Auto Industry Digest Issue no. 408
This week’s news for company executives February 10, 2011
This Week’s Briefing The Editor’s View
THE Government believes that the recent
HMRC revises ‘list price for introduction of a grant of up to £5,000 per car to
tax purposes’ - wrongly! help businesses and private individual buy electric
vehicles (EVs) will kick-start a ‘green revolution’.
Child benefit loss threat to But, according to a new report by Lex Autolease
company car drivers as tax rises the tipping point for EVs to be a ‘viable choice’
Fleet sales hold up in shrinking for employers and employees will be beyond
new car market 2014/15 when the recharging infrastructure has
matured to a level where accessibility issues have
Firms cautious about ‘flash in been overcome. Until then, hybrids will be the
the pan’ EV subsidy medium term solutions. Although, says the report,
if journeys are below 100 miles EVs should be
Van sales accelerate almost considered and for drivers with a mix of short
50% but ‘uncertainty’ remains trips and longer 100+ journeys plug-in hybrids
Fleets warned to prepare for maybe the solution along with EVs with range
tighter London LEZ extenders. But, says the report, it is the used car
market that will ultimately determine whether the
Manufacturers failing to hit raft of EVs now driving into showrooms are
2012 EU emissions target credible. If, says Lex Autolease, the sector
responds well to the range of EVs and hybrids
Model update: Ford, Hyundai, then ‘fairly rapid growth’ is anticipated within a
Mercedes, Peugeot, Toyota decade. Not exactly the ‘green revolution’
anticipated by Whitehall.
Fleet file_____________________________________________________
Fuel expense fraud costing businesses £1.6bn a year
EXPENSE fraud is costing UK plc billions of pounds with exaggerated employee mileage
claims estimated to account for up to £1.6 billion a year, it has been calculated.
Exaggerating expense claims is fraud, and as Government austerity measures start to bite they
are inflicting real pain on UK plc, according to mileage audit specialist TMC
On average in the private sector there is a 25% drop in mileage expense costs after they are
properly audited, according to TMC. This means that 25% of fuel claims by UK employees
may be fraudulent.
‘To many drivers, exaggerating mileage expenses is simply seen as similar to raiding the
stationery cupboard, especially when times are tough financially,’ said Paul Jackson,
managing director of TMC.
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TMC says that four of the most common ways of committing mileage fraud are:
Exaggerating the length of journeys by rounding up to the nearest 10 or 100
miles or overstating actual mileages.
Claiming for journeys that the driver made but did not pay for (eg: two
colleagues share a car and both claim the mileage)
Making unnecessary journeys to capitalise on over generous pence-per-mile
fuel expenses rates
Fabricating journeys entirely (for personal profit or to compensate for an
inadequate pence-per-mile fuel rate)
Jackson added: ‘Not all drivers who round up think they are committing fraud, and sadly nor
do many managers who sign off the claims. Honest employees and business leaders may not
realise the significant amounts of money being lost in this way.’
TMC’s mileage fraud calculations are based on four million people in the UK driving for
work and averaging 12,000 miles a year with an average pence-per-mile fuel reimbursement
rate of 13p per mile.
Child benefit loss threat to company car drivers as tax rates rise
THOUSANDS of company car drivers will lose child benefit payments worth thousands of
pounds when changes to tax rules push them into the 40% tax bracket according to CAP, the
car price experts.
The problem - which will cost an affected company car driver with three children almost
£2,500 a year - lies in a succession of forthcoming tax rule changes, beginning in April.
From April of this year the amount of taxable income before which the 40% bracket is
reached falls from £37,401 to £35,001. As widely reported, the change will increase the
number of higher rate tax payers by about 750,000 people.
What has not been reported is that this lays the seeds for thousands of company car drivers to
lose their child benefit in 2014.
The next measure which will specifically bring more company car drivers into the higher rate
tax bracket is the change in benefit-in-kind rates for cars emitting 120 g/km of carbon
dioxide, or less.
This comes into play in 2012/13 when the thresholds relating to company car benefit-in-kind
are lowered from 120 g/km to 100g/km. This will increase the taxable benefit of many cars
that were chosen because they currently enjoy a preferentially low tax rate (10%/13%
depending if petrol or diesel).
The problem is illustrated by the impact of changes in benefit-in-kind for the driver of an
Audi A4 2.0 TDI 136 SE with emissions of 120 g/km. Since April 6, 2010 this car has had a
taxable benefit value of £3,498.95 but this rises in the tax year 2012/13 to £4,844.70.
The increase of more than £1,300 - or more than 38% in taxable benefit - is almost certain to
tip some drivers of this and similar vehicles into the 40% tax bracket - thus removing their
entitlement to child benefit. This is because the taxable benefit value of the car - plus the
taxable value of any other benefits - must be taken into account alongside salary when
determining an individual’s tax rate.
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The effect will be even further amplified for some drivers, for example, by changes to the
taxable benefit value of company-provided fuel.
CAP’s Mark Norman said: ‘Although the increase in higher rate taxpayers in relation to
changes in company car taxation has been widely reported the real financial impact story is
the loss of child benefit for many.
‘Unless there are changes in future budgets, it means that even where somebody crosses into
the 40% threshold by just £1 they will lose £20.30 per week for the first child and £13.40 for
each subsequent child.
‘It will have a devastating financial impact on many drivers who will have no opportunity to
change their car in time. And the lack of information on the basis of benefit-in-kind rates
from April 2013 means it is impossible for anybody to order a new company car today which
will help them to avoid this issue.’
Firms cautious about ‘flash in the pan’ electric vehicle subsidy
A NEW survey together with an in-depth report on the hybrid and electric vehicle (EV)
market has revealed that the Government’s £5,000 Plug In Car Grant is essential if businesses
are to continue investing in low or zero emission vehicles.
Private and business buyers of EVs are now eligible for up to 25% off the cost of a plug-in
car, limited to £5,000. However, the Government intends to review the £43 million fund in 12
months time, spelling long- term uncertainty for firms looking to invest now.
A poll by Lex Autolease - the UK’s largest provider of company vehicles - reveals that
almost half of financial directors (47%) would not pursue their company’s interest in electric
vehicles, or plug-in hybrids, if the subsidy was removed.
Chris Chandler, principle consultant at Lex Autolease, said: ‘We’ve published the actual cost
of ownership figures in a new guide, which clearly shows that the subsidy is vital to ensuring
these vehicles are cost competitive. Without it, new EVs such as the Nissan Leaf can’t
compete with the likes of a diesel Volkswagen Golf or even the Toyota Prius on cost.
‘Businesses are sending out a clear signal that their interest in electric vehicles could be
seriously diminished without the subsidy. Particularly if future changes mean the numbers no
longer stack up.’
In contrast, business drivers say that one-off, up-front incentives are not a major turn on.
Only 2% would be enticed by a discount or subsidy, whereas almost half (43%) said that low
or zero company car tax would make them want to choose a plug-in hybrid or fully electric
vehicle.
Chandler added: ‘This spells the way forward for the future of business car taxation, which is
essentially more of the same. The current system rewards those who choose clean and frugal
vehicles and it has been working well since 2002.
‘However with long vehicle replacement cycles the industry needs plenty of advanced notice
and a longer term commitment from Government to allow them to adopt these new
technologies. Given the scale of the investment by manufacturers, the industry can’t afford
for this to be a flash in the pan like the Scrappage Incentive Scheme.’
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In response to the growing appetite for more information on EVs and plug-in hybrids, and the
infrastructure required to support the technology, Lex Autolease has published a freely
available in-depth guide.
Entitled - ‘Electric vehicles - the way forward?’ - the report is a culmination of a year-long,
in-depth study by Lex Autolease’s Consultancy team. The content details the pros and cons
of EV ownership from a business and company car driver perspective. To receive a copy,
email: newsdesk@lexautolease.co.uk
HMRC revises ‘list price for tax purposes’ - wrongly!
ACFO is seeking talks with HM Revenue & Customs (HMRC) after a number of members
highlighted that company car drivers had been given incorrect tax codes following a
‘revision’ of vehicle list prices.
The ACFO secretariat says that it has received reports from fleet decision-makers of both
increases and decreases in vehicle list price figures used to calculate benefit-in-kind tax on
company cars.
It seemed, said ACFO director Stewart Whyte, that amendments had been made according to
‘how the tax office sees the current list price of the vehicle has changed since first
registration’.
But, ACFO says: ‘Our understanding of the relevant tax regulations is that the ‘list price for
tax purposes (or P11d price) is absolutely fixed at the point of vehicle registration.
‘The definition in the HMRC’s own guidance (unchanged since the concept was introduced
in 1993/4) clearly shows that the price to be used (even when considering benefit-in-kind tax
on a car bought second- or third-hand) is the manufacturer’s published price as in the retail
price list applicable on the day before the date of first-ever registration. As such, the P11d
value for any car cannot change during its life.’
The organisation added: ‘This matter is important, as the P11d price is the starting-point for
the benefit-in-kind charge calculation. If the list price is changed by HMRC, the value of the
benefit-in-kind tax will also change as a consequence.’
Whyte added: ‘We would ask that any member with specific experience of this issue in their
fleet - themselves or other employees - contact us with summary details so we can establish
the scale of this problem. It may, for example be limited to just a few local tax offices.
‘ACFO will be seeking talks with HMRC to address this issue. We need to understand how
list prices are being changed despite any information provided to tax offices on P11d forms
each year.’
Carillion Fleet Management goes green with downsizing policy
CARILLION Fleet Management has introduced a vehicle downsizing environmental policy
that encourages its drivers to choose greener company cars.
The company manages around 3,000 cars on its internal vehicle fleet and is encouraging
drivers to consider the environmental and financial benefits of choosing a cleaner car when
the time comes to change their vehicle.
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Drivers can take advantage of financial incentives offered by the company in return for
downsizing one grade on their new company car. Carillion has also identified specific models
that qualify for ‘Green Star Car’ status, meaning the vehicle has the lowest carbon dioxide
emissions in its class.
Not only is this helping Carillion to lower its overall fleet emissions, it also means drivers can
enjoy lower fuel bills through better fuel economy, plus a reduction in benefit-in-kind tax
bills from cutting their vehicle emissions.
Bob Dunnett, managing director of Carillion Fleet Management, said: ‘It’s all part of our
efforts to encourage drivers to think more about the costs of running a car, while still
providing a vehicle that fits with our health and safety offering.’
Essential users are offered a choice of Ford or Volkswagen vehicle, with a wider mix for user
choosers - but all with the aim of reducing emissions and increasing fuel economy.
‘We give our employees a good choice of vehicles while also ensuring that we are making the
right choice for the business,’ added Dunnett.
‘Our goal has been to reduce our emissions by 50% between 2007 and 2012, and we are
making good progress towards this. Almost all our vehicles are now below 160 g/km but we
are actively encouraging drivers to opt for sub 110, 120 and 130 g/km vehicles.
‘Recent developments in engine technology mean we are able to do this without asking
drivers to sacrifice comfort, refinement and equipment.’
One employee has replaced a Ford Focus 1.6 TDCi with an Audi A3 1.6 TDi (109 g/km); a
second employee has replaced a Ford Mondeo 2.2 TDCi with a Ford Focus Econetic 1.6
TDCi (104 g/km); and a third member of staff has replaced a Vauxhall Vectra SRI with a
Ford Fiesta Titanium 1.6 TDCi (110 g/km).
Northgate marks 30th year and is now a ‘fleet solutions provider’
NORTHGATE Vehicle Hire, the UK’s largest vehicle hire company, is celebrating its 30th
anniversary in 2011.
The company, which now runs a fleet of more than 60,000 vehicles from 62 locations across
the UK and the Republic or Ireland and also operates in Spain, can trace its roots back to the
launch of Noble Self Drive Hire in Darlington in 1981.
But, today the FTSE listed Northgate Plc business says it is much more than a vehicle hire
company as it has transformed itself into a one-stop shop fleet solutions provider with a
complete range of services for businesses from sole trader to multi-national.
Northgate Plc, apart from owning Northgate Vehicle Hire in the UK and Northgate Spain
which operates a fleet of more than 45,000 vehicles, also includes, specialist fleet
management business, Fleet Technique, which manages some 12,000 vehicles, and used
vehicle outlets Van Monster and Trade Sales Direct.
Crucially, Northgate Vehicle Hire has developed to offer companies a flexible long-term hire
alternative to the more traditional vehicle fleet funding options of outright purchase or
contract hire.
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Northgate Vehicle Hire sales and marketing director Gareth Jones said: ‘Today, the company
is much more than a provider of vehicles. The business is a complete fleet solutions provider
giving customers a real marketplace choice with a range of added value products.
‘Northgate Vehicle Hire is the clear marketplace leader in the rental sector, but is also an
expanding provider in the fleet solutions arena with a range of services that include full fleet
management solutions, online fleet management reporting, occupational road risk
management duty of care compliance and its own workshops for vehicle service,
maintenance and repair.’
Although the company has a string of big-name customers includes the likes of the Royal
Mail, Tesco.com, B&Q and Securitas, Jones said: ‘Northgate is an unknown quantity to many
businesses in terms of providing a complete range of fleet solutions.
‘Therefore, as the company enters its fourth decade we will be continually aiming to leverage
our knowledge and fleet expertise and broaden our customer base across all sizes of public
and private sector organisations, but particularly in the SME (small and medium enterprises)
segment.
‘Additionally, the company will continually look to expand its range of fleet solutions as new
services are demanded by customers to meet their fleet operating requirements.’
Road safety ‘champion’ Hannaford raises risk management focus
SAFETY focused ‘business champion’ fleet Hannaford has raised its occupational road risk
management standards by putting all 51 employees through driver training and banning
licence-holding children of staff from driving company vehicles.
Those are two of the major initiatives implemented by the St Albans-based high quality fit
out and refurbishment specialist as its continues to promote the importance of safe driving as
one of the more than 50 public and private sector fleets that are ‘business champions’ within
the Driving for Better Business campaign promoted by RoadSafe.
This year fleet manager Leigh Stiff is considering introducing further safety initiatives. They
include driver training for employees’ spouses/partners, reviewing the company’s at-work
driving mobile phone policy, and reviewing the organisation’s current solus Citroen car and
van policy as the company looks to ensure emerging safety features such as lane departure
warnings are included within standard specifications.
Stiff, who has a unique insight into road safety after suffering a broken neck in a crash, said:
‘Occupational road risk management should always be a work in progress. There are always
new initiatives to pilot and implement and new products and in-vehicle features being
launched.
‘At Hannaford I am continuously reminding all employees about their responsibility to drive
safely and that the business has a duty of care towards them and their road users.’
The company’s 51 staff, including company car and van drivers, occasional drivers and
employees who don’t travel on business all completed online risk assessments designed by
driving safety specialists Peak Performance.
Employees designated as ‘high risk’ following the assessments and all employees under 25
years of age - 12 members of staff in total - then completed on-the-road driver training under
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the watchful eye of Peak Performance’s experts. The remaining employees - those designated
as ‘low’ or ‘medium risk’ - attended a classroom-based training session.
The company operates a fleet of 15 cars and 14 vans and 11 employees drive their own
vehicles on business.
Stiff said: ‘Whether staff drive on business or only commute to work we believe that we have
a duty to look after them. That’s why in addition to checking all driving licences we also put
all staff through driver training.’
Stiff believes that Hannaford has a ‘good’ road safety record having only incurred five
insurance claims last year in addition to car park-type bumps and scrapes and windscreen-
related damage.
However, following a crash when the son of an employee took to the road in a company
vehicle, Stiff said: ‘We tightened our policy to exclude all children of employees driving
company vehicles.
‘But we are also looking at introducing risk assessments for spouses/partners and potentially
driver training for those that are deemed ‘high risk’ in addition to existing driving licence
checks.’
Additionally, although Hannaford discourages mobile phone use while driving, it is looking
to further tighten its policy with the introduction of a ‘call control’ service that effectively
manages incoming calls and text messages until the vehicle is stationary with the engine
turned off.
EST names new eco-friendly ‘Fleet Heroes’
THE Energy Saving Trust has named its latest ‘Fleet Heroes’ - awards that are in their fifth
year and recognise the fleets and companies that are driving forward the ‘green’ agenda.
This year the EST received around 90 applications from more than 50 organisations. The
winners were: Best large private sector fleet, Kelly Communications Plant; best small
private sector fleet, RME Services Ltd; best large public sector fleet, HM Revenue &
Customs; best small public sector fleet, North Lincolnshire & Goole Hospitals NHS
Foundation Trust, innovation in car and van manufacture, Volkswagen UK; innovation in
services and systems, The Miles Consultancy (TMC);
innovation in fleet management, London Borough of Camden; leadership in the public
sector, Lake District National Park Authority; leadership in the private sector, Willmott
Dixon Group; Smarter Driving, Ceuta Healthcare; Grey fleet management,
Hampshire Partnership NHS Trust; Business mileage management, HM Revenue &
Customs; Industry supplier, BMW; Motorvate member of the year, Phil Clifford, St
Edmundsbury Borough Council.
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Model update________________________________________________
Ford to unleash new vehicles and technologies at Geneva show
AN all-new Ford vehicle will be unveiled at next month’s Geneva Motor Show by Ford of
Europe chairman and CEO Stephen T. Odell.
Additionally Ford will use the event to showcase a number of other vehicles and
technologies. They include:
The global debut of the all-new Ranger Wildtrak - a sporty compact pickup
that is due to go on sale in the UK towards the end of this year
The European debut of the Vertrek compact sports utility vehicle concept,
which signals the design direction of the next-generation Kuga
The European debut of the Focus Electric, Ford’s first all-electric passenger
car that will go on sale in Europe next year
The European debut for pre-production version of the new C-Max Energi
plug-in hybrid - the first of two electrified models based on the C-Max five-
passenger multi-activity vehicle. It will be joined by a C-Max HEV when they
both go on sale in Europe in 2013.
A zero-emission Transit Connect Electric, which is based on the Transit
Connect Kombi and is one of several electric Ford vehicles currently on test in
the UK. It features the same battery electric power train as the Transit Connect
Electric Van, which goes on sale in the UK later this year.
Odell said: ‘Today Ford has its strongest product line-up ever and we’ve got an aggressive
plan to keep our vehicle portfolio the freshest in the industry.
‘We have at least 20 new models and derivatives coming across our entire European range -
from small cars to commercial vehicles - and at Geneva we will be introducing some of
these.’
Additionally, Ford is boosting its flagship large car family with a new 114 g/km Mondeo
ECOnetic and introducing a range of additional powertrain enhancements for its Mondeo, S-
Max and Galaxy models.
A new 1.6 litre Ford Duratorq TDCi, with peak power of 115 PS, has been added to the range
of engines offered in Ford’s large cars.
At the same time the Ford Auto-Start-Stop system is being made available for this small
displacement diesel engine, as well as for the recently introduced 1.6 litre EcoBoost engine
(160 PS).
New Peugeot 308 set for May UK arrival
THE new Peugeot 308 will be launched at the 2011 Geneva Motor Show next month and will
go on sale in the UK in May.
The new range will start from £15,245 on-the-road with an improved standard specification
to the current model, says the manufacturer.
The highlight of the new 308 line-up will be the 98 g/km CO2 308 1.6 litre e-HDi FAP 112
model, which will be class leading in its segment and will be available from the summer.
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Styling of the new 308 sees an integration of all the latest Peugeot styling elements already
seen on the 508 and the SR1 Concept Car.
The new Peugeot 308 will be available in three body styles - hatchback, CC and SW - and
four multi-model trim levels - Access, SR, Active and Allure.
A range topping hatchback and CC THP 200 model will also be available in a single GT trim
level.
Engines across the range feature Peugeot’s micro-hybrid e-HDi Stop & Start technology. The
98 g/km engine will be available with either a six-speed manual gearbox or a six-speed
electronically controlled manual gearbox (EGC).
To ensure the new 308 is as environmentally efficient as possible all factors affecting CO2
emissions have been optimised with overall weight reduced by 25 kg on average on all
models, models fitted with 16-inch ultra low rolling resistance tyres and all engine options -
VTi, THP petrol and HDi diesel engines - meeting Euro5 emission standards.
This also enables the 308 HDi FAP 92 model, fitted with a five-speed manual gearbox, to
emit CO2 emissions of 110 g/km.
At launch four petrol and four diesel engines will be available: 1.4 litre VTi 98, 1.6 litre VTi
120, 1.6 litre THP 156 and 1.6 litre THP 200 (GT Hatchback & CC models only) and 1.6 litre
HDi FAP 92, 1.6 litre e-HDi FAP 112, 2.0 litre HDi FAP 150 and 2.0 litre HDi FAP 163.
All models feature air conditioning, ESP (Electronic Stability Programme), ABS, EBFD,
EBA, front and rear electric windows with child security, remote control central door locking
with deadlocks and six SMART safety airbags.
New models from Hyundai at Geneva show
HYUNDAI will unveil two new models for Europe - including the i40 - at the 2011 Salon
International de L’Automobile in Geneva on March 1.
Making its world premiere in Geneva will be the all-new D-segment model, the i40.
Designed and engineered at Hyundai’s European research and development headquarters in
Rüsselsheim, Germany, the i40, says the company, will move it towards a ‘modern premium’
positioning that will bring high-end features and vehicle quality to Hyundai customers at
accessible prices.
The first official image of i40, revealed, shows the sculpted shapes and layout of the interior.
The i40 will go on sale from June, supported by an upgraded version of Hyundai’s fully
transparent assurance package Five Year Triple Care.
The i40 will be joined on stage by the new Veloster, the company’s all-new three-door coupe
making its European debut.
First shown at the North American International Auto Show last month, the Veloster features
a unique 1+2 door configuration and best in class emissions of 132 g/km.
Hyundai will also showcase the latest developments to come from its Blue Drive eco-focused
programme, including the electric BlueOn and ix35 FCEV. The company is targeting global
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leadership in the field of environmental technologies, with current and future Blue Drive
models reducing Hyundai’s emissions in Europe.
Toyota focuses on hybrid power future at Geneva show
TOYOTA’S Geneva Motor Show stand will be devoted to Hybrid Synergy Drive (HSD)
technologies, including plug-in hybrids, electric vehicles and fuel cell hybrid vehicles
The occasion will mark the world debut of Yaris HSD, a new concept heralding a production
model that will bring Toyota full hybrid power to the B-segment - Europe’s largest market
sector.
The next step in Toyota’s roll-out of full hybrid versions of its complete model range in
Europe, the Yaris HSD concept incorporates hybrid-specific styling cues and new, forward-
looking design elements.
Prius+ will also be unveiled at Geneva, the first car to offer European customers the
versatility of seven seats with a full hybrid powertrain.
As its name suggests, Prius+ provides significantly more passenger accommodation and
loadspace than its sister hatchback model, without sacrificing essential Prius attributes, such
as class-leading fuel economy and ultra-low emissions.
Going beyond these world-first presentations, Toyota will also be demonstrating the
versatility of hybrid power technologies to achieve high efficiency and low or zero emissions
in a wide range of vehicle types, including plug-in hybrids, electric vehicles and fuel cell
hybrid vehicles - all of which feature in its product strategy for the present decade.
Vauxhall gives Antara a makeover
THE Vauxhall Antara has gone on sale with a refreshed exterior design, new engines, revised
chassis settings and an upgraded interior for the 2011 model year.
The all-new engine line-up sees a Euro5 emission compliant 2.2 CDTI diesel engine available
with a choice of 163 PS or 184 PS power outputs. Both the six-speed transmissions available
- an auto and manual - are also newly developed for the Antara.
The 163 PS entry level unit develops maximum torque of 350 Nm at 2,000 rpm and is
available with front or all-wheel drive and manual or automatic transmission. Fuel
consumption on the combined cycle is 44.8 mpg, emissions are 167 g/km, the 0-60 mph
sprint is completed in 9.9-second and top speed is 117mph.
The 184 PS diesel model produces maximum torque of 400 Nm at 2,000 rpm, comes standard
with all-wheel drive and is available with both transmissions. Performance is enhanced
further, with a 0-60 mph time of 9.6 seconds and a top speed of 124 mph, while fuel economy
is 42.8 mpg on the combined cycle and emissions are 175 g/km.
On-the-road prices start at £19,995 for the Exclusiv 2.2CDTi 16v 163PS model and top out at
£26,905 for the SE 2.2CDTi 16v 184 PS 4x4 auto.
Volkswagen reveals revised Tiguan
THE first pictures of the revised Volkswagen Tiguan compact 4x4 have been revealed ahead
of the car making its public debut at the Geneva Motor Show next month.
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Sporting a new front end defined by horizontal lines to bring it into line with the latest
Volkswagen ‘design DNA’, the new Tiguan is sharper and sleeker than the current model.
In the UK the new variant will be available to order in early summer ahead of first deliveries
in August. Further details will be announced nearer the show, which opens on March 1.
Alfa Romeo Giulietta gets diesel engine boost
THE sporty Alfa Giulietta five-door hatchback range has just been boosted by the addition of
another high performing second generation MultiJet diesel engine.
The new 2.0 JTDM-2 140 bhp engine is equipped with the latest generation JTDM-2 MultiJet
Common Rail system that is already present on the 1.6 JTDM-2 (105 bhp) and the 2.0 JTDM-
2 (170 bhp) power units.
This technology, combined with an electronically controlled variable geometry turbocharger
delivers 350 Nm at 1,750 rpm (with the D.N.A. selector in Dynamic position) and 320 Nm at
1,500 rpm (in Normal) - giving it the highest torque in its class compared to similarly
efficient and powerful engines.
The new Alfa Romeo Giulietta features reduced emissions and improved fuel consumption
(119 g/km and 62.8 mpg respectively in the combined fuel economy cycle), a top speed of
127 mph and acceleration from 0-62 mph in nine seconds.
The engine is Euro5 compliant and is equipped with DPF (Diesel Particulate Filter) and
Start&Stop as standard. Service intervals are every 21,000 miles.
In Lusso trim the model costs £20,750 on-the-road and in Veloce trim £22,050.
Facelift for flagship Mercedes C-Class model
THE flagship model of the Mercedes-Benz C-Class range, the C 63 AMG has undergone a
facelift.
The new C 63 AMG will go on sale in July. Pricing and specification are still to be confirmed
The revised model sees the introduction of the AMG Speedshift MCT seven-speed sports
transmission with the ‘Controlled Efficiency’ mode as standard along with a new power
steering pump help to improve combined cycle fuel consumption by about 10% to 23.5 mpg
(estate: 22.9 mpg).
The output of the AMG 6.3 litre V8 engine is unchanged at 457 bhp and can be increased to a
maximum of 487 hp with the optional AMG Performance package.
Agility, grip and ride comfort have been enhanced as a result of numerous measures to
optimise the AMG sports suspension. New assistance systems and a new generation of
telematics with internet access increase both safety and comfort.
Other revisions include a new radiator grille with a large Mercedes star and a wing-type
transverse louvre, a new AMG front apron with a lower cross member painted in high-gloss
black, special AMG daytime running lights and side air outlets, the front section recalls the
look of the SL 63 AMG high-performance roadster and he new bonnet with its modified
powerdomes is now made of aluminium.
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SEAT sets its sights on Mondeo and Insignia
SEAT is aiming to steal Ford and Vauxhall customers with the launch of its new Multitronic
CVT transmission installed in its Exeo 2.0 litre diesel model.
The new version, which will hit SEAT showrooms in April, has the Ford Mondeo and
Vauxhall Insignia in its sights according to UK managing director Peter Wyhinny.
The new Multitronic CVT gearbox, developed within the Volkswagen Group, is available for
the first time on the B-premium SEAT Exeo.
In auto mode, the transmission is claimed to be ideal for driving around town while on the
country roads it can be switched to sport manual, adopting seven stepped ratios to allow more
driver control through the use of steering wheel mounted paddles. Fuel consumption is 48.7
mpg.
Wyhinny, in an interview with Headlineauto, said: ‘Target market is Mondeo and Insignia,
the majority of people buying other brands in this segment have already stepped outside the
norm so we don’t expect to conquest many sales from them.
‘Diesel automatics account for about 15% of the premium B-segment and this model we
expect to account for around 15% of Exeo sales.’
Prices have yet to be confirmed but Wyhinny said the model was expected to cost around
£1,500 over the manual version. There will be SE Tech and Sport Tech packages available
which will add around £3,000 worth of equipment for £900 extra.
The only other slight change to the Exeo - and applicable to all models - is an additional
44mm of legroom in the rear thanks to some re-engineering of the seats.
Suzuki considers UK launch of Kizashi
SUZUKI is considering whether to launch its first D-segment model in to the UK and is
currently evaluating it against rivals ahead of a possible launch towards the end of the year.
The Kizashi has been wholly-developed by Suzuki on an all-new platform and is currently on
sale in Japan and the United States following launch last year. It also went into showrooms in
Germany last month.
One sticking point is the lack of a diesel engine - the Kizashi is currently powered by a 2.4
litre petrol unit. Diesels dominate the D-segment but Suzuki is considering using four-wheel-
drive as its unique selling point along with a price of around £23,000.
The model is available with both two- and four-wheel-drive but may only be imported into
the UK as a 4x4 to appeal to potential customers who do not necessarily cover high mileages,
but live in hilly or poorly accessible areas. The all-wheel-drive system is being made
available in Norway and Switzerland.
The Kizashi was first unveiled as a concept car three years ago at the Frankfurt Motor Show.
The name means ‘a sign of great things to come’ in Japanese.
The UK model will also most likely take the Sport variant which features a host of external
and internal modifications that include a more muscular front fascia, lower grille; body side
12
sill extensions; sports suspension with 10mm lower ride height; lower body side mouldings
with chrome accents; custom lightweight 18-inch alloy wheels; unique sport steering wheel
and contrasting stitching to the leather seats, gear shift boot and parking brake boot.
Although more compact than the Ford Mondeo or Vauxhall Insignia, the Kizashi has room
for five occupants plus a large load area with a through loading system to allow for longer
items to be loaded from the boot.
Kizashi Sport is also equipped as standard with seven airbags; four electric windows,
MP3/WMA compatible CD tuner with eight speakers, dual zone automatic air conditioning,
18-inch alloy wheels, keyless entry and start and folding heated door mirrors.
In combined cycle driving, it has a combined fuel consumption of 35.8 mpg with emissions
of 183 g/km.
Suzuki UK says it would need to sell around 500 models to ‘break even’. The company
acknowledges that the lack of a diesel engine could be an issue but is hopeful of some
developments through Suzuki’s alliance with Volkswagen announced last year.
Manufacturer news___________________________________________
Manufacturers a year behind in hitting EU 2012 emission targets
THE current rate of new car emissions improvement of 3.6% per year is not enough to reach
the European Union’s 2012 target, according to new analysis by Clean Green Cars.
For the first time, its data tables show how much progress each manufacturer still has to make
with some manufacturers currently missing the target by a huge margin.
Despite the fact that four manufacturers have now got below the official EU target of 130
g/km of CO2, the majority are still lagging behind. The four manufacturers that have reduced
average CO2 emissions below the EU threshold are: Fiat (124.58 g/km), Toyota (125.01
g/km), Mini (128.03 g/km) and Citroen 128.19 g/km).
However, average CO2 emissions across all manufacturers last year were 144.43 g/km (2009:
149.77 g/km), a year-on-year improvement of 3.57%.
The EU target is an industry average, but each manufacturer has an individual target based on
the weight of its vehicles.
For the first time, the Clean Green Cars CO2 performance tables show how much progress
each manufacturer still has to make. No manufacturer has yet fully met its target, but the ones
which are closest to their individual targets are: Toyota 0.34 g/km over target, Mini 6.39
g/km over target, BMW 6.97 g/km over target and Citroen 7.31 g/km over target.
A manufacturer can have the lowest CO2 average, and still be fined for missing its official
target figure, while a higher CO2 manufacturer may not be fined.
To be liable for these targets, a manufacturer has to sell 300,000 cars annually across the EU.
The manufacturers that either reach this threshold, or are close to it, with the biggest need to
improve are: Chevrolet 21.41 g/km over target, Suzuki 21.47 g/km over target, Mazda 23.06
g/km over target and Mercedes 31.43 g/km over target.
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Jay Nagley, publisher of Clean Green Cars, said: ‘The fact that some manufacturers are very
close to meeting the EU target shows up the failings of others. There are mainstream
manufacturers which are still 30 g/km of CO2 over their target, which is unacceptable.’
Mazda looks forward to company car growth in 2011
MAZDA UK is anticipating an increase in company car demand from outright purchase
fleets and contract hire and leasing businesses this year.
The brand has successfully increased its penetration of public and private sector fleets that
fund vehicles through outright purchase, Mazda Contract Hire and specialist leasing
providers.
Last year those ‘core’ end-user fleet registrations accounted for 6,497 units out of total
Mazda fleet registrations of 10,648 vehicles - up from 6,061 and 10,498 respectively in 2009.
This year, Mazda fleet and remarketing director Peter Allibon is forecasting that end-user
fleet registrations will be close to 7,500 units. That is equivalent to a 15% rise in ‘core
channel’ sales, which will be helped by:
More Mazda franchise dealers focusing on their local fleet marketplace as they
tap into the marque’s Business Development Programme, which sees centres
working in tandem with an outsourced specialist sales team to target corporate
sales
The introduction of a fleet-focused Mazda6 derivative that will be arriving
later this year
The arrival of the new Mazda5 1.6 litre 115 PS turbo diesel with emissions of
138 g/km
As a result of Mazda tightly managing its other fleet channels, including daily rental and
Motability sales, Allibon is predicting that total fleet sales will be slightly down on 2010
levels.
However, he said: ‘Our relationships with end-user fleets and leasing companies continue to
strengthen and that is manifesting itself in rising demand for Mazda cars. Consequently, end-
user fleet registrations as a percentage of Mazda’s total fleet sales will rise this year and
account for at least 70% of overall corporate volumes.’
Last year Mazda’s corporate sales team, which focuses on the management of major end-user
accounts, reported registrations totalling 3,081 vehicles - a near 20% increase on 2009’s
equivalent figure of 2,572.
Allibon said: ‘Such a significant increase was tremendous and we will be looking to continue
to grow that element of our sales in 2011 alongside our leased business and small fleet
volumes through our franchise dealers.’
Mazda’s success in increasing its corporate sales year-on-year despite seeing a reduction in
total new car sales in 2010 to 45,449 registrations (2009: 47,934) was reflective of the overall
new car market which saw a rise in registrations to fleets and small businesses along with a
decline in private sales which was driven by the removal of the scrappage scheme.
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BMW and Peugeot Citroen PSA joins forces to develop EV technology
BMW and Peugeot Citroen PSA are joining forces in the race to develop next-generation
hybrid and battery technology for electric vehicles.
The manufacturers said the venture, called BMW Peugeot Citroen Electrification, would aim
to create a continent-wide platform for electric technologies and leverage significant
economies of scale for both companies.
Both manufacturers have already developed electric models - BMW has a hybrid version of
the 7 Series and an electric version of the Mini, while the electric Peugeot iOn has just gone
on sale in the UK.
The new partnership includes the development of battery packs, e-machines, generators,
charges and softwares, which will be used by the carmakers and could also be sold to other
manufacturers.
Operations will be launched in the second quarter of 2011 and vehicles will be equipped with
the new technology from 2014.
The partnership builds on an existing relationship between BMW and PSA Peugeot Citroen
involving the production of petrol engines.
Light commercial vehicles______________________________________
Van sales accelerate almost 50% but ‘uncertainty’ remains
VAN sales - so often a barometer for the strength of the economy - accelerated almost 50%
last month to 17,154 (January 2010: 11,546), according to figures from the Society of Motor
Manufacturers and Traders.
SMMT chief executive Paul Everitt said: ‘Strong growth continues for van registrations
although uncertainty remains over the year ahead. A 49% rise in the van market is a good
start to the year but next month’s Budget could prove crucial concerns over fuel duty and
access to credit for business investment are not addressed.’
All sectors of the LCV market reported registration increases: sales of light vans up to two
tonnes totalled 3,371 (up 13.9%), demand for medium vans increased 47.7% to 2,018 units,
heavy van volumes increased 60.8% to 9,369 units, sales of 4x4 utility vehicles accelerated
70.8% to 485 registrations, and pick-up sales rose 72.3% to 1,911 units.
Citroën expands ‘Ready to Run’ range with two new models
CITROËN has further extended its ‘Ready to Run’ specialist vehicle range with the addition
of two new models - the Dispatch Crew Van six-seat conversion and Supertrucks Space Van.
The Dispatch Crew Van six-seat Conversion can be fitted to all Dispatch L1H1 1200 and
L2H1 1200 panel vans.
The three rear seats, fitted as part of the Crew Van conversion, have individual headrests and
each seat has a three-point seatbelt.
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To maximise the rear load compartment’s deck length, the conversion also allows long loads
to extend under the seat squab. Therefore, the Dispatch L1 crew van has a floor deck length
in the load compartment of 1,810mm, whilst the L2 model offers 2,110mm.
The Dispatch Crew Van six-seat Conversion is priced from £13,895 + VAT + delivery.
The new low-loading, high-cube Supertrucks Space Van is based on the Relay back-to-back
cab. Its benefits include the lowest deck height/step height of any van available in the UK.
Available with a choice of two body deck lengths (4,100mm or 4,500mm) and two body
volumes (20.4 or 22.29cu.m), the new Supertrucks Space Van is said to be ideal for a wide
choice of low density, high volume transport applications including furniture, bedding, office
equipment, removals and computer/white goods transport.
With optional air suspension, the Space Van has a particularly low deck height of 480mm and
a step height of 290mm - and with the air suspension in the fully lowered position, these
measurements are reduced to just 370mm and 190mm respectively.
Dependent on specification, the Space Van offers a payload of up to 1,300kg and is priced
from just £24,825 + VAT + delivery.
Residual value update_________________________________________
Prices soar for 4x4 pick-ups, says BCA
A SIGNIFICANT increase in the value of 4x4 pick-ups with both lifestyle and workhorse
models performing strongly has been reported by BCA, the UK’s biggest seller of
commercial vehicles.
A special section of 20 4x4 pick-ups were offered and sold at BCA Blackbushe on behalf of
the UK Car Group and generated a huge amount of interest with trade buyers, small business
end-users and private buyers competing strongly.
Duncan Ward, BCA general manager - commercial vehicles, said: ‘Well-specified 4x4s are in
demand and examples with leather, satellite navigation, chrome trim, alloy wheels, metallic
paint and popular extras like searchlight bars are making exceptional money. Buyers are not
so concerned about the age and mileage, providing vehicles are in good, clean condition.
Presentation remains important, however, and damaged examples need to be sensibly valued
to generate interest.’
Buyers don’t even have the option of down-speccing, because base-models are in even
shorter supply and values are rising as a consequence.
There is also plenty of demand for late-registered Land Rovers and a limited 60th Anniversary
110 Defender was sold for £20,000 in the same sale.
Ward said: ‘The 4x4 double-cab sector is reaching a wider audience than previously, with
caravanners and rural pursuits enthusiasts enjoying the pulling power and sure-footedness
these vehicles offer, as well as the extra space.
‘However, buyer interest has risen sharply since the weather deteriorated in November and
December. There are many self-employed owner operators whose businesses are completely
dependent on being mobile every day. When their traditional commercial vehicle is stuck at
base defeated by the snow they inevitably start looking at a 4x4 as a logical alternative.’
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Sample prices:
Year/plate Model (all double-cab pick-ups) Miles Sold Vs CAP
0959 Mitsubishi L200 Warrior 7K £13,950 109%
0656 Mitsubishi L200 Warrior 29K £10,400 123%
1010 Mitsubishi L200 Trojan 11K £13,750 130%
0808 Mitsubishi L200 Animal 18K £13,450 107%
0858 Nissan Navara Adventura auto 33K £14,600 113%
0656 Nissan Navara Adventura 145K £6,400 116%
0958 Nissan Navara Adventura auto 34K £15,500 116%
0808 Nissan Navara Expedition 45K £13,100 116%
0808 Nissan Navara Long Way Down 21K £13,800 119%
0757 Nissan Navara Outlaw auto 17K £13,250 122%
0707 Toyota Hi-Lux 3.0 Invincible auto 102K £11,200 122%
0707 Ford Ranger 2.5 TDCi Thunder 60K £7,700 100%
0808 Mitsubishi L200 Elegance auto 100K £8,300 123%
Average used car values accelerate, reports Manheim
AVERAGE wholesale used car values increased 4.2% (£278) to £6,847 in January when
compared with the previous month, according to latest data from Manheim Remarketing.
The fleet sector experienced an increase in average values of 6.7% (£383) to £6,124, while
dealer part exchange prices rose by 9.8% (£223) to £2,491 and manufacturer stock average
values rose by 0.8% (£92) to £11,922.
When compared with January 2010, with average age up by three months to 51 months and
mileage up by 5,015 miles to 53,828 miles, average wholesale used car values are down by
4.7% (£340).
Average fleets values are currently more than £600 below their 2010 peak of £6,749, which
was achieved in March, according to Manheim. Meanwhile, the average mileage for fleet
vehicles rose to a 12-month high of 60,364 miles in January this year with average age being
48 months (December 2010: 49 months) and average percentage of new price achieved being
34% (December 2010: 32%).
Examples of increases in values for the fleet sector in January include small hatchbacks up
8.7% (£345) to £4,330, medium family vehicles up 8.6% (£436) to £5,527, large family
vehicles up 12.9% (£554) to £4,848, compact executives up 7.5% (£588) to £8,397, mini
MPVs up 9.7% (£435) to £4,895 and 4x4s up 7.7% (£940) to £13,146.
Mike Pilkington, managing director, Manheim Remarketing, said: ‘2011 has started
positively with high attendances both online and in the auction hall, reflective of the increase
in demand expected at this time of year. The rise in values is similar to January 2010 (4.5%)
and is further confirmation of the current market stability. Bidding activity online has been
particularly strong this month with a record number of online vehicle sales.’
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BCA says demand outstrips supply for fuel efficient cars
BCA is seeing a significant increase in buyers seeking the most fuel efficient vehicles which,
in turn, is pushing up prices at auction.
With continued pressure on family finances and fuel prices at record levels, a BCA
spokesman said: ‘The demand is there, but supply is a major issue for anyone wanting to buy
the most fuel efficient used vehicles.
‘A quick look at our online stock locator on just one day found only 78 vehicles for sale
throughout our nationwide network of auctions that matched the Fuel-Economy.co.uk list of
most fuel efficient cars.
‘This is fairly representative of the current low availability of these vehicles as used cars and
compares to the 12,000 plus vehicles BCA typically has consigned for sale on any given
day.’
The Fuel-Economy.co.uk top 10 for most fuel efficient diesels and petrol hybrids includes the
Citroen C1, C2 and C3 - all 1.4 litre diesel models; the Honda Insight petrol hybrid; the
Renault Clio 1.5 dCi and the Toyota Prius petrol hybrid.
The website’s top 10 for most fuel efficient petrol cars includes the Smart Roadster; Smart
fortwo; Toyota Aygo, Citroen C1; Peugeot 107 and Daihatsu Charade.
The spokesman added: ‘As fuel prices continue to climb, we expect used values for the most
fuel-efficient cars to keep rising as well.’
The relentless price pressure that motorists are experiencing may well bring about a change in
attitudes to ‘eco-cars’, according to BCA.
The spokesman said: ‘Only a very small proportion of motorists we surveyed last year for our
Used Car Market Report believed that they would be looking at eco options for their next
car.
‘Just 3% said they would buy an electric-hybrid (1% used, 1% nearly-new, 1% new) - a
figure that had actually fallen by a point for two years running. But the sharp increase in fuel
prices over recent months could convince motorists of the benefits of a higher MPG and
lower emissions in the long run.’
Major independent motor auctions connect to 1link Disposal Network
FLEETS can now send cars and vans to major independent motor auctions direct from their
desktop PC.
This development has been made possible by a new interface between the 1link Disposal
Network e-commerce platform used by several major fleets to manage car and van disposal
online, and Kingfisher Systems’ Auction Manager software, adopted by many motor auctions
to manage their activities.
Effectively, fleet managers using 1link Disposal Network now have the option to use either
the platform’s established online sales and auctions to sell to dealers, or send them to four
leading independent ‘physical’ motor auctions - Aston Barclay, Fleet Auction Group,
Scottish Motor Auctions and Wilsons.
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As well as being able to dispose of cars and vans online with the results of the auctions being
made available in real time, the new tool will also allow fleet managers to arrange movement,
inspection and preparation of defleeted vehicles from their PC.
Ken Trinder, head of business development at epyx, said: ‘It has always been our view that
1link Disposal Network’s established online auctions and sales of vehicles to dealers should
form part of a mix of disposal methods used by fleets.
‘The new interface develops that ethos, meaning fleets now have the ability to easily send
different vehicles through different routes using 1link Disposal Network at the click of a
mouse, while also arranging essential disposal services such as vehicle preparation,
movement and inspection.’
For example, Trinder said, if a fleet had a number of similar vehicles to sell at the same time,
they might sell some direct to dealers using online sale or online auction through 1link
Disposal Network while sending others to different sales at different auction sites, all using
the platform.
In this way, they would avoid the dilution of values that can occur when many similar
vehicles are sold through a single route. A key additional benefit is that the auction data on
the system is updated in a more timely and accurate fashion.
Trinder added: ‘The beauty of this new interface is that it creates a situation where all the key
disposal routes that a fleet manager might want to use can be controlled through 1link
Disposal Network as a single point of access.’
CD Auction Group launches new late-plate vehicle sales programme
ONLINE auction specialist, CD Auction Group, is to launch a regular monthly sale focused
on high quality, late-plate cars.
The specialist sale will give vendors a channel to achieve maximum value for late-plate stock
and will be an addition to CD Auction Group’s regular vehicle sale programme which, until
now, has focused mainly on typical three-year old, ex-fleet and business finance cars and
vans.
Roger Woodward, managing director of CD Auction Group, said: ‘There is clearly rising
demand for high quality, late-plate stock up and down the country and we believe our online
auction will get these vehicles the national attention they deserve.
‘We have a database of eager buyers from franchised dealerships, leading used car
independents and major used car supermarkets on our books and they are telling us they are
desperate for late-plate, which is becoming increasingly hard to source.
‘On the other hand, we are confident we have a good supply of high quality vehicles coming
from our friends at car manufacturers, short cycle leasing companies and rental stock.’
The first sale will take place in late-February with over 100 cars available for bids and CD
Auction Group hopes to grow the business to the point where it justifies two sales a month.
The late-plate auction stock will be cars up-to 18 months old and with a typical average
mileage of 10,000 miles recorded.
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Manheim opens second auction centre in Germany
MANHEIM has opened a new auction centre in Neunburg vom Wald, north of Regensburg,
southern Germany, to complement its purpose-built auction centre in Düren.
The new dedicated two-lane facility, located close to the Czech Republic border, is on a
350,000 square metre site and will host a regular programme of three auctions per month.
The first auction featured over 450 cars and light and medium commercial vehicles and
attracted over 260 buyers, more than half of whom were logged on via Simulcast. Online
sales activity was strong - one buyer from Italy purchased eight vehicles via Simulcast.
As the world’s largest automotive services company, Manheim says it views the investment
as a key piece of the jigsaw in creating a broad range of remarketing and retail support
services in Germany.
Manheim also has a majority joint-venture sister-company in Germany called Modix,
offering a range of showroom and web-based technology solutions to over 4,500 car dealers
as well as vehicle manufacturers and newspaper businesses.
Politics and regulation_________________________________________
Fleets warned to prepare for tighter London LEZ
A MAJOR information campaign has been launched by London Mayor Boris Johnson ahead
of major changes in the capital’s Low Emission Zone (LEZ) regulations that will hit van
operators.
The Mayor has called on owners of around 150,000 vehicles that will be affected by new air
quality standards coming in January 2012, to prepare for the changes to the LEZ and avoid
fines.
Transport for London (TfL) estimate that the changes to the LEZ will broadly double the
impact of earlier phases in reducing particulate matter (PM) pollution in the capital.
Research commissioned by the Mayor has suggested that poor air quality contributes to an
equivalent of 4,267 premature deaths in London annually, with many more people, especially
children and older people, having their quality of life impacted by it.
Road transport emissions are the largest source of dangerous PM air pollution (tiny airborne
particles coming from vehicles) in the capital, with larger vans responsible for 21% of these
emissions and 10% of oxides of nitrogen (NOx).
The year-long information campaign reminds vehicle operators that they have a year to
prepare their vehicles for changes that will see larger vans, minibuses and other vehicles
included in London’s LEZ to help deliver cleaner air for Londoners and improve quality of
life.
The vehicles will have to meet a Euro3 standard for particulate matter, in order to drive
within the LEZ free of charge and avoid fines.
Vehicles included in what will be phase three of the scheme are:
Minibuses - with more than eight seats, plus the driver’s seat below five
tonnes gross vehicle weight (GVW)
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Large vans - between 1.205 tonnes unladen and 3.5 tonnes GVW
Motorised horse boxes between 1.205 tonnes unladen and 3.5 tonnes GVW
Motorised caravans and ambulances between 2.5 tonnes and 3.5 tonnes GVW
Other specialist vehicles derived from vans and minibuses
For HGVs, buses and coaches that are already affected by the LEZ, the emissions standards
will be tightening to Euro4 for particulate matter.
All the changes will come into effect from January 3, 2012 and will quadruple the number of
vehicles impacted by the LEZ from approximately 200,000 to nearly 800,000.
Owners of larger vans and minibuses who do not meet the required emissions standards by
January 3, 2012, and who drive within Greater London, will have to pay a £100 daily charge
or risk a £500 penalty. Owners of HGVs, buses and coaches will have to pay a £200 daily
charge or risk a £1,000 penalty.
Fair Fuel campaign goes to Westminster
A FAIRER deal on fuel duty took a step closer on Tuesday (February 8) when the Fair Fuel
UK Campaign took its message to the Treasury and then Westminster in two high-profile
media and public affairs events.
Led by motoring journalist Quentin Willson, a delegation from the Campaign comprising the
Freight Transport Association, the Road Haulage Association and the RAC unveiled a 20ft
banner outside the Treasury and handed in a letter to Chancellor of the Exchequer George
Osborne urging him to abandon the fuel duty hike planned in April and announce measures to
try and stabilise the cost of fuel.
The delegation then met with MPs, including Charles Kennedy MP, on College Green,
Westminster, to press home the issues further and hand over letters personally addressed to
all MPs in the House of Commons calling for their support.
Willson said: ‘Judging by the media presence and cross-party political support evident today,
the momentum is really gathering as are the number of signatories to our petition - over
47,000 so far.
‘With FTA, RHA and RAC backing, the Campaign is truly representative of business, the
motorist and, indeed, the general public concerned with the UK’s economic recovery. But
with the Budget due in March we can’t afford to be complacent and would urge everyone
who hasn’t already to sign our petition and make their voices loud and clear.’
Government to change driving rules on eyesight, epilepsy and diabetes
THE Government is planning to make amendments to minimum driver medical standards on
eyesight, epilepsy and diabetes.
The changes are contained in a consultation document published by the Driver Vehicle and
Licensing Agency.
The measures relate to the implementation of European minimum medical standards for
drivers. While UK standards must be at least at the level of a minimum standard, the UK is
not required to relax existing domestic standards where they are justifiably higher than the
EU standards.
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However, where the Government’s Medical Advisory Panel has advised that a relaxation in
standards is consistent with road safety, the recommendation is that this is adopted as the UK
standard.
Road Safety Minister, Mike Penning, said: ‘Britain has some of the safest roads in the world
and licensing rules have an important role in maintaining this position. We must make sure
that only those who are safe to drive are allowed on our roads, while at the same time
avoiding placing unnecessary restrictions on people’s independence.
‘We have taken expert advice on the latest evidence on eyesight, epilepsy and diabetes and
believe these proposals strike the right balance in allowing as many people as possible to
drive, without compromising safety.’
The main aspects of the new standards, which include a reduction in the minimum distance
from which a motorist must be able to read a car number plate will be cut by around eight
feet, are:
Eyesight
Group 1 - cars and motorcycles: A reduction in the distance that a number plate can be read
from to test visual acuity. Currently, a number plate test is conducted at a distance of 20
metres, this will be reduced to 17.5 metres.
Group 2 - buses and lorries: A change for those who wear spectacles in how they are
assessed. The eyesight test will concentrate on vision standards with the driver wearing their
glasses.
Epilepsy
Group 1 - cars and motorcycles: Drivers who only suffer seizures whilst asleep would be
considered for a licence after one year instead of the current requirement of three years.
Drivers who suffer seizures that have no impact on consciousness or the ability to act could,
for the first time, be considered for a licence after one year.
Group 2 - buses and lorries: For the first time, there will be a definition of epilepsy. The new
EU Directives provide a definition as being ‘two or more epileptic seizures less than five
years apart’. The Medical Advisory Panel on neurology is content with this definition for
Group 1 drivers. However, the panel recommends that for Group 2 drivers, the UK treats
epilepsy as being ‘two or more epileptic seizures less than 10 years apart’. Therefore, for
Group 2 drivers the DVLA is proposing to adopt a higher standard than the EU standard.
Diabetes
Group 1 - cars and motorcycles: Under the proposals, licences will not be issued or renewed
for drivers with recurrent severe hypoglycaemia and/or impaired hypoglycaemic awareness.
Group 2 - buses and lorries: Drivers who are treated with insulin would be considered for all
Group 2 driver licensing, providing strict medical monitoring is met. Currently, Group 2
drivers treated with insulin are restricted to certain categories of vehicle.
The consultation period will run until April 28, and can be found at
http:/www.dft.gov.uk/dvla/consultations/currentconsultations.aspx
New laws to ban cowboy clampers on the way
THE first legislative steps to outlaw cowboy clampers on private land should be taken in
Parliament this week when the Protection of Freedoms Bill gets its first reading today
(Thursday, February 10).
The AA has been at the forefront of the campaign to outlaw clamping for over a decade. The
motoring organisation says that too many clampers have been acting like modern day
highwaymen carrying out legalised mugging for too long.
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Clamping has been banned in Scotland since 1991 without problems.
The Bill should ensure that it will become a criminal offence to clamp on private land which
will incur sentences of up to £5,000 at a Magistrates Court or unlimited fines at the Crown
Court.
Subject to parliamentary approval, The Home Office anticipates that the Bill will go on to
gain Royal Assent by the end of 2011, with the ban coming into force as soon as possible
after that date.
Dealer news__________________________________________________
Falling sales force Caffyns to shut outlets
SOUTH of England-based car dealership group Caffyns is closing outlets to cope with falling
sales.
It has sold a Citroen dealership in Uckfield and a small Ford business in Haslemere and is in
the process of closing three other ‘underperforming’ businesses - a body shop in Hailsham, a
Nissan/Chevrolet dealership in Eastbourne and a bodyshop in Tunbridge Wells.
In a trading statement the company said that new car sales in the four months to January 31
were down by 17.9% from the same period a year ago. However, Caffyns said it was winning
market share as the total new car market fell by 28.4% during the period.
Used car sales were up by 11.3% during the four month period at Caffyns, despite the effect
of the harsh winter weather throughout the south-east of England in December, the company
said.
‘While consumer confidence is clearly central to the financial performance of the company,
the actions we are taking to remove under-performing dealerships, to reduce costs generally
and to invest in larger, more modern facilities will provide a stronger portfolio of businesses
for the future,’ said the company.
Ford promises higher repair standards with RAC checks
FORD Authorised Repairers say they will achieve higher standards of workshop service as
the manufacturer introduces tougher measures to its quality programme following the success
of a partnership with RAC.
The scheme involves RAC engineers conducting in-dealership quality checks on customer-
owned vehicles to confirm that any service or repair work has been completed to the
standards prescribed by Ford Motor Company.
Since it was first introduced five years ago, the programme has shown that quality levels in
Ford Motor Company’s 700-strong dealer workshops have improved, with a 57% reduction
in the number of identified faults.
As a result of the continued success of its partnership with RAC, Ford is raising the bar on
standards which means that all workshops must now meet stricter quality standards than ever
before.
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The new standards come as RAC engineers reach the milestone of 50,000 customer-owned
Ford vehicle inspections this month. In addition, mandatory internal quality checks conducted
by the dealerships recently hit the one million vehicles mark.
Darren Golding, programme manager for RAC said: ‘The quality programme is constantly
evolving and improving to meet the needs of Ford’s dealers and ensure the highest of
standards. Having hit all of the targets, dealer standards will be tightened to ensure even
higher levels of quality performance.
‘Client satisfaction and ensuring Ford has confidence in its dealer network are priorities for
us. By helping dealers to increase the quality level of their workshop offering and ensuring
Ford’s strict standards are met, customers have been further assured in the service they
receive, driving additional volume through the doors.
‘We hope to build enough customer confidence so that they continue to take their vehicle to a
Ford Authorised Repairer year after year, far beyond the warranty period.’
General motor industry news___________________________________
Fleet sales hold up in shrinking new car market
NEW car sales fell 11.5% to 128,811 units in January as private buyers stayed away from
showrooms.
While private new car sales fell 20.8% year-on-year to 51,570 registrations (January 2010:
65,115), fleet sales fell just 3.1% to 70,448 (January 2010: 72,726) and business car sales
dropped 11.1% to 6,793 (January 2010: 7,638).
As a result, corporate sales took an increased market share - 60% up from 55.3% a year ago -
as private new car registrations accounted for only 40% of the market last month, according
to data from the Society of Motor Manufacturers and Traders.
The SMMT said that the decline from January 2010 volumes of 145,479 was on par with its
forecast and, in part, reflected the loss of the Scrappage Incentive Scheme (SIS), which
finished almost a year ago.
Apart from there being no SIS to fuel sales last month, the SMMT also said that the rise in
VAT to 20%, uncertainty over the economic setting and potentially a consequence of the bad
weather in December may also have contributed to the reduction in sales.
SMMT chief executive Paul Everitt said the fall in sales marked the beginning of a
challenging year for the UK motor industry. Overall volumes are forecast to decline by 5% in
2011 to 1.93 million cars.
He added: ‘Consumer confidence is low and it is important that Government uses the March
Budget to help relieve some of the financial pressure on motorists by freezing fuel duty,
while providing stability and certainty on motoring taxes. Despite the challenging conditions,
the demand for low CO2 -emitting and highly fuel efficient cars continues to grow.”
The market share for cars with CO2 emissions under 100 g/km continued to increase, rising
by over 65% in January, while average new car CO2 emissions were 141.5 g/km last month,
compared with an average of 144.2 g/km in 2010.
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Demand for the mini and supermini segment, boosted by the SIS a year ago, fell sharply last
month. However, demand for executive, luxury, MPV and dual purpose segment cars
recovered strongly.
Demand for diesel cars rose and their market share was once again over 50% in the month.
Alternative fuelled cars matched their record share of 1.4% of the market.
The Ford Focus was the best selling new car in January and also the top selling diesel model
in the month. Ford retained its position as the UK’s number one vehicle seller.
Auto Windscreens in investment talks with cash running out
AUTO Windscreens, Britain’s largest supplier of replacement vehicle windows and leading
repairer of damaged windscreens, is reported to be scrambling for rescue financing amid
concerns that it is close to running out of cash.
Bankers to Auto Windscreens are in talks with several turnround investors about providing
emergency capital, according to a report in the Sunday Times (February 6).
The Chesterfield-based business, which employs about 1,400, was sold by the insurer Aviva
in 2008. Despite several attempts at restructuring its finances, the group has failed to get its
debts under control. The firm told the paper that ‘a restructuring is under way’.
Lloyds Banking Group, the firm’s main lender, has appointed Deloitte to search for new
investors because it is worried about its exposure. If this proves fruitless, Lloyds could decide
that the best way forward is to push the group into administration. Deloitte has been lined up
as administrator.
City sources say the AA has been seriously considering buying Auto Windscreens. Its interest
has cooled, however, after learning of the extent of the firm’s financial difficulties.
Three years ago Aviva sold Auto Windscreens and another automotive business, British
School of Motoring (BSM) to Arques Industries, a German private equity group.
BSM was later sold to its management and then went into administration. Last week it was
bought by Acromas, parent company of the AA (Digest: February 3). Arques sold Auto
Windscreens to AW Industries, a company set up by Christian Daumann, a senior executive
at Arques.
In its most recent set of accounts, Auto Windscreens reported a pre-tax loss of £5.4 million
for 2009.
Auto Windscreens, which was set up in 1971, operates from a state-of-the-art factory in
Chesterfield, runs a fleet of more than 600 mobile service units and has a nationwide network
of fitting centres.
Tesco planning to break into used car market
SUPERMARKET giant Tesco is planning an imminent assault on the used car market in the
UK.
The company plans to sell hundreds of thousands of used cars a year - aged between one and
four years old - via a website similar in style to Autoquake, according to a report in Car
Dealer magazine.
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‘The sole aim of this will be for Tesco to up-sell its finance and insurance products to buyers
of these used cars,’ according to one source quoted by the publication. ‘It’s likely they’ll
make very little on each sale but instead use it to make lots of revenue from their financial
arm.’
So far Tesco has made no comment.
The speculation follows last month’s news that Tesco had broken into the tyre trade by
linking up with online tyre retailer Blackcircles.com (Digest: January 20).
VAT rise leads to first new car price increase for three months
THE 2.5% hike in VAT and its impact on manufacturers’ basic new car list prices has
contributed to the first increase in model prices for three months, according to the latest
analysis from DrivenData.
The average price of a new car increased 2.208% across the UK market last month, which is
equivalent to an additional £607.
The latest rise means that the average new car price since February 1, 2010 has increased by
4.375%, or £1,177.69 from £26,918 to £28,096, according to DrivenData.
The underlying pace of inflation in car prices has slowed down over the past 12 months to
4.375% - it rose by 8.821% between January 2008 and January 2009.
DrivenData’s New Car Price Index is calculated from the retail prices of every car model
currently sold in the UK.
Don’t give air-con the winter cold shoulder, says Kwik-Fit
A BLAST of cool air may be the last thing on motorists’ minds in the winter, but drivers are
warned that keeping their air conditioning permanently off during cooler months risks storing
up trouble for later in the year.
New research among 2,000 adults for Kwik Fit, the UK’s largest automotive repair company,
has revealed that 56% of motorists keep their air-con switched off during the winter
months. And for the 43% of drivers who say they turn off their air-con off to save money, this
could be a false economy.
Kwik Fit says that air-conditioning systems are most effective if they are used regularly, and
leaving them switched off for whole seasons will reduce their efficiency when hot weather
returns.
Being unused for months can also lead to a build up of bacteria in the system, as well as the
possibility of the seals drying out, leading to a risk of leaks or corrosion, says the company.
However, drivers should not only consider winter use of air-con as a way to keep the system
in tune for the summer. Effective air-con will help demist windscreens more quickly in
winter, as it creates dry warm air rather than the moist air from outside the car.
Almost a third (29%) of drivers who leave their air-con off in the winter say they prefer to
open a window or sun roof. However, driving with a window open can be less fuel efficient
than using air-con, as it creates more drag and reduces the aerodynamic properties of the car.
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Ian Fraser, chief executive of Kwik Fit said: ‘Using air-con frequently helps keep it efficient,
but even so, systems naturally lose gas over time and should be recharged every two
years. We offer a guarantee to improve a car’s air-con performance by 10% or the service is
free.’
Kwik Fit is currently offering an air-con system recharge and lubrication for a special winter
price of £29 available until the end of February. A system de-bug, which will help remove
any bacteria and unpleasant odours, costs an additional £20.
Tyres can suffer a ‘hole’ lot of damage following cold snap
MOTORISTS can minimise the damaging effects of driving over potholes by making sure
their tyres are correctly inflated.
Hitting a pothole can cause serious internal tyre damage, which may result in dangerous
sidewall bulges, or result in cuts to the tyre which may expose cords, rendering it both
dangerous and illegal.
It has been estimated that in 2010 there were 8,000 pothole-related claims to insurers and the
early signs are that 2011 will exceed this due to the damage caused to roads during the
freezing weather.
Local authorities are also facing pressure as to which roads they prioritise for repair due to
cuts of up to 20% in road maintenance budgets, according to the Local Government
Association.
Now councils in England are being advised by TyreSafe, the UK’s leading tyre safety
organisation, that they and Wales face a £165 million funding gap to repair roads damaged by
the winter weather.
TyreSafe chairman Stuart Jackson said: ‘Potholes can cause significant damage to wheels and
tyres. It’s therefore important for drivers to ensure their tyres are properly inflated to reduce
any potential damage. If they do suffer the misfortune of hitting a pothole, drivers should
make sure both their wheels and tyres are thoroughly inspected by a professional for signs of
damage. This may occur in the form of cuts or bulges in the tyre or, as we have seen
increasing cases of, hairline fractures appearing in alloy wheels.
‘In fact, whatever time of year it is motorists should always check their tyre pressure at least
once a month and especially if they are planning any long journeys.’
Other effects of hitting a pothole include wheel misalignment, which may result in a vehicle
pulling to one side or cause vibrations in the steering wheel which can be distracting and
make the vehicle difficult to control. In less severe cases this can go unnoticed by the driver
yet still result in increased or irregular tyre wear and higher fuel costs.
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People on the move____________________________________________
Arval UK appoints new chief executive
FLEET and fuel management company Arval UK has appointed Bart Beckers as its new
chief executive following the decision of Jean-Marc Torre to leave to join Bank of the West
after five years in the role.
Beckers has strong experience in operational leasing having spent the last 15 years with
LeasePlan. Most recently he has been chairman of LeasePlan companies in France.
Torre will be leaving the company at the end of February to assume the leadership of the
Commercial Banking Group at Bank of the West, part of BNP Paribas Group which owns
Arval.
Vauxhall makes new senior appointments
VAUXHALL has appointed Andrew West, formerly retail network development director, to
the post of aftersales director with responsibility for all Vauxhall UK and Opel Ireland
aftersales, sales and marketing and warehouse operations.
West has 13 years under his belt at Vauxhall, having worked in network and franchising field
operations for the last 10 years. Prior to this he held a number of senior roles at Peugeot and
Nissan.
Replacing West as retail network development director is Andy Robson. Previously
Vauxhall’s national retail sales manager, Robson has been at Vauxhall 26 years, joining the
company as a business apprentice. During that time he has held a variety of positions of
increasing responsibility in sales and marketing.
Both report directly to Duncan Aldred, Vauxhall’s managing director.
Gregorious takes charge of sales at Chevrolet
CHEVROLET has appointed Daniel Gregorious as its national sales and operations manager.
Gregorious (37) will head up the national sales and operations team of 12, and will be
responsible for supporting the UK dealer network in driving forward new vehicle sales and
helping dealers to provide a top quality service to Chevrolet retail customers.
Before joining the team at Chevrolet, Gregorious built up experience of the UK automotive
industry, having successfully held a variety of sales and marketing positions throughout his
17-year career including working as an area manager at Kia Motors.
Nationwide in the Pink with new appointment
NATIONWIDE Accident Repair Services has started 2011 with a retail boost, with the
announcement that Daemon Pink has joined the UK’s largest fixed site and mobile vehicle
repairer as southern divisional director, bringing with him more than 20 years experience of
automotive retailing.
Pink joins Nationwide from Ford Retail Group, where he spent the past seven years as a
regional director. He will be based at the Nationwide Repair Centre in Milton Keynes.
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Mondial Assistance UK appoints CRM manager
MONDIAL Assistance UK has appointed Nick Crawford as CRM account manager, bringing
dedicated support to CRM activity across Mondial’s business with specific focus on the
Volkswagen Group.
In this new position, Crawford will be supporting the creation and support of CRM activity
tender responses and working with the account teams to maximise CRM opportunities for
their clients.
Crawford has worked for Mondial Assistance for four years on lead generation and customer
loyalty campaigns for other Mondial clients. His experience includes working with a range of
manufacturers across corporate and retail sales of passenger car and light vans.
His main focus for the Volkswagen Group is to identify where customer experience
influences the buying process and brand perception for fleet purchase. That crosses
manufacturer, retailer, fleet manager and end user needs.
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