Category: Press Release

More than one in five vans (20.8%) across FleetCheck’s user base don’t meet the requirements of London’s Ultra Low Emissions Zone (ULEZ), the company is reporting.

Peter Golding, managing director at the fleet management software specialist, said the statistic provided an indication of how many businesses could potentially be affected by the extension of the ULEZ at the end of August.

He explained: “To be clear, this is a figure that shows the proportion of non-compliant vans across our entire national user base, not just within the ULEZ, but it does indicate that a substantial minority of fleets are still operating pre-Euro 6 vans – and there is no real reason to believe this is not happening within the ULEZ zone in the same way as elsewhere.

“This is especially the case given the widespread extensions in replacement cycles that have been taking place since the pandemic. We now have many fleets that are operating at least a few vans that are 7-8 years old and will therefore probably be non-compliant.

“Of course, it is likely that there are many more vans of this type being run by sole traders and microbusinesses that fall outside of the mainstream fleet industry and would not be included in our data, so the proportion of non-compliant vans that will be affected by the ULEZ extension could be quite a lot higher than one in five.”

Peter said that the most obvious strategy for tackling the extended ULEZ was for companies that operate in the zone to swap compliant and non-compliant vehicles to ensure that the right vans are in the right locations.

“We know of several fleets that have done this but it is an option that is only open to those with wide geographical coverage and relatively large fleets. For all others, the only solutions are to pay the ULEZ charge or buy a compliant vehicle and neither of those options are cheap.

“We are highly sympathetic with the aims of the ULEZ – everyone deserves to live in a place where the air is safe to breathe – but its introduction is potentially hitting businesses just when they are under quite a lot of economic pressure, and when both new and compliant used vans are in short supply. It’s unfortunate timing.”

Fleets need to do more to deter criminals employing high-tech methods who are behind a 25% year-on-year increase* in car thefts, says FleetCheck.

Peter Golding, managing director at the fleet management software company, pointed out that awareness of how to stop methods such as relay thefts and key blocking remained patchy among vehicle operators.

“Feedback from our client base indicates that fleets often know thefts are an increasing problem but while some are being very proactive, others are poorly informed about the methods that thieves are now using and how to deter them.

“We’d like to see much more of an acknowledgment that this is becoming a genuine issue and agreement on best practise that can help to stop company cars and vans being stolen.”

Peter added that many of the most effective methods of protection against high-tech car theft were relatively simply and inexpensive.

“In the case of relay theft, it can be an issue of putting the key into ‘sleep’ mode, which some models allow, or placing it inside a Faraday wallet to disrupt the signal, something that costs just a few pounds.

“Interestingly, some security experts recommend meeting the high-tech approach of the thieves with pretty low-tech responses. If someone is creeping onto your drive armed with a laptop, then an old-fashioned steering lock stands a good chance of deterring them.”

He added that fleets both needed to brief drivers about the potential for high-tech theft and explain what is needed from them in terms of protection.

“This is an area of fleet management where driver buy-in is crucial but can be difficult to generate. For company car and van drivers, a car theft can be seen as an inconvenience rather than a major worry and employers need to make it clear that they expect certain measures to be met, such as where vehicles are parked and keys kept, for example.”

*Office for National Statistics, May 2023

The company questioned customers who have recently started using its products and the leading reason, mentioned by 30%, were difficulties using spreadsheets alone to look after key aspects of their company car and van activities.

Peter Golding, managing director, said: “Many, many businesses use spreadsheets to manage their fleet but they find that, if they have anything more than a handful of vehicles, the limitations become very obvious, very quickly.

“In our experience, the more that fleets ask spreadsheets to do, the more their frustration increases and a kind of spreadsheet fatigue sets in. The advantages of switching to specialist fleet management software become very apparent.”

Other top reasons mentioned in the research included the desire to digitise vehicle checks and defect reporting (29%) and concerns about missing key dates (16%).

Peter added: “Compliance is becoming an ever more important driver for users of fleet management software and again, something that is really very difficult to achieve with a paper or spreadsheet-driven approach.”

FleetCheck is currently enjoying record levels of business, having signed up 39 new customers in May alone, bringing the total for 2023 to 154.

“We’ve been investing heavily in our product range over the last year or so, with the latest version of our core fleet management software powered by a new technology stack launched at Commercial Vehicle Show in April There is a definite sense of momentum around the company and it’s an exciting moment.”

Any forthcoming “step change” advances in battery technology would represent a double-edged sword for fleets, FleetCheck is warning.

Peter Golding, managing director at the fleet software specialist, said recent press reports suggested that major advances could potentially be on the way and their effects could be predictable.

‘We’ve reached a stage in the last few years where any improvements in the range, charging speed and durability of electric vehicles (EVs) are generally expected to be incremental, with questions of core battery technology largely settled.

“However, it looks as though step changes might still be possible, with recent announcements on Toyota’s solid state designs, CATL talking about doubling energy density, Mullen Automotive improving battery management and more.

“On one hand, these are good news. Anything that makes EVs more practical is to be welcomed, especially in the van and commercial vehicle sector where existing technology is presenting fleets with tricky issues but it also creates problems.”

Chief among these, Peter explained was the possibility that a step change in battery technology could cause substantial harm to residual values (RVs) on existing EVs.

“A manufacturer who has access to better batteries is going to want to make them available as soon as possible in order to gain a competitive market advantage but this is going to affect EVs already in use. It won’t render them obsolete but it could make them much less attractive, especially if the new tech is not just more effective but cheaper, which is conceivable.

“It’s not impossible that a business could buy 100 EVs today and then, a couple of years later, see their value dramatically affected. RVs are unlikely to collapse completely – these will still be practical, attractive vehicles for some used buyers – but there could be major reductions.

“This would have a substantial impact on leasing companies too, of course, who are already being very conservative in their EV future forecasts thanks to the quite dramatic drop in values seen over the last year. Buying EVs and bearing the RV risk remains a risky business.

“It seems to us that there is no way around this situation. EVs are still a relatively new technology in a mass market sense and step changes in technology are very much a possibility but any advances will probably be a double edged sword and fleets need to factor that into their decision making.”

Some fleets are starting to take service, maintenance and repair (SMR) management back in-house, reports FleetCheck, in a reversal of a trend towards outsourcing that has been underway for decades.

Peter Golding, managing director at the fleet software specialist, explained that the move was being prompted both by both electrification and the general ageing of the fleet vehicle parc that was currently underway.

He said: “There’s a growing perception among fleets that what they are being charged for SMR by third parties, especially leasing company maintenance packages, is overinflated and outweighs any expertise that third parties bring when it comes to SMR buying.

“To an extent, it’s easy to see why this is happening. Some SMR providers who have limited experience of maintaining electric vehicles, and older cars and vans, have perhaps been pricing well on the side of caution, and some fleets have noticed where this is the case.

“As a result, we have seen a growing interest in using our software to bring SMR back in-house and fleets are relearning skills in this area that have been outsourced to third parties for decades, such as identifying the best suppliers and interrogating workshop bills.”

Peter said that the solutions adopted by fleets managing their own SMR depended very much on factors such as the vehicles they were operating, their geographical footprint, and the complexity of their maintenance needs.

“If you operate a relatively straightforward fleet on a more local basis, then it can simply be an issue of creating relationships with a handful of nearby workshops, especially if you use fleet software to provide a managerial infrastructure.

“Conversely, if you have many different types of cars and vans, and your vehicles are used on a national basis, then there are extensive networks of SMR providers that you can plug into, and we have existing arrangements in place that our users can easily adopt.

“Certainly, some of the fleets involved are making considerable savings compared to the third party costs they were paying previously.”

Importing data from electric vehicle (EV) chargers is often proving difficult, FleetCheck is reporting, leaving gaps in fleet operational and financial records.

The company says the issue applies to home and public chargers, and both where information is recorded manually by the charger user or automatically using an application programming interface (API).

Peter Golding, managing director at the fleet software specialist, said: “For fleets, who are now often operating significant numbers of EVs, getting hold of charger data is an increasingly important part of their cost and operational analysis, especially when it comes to reimbursing drivers for power used to charge their cars and vans at home and on the road.

“For this reason, issues affecting data from chargers are quite a serious problem that we are experiencing across our user base and, indeed, among our own vehicles. This concern is much more common than you might expect and we are certainly seeing more gaps than in petrol and diesel fuel data.”

Matters encountered include interruptions in data that may last anywhere from a few days to several weeks, as well as APIs that suddenly stop working.

“In real-world terms, these are probably just part of a whole host of electrification teething issues affecting fleets that will eventually be resolved but they do add an unwelcome layer of complication to day-to-day fleet management at present, especially when it comes to reimbursing drivers for their power use.

“We’d like to see the problem resolved, especially as charging networks are set to rapidly expand over the coming years, and it is certainly an area where charging providers and their data partners provide should arguably be providing a more consistent service.”

A new feature added to FleetCheck’s Vehicle Inspection App is designed to help stop commercial vehicle drivers being involved in bridge strikes.

Simply, it tells drivers they are currently using a high vehicle whenever they carry out a scheduled vehicle inspection, providing a regular reminder.

Peter Golding, managing director at the fleet software specialist, said: “Bridge strikes are not that common but are hugely expensive and disruptive when they do happen, so avoiding them is always a priority for fleets. Historically, they have been seen as a problem for HGVs but, as recent reporting from Logistics UK has pointed out, they also affect high roof vans.

“Providing a simple reminder within the app both keeps the whole issue of bridge strikes front-of-mind for the driver and tells those who regularly swap from vehicle to vehicle the height of the HGV or van they are currently driving.”

FleetCheck’s Vehicle Inspection App was introduced in April 2017 and creates the means for drivers and fleet managers to schedule, carry out, confirm, follow-up and audit all kinds of legally required inspections from daily walkarounds to weekly or monthly checks.

It has been continually enhanced, notably to incorporate a range of advanced features such as support for languages commonly used among UK fleet drivers; a fit-to-drive declaration; an improved trailer inspection routine; an option for employees to view documentation and policies; and enhanced damage, defect and collision reporting.

Peter said: “The app has been one of our major success stories of the last few years and has now been used to carry out more than NUMBER million checks by fleets.

“There has been a general increase in awareness of the importance of this kind of digital safety check product in the market among commercial vehicle fleets, displacing previous paper-based systems, and we have been well-placed to take advantage of the trend.”

The government’s newly announced EV Mandate could create substantial operational issues for fleets in the run-up to the 2030 electrification deadline, says FleetCheck.

The policy document, which is now out for consultation, suggests that a sliding scale of EV production gets underway in 2024 with 22% of car sales and 10% of van sales being zero-emissions, rising to 80% and 70% respectively in 2030.

Peter Golding, managing director at the fleet software specialist, said: “The underlying issue with the EV Mandate is that it puts supply before demand at a time when vehicle production remains highly erratic and the rate of adoption of electric cars and vans is volatile.

“The government is proposing to effectively force fleets to adapt their operations according to the speed at which they think electrification should be happening. This will not necessarily fit with the strategies that fleets have already created for the adoption of EVs over the next few years and will force many into re-evaluating their plans.

“The fact is that many fleets have substantial operational issues to overcome on the road to electrification, especially when it comes to vans, and artificially limiting supply of ICE vehicles while pushing EV production higher won’t do anything to solve these.”

The ease with which the EV Mandate could be applied cars and vans was likely to be quite different, he added.

“Meeting car targets is almost certainly not a problem. Fleets alone could probably account for 22% of all electric car sales next year without retail buyers. However, vans remain an issue. The jury is out when it comes to whether demand means one in 10 van sales is electric in 2024. We could easily tip into electric van oversupply.”

Peter said that the government needed to step up its incentives and infrastructure investment when it came to EVs in order to ensure supply and demand mismatches were avoided.

“Significant efforts will be needed to persuade fleets into electric vans at the kind of pace that is being envisaged. That means not just further upfront grants and other measures in both the new and used sector but massive resources being put into kerbside charging, which is essentially non-existent in large areas of the country at the moment. Some more money has been made available but there is a general sense that charging remains a very real problem.

“Of course, the EV Mandate is out for consultation and could well be changed but, as it stands, it presents fleets with many more questions than answers.”

A range of new tools giving fleets the means to measure the efficiency of electric vehicles (EVs) has been added by FleetCheck to its fleet management software.

They allow businesses to record charging information and measure it against the real-world performance of electric cars and vans, generating reports ranging from individual vehicles to the entire fleet.

Peter Golding, managing director at FleetCheck, said: “The increase in the cost of charging seen over the last year or so, combined with a growing realisation that efficiency varies quite widely from one EV model to another, are behind these changes.

“Fleets want to know more about which charging options and which vehicles are costing them the most money so they can take action. For almost all operators, it’s a relatively new area, and they are looking for reliable information and clear reporting.

“The new tools we have introduced provide this, enabling data to be imported directly from external sources or entered manually so that the reporting on each vehicle provides an accurate picture of fuel costs and use.”

Peter said that the remedial measures undertaken by fleets where EV fuel costs were felt to be excessive were essentially the same as for petrol or diesel vehicles.

“The variables that need to be investigated are almost identical – is the fuel being acquired at the best cost? Is there a fault with the vehicle? Is the driver too aggressive on the road?

“In our view, fleets are very much starting to think about EV charging in exactly the same way as fuelling internal combustion engined vehicles, and the solutions they are applying – from specifying where fuel can be bought to encouraging better driving – are much the same.”

e-Fuels could play a “limited role” for fleets in the future, says FleetCheck, especially in applications where electric vehicles might remain impractical.

The fuels – designed to be carbon neutral – have hit the headlines over the last week after several EU countries asked them to be included in future car production legislation, circumventing a 2035 internal combustion engine (ICE) ban.

Peter Golding, managing director at FleetCheck, said: “There is talk of e-Fuels being made by companies such as Porsche and Ferrari bringing about a stay of execution for the internal combustion engine and this might be true – but only if you own a Porsche or a Ferrari.

“The bottom line is that these fuels are very expensive and likely to remain so, while their claims to be carbon neutral are in some respects, highly questionable. They do not appears to be a serious mass market answer to the future of either CO2 emission reduction or clean air initiatives.”

However, e-fuels might have a role to play in fleet applications where electrification looks as though it could prove problematic, at least into the medium term.

“We’ve recently been highlighting discussions that we’ve been having with fleets, looking at areas where replacing ICE vehicles with electric might just not be practical. Examples include 4x4s used by power companies in remote areas and ambulances, both of which might be needed around-the-clock in an emergency and do not recharge quickly.

“The fact is that these vehicles make up only a tiny part of the car parc and it is here that e-fuels might have a limited role to play. The resources required to electrify these 4x4s, ambulances and others would be considerable and e-fuels might make more sense, especially if the cost can be brought down from current levels.

“Hopefully, we’ll see battery technology move to a point in the coming decades where electrification of these vehicles is practical but, until then, there will need to be stop-gap solutions. While e-fuels are far from perfect, they look to be a better answer in limited applications than current petrol and diesel options.

“It’s interesting that the recent House of Commons Transport Committee report highlighted the need for pragmatic solutions to low carbon travel and highlighted e-fuels as an option that could well fall into that category.”