| At the end of July 2010, it was confirmed by the | | | | although there are no direct impacts there can be |
| Transport Secretary Philip Hammond that from | | | | indirect impacts. At a time like this when fleet |
| January 2011 motorists will receive up to £5,000 | | | | managers are being forced into re-evaluating due |
| towards the purchase of an ultra-low carbon car. | | | | to both the environmental and economic factors, |
| The initiative is open to both fleet and private | | | | the indirect effects should be taken into account. |
| buyers. Now that this has been confirmed how | | | | A report by Professor Peter Cooke which aims |
| could this influence your fleet management | | | | to define the future of fleet states that a |
| decisions and what type of impact, if any, will it | | | | company car will have to earn its keep |
| have on commercial fleet insurance? | | | | economically more in the future than it had to in |
| The Government have made this announcement | | | | the past. This leads us to the area of choice of |
| even before the completion of the spending | | | | company cars; who really needs them and the |
| review in order to support the early market for | | | | issue of downsizing both the overall size of |
| ultra-low carbon cars. With the changes in the | | | | company fleets as well as the class of vehicles |
| road tax system of Alistair Darling's Budget, the | | | | being used. |
| cost implications for the more polluting cars | | | | From an insurance perspective if these decisions |
| continue to get higher. | | | | are made strategically we should see significant |
| On top of this is the one-off first year | | | | reductions in insurance premiums. Vehicles will be |
| "showroom tax" which could see the buyers of | | | | chosen with both the environmental and economic |
| high emissions cars having to pay up to £950 in | | | | considerations in mind, while a global evaluation will |
| the first year, whereas those who buy a new car | | | | need to be done on the overall company fleet |
| which has less than 130g/km of CO2 emissions | | | | policy, encompassing the future economic benefits |
| will pay nothing. | | | | being weighed up against the cost implications. |
| The Department of Transport advise that making | | | | The Department of Transport recommends |
| your fleet green does not necessarily have to | | | | re-evaluating the management of logistics and |
| mean changing the class of vehicle. In fact there | | | | asks companies to look at the option of moving |
| is a useful tool on the Act on CO2 website where | | | | freight by rail or water as opposed to road. There |
| you can compare the various classes of vehicles, | | | | are Freight Facilities Grants available to help |
| type of fuel and see how they fare on the tax | | | | organisations make these changes. Additionally for |
| band and CO2 comparison. | | | | van and HGV drivers there is government funded |
| For example choosing the small family class and | | | | training which helps van drivers reduce fuel |
| selecting all fuels the top vehicles are the Seat | | | | consumption by 16% and a reduction in faults of |
| Leon, Ford Focus, the new Volkswagen Golf and | | | | 56%. |
| the Volvo C30. The fuel for all of these is diesel | | | | In conclusion, tough decisions need to be made to |
| and there is no tax to pay on these in the first | | | | change with the current times. However if these |
| year. All of these cars fall into the 99 CO2 (g/km) | | | | decisions are well mapped out strategically |
| category. | | | | businesses can develop plans which can benefit |
| If it is a regular family car that is the size of | | | | from the green initiatives, get rid of dead wood |
| some of your fleet cars then it is the Volkswagen | | | | type fleet usage and benefit economically from |
| Passat Saloon 1.6 TDI 102PS BlueMotion which is | | | | using other transport alternatives where applicable. |
| diesel that is the best option with no tax on the | | | | Commercial fleet insurance can be lowered by |
| first year and it is classified as 114 CO2 (g/km). It | | | | choice of vehicles and drivers, as well as being far |
| is a useful search facility which can be used for | | | | stricter about what really needs to be part of the |
| research when making plans. | | | | company fleet. |
| On the commercial fleet insurance evaluation | | | | |