Without question, the CO₂ car emissions tax based system introduced back in 2002 has played a vital role in driving down vehicle emissions. In linking concerns over climate change to tax and ultimately cost to the employer and employee, it has meant that vehicle manufacturers, fleets and drivers alike have each placed increasing importance of CO₂ emissions on their respective agendas.

Recent figures from the Society of Motor Manufacturers and Traders have revealed that new cars are now 18% more fuel-efficient than the average car on the road, while CO₂ emissions for the average new car fell by 4.2% in 2011. It is clear that the automotive industry is responding accordingly to provide choice without compromising performance of models which are attractive from a CO₂ emissions standpoint. But there is more that can be done.

Ten years on, this, together with a series of taxation and legislative changes continue to be the driving force behind the shaping of fleet policy and vehicle choice. Added to this, the dramatic rise in fuel prices against a weakened economic backdrop has created the demand to look at other measures fleets and their drivers can take to become more efficient and therefore saving money and reducing CO₂ emissions.

Our latest in a series of fleet guide papers looks at practical ways in which fleets can reduce CO₂ emissions and presents 16 ideas to help reduce carbon footprint.

Click here to download.

One of the ideas featured in the guide is looking at ways to help drivers to drive better. Our Top 10 Tips to Saving Fuel provides practical driving tips to save fuel and in turn, save CO₂.

Click here to download top 10 Tips to Saving Fuel.

The very best of fleet talent was celebrated recently at the Fleet News annual awards evening where GE customer, Lafarge (UK) Services won the award for Fleet of the Year in the 501-1000 vehicle category.

In addition, GE Capital’s own fleet was recognised and ‘Highly Commended’ in the Fleet of the Year for the Sub 250 vehicle category.

Finally, ACFO Chairman and also a member of GE Capital’s Key Solutions Fleet Consultancy team, Julie Jenner was inducted into the Fleet News Hall of fame for her work in revolutionising the image of ACFO (Association of Car Fleet Operators).

Rebecca Chivers, UK Car Fleet Advisor, Lafarge (UK) Services

Long-term partnerships with key suppliers is a core philosophy helping the Lafarge fleet to deliver significant savings; these savings included:-

The judges recognised Lafarge as a well-deserved winner as a result of “a range of initiatives, including progressive CO² caps and a one-stop-shop driver web portal, combined with reductions in accidents and mileage”.

In response to winning the award, Mark Giannasi, Strategic Sourcing Manager Lafarge (UK) Services said “ I think the main reason was our approach to driver safety. Safety is absolutely Lafarge’s number one priority. We extended our attention to employees driving company vehicles by undertaking a comprehensive driver risk assessment and training program with GE’s Safe Solutions programme. This program has resulted in a fall in the number of accidents by over a third and also a reduction in the cost of accidents by almost 50%.”

“An innovative solution to funding this project was developed with GE which amortised the training cost across the monthly lease rates, therefore avoiding the need for a significant Capex budget during the recession and difficult business conditions.”

“We are also keen to keep a good balance between the cost of the fleet and the benefit drivers attribute to their company cars. Effective management of manufacturer relationships combined with an annual driver satisfaction survey have delivered this.”

It’s great for our work to be recognised. It’s huge encouragement to continue developing and improving our fleet policy as well demonstrating our achievements to our customers and competitors”.

Damion Bennett, Company Car Compliance Advisor

GE Capital was recognised for promoting safer, fuel-efficient driving and taking a proactive approach to managing and improving the way both company car drivers and wider employee base drive.

Julie Jenner, ACFO Chairman and Key Solutions Consultant, GE Capital

ACFO Chairman and also a member of GE Capital’s Key Solutions Fleet Consultancy team, Julie Jenner was inducted into the Fleet News Hall of fame for her work in revolutionising the image of ACFO (Association of Car Fleet Operators). For almost six years, Julie has represented the views on fleets as Chairman of ACFO. Described by the awarding panel” Under her stewardship, ACFO has moved with the times, relentlessly striving to get Fleet Managers’ views heard at the highest level”.

With the condition and cleanliness of Kwik Fit’s service centres regularly featuring in the top 3 areas of feedback in GE Capital’s Driver Surveys, we have welcomed the news that Kwik Fit has announced a programme of extensive refurbishment for many of their centres around the UK.

Having recently undergone a change of ownership to Japanese company Itochu, Kwik Fit are making significant investments to improve their customer experience. At the heart of this is a radical refurbishment plan for its 650 UK centres. Many of these centres are outdated and do not provide the welcoming environment that both Fleet and retail customers alike should expect.

Refurbishment has been completed on pilot centres in Newbury, Strood, Stafford and Titwood Road, London with a further 59 planned in 2012 and approximately 100 per year thereafter. Each centre has been designed with the customer in mind, and will provide a fresh, clean and bright environment, with old fashioned counters being replaced with comfortable leather seating, quality refreshments and flat screen TVs. New external signage and workshop equipment are also planned.

Kwik Fit’s commitment to customer satisfaction goes beyond the centre refurbishment programme. They are focused on ensuring all centre staff are fully trained and dedicated to providing a high quality service through providing a warm welcome; being helpful, open and honest and keeping customers informed through regular communication about work being carried out.

If you or your drivers visit one of the newly refurbished Kwik Fit centres, we’d love to hear what you think so please share any feedback with your Account Manager.

Before

After

Stafford New Reception

Without question, the CV Show is the largest and most comprehensive road transport event staged in Britain, catering for every operator’s requirements. The annual event took place last month at the NEC in Birmingham and attracted hundreds of visitors from the Fleet industry. GE Capital’s dedicated team of LCV industry experts were pleased to welcome many of our customers, future customers and suppliers to our stand where the subjects of cost, safety and efficiency where highlighted as key challenges fuelling the LCV fleet agenda in 2012. It also proved a great opportunity to showcase GE’s Electric Vehicle Demonstrator programme.

Free Electric Vehicle Trial
Can zero emission technology play a part in your fleet operation? Launched last year, GE’s innovative Electric Vehicle Demonstrator programme is already providing our customers with real world experience and data of operating electric vans over the long term. The vans have been fitted with sophisticated telematics equipment along with axle weight sensors to ensure that full operating data can be captured and analysed, allowing you to assess the performance and suitability of electric vehicles for your fleet operation.

For further information contact vanlease@ge.com

2012 Budget raises key challenges for fleet managers with 130g/km set to be new emissions “gold standard” for company cars.

Yesterday’s Budget, delivered by Chancellor of the Exchequer George Osborne, made a number of key announcements which will have an impact on the fleet industry. Read on to hear the initial reaction to the impact of the Budget on the fleet industry from our dedicated Key Solutions fleet consultancy team and click here to download our in-depth Budget Briefing.

Capital Allowance
Key among these is the reduction in capital allowance thresholds from its current 160g/km to 130g/km effective from 1st April 2013. The move, the company says, effectively makes 130g/km the new “gold standard” for company car emissions.

This move is quite significant. It will mean that cars of above 130g/km will have reduced tax relief for employers who operate company car fleets – typically £8-£12 per month on an average leased fleet car or an annual £500 reduction for an outright purchased vehicle. Clearly, these represent substantial cost increases and will, in many cases, effectively price models with more than 130g/km out of the market, especially for mainstream fleet use. It will also especially hit outright purchase fleets, adding to the relative attractiveness of leasing in many cases.

Our estimate is that about one-third of fleet cars currently on sale fall into the sub-130g/km category, and we expect this to increase dramatically in the coming year as manufacturers work to maintain the financial attractiveness of their models. In parallel, we also expect to see many fleets redraw their choice lists to take account of this change. However, it is something that we believe is achievable. There is now a very wide selection of sub-130g/km models available. It is a cost that can be contained with proactive management.

In addition, first year 100% writing down allowance reduction for low emissions vehicles will fall from 110g/km to 95g/km from 1st April 2013 and expires on 31st March 2015, and will disappear altogether for leased business vehicles.

Fuel Duty
The second development of consequence is the reinstatement of the fuel escalator, which will signify a three pence increase in fuel duty from 1st August 2012. This is a largely unavoidable cost but one which should be treated as a managerial priority.

While the fuel duty increase is disappointing, managers should treat this very much as a cost that can be minimised if a committed approach to fuel cost management is adopted.

Benefit in Kind
The third key fleet challenge is the restructuring of driver benefit in kind bandings for sub 95g/km cars, in particular for zero emission vehicles effective from 2015. This will typically see a zero emission vehicle cost £500 in employer National Insurance and £1500 annually in BIK for a 40% tax payer.

This move is a genuine surprise given the Government’s stated commitment to support the introduction of low emissions vehicles to the market. The first wave of electric cars is only just starting to make their way slowly onto fleets and this move can only serve to slow their adoption.

It is difficult to see the arguments for this move. Given the small numbers of vehicles likely to be affected, the argument can hardly be a financial one – the Government’s tax take will be negligible.

Vehicle Excise Duty
The final area where we believe fleet managers should consider taking action following the 2012 Budget is the inflationary increase in vehicle excise duty.

Clearly, this is a cost that cannot be avoided on your existing fleet. However, if 130g/km is set to become the new fleet emissions ‘gold standard’, then there are quite substantial savings to be made through gradually moving your entire fleet towards a lower vehicle excise duty bracket. Again, this is a cost that can be proactively managed.

Click here to download GE’s comprehensive 2012 Budget Briefing produced by our dedicated Key Solutions Fleet Consultancy Team.