Fleet Alliance report turning of corporate green tide
Fleet Alliance, reports that CO2 emissions on new cars ordered by corporate customers have fallen to a new low as a ‘green tide’ continues to turn with 62 per cent of all new cars ordered for the first four months of the year below 140g/km, with 29 per cent of them less than 120g/km. The results compare with the first four months of 2010, when only 51 per cent of new vehicles were below 140g/km, with 25 per cent of those of less than 120g/km.
And the figures for the most recent sales month, April, show that the pace of change is continuing with vehicles ordered at less than 140g/km up by 10 per cent compared to April 2010.
Financial advantages
Martin Brown, managing director of Fleet Alliance, said: “We believe there are two main factors at work here. One is that corporate customers and their drivers are heeding the message that ‘green’ equals lower costs as well as being more environmentally friendly.
“Drivers are selecting lower emission vehicles because of the financial advantages which include lower BIK, National Insurance Contributions and VED, while companies are keen to promote greener vehicles to their staff as they mean lower tax charges for them, too.
“The second factor is that manufacturers have responded to legislative demands and are introducing far more choice in the sub 140 and sub 120 product sectors. There are now far more mainstream fleets cars falling into these categories and this is a trend that will only increase over time,” he said.
Holistic approach
Fleet Alliance, has seen emissions fall across the board ,but especially from the four brands that make up the Volkswagen Audi Group; Volkswagen, Audi, SEAT and Skoda, which between them accounted for 31 per cent of the sales mix in the four months in question, with Ford and BMW also featured highly .
“The message that lower CO2 equals lower costs, lower fuel consumption and lower taxes is now hitting home and we have pushed it very hard with our clients. By making the right vehicle choices now, fleet decision makers can make cost savings running into several thousand pounds over the typical three year life of a vehicle.
“The cumulative effects of the various tax increases, including VAT at 20 per cent, are having an impact, and will continue to do so for the next few years. Businesses will see their fleet costs rising in future unless they take action now.
“Without taking a holistic approach to vehicle selection, however, it is easy to make the wrong decisions. Using whole life costs to inform selection is essential in getting vehicle choice right now – and going forward,” added Martin Brown.
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