Van fleets are returning to established strategies designed to reduce emissions as many choose to slow their electrification process, the Association of Fleet Professionals is reporting.

An increasing number are working to further reduce CO2 in their existing diesel vehicles rather than adopt further electric vehicles (EVs), explained Paul Hollick, chair of the industry body.

“There has been a general assumption among van fleets in recent years that the arrival of EVs would mean a decisive move towards meeting corporate ESG targets in the medium-long term but, for many, it has become clear that electrification is just not going to happen at the expected speed, so they are returning to established strategies.

“There is a renewed interest in areas such as utilisation analysis, driver training and idling reduction, all of which can help to cut CO2, NOx and other emissions. Interestingly, this doesn’t appear to be just a case of returning to the ‘old school’, with new products designed to help fleet managers in this area continuing to make their way to market.”

Paul said that the trend was very much a result of van fleets slowing their adoption of EVs in the face of several difficulties.

“Many of our members who were committed to electric van adoption as soon as supply was available have slowed or even put a temporary halt on the rate of acquisition. They are hitting a range of operational issues – range, payload, charging infrastructure and more – that means replacing existing diesel vehicles directly with electric equivalents is not yet practical.

“This doesn’t mean that they are intending to resist electrification but that more work needs to be done in all kinds of areas including domestic and public charging, changes in operational practices and improvements in the vehicles themselves.”

An area of frustration for some AFP members, Paul added, was the lack of action being taken when it came to making hydrogen a practical alternative to electrification for vans.

“In other European countries, there is considerable public and private investment underway in creating a hydrogen transport infrastructure but in the UK, it barely exists. This means that the hydrogen vans that are entering production globally are unlikely to make their way here in anything other than very small numbers.

“Many fleet operators believe a mix of hydrogen and electric power would be ideal for the van fleets of the future, and it does feel as though this is a potential solution that is being effectively denied for no good reason. There may also be a role for synthetic fuels and this is something that needs further investigation.”

More accurate range labelling is needed on electric vans, according to the Association of Fleet Professionals, with real world experience of users often falling well short of WLTP figures.

Paul Hollick, chair at the industry body, said some of its members were finding that the degrees of variation seen in operation across different conditions meant that the official range was an inadequate guide to actual performance.

“We now have a number of fleets who have operated electric vans for a reasonable period of time and crucially, through the recent winter. The differences in range that are being reported on some models are, we believe, a cause for concern.

“The weather factor is especially proving to be much greater than originally thought with some of our members seeing a drop in range approaching 50% during the coldest winter days on occasions when there was no opportunity to precondition the battery. These are not the relatively minor variations in range that might be reasonably expected.

“However, other issues are emerging, too. Payload was already known to have a negative impact – although its extent has proven to be a surprise to some operators – but the effect of commonly-used fittings such as roof racks and ladder loaders are proving noticeable.

Paul said that the issue made these vehicles sometimes difficult to use in real world conditions, with fleets being unsure on some days in winter whether they could complete the routes on which they were normally used.

“We definitely have members who feel as though they have been misled over the potential range of some electric vans they have bought and have generally lost confidence in them. There is a feeling that the WLTP figures being produced are often almost useless as an indicator of actual range and something much closer to real world figures is required.

“The fact is that electric van range is a much more complex subject than cars. The weights that company cars carry vary but by not by too much in the vast majority of cases, so shifts in the distance that can be covered are much less dramatic. This is not the situation for vans and ideally, we’d be looking for different official tests for warm and cold weather conditions, with different payloads, towing and more.

“How the situation could be improved in the short term is unclear. WLTP is an agreement created under a United Nations initiative, so not easily changed. We are probably looking for the government or a widely recognised official body to hopefully step into the breach. It’s a question of providing data that allows fleet operators to make an informed choice.”

Paul said the AFP remained strong advocates of electric vans but there were a number of difficult issues that members were experiencing as they underwent the process of adoption.

“It’s clear that the electrification of the van parc is turning out to be much more demanding than has so far been the case for cars, with range, charging and payload very much proving stumbling blocks for many. However, our members are working through these problems by sharing information, advice and best practice.”

Electric vehicle (EV) charging is replacing maintenance as the most onerous day-to-day managerial task facing many fleet managers, says the Association of Fleet Professionals (AFP).

Chair Paul Hollick explained that in terms of working to maximise operational efficiency and minimise costs, feedback from members showed that charging was taking up huge amounts of time.

“In the last few years, maintenance has been the main everyday issue facing fleet managers. The fleet car and van parcs have been ageing at a fairly rapid pace while workshop capacity has been stretched and parts availability has been patchy.

“However, we now seem to be in a position where charging is taking over and there’s a wide variety of reasons for this. It’s not an exaggeration to say that charging is becoming the new maintenance in terms of the huge amount of attention it demands.”

The issues being encountered are wide ranging, he explained, and often there are no easy answers, with temporary solutions being employed.

“The biggest problems are seen by businesses operating EVs where drivers have no home or depot charging. This means they are relying on the public infrastructure which, in its current state, presents a whole series of difficulties that fleet managers and their drivers are working to resolve every day.

“The first of these is simply accessibility. That means finding chargers where they are needed, hopefully not having to queue and also ensuring that the bays are large enough to take electric vans. Ticking these three boxes on a day-to-day basis is proving demanding for many of our members at this point in time.

“Of course, there is also a desire to minimise the cost of charging which, especially on motorways, can be prohibitive, but that is the fourth factor on the list for most fleets. The important thing is to keep EVs moving.

“There is a strong argument that the difficulties being encountered are very much a product of this moment in time, where the charging infrastructure is not yet up to the demands being placed on it. However, that situation is likely to persist for several years to come and we don’t necessarily see life getting much easier for fleets and their drivers in the medium term.”

Paul added that where EV users had their own charging, life for fleet managers tended to be easier but even that brought its own issues.

“There are other problems. For example, reimbursement is proving an issue, especially with the Advisory Electric Rate remaining too low for the majority of EVs and the actual cost alternative being quite difficult to calculate. Technical solutions are emerging for the latter but obviously have not yet been approved by everyone.”

There are easy technical solutions arriving for actual cost reimbursement of home charging and that’s great but where rates being paid, especially with the Advisory Electric Rate remaining too low for the majority of EVs, businesses are having to find their own, fairer solutions.

“There is also the question of who should pay for installation of home chargers although, at the AFP conference, credible figures were quoted showing that the cost can be recouped by employers in a matter of a few months through the savings in charging costs, so that decision should be relatively easy.”

The AFP was actively working to support its members through these difficulties, Paul added, sharing everything from best practice ideas to temporary solutions, and working on an updated version of its postcode charging map, details about which would be unveiled soon.

“Our members are working together closely on charging and it is very much an area that shows the practical value of being part of the AFP.”

Operational restrictions and uncertainties are creating issues for fleets adopting new 4.25 tonne electric vans, the Association of Fleet Professionals (AFP) is reporting.

A special concession was created by the Department of Transport for electric light commercial vehicles in 2019. Normally, the holder of a standard B licence would only be able to drive a van up to 3.5 tonnes but recognising the extra weight added by batteries, this was extended to 4.25 tonnes. Such vehicles are also exempt from O licence rules.

However, fleets are finding that a range of other restrictions still apply. Because the van is classed as an HGV, it needs an MOT test after 12 months and is also speed restricted, while tachograph regulations come into effect if the vehicle travels more than 100kms from base.

There are further layers of complication. Technically, the 2019 licence derogation lapsed in May and has not been renewed. Although it seems likely it is still in effect, this has not been officially confirmed. Also, for fleets operating in Northern Ireland, the 4.25 tonne exemptions stop at the border for those travelling from the North into the South and the vehicle needs to be covered by an international O licence.

AFP chair Paul Hollick said: “The whole 4.25 tonne concept is a sensible one, we believe, meaning that operators who would normally adopt 3.5 tonners can easily use larger electric vans while avoiding the central compromise on payload caused by battery weight. However, the real world experience of fleets is that there are still serious obstacles to clear.

“In many cases, commercial users of 3.5 tonne vans are engineers of different types who travel across relatively wide areas, so the speed and tachograph restrictions are especially difficult in day-to-day terms while, we believe, adding nothing in terms of safety for a vehicle of this type.

“If the idea of the concession is that fleets can easily choose a 4.25 tonne electric van instead of a 3.5 tonne diesel one, then that is not currently possible. There are just too many additional responsibilities and regulatory uncertainties.”

Paul said the AFP would lobby for the rule to be changed because the present situation served as a disincentive for fleets looking to acquire larger electric vans.

“As the AFP has detailed in recent months, electric van adoption is generally proving much more difficult for many fleets than electric cars. This is especially true given concerns over range and payload, while unnecessary problems such as these 4.25 tonne issues create additional hurdles that are often difficult to resolve. We’ll be campaigning for the necessary changes and asking other industry bodies to support our efforts.”

Discounts are starting to appear on new electric vehicles (EVs) for really the first time since they entered the mass market, delegates were told at the Association of Fleet Professionals (AFP)’s 2023 Conference.

Recent price cutting by Tesla and the arrival of new manufacturers from China were both helping to create a more competitive environment, alongside a gradual ramping up of production volumes following the pandemic.

Mike Potter, CEO, Drive Electric, told the conference: “It’s really a sign that EVs are becoming a normal part of the fleet market as well as the sector seeing a return to something a little closer to traditional market conditions. We’re not talking about massive discounts but the time when all EVs were sold at list price appears to have passed, at least for the time being.

“The moves made by Tesla appeared to us to be designed to try to prompt some kind of price realignment in the EV market and, to some extent, that has worked – although it has arguably had negative effects in terms of setting future residual values. Certainly, others have had to look at their own sales to fleets and whether incentives needed to be introduced.

“New entrants from China have also been a factor. MG is now really established as a standard fleet choice at the entry level EV end of the market and the arrival of others such as BYD could have a similar impact in the mid-market. Their product appears to be strong enough to challenge existing players and if availability is good, they could mount a serious challenge.”

Some fleet managers in the audience reported that lead times on EVs were starting to fall, sometimes substantially – although this could create its own problems.

Peter Milchard, AFP board member, said: “It was interesting during our panel discussion to hear that some fleets, who are sensibly placing EV orders 12-18 months ahead of when they actually need the vehicles based on recent supply experiences, are now seeing some of those orders arriving in 6-9 months.

“On one hand, it’s good news, because it suggests that lead times are returning to sensible levels in some instances but it does mean that their orders are arriving a year earlier than they really need them, which can obviously be an issue in itself.”

The conference also debated the advantages of solus versus panel funding for fleets.

Steve Winter of Appleridge Fleet Consultancy said: “You can easily find differences of between £30-£100 per month on the same vehicle depending on the leasing company. These are not normally a sign of anything other than the appetite of that business for leasing you a certain kind of model of vehicle but does show the importance of benchmarking when it comes to vehicle acquisition. Fleets should consider having a panel of lenders is the right solution.”

The AFP conference took place at The British Motor Museum, Gaydon. Sponsored by Mina, it focused on practical advice for fleets facing a range of current issues. Sessions took the form of panel discussions with leading fleet managers chaired by AFP board members. These covered topics including handling supply matters, dealing with the rising costs of leasing and rental, managing an aged fleet, reimbursing drivers of electric vehicles, and optimising van fleets while gearing up for electrification.

AFP chair Paul Hollick said: “The ongoing impact of everything from the pandemic to the current economic crisis means fleet managers are facing a multitude of difficult issues for which there are often no easy answers such as rising costs across the board, ongoing supply difficulties, electrification of van operations and the ageing of their existing fleets.

“We wanted delegates to leave with ideas they can put straight into action – and the feedback that we are receiving suggests that the conference very much achieved that aim.”

Falling electric vehicle (EV) residual values (RV) are “problematic” for fleets and action needs to be taken to improve their prospects in the used car market, says the Association of Fleet Professionals (AFP).

Paul Hollick, chair, said that RV reductions of 10-20% had not been uncommon over the last 12 months for some of the most popular fleet EVs and that the trend had clear repercussions.

“Until perhaps a year ago, it was possible to make a convincing financial case for EVs at board level. Yes, they were expensive to buy new but residual values were remarkably strong and charging was cheap. Now the second and third parts of that argument have started to fall away.

“Of course, fleets are still going to want to continue the process of electrification thanks to benefit in kind advantages for drivers, the 2030 deadline edging closer and for environmental reasons. However, as AFP members continually testify, being able to back all of this up with a sound financial argument has always made the process much easier.”

Paul said that the question facing fleets and the wider motor industry now was what could be done to help strengthen RVs and reduce the cost of power?

“The latter problem is potentially the easiest to resolve. Fleets that concentrate on home charging are still benefitting from lower costs and over the next year or so, we can expect to see electricity prices fall to a level that, if not comparable to before the war in Ukraine, will be at least much more competitive than today.

“However, addressing the used EV market is going to be more of a challenge. How do we change the perceptions of used car and van buyers, convincing more of them that these vehicles are desirable? It seems to us that doing so centres around making EVs more affordable while ensuring that consumers view them as practical propositions on a day-to-day basis.

“The affordability question is a tricky one. In some other countries, of course, there are government subsidies aimed at the used EV market, ranging from low cost loans to lump sums, and these have proven effective. It would be good to see similar moves here. However, it is the practicality issue that we feel probably needs greater attention. The UK simply doesn’t have enough chargers of the right types in the right places, and despite infrastructure growth, it’s not clear that this will change at any point soon.

“It’s not just pictures of queues for chargers in the news that make this situation apparent to used car buyers but many people have come back from Easter breaks in France and Germany, and noted how much more advanced and useable their networks appear to be.”

Paul said that the AFP welcomed the formation of ChargeUK, the new industry body for charging providers, and hoped it would be able to work closely with government.

“It has appeared to us for some time that a much stronger sense of direction is needed than is currently being seen when it comes to charging. We have been arguing for the creation of a charging czar for some time and, if that isn’t going to happen, an industry body working alongside government is probably the next best solution. Without visibly viable public infrastructure in place, used EV buyers are being asked to take a chance on simply being able to charge their vehicles out on the road, which is simply unreasonable.”

Paul added that many of these issues were likely to resolve over time but were proving unreasonably problematic in the meantime.

“Ultimately, it is probable that power will become cheaper, the charging infrastructure will improve, mass production will help to bring down the price of new EVs, and used prices will therefore fall to a level that is closer to traditional ICE options. However, it does feel as though there is limited recognition at a government level that taking greater control over the process of electrification in the short term could make EV adoption much easier for fleets and used car buyers.”

Service, maintenance and repair (SMR) issues mean that fleets are facing excessive vehicle off-road (VOR) time, the Association of Fleet Professionals (AFP) is reporting.

Paul Hollick, chair, said AFP members buying SMR were regularly reporting a range of problems. Some of these, such as parts supply, were felt to be outside the control of suppliers – but others, including levels of communication, were more disappointing.

“Garages and workshops – from small independents to franchise dealers and repairer networks to fast-fits – are facing similar problems to almost every other part of the motor industry. Getting hold of many parts is difficult while finding trained staff is challenging. These facts are having a direct impact on fleet VOR times and are not the fault of suppliers.

“However, other aspects of dealing with SMR at the moment are more frustrating. Simply getting the attention of suppliers to book in work and resolve any issues that are being encountered can be difficult, especially when it comes to manufacturer warranty work.

“A key annoyance is that if vehicles are booked in for a number of SMR jobs, they are often being handed back with just the easier ones resolved and excuses made for anything more complex, along with advice to make a new booking and no dates available in the near future. There is a feeling within the AFP that often a real intention to tackle bigger jobs is limited.”

Paul said that the problem was especially acute because so many fleets had been forced by new vehicle supply issues into operating often significantly older cars and vans.

“On older vehicles, it is almost unavoidable that more SMR is needed and often bigger jobs, too. This means that fleets are now very much reliant on garages and workshops on a day to day basis when it comes to minimising VOR. Being able to count on them doing what they say they will do is essentially an operational necessity.

“At the AFP, we recognise that, to an extent, SMR suppliers are often firefighting in the face of demand and are placed in a difficult situation when it comes to meeting fleet customer needs. However, more straightforward conversations and a more reliable approach would certainly be much appreciated by our members, we feel. What they find frustrating are situations when they are left without a vehicle that they were expecting to be repaired and have to scrabble around to find a replacement. It creates difficult situations.”

PLACES FULL FOR AFP 2023 CONFERENCE WITH THREE WEEKS STILL TO GO

 

With three weeks still to go, all places are now full for the Association of Fleet Professionals’ (AFP) 2023 annual conference,

In total, 300 AFP members have signed up for the event, which takes place at The British Motor Museum, Gaydon, on Wednesday 17^th May, and will focus on practical advice for fleets facing a range of current issues.

Sessions will be chaired by AFP board members and cover subjects including managing supply matters, dealing with the rising costs of leasing and rental, managing an aged fleet, reimbursing drivers of electric vehicles, and optimising van fleets while gearing up for electrification. There will also be a live training exercise involving everyone at the conference on  Engaging stakeholders with future fleet policy.

Paul Hollick, chair at the AFP, said: “While this is just the second AFP annual conference, it already feels like a well-established part of the fleet calendar and the number of members who have signed up to attend is a firm confirmation of its value and importance.

“We’re still receiving requests all the time for places, so have opened a waiting list, which can be accessed online but, to all intents and purposes, the event is already full with three weeks yet to go.”

Paul said that the approach adopted for the conference had been chosen based on an need expressed by many fleet managers to access practical guidance that would have a direct impact on immediate, day-to-day issues.

“In recent years, much attention has been given by the fleet sector to big, strategic subjects such as electrification. These are obviously very important but many AFP members today are instead mainly looking for advice and assistance on how to deal with a whole series of current, practical challenges.

“The ongoing impacts of everything from the pandemic to the current economic crisis means fleet managers are today facing a multitude of difficult issues for which there are often no easy answers such as rising costs across the board, ongoing supply difficulties, and the ageing of their existing cars and vans.

“At next month’s conference, we’ll be tackling as many of these subjects as possible, with a focus on pragmatic solutions that have been proven to work, explained by leading fleet managers and industry experts from across our sector. We want delegates to leave with ideas they can put straight into action.”

The headline sponsor for the AFP conference is Mina and Ashley Tate, CEO, said: “The sense of collaboration and desire for electrification was so strong at last year’s conference that there was no question that we wanted to be involved again this year.”

AFP members can register for the conference waiting list at https://www.theafp.co.uk/conference-2023/.

A new electric vehicle (EV) mileage cost calculator has been created by the Association of Fleet Professionals (AFP) to help with accurate reimbursement of company car drivers.

It shows potential pence per mile costs for more than 70 models, comparing a variety of home and public charging tariffs in a variety of weather conditions against the current nine pence per mile Advisory Electricity Rate (AER) rate from Her Majesty’s Revenue and Customs (HMRC).

Paul Hollick, chair at the AFP, said: “This answers a very real need from fleets for information about real world EV charging cost performance, given the variance that exists between what is being paid for electricity and how efficiency changes at different temperatures.

“We expect members to choose to use the information in several ways. The first is simply to look at the mileage costs of different EVs and use the figures to inform future decision making, especially which models should be included on choice lists.

“Secondly, it should also support arguments to encourage more home charging and less use of public facilities, showing just how much this impacts on costs on a per vehicle basis.

“Finally, and perhaps most importantly, it will help to enable more accurate reimbursement of drivers for charging. While the increased nine pence per mile AER rate is an improvement, the calculator does show conclusively how it easy it is for this figure to be exceeded in any number of circumstances. We already have several AFP members who are paying substantially more that AER in order to reimburse employees fairly.”

The calculator has been created by AFP member David Watts of Volkswagen Financial Services | Fleet and plans are underway to make the data it produces widely available across the membership body.

Paul said: “This is a good example of how the huge expertise that is available within the AFP can help to create new and innovative tools that immediately help to improve fleet management best practice.”

David Watts, Fleet Product Manager at VWFS Fleet said “Having been instrumental in raising the issue of the Advisory Electricity Rate (AER) and its appropriateness from a fleet perspective, back in 2020 (when it was £0.04), it was good to explore this further with the AFP.

The exercise demonstrated the significant variance in energy consumption across the EV range, coupled with the huge variance in energy costs, depending where and when you charge up – from home and off-peak, all the way through to ultra-rapid charging – together with seasonal variations. This insight was then compared with the HMRC’s AER business mileage reimbursement to develop a more effective tool to support accurate EV charging reimbursements.

Importantly, the new tool will enable fleet managers to more accurately calculate fleet charging costs, ensuring reimbursement strategies are fair for drivers, incentivising the switch to EVs in line with the government’s wider sustainability agenda.”

Fleets are starting to take the efficiency of different electric vehicles (EVs) seriously thanks to increases in the cost of charging, says the Association of Fleet Professionals (AFP).

Paul Hollick, chair at the AFP, said the gaps between the most and least efficient EVs were striking, and that fleet managers were increasingly swapping information on which were delivering the best figures in real world conditions.

“When EVs started arriving on fleets, fuelling them cost just a fraction of a petrol or diesel vehicle, so there was relatively little attention paid to which had the best miles per kWh figures. However, the price rises seen in the last year or so, with some on-the-go charging costing as much as refuelling an ICE car or van, means that is no longer the case.

“Increasingly, fleets are taking a lot of notice about which EVs are the most efficient, They are spending time analysing which fall within reasonable parameters and which don’t in exactly the same way as they have done with ICE cars for many years. That means working out whether the problem lies with the vehicle, the route or the driver – and taking appropriate managerial action.”

Paul said that fleets were even starting to remove EVs with the worst figures from choice lists and sometimes incentivising drivers to choose the most efficient options.

“It’s widely reported that some widely-used EVs are struggling around the two miles per kWh mark while competing cars can deliver almost twice that figure. These are significant differences that, with current electricity pricing, can have a genuine effect on running costs.

“Certainly, some manufacturers are starting to get reputations for EV efficiency while others are seen as the opposite, and choice lists are being modified accordingly.

“Of course, efficient EVs also make AER repayments more realistic, with the new nine pence per mile rate much closer to the amount being paid by drivers of more efficient EVs who charge at home.”