Monday 17 December 2012

LCV Division - FleetForum Issue 3 December 2012


  Welcome to our third and Festive edition of our FleetForum enewsletter. As 2012 comes to a close, we look back on a year in which has been a mixture of the good, the bad and the ugly for our industry, yet there are early indications of those “green shoots” beginning to just show which is something that we must surely all applaud and get invigorated  by.  2012 has been good year for HGV registrations as we have seen resurgence in purchasing patterns and orders being placed, a good year for the first slowdown in fuel prices meaning annual vehicle operating cost changes track below inflation for the first time in 3 years.
 
Whilst HGV registration appear to be on the increase, (2013 looks like it could be a bumper year as people bring forward 2014 purchases ahead of Euro 6 coming in), the LCV marketplace has had signs of stagnation in 2012 yet hopefully this will reverse in 2013 as people’s confidence grows. Ever creeping legislation is having a greater effect on us as firstly we have the new Whole Vehicle Type Approval to worry about (See FleetForum 1 for details about it) and with only weeks to go until this comes into force, our industry is still seeking clarification over specific areas of it around masses and dimensions for example. Looking ahead 3 to 5 years, it is becoming increasingly likely that, following more Government discussions on the topic, we should prepare ourselves for LCV’s to be taxed like cars, via their specific CO2 emissions outputs. Although timed to probably coincide with the introduction of mandatory Euro 6 engine legislation in 2016, this is likely to have both a significant impact in the types of vehicles that manufacturers bring to the UK market as well as the types of vehicles that operators look to purchase, depending of course if it is able to be integrated within their normal application.

Electric vehicles, although now backed by major manufacturers like Renault are still finding it difficult to win the “hearts and minds” of the masses. If the likes of TfL get their way, Operators may have little option than going down this route as the latest proposal to be issued is concerning the changes which form part of the new Ultra Low Emission Discount (ULED), which would replace the current Greener Vehicle Discount (GVD). The changes would take effect in July 2013 and provide a single 100 per cent discount from the Congestion Charge for electric and ultra-low emission cars and vans that emit 75g/km or less of CO2 and meet the Euro 5 emission standard for air quality, versus the current level of 100g/km. With the lowest emitting commercial vehicle outside of electric being at around 87g/km, the new limit of 75g/km will be forcing operators to move into other forms of motive power if they wish to avoid the congestion charging in totality or face the continued increase in operating costs.

So, 2013 appears it will be a year of interesting challenges and opportunities regardless of which part of the industry you currently operate in, yet it is evident that doing nothing and placing our “heads in the sand” is not an option at all and that change will come for us to all deal with. We are working tirelessly with colleagues from within our industry in trying to better understand all of the implications of the changes that we will face however rest assured that we will continue to communicate and share with you, the changes and solutions required in helping you run a more effective fleet.

As part of this communication, we will be running our first Commercial Vehicle Industry Workshops in the first quarter of 2013 (North and South), to which we sincerely hope you may join us and participate in. The exact agenda is yet to be finalised, however informative, supportive and of much value it certainly will be, so if you are interested, please let Mandy know on mandyriley@prohire.plc.uk and we will ensure that you are included in further communications surrounding it.

Finally, we wish you and your families a very happy and festive Christmas with the hope of a prosperous and successful New Year in whatever you do.

Grahame Neagus

 1 – New legislation - Annex III to Directive 91/439/EEC and 2006/126/EC

 For this month, there is a focus on the latest piece of legislation that is coming into force in January 2013 in relation to a drivers’ vision plus any individual who may suffer from either epilepsy and / or diabetes as a medical condition. With the numbers of people from within the UK now suffering from diabetes as a result of other conditions such as obesity for example, this is a potentially high risk condition for anyone driving especially if as part of your usual Duty of Care policies you are not capturing this information and acting upon it for the benefit and support of the individual concerned. Below is a brief overview of how the law is changing with regards to this however if you require further more detailed information, please contact the DVLA office accordingly.

The frequency of medical examinations: Annex III of Directive 91/439/EEC places drivers into two groups. With regard to medical examinations, different arrangements apply to each of them.

The Directive recognises two groups of drivers:-

Group 1 relates to vehicle categories A and B, including 2 or 3–wheeled vehicles, cars and light vans up to 3.5 tonnes covering the drivers of vehicles in categories A, B and B+E and in sub-categories A 1 and B 1. Candidates have to        undergo a medical examination if it appears, at the time of completion of the necessary formalities or during the tests that they are required to undergo before obtaining a license, that they are suffering from one or more of the incapacities mentioned in the annex.

Group 2 relates to vehicle categories C, and D (and their sub categories of C1 and D1) including the drivers of vehicles in categories C, C+E, D, D+E and in sub-categories C 1, C 1+E, D 1 and D 1+E. Note that these include medium and large lorries and buses. The medical licensing standards for lorry and bus drivers are more stringent than for Group 1 drivers. The processes and higher medical standards aim to balance the additional risks to road safety         presented by the size and weight of the vehicles being driven and the greater time the driver may spend at the wheel in the course of their occupation. Candidates have to undergo a medical examination before the first issue of a license and, thereafter, drivers have to undergo the periodic examinations which will be prescribed by national legislation.

National legislation may provide for the provisions for Group 2 to apply to drivers of Category B vehicles using their driving license for professional purposes (taxis, ambulances, etc.),
In accordance with the legislation, other fields are not harmonised by the European Community legislation and fall within the residual competence of the states, i.e. the UK.

In summary, the new rules coming into force in January 2013 around the above topics are bringing the UK in line with the rest of Europe and so it is important to make sure that any Fleet Manager in charge of vehicles, regardless of if their drivers are of Group 1 or 2 vehicles, are aware of these. It is advisable to work with your HR department in ensuring that firstly you know which drivers are at risk or have one / more of the above, and that your policies have embraced the changes with the correct medical records updated and the correct checks are undertaken to maintain everyone’s well- being.
2 – The latest addition to the Car Derived Van market is a marketing dream

They say things have a habit of going full circle and this months’ new vehicle review is certainly living up to this reputation for after a huge gap over recent years and under the stewardship of its German parents, there is a new face on the “car derived van block” namely that of the Mini Clubvan.
Those of us old enough to remember will have visions of such a vehicle, albeit in the old Mini guise, being driven around towns in the 1970’s, delivering small loads across a wide range of industry sectors. Today, a much larger version than the original can be ordered for those wishing to make a marketing statement of intent in the high end market of this size of van.

Based closely on the Mini Clubman passenger model that was launched back in 2007, the Clubvan is aimed at top-end CV users for whom a van is not just about moving loads from A to B but is also a means by which they can articulate a vision about their business to their customer base.
One area that will immediately spring to mind, following those who have ever priced up a Mini car lately, will be the area concerning price. Mini and BMW have worked hard in ensuring that despite a higher list price that it doesn’t translate into the Clubvan being expensive to run. Mini’s passenger car efficiencies mean the 112hp 1.6-litre diesel has an official fuel consumption figure of 72.4mpg, while the two petrol versions, at 98hp and 122hp, both offer an official figure of more than 50mpg.
In addition to this, the residual values for the Clubvan should be excellent for a light commercial vehicle, due to a combination of Mini’s brand prestige and the expected low numbers that will mean the used market should be keen to get hold of any being sold and with the smaller SME and regional fleets more likely to purchase and look after them, this should help greatly in residuals.

The cabin is identical to the Mini passenger car, including the huge centrally mounted speedometer, and there will be a longer list of optional equipment than normally expected from a van, with many of the Mini car options offered, including items such as Xenon headlights, audio system upgrade and three different interior upholstery upgrades. It is fair to say that drivers who are likely to be seen at the wheel of such a new van will no doubt be the envy of many in terms of general levels of luxury and quality.
Looking more closely at what the van is designed to do in terms of moving cargo, the elements around practicality and load box functionality are not high on the selling points for this type of vehicle. Indeed looking at a load volume of just 0.9m3 it means that the typical Fiestavan or Corsavan has a similar load space and the associated 500kg payload is also only on par with the aforementioned vans. So maybe the load length is more akin to something of the old Astravan?

The load area is accessible via the twin rear doors with tinted glass or the small side door on the driver’s side. The flat load floor and side walls come trimmed with carpet, and feature six tie-down points and a 12-volt power socket as well as a half-height mesh bulkhead protecting the driver and his passengers from any shifting loads in the cargo area. Again you will be mildly disappointed as it isn’t so why would someone look at purchasing such a vehicle?
Well if it’s pure load carrying characteristics you are after then there are cheaper more cost effective solutions out there. If however you are looking to put a high quality van into your fleet that has excellent driving characteristic’s, that is highly noticeable from a marketing perspective and one that will have drivers clambering across your desk to get their hands on one, then this is the van for you. Looking at the durability of the Mini car, it is obvious that this is a van that is capable of a long and hard life whilst still retaining a first class image and with the now legendary BMW fuel consumption from the diesel engines fitted into this van, it is likely to be a very cost effective vehicle to operate.

Overall then the new Mini Clubvan is an attractive, stylish and fashionable small van that will offer businesses that trade at least partially on reputation to be seen in a vehicle that makes their operation more memorable. With the current CDV arena still populated by the same familiar faces, one could say it’s an interesting and exciting development to have been introduced and although it probably won’t sell in large volumes, there is a niche there for it and for the first time, you can have commercial vehicle from BMW! What next…………..a John Cooper version?
3 - Prohire News Update

There is never a quiet time within the Prohire world and this December is no exception! With building work nearly finished on site here in Stoke to house our ever growing team of downtime management staff and our 5 year strategic plan almost complete, we enter the festive season with continued vigour and enthusiasm as to what the next 12 months hold. With 12 people taken on in 2012 alone, when others within our industry are retracting, we continue to grow, ensuring that you our Customers are fully supported every step of the way. As briefly mentioned on page one of this FleetForum, we are going to host some events in Quarter 1 2013 for which we look forward to seeing you there.
In the meantime, should you require any further information on how the Prohire Team can help you improve your operational efficiency and overall cost effectiveness, please give us a call or drop us an email at the following:

t – 08432 909 089
e – enquiries@prohire.plc.uk

Thank you for reading FleetForum, and we look forward to speaking with you soon.

Grahame Neagus
LCV New Business Director