Showing posts with label Automotive Leasing. Show all posts
Showing posts with label Automotive Leasing. Show all posts

Friday, 18 March 2011

£10million Fund Announced for Low-Carbon Vehicle Development

Engineering a Greener Future? (Pic: LeasePlan)
Yesterday, it was announced that a new, £10 million pound fund would be set up to fund low-emissions vehicle research and development in the UK. Supported by a grant from the Engineering and Physical Sciences Research Council (EPSRC)

The project will work in partnership with three UK universities with expertise in the field. The research is designed to pursue a variety of carbon-saving approaches to motorised transport. One example of how the money is being spent can be found in the £3 million allocation to Warwick University, which is specifically aiming to improve the drive systems of electric vehicles.

It is hoped that research into areas such as this will allow for greater efficiencies in existing technology, as well as the discovery of new ways of operating as the fund’s aims progress. This move has been hailed by the Conservative Party, and Business Minister Mark Prisk, who approved the fund’s allocation said, “The £10m research grant will help ensure that the UK remains a world leader [in reduced-carbon technology].”

The UK has a long history of leading the way in scientific developments, and this research should be regarded as part of this tradition. Alongside this gesture of support shown to the UK motor industry, there was further good news for car manufacturers today. Despite long-standing and widely publicised struggles, UK car production rose by 15% in the past month, with the strength of the export market widely believed to be the driving factor. There was also a reported 10% rise in engine output from UK plants that was also welcomed by industry leaders.

Both of these pieces of news should be welcomed by fleet managers, as a strong and innovative UK car market will ensure the latest automotive developments are conveyed to domestic customers as soon as they become available.

As car manufacturers become ever more effective at increasing MPG while reducing the carbon output, it would seem that the consumer will soon have a wealth of leaner, greener vehicles to choose from.

While a wholesale move away from fossil fuel remains tantalisingly out of reach, a combination of electric vehicles and more efficient fossil fuel vehicles could provide a useful stop-gap as research into the ideal vehicular solution to the world’s oil thirst continues.

Wednesday, 9 March 2011

Fuel Prices Drive Behavioural Changes

Pricey : Petrol is at £1.30 per Litre. (Pic: LeasePlan)
The first days of March brought further bad news for motorists across the UK, with major news sites reporting that the average price of a litre of unleaded petrol had reached the £1.30 mark. Overall, the steady rise in fuel prices is a well-documented phenomenon, with a variety of factors, including government tax levels and unrest abroad being blamed for higher costs at the pump.

According to the BBC, car-owners are now beginning to change their driving habits in response to rising petrol prices. Small changes in the way that drivers operate their cars can have a dramatic effect on their weekly fuel spend, and the instantly recognisable savings are a key factor in encouraging many to drive more efficiently.

Simple measures such as pumping up tyres and avoiding excessive revving at traffic lights can, according to the BBC, save £10-£20 per week for the average motorist. For business car drivers covering a greater mileage, this figure could be much greater. This doesn’t just bring economic benefits, it has the added bonus of reducing emissions, which aids the UK’s push for a greener future.

A caveat of this response from the public is that the most effective way of dropping fuel costs – by reducing journeys taken – is simply not an option for business car drivers. In this regard we understand our clients’ predicament and with the average spend at the pump dropping from £25 to £20, it is clear that all motorists, whether private owners or business drivers, are feeling the pinch. This reduction is primarily a result of owners half-filling their cars, and perhaps unwittingly, they are in fact following one of the AA suggestions to reduce the weight of the vehicle to save on costs.

However, this changing behaviour amongst private drivers can, by proxy, convey benefits to business users as a widespread shift in fuel buying habits should encourage manufacturers to push for the development of more fuel-efficient cars, in addition to the production of increasingly popular models of electric vehicles.

While Quentin Wilson’s description of ‘eerily quiet’ motorways may be slightly premature, the future of traditional cars would appear to be dependent on finding more and more ways to squeeze the potential out of every last drop of fuel. If this trend continues, the figure for MPG could well become the first consideration in every consumer’s mind when making a new purchase

Wednesday, 2 March 2011

The Stuff of Electric Dreams?

Today, the BBC announced an unlikely entrant into the electric vehicle race – Rolls Royce. Famed for cars which epitomise luxury and a degree of excess, it seems an unlikely pairing. In truth, it is just that - the Phantom that was revealed at the Geneva Motor show is, for now, a one-off. While this exercise could be passed off as mere publicity, the fact that the unveiling has been keenly watched by the likes of Maybach and Bentley suggests that what we have been shown here could be a fleeting glimpse of the future.

The question remains, why not? As electric vehicles’ capacities and capabilities grow, it would appear that these top-end vehicles could one day leave fossil fuels behind. Comfort in these cars is crucial, and the traditionally constant battle against engine noise would become obsolete in an electric Phantom or Bentley. The unique levels of torque and rapid acceleration provided by an electric motor would also surely appeal to manufacturers who design these vast vehicles to shift at speeds deemed acceptable by the modern top-level buyer, who demands speed as well as luxury.
 
From Concept to Reality

The model on show is very much a concept car, and with a price tag in the region of £250,000, many would be forgiven for questioning its relevance. It is an expensive statement, but something that it can achieve is to capture the public imagination. If electric cars can be associated with all brands, including those at the top of the automotive tree, then, surely, the concept of electric vehicles as an everyday phenomenon is succeeding. Although still in its early stages, there is also some innovative technology on show with this prototype, including a wireless charging system could remove the need for roadside posts, or dangling extension leads.
 
Crucially, the reaction of Rolls Royce’s competitors should be watched with interest. While there have been positive statements from the likes of Bentley's chief executive Wolfgang Durheimer, speaking to the BBC, commented, “electrification and hybridisation were among the key technologies I introduced at Porsche and I think there is potential for these technologies in Bentleys too.” Dieter Zetsche, the chief executive of Daimler, has been less positive however, suggesting there was no demand for electric Maybachs.
 
Ultimately, it is up to the technology to prove its’ worth, and while we may not all be able to drive Rolls Royces in the future, we can potentially benefit from the change in the perception of electric vehicles that statement prototypes such as this can usher in.

Monday, 21 February 2011

Leasing in the 'Big Society'

Cameron: Service Reforms
Writing in The Telegraph today, David Cameron outlined his vision for the future of public services. At first glance, phrases promising “the decisive end of the old-fashioned, top-down, take-what-you're-given model of public services” seem difficult to decipher, but what is clear is that outsourcing in the public sector, including fleet services, is set to increase.

The Prime Minister goes further in suggesting that services should be offered at the ‘lowest level’ to ensure best value for money. This change towards more specialised and flexible procurement is potentially a big opportunity for both the automotive leasing industry and public sector organisations.

Initiatives such as salary sacrifice are innovative ways of reducing overheads and offering a greater employee benefits package without reducing staff numbers. Similarly, outsourcing provides numerous advantages to public sector bodies seeking to increase efficiency and reduce costs.

The greatest challenge for fleet services providers is to present the case for the most competitive and innovative solutions to public sector challenges.


Thursday, 10 February 2011

The Future of Accident Prevention

Every fleet manager dreams of an accident-free fleet, but due to the fact that human beings are involved in driving, it has never quite been a reality. Traditional logic suggests that the easiest way of reducing the number of accidents on the roads would be to limit driver control, but this would often remove the flexibility offered by driving a fully autonomous fleet vehicle.

The BBC has revealed new developments in accident-prevention technology that don’t seek to limit the driver, but instead revolve around some remarkable in-car tech. Imagine a car windscreen that could enhance your vision or brakes that can apply themselves before the driver even realises they are in danger. It sounds like the stuff of science fiction, but both of these technologies, amongst a plethora of others, are already in development.

Technology has an important role to play in safety, and enormous strides have already been taken. If they can be integrated in a cost effective fashion, then these developments could be as important as the three-point seatbelt, or the airbag. But, whilst we certainly look forward to the mass market adoption of next generation safety technologies, we recognise that even those that exist in test scenarios are years away from general availability.


Through our close relationships with major vehicle manufacturers we keep abreast of these developments and monitor progress, and will always ensure the best new technology is available to our fleet buyers. However, in the meantime, we continue to emphasise the importance of regular maintenance, driver training and well defined motor and travel policies as critical to safer driving.