Slowdown starts affecting world's luxury carmakers |
The US economic slowdown has hit the world's two largest luxury carmakers.
Daimler and BMW reported falling profits in the first quarter and both had to take charges because of lower selling prices for used cars in the US.
Daimler did this only for its former Chrysler subsidiary - in which it still holds a 20% stake - and not for its flagship Mercedes brand.
|
1 million cars still being illegally scrapped every year |
More than a million scrap cars a year could be reaching landfill complete with harmful oils, tyres and with airbags intact. That's despite End of Life Vehicle Regulations which came in to force in 2003, requiring cars to be properly de-polluted and recycled at licensed Authorised Treatment Facilities. |
Fuel costs are Fleet Managers biggest concern |
Rapidly rising fuel prices are becoming the over-riding concern for fleet managers. With petrol prices predicted to hit £1.50 a litre by September and diesel expected to hit that level even sooner, the cost of fuel is now having a massive effect on fleet policy decisions and company car selection. Despite this, the use of fuel cards, one of the most useful tools in controlling fuel costs, is falling. In a new report , 97% of fleet decision-makers mentioned fuel prices, up 11.2% year-on-year, as the factor likely to affect their fleet policy in the next 12 months. According to the quarterly Company Car Trends report from GE Capital Solutions, Fleet Services, the soaring price of fuel is now the single most rapidly growing factor influencing the number of business miles drivers will cover in the next 12 months. However, despite these levels of concern, the number one management tool available to company car operators for controlling fuel use is falling in popularity. Just 41.2% of respondents said they used dedicated fuel cards – down a significant 9.6% year on year. Rich Green, managing director at GE Capital Solutions, Fleet Services, said: “It is difficult to reconcile these trends. “It is fair to say that they have now reached a level where many employers believe that fuel costs need to be managed on a day-to-day basis through some control over vehicle use. “However, the most effective tool for bringing increased levels of control over fuel spend and fuel use is falling out of use in the market at a fairly dramatic rate. Fuel cards bring a number of positive advantages.” |
Jail threat for drivers who flout the mobile phone laws |
Using a hand held mobile phone or fiddling with your satellite navigation system while driving could land you in jail for up to two years. Since February it has been illegal to drive while using a phone: the punishment, three penalty points and a £60 fine was met with widespread approval from the motoring public. However, concern about fatalities caused by drivers using hand held devices is thought to be one of the key factors behind dramatically tougher measures promised by the Crown Prosecution Service. Supporters say that there is a need for tougher measures as many drivers still openly flout the law. Prosecutions will be brought whenever it is judged that using a mobile phone or other equipment caused a danger, such as forcing a car to swerve or causing a distracted motorist to jump a red light. Currently such a scenario results in a £2,500 fine or a community order. A motorist who kills while using a mobile phone or other device at the wheel will be charged with causing death by dangerous driving and jailed for 14 years. The CPR also implies that a charge of manslaughter could be brought against drivers who kill. |
Increases in morning after drink driving offences |
As the festive season approaches, fleet drivers could be driving over the limit without realising and late licensing hours may be partly to blame. Drivers who wouldn’t dream of getting behind the wheel while under the influence may drive to work after drinking until the early hours. One in five of those convicted of drink driving are on the way to or at work, often in company vehicles. Recent changes in law and procedures have allowed police to carry out field impairment tests to determine whether there is impairment through drug use. The same tests could also impact drink driving. |
Changes to MID |
Fleets are currently obligated to update the Motor Insurance Database (MID) with any Policy changes, including the addition of new vehicles within 14 days. New regulations come into effect January 2008 which will reduce this to 7 days. Theoretically this will allow the authorities to detect uninsured motorists. The police are using automatic number plate recognition technology which instantly cross checks registration numbers against the MID. Police will then stop and confiscate the vehicle unless the driver can prove that the vehicle is insured. |
New Transport Policy |
Transport minister Ruth Kelly has announced an environmentally friendly road building strategy which will be implemented over the next twelve years. The plan includes forcing the pace of technological improvements and addressing behavioral change which the government expects will be the keys to achieving at least a 60% reduction of co2 emissions by 2050. Motorway expansion will continue to accommodate the growing number of cleaner cars manufacturers will be forced to develop. Urban areas will benefit from heavy investment which will improve public transport and local road improvements, which will benefit both freight and passengers. £20 Billion could be allocated to as yet unnamed transport projects and Road pricing remains firmly on the agendas is a strong emphasis on improving the national road network, especially in cities. A transport Green Paper and a formal consultation will follow in spring 2008. |
Rural road deaths warning from DfT |
The Department for Transport is warning drivers to take extra care when driving on rural roads. An awareness campaign will be broadcast on radio stations throught the country this month. 325 car users were killed on rural roads last year while speeding or driving in an unsafe manner throughout. The Dft wants to remind drivers that the same level of judgment must be used when driving on rural roads as built up areas. Figures show drivers are three times more likely to die on rural roads than urban routes. Factors such as fewer vehicles on the road and a near total lack of pedestrians can tempt drivers to go faster and therefore when sudden hazards appear – such as sharp bends or restricted visibility then reaction time is limited. |
Hydrogen Filling Station Closes |
| The Uks only Hydrogen filling station has closed. The £4.5 million facility opened three years ago. The station was built in Essex to fuel London’s eco friendly busses. Their three year trial period ended earlier this year – leaving the station without any customers. |
Foreign Driver Crashes Soar |
The number of crashes involving foreign drivers is rising at an alarming level, according to a new report. Data from the Motor Insurers Bureau shows that insurance claims involving foreign drivers have grown every year from 2001 to 2006. Taking into account the cost of these crashes and potential congestion caused by the increasing number of foreign vehicles on British roads, the Centre for Economics and Business Research estimates that the cost to the economy will total £795 million in 2008. The number of drivers from other EU countries who are now resident in the UK has risen from 534,000 in 2001 to 804,000 in 2007. With 88% of that increase coming from 2004 onwards, the report’s authors attribute that increase to the accession of the 10 countries joining the EU that year and the further two that joined in 2007. In addition, the number of foreign HGVs using British roads has increased by a third. Now, one in seven HGVs on UK roads is from another EU country. In parallel with this increase, the number of crashes involving foreign drivers or foreign-registered vehicles has also risen significantly. “One particular problem we as an insurance industry, and therefore motorists, suffer is the ability to resolve a claim quickly when it involves a vehicle from outside the UK,” said John O’Roarke, managing director of insurer LV=, who commissioned the report. “We believe the tightening of driving standards across the EU should now be a Government priority,” said Mr O’Roarke. Drivers from Poland top the crash table, with 16.6% of all claims. |
