuel economy and CO2 emissions: on average, 34g/km lower than the 207 model-for-model.

The lowest-emitting diesel version puts out 87g/km of CO2 and returns 83.1mpg, while a new range of three-cylinder engines means the most parsimonious petrol version also dips below 100g/km and achieves 65.7mpg.

In a break from new car tradition, the 208 is actually smaller than the 207, though impressively, it still offers significantly more rear passenger space and a slightly bigger boot. It’s lighter, too, which contributes to improved driveability and economy.

KIA CEED

On sale: June

The next-generation Ceed will be another big step forward toward the Volkswagen Golf in a number of ways. Based on the platform of the new Hyundai i30, as before, the new family hatch will offer lower emissions, cheaper fuel costs, improved refinement and striking styling compared with its predecessor.

Kia’s class-leading seven-year warranty will make it even more attractive. For the first time, the Ceed will slip below the 100g/km threshold with an EcoDynamics version, linking start-stop to a 1.6-litre diesel engine with 126bhp.

Seemingly in development for decades, the ground-breaking Vauxhall Ampera will finally go on sale this year, almost two years after the mechanically-identical Chevrolet Volt hit US showrooms.

It’s ground-breaking because electricity drives the wheels and the car can be plugged in to charge, like a Nissan Leaf, but there’s an on-board petrol generator that can power the battery, hence Vauxhall terming it a ‘range extended electric vehicle’.

The idea is to overcome so-called ‘range anxiety’, which is one of the primary reasons (beside cost) preventing the proliferation of electric cars. The Ampera’s petrol motor need never be tapped into – the car has a 25 to 30-mile range on a full battery charge – but it can be resorted to for longer journeys.

There’s no official fuel economy figure yet – the car’s unique modus operandi makes that difficult to establish like-for-like with conventional cars – but Vauxhall claims 175mpg and 40g/km of CO2.

Despite looking like an Insignia, the fourdoor saloon is closer to an Astra in terms

T O Y O TA GT86 On sale: June

of interior space and cargo capacity – it has a 300-litre boot. The cost, however, is distinctly higher than the average family car – that technology doesn’t come cheap.

Despite qualifying for the Government’s £5,000 plug-in car grant, the P11D figure will still use the car’s pre-discount figure of £34,995.

Driving the Ampera is unlike anything else, naturally. As the motor does not drive the wheels, its revs do not match the road speed as with a normal car, meaning it’s not linked acoustically to accelerator movement.

Incongruous engine sound aside, the Ampera is actually an impressive car, blending a futuristic panel display with a general layout that will be familiar to anyone that’s been in an Insignia or Astra.

Quality is on par with those, too.

Hardly a typical company car, but the GT 86 is by far the most exciting road car Toyota has come up with for years.

A rear-wheel drive sports car designed and built in conjunction with Subaru, the GT 86 has a 197bhp 2.0-litre ‘boxer’ engine, but is built more for handling prowess than outright speed. Compact dimensions and low weight mean it should make corners interesting, while 40mpg is mooted.

FORD B-MAX

On sale: Spring

VA U X H A L L AMPERA On sale: Summer

Effectively replacing the dull Fusion, Ford’s stylish B-Max small MPV provides tall accommodation for five.

Sliding rear doors and, uniquely, no B-pillar, mean a gaping side opening for easy cabin access. The stylish C-Max MPV inspires the looks, while the interior boasts chairs that fold flat at the touch of a button . The range is set to kick off with a new threecylinder 1.0-litre turbo petrol engine.

mydrivingbusiness.co.uk ❚ Spring 2012 ❚ 35