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ISSUe 122

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GreenFleet DRIVING THE SWITCH TO CLEANER FLEETS

EV CHARGING

TAX

SAFE HOME CHARGING ADVICE What should EV owners be aware of when charging from a domestic property?

COMPANY CAR TAX CHANGES Company car drivers choosing an EV will pay no BIK tax in 2020/21

SME GUIDE: ADVICE FOR SMES FACING FLEET MANAGEMENT CHALLENGES

PLUS: LEASING & RENTAL | KIA SPORTAGE ROAD TEST | TELEMATICS

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ISSUe 122

www.greenfleet.net

GreenFleet DRIVING THE SWITCH TO CLEANER FLEETS

EV CHARGING

TAX

SAFE HOME CHARGING ADVICE What should EV owners be aware of when charging from a domestic property?

COMPANY CAR TAX CHANGES Company car drivers choosing an EV will pay no BIK tax in 2020/21

Confidence for EV owners The net zero carbon target by 2050 has reignited the need to reduce transport emissions. Following this, there has been a string of announcements to do with improving the EV charging experience to make owning an electric vehicle more practical.

SME GUIDE: ADVICE FOR SMES FACING FLEET MANAGEMENT CHALLENGES

PLUS: LEASING & RENTAL | KIA SPORTAGE ROAD TEST | TELEMATICS

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Visit et fleet.n ws, n e e e gr n t s late d for the ad tests an s, ro feature terviews in

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The DfT wants to mandate that all new-build homes with a dedicated car parking space be fitted with an electric car chargepoint, and has launched a consultation to gain feedback on the idea. What’s more, the government wants all newly installed rapid and higher powered chargepoints to provide debit or credit card payment by spring 2020. The move should allow electric vehicle drivers to use any public chargepoint through a single payment method without needing multiple smartphone apps or membership cards. This has always been a major issue with EV owners and I believe providing one simple payment solution for the entire country will really boost people’s confidence in electric vehicles. This issue of GreenFleet has a feature on safe home charging (page 15), after it was revealed that 74 per cent of EV owners have used domestic multi-socket extension leads to charge their vehicles. There is also an SME Guide, with informative features on how to tackle the challenges of fleet management for SMEs, on page 21.

Angela Pisanu, editor

P ONLINE P IN PRINT P MOBILE P FACE-TO-FACE If you would like to receive 6 issues of GreenFleet magazine for £150 a year, please contact Public Sector Information Limited, 226 High Road, Loughton, Essex IG10 1ET. Tel: 020 8532 0055

GreenFleet DRIVING THE SWITCH TO CLEANER FLEETS

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226 High Rd, Loughton, Essex IG10 1ET. Tel: 020 8532 0055 Fax: 020 8532 0066 Web: www.psi-media.co.uk EDITOR Angela Pisanu PRODUCTION MANAGER Dan Kanolik PRODUCTION CONTROL Lucy Maynard PRODUCTION DESIGN Sophia Mew WEB PRODUCTION Victoria Casey PUBLISHER George Petrou ACCOUNT MANAGER Kylie Glover ADMINISTRATION Emily Robb REPRODUCTION & PRINT Argent Media

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Contents

Contents GreenFleet 122 07 News

Card payment for new rapid chargepoints to be in use by 2020; Motorway air quality tech gains funding; £500m for Jaguar Land Rover to develop EVs; EV chargepoints to be installed in all future homes

15 Safe EV charging

22 SME Guide: Fleet managemnet

The SME fleet management role requires a credible level of skill, knowledge and experience, supported by attention to detail, numeric accuracy and people management skills. Peter Eldridge, director at ICFM, shares some advice

25 SME Guide: Telematics Telematics is being widely adopted by SME fleets to give them the journey and driving information that enables better decision-making for a more efficient and cost-effective fleet

43 Expert panel: Leasing & rental

The net zero carbon target by 2050 has reignited the need to eliminate transport emissions. But should fleet managers really be feeling the pressure to move away from diesel? And how can they navigate the current and future fuel mix? Our leasing and rental experts share their advice

46 GREENFLEET Scotland: Aberdeen

Supported by Transport Scotland, Energy Saving Trust and Aberdeen City Council, GreenFleet returned to Aberdeen on 21 June to showcase the latest zero and ultra-low emission vehicles and share knowledge on measures to improve air quality

45 Events calendar

A round-up of the upcoming GreenFleet events touring the country

48 Road test: Kia Sportage

The latest incarnation of the Kia Sportage SUV offers 48V technology to lower emissions and improve economy. Richard Gooding sees if the beliefs eclipse the benefits

31 SME Guide: Breakdowns & SMR

Service, maintenance and repair (SMR) is often cited as a burdensome task for small to medium businesses, but it is an essential component in running a costeffective, safe and compliant fleet

34 SME Guide: Expert panel: SME fleets 25

London’s van scrappage scheme targets micro-businesses in the acknowledgement that smaller firms will be hit hardest by penalty charges or the cost of upgrading their vehicles. How else can SMEs be supported with Clean Air Zones and other changing air quality regulations? Our panel of experts discuss

39 Company car tax

The government has recognised the value of the company car market in supporting the transition to zero emission vehicles by announcing that drivers of zero-emission electric vehicles will not pay BIK in the next tax year. But does this go far enough? We look at the industry’s reaction

GreenFleet magazine

www.greenfleet.net Issue 122 | GREENFLEET MAGAZINE

WE ARE ALL MADE OF WILD.

NEW JEEP® COMPASS

FROM UP TO 23,185 MPG 47.9 BIK 30%FROM P11D £FROM CO2 128g/km

NEW JEEP® RENEGADE

FROM UP TO 23,240 MPG 48.7 BIK 30%FROM P11D £FROM CO2 129g/km

NEW JEEP® COMPASS AND RENEGADE. BORN TO BE WILD. For more information contact our business centre on 0808 168 5440 or visit Jeep.co.uk/fleet OFFICIAL FUEL CONSUMPTION FIGURES FOR THE JEEP® RANGE MPG (L/100KM) COMBINED: 48.7 (5.8) TO 25.0 (11.3). CO2 EMISSIONS: 213 TO 128 G/KM. Fuel consumption figures determined on the basis of the new WLTP test procedure as per Regulation (EU) 2017/1347. CO 2 figures, based on the outgoing test cycle, will be used to calculate vehicle tax on first registration. Only compare fuel consumption and CO 2 figures with other cars tested to the same technical procedures. These figures may not reflect real life driving results, which will depend upon a number of factors including the accessories fitted (post-registration), variations in weather, driving styles and vehicle load. Jeep® is a registered trademark of FCA US LLC.

News

CHARGING

Card payment for new rapid chargepoints to be in use by 2020 The government wants all newly installed rapid and higher powered chargepoints to provide debit or credit card payment by spring 2020. With hopes to develop a roaming solution across the charging network, the move should allow electric vehicle drivers to use any public chargepoint through a single payment method without needing multiple smartphone apps or membership cards. To increase confidence in the charging network and reduce range anxiety among drivers, the government is also working with industry to make chargepoint data freely available, helping drivers easily locate and access available chargepoints.

Future of Mobility Minister Michael Ellis said: “The government’s vision is for the UK to have one of the best electric vehicle charging networks in the world, but we know the variety of payment methods at the moment is a source of frustration for drivers. It is crucial there are easy payment methods available to improve electric vehicle drivers’ experiences and give drivers choice. This will help even more people enjoy the benefits electric vehicles bring and speed up our journey to a zero-emission future.” BP Chargemaster, the operator of the UK’s largest public charging network, has committed to introducing card payment on all new 50kW and 150kW chargers.

David Newton, CEO at BP Chargemaster, said: “As the operator of the UK’s largest public charging network, including the greatest number of rapid chargers, we support the government’s vision for all new rapid and ultra-fast chargers to support contactless bank card payment. We will be going one step further, not only by introducing this facility on all new 50kW and 150kW chargers, but also by committing to retrofit our existing UK-made rapid chargers with this technology over the next 12 months.” READ MORE tinyurl.com/y69vqukv

ELECTRIC VEHICLES

AIR QUALITY

£500m for Jaguar Land Rover to develop EVs

Motorway air quality tech gains funding

A £500 million guarantee from UK Export Finance (UKEF) will help support Jaguar Land Rover’s continued investment into research and development of the next generation electric vehicles and future mobility solutions. As part of its Destination Zero strategy: zero emissions, zero congestion, zero accidents, Jaguar Land Rover is developing

autonomous, connected, electric and shared mobility technology, which will feature in a growing number of Jaguar and Land Rover models exported around the world in the future. Outgoing Prime Minister Theresa May said the loan guarantee would help Britain’s biggest carmaker sell the next generation of electric cars around the world, as she spoke to industry leaders at Downing Street about plans for England to become the first country to introduce mandatory electric car charging points in new homes. Jaguar revealed plans earlier this month to invest billions of pounds in building an electric version of the Jaguar XJ saloon at its Castle Bromwich factory. READ MORE tinyurl.com/yy7a9dvz

BIOFUELS

Add more ethanol to fuel to cut carbon, government urged The All-Party Parliamentary Group for British Bioethanol has suggested adding more ethanol to the UK’s fuel mix to help cut carbon by as much as taking 700,000 cars off the roads. The group of MPs said that the swift introduction of E10 fuel, a mixture of 10 per cent ethanol with 90 per cent petrol, would also help the £1 billion British biofuel industry. France introduced E10 fuel in 2009 and last year it was the largest volume petrol grade sold, with 47 per cent of the market. Germany, Belgium and Finland have also introduced E10, with other countries including China and India set to do the same. The report, Inquiry on the Introduction of E10 in the UK, says that while electric cars and vehicles are the long-term solution to emissions from transport in

the UK, E10 represents a big advance that could be achieved right now. Nic Dakin, chairman of the all-party group, said: “For many reasons it is absolutely a no-brainer. On the environmental front, it’s a cleaner, greener fuel at a time when we’re trying to address air pollution and tackle climate change. “Cars aren’t going to all switch to battery power overnight and if they did there isn’t the capacity in the National Grid to power all of our transportation. This must be a top priority for the government and we renew our call for a mandate to introduce E10 by 2020 at the latest.” READ MORE tinyurl.com/y6l8rnoc

Technology which could improve air quality in local communities by helping the way drivers leave motorways was named as one of the successful entries in a multi-million-pound competition. Run by Highways England and Innovate UK, the competitions, worth up to £20 million, aims to encourage innovative ideas to change the way the country’s motorways and major A roads are designed, managed and used. One project to receive funding will see technology inform drivers of the time remaining before traffic lights change to green at junctions and suggest an appropriate speed. This will reduce the need for vehicles to stop on exit slip roads, which in turn could improve air quality by reducing the stop-starting of vehicles. Mike Wilson, Highways England’s executive director for Safety, Engineering and Standards, said: “We are delighted to be able to offer this funding to support ideas which have the potential to improve the environment around our roads, for people’s journeys and local communities. We have been seeking innovative ideas which could save lives, reduce congestion or improve air quality, and the competitions have proved a great success with so many great ideas submitted and something we will consider repeating in the future.”

READ MORE tinyurl.com/y4nxo4q8

Issue 122 | GREENFLEET MAGAZINE

Model shown is a New Mondeo Titanium Edition Hybrid Estate 2.0 TiCVT Auto with optional Adaptive Headlamps and Power Tailgate. Fuel economy mpg (l/100km): Combined 46.3 (6.1). *CO 2 emissions 113g/km. Figures shown are for comparability purposes; only compare fuel consumption and CO 2 figures with other cars tested to the same technical procedures. These figures may not reflect real life driving results, which will depend upon a number of factors including the accessories fitted (post-registration), variations in weather, driving styles and vehicle load. *There is a new test used for fuel consumption and CO 2 figures. The CO 2 figures shown, however, are based on the outgoing test cycle and will be used to calculate vehicle tax on first registration.

E N E R G I S E

Y O U R

W O R K F O R C E

Intro ducing th e ultra- ef ficient an d p rac tic al New Mo n d e o H y b rid E s t ate. F e a t u r i n g p r e m i u m l e a t h e r i n t e r i o r a n d SY N C-3 t e c h n o l o g y w h i c h k e e p s d r i v e r s c o n n e c t e d o n t h e g o, t h i s s e l f- c h a r g i n g h y b r i d w i l l p u t t h e s p a r k b a c k i n t o y o u r b u s i n e s s .

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Electric vehicle charge points for domestic and commercial use ChargedEV supply, install and maintain electric vehicle charging points for both domestic and commercial customers. They have been doing this since 2013 and have become one of the largest chargepoint installers in the UK

ChargedEV currently employs 21 fully qualified electrical installers up and down the UK, offering a nationwide installation service of both our Smart+ and Chargemaster products. Smart+ Our new Smart+ offering is quite simply one of the smartest EV chargers on the market offering a range of innovative features for the driver and optimised by our award winning Kaluza platform. You can schedule, track and optimise your charging to reduce your carbon footprint and save you money. We also have some other great features in the pipeline including solar match and load balancing. Chargemaster The Smart enabled Homecharger offers some great driver features that include, scheduling, monitoring and remotely starting charge from the dedicated app. Safety As the article across suggests, many businesses that are transitioning to a low emission fleet and incorporating EVs and/ or PHEVs are leaving the decision around charging at home to the drivers. This often leads to a number of drivers relying on their existing electrical set up at home. Most homes are not setup to charge an EV without additional work. An EV will charge at around 10amps continuously for between 4 – 12 hours depending on the vehicle. Domestic sockets are generally rated at 13A maximum and 6 or 8 amp for continuous use due to a number of factors but mainly heat build up. When drivers are charging using existing

infrastructure at home there has been no risk assessment carried out and no additional safety measures applied. Installing a dedicated EVSE removes that risk and as standard comes with a number of additional safety devices. Over the past year the regulations have tightened even more; but we’ve always been ahead of the game when it comes to safety, having taken part in many trial projects ahead of regulation amendments. We have an in house safety and compliance team, in which we assess the regulations, give regular refresher training and ensure that we are working to the highest possible standards at all times. The IET has worked hard to change the regulations and improve the safety of EV chargepoint installations for the safety of EV drivers and their homes. Why would you allow your drivers to bypass these risk measures and charge without a dedicated EV chargepoint? The Solution We work with some of the UK’s largest fleets, building a comprehensive package for all drivers to give discounted EV charging whilst maintaining an exceptional level of customer service. Some of our clients mandate ahead of ordering an EV that the employee has to be eligible and agree to have an EV chargepoint installed before delivery to reduce the risk of employees charging in an unsafe manner. Additional benefits to installing a dedicated EV chargepoint are that your employees can give detailed energy consumption for their charging, whether that is to reclaim the cost or give you an opportunity to calculate additional carbon savings that you can tie into

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

your overall fleet carbon reduction targets. Mark Pymm, managing director of ChargedEV commented: “We have worked with some of the UK’s greenest fleets, Close Brothers, NHS, OVO Energy and many more to ensure that all drivers are charging in the quickest most efficient and safest way possible. My experience with fleet managers is that they generally want their vehicles and all associated products and services to be run through them, EV charging is no different”. Partner+ Our Partner+ program is designed specifically with lease companies and large fleets in mind, you have a dedicated account manager, product literature and pre agreed price points to ensure that all of your drivers are treated the same, regardless of the geographical spread. We increase a standard installation package meaning more of your drives qualify and can even offer some additional benefits to help reduce the cost of charging for your drivers. We have the smartest range of chargepoints in the UK, the highest rated installation team and the drivers needs at the heart of everything that we do. If you would like more information about EV charging or to find out more about our Partner+ program, please contact us on the below details: Email: fleet@chargedev.co.uk Phone: 0330 043185. L FURTHER INFORMATION 0330 0431851 fleet@chargedev.co.uk

Many electric vehicle owners have admitted to dangerously charging their vehicle at home using extension leads. So what are the dangers of this approach? And what else should EV owners be aware of when charging from a domestic property? A survey from charity Electrical Safety First has revealed that 74 per cent of EV owners believe that a lack of public charging points near their home has led them to use domestic multisocket extension leads, not suitable for outdoor use, to charge from the mains in their home. This is despite almost nine out of ten respondents admitting they’re aware these should not be used outside. Over half of EV users who charge with the aid of an extension lead, meanwhile, have left cables running to their vehicle when it’s been raining. The research also found that 75 per cent of those who charge using a domestic extension lead even admit to ‘daisy-chaining’ extension leads to reach their vehicle; a method whereby

multiple extension leads are plugged into one another to cover a longer distance. Daisychaining is advised against in all circumstances due to the heightened risk of electric shock and even fire that it brings about.

Safe EV Charging

Safe domestic electric vehicle charging

to 1.55 per 100km2 (1.03 per 10,000 residents) in Wales. Not only does this inconvenience EV users who live in areas with few charging points but also creates problems for those driving to these areas for business or to visit friends or family. The charity’s consumer research suggests that nearly three quarters of respondents, when taking long journeys away from home or work, have been forced to use extension leads from a domestic mains socket to charge their vehicle at their destination. With the government’s aim for all cars to be effectively zero emission by 2040, Electrical Safety First believes public infrastructure for electric vehicles must be adequate to cater to the needs of owners in order to avoid dangerous charging habits in the home. EV users, meanwhile, need to be wellinformed on how to charge their vehicles safely. Fleet managers that provide an electric vehicle to their employees should also advise them on safe charging practices at home.

How to charge safely Electrical Safety First has issue advice for EV owners through its ‘Glovebox Guide’ available through the organisation’s website. The public charging network Users are urged never use a One in three EV owners have said that in domestic multi socket extension their opinion, the current accessibility lead when charging their of charging points in their area Seventy electric vehicle. If an is ‘not adequate at all’. extension lead is The number of charging five per c e needed, only ever use point locations ranges n t o f those one that is suitable for from 147 per 100km2 w ho charge outdoor use such as in London (and 2.6 u sing a domes a reel cable. E per 10,000 residents)

lead ad tic extension chaininmit to ‘daisyg’ exte leads nsion

Issue 122 | GREENFLEET MAGAZINE

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Safe EV Charging

 Never ‘daisy-chain’ extension leads. The method of plugging more than one extension lead into another in order to reach a greater distance increases the risk of an electrical fire as well as electric shock. EV drivers should always buy their charging cable from a reputable retailer or directly from the manufacturer who will put such products through rigorous tests to ensure they meet UK safety standards. Charging cables must be frequently checked for wear and tear and replaced if any damage is evident. If charging from a 13A mains socket from home, ensure the wiring in the property has been checked prior to doing so. Old wiring may not be able to cope with the demand from charging your vehicle overnight and risk a fire in your property. The safest and most convenient way to charge your vehicle at home is through a dedicated wallbox charging point. Ensure this is installed by a qualified, registered and competent electrician only.

Grants for home charging The Electric Vehicle Homecharge Scheme (EVHS) provides grant funding of up to 75 per cent towards the cost of installing electric vehicle chargepoints at domestic properties across the UK. To help reduce the strain of electric-car charging on the grid, from 1 July 2019, the EVHS will only support smart chargepoints. The smart chargers must be able to be remotely accessed, and capable of receiving, interpreting and reacting to a signal. Charge points at workplaces are also subsidised through the Workplace Charging Scheme (WCS). It is a voucher-based scheme that provides support towards the up-front costs of the purchase and installation of electric vehicle chargepoints, for eligible businesses, charities and public sector organisations. The government is also consulting on plans that would mandate all new homes with a dedicated car parking space to be built with an electric chargepoint.

The safest and most convenient way to charge your vehicle at home is through a dedicated wallbox charging point. Ensure this is installed by a qualified, registered and competent electrician only.

A direct link Martyn Allen, technical director at Electrical Safety First, commented: “Our research shows a direct link between a lack of electric vehicle infrastructure and vehicle owners charging dangerously. A modern Britain also needs to be a safe one and Electrical Safety First is urging the government and local authorities to ensure that the infrastructure is in place to support the rapid increase in numbers of electric vehicles on our roads. “With regards to consumers, we warn EV users against giving in to temptation to use standard domestic extension leads to charge their vehicles outside, and never to ‘daisy-chain’ them together. “We recommend taking advantage of the government’s grant scheme which will contribute towards the cost of a specially designed home charging point. This is safer than charging from the mains, using a standard extension lead. For more detailed information on how to charge and use your EV safely, the Glovebox Guide available on the Electrical Safety First website is a great place to start.” Smart home charging The Electric Nation trial, which saw 673 EV drivers take part in the 18-month trial, has revealed the charging habits of EV drivers at home. It found that the most popular time to plug in EVs was during the evening peak – 5pm to 7pm on weekdays when drivers get home from work. E Issue 122 | GREENFLEET MAGAZINE

One of Europeâ&#x20AC;&#x2122;s leading charge point manufacturers is now in the UK A Taxi company moved its fleet to 100% electric vehicles. The challenge was to give them a charging solution that kept the electric fleet available and charged at all times with limited DNO and finance. Using our years of expertise, (Ecotap have been manufacturing and installing chargers since 2011), we designed, supplied and installed a mix of both Rapid DC and Fast AC chargers using our dynamic load balancing technology to give them the perfect cost effective solution.

Contact us to find the solution for your charging requirements. We will work together to give you the best solution drawing on our years of experience and over 40,000 installations throughout Europe.

Nicole@ecotap.info Telephone 01234 828923

 On average, vehicles were left plugged in for over 12 hours but they are rarely charging for the full time. There is a huge variance in charging behaviours but, on average, full battery EV drivers charged two to three times a week at 7kW when they have more than 50 per cent of battery charge remaining; plug-in hybrid drivers charged more frequently at 3.6kW and plug in with less charge remaining but charging transactions are shorter.

Roger Hey from Western Power Distribution (WPD) explained: “This shows that most people treat home EV charging as part of their daily routine: get home from work, plug the car in and then go and cook or watch TV. If all EVs had to charge at this point it would mean network companies would have to build much larger networks to accommodate the demand. “But the fact that charging only takes place for some of the time means it’s possible to

Oracy Limited was founded in 1999 and since then has become one of the leading mobile telecommunications experts in the UK and Ireland. We work with a number of industry-leading global companies, such as Vodafone, Huawei and EE. We have recently branched out into the electric vehicle charge point installation market and since then have installed a wide range of models nationwide. We are approved by the government to install both workplace and home charge points and work with a number of manufacturers, including EO, EV Box and Rolec. As we are a government approved installer, we therefore have access to

Safe EV Charging

If charging from a 13A mains socket from home, ensure the wiring in the property has been checked. Old wiring may not be able to cope with the demand from charging your vehicle overnight

move charging activity away from peak hours. That means the existing network can accommodate the additional demand, which is good news for reducing the infrastructure costs.” Smart charging – where Western Power Distribution (WPD) managed when the EVs were charged – was introduced in two phases: unseen and with apps that enabled driver interaction. The trial proved that smart charging was technically feasible but it also showed that drivers’ charging behaviour did not change. The third part of the Electric Nation trial introduced simulated Time of Use tariffs. More than 60 per cent of participants switched their charging time away from peak periods, with the majority choosing the ‘minimise cost’ option. This worked best when they had some form of app that made it easier for them to take advantage of cost savings without having to change plug-in times or set charging timers on their EVs. “Smart charging is important to prevent mass adoption of Time of Use tariffs creating a new peak,” said Roger, “but the combination of tariff and smart charging has the benefit of providing the lowest-cost charge for customers and ensuring that demand can be moved away from peak hours, which means our existing network can cope with the extra load the move to EVs will create.” L FURTHER INFORMATION www.electricalsafetyfirst.org.uk

the EVHS and WCS grants, meaning you could save £500 on each of your home or workplace charge points. The UK Department of Transport estimates by 2020 1 in 5 cars will be electric, meaning that there will be over two million electric vehicles in the UK. If you wish to use EV charge points to generate a new revenue stream for your business, you are not eligible for a government grant; however, you are able to earn the money invested into your EV charge point back by charging your customers to use them, either via an app, token or card payment. You can set your own rate to charge customers’, giving you more freedom with the profits you are able to make.

For advice on which charge point model would best suit your needs, or to arrange a free, no-obligation survey, please email: ev@oracy.co.uk or call 01246437220.

Issue 122 | GREENFLEET MAGAZINE

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Schneider Electric eyes leading role in solving the EV energy dilemma With extensive experience of operating in the EV market, Schneider Electric is driving innovation through scalable and adaptable hardware and energy management solutions that offer unrivalled value to your business. Danny Winn, business unit director for eMobility at Schneider Electric explains strategic partners across four main channels – end users, strategic partners, EV expert installers and EV expert distributors. We can already boast various large corporates, major utilities and contractors among our growing network of close partners.

Danny Winn, business unit director for eMobility, Schneider Electric

Even as electric vehicle (EV) technology enters the mainstream, the market feels like it is already reaching peak saturation. If you are the owner or operator of a facility or development, you are no doubt bombarded by technology providers offering what appears to be the ideal EV charging solution. Yet the majority offer little more than the bare minimum in terms of functionality. Often, they are built on closed systems with closed protocols, locking you into a single vendor for the solution’s lifetime. If at any stage you want to change or upgrade with another provider, you may have little choice but to rip out the existing system and start back at square one. At Schneider Electric, we want to pioneer a new approach. We have extensive experience of operating in the EV market, and during that time, we have built more than 100,000 charge points globally under our EVlink brand of smart charging solutions. We differentiate ourselves by delivering solutions that are interoperable, built on a mix of hardware and software that provide scalability and adaptability. Our charging stations are also smart and connected, empowering you with unrivalled control and insight. EV charging provision may seem like a burden, but with the right approach you can turn it into an opportunity.

Driving innovation As the scale of EV demand grows, it presents an ever-increasing energy dilemma for the infrastructure charging systems it depend on. Schneider Electric has gone further to solve this, making R&D investments to develop world-class energy management systems that are smarter and more efficient. Using available unused capacity from connected real estate, our dynamic energy management solutions allow large building owners and managers to unlock the hidden capacity of their power infrastructure. This enables the adoption of EV charging at speed and scale. These new energy management packages, coupled with truly smart and interoperable hardware, offer customers future proofing, reliability and efficiency that cannot be matched. Schneider Electric has ensured its systems are open protocol, allowing freedom of choice on back office management systems and tariffs. In addition, we have designed our products to communicate via BMS open protocols to allow seamless integration with existing building management systems, minimising any disruption caused by the adoption of EVs.

Invest for success We have sought to expand our EV business with new investments in talent, such as a dedicated specification and technical team, to help us define the strategy for the UK. Central to our approach is the Schneider Electric EV Expert programme. This is a partner model that is helping us develop an ecosystem of

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An example of our work has been a recent project to install 50 x 22kW charge points in an existing underground car park at a flagship site of one of the UK’s largest property managers. Despite the building being less than 15 years old, as well as very modern in its design and systems, there was no power provision for EV charging. Schneider Electric’s dynamic energy management solutions have unlocked existing capacity, without the need for a dedicated supply, to support over 1 MW of new energy demand on the site. We’ve helped the customer avoid hundreds of thousands of pounds in new connections and infrastructural upgrades. A roadmap for the future Schneider Electric’s EV business has seen immediate and impressive success since last year’s UK re-launch. In only sixth months between 2018 and 2019, our business tripled and we expect it to quadruple this year before doing the same again in 2020. Our success to date, however, is only the beginning. With a diverse and broad network of expert partners, as well as a package of solutions that offer so much value, Schneider Electric EVlink has a promising future. L FURTHER INFORMATION To keep up to date, follow Danny Winn on LinkedIn or visit: www.schneider-electric.co.uk

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Advice for small and medium-sized enterprises facing fleet management challenges Brought to you by

GreenFleet DRIVING THE SWITCH TO CLEANER FLEETS

22 Fleet management The SME fleet management role requires a credible level of skill, knowledge and experience, supported by attention to detail, numeric accuracy and people management skills, writes ICFMâ&#x20AC;&#x2122;s Peter Eldridge 25 Telematics Telematics is being widely adopted by SME fleets to give them the journey and driving information that enables better decision-making for a more efficient and cost-effective fleet

31 Breakdowns & SMR Service, maintenance and repair (SMR) is often cited as a burdensome task for small to medium businesses, but it is an essential component in running a cost-effective and safe fleet

34 SME panel of experts Londonâ&#x20AC;&#x2122;s van scrappage scheme targets micro-businesses. How else can SMEs be supported with preparing for Clean Air Zones and other changing air quality regulations?

Issue 122 | GREENFLEET MAGAZINE

SME Guide Written by Peter Eldridge, director, ICFM

FLEET MANAGEMENT

Managing an SME fleet effectively The SME fleet management role requires a credible level of skill, knowledge and experience, supported by attention to detail, numeric accuracy and people management skills. ICFM’s Peter Eldridge shares some advice on how best to manage an SME fleet The challenges associated with managing small to medium fleet enterprise businesses (SMEs) have remained fairly consistent over the past few years – linked to a desire to enjoy large fleet benefits in terms of reduced cost and high service delivery but achieving it with a reduced level of available funds, resources and perhaps skill and knowledge. The advent of Big Data has provided opportunities for SMEs to enjoy greater levels of attention as a customer segment, driven largely by a supply chain and vehicle leasing broker market that can now provide elegant and sophisticated service offerings within an economy of scale cost base. This has produced two main outcomes: SMEs now have the opportunity to ‘punch above their weight’ in respect of managing their vehicle fleets and achieve much improved levels of operational efficiency. And conversely, with some SME fleets, this raised level of service offering has actually become a millstone and exposed gaps in their fleet operations, mainly involving skill and knowledge.

This article is focussed on providing guidance for options one or two above and the key message is that if the decision is to manage the vehicle fleet in-house, it requires a dedicated approach to do the job effectively, which cannot be successfully fulfilled by delegating the responsibility to an existing employee, with inadequate skill levels, on an ad-hoc basis. The SME fleet management role requires a credible level of skill, knowledge and experience, supported by a penchant for attention to detail and numeric accuracy, coupled with a talent for negotiation and people management skills.

Who manages the fleet? Vehicle acquisitions What are the fleet management options Managing a vehicle fleet in 2019 and for an SME fleet? There are only three beyond involves the usual ‘hygiene’ options: Employ a dedicated fleet factors that include: vehicle contracts; manager or administrator; nominate service, maintenance and repair (SMR); an existing core business director or mileage management; short-term hire; manager to take on the role, or outsource breakdown assistance; insurance and to a fleet management company. incident management; driver support The decision regarding which option is services; cost control, and so on. But, in best, will of course depend on addition there are more strategic the nature and structure goals that need to be achieved. of a business; the size The first of those goals T here and composition of is to develop a vehicle can be the vehicle fleet; acquisition policy that s ubstitu no and the economics has specific emphasis on associated with environmental control and skill, kn te for owledg each option. But meets with government and exp e the fundamental policy to end the sale e rtise especia rule is that no two of new conventional ll businesses are petrol and diesel cars fleet m y in the SME anage alike and the final and vans by 2040, as it decision must be is has already announced. sector. ment geared to achieving Although the Government’s the best outcome for advisory Committee on Climate the business in question. Change is calling for that date

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

to be bought forward to 2030 or 2035 at the latest, potentially perhaps just two fleet vehicle replacement cycles away. In addition, by 2030 the government also expects 50-70 per cent of new car sales to be ultra-low emission vehicles (less than 75g/ km of CO2) and up to 40 per cent of vans. With just 2.6 per cent of cars registered in 2018 being ultra-low emission and only 0.5 per cent of vans, the clock is already ticking. The availability of ultra-low emission vehicles is playing catch-up with those targets and to make matters even more difficult, last year’s implementation of the Worldwide harmonised Light vehicles Test Procedure (WLTP) emissions and fuel economy testing regime and the level of uncertainty surrounding Brexit, has contributed to lengthy vehicle manufacturer lead times for low and ultra-low emission vehicles. So planning a vehicle acquisition policy in the current business climate is not easy and given all the current contributory factors, SMEs, like their larger fleet peer group, will need to take a prudent and pragmatic approach if they are to succeed. SME fleet managers will have to analyse their vehicle fleet in sectors: cars and LCVs; essential users/‘perk’ allocation; high and low mileage; and usage trends (particularly the low mileage segment). Then they’ll have to take a ‘blended’ approach to aligning the best mix of powertrain options: battery electric vehicles; ultra-low emission vehicles; and petrol/diesel. Consideration of the alternative options include cash for car; grey fleet; short-term hire; extending the current vehicle fleet retention policy (not the highest polluting vehicles). For SMEs in particular, building a case for a vehicle acquisition policy running up to 2030/2040, places the spotlight on the need for a fleet responsible individual who has the tenacity and time available to deliver a successful outcome. If we now add into the mix the other elements involved in operating a vehicle fleet vehicle remarketing; finance; legal compliance; administration; people management; duty of care etc, it goes without saying that there can be no substitute for skill, knowledge and expertise especially in the SME sector. Training matters So how can an SME achieve what is required? – well there is no better place to start than the ICFM. Whether you have direct responsibility for the fleet operation, or indirect involvement as an HR or finance team member, the Introductory Programme leading to

the Introductory Certificate in Car Fleet Management is designed specifically for new entrants to the fleet industry and is a cost effective and ideal entry level. In addition to providing a background on how vehicle fleet management has evolved, the programme will enable new entrants to understand what’s involved in developing a fleet policy relevant to the needs of the business; the importance of ‘asset management’; provide a pointer to the changing face of fleet-related roles in the future; and provide a ‘blueprint’ for the key competence elements involved. For SME employees who have more experience in the management of a vehicle fleet and a desire to achieve an even greater level of aspirational achievement, the ICFM ‘Certificate’ Programme leading to the Certificate in Car & LCV Fleet Management is the perfect choice, since it is recognised in the industry as the ‘benchmark’ standard for those employed in the management of a vehicle fleet. The ICFM Certificate Programme is an effective and enjoyable means of attaining the externally endorsed Certificate in Car & LCV Fleet Management qualification and covers five competence elements which include: managing communication and relationships and the core principles of administration, finance, acquisition and vehicle remarketing and the law Tips for managing your SME fleet Finally, below are five top tips to bear in mind when considering how to best manage your SME fleet: Firstly, acknowledge the fact that managing an SME fleet is an important sector within the fleet arena. Be mindful of the financial and operational benefits that effective fleet management at SME level will deliver to the business. Maintain market trend awareness and embrace change - don’t resist it. Take on board the skill, knowledge and expertise requirements that are essential for the effective operation of a modern SME fleet (the ICFM can help here). The area of SME fleet management is a complex one and I have covered some of the key factors involved. Would you like to know more? For expert help and advice join the ICFM, which provides access to a wide range of fleet operational best practice tips. L FURTHER INFORMATION administration@icfm.com www.icfm.com

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DFM: ‘The world’s oldest start-up?’

SME Guide

SME fleet managers should develop a vehicle acquisition policy that has specific emphasis on environmental control and meets with government policy to end the sale of new conventional petrol and diesel cars and vans by 2040

Patricia Wolfe, MD Daimler Fleet Management UK

Daimler Fleet Management (DFM) is evolving its approach to fleet management and vehicle leasing. It seamlessly merges over 130 years of automotive heritage with the agility and innovation of a modern-day startup mentality. Late in the 19th century, Karl Benz and Gottlieb Daimler were credited as the pioneers of an invention that changed the world, the automobile – this inventive tradition still lives on in the companies which bear their names. DFM constantly strives for new ways to make things work better. Not just financing vehicles and managing fleets but working with customers to find bespoke, innovative solutions to deliver business objectives. The changes at DFM UK include new appointments, enhancements to operating processes and thinking differently about customers’ requirements, especially SMEs. Having deployed the initial solution DFM then works with the SME to ‘bolt-on’ value‑add products, continuously enhancing their fleet efficiencies in real-time and supporting their business growth. In other words, DFM is effectively a 130-year-old business acting like a start-up. Agile working is a mindset approach which many customers are embracing. In some circumstances, rather than structuring and delivering an entire fleet policy including the additional products and services in one wave, certain deliverables can be fast-tracked, actualising savings and efficiencies from day one. Why allow items ‘B’ and ‘C’ to delay ‘A’ if the benefits of ‘A’ can be realised sooner? DFM is so confident that we can improve the performance and efficiencies of your fleet that we will complete a ‘Fleet Fit’ health check of your fleet requirements completely free of charge, ensuring that your fleet and related services are in line with your current and future business objectives. FURTHER INFORMATION Dfm-uk@daimler.com 01908 697468

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The tools for better fleet management

The benefits of telematics One key question to answer in the quest for telematics success is why the need for a telematics system? The answer will vary depending on whether the question comes from the finance department, HR, the fleet manager, drivers or even a union representative. However, in most cases, the issues covered fall into four broad themes, all of which are interlinked: mileage and time management, fuel and emissions, safety and security and financial benefits.

SME Guide

TELEMATICS

Telematics is being widely adopted by SME fleets to give them the journey and driving information that enables better decisionmaking for a more efficient and cost-effective fleet Vehicle telematics is based on the idea of gathering, storing, and transmitting information about the vehicle for monitoring purposes. This information can be used to analyse vehicle performance, vehicle conditions, driver performance, and more. However, all the vehicle data in the world is utterly useless unless it is used to inform better decision making. How the data is analysed, and the subsequent decisions it informs are key to a successful implementation. Telematics devices are unobtrusive, passive observers that are located out of the way of the vehicle controls and the drivers sight line. These monitors collect information and transmit it back to a data collection point, usually back at the office. The devices themselves come in a number of forms, allowing fleet managers to use what is best for them. Much of it depends on how the data will be collected, and the available budget.

Mileage and time management Telematics shows where vehicles are being driven and how they are being used. This can benefit the business in a number of ways. Tracking systems are able to identify a vehicleâ&#x20AC;&#x2122;s location, so the right vehicle Mobile only and Bluetooth Assist telematics and employee can be sent to the closest are cost-effective but are lacking in job, by the most efficient route, guided capabilities. Along with 12V connectors, they by real time traffic information. can be easily transferred from one vehicle Automatic mileage updates can be to another, so they can be kept with drivers received by managers or suppliers, such if users are regularly switching vehicles. as leasing companies, to enable proactive Onboard Diagnostic (OBD) devices plug into servicing and timely replacement of the OBD port on the underside of the steering vehicles. Telematics can help automate column. They will have Bluetooth or even manual and time-consuming processes, cellular capabilities and will be able to collect such as timesheets, to make them more a richer set of data to be used. They can be accurate and reduce paperwork. moved from one vehicle to another, but it is The system will automatically log a little more difficult than with mobile-only vehicle use and location along with the systems and 12V connectors. They are generally start and end of the working day. the best route for most fleets. This information can then be Original Equipment By imported into payroll systems. Manufacturer (OEM) Business or private products are very capable, having mileage can be separated but are also the most more a to improve the accuracy expensive, and are vehicle-ccurate, of expenses claims. permanently fixed s p e cific data, a to the vehicle. can qui company Fuel and ckly ide emissions nt where Telematics can action ify assist in planning needs t ob more fuel-efficient taken e journeys, and encourage less aggressive driving, resulting in lower fuel bills. In addition, systems can report on the fuel economy of specific vehicles. In a recent study of company car drivers, a telematics system identified a 50 per cent difference in fuel economy being achieved in identical cars over similar journeys. Much of the excess fuel use was down to driving style, including excessive speed and harsh acceleration. This level of insight isnâ&#x20AC;&#x2122;t possible with other fuel management systems, such as fuel cards, mainly as the process involves the driver accurately recording mileage when filling up. By having more accurate, vehicle-specific data, a company can quickly identify where action needs to be taken, such as with fuel efficient driver training. By improving fuel economy and reducing time spent idling, a business can reduce its total carbon emissions, a key consideration as businesses are increasingly required to provide carbon reporting as part of their annual results. E

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 Safety & Security Telematics can provide the information needed to improve safety, reduce accidents and combat vehicle crime. Some systems can clearly identify speeding, harsh braking and acceleration, sudden steering changes, over-revving and hours of vehicle use. This information can be used to pinpoint safety issues so drivers and managers can be trained and educated. Studies have shown that for each 1mph reduction in average speed, accident frequency reduces by six per cent. Typical own damage costs rarely fall below £1,100 per claim, while average insurance claims including third-party damage and injury claims can be more than £4,000, a good reason to manage vehicles using actual and real time data. In addition, telematics can act as a security system, with unplanned vehicle movements raising an alarm and pinpointing the vehicle so police can be directed to its location. Personal safety can be enhanced for lone workers too, as telematics can track their location and vehicles can be fitted with panic alarms in case of emergency. Financial benefits Introducing telemetry is no different than investing in any other business system, it has to make business sense. Typical figures suggest that through better scheduling, higher productivity and increased vehicle utilisation, operating costs can fall by ten per cent. By covering fewer miles, reducing speeding and improving driving style, fuel use and CO2 emissions can be cut by 15 per cent. Finally, reduced speeding and greater levels of driver awareness could cut crash costs by up to 50 per cent. By using telematics to record drivers’ hours, unnecessary overtime claims can be reduced, often by thousands of pounds, while there are other fringe benefits too. Because telematics systems provide accurate location and time information, a number of companies claim they are successfully challenging fines for parking infringements. In addition, insurance companies may be willing to consider a reduction in premiums. The telematics system The data that a telematics system can provide comes from three key sources. The first is from GPS data, which calculates location and speed, the second is from a direct link to the vehicle that delivers information on any aspect of performance it is collecting, which can include oil temperature and even whether doors are open. Thirdly, some systems have sensitive instruments that measure g-force to identify harsh braking, steering and acceleration.

Telematics devices do suffer from some limitations though and knowing these limitations may help determine what is the best choice for your vehicles. Satellite-based and cellular-based services can lose coverage if driven far enough out of the way. That said, the data can be stored by the unit and transmitted when it is back in service range. This may limit real-time tracking but should not limit any other part of telematics usage. Even the most committed supporters of telematics technology will agree that you can have too much of a good thing. A vehicle tracking system isn’t just a onebox solution, as it can provide a myriad of reports and charts that can either go into minute detail or just provide a graphical overview of key issues related to fleet use. If fleet managers choose wisely, they will have absolute clarity on their fleet. Choose poorly and information will be irrelevant, too detailed to use or in such great volumes that any benefit is lost in a sea of figures. Introduction is key Careful introduction of this technology is key to ensure staff feel supported rather than feeling spied upon. As company vehicles are almost certain to have an element of private use, the challenges of persuading drivers to accept the technology and the changes it might bring are much more significant. That doesn’t suggest it can’t be achieved, as thousands of cars are tracked already, but there has to be a much clearer benefit for the driver. One solution can be to focus on a de-personalised service that offers the benefits of telematics at the most basic level, with automatic reporting of vehicle mileage and driver admin, giving them more time to do their jobs. If a business is leasing a vehicle, and depending on the supplier chosen, this basic level of telematics may be supplied as part of the package. In some cases, it can be extended to business and private mileage capture to help automate expense reports. Stolen vehicle tracking can also be added. Focusing on the personal benefits, such as improved safety and security have been shown to make a positive impact on staff attitudes. The most important factor is to take staff along on the journey by explaining the issues, seeking feedback and addressing genuine concerns with facts and case study support. A good supplier will have endless evidence of implementation and use strategies that have worked for other clients. Trust those that come with a proven track record and are happy for you to speak to some of their clients. L

SPONSOR’S COMMENT

Keeping SMEs moving with the AA

SME Guide

Telematics can provide the information needed to improve safety, reduce accidents and combat vehicle crime. Some systems can identify speeding, harsh braking and acceleration, and sudden steering changes

Stuart Thomas, director fleet & SME services, the AA

It may be a cliché, but we are in a period of unprecedented change within the transport arena. Indeed, SMEs could be forgiven for feeling frustration at the seeming lack of consistency in terms of low emission vehicle availability and government policy on air quality and engine standards, not to mention tax regimes and technology roll-out. Of course, with uncertainty comes opportunity. SMEs are in prime position to take advantage of the multitude of data, smart solutions, innovative mobility, connectivity, electric and alternatively-fuelled vehicles. Real-time information is not an aspiration but an expectation and, with data and insights, SMEs can take a smart approach to vehicle selection, route planning, driver behaviour and supplier management. As an example, the Mayor of London’s £23m van scrappage scheme for micro-SMEs (those with fewer than ten employees) provides business owners with the chance to refresh their vehicle mix, introducing cleaner Euro 6 vans to avoid air quality charges. However, there are more than 5.5m SMEs in the UK, of which two fifths (37 per cent) operate vehicles, and so there is significant opportunity for much wider scale change. Connectivity will play a big role in the vehicle landscape, with smart safety solutions paving the way towards autonomy; predictive and preventative maintenance providing greater links between vehicles and garaging networks to better manage SMR; and vehicle to infrastructure (V2X) technology helping to manage traffic flow and congestion. Indeed, business owners may be tempted to put fleet management at the bottom of the to-do list. After all, there are plenty of competing priorities. But, there will always be a role for the individual business owner or driver in the mix, and it pays for SMEs to keep up-to-date with the latest fleet management opportunities. FURTHER INFORMATION www.theaa.com

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To be more competitive, make sure you get fleet fit

The challenges involved in managing the company fleet have never been more complex; and yet the responsibility for doing so will often fall upon executives without any specialist knowledge or experience. Finance directors, HR directors, general managers can all find themselves tasked with maximising the efficiency of car, commercial or often mixed fleets. When the common corporate objectives are to improve fleet performance while reducing costs and maintaining a car policy that will attract and retain staff, where do fleet managers start? How do they analyse their current fleet efficiency and develop a strategy that will deliver a higher-performance fleet?

The answer could be available from Daimler Fleet Management which is introducing a new level of fleet management support called “Fleet Fit”. The service incorporates a complete Fleet Fitness test that will review every aspect of a company’s current fleet performance to identify areas for potential improvement and savings. According to Daimler Fleet Management’s managing director, Patricia Wolfe: “We have a highly experienced team of fleet management specialists. They act as personal fitness coaches who will work with our customers to review the results of their fitness tests and create bespoke development programmes to improve their fleet performance and make them even more competitive.”

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These Fleet Fitness coaches use the independent and highly rated Deloitte software as part of their testing and also to establish the financial savings a company can achieve, especially in terms of whole life costs. They then provide ongoing coaching to help the company implement their fleet development programme. As Patricia Wolfe explains: “When a company becomes ‘Fleet Fit’ they will have the agility and capability to respond better to future changes in legislation, taxation and technology, while maintaining maximum fleet efficiency.” Working with their fitness coaches will also enable fleet operators to increase their fleet management skills and better understand the new vehicle technologies and opportunities available. Daimler Fleet Management believe that Fleet Fitness helps to reduce fleet costs and risks, increase fleet reliability and make fleets more efficient. Whatever the size of your fleet, if you want it to become leaner and fitter, perhaps you should look at getting Fleet Fit with one of Daimler Fleet Managements fitness coaches. For more information and to book a fitness test, visit www.daimler-fleetfit.co.uk. FURTHER INFORMATION www.daimler-fleetfit.co.uk

Reducing vehicle downtime in SME fleets

SME Guide

BREAKDOWNS & SMR

Service, maintenance and repair (SMR) is often cited as a burdensome task for small to medium businesses, but it is an essential component in running a cost-effective, safe and compliant fleet There were 5.7 million SMEs in the UK in 2018, which was over 99 per cent of all businesses, according to the House of Commons Business statistics. Many of these businesses rely on a vehicle to conduct their business, and breakdowns can cause havoc in terms of lost times, missed appointments and delayed deliveries. The most common RAC SME callouts relate to batteries, including flat or end-of-life batteries. In total, battery issues equate to 18 per cent of all RAC breakdown jobs for small businesses. Tyres are responsible for generating the second biggest volume of call-outs, making up 13 per cent of all breakdowns. And, with many vehicles now not having a spare wheel, a significant number of these will be ‘puncture no spare’ jobs, which would typically be very difficult for a business to get fixed without the support of a breakdown company. Clutch problems are the third most common SME vehicle breakdown seen by RAC patrols. While only five per cent of RAC small business call-outs relate to clutch faults, they usually require recovery to a garage for repair.

While breakdowns are an unfortunate reality of running a fleet, having robust Service, Maintenance and Repair (SMR) procedures in place can keep vehicles in good health and on the road. But SMR is also cited as one of the more problematic areas for SMEs, often because of the lack of time they can give it, as many SMEs also have other roles aside from managing vehicles.

What’s more, well maintained vehicles are generally cheaper in the long term. This is because they tend to perform at optimum efficiency, and because minor problems can be rectified before they become major ones if they are identified early on. Unplanned maintenance increases vehicle downtime and costs. Plus, a vehicle with a full set of service stamps in its history will usually be worth substantially more when the time arrives for it to be sold.

Legal responsibilities Organisations running fleets have a legal SMR policies responsibility under their duty of care to To get their SMR procedures in place, fleet keep their business vehicles in roadworthy managers need to establish an SMR policy. condition. If there is a serious accident According to Allstar Fuel Cards, who and vehicle condition is found to be a have published a guide on the subject, you factor, the owners and directors can be should firstly consider how often prosecuted and even imprisoned. servicing is recommended by Accurate records of vehicle the manufacturer and what documentation such as MOT Busines kind of suppliers you test certificates, insurance s e s running need to use – franchise certificates and Operator fleets h dealers, independent Licences should be legal re ave a garages or fast-fits? available in one place Asks yourself if in preparation for audit under t sponsibility h e drivers regularly and inspection if needed. i r d uty of care to inspect their vehicles, k e e p their busine and if so, how often? Have you provided in a roass vehicles dworth them with guidelines E

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Well maintained vehicles are generally cheaper in the long term. This is because they tend to perform at optimum efficiency, and because minor problems can be rectified before they become major ones if they are identified early on  on making an inspection and created a robust feedback mechanism? Replacing key wear items such as tyres and brake pads often involves making a choice. Can you set a policy in this area? For example, you could decide that tyres will be replaced when there is 3mm of wear left. Fleet managers should also think about what management tools might be useful in managing the fleet, such as spreadsheets, white boards and specialist fleet software systems. If you are investigated by the Health and Safety Executive in the event of a serious accident, an auditable trail to prove that a vehicle has been kept in good condition will form an essential part of your defence. Finally, the value for money from suppliers should be considered, as well as whether you can gain greater control over payments and billing. Suppliers A supplier should be chosen that best fits your business and driver, including its location. You will need to consider if the supplier offers good value, how available they are, and if a courtesy car will be available. Can they carry out the work required to a good standard? If you have a fleet of alternatively fuelled vehicles, do they have the skills, equipment and spares to deal with it? Finally, you should have a good relationship with the supplier, so that they can be relied upon to fix a vehicle quickly, and to charge fairly and transparently. Managing drivers The amount of driver’s responsibility for SMR should be considered. In some smallmedium business fleets, especially those that operate on a national basis with a central head office, the entire responsibility for

maintaining vehicles is passed over to the driver – they monitor when a vehicle needs servicing or repair, choose the supplier then make the payment and reclaim the cost. Passing responsibility to the driver is normally not a good way of managing SMR, simply because it means that you are abdicating control in virtually every area. There is no way of ensuring that the work being carried out is actually needed, that suitable suppliers are being used, that you are meeting your legal responsibilities such as timely MOTs and servicing, that the duty of care is being met, that consolidated invoices can be supplied, and that the business is not being defrauded. Instead, Allstar Fuels believes that the person responsible for managing company vehicles should keep records that indicate when service and maintenance is due, and should stay on top of the administration for vehicles on the company’s behalf, keeping control of all the key aspects. However, it is very important that drivers are made responsible for monitoring the basic condition of their vehicle on a day-to-day basis. Value for money It can be difficult to know whether you are getting value for money when it comes to the cost of servicing and maintenance. Research from Allstar Fuel Cards shows that fleet budgeting for SMEs is based largely on experience and expectations of what seems acceptable, although this is usually based on nothing more than personal opinion. The fact is, for many small-medium businesses, researching this kind of pricing is not easy. You can try looking online for typical prices but comparing information in a like-for-like manner is tricky. In many ways, the best that you can do is follow

SME Guide

the tried‑and-tested formula of asking for three quotes from different suppliers, even though this can be time-consuming. Approving work One of the most difficult financial aspects of SMR is that unforeseen jobs will often occur during planned maintenance that require approval. For example, during a routine service, it could be identified that new tyres are needed. Research from Allstar Fuel Cards shows that 65 per cent of managers with company vehicle responsibility in small-medium businesses manually approve all service, maintenance and repair work by phone or e-mail, but that they find it, understandably, very time-consuming. Other methods of approval are occasionally used. Some have a key system of control that requires approval if any bill is more than £500 for example, but a few simply pay whatever bills appear. The fact is that like trying to ascertain whether an SMR price is good when booking a job in the first place, assessing the fairness of additional work is simply very difficult and most businesses have little choice but to agree. Allstar has conducted analysis of transactions and found that around 11 per cent of jobs completed by garages are not needed – and that these jobs cost an average of £48. Payments Paper invoicing systems remain the norm when it comes to paying for car and van maintenance, according to research from Allstar Fuel Cards. However, this is a process that is prone to error, time consuming and even open to employee fraud. A much better choice is to use electronic, centralised invoices from suppliers, which will allow you to process payments quickly and easily, as well as seeing what work has been completed at a glance. A few companies still use driver payand-reclaim which is not recommended. It leaves the driver out of pocket for a while and the employer open to fraud, with little centralised control. A key point is that you need to ensure that all invoices you receive are genuine VAT invoices and are fully HMRC compliant. Management tools There are a wide range of software management tools available on the market for small-medium businesses that provide a good management structure for looking after SMR and all other aspects of company vehicle management. The quality and sophistication of software management tools vary quite widely, as does their cost and effectiveness, and the initial setting up process can be quite timeconsuming. Once in place, though, they will deliver a level of management control and information that is simply not possible using a spreadsheet or paper systems. L FURTHER INFORMATION www.allstarcard.co.uk www.rac.co.uk

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SME Guide

EXPERT PANEL SME FLEETS London’s van scrappage scheme targets micro-businesses in the acknowledgement that smaller firms will be hit hardest by penalty charges or the cost of upgrading their vehicles. How else can SMEs be supported with Clean Air Zones and other changing air quality regulations? Our panel of experts discuss While research suggests that many SMEs are in favour of Clean Air Zones as a response to air pollution, the reality is that smaller firms will be hardest hit by penalty charges or the cost of upgrading their vehicles to meet emissions standards. Seventy-five per cent of SMEs have said they are in favour of Clean Air Zones (CAZs), according to last year’s Close Brothers Asset Finance Business Barometer. London’s Ultra Low Emission Zone (ULEZ) came into force in April 2019. Diesel cars and vans that do not meet the latest Euro 6 standard have to pay £12.50 a day to drive in central London. Understanding that penalties for entering clean air zones can be unfair to smaller businesses, the Mayor of London has introduced a scrappage scheme to help businesses with fewer than 10 employees get rid of their polluting vans so they can adopt ULEZ-compliant vehicles. These grants reduce the cost of an electric van by up to 20 per cent or a maximum of £8,000. Businesses and charities will have to be registered in London or have been frequently observed driving in the Congestion Charging Zone. At the time of launching the scheme, the Mayor urged central government to match-fund the scrappage scheme so it could support other Londoners. “There is no question that change needs to happen to reduce the impact of emissions on air quality,” comments Sam Sterry from Europcar Mobility Group UK. “But it’s vital that there is clear recognition that such change can have a pretty significant impact on the finances – and maybe even survival – of small businesses.” Europcar Mobility Group UK conducted research ahead of the launch of the Ultra Low Emission Zone in London and found that its potential impact on the smallest businesses was not particularly well understood or prepared for. Half of small businesses (with one to nine employees) that use vans hadn’t made plans, even as late as February. And more than one in eight small businesses weren’t sure

Sam Sterry, head of SME, Europcar Mobility Group UK Since Sam joined the business in 2017, she has been working hard to give SMEs a wider choice of solutions to mobilise their business, capitalising on the growing portfolio of multi-modal mobility services available from the Group. Sam has a background in the SME finance sector – having previously worked for Lloyds Bank and Lex Leasing. Stuart Thomas, director fleet & SME services, the AA With more than 20 years’ experience in the fleet sector, Stuart’s extensive knowledge of the industry comes from roles across contract hire, disposal and related fleet services. Stuart is responsible for managing all aspects of the AA’s fleet and SME clients, including some of the UK’s largest fleets and most diverse business users. Duncan Chumley, chief commercial officer, Daimler Fleet Management (DFM) Duncan Chumley is the chief commercial officer for Daimler Fleet Management (DFM). Before joining DFM, Chumley worked as managing director of Free2Move Lease UK and as sales director of Citroen Financial Services. DFM is a multi-marque vehicle leasing company that procures, funds and fleet-manages for public and private sectors businesses of all sizes. what the requirements of the ULEZ were. More than a third (34 per cent) of London based businesses said that these regulations will be the single biggest transport issue that affects their business in 2019. Despite this, at the beginning of February only 36 per cent said that they fully understood the impact in terms of vehicle emissions. Sam comments: “This lack of understanding is particularly concerning as the majority of small businesses (88 per cent) surveyed use their vans at least six days a week. For businesses travelling through the ULEZ every day, driving non-compliant vehicles could add up to over £4,500 a year, per van.

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“Initiatives such as scrappage scheme already launched in London, are therefore crucial.” For micro-SMEs, managing vehicles is very rarely the focus of the business. As such, anything that can be done to make life easier and allow organisations to get on with their day-to-day activities is positive, believes Stuart Thomas from the AA. Stuart says: “The scrappage scheme gives smaller organisations a route to cleaner Euro 6 vehicles, the ability to avoid air quality charges and the chance to remain cost-competitive without having to pass on fees and fines to customers.”

that many manufacturers have kept the want to face the financial outlay for a new scheme going without government funding. vehicle or commit to a lengthy lease, vehicle “The London scheme has its benefits, for rental provides a genuine alternative.” example the allowance can be used to offset leasing costs, not just outright purchase. But The role of hybrids to have any impact on city wide emission Given the urgency of the need to reduce levels, the scheme needs to be CO2, Emissions Analytics has rolled out to larger businesses argued the case that fleets g Tryin and complemented with should adopt hybrids tric c improved incentives rather than waiting for e l e n a e r for vehicle sharing, an adequate supply of o f e b priority lanes for low fully-electric vehicles, vehicle ill help w g emission vehicles and saying they are 14 times n i y y bu er the h better education.” better at reducing realt e h w London’s scrappage assess e. Try and get world carbon dioxide l scheme can also emissions. So should are viab mo for an be used on rental SMEs adopt hybrids a de ount if they are still unsure and sharing services m a d e across London. about full electric? extend time of Sam explains Europcar Stuart Thomas comments: Mobility Group UK’s “While the past 12 months involvment in the scheme: have seen a rapid increase in the “We are offering discounts on midnumber of alternatively-fuelled vans week daily van rental for businesses being launched, the market is still tracking who take up the scrappage scheme but behind aspirational targets when it comes do not want to buy new vehicles or sign to the reality of actually getting hold of up to lengthy lease agreements. one. Between emissions testing regimes, “The same principle could be applied battery supply shortages and manufacturers elsewhere in the country. Whilst the cash sum focusing on their car product ahead of vans provided from vehicle scrappage could be and trucks, not to mention the loss of grants useful to go towards new vehicle acquisition, and other initiatives for hybrid vehicles, some businesses may decide to use those SMEs can be forgiven for not moving quickly funds for other purposes. If they don’t to update their commercial fleets. E

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Speaking about the air quality measures outside of the capital, Stuart adds: “There are more than 5.5m SMEs in the UK, of which two fifths operate vehicles (38 per cent), so the opportunity to make a significant impact on air quality and vehicle emissions clearly extends beyond the M25. We are backing calls for a nationwide scrappage scheme for cars, as well as gross polluters, and would like to see the government working with business organisations and local authorities to deliver greater consistency. “Improving UK air quality is important to everyone, but SMEs need to know that they will be supported through any transition. We believe that more needs to be done to relieve the cost burden for businesses and to change perceptions, demonstrating to organisations how easy it is to make the shift.” Scrappage schemes are a great start in helping SMEs to upgrade their fleets, however the current scheme in London has criteria that is quite strict, comments Duncan Chumley from Daimler Fleet Management. He explains: “The London scrappage scheme is only applicable for firms with under 10 employees and up to £632k turnover. They also need to provide evidence that the vans have entered the charging zone at least 52 times in the six months before 22 Feb 2019. So it is very limiting. “The original government scrappage scheme launched in 2009 was so successful

SME Guide

choice but if it isn’t adequately charged or is predominantly used for long journeys, you are affectively running a petrol engine and can expect to see little decrease in fuel costs. As with all fleet assets, PHEVs and other hybrids must be used correctly and efficiently in order to see the best results. “If you are unsure – consult your leasing company. Perhaps a long term demo of an electric or PHEV vehicle can be arranged to measure how feasible the deployment could be for your fleet.”

“In addition, while Clean Air Zones and other emissions-based charges have produced a geographic impact in areas like London, the lack of consistency in the roll-out and how charging will be applied means many organisations are deploying a ‘wait and see’ strategy before making any capital investment decisions. As a result, some businesses are hanging onto their older, more polluting vehicles for longer, which is having the opposite effect on air quality that we are seeking to promote. “The reality is that full electric will not suit every business need, particularly in relation to payload, range and aligning charging cycles with what might be a 24/7 operation. “For SMEs, it is important to weigh up the pros and cons for each type of vehicle; look at route planning, range requirements and the specific needs of your business, to make the decision that best suits your fleet.” Fleets may favour hybrids over full electric until the charging infrastructure is adequate enough. Sam comments on the Europcar Mobility Group’s research: “Over a quarter

(28 per ent) of the smallest businesses (under 10 employees) said that they don’t think the electric charging infrastructure is currently adequate. Plus, a quarter of businesses of fewer than 10 employees don’t feel ready to adopt electric vehicles, currently. Perhaps not surprising then that Mayor of London, Sadiq Khan, has set out his strategy for improved charging in the London area. But it can’t be London alone that sees this commitment. It has to be country wide before businesses become willing to take the step into the new drivetrain revolution.” Sam believes that hybrid vehicles are the right stepping stone to full electric. She says: “With the right training for drivers in terms of driving behaviour, they can make a real difference not only to emissions but to cost for SMEs that are always needing to keep a close eye on their budgets.” Duncan also believes that hybrid vehicles can be a good stop gap before full EVs are available; but only when correctly deployed. He says: “For urban usage or low mileage drivers, a PHEV is an obvious

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Making the switch to full electric For those that think full electric could suit their requirements, what advice would our panelists give before taking the plunge? All our panelists agree that trying an electric vehicle before you buy is the right way to go. Sam says: “At Europcar Mobility Group UK, we not only have a fleet of electric vehicles available for rent by the day; our E-Car Club all-electric car club also means that small businesses that want the flexibility of vehicle use by the hour can understand the efficiency of electric just by picking up a vehicle from one of the many dedicated bays around the country. “A key challenge for SMEs is how to keep their people and their products on the road – without making long term commitments in a time of legislative and economic uncertainty. Savvy businesses are turning away from vehicle ownership, instead updating fleet vehicles like they might a smartphone because they want the latest models with the latest technology.” Duncan points out that the longer you can try an EV, the better, to assess whether they are viable. He says: “Try and negotiate an extended demo so you can use and live with the vehicle for an extended period. You will not be able to establish if an electric vehicle is right for your business after a few laps around the block. What you need to be sure of is that the fuelling and infrastructure needed to run the vehicle is appropriate to your needs.” Duncan also points out that a clear charging policy is also needed, and fleets should consider telematics to better schedule the deployment and downtime of vehicles.” Stuart Thomas says that SMEs cannot afford to make mistakes, so they should take advantage of trials and consultancy support on offer. “Our advice for SMEs looking to move to full electric is to engage early with the vehicle manufacturers and charging companies. There is a real desire to share knowledge and experience, so SMEs should be able to take advantage of vehicle trials and extensive consultancy support when deciding which route is best for them. It makes sense to do a vehicle and route analysis, to decide which vehicles can be most easily replaced with full electric, and also where any charging infrastructure would be most effectively sited. “Ask as many questions as you need in order to feel comfortable with your decision-making, get financial buy-in from everyone involved, and make sure that drivers are part of the process as they will be instrumental to the successful transition.”

While Clean Air Zones and other emissionsbased charges have produced a geographic impact in areas like London, the lack of consistency in the roll-out and how charging will be applied means many organisations are deploying a ‘wait and see’ strategy before making any capital investment decisions. Admin burdens One of the major gripes from SMEs is the amount of vehicle management administration involved, generally because SMEs often don’t have the luxury of employing a full time fleet manager. Duncan believes that leasing firms can lift some of this burden off SME fleet operators. He says: “An SME may not have a dedicated fleet role. A leasing company like DFM can provide expertise, freeing you up to focus on your business. There is a lot to consider when running a fleet of vehicles; acquisition price, maintenance costs, tax, accident management, fines vehicle disposal and duty of care, to name but a few. This can be a real burden on SMEs both in terms of cost and time. Fleet management companies are set up to remove this headache so SMEs can focus on their core business. “Through whole life cost analysis and a broader consultation we can also identify where apparent cost savings in one area could actually have negative consequences elsewhere. A long term and rounded fleet policy can be developed that the SME might not otherwise have had the time or expertise to develop.” Stuart Thomas agrees that SMEs should get support from the industry. He says: “SMEs shouldn’t be afraid to ask their suppliers – lease companiess, insurers, roadside assistance providers – for help and advice. It is in everyone’s interest to keep Britain’s businesses moving, and we’d recommend

UK SMEs make their voices heard when it comes to policy and decision-making. “There is plenty of data and management information available for SMEs, but there are only as powerful as the people interpreting them. We’d recommend that SMEs bring on board experts to help them understand and act on the information at their fingertips.” Sam adds that ‘mobility’ has added another dimension to fleet management. She says: “Small businesses often do not have the time or resources to apply complex processes to manage employee mobility. This is another task to add to an already long list of administrative jobs that often fall to an already busy owner or manager who probably doesn’t have any fleet management expertise. Tackling this, Europcar has created a truly integrated multi modal solution which delivers a single point of access – and management – for all a business’s mobility needs, thereby reducing the pressure on a business to collect all the information themselves. Europcar One delivers the most efficient customer journey, from reservation creation, through the mobility service usage, to the point of invoicing. It gives customers a wide choice of booking options through a single login, whether it’s a taxi for a single trip or a six month rental of a brand new vehicle for project work. “Plus it delivers the insight to help businesses understand and analyse how the use of different mobility solutions is impacting financial and environmental targets.” L

Stuart Thomas Fleets need more encouragement to transition to alternative fuels or a new generation diesel engine. The AA is keen to do everything it can to help businesses make this move, as are several other organisations and business groups. There is plenty of information out there for SMEs who need support. However, sometimes it can all feel a bit overwhelming. We think that SMEs should seek out advice on the type of fuels available, what would best suit their needs, and information on the infrastructure and services currently available to help guarantee fleet compliance.

SME Guide

Final thoughts

Sam Sterry Try before you buy is absolutely the right way to go when it comes to electric – especially for SMEs who will not want, nor have the funds, to make a full commitment without understanding the implications of electric. At Europcar Mobility Group UK, we not only have a fleet of electric vehicles available for rent by the day; our E-Car Club all-electric car club also means that small businesses that want the flexibility of vehicle use by the hour can understand the efficiency of electric just by picking up a vehicle from one of the many E-Car bays around the country. Duncan Chumley An SME may not have a dedicated fleet role, instead relying on a manager from another discipline. A leasing company like DFM can provide expertise, freeing you up to focus on your business. There is a lot to consider when running a fleet of vehicles; acquisition price, maintenance costs, tax, accident management, fines vehicle disposal and duty of care, to name but a few. This can be a real burden on SMEs both in terms of cost and time. Fleet management companies are set up to remove this headache so SMEs can focus on their core business.

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Company Car Tax

No tax on zero-emission company cars The government has recognised the value of company cars in supporting the transition to zero emission vehicles by announcing that drivers of electric vehicles will not pay BIK in the next tax year. But does this go far enough? We look at the industry’s reaction In its review of WLTP and vehicle taxes, the government has announced that company car drivers choosing a fully electric vehicle will pay no benefit-in-kind (BIK) tax in 2020/21. This will rise to one per cent in 2021-22, and then return to the planned two per cent rate in 2022-23. For cars first registered from 6 April 2020, most company car tax rates will be reduced by two percentage points in 2020-21 before returning to planned rates over the following two years – increasing by one percentage point in 2021-22 and one percentage point in 2022-23. The government’s response document says: “Appropriate percentages beyond 2022-23 remain under review and will be announced at future fiscal events. The government aims to announce appropriate percentages at least two years ahead of implementation to provide certainty for employers, employees and fleet operators.”

BVRLA director of policy and membership, Background Jay Parmar said: “Recognising the value of At the Autumn Budget 2017, the the company car market in supporting the government announced that cars transition to zero emission technology is a registered from April 2020 will be taxed positive endorsement for our sector, showing based on WLTP figures. WLTP aims to be refreshing alignment between government’s more representative of real world driving environmental and fiscal policies.” conditions, compared to the “The Treasury is giving back some of the previous test known as unfair company car tax windfall it was the New European set to receive as a result of WLTP Driving Cycle Compa ny and providing some essential (NEDC). c ar drive extra visibility on future tax As reported r s choosin costs for those looking to emissions g a fully electr order their next vehicle.” would increase, pay no ic vehicle will Existing VED rates will be this could benefit maintained on introduction of impact VED (BIK) ta WLTP from April 2020. A call and company x in 202in-kind 0 the gov for evidence will be published car tax, which ernmen/21, later this year seeking views on is why the t announ moving towards a more dynamic government ced approach to VED which recognises undertook smaller changes in CO2 emissions. the review. E Issue 122 | GREENFLEET MAGAZINE

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Company Car Tax

 Lack of available EVs Whilst providing some tax relief to company car drivers is welcomed, some in the industry have highlighted issues. ICFM chairman Paul Hollick believes that the “slight incentive” to buy electric vehicles has failed to take account of the lack of availability of those vehicles in today’s marketplace. He says: “For fleets and company car drivers to truly embrace the plug-in vehicle revolution, the government needed to take account in reviewing tax rates of model launches and availability. Plug-in vehicles – and particularly zero emission models – remain a very niche product and what availability there is does not meet fleet and company car driver requirements in the majority of cases. “That will change over the next two or three years as more models from mainstream manufacturers become available. Therefore, the government needed to incentivise the take-up of zero emission and plug-in vehicles through the benefit-in-kind tax regime over a much longer period of time as by April 2022 tax rates will be back to where they were at April 2020.” ACFO’s director Caroline Sandall agrees that the limited number of zero emission vehicles available is hampering the success of this move. She says: “The number of zero emission cars currently available is miniscule and lead times are lengthy so the real value of the zero per cent rating will be extremely limited. Most major motor manufacturers have announced plans to introduce numerous plug-in models over the next 18 months and the government needed to take account of model launches and availability in reforming company car benefit-in-kind tax.” Simon Carr, chief commercial officer at Alphabet (GB) hopes to see more financial

Existing VED rates will be maintained on introduction of WLTP from April 2020. A call for evidence will be published this year seeking views on moving towards a more dynamic approach to VED which recognises smaller changes in CO2 emissions. incentive to buy hybrids. He says: “Plug-in hybrids are still a vital tool for the transition towards mass electrification for many organisations and although they will benefit from this two per cent BIK reduction, we hope to see further practical and financial support for these vehicles in the Autumn Budget.” Moving away from company cars HM Revenue and Customs’ data shows the decline of employees opting for company cars. and the ICFM fears that the government has not done enough in reviewing company car benefit-in-kind tax to either stop, slow down or reverse that trend. Caroline believes the changes are “a token gesture.” She says: “For employees taking a delivery of a company car from April 6, 2020 the two percentage point reduction in rates in 2020/21 and the one percentage point reduction in rates in 2021/22 before they equalise out in 2022/23 is unlikely to compensate for higher CO2 emissions as a result of WLTP testing. “Indeed what might occur is that fleets and company car drivers may defer vehicle replacement for the remainder of 2019/20 and wait for the new lower tax rates to be introduced on April 6, 2020.

“The government has acknowledged that evidence provided to it by the industry during the company car benefit-in-kind tax review showed that CO2 emission figures under WLTP testing were on average 20-25 per cent higher than under the previous NEDC regime and in some cases up to 40 per cent higher. “It is ACFO’s belief that the reduction in rates for two years is unlikely to compensate drivers fully for the increase in emissions, although it will soften the blow. “ACFO, in its submission, called for a continuous four-year view of company car benefit-in-kind tax thresholds to give employers and drivers certainty over future bills. However, the government has chosen to only publish rates up to and including 2020/23. Amid a trend for longer vehicle replacement cycles, it is disappointing that the vast majority of drivers selecting a new company car today do not know what their tax bills will be for the whole operating cycle of the vehicle.” L FURTHER INFORMATION www.acfo.org www.icfm.com www.bvrla.co.uk

Issue 122 | GREENFLEET MAGAZINE

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What’s the alternative to running a company fleet? Ubeeqo, the car sharing brand of Europcar Mobility Group, highlights the advantages of a car club, operated as a pool fleet, as an alternative to managing a company car fleet to the scheme and tackle any apprehensions they had about the vehicles and the process.

The current challenging economic climate, along with government pressure to tackle emissions, is creating a perfect storm for fleet managers. They need to provide mobility for employees to do their job; but they also need to manage costs and identify ways to reduce their CO2 output. The added complication was that until very recently there was little clarity in terms of Benefit in Kind tax rates from 20/21 – particularly for low emission and electric vehicles. Thankfully that situation has now changed with the government announcing that from 20/21 electric vehicles will attract 0 per cent Benefit in Kind tax. Great news for firms offering their employees a company car option! However, for many employers the administrative burden of running a company fleet is still something they want to eliminate. For these businesses, the answer could be applying the car club approach to a pool fleet. And putting that in the hands of an established car club operator. For example, Ubeeqo’s electric car service, E-Car Club, has been delivering a fully managed and automated, low cost, sustainable car sharing solution which has gone to the heart of the challenges facing employers. Reducing grey fleet miles – and costs In December 2018 E-Car took over the operation of a fully managed pool car fleet for Scottish Borders Council to help support the reduction in grey fleet miles and associated costs. At the heart of the initiative was the goal to reduce the expenses paid for business mileage. It aims

to achieve savings annually of £250,000 by staff using pool cars and rationalising their business mileage to essential mileage only. The car sharing solution comprises a fully managed car club service including: vehicle acquisition, booking systems, telematics and communications hardware, member screening, comprehensive motor insurance, breakdown cover, cleaning, servicing, marketing of the scheme, account management support, complete utilisation statistics and full operational management. E-Car worked closely with the Scottish Borders Council Business Change & Programme Management team to plan and deploy the tailored solution to meet the needs of Council staff and assist with the Council’s travel policy. This led to the deployment of 55 low‑emission vehicles at eight locations across the Scottish Borders. A mix of hybrid 4x4s and hatchbacks were identified as suitable to meet the varied demands of Council departments and a staged deployment across two months was carried out. E-Car also created all the supporting materials to communicate the new scheme to Council employees, including bespoke registration page, instructional guides on the vehicles, sign up and booking processes, FAQs, emails announcing the scheme and promotional material. Plus familiarisation sessions were attended by over 200 staff members, to introduce them

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Insight on usage Throughout the first six months of the scheme E-Car has worked closely with the Council to ensure the cars are well used. As well as supplying the Council with its own portal that provides live booking data, E-Car produces monthly reports with full utilisation statistics. Its expertise in car sharing is also used to analyse the data, highlighting inefficient booking behaviour and capacity issues to help successfully manage the pool cars. Based on the data generated, bespoke emails are sent to members that address any issues and drive usage. Plus bi-weekly calls provide an opportunity for E-Car and the Council to discuss the operation of the scheme to ensure it runs smoothly. Having a full time fleet assistant employed by E-Car also gives the Council a point of contact for anything that may arise and allows for quick resolutions to vehicle issues. 24 tonnes of CO2 saved in six months In the first six months of the scheme, 775 members have registered. Over 6,500 bookings have been made, covering 290,000 miles. In month six alone more than 70,000 miles were covered. And based on the average amount of CO2 emitted per mile by the average vehicle, the pool cars have saved 24 tonnes of CO2 since the scheme began, the equivalent of planting 4,800 trees. Good for the community too As well as being available for staff, 18 vehicles from the total fleet have now been made available for public use outside of working hours, providing Scottish Borders residents with a low cost, flexible and sustainable transport option. L FURTHER INFORMATION To find out how Ubeeqo and E-Car can help your business, email business@ubeeqo.com or contact Development Director Carl Pittam on 020 8036 3242.

LEASING AND RENTAL

Expert Panel: Leasing & Rental

EXPERT PANEL The net zero carbon target by 2050 has reignited the need to eliminate transport emissions. But should fleet managers really be feeling the pressure to move away from diesel? And how can they navigate the current and future fuel mix? Our leasing and rental experts share their advice

Mark Gallagher, green fleet specialist, Grosvenor Leasing Mark has over 15 years’ industry experience and has worked with a variety of corporate and public sector fleets. He has been with Grosvenor Leasing for six years, and heads up the company’s award-winning 0Zone green solution. Mark was recently presented with a BVRLA Industry Hero award for his contribution towards the green agenda.

Dan Hawkes, head of sales performance, corporate mobility and market intelligence, Europcar Mobility Group UK With over 15 years’ experience in the automotive industry, Dan was appointed to his current role in 2018 with a focus on developing new mobility solutions. Prior to joining Europcar, Dan had an extended career in the motor industry.

The UK has passed into law a target to cut greenhouse gas emissions to net zero by 2050. This replaces the previous target of at least 80 per cent reduction from 1990 levels. The UK’s 2050 net zero target was recommended by the Committee on Climate Change, the UK’s independent climate advisory body. This changing regulatory landscape can put fleets under pressure to move away from petrol and diesel, and towards alternative fuels. But the likelihood is that diesel is still the best option for many fleets. “Modern diesels still give much better miles per gallon, are much cleaner than many people imagine and remain very strong company cars,” comments Mark Gallagher from Grosvenor Leasing.

Duncan Chumley, chief commercial officer, Daimler Fleet Management Before joining Dailmer Fleet Management (DFM), Chumley worked as managing director of Free2Move Lease UK and as sales director of Citroen Financial Services. DFM is a multi-marque vehicle leasing company that procures, funds and fleetmanages for public and private sectors businesses from SME through to large fleets.

“We’re not swayed by the sensationalist headlines and take a very pragmatic approach when advising on vehicle choice, and we look at the total cost of operation as well as the emissions. “In doing so, companies can understand the full impact of their decisions and make choices based on fact rather than speculation. “Of course, we would like to see faster uptake of electric vehicles, but while their range remains relatively limited it’s not always possible to get a suitable EV for many high mileage users.” Stephen Greenstreet from Greenfleets Vehicle Leasing advises fleet operators not to panic about anti-diesel sentiment. He says: “If you are a company car driver who has a high annual mileage, diesel

Stephen Greenstreet, MD, Greenfleets Vehicle Leasing Stephen Greenstreet has been working in the vehicle finance and leasing industry for over 30 years. He is passionate about customer service and customer retention and always keeps up to date with industry changes and developments. He sits on the Leasing Broker committee of the BVRLA and is recognised as an expert within the leasing industry.

is still currently better for your company, your driver and the environment. “There are new vehicles coming onto the market all of the time that will offer a cleaner but practical way to operate. As companies continue to look at the way they operate company vehicles, they can fit these new lower emission vehicles into their fleet.” Fleet managers should question where the ‘pressure’ to move away from diesel is coming from, advices Duncan Chumley from Daimler Fleet Management. He says: “Is it a cost decision, or a CSR initiative? Most newer diesel vehicles can still enter clean air zones without penalty. For longer journeys diesel can still be the most efficient fuel – for example diesel would still be more economical than many hybrid vehicles for  Issue 122 | GREENFLEET MAGAZINE

Expert Panel: Leasing & Rental

 motorway driving, but a hybrid would be better in the city or for urban driving. How far and where your vehicles are going should be considered. “Rather than pander to pressure, a policy review should be carried out to see where electric or hybrid vehicles could feasibly be used. Before committing to alternative fuels consider a consultation of the current and future fleet requirements aligned to your mobility objectives.” Testing the water Dan Hawkes from Europcar Mobility Group UK believes that the demonisation of diesel has really confused the market, and while regulations are changing, rental can offer a risk-free solution. He says: “It’s important to remember that the current Euro 6 compliant vehicles meet all emission requirements. However, there’s no avoiding the fact that in the long-term diesel will be eliminated. So, for businesses that don’t want to put significant investment into a technology that will be outdated in years to come, the option really is to look at long-term rental. “This not only means firms can continue to rely on the performance efficiencies of diesel for the time-being, but also ‘try before they buy’ the new drive train technologies.” A confusing fuel mix A few years ago, the fuel mix was straight forward; diesel was said to be the most environmentally-friendly and cost effective option for long distances, and petrol for shorter distances. But now the fuel mix has grown, as has the understanding that we urgently need to reduce pollution to address the climate emergency. Even with electric vehicles, there are many different types; pure electrics, plug-in hybrids, conventional hybrids, range extenders, and so on. There are also a handful of hydrogen fuel cell vehicles on the market, and commercials can look at biofuels and gas as greener options. To make sense of it all, fleet organisations can consult leasing and rental firms to help them assess the best fuel-fit for their fleet. “There is no all-encompassing answer to this as the best fuel fit will vary from company to company based on a number of factors,” comments Mark Gallagher. “This is one of the reasons we set up our 0Zone service to help fleets move to alternative fuels. We look at the whole remit including where drivers are operating, what the re-fuelling/charging infrastructure is like in their area, the types of vehicles that would best suit the drivers, and what the vehicles are used for.” Duncan Chumley says: “There are a number of factors to consider when thinking about the fuel mix. Firstly access to fuel is important. There is no use transforming your fleet to solely hydrogen powered vehicles if you do not have a ready supply of hydrogen to fuel them. “A fleet consultation aligned to the business’ growth and strategic objectives will paint a clearer picture of what vehicles and possible alternative fuels should be used.

“Your fleet is like a tool box; vehicles should be assigned correctly to the relevant usage to drive the best results. A “one size fits all” approach will not drive efficiencies.” Stephen Greenstreet agrees that speaking to professionals is the best way to get correct advice. He says: “Consultation is the only answer, fleet operators do not currently have all of the answers to what fuel type is best for each of their drivers, but leasing companies and some leasing brokers like Greenfleets do have this experience. To look at this properly you need to look at each driver’s typical journey type, mileage, duration, destination and how long the vehicle is parked in a particular area.” Adopting alternative fuels Europcar’s research into fleet usage of alternative fuels found that 45 per cent of businesses are planning to adopt electric vehicles by 2020. The largest sized organisations (500+) lead the way, with 67 per cent looking to add electric vehicles to their fleet. In addition, 21 per cent of those with fewer than 10 employees also intend to make the switch. Hybrid vehicles are part of plans for 37 per cent of those surveyed, but come joint top with electric among firms with 250-499 employees (50 per cent). And at the moment hydrogen is the least popular alternative fuel, with only 22 per cent of businesses aiming to have them on fleet by 2020. For smaller firms, there is still some resistance to adopt alternative fuels, with 42 per cent of those with fewer than 10 staff not committing to having any alternative fuelled vehicles by 2020. Dan Hawkes believes this is down to a lack of knowledge and understanding of new drivetrains. “Europcar Mobility Group UK has been actively involved in a number of initiatives that help fleet and mobility managers understand the future potential of new motoring technologies,” explains Dan. “Right now, it’s all about giving businesses hands-on experience of new technologies – whether that be rental by the day or hour as a ‘try before you buy’ experience or educational workshops.” Maintaining the fleet For fleet organisations, especially smaller sized ones, perhaps the most time‑consuming and burdensome aspect of looking after a fleet is making sure vehicles are fit for the road through servicing, maintenance and repair (SMR). Mark Gallagher explains the issue: “It’s very rare for any company to have the skills, experience and time to properly manage their service, maintenance and repairs – nor the agreed labour rates and national infrastructure with preagreed discounts to support it. This is why many businesses end up signing off invoices without really knowing if they are paying the correct amount or if the work was necessary in the first place. “It’s also not just about the costs, as poorly managed service, maintenance and repairs can lead to increased vehicle

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downtime and can have a negative impact on your business when vehicles are off road longer than they need to be. “When we talk to customers about this, the question is generally around ‘risk’. Do you want to fix your SMR costs as part of a monthly budget within a contract hire rental, or would you prefer to pay-as-you-go, with a consolidated invoice at the end of each month and Grosvenor’s qualified maintenance team managing the maintenance for you.” Stephen Greenstreet says: “When leasing a vehicle, you have the option to include a full service and maintenance package that takes away SMR problems and fixes your costs for the life of the lease. I am a strong believer that if you lease a vehicle you should include this package. Why have a vehicle or a fleet of vehicles that you have no control of maintenance cost on? “Leasing companies obtain better hourly rates with service centres and it also avoids unnecessary work. A few of the main leasing companies include a no quibble tyre policy which not only covers fair wear and tear but also accidental damage which – with the amount of pot holes on our roads – is an unknown quantity. “Another thing to bear in mind is that the car is owned by the leasing company; if you have a maintenance contract then that is also the leasing companies responsibility. In the event of a warranty dispute with a manufacturer the leasing company will deal with the manufacturer to ensure the best outcome, saving you time and money.”

Keeping vehicles on the road Duncan Chumley further highlights the benefits of SMR contracts: “A good SMR package will include downtime management, planning the service and repairs around your convenience. Your vehicles are the enablers for your business so keeping them on the road is vital. “SMEs often struggle with servicing and maintenance because they go directly to the cheapest suppliers. Issues can then arise when third party repair networks are used instead of manufacturer approved ones. Key software updates can be missed and non-manufacturer approved parts can diminish vehicle efficiencies. “Leasing companies are experts in their field so will prevent over charging as well as ensuring only maintenance that is necessary is authorised.” There is also the option of eliminating the SMR problem entirely when using a rental strategy. Dan Hawkes explains: “Rentals give businesses access to relatively new vehicles which not only deliver great reliability but also puts the latest motoring tech in the hands of drivers. “The Europcar Advantage solution, which provides vehicles for long-term rent of three months or more goes one step further, providing brand new vehicles. And they are supported by a dedicated team to handle any maintenance issues if they do arise.” The future of fleet management The above discussion demonstrates how fleet management has evolved in recent years. But the fleet landscape is constantly changing, and the conversation

around fuel, technology and mobility will further advance. So what will the future fleet management role involve? “There are a range of pressures impacting the future of the fleet management ranging from technological, environmental, legal and ‘Mobility Solutions’– the latest buzz word in our industry,” comments Duncan Chumley. “As vehicles become smarter and more autonomous, the way we travel will change; fleet management will become mobility management. “Efficiencies will come from our ability to manage Big Data and provide better insights into fleet data. Leasing companies will be expected to be the all-seeing and all-knowing, meaning greater relationships with manufacturers will be key to understanding the changes with vehicle technology.” Stephen Greenstreet believes that fleet organisations will have to rethink policies so that they are more tailored to the business. He explains: “There will always be a need for fleet management, but not as we currently see it. Companies will have to re-think their current fleet policies and not just use the one size fits all solution they currently have, they will need to look at a blended fleet policy that covers the individual circumstances of all drivers which will help them reduce their CO2 output and ensure the drivers are using the right type of vehicle for the job it is required to do.” Discussing how the role has become more tech dependent, Mark Gallagher comments: “Technology is having a massive impact on how we manage our mobile workforces and how they communicate. The millennials are driving this because they are tech-dependant. When the older generation within the UK workforce grew up, there was a sense of wonder with technology. In other words, ‘wow – can the system actually do that for me with regards to my vehicle fleet’. Now, it’s more a case of, ‘that’s fine, but why can’t it do this – because that’s what I need it to do.’” Research into business mobility commissioned by Europcar Mobility Group UK earlier this year found that there is a belief amongst transport decision makers that the changing mobility landscape in the last 12 months is having a real business benefit. Dan Hawkes explains: “The top benefit, according to 35 per cent of businesses, is a reduction in travel-related costs. This rises to over half for firms with a workforce of 250-499 and for those with 100-249 employees. Nearly a third (31 per cent) of respondents said the changing landscape is reducing the environmental impact of travel. This is the case for over a quarter (27 per cent) of businesses with 10-25 employees, rising to 56 per cent among those with staff of 250-499. “So what we believe is happening is that fleet managers are expanding their knowledge and skill-set to encompass all forms of mobility, as well as broadening their remit on behalf of their employers to address the wider impact of transport on both their own business and the environment.” L

Duncan Chumley In addition to emissions reduction, fleet suppliers will be expected to be ever greener. Paperless billing, digital signatures and reductions in plastics and carbon footprints will soon be found in contract requisites. All of these factors will be tied not only into fleet policies but the CSR policies of businesses. Regardless of the drivetrain, there will always be fleets of vehicles that require managing and they will need to comply with legislation of the time. Let your leasing company stay up to date with the legislation so you can focus on your business.

Expert Panel: Leasing & Rental

Final thoughts

Stephen Greenstreet There will always be a need for fleet management, but not as we currently see it. Companies will have to re-think their current fleet policies and not just use the one size fits all solution they currently have. They will need to look at a blended fleet policy that covers the individual circumstances of all drivers which will help them reduce their CO2 output and ensure the drivers are using the right type of vehicle for the job it is required to do. Mark Gallagher Fleet management is becoming more challenging – particularly with advances in areas such as compliance, health and safety, wellbeing at work, and technology. It’s for this reason we put together the Grosvenor Leasing panel of experts, having recognised that the level of professional advice required by our clients was growing. For key issues such as compliance, CO2, taxation, legal, technical, policy, health and safety and many others, a relevant panel member is just a phone call or message away. Dan Hawkes The new breed of mobility managers will be responsible for developing corporate mobility strategies that accommodate and benefit from the latest travel, transport and automotive technologies. This could then lead to the definition of a mobility budget for each employee. And mobility managers will need to become key influencers for the adoption of new solutions within an organisation.

Issue 122 | GREENFLEET MAGAZINE

Event Review

GREENFLEET Scotland: Aberdeen Supported by Transport Scotland, Energy Saving Trust and Aberdeen City Council, GREENFLEET returned to Aberdeen on 21 June to showcase the latest zero and ultra-low emission vehicles and share knowledge on measures to improve air quality Over 38 Scottish zones have air quality safety standards regularly broken, and according to Friends of the Earth Scotland, air pollution contributes to 2,500 early deaths in Scotland each year. A major contributor to air pollution is vehicle emissions. Scotland is taking action to combat air pollution, and at the beginning of the year, Scotland’s first Low Emission Zone became operational in Glasgow. Edinburgh, Aberdeen and Dundee are also set to have Low Emission Zones by 2020. Against this backdrop, GREENFLEET returned to Scotland on 21 June for the second time this year to showcase the latest electric and ultra low emission vehicles and discuss efforts to decarbonise transport. The event took place at Aberdeen’s Pittodrie Stadium where delegates had the opportunity to test drive vehicles and hear the latest national and local strategies to improve air quality, as well as the grants and schemes to help fleets make the switch to a cleaner fleet. Lindsay Yeoman from Transport Scotland spoke about the government’s plans to expand its electric charging infrastructure between now and 2022, and accelerate the procurement

of ULEVs in the public and private sectors. This will include large scale pilots across the country and financial support for local solutions and small scale research and development. She also discussed the incentives for businesses looking to switch to alternatively fuelled vehicles. These include the Switched on Fleets and Switched on Towns and Cities initiatives and the Low Carbon Transport Loan, as well as the Plugged in Households funding. Ellie Grebenik from Energy Saving Trust explained some of the work the organisation is doing to help Scotland reach its clean transport goals. This includes providing housing associations with funding to provide electric car clubs to residents. Public sector delegates heard from Paul Hansen from Crown Commercial Service (Scotland Excel) about ways to save money and time when procuring vehicles. Test drives Van manufacturers LDV allowed visitors to test drive its electric EV80, which has an 120-mile range. It also showcased its newly launched second electric van, the EV30, which has a quoted range of 200 miles.

Renault brought its selection of electric vehicles including the Master Z.E, Kangoo Z.E, ZOE and Twizy. Toyota brought the new Corolla, which has a choice of two self-charging hybrid powertrains: an improved 1.8-litre with 120bhp and a new 2.0-litre system developing 178bhp. In addition, the Saloon is available with hybrid power for the first time, adopting the 1.8-litre hybrid powertrain. Showcasing its hydrogen capabilities, Toyota also showcased its Mirai and a selection of other hybrids. Dealership Gillanders Kia meanwhile brought the Kia E-Niro and Niro PHEV for delegates to test. Trakm8 were present to explain how telematics, connected cameras and fleet optimisation can help fleets to improve efficiency, cut carbon emissions and reduce risk. Representatives from national car share club Co-Wheels meanwhile explained how its electric, hybrid and low emission cars are helping businesses with their mobility needs. For delegates after advice on leasing, fleet management and low emission vehicles, LeasePlan were in attendance to discuss their services. L

Co-wheels – the UK’s most innovative mobility provider with more environmental ‘firsts’ than any other car club

We were the first in the UK to introduce electric cars onto a public fleet, the first to get Go Ultra Low status thanks to our pioneering work with hybrid-electrics and the first in the world to introduce zero‑emission hydrogen cars onto our fleet. We are still the only UK fleet using hydrogen cars, with the latest models from Toyota and Hyundai, and after trialling them with our corporate users we will be introducing them to the public fleet this year. But this experience has proved invaluable in giving us the experience on the advantages and pitfalls of how to run the cars you will be using tomorrow,

not just the ones you use today. We currently run more than 90 zero emission cars – pure EVs and Hydrogen fuel cell – on our fleet of more than 600 vehicles, which in addition to the hundreds of plug in hybrids hybrid-electrics adds up to 50 per cent of our fleet making it the country’s greenest, cleanest mixed fuel car share fleet. And in 2019 we are stepping up our roll out of EVs to our highest ever rate – with new fleets going in to Oxford and Bristol as well as EVs across Scotland thanks to our partnership work with Housing Associations. Co-wheels also provides low carbon pool fleet management for numerous businesses

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

and public sector organisations – and one of our key innovations to maximise use and the environmental benefits is to open up use of those cars to the public outside office hours. Local authorities such as Salford City Council found this not only savings them money on grey fleet costs and reduces the Council’s CO2 impact but also making EVs available to the Salford public to allow residents to reduce their carbon footprint. Salford has a fleet of 26 vehicles at their Civic Centre in the city centre and other Council offices, including eight Nissan Leafs. More than 450 staff use the cars – reducing business mileage costs by 27 per cent - saving more than £200k and 12 tonnes of CO2 in the first 12 months. If you want to find out what Co-wheels unrivalled environmental fleet experience can do for you – either for public car share fleets or grey fleet replacement – check our www.co-wheels.org.uk/fleet email us on info@co-wheels.org.uk or call us on 0191 375 1050. FURTHER INFORMATION www.co-wheels.org.uk/fleet info@co-wheels.org.uk | 0191 375 1050

Events Calendar

GreenFleet eVeNTS

Calendar GREENFLEET Glasgow

Commercial GREENFLEET

23 August 2019, Council City Chambers, Glasgow events.greenfleet.net/r2z/glasgow

19 September, CEME conference centre, Rainham www.events.greenfleet.net

GF C COMMerCiAL GreenFleet

The Scottish Government has outlined plans to have four Low Emission Zones (LEZ) in operation by 2020, with the first established in Glasgow at the end of 2018. Hosted in association with Glasgow City Council, the event will give them a platform to outline their strategy as well as offer information to local businesses on how to transition to an environmentally friendly transport operation. The event, sponsored by Arnold Clark, will also allow visitors to hear from the Office for Low Emission Vehicles (OLEV) on the latest grants and schemes available.

Commercial GREENFLEET 2019 will deliver keynotes from high-end speakers from LoCity and TfL, the Mayor’s Office, industry experts and case studies. Top of the agenda will be London’s Ultra-Low Emission Zone (ULEZ) and the impact it has on organisations that run vans, trucks, buses and freight through the nation’s Capital, and discuss what further needs to be done to help clean commercial vehicle uptake. Held at CEME conference centre in Rainham, delegates will experience the latest technology and test drive vans and trucks that run on electric, gas and hydrogen.

GREENFLEET Bath

GREENFLEET Awards

3 October 2019, Bath Racecourse, Bath events.greenfleet.net/r2z/ bath

14 November 2019 British Motor Museum www.greenfleetawards.co.uk

bATH IMPROVING AIR QUALITY ACROSS UK CITIES Hosted By:

With

In Association with:

BATH RACECOURSE: 3RD OCTOBER 2019

Hosted by Bath and North East Somerset Council and held under the Go Ultra Low West (GULW) banner, this event will be a key date in the calendar for those in the West of England looking for the latest on the GULW project or advice on transitioning to a ULEV fleet. Like at other ROAD-2-ZERO events, delegates will hear from Office for Low Emission Vehicles (OLEV), The Society of Motor Manufacturers & Traders (SMMT) EV Group and the Crown Commercial Service (CCS).

GF GreenFleet

AWArDS This year’s GREENFLEET Awards will take place on 14 November at The British Motor Museum in Gaydon, Warwick. The awards, sponsored by The Algorithm People, recognise excellence in fleet sustainability and the drive towards zero and ultra-low emission transport. The awards bring together leading individuals and companies from the fleet and motor industries, to celebrate their achievements while promoting zero and low-emission vehicle technology, making the awards a key date in the calendar.

GREENFLEET Roundtable: Electrifying your fleet 20 September Anfield Stadium, Liverpool www.greenfleet.net/roundtables

GF GreenFleet rOUNDTAbLe

The latest of GREENFLEET roundtables will be heading to Liverpool, at Anfield Stadium on September 20th to discuss the opportunities and challenges with the switch to an electric fleet. Fleet professionals and industry specialists share information, opinion and discuss where progress is needed in electric vehicle integration, latest in OEM range, charging infrastructure and battery technology. Chaired by John Curtis and supported by Trakm8, SG Fleet, & Electrassure.

Exhibitors The following organisations will be exhibiting at all or some of the GREENFLEET events: Nissan Arnold Clark Automobiles Limited Co-wheels Car Club BMW Mini eVolt LDV Renault Toyota Lexus Trakm8 Vattenfall ElectrAssure Arnold Clark Vehicle Management SG Fleet Volvo LeasePlan The Algorithm People Elmtronics Kia Hyundai

Issue 122 | GREENFLEET MAGAZINE

Road Test

ROAD TEST

Kia Sportage GT-Line S 2.0 CRDi 48V AWD

Written by Richard Gooding

The latest incarnation of the Kia Sportage SUV offers 48V technology to lower emissions and improve economy. Richard Gooding sees if the beliefs eclipse the benefits What is it? The Sportage is the best-selling Kia in the UK and over 40,000 Sportages found new homes here last year. Now 25 years old, the Sportage was the first Kia to be built in Europe. The refreshed fourth-generation model arrived in July 2018 and brought with it more efficient engines, updated looks and 48-volt mild-hybrid technology. The 48V diesel mild-hybrid Sportage spearheads Kia’s global powertrain electrification strategy and makes the South Korean car maker the first to offer hybrid, plug-in hybrid, electric, and 48V models. Sixteen electrified Kias will be launched by 2025, including five hybrids, five plug-in hybrids, five EVs and a fuelcell vehicle, slated to arrive in 2020. How does it drive? The new Sportage builds on the handsome looks of its predecessor, and looks particularly smart in the Blue Flame premium paint of our test car. Inside, overall quality is impressive, and like the Ceed we tested in GreenFleet 120, the feel is of a highspecification and nicely-made machine. In the simplest terms, the mild-hybrid system employs a 0.44kWh 48-volt lithiumion battery mounted under the boot floor as well as a Mild-Hybrid-Starter-Generator (MHSG) which replaces the starter motor

and is connected to the crankshaft of the 2.0-litre CRDi diesel engine by a belt. The MHSG switches seamlessly between two modes. The battery aids acceleration to help reduce engine load and emissions when in ‘motor’ mode, and under deceleration, the MHSG switches to ‘generator’ mode and recuperates energy from the crankshaft to recharge the battery. The overall goal is to extend the ‘off-time’ of the engine to reduce emissions and improve economy. Another benefit is the system’s ‘Moving Stop & Start’ function. This shuts off the engine during in-gear deceleration and under braking should the battery hold sufficient charge. The EcoDynamics+ powertrain is also equipped with SCR active emissions technology, and on the test car, is mated to an eight-speed dual-clutch automatic gearbox. On the move, the Sportage 48V is a thoroughly modern Kia. Refined, comfortable, and with the 182bhp 2.0-litre CRDi turbocharged engine (the battery boosts power by another 13bhp giving a 195bhp total), spritely, too. The light steering aids the car’s passage through urban areas, while body movements are well-controlled and the all-wheel drive handling is more on the dynamic side than most.

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When it comes to the 48V system, there’s very little to tell you’re driving a hybrid, mild or otherwise. An energy flow graphic informs the driver of powertrain status, and the MHSG switching is so seamless, it’s actually quite hard to perceive what’s going on. The engine didn’t turn off perhaps as much as we’d like, but may be attributed to the driving we were undertaking. How economical is it? Kia quotes an official 50.5mpg on the combined cycle, and over the course of a 315-mile mixed driving conditions test, we averaged 34.8mpg. What does it cost? The GT-Line S crowns the Kia Sportage tree and the model tested here is the most expensive Sportage you can buy at £35,020. The cheapest Sportage with 48V technology is the £28,510 ‘4’ 1.6 CRDi 48V six-speed manual, and the Sportage range starts with the £20,670 petrol-powered ‘1’ 1.6 GDi six-speed manual. The same 2.0-litre CRDi engine and 48V lithium-ion battery

The 48V ild diesel mortage Sp hybrid ads Kia’s spearheowertrain global prification elect egy strat

How much does it cost to tax? Under the NEDC 2.0 testing cycle quoted figures, the Kia Sportage GT-Line S 2.0 CRDi 48V AWD Auto costs £530 to tax in the first year, decreasing to the standard rate of £145 thereafter. Benefit in Kind is 37 per cent.

Why does my fleet need one? While it’s true that the 48V Sportages are hybrids you don’t have to charge, in expensive 2.0 CRDi GT-Line S guise, company car drivers interested in the technology are better served with the ‘4’ 1.6 CRDi version. It has lower 118g/km emissions and two-wheel drive, but, if the higher-spec car’s extra kit appeals, the 1.6 CRDi GT-Line S offers 117g/ km emissions. Both the 1.6 CRDi 48V cars are, at £210, a sizable £320 cheaper in terms of first-year VED, and attract a lower 31 per cent BIK rate. And they are the ones we’d go for if we were favouring Kia’s 48V technology. L FURTHER INFORMATION www.kia.com/uk

ENGINE:

1,995cc, 182bhp fourcylinder diesel / 0.44kWh lithium-ion battery

CO2*:

148g/km

NOX:

23mg/km

MPG (combined)*:

50.5

GF MPG:

34.8

VED:

Road Test

can also be had in the £33,020 Sportage 4 eight-speed automatic, but the rangetopping GT-Line S offers more equipment. Externally, a mesh radiator grille, ‘ice cube’ fog lamps, a panoramic sunroof and 19-inch wheels leave a striking impression. Inside, there’s a heated steering wheel, a JBL sound system, powered and ventilated front seats, a powered tailgate and wireless smartphone charger, in addition to forward collisionavoidance assist and blind spot collision warning systems.

Kia Sportage GT-Line 2.0 CRDI 48V AWD

£530 first-year, £145 thereafter

BIK:

37%

PRICE (OTR):

£35,020 (including VAT)

* NEDC equivalent

Mild-hybrid technology benefits MILD HYBRID STARTER & GENERATOR (MHSG)

DC/DC CONVERTER 48V BATTERY

COMBUSTION ENGINE

While a self-charging hybrid will still offer economy and taxation benefits over a mild-hybrid car, there are some advantages when compared to a standard petrol or diesel vehicle. Because the small battery of a mild-hybrid aids the engine under acceleration and the engine is shutoff more, emissions are reduced and economy is improved against petrol or diesel models, though not as comprehensively as in a selfcharging hybrid model. The initial cost of a mild-hybrid will often be less than a self-charging hybrid, too. When compared to a plug-in hybrid, very little change is needed with a mild-hybrid when it comes to dayto-day usability.

Issue 122 | GREENFLEET MAGAZINE

ELECTRIC VEHICLES

EV RECHARGING

Bradshaw Electric Vehicles

Mr Electric

Rigfone Electrics

Tel: +44 (0)1780 782621 Email: enquiries@bradshawev.com Website: www.bradshawev.com

Tel: 0800 7311 606 Email: enquiries@mrelectric.com Website: www.mr-electric.co.uk

Email: enquiries@rigfone.co.uk Tel: 023 8021 5100 Fax: 023 8021 5101

Bradshaw is a leading manufacturer of electric vehicles for industry and distributor for Goupil, all-electric, light commercial, zero-emission vehicles. Homologated for road use the Goupil range is suited to low emission zones, towns and cities. With 11 body configurations, the vehicles are designed for last mile delivery and service operations.

Mr. Electric is the UK’s leading electrical franchise brand. Approved OLEV installer, trusted electrical experts. A proven track record of being reliable with over 17 years of experience in electrical installation and maintenance. National coverage allows us to take care of EV Charge Point installation and maintenance across the UK.

Rigfone Electrics is an OLEV approved EV Installation Contractor offering innovative cost effective installation solutions across the South of the UK. Established in 1963 we have built a strong reputation for both reliability and quality with our clients in industry, commerce and public sector. We offer tailor made best value solutions for all your EV charge point requirements.

COMMERCIAL VEHICLES

EV CHARGE POINTS

Qerb Electric Vehicle Charging Rhino Products Tel: 01244 833790 Email: sales@rhinoproducts.co.uk Website: www.rhinoproducts.co.uk We are Europe’s leading van accessory manufacturer, supplying an innovative range of Roof Racks, Roof Bars, Steps, Ladder Restraints & more for the commercial vehicle market. Our products are made in the UK to the highest of standards, ensuring the utmost in performance, durability and aesthetics. CONTRACT HIRE & LEASING

01752 546160 charge@qerb.uk www.qerbcharge.uk

Plug It In Group Ltd www.plugitingroup.co.uk Tel: 01535 601466 Email: info@plugitingroup.co.uk

21 Sisna Park, Sisna Park Road, Estover, Plymouth, PL6 7AE QERB Charge, Electric Vehicle Charging, Electric Vehicle Chargers for Home, Workplace, SME, Garages, Car Parks, Large Commercial and Public Sector, Fleet Electric Vehicle Charging, Electric Vehicle Charging Facilities, OLEV Electric Vehicle Charging, UK Wide Installations, Smart Electric Vehicle Charging.

Plug it in Group Ltd are an Electrical contracting company specialising in the installation of Rolec EV charging points, we offer a full package from design through to completion for all of your EV needs. We are OLEV approved and pride ourselves on first class customer service.

ADVERTISERS INDEX The publishers accept no responsibility for errors or omissions in this free service BWW UK

IFC

LDV UK & Ireland

SJK Electrical

Charged EV

Oracy 19

www.sjkelectrical.com Tel: 01924 377641 Mobile: 07734 101674

C0-Wheels 46

SJK Electrical are commercial and domestic NICEIC registered electricians, specialising in electric vehicle charging installations, based in Wakefield. All installation needs addressed with the growing adoption of electric vehicles. We are OLEV approved for installations under the EVHS (domestic) and WCS (workplace) schemes, and available to assist in obtaining grants under this scheme.

Daimler Fleet Management

23,30

E/Car Club

Ecotap UK

Ford 12,13

Petrogas Group

Rolec Services

Schneider Electric

The AA

24,27

Jaguar 28

The New Motion

Jeep 6

TOTALKARE Heavy Duty

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