BVRLA News
www.bvrla.co.uk May/June 2013
The newsletter of the British Vehicle Rental and Leasing Association
The truth is out there! by Gerry Keaney One of our industry’s greatest attributes is its expertise, gained from years of experience running millions of vehicles. But accurate information is also essential, especially when it comes to establishing a vehicle’s total cost of ownership or its day-to-day running costs. This is why the BVRLA recently joined a number of other leading motoring organisations – including the AA and the RAC Foundation – in signing a letter to Transport Minister Norman Baker, expressing our support for the introduction of a new testing procedure for establishing official car CO2 emission figures. Having been designed and put in place 30 years ago, the current system is no longer fit for purpose. The unrealistic drive cycle and variations permitted in the test procedure mean that the difference between official fuel consumption figures and real-world operational figures are too large. Discrepancy A recent study from the International Council on Clean Transport (ICCT) showed that the average discrepancy between official and real-world figures rose from less than 10% in 2001 to 25% in 2011. The discrepancy could be even wider for typical company car fleets – data from LeasePlan in Germany reported an average gap of 33%. Some of the most popular fleet brands were responsible for the biggest discrepancies. This suggests that many fleets are using inaccurate data to calculate their running costs and carbon footprints and that some manufacturers have an unfair competitive advantage over their rivals.
From a wider policy perspective, the current situation threatens the whole drive towards lower road transport emissions. If people lose faith in the credibility of quoted mpg and CO2 figures, it will undermine government attempts to encourage the take up of more fuel-efficient cars. It could weaken the leasing industry’s claim to be leading the way in reducing emissions. The BVRLA supports the introduction of the new Worldwide Harmonized Light Vehicles Test Procedure (WLTP) by 2017. It more accurately matches driving in the real world and limits the variations that manufacturers are allowed to use in carrying out the tests. Improvement Adopting this WLTP would be a major improvement, but it would mean big changes for leasing quotation systems, whole-life cost calculations and fleet policies. European governments would have to take any major revision in car CO2 figures into account when reviewing their motoring tax strategies. You could end up with a scenario where the latest model of a popular fleet car has significantly higher emissions than its predecessor. How would this affect fleet and driver choices, tax rates and residual values? We don’t know. But the BVRLA would work with the UK and EU governments and manufacturers to try and reduce any negative impact on our industry and its customers. Fleet operators and drivers must have accurate information when choosing their vehicles, especially when it concerns fuel efficiency and emissions. Our industry has a proud tradition of leading the campaign for published van CO2 figures and calling for more real-world operational data on electric vehicles. We won’t abandon those principles now. n
In this issue Research reveals reality of UK car rental Car rental can help people own fewer cars and adopt more sustainable travel habits page 2 Driver CPC exemption looks a real possibility ‘Burdensome’ training might not be enforced on vehicle rental staff after all page 5 Leasing brokers: all part of the family This year marks the tenth anniversary of leasing broker membership of the BVRLA: see how we celebrated this landmark page 6 Great expectations! In May the BVRLA welcomed a new chairman, Peter Cakebread, and a new chief executive, Gerry Keaney. What are their priorities in their new roles? page 9 FCA: spotlight on consumer credit What will the Financial Conduct Authority’s forthcoming consumer credit regime mean for you? page 10
— Promoting responsible road transport since 1967 —