A L D Automotive

A Message from Lord Pickles and Lord Blunkett, followed by A L D Automotive's best practice article

The ability to listen and learn from one another has always been vital in parliament, in business and in most aspects of daily life. But at this particular moment in time, as national and global events continue to reiterate, it is uncommonly crucial that we forge new channels of communication and reinforce existing ones. The following article from A L D Automotive is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

Blunkett signature Rt Hon The Lord David Blunkett
Pickles signature Rt Hon The Lord Eric Pickles

www.aldautomotive.co.uk

BEST PRACTICE SPONSOR 2020
15ALD AUTOMOTIVE |
AUTOMOTIVE
Matt Dale, Head of Consultancy
Most new electric vehicles
can travel more than 200
miles on a single charge
As “the reliable partner in long-term car leasing”, ALD
Automotive works across 43 countries to deliver a
leading comprehensive leasing solution. Head of
Consultancy, Matt Dale, tells
The Parliamentary Review
that the
company manages more than 1.7 million vehicles worldwide
and provides customers with “total fleet management
flexibility”. Matt says that this includes everything from the
financing of cars to complex outsourcing operations.
Over the past few years, we have seen a number of major changes that have
impacted fleets and their drivers, from the introduction of a new system of vehicle
excise duty to the rise of electric vehicles. And there’s a lot more to come, including
the introduction of a new system of company car tax and the proliferation of clean
air zones, or CAZs, around the country.
For fleets to thrive in this shifting landscape, fleet professionals need to be prepared.
Promoting cleaner vehicles through legislation
Most forthcoming government legislation is designed to encourage the uptake
of cleaner vehicles. CAZs are a case in point. These have their basis in the
government’s Air Quality Plan from 2017, which identified 29 local authorities
where nitrogen dioxide levels are particularly bad, ordering them to draw up their
own clean air plans by the end of 2018. Another 33 local authorities have since
been added to the list. The local authorities’ plans can involve CAZs, which are
defined as areas where special action will be taken to reduce emissions from road
FACTS ABOUT
ALD AUTOMOTIVE
»Established in 1958
»UK head office in Bristol
»Services: Leading mobility and
vehicle leasing solutions
»No. of employees: 670
»Operates in 43 countries
»Manages 1.7 million vehicles
globally (as of end June 2019)
ALD Automotive
THE PARLIAMENTARY REVIEW
Highlighting best practice
THE PARLIAMENTARY REVIEW
Highlighting best practice
16 | ALD AUTOMOTIVE
transport. There are, broadly speaking,
two types of CAZ. A non-charging
CAZ is one where there are no fees for
most motorists; instead, there are a
number of other schemes to improve
air quality, such as cycling routes and
improved road layouts. Charging CAZs,
by contrast, impose fees on dirtier
vehicles that travel through them.
London’s Ultra Low Emission Zone
is an example of a charging CAZ. As
for other local authorities, they are
mostly still finalising their plans. Some
will introduce charging CAZs, and
some will introduce non-charging
CAZs. Whatever form they eventually
take, it’s likely that the majority of
CAZs won’t be introduced until 2020
or2021.
Around the same time, another policy
will be introduced to encourage the
uptake of cleaner vehicles. From April
2020, a new set of lower company
car tax – or CCT – bands is being
introduced for vehicles that emit less
than 50 grams of carbon dioxide
per kilometre, and their rates will be
determined by the number of zero-
emission miles that they can travel.
A car that emits 25 grams of carbon
dioxide per kilometre, for example, and
that can travel 100 miles without any
emissions will face a rate of just five
per cent, and pure electric vehicles will
face a rate of zero per cent.
The government also published
the outcome of its consultation on
reduced vehicle excise duty rates for
the cleanest vans, proposing a new
system that also ties rates to carbon
dioxide emissions in the first year. The
government has promised to confirm
the particulars of that new system
ahead of April 2021.
A new era for emissions
testing
There are other factors that will
encourage cleaner motoring,
including the introduction of new
emissions tests. These tests – the
Worldwide Harmonised Light Vehicle
Test Procedure and the Real Driving
Emissions test – are replacing the
previous New European Driving Cycle.
What’s so special about these new
tests? Fundamentally, they are
designed to be more akin to real-world
driving and, therefore, more accurate.
The RDE test measures a car’s emissions
on the road, in particular oxides of
nitrogen. To conform with the RDE
Step 1 standard, which is obligatory
for all newly registered cars from
September 1, 2019, a car can emit up
to 168 milligrams of oxides of nitrogen
per kilometre. The equivalent figure
for the RDE 2 standard, obligatory for
all newly registered cars from January
1, 2021, is 120 milligrams of oxides of
nitrogen perkilometre.
More accurate tests mean more
accurate results, which, in turn, has
ramifications for fleets and their
drivers. Various taxes, including
CCT and VED, are tied to a vehicle’s
carbon dioxide emissions. Given that
WLTP is likely to give higher carbon
dioxide scores than would have been
given under the old NEDC measure,
it’s possible that some vehicles will
be pushed into higher tax brackets
and that some derivatives will
disappearaltogether.
Electric vehicles will be
exempt from charges in
clean air zones
Connectivity
promises to
revolutionise
motoring, not
only by
reducing both
congestion
and accidents
but also by
laying the
groundwork
for
autonomous
vehicles
17ALD AUTOMOTIVE |
AUTOMOTIVE
Technology is key
EVs have been on the rise for several
years now, with 141,000 registered
in 2018, which is 300 per cent higher
than the total five years before. This is
partly a reflection of how much more
practical they have become. Thanks
to the innovations of manufacturers,
there is now a greater variety of
different EVs, and most recent models
can travel well over 200 miles on a
single charge. This situation is only
going to improve in the years ahead.
Other technological innovations
are coming, too. More cars, for
example, are now connected either
to the internet, through mobile
networks, or to other cars and
roadside infrastructure, through
what is known as dedicated short-
range communications. This level of
connectivity promises to revolutionise
motoring, not only by reducing
both congestion and accidents but
also by laying the groundwork for
autonomous vehicles.
Growing infrastructure to
meet demand
Thankfully, the charging infrastructure
is growing to accommodate the rise of
EVs. There are now over 15,000 public
charge points around the UK’s road
network.
The number of rapid charge points,
which can bring some EVs to 80 per
cent charge in about 30 to 60 minutes,
is also growing. There are almost
2,500 around the country, and almost
every motorway service station has at
least one rapid charge point.
And more are on the way. In 2018,
the government passed its Automated
and Electric Vehicles Act, which gives
it greater powers to make service
stations and other fuel retailers provide
more public charge points. It has also
established a £400 million Charging
Infrastructure Investment Fund to help
develop the necessary infrastructure
around the country.
The ALD Automotive
consultancy team
With so many changes happening,
companies need to be flexible. This
means frequently reviewing your fleet
mobility policy and then optimising
it for the latest legislative and
technological developments.
We specialise in designing efficient
and cost-effective responses to the
changing fleet environment. We
empower you to understand and
optimise the transition of your fleet
to a mobility-based model. Using our
collective insight and expertise, we can
support you with the integration of
alternatively fuelled vehicles and other
smart mobility solutions.
With so many
changes
happening,
companies
need to be
flexible
The public charger
network is growing
BEST PRACTICE SPONSOR 2020
THE PARLIAMENTARY REVIEW
Highlighting best practice
16 | ALD AUTOMOTIVE
transport. There are, broadly speaking,
two types of CAZ. A non-charging
CAZ is one where there are no fees for
most motorists; instead, there are a
number of other schemes to improve
air quality, such as cycling routes and
improved road layouts. Charging CAZs,
by contrast, impose fees on dirtier
vehicles that travel through them.
London’s Ultra Low Emission Zone
is an example of a charging CAZ. As
for other local authorities, they are
mostly still finalising their plans. Some
will introduce charging CAZs, and
some will introduce non-charging
CAZs. Whatever form they eventually
take, it’s likely that the majority of
CAZs won’t be introduced until 2020
or2021.
Around the same time, another policy
will be introduced to encourage the
uptake of cleaner vehicles. From April
2020, a new set of lower company
car tax – or CCT – bands is being
introduced for vehicles that emit less
than 50 grams of carbon dioxide
per kilometre, and their rates will be
determined by the number of zero-
emission miles that they can travel.
A car that emits 25 grams of carbon
dioxide per kilometre, for example, and
that can travel 100 miles without any
emissions will face a rate of just five
per cent, and pure electric vehicles will
face a rate of zero per cent.
The government also published
the outcome of its consultation on
reduced vehicle excise duty rates for
the cleanest vans, proposing a new
system that also ties rates to carbon
dioxide emissions in the first year. The
government has promised to confirm
the particulars of that new system
ahead of April 2021.
A new era for emissions
testing
There are other factors that will
encourage cleaner motoring,
including the introduction of new
emissions tests. These tests – the
Worldwide Harmonised Light Vehicle
Test Procedure and the Real Driving
Emissions test – are replacing the
previous New European Driving Cycle.
What’s so special about these new
tests? Fundamentally, they are
designed to be more akin to real-world
driving and, therefore, more accurate.
The RDE test measures a car’s emissions
on the road, in particular oxides of
nitrogen. To conform with the RDE
Step 1 standard, which is obligatory
for all newly registered cars from
September 1, 2019, a car can emit up
to 168 milligrams of oxides of nitrogen
per kilometre. The equivalent figure
for the RDE 2 standard, obligatory for
all newly registered cars from January
1, 2021, is 120 milligrams of oxides of
nitrogen perkilometre.
More accurate tests mean more
accurate results, which, in turn, has
ramifications for fleets and their
drivers. Various taxes, including
CCT and VED, are tied to a vehicle’s
carbon dioxide emissions. Given that
WLTP is likely to give higher carbon
dioxide scores than would have been
given under the old NEDC measure,
it’s possible that some vehicles will
be pushed into higher tax brackets
and that some derivatives will
disappearaltogether.
Electric vehicles will be
exempt from charges in
clean air zones
Connectivity
promises to
revolutionise
motoring, not
only by
reducing both
congestion
and accidents
but also by
laying the
groundwork
for
autonomous
vehicles
17ALD AUTOMOTIVE |
AUTOMOTIVE
Technology is key
EVs have been on the rise for several
years now, with 141,000 registered
in 2018, which is 300 per cent higher
than the total five years before. This is
partly a reflection of how much more
practical they have become. Thanks
to the innovations of manufacturers,
there is now a greater variety of
different EVs, and most recent models
can travel well over 200 miles on a
single charge. This situation is only
going to improve in the years ahead.
Other technological innovations
are coming, too. More cars, for
example, are now connected either
to the internet, through mobile
networks, or to other cars and
roadside infrastructure, through
what is known as dedicated short-
range communications. This level of
connectivity promises to revolutionise
motoring, not only by reducing
both congestion and accidents but
also by laying the groundwork for
autonomous vehicles.
Growing infrastructure to
meet demand
Thankfully, the charging infrastructure
is growing to accommodate the rise of
EVs. There are now over 15,000 public
charge points around the UK’s road
network.
The number of rapid charge points,
which can bring some EVs to 80 per
cent charge in about 30 to 60 minutes,
is also growing. There are almost
2,500 around the country, and almost
every motorway service station has at
least one rapid charge point.
And more are on the way. In 2018,
the government passed its Automated
and Electric Vehicles Act, which gives
it greater powers to make service
stations and other fuel retailers provide
more public charge points. It has also
established a £400 million Charging
Infrastructure Investment Fund to help
develop the necessary infrastructure
around the country.
The ALD Automotive
consultancy team
With so many changes happening,
companies need to be flexible. This
means frequently reviewing your fleet
mobility policy and then optimising
it for the latest legislative and
technological developments.
We specialise in designing efficient
and cost-effective responses to the
changing fleet environment. We
empower you to understand and
optimise the transition of your fleet
to a mobility-based model. Using our
collective insight and expertise, we can
support you with the integration of
alternatively fuelled vehicles and other
smart mobility solutions.
With so many
changes
happening,
companies
need to be
flexible
The public charger
network is growing

www.aldautomotive.co.uk

This article was sponsored by A L D Automotive. The Parliamentary Review is wholly funded by the representatives who write for it. The publication in which this article originally appeared contained the following foreword from Rt Hon Elizabeth Truss.

Rt Hon Elizabeth Truss's Foreword For The Parliamentary Review

By Rt Hon Elizabeth Truss

Even by the standards of the day –this has been one of the most exciting and unpredictable years in British politics.

The leadership election we’ve just seen marks a huge moment in our country’s history. This government is taking a decisive new direction, embracing the opportunities of Brexit and preparing our country to flourish outside the EU.

As international trade secretary, I’ll be driving forward work on the free trade agreements that are going to be a priority for the government. Free trade isn’t just an abstract concept bandied around by technocrats. It is crucial for a strong economy and for the ability of families to make ends meet. Free trade benefits people in every part of our country, as British firms export to new markets and people doing the weekly shop have access to a wider choice of goods at lower prices.

The essence of free trade is in the title: freedom. It’s about giving people the power to exchange their goods without heavy government taxation or interference. Commerce and free exchange are the engine room of prosperity and social mobility. I’m determined to tackle the forces who want to hold that back.

One of my priorities is agreeing an exciting new free trade deal with the US, building on the great relationship between our two countries and the Prime Minister and US President. But I’ll also be talking to other partners including New Zealand, Australia and fast-growing Asian markets.

And with the EU too, we want a friendly and constructive relationship, as constitutional equals, and as friends and partners in facing the challenges that lie ahead – a relationship based on a deep free trade agreement. Our country produces some of the world’s most successful exports, and the opportunity to bring these to the rest of the world should make us all excited about the future. It is this excitement, optimism and ambition which I believe will come to define this government.

For too long now, we have been told Britain isn’t big or important enough to survive outside the EU – that we have to accept a deal that reflects our reduced circumstances. I say that’s rubbish. With the right policies in place, we can be the most competitive, free-thinking, prosperous nation on Earth exporting to the world and leading in new developments like AI. To do that, we’ll give the brilliant next generation of entrepreneurs the tools they need to succeed. Since 2015, there has been a staggering 85 per cent rise in the number of businesses set up by 18 to 24 year olds – twice the level set up by the same age group in France and Germany. We’ll help them flourish by championing enterprise, cutting taxes and making regulation flexible and responsive to their needs.

As we do that, we’ll level up and unite all parts of the UK with great transport links, fibre broadband in every home and proper school funding, so everyone shares in our country’s success.

2019 has been the year of brewing economic and political revolution. 2020 will be the year when a revitalised Conservative government turbo charges the economy, boosts prospects for people across the country, and catapults Britain back to the forefront of the world stage.



Rt Hon Elizabeth Truss
Secretary of State for International Development