DRIVING
Issue 2017 £4.50 Issue20 19 Summer Spring 2017
Helping you make better decisions
THE NEW BMW 5 SERIES SALOON.
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DRIVING
Issue 20 Summer 2017 £4.50
Helping you make better decisions
7 FUEL CHOICES But which is right for your business? We help you decide
STOP MORE BREAKDOWNS Telematics trial finds 38% of issues preventable
❚ Ford Fiesta ❚ Kia Stinger GT ❚ Nissan Qashqai ❚ Peugeot 5008 ❚ Seat Ibiza ❚ Vauxhall Insignia Sports Tourer ❚ Volkswagen Arteon ❚ Volvo XC60
ELECTRIC VANS WORK FOR OUR BUSINESS How Farmdrop has overcome EV challenges and saved money
out of office
but not offline
T H E N E W V O LV O V 9 0 WITH SENSUS CONNECT Your professional goals demand you get the most from every moment. Sensus Connect brings your digital world to your car, meaning the office is always at your fingertips.
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CALL THE VOLVO CAR BUSINESS CENTRE ON 0345 600 4027 OR VISIT VOLVOCARS.CO.UK/BUSINESS
Fuel consumption and CO2 figures for the Volvo V90 range in MPG (I/100 km): Urban 49.6 (5.7) – 54.3 (5.2), Extra Urban 62.8 (4.5) – 68.9 (4.1), Combined 57.6 (4.9) – 62.8 (4.5). CO2 emissions 129 – 119g/km. MPG figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results.
Contents
ISSUE 20 Summer 2017
FRONT END
6 Prepare for ‘toxin taxes’ Plans to clean up the air in big cities need to be understood and acted on by businesses big and small.
7 New tax rules ‘a challenge’ Employers will struggle to comply with new rules on salary sacrifice and car/cash, a tax expert warns.
9 Preventable breakdowns The AA’s telematics app to be rolled out after showing it can predict one in three faults before breakdown.
11 Opinion Recent anti-diesel measures are muddled, disjointed and shorttermist, writes Run Your Fleet’s Craig Pullen.
BROADER VIEW
Farmdrop
12 ‘We are EV to stay’
� 12
London-based food delivery company Farmdrop explains why it will never switch to diesel.
FUEL CHOICES
19 Choose the right fuel
� 19 Fuel choices
Petrol, diesel, electric, hydrogen, LPG – which one makes the most sense for your business?
COMING SOON
26 Coming soon A look at some of the cars hitting the market this year.
�26
Cars coming soon mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 3
The
Lombard Vehicle Solutions product
Will the engine of your next vehicle whirr or purr? Technology in the vehicles we drive is advancing, and the rise of Ultra Low Emission Vehicles may bring about the biggest change in generations. With so many different fuel options, it’s easy to get lost when picking your next vehicle. Lombard Vehicle Solutions has been at the forefront of Alternative Fuelled Vehicle adoption, and is ready to advise on the options to suit your needs, from sticking with the latest diesels to embracing a full electric vehicle – we can offer a wide range of leasing options that suit your needs, from a single vehicle to your entire fleet. Security may be required and product fees may apply.
www.lombardvehiclesolutions.co.uk enquiries@lombardvehiclesolutions.co.uk
Tel: 0117 908 6490
Lombard Vehicle Solutions is a contract hire and fleet management product provided by ALD Automotive Ltd, trading as Lombard Vehicle Solutions, Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA. ALD Automotive is registered in England No. 987418.
DRIVING
Helping you make better decisions
Contact us Driving Business, Media House, Lynch Wood, Peterborough PE2 6EA. Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Editor Sarah Tooze 01733 468901 sarah.tooze@bauermedia.co.uk News editor Gareth Roberts 01733 468314 gareth.roberts@bauermedia.co.uk Features editor Andrew Ryan 01733 468308 andrew.ryan@bauermedia.co.uk Staff writer Matt de Prez 01733 468277 matt.deprez@bauermedia.co.uk Contributors Simon Harris and Craig Pullen Production Head of publishing Luke Neal 01733 468262 Designer Erika Small 01733 468312 Production editors David Buckley 01733 468310 Finbarr O’Reilly 01733 468267 Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468327 Kerry Unwin 01733 468578 Katie Lightfoot 01733 468338 Advertising Commercial director Sarah Crown 01733 366466 Group advertisement manager Sheryl Graham 01733 366467 Account directors Sean Hamill 01733 366472 Lisa Turner 01733 366471 Stuart Wakeling 01733 366470 Account managers Liam Sancaster 01733 363219 Karl Houghton 01733 366473 Kate Atkinson 01733 363218 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Jane Hill 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan Subscriptions: subscription@mydrivingbusiness.co.uk Printing: PCP, Telford. © 2017 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.
Welcome Have you thought twice about ordering diesel vehicles in the light of recent bad press? Well, before you switch to petrol it might pay to take a closer look behind the headlines. Many reports have been guilty of lumping all diesel engines together and branding them ‘dirty’. Yes, it’s true that diesel engines produce more NOx than petrol engines and that is a concern for air quality and public health which needs addressing. But not all diesel engines are the same. The latest Euro 6 diesel engines emit significantly lower NOx than older ones and, in fact, are classed as low emission for the forthcoming Ultra-Low Emission Zone in London (ULEZ – see page 6). We would hope that any diesel scrappage scheme or Clean Air Zone that is introduced would also exempt Euro 6 diesels. So the traditional advice remains: match the fuel type to the vehicle’s use. Drivers clocking up lots of motorway miles are typically better off in the latest diesel models but lowmileage drivers, especially those doing urban journeys, could suit petrol, hybrid and even fully-electric vehicles. Our feature on pages 19-22 gives an overview of the options. If you do want to dig a little deeper, have a look at real-world mpg data, supplied by Equa Index, on our sister website: fleetnews.co.uk/equa-mpg. The Equa Air Quality Index could also prove enlightening. In addition, pay attention to the used car market and the values that vehicles with different fuel types are achieving. All that said, it’s important to consider your type of business when choosing a vehicle. Online food delivery company Farmdrop (see pages 12-15) decided it wanted a zero-emissions fleet to match its ethos. As is often the case with business vehicles – there is no single approach that will be right for all.
Sarah Tooze Editor, Driving Business
Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www.ipso.co.uk) and endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to contact us about editorial complaints and IPSO’s contact details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.
mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 5
n F RO N T E N D
Businesses should prepare for toxin tax measures Businesses that have cars and vans should “act now” if they want to avoid being hit with toxin taxes aimed at improving air quality. The warning comes after Mayor of London Sadiq Khan revealed plans to charge the most polluting vehicles entering the capital and as the Department for Environment, Food and Rural Affairs (Defra) considers schemes for the rest of the UK. Details of the schemes will be set out in the Government’s air quality plan, a draft of which was due to be published on May 9, with the final policy set for release on July 31, after the high court ruled the Government could not postpone it until after the general election. At the time of going to press it was not known whether the Government would appeal the court decision. Khan has already confirmed the £10 T-Charge (toxicity charge) will start this October. He is now proposing that this will be replaced by the world’s first Ultra-Low Emission Zone (ULEZ) in April 2019, following
a public consultation he launched last month. The ULEZ will cover the same area as the existing congestion charging zone. Petrol vehicles that do not meet Euro 4 standards and diesel vehicles that do not meet Euro 6 standards will have to pay a ULEZ daily fee (£12.50 for cars, vans and motorbikes; £100 for buses, coaches and HGVs) to drive in the zone, 24 hours a day, 365 days a year. The total cost, with the congestion charge added (during the times of day it is applicable),
for motorists with non-compliant cars would be £24 a day. Khan is also proposing to expand the ULEZ across Greater London for heavy diesel vehicles, including buses, coaches and lorries, in 2020, and as far as the North and South Circular roads for cars and vans in 2021. John Chuhan, chief risk officer at leasing company Alphabet, warned businesses not to assume it is a “London-centric issue”. He said: “UK businesses, whether they are large corporates or SMEs, need to act now to ensure they are prepared for the drastic changes demanded by the sustainable, low-emission future of transport. Simply ignoring the matter won’t make it go away and waiting until 2019 will be too late.” Chuhan urged companies to begin reviewing business travel, company car and van policies now. They need to understand vehicle journey patterns for both private and business usage and put plans in place to convert their existing fleet to ultra-low emission vehicles where appropriate, as well as consider the provision of a charging infrastructure. The Government has previously committed to introducing five Clean Air Zones (CAZs), outside the ULEZ proposed for London. Birmingham, Leeds, Nottingham, Derby and Southampton are required to have a CAZ in operation by 2020. However, Andy Eastlake, managing director of the Low Carbon Vehicle Partnership (LowCVP), believes as many as 35 cities could be given the go-ahead to target diesel vehicles. He urged businesses to pay attention to the air quality plan and to the Autumn Budget which looks likely to contain further measures to tackle air pollution.
Hitachi appoints Chris Tubbs to key SME role Hitachi Capital Vehicle Solutions has appointed Chris Tubbs as head of its SME and personal leasing channel. He joins Hitachi Capital from Network Vehicles, LeasePlan’s specialist brand of network franchisees providing leasing products for small businesses and individuals, where he held the position of brand director. He was with the company since 1996.
Government pledges to continue grants for plug-in vehicles and home chargers Buyers of ultra-low emission vehicles and home charging points will continue to get support, the Government has announced. Buyers will continue to benefit from up to £4,500 off the cost of an electric car, up to £2,500 off a hybrid and receive £500 towards the installation of a charge point in their home. Transport minister John Hayes said: “The number of ultra-low emission vehicles on our roads is at record levels and our renewed support for these exciting technologies is yet another significant milestone.”
6 ❚ Summer 2017 ❚ mydrivingbusiness.co.uk
DVLA and DVSA aim to improve road safety and digital access
Complying with new tax rules will be a ‘real challenge’ for employers Employers will struggle to comply with new tax rules for car salary sacrifice schemes and car or cash allowance programmes, according to Dan Rees, associate director, Deloitte Car and Mobility Consulting. With the final legislation published less than three weeks before the new rules’ launch in April, Rees told delegates at an ICFM masterclass: “There is likely to be widespread non-compliance, especially in the first year.” With the burden of responsibility for correctly reporting benefits for tax purposes falling to employers, and ultimately individual taxpayers, he urged employers to get processes in place to track employees with the relevant parameters to facilitate correct benefit reporting. Those employers who currently payroll car benefit, as opposed to reporting via P11D, have an immediate requirement to get their processes in place for new joiners. Furthermore, with the changes affecting
what are known as optional remuneration arrangements (OpRA), being introduced so rapidly, affected employees were warned that they could face a delayed tax burden through an increased tax code in 2018/19. This is because there is no official mechanism to report a higher salary sacrifice/cash allowance in 2017/18 until P11D submission in July 2018. Rees suggested employers advise employees to contact HM Revenue and Customs (HMRC) immediately if they believed they were affected by the rule changes, so that they could pay the right amount of tax during 2017/18. ICFM director Peter Eldridge added: “Every employer must look at the merits of car salary sacrifice and offering a car or cash option within the context of their own business and the marketplace in which they operate. It is clear that careful consideration is required, but make the right choices and both businesses and employees can benefit.”
The Driver & Vehicle Licensing Agency (DVLA) and the Driver & Vehicle Standards Agency (DVSA) have announced plans to improve road safety and access to digital services for businesses. The DVLA said it recognised that the business needs of corporate customers are often different and more complex than those of ordinary motorists. It also noted that commercial users avail of its services more frequently and often handle large volumes of transactions. As a result, it will look at introducing digital processes for commercial users to access its services as part of its three-year plan. Meanwhile, the DVSA’s five-year plan focuses on raising vehicle and operator standards and allowing the agency to become a digitally enabled organisation. More enforcement of dangerous vehicles and drivers, and enhanced MOT tests are at the heart of its plans for the next five years. The strategy aims to help the DVSA to ensure services such as MOT testing can adjust to new vehicle technology, such as driverless cars. It also acknowledges that driver training and testing will need to keep up with the kind of technology new drivers will be using.
Ensure your drivers are fit for the road Brake, the road safety charity, has published an essential guidance report to help businesses ensure their drivers are fit for the road. The new report, written in collaboration with Teletrac Navman, focuses on the impact of poor health on an employee’s ability to drive. Zari’aat Masood, professional engagement officer at Brake, said: “Ensuring the safety of your fleet goes further than vehicle maintenance: the person behind the wheel also needs to be fit for the road. This crucial guidance report highlights positive steps
companies can make to guarantee at-work drivers are safe behind the wheel.” By examining eyesight, stress, and fatigue, the guidance report is designed to aid managers in making drivers aware of the long-term effects of poor health and the risk they can pose to themselves, the company and other road users. The resource is available free of charge to all Brake Professional members through its website. Non-members can order it online from the Brake shop. mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 7
n FRONT END
w w w.mydrivingbusiness.co.uk mydrivingbusiness.co.uk
Telematics trial predicts one in three faults before breakdown, says The AA The AA is to launch a new plug-and-play telematics product, after a successful year-long trial prevented more than a third of vehicle issues becoming roadside breakdowns. The system monitors vehicle status, including fuel economy, driver behaviour and fault codes. Connected units were installed into the on-board diagnostics (OBD) ports of 10,000 member vehicles of a mix of customers and staff. While specific findings from the trial have been fed into The AA’s ‘known fixes’ and technical knowledge database, the ongoing benefit primarily comes from live reporting of fault codes, and the system’s direct link to The AA’s control and dispatch centre to rectify issues. It has discovered that if fault codes on certain vehicles are not addressed, they will lead to a breakdown within a short period of time. Gareth Adams, connected car manager at The AA, explained: “Since April 2016, we’ve generated a huge amount of data from the trial – everything from fault codes, to driver behaviour, and actual breakdowns. “What we’ve been doing in that time is analysing the correlation between the fault codes and breakdowns recorded by drivers on the trial. In about 38% of cases, we could see there was a fault code directly related to the breakdown.”
The top three faults in cars identified by The AA were with the ignition coil, exhaust gas recirculation (EGR) valve and mass airflow sensors. Knowledge of the specific problem then allows the driver to get any issue rectified swiftly, by reducing diagnostic time. The system has also allowed The AA to call drivers to give direction over the phone on how to clear their diesel particulate filter blockages. “We’ve identified several of these situations where there’s no cost to the driver to get these faults fixed. However, if they had left them unfixed it would have likely resulted in a call-out and/or repair,” said Adams. The AA sees the system as an opportunity to prevent and reduce ‘avoidable’ call-outs from using its patrols in an emergency. One popular feature is a battery drain alert that will send a push notification to a member if they’ve left their headlights on, once their battery has reached a certain level. Members who took part in the trial, via a smartphone app, have also reported a number
of the benefits of telematics. A third of users said the system helped them to save money on fuel, while 47% said the driver behaviour prompts had helped them to become a safer driver. The new product, called AA Car Genie, is available to AA members for £29 a year. The AA already offers a more traditional telematics package aimed at businesses, called AA Fleet Intelligence, which includes elements of the Car Genie package and starts from £14.99 a month.
Positive tests of The AA’s Car Genie mean it will be offered more widely
Job pressures ‘affect home life’ of 39% of van drivers Almost two fifths (39%) of UK van drivers say the stresses of the job have a negative impact on their personal lives, according to new research. The study, conducted by TomTom Telematics, found almost a quarter (24%) of respondents claimed daily job schedules ‘always’ put them under excessive time pressure, while a further 23% said it happened ‘regularly’. Half of drivers said time pressures resulted in turning up late for job appointments, while 23% were caused to speed or drive less safely and 17% cut corners or spent less time on jobs.
“Van drivers perform a crucial function within the British economy, but there is a danger they will not be able to fulfill this role effectively if they are forced to work under excessive pressure,” said Beverley Wise, director UK and Ireland at TomTom Telematics. “The stereotype of the reckless ‘white van man’ is an unfair one. Drivers appear to go to serious lengths to get the job done – to the extent their personal lives suffer – so it is clear they need appropriate support to operate as safely and efficiently as possible.” mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 9
the small car that means
BIG BUSINESS
SUZUKI IGNIS NOT JUST GOOD LOOKS Highly efficient 1.2 petrol engine ALLGRIP 4-wheel Drive option** Bluetooth and DAB radio as standard
CO2 from
MPG
BIK
65.7
18%
up to
97g/km
*
*
P11D
from
from
*
£10,054Ü
Navigation system with smartphone connectivity ÜÜ Cruise control and dual break support***
Find out more on 01908 336130 or visit cars.suzuki.co.uk/business Model shown Ignis 1.2 Dualjet SHVS SZ5 ALLGRIP petrol manual available at £14,249 on the road. Ignis range official fuel consumption figures in mpg (L/100km): Urban from 51.3 (5.5) to 57.6 (4.9), Extra Urban from 64.2 (4.4) to 70.6 (4.0), Combined from 60.1 (4.7) to 65.7 (4.3). Official CO2 emissions from 106g/km to 97g/km.
Fuel consumption figures are based on an EU test for comparative purposes only and may not reflect real driving results. **ALLGRIP models only. ***SZ5 models only. ÜÜSZ-T and SZ5 models only. *CO2, MPG and BIK figures quotes are for Ignis 1.2 Dualjet SHVS SZ5 petrol manual. ÜP11D figures quoted are based on Ignis 1.2 Dualjet SZ3 petrol manual. BIK figure based on taxation rates for 2017/2018 tax year. P11D value is the sum of RRP (plus VAT) excluding First Registration Fee (FRF) and First Year VED/VEP. Information correct at the time of going to print. Terms and conditions apply, see: cars.suzuki.co.uk/business
n F RO N T E N D
mydrivingbusiness.co.uk
OPINION
DIESEL IS HEADING FOR PARIAH STATUS
T
he diesel vehicle, following a string of bad headlines, and with an increasingly irate health and environmental lobby calling for its demise, appears to be heading for pariah status, usurped by cleaner, friendlier technologies. A number of blunt measures have already been implemented (at least two London councils have introduced diesel parking surcharges), with others proposed (a scrappage scheme; “toxin taxes” in the provinces, additional charges to enter London’s ultra-low emissions zone) but without a joined-up, national framework in place, we are at risk of causing confusion, and setting a series of consequences in motion. For example, say City X introduces a scheme banning all diesel vehicles older than 10 years from entering. City Y introduces a similar scheme, banning all diesel vehicles older than five years. For the sake of argument, say the average age of a car in the UK is seven years, with approximately seven million such vehicles falling into that age category. City X would let them in freely, but City Y would not. Used car buyers would need to choose a vehicle that would, or wouldn’t, let them into a city, as per their need. As for the owners of vehicles older than 10 years, they will be left with a vehicle disallowed in both cities. In all these cases, the values of the vehicles shift accordingly, depending on their congestion charge status and location. The only route into those cities for those without newer cars would be by public transport. Fine, if the public transport infrastructure is in place to support it. Bus services would need to increase, and if air quality is the problem, that’s not necessarily the solution. Many cities in the UK, particularly those in the North, have experienced a decline in fortunes recently. With fewer people visiting for shopping purposes, and a still increasing trend to make transactional purchases online or at out-of-town retail parks, further discouragement will only increase the decline. This isn’t too difficult to imagine; just look at your local town centre, and imagine what it would look like minus the people who had freely driven in. People who rely on older cars for their commute to work would also suffer. For those living in rural areas, without ready access to regular public transport, or those unable to upgrade to a car that is welcome in a city, their options regarding
employment would become increasingly limited. Congestion, unfortunately, is often a sign of economic activity. Blunt instruments, such as banning vehicles, without having a viable alternative are not conducive to economic growth. We are advocates of electric vehicles (I’ve driven more than 30,000 miles by battery power), and welcome the advances in technology and charging infrastructure of the past five years. Our company actively promotes their uptake, with the belief that anything that can be done to reduce the consumption of fossil fuels (as long as they are charged on a green supply) is a good thing. We do have a mounting air quality crisis, but the measures proposed and announced so far are the product of muddled, disjointed short-term measures that do not take account of the potential consequences. What is needed, and soon, is a coherent nationwide strategy, balancing air quality issues alongside the need for affordable mobility.
n CR A I G P U L L EN , HEAD OF O P ER AT I O NS , RU N YO U R F L EE T
FUEL DEBATE
“
The measures proposed so far are the product of muddled, disjointed, short-term thinking
”
mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 11
n BROADER VIE W
FARMDROP
‘Diesel would
be unthinkable’
Farmdrop operates an all-electric fleet, which suits its environmental ethos and saves money, but it has had to overcome challenges. Sarah Tooze reports
F
12 ❚ Summer 2017 ❚ mydrivingbusiness.co.uk
and goes through fewer touchpoints, such as consolidation points, distribution centres or stores. “It just comes here, gets picked and gets delivered to customers,” says Eaves. Farmdrop delivers in an area bounded by the North Circular and South Circular roads – essentially within a 10-mile radius of its hub in Southwark. “I have no doubt electric vehicles will develop greater range and therefore we might stretch that to 12 or 15 miles, but we won’t be driving into deepest Kent from London as other online providers do. We will always stick in the fairly densely populated urban areas,” says Eaves. Farmdrop plans to launch in Bristol in September with an eye on other cities, such as Manchester, Edinburgh and Birmingham, in future years. “We don’t feel the need to go out to the countryside because what makes the business model work is having customers in reasonable density and that enables us to pay producers the greater share of the retail price and make the whole thing sustainable,” explains Eaves. Using electric vehicles fits Farmdrop’s sustainable ethos. “It’s embedded in the culture of Farmdrop, so switching to diesel would be an unthinkable shift in terms of what Farmdrop stands for, both internally and for our customers. We’re EV to stay now,” he says. Matthews adds: “What’s been good about that is we’ve built everything. All of our delivery propositions and all the processes are built on the fact that we use electric vehicles, so it has been a lot easier than if you were using diesel and then you started to try to use electric vehicles.” Initially, Farmdrop outsourced its deliveries to Gnewt Cargo (featured in Driving Business Winter 2015), which has also built its business model on an entirely electric fleet. However, in April last year Farmdrop started delivering seven days a week and decided to bring it in-house to have more control over the customer experience. The day-to-day running of the 14 vans (up from eight in April 2016 and soon to rise to 20 as the business grows) is handled by Jonathan Stansfield, Farmdrop’s head of fleet, who previously worked as a HGV transport manager at Asda, with Matthews responsible for fleet strategy. “Electric is an interesting new area to be working in,” says Stansfield. “It has its challenges, but it has massive perks for us in terms of our Farmdrop brand.” The vans have animal livery (see ‘We couldn’t have white vans’ on page 15) and its drivers, who Stansfield recruits and manages, are known as ‘Farmdroppers’. “One of the things that has been really successful is our Farmdroppers love driving them,” says Eaves. “You’ve
▲
armdrop, a London-based online food delivery company that operates a 100% electric van fleet (14 Nissan e-NV200s) is, arguably, ahead of the curve. The business has used EVs since it launched in 2012, principally for environmental reasons, earning it Go Ultra Low Company status in July 2016 and a Fleet Hero award for Ultra-low Emission Fleet in November. Unlike other fleet operators, it did not have the headache of switching from diesel to electric – something Phil Eaves, its director of supply chain, believes more businesses will soon need to do. “I anticipate we’ll see a lot of operations moving to electric vehicles for multi-drop deliveries in central London. Not because of the environmental agenda necessarily for them, albeit it was quite a big one for us, but I think they will just end up being financially penalised [for operating diesel vehicles],” he says, referring to the planned introduction of the ultra-low emission zone (ULEZ) in the capital, which the Mayor of London, Sadiq Khan, wants to bring forward to 2019. Khan also recently announced that a £10 emissions surcharge (T-charge) for vehicles that do not meet Euro 4 standards – typically diesel and petrol vehicles registered before 2006 – will start in central London in October this year and has put forward his proposals for a national diesel scrappage scheme. Eaves and his colleague Gemma Matthews, head of operations, welcome any moves to remove older, more polluting vehicles from London’s roads. Farmdrop’s mission, says Matthews, is to “fix the food chain” by bypassing supermarkets so customers can buy directly from local producers, enabling both to get better deals. Deliveries are an important part of that mission. “Part of fixing the food chain is getting rid of diesel delivery vans because there are so many on the road, particularly in London, where we know there are massive air quality issues,” she says. Matthews calculates that Farmdrop saves about 33 tonnes of CO2 by running e-NV200s rather than diesel vans and they are 37% less expensive (taking into account the congestion charge saving of £11.50 per vehicle per day and electricity being cheaper than fuel). Farmdrop claims its food is five times fresher than food sold at supermarkets because it travels shorter distances
mydrivingbusiness.co.uk
Farmdrop’s Gemma Matthews and Phil Eaves want to ‘fix the food chain’ by using electric delivery vans
n FACTFILE Company Farmdrop Director of supply chain Phil Eaves Head of operations Gemma Matthews Head of fleet Jonathan Stansfield Fleet size 14 vans Funding method monthly rental Brand on fleet Nissan
“
Electric is an interesting new area to be working in. It has its challenges, but it has massive perks for us in terms of our Farmdrop brand Jonathan Stansfield, Farmdrop
mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 13
n BROADER VIE W
FARMDROP
▲
Only for photoshoots –3D effects on the vans, such as ears, tails and hen’s combs have been found to be fun, but impractical
got no gear changes, so to speak, you can just cruise along in peace. They drive really nicely and the drivers are very positive about being in them.” The vehicles are on monthly rental from Fleetdrive, as Farmdrop does not want to be tied in to long-term contracts or to own its vehicles when the electric van market is still developing. Matthews keeps abreast of the EV market through her involvement in LoCity – an industry-led programme to reduce the emissions of London’s freight and fleet operators, which launched last year. She sits on the van working group, which is made up of van manufacturers, fleet operators and charging companies, and meets every couple of months to discuss ways to break down barriers for other fleet operators to start using ultra-low emission vehicles. “I’m quite happy to speak to other companies that want to use ultra-low emission vehicles and about the challenges we have,” says Matthews. “We have spoken to councils to get them to change their vehicles and I think it’s really important to do that because we’re trying to lower emissions in London, and in general. It’s great that we’ve got 14 vans, but there is a lot more work that needs to be done.” Matthews and Eaves say they have faced challenges running EVs, including the lack of a market-ready refrigerated electric van, the size and range of the e-NV200, and problems with the public charging infrastructure. Farmdrop has had to adapt how it keeps food chilled, as a refrigerated electric vehicle would use too much energy, reducing its range as well as taking up precious space. “We’re delivering fresh food, so it needs to be kept at a chilled temperature. The solution for that is we use thermal packaging, so we don’t need to have a refrigerated van and it just helps the van travel further,” says Matthews. The e-NV200’s real-world range is about 70 miles and Farmdrop’s average route is 60 miles, meaning the drivers could risk running out of charge. However, Farmdrop uses route-planning software that enables it to set maximum mileages and ensure the vans don’t go beyond their range. Farmdrop also chose the software because its routes were logical, the system was easy to use and it had a driver app (although its Android developers are looking at building an app specifically tailored to its needs). Vehicles are charged overnight at the hub. Farmdrop had to upgrade its electrical infrastructure once it had more than 10 vans so it could charge them all simultaneously. During the day, there is gap in the drivers’ schedules to
n “WE COULDN’T HAVE WHITE VANS” Farmdrop’s in-house design team is responsible for creating the vans’ cow, pig and hen designs, with the wrapping itself outsourced to Auto Wrap. “They [the design team] wouldn’t ever let us drive around in a white van. It’s just not Farmdrop,” says Phil Eaves. However, the 3D effects, such as the ears and tail, have proved impractical for everyday use and they now “only exist for photoshoots”, according to Eaves. “Families have their photo taken with the vans,” he says. “They have become part of our brand.”
allow the vehicles to be rapid-charged, ready for afternoon deliveries, but this has not been without its challenges. The public charging network is “inadequate”, according to Matthews. “They [the rapid charging points] don’t often work and there are not enough of them,” she says. “Ideally, I would love to have route-planning software that recognises working rapid charging points.” Eaves adds: “It’s quite complicated. You can park diesel vehicles anywhere and go to the fuel station and off you go. “With electric vehicles, you need somewhere to park, but you also need somewhere to charge them. You need to be quite precise about that charging, because if you’re not there long enough they won’t be sufficiently charged to do the trip.” The other major challenge is the size of electric vans. Matthews says: “There isn’t that perfect vehicle that is big enough, with the right payload and the right range and that is under 3.5 tonnes. There are things starting to come to the market, but at the moment there is nothing on the market, readily available, that we could use tomorrow.” However, as soon as the right-size vehicle does become available, Farmdrop intends to change its fleet so it can fit more deliveries in one van. Driver training and telematics are also being considered. “The vast majority of our training is focused on the delivery experience. Little of it is focused on the vehicle,” says Eaves. “We could undoubtedly look to optimise that in the future because the greater the amount of charge a vehicle comes back with, the less amount of electricity needs to go in to charge it back up, which is cheaper for us, better for the environment, and charges faster. “Some drivers take quite a lot of pride in returning a vehicle with a huge amount of mileage, having been very efficient in the middle of winter. Others are a bit more inclined to put the heaters on and get home as fast as possible, so one of the things we have looked at doing is some performance-related incentives.” Farmdrop doesn’t rule out alternative fuels, such as hydrogen, if the technology and infrastructure develop (see ‘Which is the right fuel for your business’ on page 19). “Alternative fuels either still emit a level of emissions or are not commercially available, viable vehicles. They are still a science experiment frankly,” says Eaves. “We’re not closed to alternatives, but electric feels like the best viable option right now.” mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 15
THE UK’S LEADING DRIVE AND DECIDE EVENT 13-14 JUNE 2017
READY FOR ACTION MANUFACTURERS GET IN GEAR FOR CCIA 2017 The pad sits at the centre of CCIA, with an array of models set in a ring so every vehicle is within easy reach to take out on the challenging test routes. The closed roads of Millbrook are the perfect environment for testing, with purpose-built routes that are designed to help assess the performance of the latest models.
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he fleet industry is gearing up for CCIA 2017 with 16 manufacturers and a total of 26 key brands set to appear at the UK’s most important drive and decide event.
Together, manufacturers will bring around 300 cars for an exclusive test drive experience in a unique environment at Millbrook Proving Ground, Bedfordshire, on June 13-14 this year. At the heart of the event is the iconic ‘steering pad’, where fleet managers can choose from a wealth of the latest cars ready to receive their expert appraisal.
Decision-makers can choose from four unique road routes including a testing city circuit, high-speed oval, a challenging hill route and an off-road course. Each one is designed to leave a lasting impression, so fleet managers can get under the skin of each car and deliver a reliable, expert verdict on its suitability for choice lists. CCIA is the essential drive and decide event on the fleet calendar because it offers the widest range of choice, but also some of the most important new models which will define fleet choice lists in the coming years.
Manufacturers are still finalising their model lists for the event, including exclusive new models where details are still under wraps, but confirmed new test drives include the new BMW 5 Series, Mini Countryman, Seat Ibiza, Renault Captur, Vauxhall Insignia Sports Tourer and Crossland X. There are also scores of models making their CCIA debuts, giving hundreds of fleet operators their first chance to put them to the test.
To reserve your place at the drive and decide event of the year, visit www.companycarinaction.co.uk and secure your place behind the wheel of the latest fleet vehicles.
BMW/Mini
Fleets can cast a critical eye over the new BMW 5 Series, which recently received a glowing first drive in Fleet News. The model has been the benchmark for excellence since 1972, with more than 7.6 million sold around the globe, including more than 100,000 in the UK alone, with 60% going to fleets. In addition to the 5 Series, fleets can choose from models including the Mini Countryman and a range of plug-in hybrid models.
FCA Group
A packed line-up offered by Alfa Romeo, Fiat and Jeep includes the chance to take five of its key SUVs off-road. The Jeep Wrangler, Grand Cherokee Overland and Renegade will be joined by the Panda Cross and 500X Cross on the off-road course. On the steering pad, more than 20 models will be available to drive, including the critically-appraised Giulia in a variety of specifications and the Fiat Tipo which targets the heart of the company car sector.
Ford
Ford is the backbone of many of Britain’s fleets and the sheer breadth of choice available reflects its connection to the corporate sector. Key models available for test will include its growing SUV line-up covering the Kuga and Edge. For more rugged fleet roles, the Ranger pick-up is on offer. The commercial sector will also get a CCIA first drive of new automatic versions of the Transit, while the heartland of fleet operations is catered for with the Focus and Mondeo.
Infiniti
Records are tumbling at Infiniti as demand for its models rockets, with sales doubling at the start of this year, making it the fastest growing premium brand in the UK. Many of the models behind the brand's recent success will be at the show. These include the Q30, Q50, Q60 and QX30. The Q60 two-door coupe will make its CCIA debut.
DON’T MISS OUT. REGISTER TO SECURE YOUR PLACE AT COMPANY
For more information or to secure your place, visit: www.companycarinaction.co.uk
Jaguar Land Rover
Fleet managers will have an exclusive first look at the Range Rover Velar at the show. The new model will be making its UK car show debut at Company Car in Action as a static display so visitors can view it in the metal for the first time. Also at the event will be the Jaguar F-Pace, which was recently named World Car of the Year, along with other key fleet models including the XE and XF.
Kia
Kia will be offering five CCIA first drives as it rolls out its full model range for fleets to test. Among the key new models will be the new Optima plug-in hybrid, which slashes emissions to an official average of 37g/km. The low-emission theme will be supported by the Soul EV. Also making their show debut will be the new Picanto, Rio, Niro and Optima SW. Other key models will include the C'eed, Sportage and Sorento.
Nissan
Fleets will be able to review the new Nissan Micra as it makes its CCIA debut and see how it claims to redefine the small car sector. It is longer, wider and lower than the previous model and is targeting a place among the top 10 sellers in its segment. It offers a number of technological innovations to test, including Nissan’s acclaimed Intelligent Around View Monitor camera system.
PSA Group
Key models available from PSA Group for test at CCIA will include the new Peugeot 3008 and Citroen C3. Decision-makers will be able to see for themselves why the 3008 SUV was named Car of the Year by a judging panel comprising 58 European journalists. Fleets can also discuss the safety benefits of the in-car camera fitted to the new C3.
Renault
Fleets will be offered an exclusive first on the Renault stand as it offers a first drive of the new Captur. Due to go on sale in the summer, it will sport a higher level of specification, refreshed styling and upgraded interior. Other models on show include the all-new Renault Koleos, Kadjar and all-new Megane Sport Tourer.
Seat
Fleets will be treated to a CCIA first drive of the new Seat Ibiza, with factory-fresh models being offered at the event in left-hand drive format. There will also be CCIA debuts for the new Ateca, the brand’s first-ever SUV, and the new Leon. Other key models on test include the Alhambra.
Tesla
Fleets will be able to gain real-world experience of electric motoring by visiting the Tesla stand. Models available to drive include the Model S saloon and Model X SUV, featuring Falcon Wing doors. Experts can also answer questions on charging options and running costs.
Suzuki
Suzuki is making its CCIA debut and will be offering its full range for test. This includes the new Swift, along with the Baleno, Celerio, Ignis, S-Cross and Vitara SUV. Senior members of the team will also be attending including Graeme Jenkins, head of fleet.
Toyota/Lexus
The Toyota C-HR will be the star of the stand in a packed line-up from the manufacturer. In addition to the eye-catching crossover, fleets can also choose from the hybrid models of the Yaris, Auris, Prius (including a plug-in version) and Rav4. The Lexus stand will be an all-hybrid affair, with models including 300h versions of the CT, GS, NX and RC.
Vauxhall
In addition to a range of other key models from the Vauxhall range, fleets will be treated to two first drives on the Vauxhall stand as the Insignia Sports Tourer and Crossland X make their debut to UK fleet managers. Fleets will also be able to discuss the new RoadTrip app from Vauxhall, which is designed to make it quick and easy for drivers to log, submit and track business mileage.
Volkswagen
Volkswagen will be focusing on the core models that keep fleets moving on its stand. The iconic Golf will be there in a range of specifications, including a plug-in hybrid version, while the Passat will be available to test as a saloon or estate with a range of engines, including a PHEV option. Also on show will be the new Tiguan R Line.
Volvo
Volvo is making its mark on the fleet market by showcasing its new models including the XC90, S90, V90 and V90 Cross Country as part of a line-up covering its full range. Its fleet experts will be on hand to provide a briefing on the multitude of new technology fitted to its cars which is designed to improve safety and reduce running costs.
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n INSIGHT
FUEL CHOICES
Which is the right fuel for your business? Businesses can choose from more types of fuel than ever. Simon Harris analyses the seven most common options
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uyers have more choices of fuel and powertrains than at any time since the car was invented. The drive toward lower emissions has seen the emergence of electrified powertrains as well as technology to clean up emissions from internal combustion engines. Drivers and businesses are now questioning what had been conventional thinking for low running costs and minimising tax liability. Diesel still dominates for business cars, but in many cases plug-in powertrains, hybrids or petrol could be more favourable. However, it seems we don’t have a repeat of the video format war of the 1980s where VHS saw off rivals – instead there should be room for most, if not all, types of drive. Each one has its own strengths and weaknesses based on performance, and has characteristics making it more suitable for certain roles over others. We outline some of the options available for businesses and highlight how they could benefit them and their drivers, and where any possible problems may lie.
mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 19
n INSIGHT
FUEL CHOICES
PE TROL
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etrol became less popular among business buyers after 2002, when CO2 emissions were first used to set the level of benefit-in-kind (BIK) tax paid on company cars. Many businesses that were not operating a diesel-only policy switched to diesel, while others saw diesel as the preferred choice for their drivers. However, petrol engine technology has enjoyed something of a renaissance in recent years, with smaller capacity, fewer cylinders and the addition of turbochargers. Although higher in CO2 emissions than equivalent-sized diesel engines, manufacturers have been able to narrow the gap between petrol and diesel through these techniques. Some lower-medium cars equipped with petrol engines now offer CO2 emissions below 100g/km. However, recent reports have emerged that in real-world driving – away from the rolling-road test of the official test cycle –
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some of these smaller turbocharged engines are prone to excessive heat, and are programmed to increase the flow of fuel to improve cooling. This results in unburned hydrocarbons, particulates and carbon monoxide in the exhaust emissions. It is thought that when the official test cycle changes in the near future to better reflect real-world driving conditions, these engines will perform poorly. Work is already under way to solve the problem, and engines are likely to grow in capacity over the coming years. Not all car manufacturers have adopted the smaller turbocharged philosophy for petrol engines, with Mazda, for example, offering normally aspirated 1.5-litre and 2.0-litre engines across its current range, and using alternative techniques to reduce emissions.
Some lower-medium cars equipped with petrol engines now offer CO2 emissions below 100g/km
HYBRID
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etrol-electric hybrids have gained a foothold in Europe, including the UK, partly through Toyota’s persistence in trying to make them mainstream. Popular in North America, where the diesel share of the car market is tiny, hybrid has taken more time to become established in Europe. The first Toyota Prius was launched in the UK in 2000, along with the Honda Insight hybrid. The two technologies were slightly different. The Toyota was a ‘full hybrid’, which could drive on electric power alone, while the Insight was a ‘mild hybrid’, with the electric motor merely assisting the engine when accelerating, to save fuel. As the market has evolved, ‘full hybrids’ have become the norm, with few manufacturers offering ‘mild hybrid’ models. Toyota and Lexus remain the leading hybrid brands with a wide choice of models, including compact hatchbacks, estates, large saloons and SUVs. Other manufacturers
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came to market with their own versions, with high-performance hybrids from BMW and Infiniti, as well as diesel-hybrid options from Peugeot, DS, Mercedes-Benz and Land Rover. They often have lower CO2 emissions than diesel engine cars of the same size, but importantly they don’t attract the 3% supplement on BIK tax, with even dieselhybrids escaping the extra fee. If driven around town, the cars are very efficient, as stop-start and low-speed driving conditions create the perfect environment to optimise the powertrain. Much of the time the car will drive on electric power only, with frequent braking and stops recapturing energy to keep the battery charged. However, if hybrids are used mainly on motorway journeys, the fuel efficiency is not as good as the test cycle would suggest.
Stop-start and low-speed driving conditions create the perfect environment to optimise the powertrain
20 ❚ Summer 2017 ❚ mydrivingbusiness.co.uk
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STRENGTHS n Widely available n Usually more suitable than diesel for smaller cars n Good for low-mileage drivers and urban driving
WE AKNESSES n Worse fuel economy than diesel n Higher CO2 emissions than diesel
STRENGTHS n Zero tailpipe emissions at low speed and for short distances n Work very efficiently in urban environments
WE AKNESSES n Motorway fuel economy falls below expectations n Heavier than an equivalent petrol car
DIESEL
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iesel engines have dominated business cars for the past couple of decades because of the improved fuel consumption they offer over petrol engines. However, the real drive toward diesel was prompted by a taxation change in 2002, when the basis for benefit-in-kind (BIK) tax on company cars switched to CO2 emissions instead of business mileage. It meant drivers could reduce their BIK tax liability by switching to diesel, and most have never looked back. However, although diesel emissions are lower than petrol in CO2, they are higher in particulates and nitrogen oxide (NOx) emissions, which are known to affect local air quality and exacerbate breathing problems. To comply with European emissions rules for cars, manufacturers have had to introduce technology to remove these harmful emissions from the exhaust, one of which is the use of AdBlue, or diesel exhaust fluid, which is stored in a tank and needs regular refilling.
In 2015, Volkswagen became involved in a scandal where hidden software ensured the engines performed better for the official tests than in real-world driving. Although Volkswagen Group has taken action to ensure cars no longer cheat the emissions test, and despite no firm evidence of other manufacturers taking similar steps on their vehicles, it has turned the spotlight on diesel emissions and raised awareness of gases other than CO2. The scandal may have influenced the Government to delay lifting the 3% BIK supplement for diesels, which was scheduled to come in from April 2016, but was cancelled in the 2015 autumn statement. Some local authorities have begun penalising drivers of diesel cars with higher parking charges, while the Mayor of London is set to impose an additional fee on top of the congestion charge on older diesel and petrol vehicles.
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Although diesel emissions are lower in CO2 than petrol engines, they are higher in particulates and NOx
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PLUG-IN HYBRID
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ar manufacturers’ research into customer habits suggests that most people have relatively short daily journeys by car, most of which could be achieved within the electric range of a plug-in hybrid. Plug-ins take the hybrid format a step further, with a larger battery to cover greater distances in electric mode, and reaching higher speeds. Plug-in hybrids’ electric-only ranges can vary from 15-35 miles, dependent on battery capacity and road conditions. In mixed driving conditions, a car with a potential electric-only range of about 30 miles would typically deliver about 20 miles before the engine would be required to take over. For people mainly making short trips, with charging facilities at their destinations, these cars are perfect. The engine is rarely required and drivers will see mpg figures in the same 100-plus range as advertised in the official figures. Although plug-in hybrids have been on
Drivers can choose plug-in hybrids to reduce their benefit-in-kind tax liability compared with alternatives
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WE AKNESSES ■ Higher maintenance than petrol ■ Becoming increasingly dependent on AdBlue or ‘diesel exhaust fluid’ to clean up exhaust emissions ■ NOx gas emissions higher than most petrol engines
STRENGTHS ■ Zero emissions running for longer periods and at higher speeds ■ Potentially much cheaper to run than internal combustion engine ■ No ‘range anxiety’ ■ BIK tax savings
WE AKNESSES ■ Must be charged frequently to realise savings on fuel ■ Seen as a BIK tax loophole
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the market for several years, ranging from the Prius Plug-in to the Porsche Panamera, the model that saw them adopted in volume was the Mitsubishi Outlander PHEV, introduced in 2014, which managed to combine practicality with an attractive price point. But arguably they have also been introduced as a necessity by car manufacturers to ensure they achieve the average range CO2 benchmarks set by the European Union. Failure to do so results in hefty fines. Drivers can choose plug-in hybrids to reduce their benefit-in-kind (BIK) tax liability compared with alternatives, even though most of their driving may be on the motorway. This puts good fuel economy at risk, as drivers could be reluctant to stop and plug in the car to recharge, relying on the engine and shorter refuelling stops.
STRENGTHS ■ Widely available; more fuel-efficient than petrol engines ■ Ideally suited to high-mileage motorway routes
mydrivingbusiness.co.uk ❚ Summer 2017 ❚ 21
n INSIGHT
FUEL CHOICES
BAT TERY E V
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he first modern battery electric cars were introduced in 2010, with the Nissan Leaf following in 2011 and establishing itself as a bestseller. Volume is still low, with annual pure EV registrations just topping 10,000 in 2016, but battery technology has evolved, allowing manufacturers to offer a range that suits the requirements of more drivers. Renault introduced a Zoe with a potential range of 250 miles in the UK this year, while other European markets will get Opel’s Ampera-e, a compact EV with a potential range of 300 miles, and a realistic range of more than 180 miles. At the top end of the EV spectrum, Tesla has been producing low volumes of highperformance cars that comfortably cover 200 miles or more on a charge. Established car manufacturers are likely to be able to compete with that in the next few years.
Range-extended EVs have also given drivers something of a safety blanket on longer journeys, with the BMW i3 available with a motorcycle engine that can recharge the battery on the move and double the car’s maximum travelling distance. Pure battery EVs should have lower SMR costs than other fuels because there are fewer moving parts susceptible to wear and tear, while the cost per mile of electricity is also lower than petrol or diesel. The charging infrastructure for plug-in cars also continues to improve, although seeing out-of-order charge points is still too common a sight.
STRENGTHS n Range and charging network improving, making EVs more attractive n Lower maintenance and fuel costs than fossilfuel cars n Responsive acceleration
WE AKNESSES n Range still lower than a petrol car n Charging takes longer than refuelling n Range varies greatly dependent on electric systems used and ambient temperature
HYDROGEN FUEL CELL
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t has the potential to be the ‘greenest’ way to drive at some point in the future, but hydrogen fuel cells are not quite there yet. The technology works, it is still in its infancy. As a result, the cars are expensive and the infrastructure is lacking. It is only currently feasible for organisations within a short drive of one of the few refuelling stations. As for its green credentials, production of this hydrogen is from methane gas. However, greener methods of production, including electrolysis from water, could be feasible when there is a greater take-up of fuel cell cars. Its cost as a fuel is similar to petrol and diesel, and a full tank in a car would power it for 300-plus miles, with refuelling taking a few minutes.
STRENGTHS By the end of 2017, three manufacturers will offer hydrogen models in the UK – Hyundai, Toyota and Honda – with others working in partnership on developing the technology while reducing cost. The Europe-wide HyFive project is also attempting to assist in establishing hydrogen vehicles and the refuelling network. In the UK, there are currently fewer than a dozen filling stations open to the public, but more are planned.
n Electric car performance with range similar to petrol car n Refuelling takes minutes rather than hours n Has the potential to be ‘greener’ than other fuels
WE AKNESSES n Few hydrogen fuel cell vehicles available n Sparse refuelling network n Vehicles currently expensive n Most hydrogen is currently produced using natural gas
LP G
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bout 20 years ago, LPG-converted petrol cars had a definite niche in the market, and by the early years of the 21st century, a number of manufacturers, including Volvo, Ford, Vauxhall and MG Rover, offered ‘off the shelf’ LPG-converted cars in the UK. At the time, the government provided grant money toward the cost of conversion, which brought forward the impact of the savings in fuel costs. However, once those grants dried up, manufacturers stopped offering LPG cars in the UK. While it is still possible to buy LPG22 ❚ Summer 2017 ❚ mydrivingbusiness.co.uk
STRENGTHS n Performs like a petrol car n Dual-fuel set-up means vehicle can also run on petrol n Network of about 1,400 LPG refuelling points n Lower CO2 emissions than petrol n Pump price about 60% of the cost of unleaded converted petrol cars, without any official manufacturer conversions, there is no CO2 figure recorded on the test cycle for gas, which means although LPG offers lower emissions, there would be no advantage in benefit-in-kind (BIK) tax.
WE AKNESSES n No financial incentives to pay for LPG conversion n Only slightly ‘greener’ than petrol n Vehicles prohibited from using the Channel Tunnel
Advertisment feature
Ultra-Low Emission Vehicles: Going green, breathing clean? As sales rise, is it time for you to consider an alternatively fuelled vehicle?
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ir quality in the UK continues to make the headlines, and the government has reaffirmed its commitment to low emission vehicles and the technology that makes them possible. Recent confirmation that the Plug-in Car Grant (PIGC) is to continue is sure to help to drive sales of Alternatively Fuelled Vehicles (AFVs). The current discounts are up to £4,500 applied to electric vehicles, and £2,500 for hybrids There is also charging support, with an additional £500 towards a home charging point, and grant schemes for businesses in the form of the Workplace Charging Scheme, these benefits could help entice employees away from their current petrol or diesel preference. With recent trials showing proven savings, could the Ultra-Low Emission Vehicle (ULEV) be the best option for your next company car purchase? Total Cost of Ownership Many employers and employees are put off by the headline price of a ULEV when compared with its petrol or diesel equivalent. However a well informed decision will look at the Total Cost of Ownership of these vehicles (i.e. the cost of the vehicle over its full lifecycle) which is where the savings can really be found.
With an efficient driving style and recommended energy supplier, Nissan and Renault claim that their LEAF and Zoe models can be run for as little as 2 pence per mile to run, potentially offering significant savings compared to even the most efficient petrol or diesel alternatives.
Another advantage of a zero-emission vehicle is that it will be exempt from Vehicle Excise Duty (VED) after the first year if it costs less than £40,000. If it costs more, the vehicle will go into the Premium Rate category for VED in subsequent years.
including Southampton, Birmingham, Leeds, Derby and Nottingham. If you find you or your fleet frequently drive in these areas, the changes are likely to play a big part in your decision.
The future tax rate for ULEV’s will also be different for a vehicle that costs more than £40,000, so it is certainly worth considering the options list very carefully before making your choice
Lombard Vehicle Solutions has been at the forefront of Alternative Fuelled adoption, hosting presentations across the UK earlier in the year alongside the Energy Saving Trust, Tesla Motors and BMW Group.
Low Emission Zones and Future Charges
We’re ready to advise on the latest funding options to best reduce your vehicle related expenses, and to assist employers and employees who are seeking to reduce their costs and emissions without impacting their vehicle performance.
As the government acts to reduce pollution and improve air quality, there will be a rise in Ultra Low Emission Zones, with the most publicised to be introduced in London before the end of the decade. There are further consultations underway across the UK, with plans to introduce similar low emission zones in other major cities
To find out more, contact Lombard Vehicle Solutions on 0117 908 6490 or visit www.lombardvehiclesolutions.co.uk
Finance subject to status. Guarantees and indemnities may be required. Lombard Vehicle Solutions is a contract hire and fleet management product provided by ALD Automotive Ltd, trading as Lombard Vehicle Solutions, Oakwood Drive, Emersons Green, Bristol BS16 7LB. ALD Automotive is registered in England No. 987418.
Solutions
The UK’s biggest fleet event grows again The industry show for car and commercial fleets will break new records in 2017
ar and commercial fleets, both large and small, will reap the rewards of exciting changes and innovations coming to Fleet Management LIVE for 2017. Managers with a combined fleet of more than 500,000 vehicles are expected to attend the expanded Fleet News event which has grown to incorporate the Commercial Fleet Van & Truck Show to cover every area of the industry. The show now provides everything a fleet needs under one roof, whether you operate cars or commercial vehicles and whether your role is fleet or any other essential fleet-related role, such as HR, procurement, purchasing, finance, risk management, transport, corporate mobility or business travel. With an increased number of suppliers and exhibitors, along with a redesigned programme of expert talks and advice, the changes consolidate Fleet Management LIVE as the biggest and best event on the annual fleet calendar.
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Supported by
To accommodate the growth, it has moved to a new, larger hall at the NEC to make this year’s show the largest ever. The expansion reflects the wishes of vehicle operators, many of whom operate both cars and commercial vehicles. It also ensures visitors can extract the maximum value from their day by meeting a range of suppliers covering all their needs, while also networking, discovering the latest innovations, learning industry best practice and obtaining important advice on future fleet developments. Chris Lester, event director, said: “Fleet Management LIVE has been designed by the industry, for the industry. Managers from every area of the market visit to assess, evaluate and learn, in areas from fleet management to finance, HR to procurement. Our growth reflects the interest shown by fleet operators who attend this event and benefit enormously from what it has to offer.”
Fleet Management LIVE provided a great learning and sharing opportunity for both those new to fleet and the more experienced. There was something for just about everyone” Nigel Trotman, ACFO
Exhibitor listing so far BMW
OCTOBER 3-4, 2017 NEC BIRMINGHAM REGISTER NOW AT FLEETMANAGEMENTLIVE.CO.UK Best practice sessions to fine-tune your fleet Managers will be briefed on the critical strategies and steps for running an effective and efficient fleet during Fleet Management Live. A series of best practice sessions will provide a perfect opportunity for managers to benchmark their operations
against the best practice guidance of other industry experts. Each session is designed to meet fleets’ needs by offering a best practice blueprint, but then allowing delegates to ask questions about their businessspecific requirements. Best practice sessions
are run throughout the two-day show in the main hall. Sessions will cover: n Fleet compliance n Risk management n Funding n Rental n Telematics
Honda Jaguar Land Rover Lexus MINI SEAT Toyota Vauxhall Volvo AA DriveTech Agility Fleet AID Fuel Oils Group ALD Automotive Alphabet Appy Fleet Arnold Clark Vehicle Management Arval AssetWorks Autoglass Bott BP Oil BT Fleet Carbaya CC Keys Chevin Fleet Solutions CVM Fleet Management Solutions Daimler Fleet Management Dash Witness Drive Software Solutions Enterprise Flex-E-Rent FleetCheck Fleetcor Fleet Evolution FORS Fourways Vehicles Solutions Fuelmate GEFCO Inchcape Fleet Solutions Interactive Fleet Management Jaama Keytracker Lex Autolease Licence Bureau Lookers Leasing Marshall Leasing Nexus Vehicle Rental O2 Parksafe Automotive Probuild Transport Systems Reflex Vans RingGo Corporate Scorpion Automotive Selsia Vehicle Accident Centres Sortimo TCH Leasing The AA Total Motion Vehicle Management Venson Automotive Solutions vGroup International Vindis Group Fleet Volkswagen Financial Services | Fleet Zenith
n NE W MODEL S
Coming soon... We take a look at what manufacturers have in the pipeline VAUXHALL INSIGNIA SPORTS TOURER
VOLKSWAGEN ARTEON ON SALE: Autumn PRICE: From £30,000 (estimated) CO2 EMISSIONS: From 112g/km (estimated) WHAT’S NEW: Volkswagen will introduce a new upmarket model line later this year in an attempt to compete against premiumbadged rivals and replace the outgoing Passat-based CC. Lower, longer and wider than a Passat saloon, and with a longer wheelbase, the Arteon is intended as an alternative to premium user-chooser cars such as the BMW 4 Series Gran Coupé and Audi A5 Sportback, while it may also lure drivers away from traditional upmarket saloons. There will be a range of turbocharged petrol and diesel engines, offering between 150 and 280PS.
ON SALE: Q3 PRICE: From £18,685 CO2 EMISSIONS: From 100g/km (estimated) WHAT’S NEW: An estate version of the Vauxhall Insignia will go on sale this summer and will benefit from all the improvements seen on the Grand Sport – including reduced weight and better fuel efficiency. The leaner Sports Tourer will be roomier and more comfortable than the outgoing model, with the same orthopaedically designed seats as the new Grand Sport. Luggage capacity has increased to 1,640 litres and the length of the boot has grown by 97mm. New convenience and safety technology will include OnStar connectivity and service assistant – with a concierge service – and an on-board Wi-Fi system for up to seven devices.
NISSAN QASHQAI FACELIFT
VOLVO XC60
ON SALE: July PRICE: From £19,000 (estimated) CO2 EMISSIONS: From 99g/km WHAT’S NEW: Nissan has given its second-generation Qashqai a mid-life facelift, marking the 10th anniversary of the original Qashqai’s introduction. Autonomous emergency braking has been upgraded with pedestrian protection, while rear cross-traffic alert, warning the driver of approaching vehicles when reversing out of a parking space, is available for the first time. Higher-quality materials are used inside, with a new range-topping Tekna+ grade including premium Nappa leather with a quilted stitching design for inner seat panels, while there is a new user interface and the option of a Bose audio system.
ON SALE: Q3 PRICE: From £37,205 CO2 EMISSIONS: From 136g/km WHAT’S NEW: Volvo’s range update will continue in 2017 with the introduction of a new XC60 SUV, marking the first new model of the ‘60’ range on its new platform. With styling cues similar to the XC90, but with a sleeker appearance, the XC60 will be available with a choice of 190PS D4 and 235PS D5 diesels, as well as a 254PS T5 petrol engine. A new safety system called ‘oncoming lane mitigation’ uses steer assist to help reduce the risk or severity of head-on collisions, while Volvo’s blind-spot warning now uses steer assist to reduce the risk of collisions while changing lanes.
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FORD FIESTA
SEAT IBIZA ON SALE: June PRICE: From £13,130 CO2 EMISSIONS: from 106g/km (petrol) WHAT’S NEW: The new Ibiza will be the first Volkswagen Group small hatchback to use the versatile MQB platform, ahead of the upcoming Volkswagen Polo, Škoda Fabia and Audi A1. It has been built to excel in safety, refinement and cabin space. By moving the wheels further apart, Seat has managed to increase luggage space to 355 litres and improve legroom for all passengers. Five trim levels will be available: S, SE, SE Technology, FR and Xcellence. All models get Bluetooth and air-con while top-spec cars get keyless entry and a parking camera. A 1.0-litre petrol engine introduces the line-up, with 75PS. There will also be turbocharged versions, with 95 or 115PS, plus a 1.6-litre diesel. Later in the year, a 150PS 1.5-litre turbo petrol will be added.
ON SALE: August PRICE: From £12,715 CO2 EMISSIONS: From 82g/km WHAT’S NEW: The UK’s best-selling car has undergone a major revamp for 2017. Ford is calling it the world’s most technologically advanced small car, with new driver assistance features improving convenience and safety, while the new interior features a large dashboard-mounted touchscreen. A Vignale variant will also feature in the Fiesta range. This will come with its own 18-inch alloy wheel designs, exclusive exterior detailing and colours, and hexagonal-quilted, ‘tuxedo-stitched’ leather seats. Most engines will be carried over from the current model, including the 1.0-litre Ecoboost, with power outputs up to 140PS. A new version of the 1.5-litre TDCi, producing 120PS, will also become available, making it the most powerful diesel Fiesta to date.
KIA STINGER GT
PEUGEOT 5008 SUV
ON SALE: October PRICE: From £35,000 CO2 EMISSIONS: TBC WHAT’S NEW: Kia will be entering a new and perhaps unexpected market sector with the Stinger GT saloon. The car will be available with a choice of three engines: a 2.0-litre turbo petrol engine, a powerful 3.3-litre twin-turbo V6, and, most importantly for business buyers, a 2.2-litre turbodiesel engine. The diesel engine is anticipated to account for the majority of Stinger sales across Europe. It produces 200PS and 440Nm of torque, so performance should be strong – 0 to 62mph takes 8.5 seconds. With Hyundai-Kia having poached one of BMW’s top engineering bosses, Albert Biermann, in 2014, the Stinger is expected to offer an appealing package for driving enthusiasts. ON SALE: Late 2017 PRICE: £23,000 (estimated) CO2 EMISSIONS: from 108g/km WHAT’S NEW: In 2016, Peugeot reinvented the 3008 as an SUV to compete in the burgeoning crossover sector. This year, it reinvents its seven-seat people carrier, the 5008, as a seven-seat SUV. Like the 3008, the 5008 will come with the latest version of Peugeot’s i-Cockpit configurable digital instrument display. The digital display is standard across the range and raised to a higher level than a conventional instrument panel, while the steering wheel is smaller and elliptical with a flatter top and bottom to improve steering feel and visibility. Engines and transmissions will be shared with the 3008, including a 120PS 1.6 BlueHDi, and 150PS and 180PS 2.0-litre BlueHDi diesels. There will also be turbocharged 1.2- and 1.6-litre petrol engines. CO2 emissions for the 5008 start at 108g/km for diesel and 117g/km for petrol.
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