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.”
Relationships between fleets and motor manufacturers appear to be at an “all-time low”, says the Association of Fleet Professionals (AFP).
Members across the industry body are reporting everything from late cancelled orders to simply not being able to get hold of representatives from major car and van makers, alongside a suspicion that large fleets are often being placed last when it comes to allocating stock.
Paul Hollick, chair at the AFP, said: “There’s a general perception that this issue is getting worse rather than better. Everyone knows and understands that there are ongoing production issues affecting almost every manufacturer but no-one can comprehend why this has seemingly caused a complete breakdown in responsibility and communication.
“With a couple of possible exceptions, the story appears to be consistent for almost every manufacturer across all of our fleets. Placing orders is difficult because you can’t get hold of the right people to do so, getting subsequent updates on those orders is often impossible and finally, these orders are often pulled at the last minute with no explanation.
“We are hearing regular stories from across our membership about orders for dozens or even hundreds of cars and vans being cancelled more than a year after they were first made and within weeks of when they were due. This leaves fleets high and dry. It’s having a direct impact on businesses that need transport and, on a personal basis, potentially damages the perception of the fleet manager within their business.”
Paul said that the situation was causing high degrees of ill feeling and there was even talk of organising boycotts of some manufacturers.
“As an organisation, we don’t think any form of boycott would be an effective strategy but the fact that such an idea is being raised just shows the strength of feeling. A refrain we hear time and again from fleets is that, once supply returns to some kind of normality, the worst-offending manufacturers will not be easily forgiven and our members will not work with them in the future where a choice exists. Relationships feel at an all-time low.”
A further point of contention, Paul said, was that manufacturers appeared to be giving priority to retail customers and small fleets over large scale buyers of vehicles.
“Especially for certain types of more fashionable vehicle, it seems that it is easier to get hold of supply if you a private individual or if you run 10 vehicles rather than if you run a thousand. This is something that makes no sense whatsoever – especially at a time when fleets are often paying something very close to retail prices.
“It’s a common complaint that before the pandemic, fleet managers were pursued by manufacturer reps on a daily basis and now, they haven’t heard from any in years. That’s not a basis for responsible, long-term partnerships. Manufacturers should realise the damage they are doing and change their approach as quickly as possible.”
A new training course launched by the Association of Fleet Professionals (AFP) aims to make women’s voices heard in the fleet industry.
Launched today, on International Women’s Day, the new course is called “Accelerate – Women’s Voice in Fleet” and will give delegates the tools to speak confidently and clearly in public, whether in a meeting, one to one, at a conference or taking part in a webinar.
AFP Board Member Lorna McAtear said: “We have many talented and otherwise confident women within the AFP and the fleet sector in general who, we have found, are not keen on public speaking. This came to light last year when we were planning our 2022 conference and invited several women to speak but found that many were reluctant to do so.
“Women’s voices are under-represented at fleet events in general and we want to help encourage women to share their knowledge, experience and ideas publicly because we believe strongly that the industry would all benefit from hearing and learning from them.
“We’d like to help change this situation and the course aims to provide women in fleet with the tools to step forward and be confident about expressing their views whether in a team meeting, board meeting or more publicly. If possible, we’d like some of the people who take part to become participants in panels for our AFP Conference, which is taking place in May.”
The course lasts two days and is being held on 19-20th April at The British Motor Museum, Gaydon. Modules cover subjects including confidence, courage, clarity and content.
Lorna said: “We appreciate that stepping outside of your comfort zone requires bravery and the course is designed to create a supportive environment. We want all women fleet professionals to be able to make their voice and views heard, sharing with them a toolkit that makes public speaking a skill that can be learnt, honed and repeated.”
Course details can be found at https://www.theafp.co.uk/product/accelerate-womens-voices-in-fleet-19th-20th-april-2023/.
A revised Tax and Regulation Manifesto is being launched today by the Association of Fleet Professionals (AFP) ahead of the Spring Budget on March 15.
The first edition of the document was created almost two years ago and the new version has been expanded from 13 to 21 points. Key items added include greater support for electric vans, the introduction of a chargepoint regulator, alignment of public charging VAT with home charging at 5%, tax breaks for hydrogen use and the support of community charging projects to encourage local charger installation.
Paul Hollick, AFP chair, said: “As a campaigning industry body, the Tax and Regulation Manifesto represents the AFP’s core thinking. It is designed to focus on practical ideas, ranging from quite small detail alterations to major strategic shifts, around which we believe that change or definition is required to enable businesses to move forward with their fleet and mobility plans faster and more effectively.
“Our 2021 Tax Manifesto was successful in that our number one request – to provide more information about future benefit-in-kind taxation – was achieved last year almost exactly in line with our thinking. We believe this very much shows that the government is listening to the fleet sector and we are hopeful that some of the ideas that we suggest here will ultimately be adopted.”
Paul said that the manifesto was the result of several months of work by the AFP’s Future Mobility Steering Committee.
“We’ve been having wide-ranging discussions with our members and other interested parties about developing our original ideas in areas where we believe that the taxation of fleets and mobility needs changing or developing in order to create effective incentives, greater certainty and more fairness.
“Of the 21 points we suggest, several could be implemented quite easily, almost at the stroke of a pen. Others, such as the need for discussions around a road tolling plan, are very much strategic and part of longer-term shifts in policy.
“The results, which we believe are constructive, realistic and thought-provoking, are contained in this document. We’re releasing the manifesto now, just ahead of the Spring Budget, because this is when discussion around policy and fiscal measures affecting fleets are at their peak. We want the document to spark as much discussion as possible.”
The manifesto can be downloaded at Tax Manifesto 2023 (theafp.co.uk) and its 21 points are:
Paul continued: “Most of these points are directly related to the changing shape of the fleet and mobility sectors, specifically the practical issues that we are encountering when it comes to car and van electrification. While we appreciate that the government has achieved much in this area, there remains a lot more to be done, especially when it comes to light commercial electric vehicles.
“What we hope to see now is that the manifesto will be considered by the fleet and mobility sectors and to hear the reaction from all parties who have an interest. It is by no means a fixed document and we are very much open to further ideas and refinements.”
View the manifesto here – Tax Manifesto 2023 (theafp.co.uk)
Practical advice for fleets facing a range of current issues is the focus of this year’s annual conference from the Association of Fleet Professionals (AFP).
Taking place at The British Motor Museum, Gaydon, on Wednesday 17th May, sessions will 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 that will explore fleet policy for the future.
Paul Hollick, chair at the AFP, said: “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, on a day-to-day level, many AFP members in 2023 are looking for advice and assistance on how to deal with a whole series of everyday 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.
“The purpose of our annual conference is to tackle several of these subjects, with a focus on practical 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.”
Paul said that last year’s AFP conference, the organisation’s first, had been a major success with more than 250 members attending.
“While this is just the second time we have held the conference, it feels to us as though it is already well-established on the fleet calendar, thanks to the enthusiastic response we received last year. We are delighted to announce that Mina are headline sponsor for the conference and we will finalise the agenda and announce our list of speakers shortly. We’re very much looking forward to the event.”
Ashley Tate, CEO at Mina said: “We are delighted to be AFP headline sponsors for the second year running. 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.”
Registration for the conference, which is open to all AFP members, is now open and can be found at Conference 2023 – AFP (theafp.co.uk)/.
Telematics is proving “almost essential” to the adoption of electric vans and job-need electric cars, says the Association of Fleet Professionals.
Stewart Lightbody, vice chair at the industry body, explained the technology was important when it came to resolving two major points – when, where and for how long these cars and light commercial vehicles were charged, and calculating actual amounts where employers were reimbursing employees for charging costs incurred.
He said: “We now have a number of major fleets with more than a thousand electric vehicles (EVs), so there is quite a formidable bank of experience available within the AFP. A key message we are receiving from these members is that in the majority of job-need cases, telematics is proving almost essential to a smooth electrification process.
“It’s a key element in ensuring that the best option is employed at the best time in terms of convenience and range with the aim of minimising charging downtime. For example, many electric van operators are timing charging to coincide with driver’s breaks, using telematics to confirm that employees are rapid charging to 80% and not lingering to trickle charge to 100%. This is seen as the most productive balance of work availability against charging time.
“Others are trying to minimise use of rapid charging, especially on motorways, because low operating costs are an essential part of their electrification objectives. There is generally a wide gap between the cheapest available power – which is usually at home – and the most expensive – normally the fastest commercial charging on motorways.
“Additionally, in cases where there is limited charging provision – such as in remote areas – the technology means that work can be planned around the few facilities that are available, making EVs practicable in places where there might otherwise be difficulties.
“In all of these instances, the use of telematics makes planning and monitoring much easier, showing the location and type of chargers in relation to the vehicle route and allowing charging strategies to be implemented effectively.”
Stewart added that there was also an important role for telematics in tracking vehicle mileage for fleets that used an actual cost method for charging reimbursement.
“While the 8p AER rate introduced last year was much more acceptable for many employers, there remain a relatively large number who recognise that this is not going to meet the costs that some drivers are racking up driving an EV, especially in vans and larger cars. Telematics means that actual costs can be calculated with greater ease, making this kind of reimbursement a more practical proposition.”
AFP members were swapping ideas and observations on EV management on an almost daily basis, he said, sharing their experiences and solutions.
“Electrification is providing a whole series of new opportunities and challenges for fleets and this thinking around telematics is only one fragment of the overall picture. An important advantage of being part of the AFP is the ability to network and access best practice, and this is something that is proving especially important for EV operators at the moment.”
The introduction of an apprenticeship standard for fleet is being investigated by the Association of Fleet Professionals.
In response to demand from the members and the wider industry, the organisation has been looking into the process involved in the creation of an apprenticeship standard and is now inviting feedback from across the sector to gauge enthusiasm.
Paul Hollick, chair, said: “The creation of a vehicle fleet apprenticeship standard could potentially be a huge boost to the industry and help further with formally professionalising roles within our sector. It is an idea with significant appeal.
“However, the size of the task and degree of industry support required should not be underestimated. We at The AFP have the energy and commitment to support employers to drive this forward but the creation of a vehicle fleet apprenticeship programme would need widespread commitment to ensure its success.”
A key part in receiving approval for an official apprenticeship standard requires commitment from a number of companies that they would take on apprentices in order to prove the need and viability for its introduction.
Paul said: “There are many steps in the creation of the apprenticeship but the one crucial to its success is to prove there is a need. This requires what is referred to as a ‘trailblazing group’ of 10-20 experienced fleet employers who will be instrumental in helping to develop the apprenticeship standard and employ apprentices in the first year of the programme.
“This is very much a question of employers putting their money where their mouths are and there would need to be a cohort of businesses willing to both create jobs and put in place all of the support resources and mechanisms that apprentices need.”
However, Paul said, the advantages of an apprenticeship scheme for vehicle fleets were numerous and obvious.
“While there are many highly qualified and capable fleet managers in our sector, supported by training and qualifications available through the AFP Fleet Academy, this is not a profession with a recognised entry route. Having apprenticeships would change that and provide much more of a structured career path into the fleet sector.
“In the future, especially as fleet managers continue to evolve into mobility specialists, an apprenticeship could eventually sit alongside career choices in other corporate specialisms such as human resources and procurement, providing a steady stream of talented individuals.”
Businesses and industry professionals interested in becoming involved in the creation of a vehicle fleet apprentice standard should contact the AFP at [email protected].