‘Green Motoring’ Archive

Fleet News 09/03/11

Despite rising fuel prices, the mass adoption of electric vehicles (EVs) is still some distance away, is the finding of a new study by Deloitte, the business advisory firm.

According to the survey of 4,760 European consumers, only 16% see themselves as potential first movers to buy or lease an electric vehicle, while 53% say they might be willing to consider it, and 31 percent say they are not likely to consider purchasing or leasing an EV.

David Raistrick, automotive partner and head of manufacturing at Deloitte UK, commented: “There is no doubt that electric vehicles are the future of the automotive industry. However, while interest in electric vehicles is growing, with 69% of respondents willing to consider an EV today, current market offerings generally fall far short of consumers’ expectations for driving range, charging time, and purchase price.

More than 80% of European consumers surveyed said that convenience to charge, range, and the cost to charge were all key considerations when buying or leasing an EV.

David Raistrick added: “Range, price and charging concerns need to be addressed. Our research shows that there are specific design targets that manufacturers must reach in order to entice car buyers.

“Three-quarters of European consumers surveyed (74%) said that before they would consider purchasing an EV, they would expect it to be able to travel 300 miles between charges – much higher than what is currently available – and 67% said the battery must take no longer than two hours to charge.

“In the UK, however, consumers consider the ability to travel at least 200 miles between charges to be the tipping point, especially in London and the South East.”

“The automotive industry continues to invest in high end R&D to devise the cutting edge technology required for electric vehicles. It is clear that this innovation is a priority for car manufacturers. I believe there is potential for green vehicles to represent 10% of the new car market within 10 years, although the road to get there will be bumpy. Manufacturers face many challenges, both in terms of actual design elements, as well as changing the mindset of consumers toward electric vehicles.”

The majority (57%) of respondents who say they may be willing to consider an Electric vehicle expect to pay the same or less for an EV than they do for a regular car.

Only 24% of the same group say they would be willing to pay a premium. Currently, hybrids and battery electric vehicles represent a tiny fraction of total cars on the road.

The adoption of all forms of green vehicles will be significantly influenced by government policies.

David Raistrick added: “For mass adoption, manufacturers will need to meet the challenge of pricing electric vehicles in line with consumer expectations, while still maximising their margins. Consumers are not likely to want to pay a high price premium for EVs. This means that incentives such as tax reductions and exemptions will be very important to the purchase decision. Just like the Government supported the highly successful car scrappage scheme, they should now be turning their attention to electric vehicles.

“However, a bright note for the UK is that it appears from our research that UK consumers are more willing to pay a premium for electric vehicles than their counterparts in other European countries.”

8 Electric Cars delivered to the Aran Islands.

On Friday (14th Jan) the Aran Islands began their participation in what is believed to be Europe’s first practical study on how integrating renewable energy, electric transport, storage heating and other environmental initiatives can lead to a sustainable, cost effective and money saving solution for all our energy needs.

The project was conceived by the Sustainable Energy Authority of Ireland and developed in conjunction with Merrion Fleet Management, Electric Vehicle suppliers Green Machines, and Smart Metering specialists Klockner Moeller Ireland Ltd. The electric Mega e-City vehicles are an integral part of the Study that will run over the next three years and eight of these unique cars were delivered to the Aran Islands this week.

The eight vehicles will be managed and serviced by Merrion Fleet Management and the Island Co-Ops.

David Wilkinson, Sales Director, Merrion Fleet Management Stated ” As the first leasing company in Ireland to offer electric powered cars as part of a fleet offering we are excited to be part of this unique and worth while project. Our role is to ensure that the cars are completely managed for the duration of the study which includes all the maintenance and servicing of the vehicles. We know that this project will support our belief that electric vehicles can offer a realistic alternative to petrol or diesel vehicles for many companies and individuals particularly in an urban environment.”

Robert Nolan, Managing Director of Green Machines stated, “Having spent some time working on this project it is fantastic to see the delivery of the eight electric vehicles to the islands. The Mega e-City cars are ideal as they are built to perform and maintain their high quality appearance in the harshest of environments. I don’t think that the French manufacturer could have asked for a better proving ground than the Aran Islands.”

As part of the study the Mega e-Citys will be used as everyday transport by the participants. Their charging patterns and usage of electricity will be monitored and managed through a smart metering system. It is envisaged that when the vehicles are charging, primarily at night, that they will be using energy from renewable sources. The excess power that is stored in the batteries of the vehicles would otherwise be wasted.

Robert Nolan, Added, “The Islanders today are proving that there are realistic and viable alternatives to the traditional combustion engines for local transport needs. With Zero emissions and no noise, the Mega e-City is an ideal vehicle not only for this Island community but it is also a realistic alternative to petrol combustion engines for most rural and urban centres throughout the country. ”

Proponents of the project pointed out at the launch that you can view the Aran Islands as been a micro version of our Island of Ireland. The belief is that this study and all its elements will very quickly show that the use of electric transport throughout the country is not only a realistic prospect but vital in our goal of reducing our dependence on imported fossil fuels.”

Nolan continued “I believe the long-term aim of the islanders is to make their home the first region of the country that is totally green in every sense of the word. Through the adoption of a smart home energy management system and the use of Electric Vehicle batteries as a source of grid energy storage I think that they will not only achieve their goal but will prove to the rest of the country that sustainability is a realistic prospect for the whole country.”

It is estimated that the electricity cost of charging the vehicle on the Islands could be as low as 60 Euro per year. Normal Urban running costs would be slightly higher. It would be approximately 200 Euro to run the car for a year if fully charged every day which is on average about 70% cheaper than the fuel costs of similarly sized Diesel cars. The Mega e-City has no exhaust and zero emissions when driven. Even if you take account of the CO2 produced in supplying the electricity to the mains socket to charge the car, the Mega e-City still has lower emissions than any combustion engine. With renewable energy and carbon offsetting this would be zero in the near future. Motorists can expect to save up to 80% in fuel costs.

It would appear that the UK Government has changed its mind regarding its plans to omit fleets from a multi-million pound subsidy package for electric cars.

In April of this year, when the Department for Transport announced the £230 million initiative, they reportedly told Fleet News that it would relate to private motorists only.

The Department now however says that there are 2 options available;

The first option is that rental and leasing companies are allocated a part of the subsidy to assist in reducing the cost of supplying electric vehicles.

The second is that a point-of-sale subsidy will be made available to both fleets and private buyers through the dealerships.

The aim of the initiative is to make the leasing cost of an electric vehicle the same as the diesel equivalent, even though the electric vehicle has a higher upfront cost.

The vehicles that will be eligible must have:

• European type approval for use as a car (M1).
• Receive some or all of their power from an external electricity source.
• Tailpipe emissions of 0g/km CO2 for an EV or 75g/km CO2 or less for a PHEV (range-extended electric vehicles which use petrol/diesel/ biofuel-powered generators will be counted as PHEV).
• Electric drive range in excess of 70 miles for an EV, 10 miles for a PHEV.
• Have a maximum speed in excess of 60mph.
• Rated as at least four stars in EuroNCAP crash tests.
• Warranty for electric powertrain (including the battery) of at least seven years or 100,000 miles.

Key Issues

The rising cost of fuel has become an increasingly worry for both fleet managers and drivers. Fuel prices are at an all time high, and are expected to rise further.

Merrion Fleet Managements Services have put some tips together for your drivers on the best way forward to reduce and keep their fuel costs to a minimum.

Please note, a fuel-efficient vehicle is a greener environmentally-friendly one.
Merrion Fleet Management top ten tips-

1. Locate Cheaper Fuel – Visit www.pumps.ie to source the cheapest fuel in you location.
The website lists the most up to date prices numerous Irish forecourts. Simply put in your address and find the cheapest unleaded, diesel, LPG and other fuels nearest to your area.

2. Vehicle Maintenance – Ensure you service your vehicle in conjunction with the vehicle handbook. A regularly serviced car will prove to be more efficient on fuel consumption.  The vehicle handbook will recommend specified fuel and oil for best efficiencies.

3. Keep your engine revs in check – Don’t over accelerate, this burns more fuel. Slowly increase your speed and move up through the gears. A rule of thumb is to try to change up a gear before you hit 2,500rpm (petrol) and 2,000rpm (diesel).

4. Adhere to the speed limits- Speed increases your fuel consumption. Each vehicle differs but typically the most efficient speeds on the majority of cars fall in between the 55 – 65mph.

5. Anticipate road conditions to drive more efficiently- Drive smoothly working your way through the gears. Eliminate as much as possible sharp acceleration and abrupt breaking. Switch off the engine if you’re at a standstill for example when stuck in stationary traffic. All of the above reduces accident rates and saves fuel.

6. Remove Accessories- The lighter the car, the less fuel consumed. Remove roof racks, roof boxes, and bike carriers, when not in use. These items add massive wind resistance making the engine work harder. This will significantly affect your vehicles aerodynamics which in turn assists on fuel efficiencies.

7. Avoid the unnecessary trips- A cold engine uses almost twice as much fuel and a catalytic converter may take five miles to become effective.  So leaving the car behind when you can walk or cycle will not only benefit your health and wallet as well as the environment. Carsharing is something to consider it saves money and congestion.

8. Check your tyre pressures frequently- Most car tyre pressures are stated on the inside fuel flap or listed in your vehicle handbook. Ensure your tyres are not underinflated as this is not only dangerous but increase wear and tear on the vehicle as well as increasing fuel consumption.

9. Turn off the air con- Both air conditioning and climate control may increase fuel consumption. If you don’t need it – turn it off.

10. Journey Planning- If you have a sat nav system use it to plan your route. If you don’t have a sat nav system, look up the internet for planning assistance. Explore the routes you use frequently and assess if there are less congested routes. It might be a longer trip in miles however if it reduces the stop/start motoring it could be more cost effective.�

A retro-fit hybrid conversion that has the capacity to save 61% on fuel and lower exhaust emissions by 39% has been unveiled. This new technology was developed in the UK by MIRA engineers.

This new conversion has a removable battery pack that allows existing vehicles to be upgraded to hybrid technology. This “plug-in hybrid” technology allows the lithium ion phosphate batteries to be charged by the engine running or by plugging it into the mains. The pack only weighs approx 11kgs so it can be moved from the vehicle for charging. “Despite advances in powertrain technology you can still obtain electricity from your domestic provider far cheaper and greener than you can produce it via and automotive combustion engine. This means plug-in hybrids make sense”, said Derek Charters, MIRA’s advance powertrain manager.

He went on to say “with this project we have removed the primary limitation of the plug-in hybrid concept by allowing the battery pack to come to the mains, rather than having to park it next to the socket.

At the moment, this technology is to be only sold to carmakers for use on new models.

Diesel is now averaging €1.246 per litre, 4 cent more expensive than petrol. Petrol has risen by .03% since March, while diesel has risen by 3%. Conor Faughnan off AA Ireland is concerned by “what appears to be a disproportionate rise in diesel prices”. Faughnan believes this latest increase in diesel prices are causing concerns for hauliers, business and the “rapidly growing number of private motorists who are choosing diesel because the new tax system favours the cleaner fuel”.

However diesel’s popularity makes perfect business sense. Diesel cars have improved enormously. The residual vales are now much better, companies are getting VAT rebates of 21% on the diesel they use in their cars, the fuel consumption itself is much better than that of petrol and the people driving these cars are happier that the price reductions for the diesel cars that are coming will reduce their benefit-in-kind exposure.

On whole life cost analysis, the benefits are very significant. Companies are reducing costs and it also is getting a greener profile because of the lower CO2 emission.

An independent consultants report to the European Commission on a long term oil policy has recommended that Brussels increasingly favour diesel over petrol use.

It stated “CO2 emissions from the latest petrol engines remain higher than those -from their diesel-powered equivalents. If the Commission is to maintain its current position regarding the lowering of CO2 emissions, it should look to encourage as large a consumer uptake of diesels as possible”.

The report goes on to recommend that “allowing tax breaks either through lowering the purchase price of diesel vehicles or adopting an EU-wide policy of lower diesel fuel duty can help further the acceptance of diesels”.

1)      Promote more Environmentally Friendly Vehicles:

By promoting the use of low C02 emitting vehicles in your fleet and car policy, you can help reduce the number of high polluting vehicles on our roads. It also helps reduce the amount of BIK your employees pay.
 

2)      Maintenance:

It is vitally important that all company vehicles are regularly and properly maintained. Vehicles that are not, are not only a potential danger but they also give rise to higher fuel consumption leading to great emissions
 

3)      Business Mileage:

By recording & analysis this data it allows you to identify possible areas where you can reduce business mileage and promote more efficient business travel.
 

4)      Fuel Consumption:

By analysing this data you can compare and contrast the overall cost of business travel per driver. This can help to identify areas for further action to ensure efficiency and reduce fuel costing.
 

5)      Driver Training:

By providing driver training courses for you r driver, you can help them overcome so habits that may be contributing to higher fuel consumption. This training can help focus your drivers minds on safer, more efficient & greener driving.
 

6)      Speed:

Speed is a huge problem on Irish Roads and it also is a large contributor to greater emissions. At 110km/h a car uses up to 25% more fuel then it would cruising at 90km/h.
7)      Planning:

If your drivers are encouraged to use the most direct route to a destination it will help greatly to reduce travel time. This can be achieved by enabling staff to access specific websites that offer street maps and route planners.
 

8)      Technology:

Availing of technologies such as satellite navigation and telematics will help avoid traffic congestion and optimise journey routes and times.
 

9)      Tyres:

By ensuring your driver maintain their tyres properly, it will not only reduce fuel consumption, it will also extend the tyre life and improve handling & safety.
 

10)   Tele-Conferencing:

By promoting the use of tele-conferencing you can offer a greater and more eco friendly alternative to business travel, be it national or international.

We are proud to announce a new partnership with The Tree Council of Ireland. From now on, Merrion Fleet will be making an annual contribution towards the planting of trees in Ireland. The size of the contribution and the number of trees planted will be based on the number of new vehicles that we supply to our customers. So now Merrion customers can feel good because their vehicle fleet will in future be making a positive contribution to the environment.

This partnership is very important to us as we strongly believe in Carbon Offsetting as a way to ‘balance out’ some of the impact that the vehicles we supply makes on the environment.

The Tree Council of Ireland is a voluntary non-governmental organisation which was formed in 1985 to promote the planting, care and conservation of trees in urban and rural areas. It aims to foster a tree and wood culture among Irish people.