Auto Industry Digest Issue no. 415
This week’s news for company executives March 31, 2011
This Week’s Briefing The Editor’s View
THE fleet industry has this week given its view on
Drivers ‘in the dark’ on year Chancellor of the Exchequer George Osborne’s
four company car tax burden Budget speech. Among all the comment the two
words that immediately spring to mind that fleet
Government gives ECO schemes chiefs should bear in mind are ‘education’ and
the green light ‘communication’. It is clear that vehicle operating
ACFO calls for restructuring and travel costs for business will continue to rise.
of AMAP system Meanwhile, for company car drivers’ benefit-in-
kind tax bills will increase on all but the very
Tyre maintenance is the key to lowest polluting vehicles. Therefore, employees
fleet budget control need to be educated to driver more
sympathetically to conserve fuel and reduce
A lighter right foot is the best vehicle wear and tear. Additionally staff who
fuel saver, says IAM drive their own cars on business need to be
RAC is put up for sale by reminded if every journey is necessary with
insurance giant Aviva AMAP rates increasing. Such messages should be
communicated to drivers at every opportunity and
Conventionally-fuelled cars to as part of a co-ordinated travel/mobility plan.
be ‘banned’ in cities by 2050 Employees need to be educated that a car is not
always the most cost-effective or efficient
Luton to build next generation mechanism for travel and other options do exist.
Vauxhall van model Only through education and communication will
businesses see vehicle costs reduce.
Budget 2011 reaction__________________________________________
LAST Wednesday’s (March 23) Budget statement saw the announcement of a wide range of
measures including those impacting on fuel duty, company car tax and mileage
reimbursement rates. Below we highlight the views of some industry organisations and
bosses as to what the future holds for fleets.
Drivers ‘in the dark’ on year four company car tax burden
COMPANY car drivers who are ordering vehicles now on four-year replacement cycles
remain in the dark as to what their benefit-in-kind tax bills will be in the fourth year of
driving the model.
And that, says ACFO, is unfair. The fleet operator organisation says it is pleased that, as it
requested, the Government announced in the Budget company car benefit-in-kind tax rates
for 2013-14.
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However, it said it remained concerned that advance notification of rates had slipped from a
three-year to a two-year cycle.
ACFO chairman Julie Jenner said: ‘Many employees have their company cars replaced on a
four-year cycle so they remain in the dark as to what their benefit-in-kind tax burden will be
in the fourth year.
‘For example, an employee choosing their company car today for delivery early in the 2011-
12 financial year and expecting not to replace it until 2014-15 still has no clarity as to what
their future tax bill will be.’
Gary Killeen, UK commercial director, GE Fleet Services, said that with the Chancellor
deciding to freeze company car benefit-in-kind tax rates below 95 g/km he was positing that
figure as the new fleet emissions benchmark.
‘This is an expected target in line with ongoing company car tax changes,’ said Killeen.
‘However, it is worth pointing out that fewer than 1% of available cars currently fall into the
sub-95 g/km category which gives some idea of the challenge that it represents. Certainly,
manufacturers will have their work cut out in providing a wider range of models suitable for
fleet use that reach this figure.’
He was also in agreement with ACFO that it was ‘disappointing’ that there was no
clarification on company car tax rates beyond the 2013-14 tax year.
Killeen said: ‘This means that fleets and drivers are today buying ‘blind’ in taxation terms -
they have no idea of the tax demands that will be made on them in 2014-15 and 2015-16.’
Alphabet director Mark Sinclair said: ‘The shape of benefit-in-kind tax for the next few years
now looks predictable, which is in everyone’s interest.’
But he added: ‘We would have liked to have seen the 3% diesel surcharge abandoned as the
great majority of low-emission cars are diesel and advances in engine technology and fuel
efficiency are rapidly minimising the issue of particulates and air quality pollutants.’
ALD Automotive managing director Keith Allen said the decision to freeze company car
benefit-in-kind tax rates below 95 g/km was ‘an incentive for the future as company car
drivers will struggle to find that kind of vehicle presently’.
A lighter right foot is the best fuel saver, says IAM
THE 1p a litre cut in fuel duty - in place of a near 5p a litre rise - provided a welcome break
for hard-pressed motorists and businesses, but eco-driving is the only guaranteed way to
reduce motoring costs, according to IAM (Institute of Advanced Motorists) chief examiner
Peter Rodger.
Rodger was speaking as the independent Office for Budget Responsibility warned that oil
prices were likely to peak remain at $107 or above through to the end of 2015. They are
currently above that figure and if the forecast is correct it means that future fuel duty rises
will be inflation-only related once the Governments newly announced fair fuel stabiliser if
introduced.
Rodger said: ‘It’s no longer an ethical choice, it’s a money-saving essential - especially in
rural areas where driving is a necessity. The best fuel-saver is a light right foot and
anticipating the road ahead.’
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Meanwhile, ACFO said it was pleased that the Government had acknowledged the pain being
suffered by all motorists and cut fuel duty by 1p per litre with immediate affect as well as
dropping the planned 1p per litre above inflation increase scheduled for tomorrow (April 1)..
However, said ACFO chairman Julie Jenner: ‘We would question how effective this measure
will be, given that fuel duty increases have been announced for future years starting on
January 1, 2012.
‘ACFO welcomes the introduction of the Government’s fair fuel stabiliser and removal of the
fuel duty escalator.
‘However, it remains absolutely essential that all fleet decision-makers continue to focus on
cost management. It is difficult to believe that with the unrest in the oil producing countries
of North Africa and the Middle East that fuel prices will fall significantly in the short term.’
Despite the fuel duty cut announcement there were immediate claims that some forecourt
operators did not pass on the full duty cut to motorists. As a result Prime Minister David
Cameron was quoted as saying that he was ‘watching like a hawk’ to ensure duty cuts were
passed on.
Reflecting on the reduction in fuel duty and the Government’s plan to introduce a fair fuel
stabiliser, Gary Killeen, UK commercial director, GE Fleet Services, said: ‘The reduction in
fuel duty is welcomed and not to be dismissed but is likely to be quickly swallowed up in
future fuel price rises.
‘It is interesting to note that the new stabiliser is being proposed at $75 per oil barrel limit but
with prices currently above $115, this seems unlikely to ever be triggered, certainly while
unrest continues in the Middle East and worldwide demand continues to rise.’
Alphabet director Mark Sinclair said: ‘When it comes to fuel’s impact on running costs, this
Budget is rather like losing a pound and finding 10p. The stabiliser will not cut duty at times
of high oil prices. It will just limit increases to the rate of inflation, which is currently running
at over twice the Government’s target.
‘Businesses are being given a brief respite from fuel cost pressures, not a lasting reprieve, and
Alphabet expects to be kept busy designing and implementing strategic changes to help fleets
structurally reduce their operating costs.’
Neville Briggs, managing director, CFC Solutions, said: ‘The Chancellor’s moves on
reducing the fuel duty and abolishing the fuel escalator are very welcome ones but so many
other factors are causing petrol and diesel prices to rise quickly that saving a penny or two on
a litre has a limited impact.
‘Certainly, fleet managers should not be using this development as an excuse for inaction on
fuel. While savings on fuel duty are welcome, the best way to minimise your company car
and van petrol and diesel costs remains a structured fuel policy that enables you to really take
control over your fuel use.’
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Tyre maintenance is the key to fleet budget control
BUSINESSES may be breathing a sigh of relief after Chancellor of the Exchequer George
Osborne axed tomorrow’s (Friday, April 1) fuel duty rise which could have added almost 5p
to the price of a litre of petrol and diesel and replaced it with a surprise 1p a litre duty cut -
but the cost pressures facing organisations remain immense.
However, even under fire from the rate of inflation increasing to 4.4%, up from 4% in
January and average fuel prices having risen by almost 20% (diesel) and 15% (petrol) in the
last 12 months, there is much that fleet bosses and their company car and van drivers can do
to mitigate the impact on operating budgets, according to Kwik-Fit Fleet.
A key area for focus should be optimising company car and van tyre wear - particularly when
tyre replacement on an average company vehicle over three years/60,000 miles typically
accounts for a third of the model’s maintenance budget, says Peter Lambert, sales director of
Kwik-Fit Fleet.
‘If drivers are educated to look after their vehicle tyres in accordance with best practice and
other straight-forward advice is followed to keep costs in check then fleet operational budgets
will not escalate out of control,’ said Lambert. ‘Indeed most if not all of the cost pressures
can be offset through good management and the communication of ‘top tips’ to drivers.’
For example, motor industry data suggests:
Incorrectly inflated tyres can increase fuel consumption by up to 10% thereby
costing money and endangering lives. Tyre pressures should be checked at
least once a month
Running tyres that are under-inflated by 20% of the recommended tyre
pressure level can reduce a tyre’s life by up to 30% thus signficantly
increasing tyre use during a vehicle’s fleet lifecycle
Over-inflated tyres also result in accelerated wear on the tread centre as well
as making them more susceptible to impact damage
Keep to speed limits - driving at 70 mph rather than 85 mph on a motorway
uses 25% less fuel and reduces carbon dioxide emissions
Fleets can prolong tyre life, boost fuel economy and improve the road safety
of their company cars and vans by inflating tyres with nitrogen instead of air.
In relation to inflating tyres with nitrogen, which is available at Kwik-Fit centres, instead of
air, a study by the Department of Transportation’s National Highway Traffic Safety
Administration (NHTSA) in the United States concluded: ‘The primary result expected from
nitrogen inflation is to enhance retention of tyre pressure over time, which will help maintain
tyre performance properties such as rolling resistance, handling, and durability.’
In the 90-day static laboratory NHSTA test, the inflation pressure loss for new tyres inflated
with nitrogen was approximately two-thirds of the loss rate of new tyres inflated with air.
Meanwhile, tyre manufacturers are applying ‘double-digit’ price rises to tyres this year
principally due to a increases in the cost the raw materials used in tyre production namely
rubber and crude oil; rising demand for motor manufacturers for tyres particularly to meet
new car demand in emerging markets and an increase in demand for winter tyres throughout
Europe, especially in Germany - where they have been made compulsory..
Lambert said: ‘The Chancellor’s Budget decision not to press ahead with the 1p above
inflation rise in fuel duty that would have added almost 5p to the price of a litre of petrol and
diesel is welcome even though pump prices remain exceptionally high. But with continuing
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uncertainty in the main oil producing region of the Middle East and North Africa no respite in
the relentless rise can be expected.
‘Similarly, with tyre prices increasing at unprecedented levels it is essential that fleet chiefs
and drivers regularly check that tyres are correctly inflated and employees adopt an eco-
friendly driving style to maximise fuel usage and tyre life thereby ensure operating budgets
remain under control.’
ACFO calls for restructuring of AMAP system
ACFO has called for a wholesale restructuring of mileage rates in the wake of the
Government’s decision to increase Approved Mileage Allowance Payments (AMAPs).
The Chancellor announced a rise in the tax-free amount for employees who drive their own
cars and vans on business from 40p to 45p for the first 10,000 miles. However, he kept the
figure for journeys made after 10,000 miles have been clocked up at 25p.
The Chancellor’s move, which is effective from April 6, came in the wake of a decision
earlier this year to slightly increase Advisory Fuel Rates, which are used to reimburse
company car drivers.
ACFO chairman Julie Jenner said: ‘While ACFO acknowledges that fuel rates have increased
significantly and AMAP rates have not increased since they were introduced in 2002, we
continue to believe that a restructuring of the system is required, rather than the continued
‘broad brush’ approach taken by Government.
‘A more subtle approach instead of the current two-band, single mileage threshold system in
place is worth analysing.’
Gary Killeen, UK commercial director, GE Fleet Services, said the rise in AMAP rates would
help to protect companies that currently operated employee car ownership (ECO) schemes
from increasing fuel prices.
But, he added: ‘The increase of 5p per mile only addresses the typical increase in fuel costs
over a relatively short period and, therefore, we do not anticipate a surge in new entrants to
ECO schemes.
‘Also providing welcome reassurance to existing ECO schemes is the news that the
Government will not be including them in any future action regarding disguised
remuneration, which we believe is a fair and positive development.’
Alphabet director Mark Sinclair said: ‘Raising the AMAP rate to 45p per mile will help the
Government and local authorities with on-going negotiations with public sector unions aimed
at increasing grey fleet mileage rates. It will also benefit ECO scheme users.’
ALD Automotive managing director Keith Allen said: ‘The increase in the approved mileage
expense rate from 40p to 45p per mile is good news and is long overdue.
‘With the fuel duty levy cut by 1p per litre and further rises delayed, this can only be good
news, but businesses will still need to think about their long-term fuel strategy and how best
to conserve fuel.’
Meanwhile, Killeen questioned the Government’s motives behind its decision to increase the
fuel benefit charge multiplier from £18,000 to £18,800.
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He said: ‘The increase in tax payable on ‘free’ fuel for company cars is well below the
increase in petrol and diesel prices seen in the last few months in percentage terms, meaning
that it will effectively represent a net reduction in most free fuel bills. Governments have
been discouraging free fuel provision for years, so is this a change in policy?’
Government gives ECO schemes the green light
THE Government has given the ‘OK’ to employee car ownership schemes saying that it does
not consider their popularity to be tax avoidance.
In the Budget, Chancellor of the Exchequer George Osborne announced that the Government
would be tackling what it called ‘disguised remuneration’.
Published alongside the raft of Budget papers was a document from HM Revenue and
Customs and HM Treasury called ‘Overview of Tax Legislation and Rates’. It said that
‘disguised legislation’ would be addressed in the Finance Bill, which was due to be published
today (Thursday, March 31).
The legislation is aimed at tackling ‘third party arrangements which seek to avoid or defer the
payment of income tax or National Insurance contributions due on employment income’.
A draft schedule to enact the measure was published on December 9 last year. However,
following representations from business, representative bodies and professional advisors the
Government amended the draft legislation to limit impacts on employers and individuals
where it was possible to identify arrangements that could not be used for tax avoidance
purposes.
The document sys: ‘The changes made include exclusions for group company transactions
and certain short-term loans as well as arrangements relating to deferred remuneration,
defined employee car ownership schemes, further employment-related securities schemes and
protecting legacy pension savings within these arrangements.’
Company car salary sacrifice schemes to help staff beat tax rises
DEMAND for company car salary sacrifice schemes is expected to increase as sensitive
employers look to introduce innovative funding solutions to help staff make tax savings,
according to Inchcape Fleet Solutions.
Household budgets are already coming under significant pressure as rising energy and
commodity prices, including essentials such as domestic heating and food, put a major
squeeze on salaries with the inflation rate at 4.4% and predicted to rise further.
Additionally, from April 6 hundreds of thousands of employees face tax rises as a result of
changes in tax thresholds and both they and their employers will see National Insurance rates
increase by 1%.
Steve Archer, Fleet Services Director, Inchcape UK, said: ‘It therefore makes economic sense
for employers and their HR directors to help their valuable staff to make every pound stretch
as far as possible. Introducing a salary sacrifice scheme is one method.
‘Salary sacrifice works best when substituting salary for a taxable benefit at a much lower
rate.
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‘With take home pay for many employees set to reduce and benefit-in-kind tax rates
favouring low emission company cars, employees can potentially save themselves money by
sacrificing some of their salary and using it to fund a car with low CO2 emissions.’
While the financial benefits of a company car salary scheme are individual to each employee,
Inchcape Fleet Solutions calculates that a basic rate tax-paying 37-year-old living in the
Home Counties with a no claims bonus of six years or more could obtain a Volkswagen Polo
1.2 60 S three-door (128 g/km CO2) with a P11d value of £9,940 at an estimated net monthly
average cost to themselves of £175.47 on a 36-month/30,000-mile contract.
Making similar employee assumptions, a person driving a BMW 116d Sport three-door (118
g/km CO2) with a P11d value of £19,185 would be able to fund the car through their
employer under the Inchcape Fleet Solutions’ ‘IFS Justdrive’ salary sacrifice programme at a
net monthly average cost to themselves of £289.16.
The estimated gross monthly cost to the employee of the Volkswagen Polo is £250.06 -
vehicle costs of £194.25, SMR costs of £17.03 and fixed term motor insurance of £38.78 -
however, that figure would be reduced by £30.32 a month to £219.74 as a result of their
employer passing on monthly National Insurance savings due to the salary reduction.
Additionally, the employee will make monthly tax and National Insurance savings totalling
£70.32 as a result of sacrificing some of their salary for a company car but will pay £26.05
per month in benefit-in-kind tax on the Polo.
Therefore, ‘IFS Justdrive’ salary sacrifice calculations reveal a monthly tax efficiency saving
to the employee of £44.27 with the net cost of running the Polo being £175.47 a month
(£219.74 - £44.27).
Similar calculations relating to the BMW 116d reveal that the estimated gross monthly cost to
the employee is £398.89, which is reduced to £350.52 a month as a result of their employer
passing on monthly National Insurance savings of £48.37 following the salary reduction.
Additionally, the employee will make monthly tax and National Insurance savings totalling
£112.16 as a result of sacrificing some of their salary for a company car but will pay £50.80
per month in benefit-in-kind tax on the BMW.
Therefore, ‘IFS Justdrive’ salary sacrifice calculations reveal a monthly tax efficiency saving
to the employee of £61.36 with the net cost of running the BMW being £289.16 a month
(£350.52 - £61.36).
All figures quoted relating to income tax, National Insurance and benefit-in-kind tax are a
blended rate over the contract term based on published figures at time of publication.
Archer said: ‘Careful vehicle selection is crucial to make company car salary sacrifice
schemes as tax-efficient as possible. However, our calculations show that choosing the ‘right’
vehicles can deliver tremendous value for money for staff. It is impossible to run such
vehicles privately at such a low cost.
‘A further benefit of low emission models is that they offer top-class MPG thereby ensuring
that even with fuel prices at record levels value for money is obtained.’
He added: ‘I would urge businesses to help their employees make every pound stretch as far
as possible and give their staff the option of driving a company car through a salary sacrifice
scheme.
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‘Company cars continue to be hugely emotive for employees and a powerful recruitment and
retention tool. If staff can take to the wheel of a new car and make financial savings that will
enable their household budgets go further then employees will be appreciative.
‘With rising inflation and tax increases we believe salary sacrifice can play a major part in
companies’ remuneration strategy in relation to cars.’
£100m more to fill potholed roads ‘not enough’
THE additional £100 million pledged by the Government to help local authorities mend the
UK’s potholed roads is ‘welcome but it is not enough to cure Britain’s pothole pandemic’,
according to IAM (Institute of Advanced Motorists) director of policy and research Neil
Greig.
He added: ‘We need to ensure that roads are properly looked after so we don’t store up bigger
maintenance bills for future.’
Meanwhile, automotive insurer Warranty Direct is calling for the Government to establish a
long-term road repair and maintenance plan for local and minor roads, following Chancellor
George Osborne’s to double the amount of money the Government is making available to
help patch up the nation’s crumbling highways.
Warranty Direct, which runs road maintenance campaign website Potholes.co.uk, says that
the cash injection alone cannot solve the problem of Britain’s dire roads.
Managing director Duncan McClure Fisher said: ‘Motorists will appreciate this extra support
as it will mean less cars get damaged. It’s another signal that the Government, which is
simply dealing with the financial disaster left by the previous administration, is recognising
the need to support motorists, but the focus needs to be on local and minor roads.
‘It’s not a solution to the problem - piecemeal cash injections won’t do the trick - but at least
it’s a step in the right direction.
‘This needs to be the springboard from which the Government establishes a five or 10-year
plan to revitalise Britain’s ‘Third World’ local road network.’
Budget cuts force rural councils to resort to short-term road repairs
A SURVEY of 20 UK councils by RAC has revealed that road conditions across the country
continue to decline as the impact of Government budget cuts has forced many councils to
undertake short-term repairs rather than fund permanent solutions.
Twelve of the 20 councils questioned, including nine in rural areas, reported that the focus of
their road maintenance strategy has now switched to short-term repairs in order to fill more
potholes caused by the harsh winter.
RAC’s research found that almost six months since the Comprehensive Spending Review
(CSR), budgetary worries are adversely affecting a number of councils.
Some councils are protecting road budgets using new private schemes and others are
supplementing money from central Government with extra spending. This is despite an
additional £100 million funding pledged by the Government in last week’s Budget on top of
the £100m announced last month.
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Eight out of the 20 councils have reported reductions in road maintenance budgets.
A further two councils have resorted to using extraordinary funds such as council reserves to
attempt to cover the shortfall caused by cutbacks in Government grants.
Another two councils have set up private finance initiatives (PFIs) to ring fence highway
maintenance budgets from Government cuts.
The largest reported cutback in road maintenance budget was £5.8m for one urban council
which also expressed concern about driver safety. This council alone has a backlog of £160m
in road repairs.
The lack of available funds has meant a downward spiral for road quality as repairs from
winter 2009/10 have not yet been carried out by all councils, leading to further deterioration
from the latest poor weather conditions, said RAC.
The findings are supported by research among RAC patrols who have reported a 25%
increase in callouts resulting from potholes and poor road conditions over the past 12 months
with wheel and tyre damage the most common problem.
Adrian Tink, RAC motoring strategist, said: ‘It’s been a tough year for both the roads and the
local councils manfully trying to repair them. Both have suffered from a harsh winter and
budget cuts. The reality is that we’re left with a downward spiral of worsening road surfaces
and councils playing catch-up with less resources to do the job. In that situation it is
understandable that councils are opting for cheaper but more short-term repairs to the road
surface.’
Fleet file_____________________________________________________
Fleet sector growth to help Nationwide expand
NATIONWIDE Accident Repair Services says it will target the fleet sector more
aggressively as it looks to expand.
The company has reported pre-tax profits of £6 million for the 12 months ending December
31, 2010 up from £5.1m for the previous year on earnings of £172.3m (2009: £170.9m).
Chairman Michael Marx said: ‘Against trading conditions which showed no material
improvement on the prior year, our results show a 19% rise in profit before tax. This increase
in profitability was helped by an improvement in gross margins, reflecting our continued
focus on operational efficiencies and on the cost base, as well as a more favourable mix of
repair work undertaken.’
He said that growth opportunities in both the insurance and non-insurance sectors were
‘promising’ and that the company was optimistic of ‘another year of growth’ in 2011.
Last year was the first year of a three-year growth plan embarked on by Nationwide and the
company said during the year it had increased revenues from the fleet sector by 27% to
£19.6m.
The company says that the UK vehicle repair market is worth some £5.1 billion a year and its
market share remained less than 5% with its fleet presence currently ‘small’
Chief executive Michael Wilmhurst said the company was looking to expand its business
across the three key sectors of insurance, fleet and retail repairs.
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Total spend on vehicle repairs by the fleet market is estimated to be £1.5bn a year - £600m of
insurance-funded repairs and £900m spent directly by fleet operators. It is the self-funded
fleet market that Nationwide says it is now targeting more aggressively.
GreenRoad forms strategic partnership with RoadSafe
GREENROAD, which claims to be the world’s leader in driver safety and fuel efficiency, has
signed up as a strategic partner with RoadSafe, which manages the Driving for Better
Business (DfBB) campaign.
GreenRoad chose to partner with RoadSafe because of the organisation’s reputation as a
leading forum for promoting and devising solutions to road safety problems notably in the
business community.
Through the partnership, the two organisations say they will work together on a number of
activities including a workshop on good practice in managing company drivers in London on
June 30. Also GreenRoad will sponsor a special Prince Michael International Road Safety
Award to recognise an operator using technology to improve fleet safety.
RoadSafe’s mission is to reduce road deaths and injuries through building partnerships
between the motor industry and related companies, traffic engineers, the police and road
safety professionals, promoting the safe design and use of vehicles and roads and
encouraging education and innovation.
GreenRoad has worked alongside RoadSafe on projects in the past and was awarded a Prince
Michael International Road Safety Award in recognition of its work with Staffordshire
County Council on its young driver safety programme in December 2008.
‘GreenRoad’s customers such as the Ministry of Defence, Bunzl, Iron Mountain and Balfour
Beatty Utility Solutions have cut risk as much as 93% by changing driver behaviour, making
the roads and drivers safer while also reducing insurance premiums, fuel consumption and
vehicle wear-and-tear,’ said Adrian Walsh, director of RoadSafe.
‘We trust that by working closely with such an innovative company as GreenRoad and its
customers we will gain valuable first-hand experience of the important role that Intelligent
Transport Systems (ITS) plays in road safety management.’
Aidan Rowsome, general manager of GreenRoad EMEA, said: ‘We chose to partner with
RoadSafe because of the important role the organisation plays in shaping standards of
excellence for professional driving for work. We will be working together to develop a range
of creative materials and events designed to help companies improve driver safety.’
GreenRoad says it provides the most effective, proactive approach to smarter and safer
driving. As driving decisions are responsible for 90% of all accidents and up to 33% of fuel
spend, the only way to truly reduce risk and improve efficiency is by focusing on driver
decision-making, it says.
GreenRoad 360 provides drivers and fleet managers with real-time, comprehensive feedback,
online reporting, analysis and coaching on their abilities, manoeuvres and patterns. A typical
GreenRoad customer is claimed to see up to a 10% reduction in fuel-consumption and
emissions as well as a 50% reduction on crash costs.
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Tusker goes live with salary sacrifice car scheme for National Grid
NATIONAL Grid has strengthened its flexible benefits offering by awarding Tusker the
contract to provide a bespoke salary sacrifice car scheme to its 10,000 UK employees.
The salary sacrifice car scheme has been added to National Grid’s existing employee benefits
portfolio, available to UK staff, via an online flexible benefits system provided by Vebnet,
specialists in employee benefits solutions.
On behalf of National Grid, Vebnet carried out a full and comprehensive feasibility study and
put the scheme out to tender to find the best provider to suit National Grids’ specific
requirements.
Richard Morgan, of Vebnet, said: ‘A green car scheme was seen as a fantastic enhancement
to the existing range of benefits for National Grid, particularly as it provides a great way for
employees to switch to more environmentally-friendly cars and save money at the same time.
The interest from employees has been phenomenal.’
Launched earlier this year, in excess of 100 new car orders were received in the first 48
hours.
Caroline Adams, National Grid’s employee benefits manager, said: ‘Our flexible benefits
plan is an important element of National Grid’s Total Reward package. We see the
introduction of salary sacrifice cars as a great way of broadening its appeal. We knew the
scheme would be popular, but the volume of orders placed in the first month has exceeded all
our expectations.’
Tusker claims to have more than 40 salary sacrifice car schemes in operation, covering an
eligible audience of 300,000 employees, which is soon to be increased by a further 11
schemes in the next few weeks.
Businesses involved in electric Nissan Leaf trial
THREE businesses and three local authorities were among 14 organisation and private
individuals who have taken delivery of an electric Nissan Leaf as part of their participation in
Switch EV, a major electric vehicle test drive in North East England.
The Switch EV project, which began in September last year and involves several other
vehicle manufacturers, is one of eight UK projects supported by the Technology Strategy
Board’s £25 million Ultra Low Carbon Vehicles Demonstrator Programme and is aimed at
accelerating the widespread adoption of electric vehicles in the UK.
The 14 drivers will use the five-seater vehicle as their own car for six months to experience
and report on life with an electric car.
The cars were handed over to the participants in a ceremony at the Nissan Sunderland Plant
in the presence of UK Minister for Business and Enterprise Mark Prisk MP, who also
received a tour of the production facilities where the Leaf will be manufactured from 2013.
Prisk said: ‘The UK Government has set a clear ambition of placing the country at the global
forefront of low and ultra low carbon vehicle development. Nissan in Sunderland has taken
up the challenge.’
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The businesses involved in the project are: Capital Shopping Centres, Cobalt Business Park
and Greggs. The tree local authorities involved are: Gateshead Council, Newcastle City
Council and Sunderland City Council. A 15th Leaf will be added to the Switch EV project in
the coming weeks.
After six months the Switch EV Leafs will pass to a new group of people to experience life
with an electric vehicle.
More than 150 people are expected to test a total of 49 new, all-electric vehicles from
different manufacturers during the Switch EV project.
Bespoke data collection units have been installed in each vehicle to provide data, including
the effects of road topology and congestion on the range of the battery, which is expected to
aid the development of electric vehicles.
The Switch EV project is being rolled out alongside the installation of a comprehensive
electric vehicle recharging infrastructure in the North East as part of the UK’s Plugged in
Places scheme, which will see 1,300 regional charging points installed in the region by 2013,
including domestic charging units, on-street charging posts and quick chargers capable of
providing a 0-80% charge within 30 minutes.
The five-seat Leaf is the 2011 European Car of the Year. It is powered by an 80kW electric
motor. The model has a range of 109 miles and a top speed of 90 mph.
Toyota Prius joins leading UK airport taxi fleet
AIRPORT taxi service Checker Cars has taken delivery of the first of an order for 80 Toyota
Prius cars.
The five full hybrid hatchbacks arrived at the company’s Stansted, Essex, office to take their
place in an existing fleet of 80 MPVs, and will be followed by 10 more at Stansted over the
next two months.
Checker Cars employs 1,000 drivers and is the official taxi operator not only at London
Stansted but at Gatwick, Bristol, Cardiff and Southampton international airports. The
company also services London Heathrow from an off-airport office.
The Toyotas, the first on the Checker Cars fleet, were supplied through Hills Toyota of
Woodford Green in Essex.
‘We will expect to replace the cars every couple of years,’ said Checker Cars’ managing
director David Crouch. ‘We’re initially using them at Stansted but we will then involve our
other airports.
‘Our environmental policy is to reduce emissions wherever possible, and we’re also looking
for greater economy in the operation of the fleet, because with fuel prices as they are that’s
becoming more and more important. Congestion charge is also a factor.’
The Toyota Prius in T4 form offers carbon dioxide emissions of 92 g/km and fuel economy
of 70.6 mpg on the combined cycle.
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Chauffeur company takes on fleet of Toyota Prius hybrids
PLANS by eCorporate Travel to become Scotland’s first carbon-neutral chauffeur company
have been advanced with the addition of the first of a fleet of Toyota Prius hybrids.
The company, based in Loanhead on Edinburgh’s southern outskirts, is a self-contained
offshoot of Edinburgh Executive Travel, which has been offsetting its saloon and people-
carrier emissions for the past two years.
Although eCorporate Travel has been building the foundations since the beginning of 2010, it
began operations at the start of February with its white Toyota Prius T4 five-door hatchbacks,
with new livery and logos.
The service is already being used by bluechip corporate clients in Edinburgh and the
Lothians, and while the company has committed to taking on 14 Prius cars this year, it is
ready to order more if other prospective clients come on board.
‘The feedback has been phenomenal,’ said managing director James Ritchie. ‘Almost every
company now has a corporate responsibility on green issues. By using eCorporate Travel,
they can reduce their carbon footprint while not compromising on service or price.’
eCorporate Travel says that carbon emissions using the Toyota Prius (89 g/km) undercut by
62% those of a standard hackney cab (244g/km). Assuming an average of eight 10km
journeys a day, the company estimates that this would save 3,000kg of carbon dioxide a year
- equivalent to the energy needs of a three-bedroom house for six months.
Through Trees4Scotland, the company also promises to plant enough native trees to offset
more than double the expected emissions of its clients, and aims to achieve “Oak Status” for
each qualifying corporate. This would signify the offsetting of 73 tonnes of carbon dioxide -
the equivalent of driving 820,000km in a Prius.
Environment Agency goes electric with first Mitsubishi i-MiEV
THE Environment Agency has taken delivery of its first pure electric vehicle in a bid to
reduce the organisation’s carbon footprint.
The Mitsubishi i-MiEV, which is contract hired through Hitachi Capital Vehicle Solutions,
has been delivered to the Agency’s Brampton office in Cambridgeshire.
John Orr, environment manager for The Environment Agency said: ‘This is a really exciting
development. I am really keen to explore the potential of the vehicle and to get comments
from our staff about what they think of it once they’ve used it in their normal work.’
The Agency hopes that the i-MiEV will help its fight against climate change. Mark Ford-
Powell, of the Agency’s Fleet Operations, said: ‘Over recent years we have seen technology
in cars improve resulting in many low emission cars on the road and on our fleet. The
introduction of an electric car to our fleet will provide us with further emission savings and
the opportunity for us to measure the long term suitability of operating an electric car.’
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New accreditation aimed at leasing broker sales force
THE British Vehicle Rental and Leasing Association has launched an online accreditation
scheme for sales staff within leasing brokers - the latest in a series of measures aimed at
raising standards within the sector.
The programme is available to staff at the 100+ leasing brokers currently in BVRLA
membership. Once registered, candidates receive a username and password which enables
them to access online learning material and take the accreditation test.
Topics covered include: corporate and industry governance, regulatory compliance, business
vehicle acquisition methods, sales techniques and a glossary of industry terms. The
association envisages that two to three hours of study, backed up by six months industry sales
experience, will be sufficient to prepare candidates for the 40-minute online test.
Accreditation lasts for one year.
‘The accreditation met all the skills and knowledge required in my current role,’ said Jen
Crombie, an account manager at Fleet Alliance, who completed the programme during its
pilot phase.’
‘This programme will play an important role in helping the sector to promote the high
standards being delivered by BVRLA leasing brokers,’ said Mike Lloyd, chairman of the
BVRLA Leasing Broker Committee and managing director of Central Contracts, which has
enrolled three members of staff on the accreditation scheme.
Model update________________________________________________
Jaguar unveils most efficient engine yet
JAGUAR has unveiled its most efficient engine yet in the form of a new 2.2 litre diesel unit.
Developing 190 PS and 332 lbs ft of torque, the new engine is capable of returning 52.3 mpg
on the combined cycle while emitting 149 g/km.
Making its debut on UK roads fitted to a prototype development vehicle, the new four-
cylinder 16v common rail diesel engine displaces 2,179 cc and is installed in a north-south
configuration for the first time.
The new engine features a water-cooled turbocharger with low-friction pistons, new injectors
and a new crankshaft. The new configuration allowed Jaguar engineers to add a new oil pan
and new electronic systems affecting the crankshaft to allow the new intelligent Stop-Start
system to operate more efficiently.
The inclusion of the Stop-Start function is estimated to increase overall fuel efficiency
between five and seven per cent.
Along with a new engine, the development vehicle debuts an eight-speed ZF automatic
gearbox.
The sprint to 62 mph takes 8.5 seconds before achieving a maximum speed of 140 mph.
The new powertrain will feature in a future XF production car with specifications and an
estimated on-sale date being announced at the New York Auto Show, which opens on April
20.
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Mercedes to add coupe to C 63 AMG range
MERCEDES-Benz will expand its C 63 AMG range in the summer with the addition of a
coupe model. Pricing and specification of the model have still to be confirmed.
The AMG 6.3 litre V8 engine powering the car delivers a maximum output of 457 bhp and
peak torque of 600 Nm. Acceleration from 0 to 62 mph takes 4.5 seconds and the top speed is
155 mph (electronically limited). Combined cycle fuel economy is 23.5 mpg.
The new coupe variant will benefit from all the technology updates that have been adopted on
the C 63 AMG saloon and estate models including the AMG SPEEDSHIFT MCT 7-speed
sports transmission.
Porsche to launch new flagship for Panamera range
PORSCHE has introduced a new flagship model to its Panamera range - the Turbo S, which
will go on sale in June with prices starting from £122,623.
The model is powered by a 4.8 litre, V8 twin-turbocharged engine that delivers 550 bhp, an
increase of 10% or 50 bhp more than the Panamera Turbo. Torque also increases from 700 to
750 Nm and in the Sport and Sport Plus mode of the standard Sport Chrono Package Turbo -
and during kick-down in normal mode - the eight cylinder engine delivers 800 Nm courtesy
of the over-boost function.
The uprated engine delivers record sprint times for the new top of the range Panamera. When
using the launch control function, 0-62 mph is reached in 3.8 seconds, with a top speed of
191 mph possible. Combined cycle fuel economy is 24.6 mpg.
The increased performance compared with the Panamera Turbo can be attributed to two main
enhancements. Improved turbochargers with titanium-aluminium turbine wheels and
modified engine control management.
Kia Soul to go topless in the UK
KIA is to launch a convertible version of its Soul crossover in the UK in 2014.
The Soul convertible is part of Kia’s big plan to project a younger, more sporty image, Lee
Soon Nam, director of the company’s overseas marketing group, told Headlineauto.
Also on the cards is a sporty version of the European-built C’eed to rival the Volkswagen
Golf GTI. Lee revealed that Kia was developing a turbo-charged 2.0 litre engine for the car
along tuned suspension. The engine is likely to be seen in the next-generation C’eed due next
year.
Hydrogen black cabs on the road in time for 2012 Olympics
THE first fuel cell black cabs have been awarded road legal status by the Vehicle
Certification Authority (VCA) and a fleet will be on London’s roads in time for the 2012
Olympics.
The zero emissions taxis have been developed by a consortium, led by Intelligent Energy,
that includes Lotus Engineering, London Taxis International, TRW Conekt with funding
from the UK Technology Strategy Board.
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The taxis covered a combined total of more than 8,000 miles in test track and road conditions.
London Mayor Boris Johnson wants to make Britain a leader in fuel cell technology and has
already announced plans to increase the number of hydrogen refuelling stations around the
capital.
He said: ‘This marks an important milestone in my goal to create a cleaner cab fleet, firstly
through introduction of the first ever age limits moving towards zero-emission vehicles as
they come to market. Affordable and low polluting cabs are within our grasp and I urge
manufacturers to accelerate efforts to produce them.’
The fuel cell and battery powered hybrid taxi have a 250-mile driving range with rapid
refuelling.
Energy and Climate Change Secretary Chris Huhne said: ‘Green vehicles are taking to the
streets in a big way. High petrol prices and the desire to clean up our air quality make them
the smart choice. The zero emissions London taxi looks and performs just like a conventional
taxi, even over long distances. It’s a great British innovation and I look forward to seeing
them in service in London next year.”
Manufacturer news___________________________________________
Ford chief is FT Person of the Year
FORD president and CEO Alan Mulally has been recognised as Person of the Year in the
third annual FT ArcelorMittal Boldness in Business Awards.
The awards recognise companies and individuals who have challenged the status quo and
taken calculated risks to drive their business forward in the face of current economic
uncertainty.
Mulally was commended for the turnaround plan that has allowed Ford to emerge from the
financial crisis with sustained profitability.
It was also recognised that Ford did not rely on a Government bailout and that Ford today
was the most profitable car company in North America, having managed to change customer
perceptions and earn a higher margin per vehicle sold.
Light commercial vehicles______________________________________
Luton plant to build next generation Vauxhall van model
THE jobs of more than 1,100 workers in Luton have been saved with confirmation from
General Motors (GM) that the next generation Vauxhall Vivaro will be built at the plant.
Vauxhall workers have been uncertain about their jobs because an agreement with Renault to
build its Trafic vans at the plant ends in 2013.
However, after years of discussion, GM has confirmed that Luton will build the new Vivaro
for both Vauxhall and sister brand Opel starting in 2013. But Renault will produce the new
Trafic at its plant in Sandouville as well as the next generation of the H2 (high roof) version
of Vauxhall/Opel Vivaro.
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The announcement followed the joint announcement between Vauxhall/Opel and Renault in
September 2010, when both companies agreed to continue their co-operation in the LCV
segment.
Co-operation stretches back to 1996 when the first generation of the Vauxhall/Opel Movano
and Renault Master programme was announced.
While the sister models are jointly developed and produced in Vauxhall/Opel and Renault-
Nissan plants, they are independently marketed and sold through the respective brand
distribution channels.
Company adds new Vauxhall Movanos to fleet
HERTFORDSHIRE-based grounds maintenance company, John O’Conner, has replaced 13
of its 240-strong commercial vehicle fleet with new Vauxhall Movano vans.
The fleet, which is used for a variety of maintenance works, now consists of 55% Vauxhall
vehicles, including over 100 Movanos.
Most of the new vehicles will be sent straight to the Isle of Wight, where John O’Conner has
recently won a nine-year contract with the council to deliver a range of horticultural services.
‘Since ordering our first Movanos, the aim has been to make our fleet 100% Vauxhall,’ said
Simon Redhead, fleet manager at John O’Conner.
Rygor’s recession busters land top Mercedes-Benz award
AN unwavering commitment to delivering the highest levels of customer service have earned
Mercedes-Benz truck and van dealer Rygor Commercials a coveted award from the
manufacturer.
Rygor, which represents the three-pointed star in Wiltshire, the Thames Valley and West
London, was crowned Mercedes-Benz UK Commercial Vehicle After Sales Dealer of the
Year at a ceremony in Berlin.
The manufacturer said that the company had made outstanding progress in developing
creative strategies to provide truck and van operators with industry-leading standards of
service. Its reward had been exceptionally high levels of customer satisfaction - as measured
by the manufacturer - and impressive growth in its after sales business.
Despite an economic downturn that has hit the commercial vehicle market badly, and from
which it is only now beginning to emerge, Rygor’s parts and service operations achieved a
10% increase in turnover during 2010, on top of the 7% they recorded in 2009.
It had, declared Liam Ilbury, Mercedes-Benz UK’s director of commercial vehicle customer
services, been a ‘remarkable’ performance. He added: ‘This award recognises Rygor’s
consistent delivery of high levels of customer satisfaction and its proactive and customer-
focused attitude towards finding creative solutions in the delivery of after sales service.’
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Residual value update_________________________________________
New Mercedes SLK’s ‘aggressive’ image boosts RVs
AGGRESSIVE styling and across-the-board improvements have given the new Mercedes-
Benz SLK a significant forecast residual value premium over the outgoing model, according
to CAP.
The third generation of the model - first introduced in 1996 - also sees the introduction of
some AMG branding to the range, adding more weight to its sporting credentials.
The SLK 200 AMG Sport Auto is forecast by CAP Monitor - the industry benchmark guide
to future residual values - to retain 49.5% of its list price after three years and 60,000 miles.
This represents a major premium over the outgoing SLK Roadster which is currently forecast
to retain 39% of cost new.
CAP Monitor editor Jeff Knight said: ‘Historically the SLK has suffered something of an
image problem, sometimes unkindly described as a car for the more well-heeled hairdresser.
The new more aggressive design removes that image problem and ensures it will appeal to a
broader spectrum of buyer.
‘This new SLK is vastly improved in all areas. The design cues of the interior, borrowed from
the high performance SLS, add significant appeal in particular. Every other aspect of the car
has been enhanced too and all of this is reflected in a very strong forecast residual value.’
Citroën stars at Manheim auction
MANHEIM Auctions’ first big Citroën sale at its new multi-million super-centre at
Bruntingthorpe proved to be a runaway success.
Entering 325 vehicles, Citroën achieved a 100% sell out at an average value of 116% of CAP
‘clean’.
There were strong performances across the entire Citroën range, with examples of the Xsara
Picasso and C4 achieving values in excess of 140% of CAP ‘clean’, whilst C3, C8, C2 and
C4 entries achieved values in excess of 130% of CAP ‘clean’.
The eight models of the new DS3 offered achieved an average value of 112% of CAP ‘clean’
with a high of 116% of CAP ‘clean’. The ‘star of the sale’ was a 2008 Citroën Berlingo LI
625LX 1.6 HDI with 30,746 miles, which achieved a phenomenal 171% of CAP ‘clean’.
Politics and regulation_________________________________________
Conventionally-fuelled cars to be ‘banned’ in cities by 2050
THE European Commission has outlined a new plan that will mean no conventionally-fuelled
cars in cities by 2050.
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The Commission’s plan focuses on a ‘big shift to cleaner cars and cleaner fuels’ that will see
a 50% shift away from conventionally-fuelled cars by 2030, phasing them out in cities by
2050.
The goal is part of the Commission’s comprehensive Transport 2050 strategy to reduce
carbon emissions by 60% while also increasing mobility. At the same time, the proposals will
reduce Europe’s dependence on imported oil.
The 2050 goals also include:
A 40% use of sustainable low carbon fuels in aviation; at least a 40% cut in
shipping emissions.
A 50% shift of medium distance intercity passenger and freight journeys from
road to rail and waterborne transport.
However, the UK has rejected the proposals which call for a ban on petrol and diesel cars
from city centres by 2050.
Transport Minister Norman Baker told the BBC that said it should not be ‘involved’ in
individual cities’ transport choices. He added: ‘We will not be banning cars from city centres
anymore than we will be having rectangular bananas.’
Commission vice-president Siim Kallas, who is responsible for transport, said: ‘Transport
2050 is a roadmap for a competitive transport sector that increases mobility and cuts
emissions. We can and we must do both.
‘The widely held belief that you need to cut mobility to fight climate change is simply not
true. Competitive transport systems are vital for Europe’s ability to compete in the world, for
economic growth, job creation and for peoples’ everyday quality of life. Curbing mobility is
not an option; neither is business as usual. We can break the transport system’s dependence
on oil without sacrificing its efficiency and compromising mobility. It can be win–win.’
The Transport 2050 roadmap puts forward 40 initiatives for the next decade and includes the
suggestion that by 2050, the majority of medium-distance passenger transport, about 300km
and beyond, should go by rail.
It also includes a move towards full application of ‘user pays’ and ‘polluter pays’ principles
and private sector engagement to eliminate distortions, generate revenues and ensure
financing for future transport investments.
Britain’s best-selling vehicle manufacturer Ford was critical of the Commission’s white paper
saying that it was ‘well intentioned’ but would not achieve its goals of improving
transportation policy.
Stephen Odell, chairman and CEO, Ford of Europe, said: ‘I believe the Commission should
address the environmental and congestion issues associated with vehicles in urban areas to
ensure consumer choice, and drive jobs and economic growth in Europe.’
Ford believes the proposals, including the ban on petrol and diesel-engined vehicles in city
centres by 2050, would not effectively address the issues of congestion and environmental
improvement in urban areas. The company said that instead of limiting choice of what
vehicles could and could not be purchased, a more robust approach would better improve
road transport infrastructure.
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On electric vehicles Odell said: ‘While expanding the number of electric vehicles could help
with our shared goal of reducing greenhouse gas emissions depending on how the electricity
is generated, it will not help us tackle the issue of urban congestion. This situation will best
be resolved through a sensible debate on how to improve the road network and other aspects
of the road infrastructure in urban areas as part of a holistic discussion on transport policy.’
Safety organisations renew call for lighter evenings to save lives
ROAD safety organisations Brake and the Royal Society for the Prevention of Accidents
have renewed calls for the introduction of so-called ‘Single/Double Summertime’ (SDST),
which supporters claim could significantly reduced road deaths and injuries.
The call came with Sunday (March 27) being the official start of British Summer Time as the
clocks moved forward by one hour giving longer, brighter evenings.
Lighter evenings, say the groups, mean fewer deaths and injuries on the roads as more
daylight time falls during hours when people are awake meaning people - workers and school
children - have more time to get home in the evenings before darkness closes in.
For decades, RoSPA has been at the forefront of a crusade to give the UK an extra hour of
evening daylight - citing research that shows brighter nights would save 80 lives and prevent
more than 200 serious injuries on our roads each year.
In addition to the avoidance of grief and suffering, another positive consequence of fewer
road accidents would be considerable annual savings to taxpayers.
The initiative has generated powerful momentum in recent months, winning the backing of
tens of thousands of people and organisations through 10:10’s Lighter Later coalition - of
which RoSPA is a member.
The campaign is closer to succeeding now than at any time since 1970, thanks to Rebecca
Harris MP’s Private Members’ Bill - which passed its second reading in Parliament in
December with a huge majority.
To help the Bill clear the next hurdle - and to coincide with the start of British Summer Time
at the weekend - RoSPA has called on the public to help convince Westminster of its
popularity. They can do this by clicking the ‘Support Our Campaign’ button at
www.rospa.com/about/currentcampaigns/lighter-evenings/. Visitors to the webpage are also
encouraged to lend their support to the Lighter Later movement by clicking on the logo that’s
displayed near the top.
If successful, the Bill will lead to the Government carrying out a cross-departmental analysis
of the benefits of Single/Double Summer Time (GMT+1 in winter / GMT+2 in summer) -
which in turn could trigger a three-year trial.
Tom Mullarkey, RoSPA’s chief executive, said: ‘It’s time for those who’ve seen the light to
stand up and be counted for this life-saving proposal.
‘If the evidence proves to be as irresistible as it is irrefutable, why should we continue to
allow scores of people to die and scores more to be seriously hurt on our roads each year? We
estimate that about 5,000 deaths and 30,000 serious injuries have been caused needlessly in
the UK since the [previous] experiment was concluded in 1971.’
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Brake is also backing the Lighter Later campaign, which has been calling for the Government
to change the clocks for good to GMT +1 hour in the winter and GMT +2 hours in the
summer.
It’s estimated that the measure would prevent around 80 road deaths and more than 200
serious injuries every year.
The Bill is now in the committee stage, before it will proceed to its third reading.
Julie Townsend, Brake’s campaigns director, said: ‘Brake has been campaigning for the
clocks to be changed for good for many years. It is such a simple and effective way to reduce
deaths and injuries on our roads, and carries so many other benefits, like increased daylight
leisure time, and reduced carbon emissions. We need to push this issue to the top of the
political agenda and keep it there until it happens.’
However, earlier this month (Digest, March 10), proposals to move the clocks forward one
hour to so-called ‘Single/Double Summertime’ were omitted from the Government’s
‘Tourism Policy’ consultation document.
The move was opposed by Scots who claimed it would ‘plunge constituents into darkness’
and in fact increase road accidents and put schoolchildren at risk as it would be dark until
perhaps 10am.
A spokeswoman for the Department for Culture, Media and Sport, said at the time that the
Government had always been clear that it would not make changes unless all parts of the UK
were in favour.’
Diesel drivers could pay more for car parking
OWNERS of diesel cars face higher charges for annual parking permits in major cities amid
growing concern over their impact on air quality, it has been claimed.
Councils have begun to raise the cost for the vehicles, which were previously considered
more environmentally friendly because of lower carbon emissions, according to the Daily
Telegraph (March 26).
A motorist with a typical family diesel car faces paying more than £150 a year to park outside
their home.
However, according to a paper prepared for the Department for Environment, Food and Rural
Affairs, they emit too many small polluting particles, which damage local air quality, a
particular problem in residential areas with heavy traffic.
The report said that the Government should encourage ‘small, modern petrol vehicles, petrol
hybrids and electric vehicles in urban areas in place of diesel vehicles’.
The Conservative-controlled London borough of Kensington and Chelsea is to impose a £15
surcharge on parking permits for diesel cars from next month and councils in other area are
likely to follow. It is believed that the borough is the first to adopt a differential tax for diesel
cars.
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Dealer news__________________________________________________
Luxury car retailer returns to profitability
LUXURY car dealer H.R. Owen has returned to profitability following the economic
difficulties of two years ago.
The company has reported sales up 26% to £158 million (2009: £125.4m) for the year to
December 31, 2010 with profit before tax and exceptional items (£300,000) of £1.5m (2009:
loss of £1.3m). Pre-tax profit was £1.8m compared with a loss of £6.2 million in 2009.
Chief executive Andy Duncan said: ‘2010 saw a big improvement and return to profitability
following the difficulties of 2009. We outperformed the market with healthy growth in both
new and used sales.
‘Although economic conditions in 2011 are likely to remain challenging, we now have a
strong platform on which to build consistent profitable growth for the future.’
Chairman Jon Walden added: ‘The UK market recorded growth in the number of new car
registrations, but we exceeded this trend with double-digit growth in new car volumes. The
national used car market was broadly unchanged from the previous year but, again, we
outperformed this with an 8% increase in used cars sold.
‘Meanwhile, economic conditions in the UK are expected to remain challenging and we are
cautious about the short term trading outlook. However we remain well placed to maintain
growth in our existing businesses and we have the resources to develop new opportunities as
they arise.’
General motor industry news___________________________________
RAC put up for sale by Aviva
INSURANCE giant Aviva is reported to have put the RAC up for sale as it continues to
divest itself of non-core businesses.
While there has been no official word from Aviva, the company is said to have given JP
Morgan the task of selling the roadside assistance group.
Aviva bought the business for £1.1 billion in 2005. At the time the acquisition also included
the Lex Vehicle Leasing, BSM and Auto Windscreens, all of which it subsequently sold.
Sources close to the insurer now value the RAC at £600-£700 million.
Private equity groups are expected to be most interested in the RAC. Britain’s biggest
roadside rescue company, the AA is also owned by private equity firms.
The RAC is Britain’s second largest roadside rescue organisation with around seven million
members.
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People on the move____________________________________________
International role for Alphabet’s Sinclair
MARK Sinclair, who has led multi-marque car leasing and management company Alphabet
in the UK since 2007, will take up a new role with Alphabet International next month.
Based in Munich, he will be responsible for co-ordinating Alphabet’s international business
development plans, which include restructuring the business and its products along with
delivering innovative mobility management solutions, across the 13 countries in which
Alphabet operates.
Sinclair (39) joined Alphabet (GB) in 2000 and was instrumental in positioning the business
to weather the 2008 global downturn. The last two years, 2009 and 2010, were the company’s
most profitable years to date, while last year saw unprecedented growth in new business with
20,000 orders taken.
An announcement on Sinclair’s successor is expected tomorrow (Friday, April 1).
LeasePlan UK appoints Walker to new sales and marketing role
LEASEPLAN UK has appointed Stuart Walker to the newly created position of ancillary
sales and strategic marketing director.
Formerly brand director of Automotive Leasing, LeasePlan’s specialist public sector fleet
services provider, Walker now takes lead responsibility for sales of ancillary products and
marketing all services across LeasePlan’s four brands in the UK.
The company says that the new position has been created to reflect the evolving needs of
customers, who are increasingly seeking a wider range of bundled services.
Walker has been with LeasePlan since 2002. He has already started the job and reports to
Matt Dyer, commercial director.
Dyer said: ‘One of the big trends we are seeing is for more customers seeking to bundle an
ever more complex range of services and it is vital that LeasePlan’s marketing strategy
recognises that.’
Nissan appoints new fleet sales director
NISSAN Motor (GB) has promoted Barry Beeston to the position of fleet sales director,
replacing Andy Woodall who recently left the company.
Beeston joined Nissan in 1991 as technical support controller and held several roles within
the company before becoming national fleet operations manager in 2007.
Beeston starts with immediate effect and will report into James Douglas, corporate sales
director.
Howick promoted to rental management director at Leasedrive
JOE Howick has been promoted from sales director to the newly-created position of rental
management director at the rental management division of the Leasedrive Velo Group.
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Howick has been with the company for 15 years and in his new role will be responsible for
operations in addition to sales within the rental management division. He has been sales
director since 2003, having joined Countrywide, then part of Leasedrive, as sales manager in
1996 from Convinflow, where he was sales director.
Mercedes-Benz UK gets a new boss
NEW president and CEO of Mercedes-Benz UK is Marcus Breitschwerdt, who takes over
from Wilfried Steffen, who is moving to a new role as head of Daimler’s business innovation
division in Stuttgart.
Breitschwerdt (49) is currently president and CEO of Mercedes-Benz Canada. He joined the
manufacturer in 1991 and has held various senior roles in marketing, planning and sales,
including director marketing strategy for Mercedes-Benz Cars. He took up his current
position in Mercedes-Benz Canada in 2003.
Steffen (55) has been president and CEO at Mercedes-Benz UK since 2003.
Webb looks to build Mondial business in Nordic and Baltic countries
MONDIAL Assistance has given direct responsibility for its Nordic and Baltic activities to
Mike Webb, region director for Northern Europe, Middle East and Africa.
Webb has spearheaded growth of the Mondial Assistance UK business for the last 20 years
and in 2010 took on the Northern European role.
The latest addition to his remit reflected, said the company, his successful track record in the
UK, servicing some of the world’s largest brands, whilst remaining financially strong in a
tough market. It also signals the company’s commitment to growth in other European
markets.
Mondial Assistance has been operating in Finland, Sweden, Norway, Denmark and the Baltic
Republics for a number of years, focusing primarily on roadside assistance, travel insurance
and ticket cancellation insurance services.
Webb will be working closely with Isabelle Solli, Nordic and Baltic country manager and the
teams in each country, helping to develop their strategic plans to achieve ambitious growth
targets for 2011 and beyond.
Foulston steps down as RMI chief
ROB Foulston has stepped down from his role as chief executive of the Retail Motor Industry
Federation after two years in the driving seat.
Currently a new strategy/structure is being developed. In the interim, responsibilities are
being taken on by Kevin Waterman, Sue Robinson and Stuart James.
Foulston said he had achieved the objective he was given of putting the RMI back into profit
and added: ‘I am now stepping down as chief executive to pursue my other business interests,
particularly Remit [the RMI’s training division where he is chief executive and which he co-
owns with the Federation].
‘The RMI 2010 results are excellent; sales are up, membership is up, costs are down and
strong foundations have been laid for the future. If these foundations continue to be built
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upon, together with the new initiatives that have been put in place, the Federation will
continue to thrive.’
Jonsson retires as Saab president and CEO
JAN Åke Jonsson has decided to retire from his position as president and CEO of Saab
Automobile AB on May 19.
A search for a successor to Jonsson has been initiated and he has agreed to assist Saab
Automobile’s management with a smooth transition. He will remain available as such until
September 1.
Until a successor is appointed, Victor Muller will temporarily assume the role of president
and CEO of Saab Automobile AB in addition to his role as chairman of the board.
Jonsson has been with Saab Automobile for almost his entire career of 40 years and has been
head of Saab Automobile for almost six years.
SMMT appoints commercial vehicle development manager
THE Society of Motor Manufacturers and Traders has appointed Nigel Base to the position of
commercial vehicle development manager.
He joins the SMMT from his most recent role as aftermarket director at a premium truck
manufacturer and will be responsible for strengthening the standing of the UK commercial
vehicle sector. The role will continue to build positive relationships between UK-based
commercial vehicle manufacturers and industry bodies.
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