A wide range of economic factors will continue to have the greatest bearing on the company car sector in 2013, according to a host of fleet industry dignitaries.
Almost all of those executives BusinessCar spoke to used the word ‘challenge’ or ‘challenging’ in relation to the economic outlook for those involved in running fleets in the UK, and the majority spoke of the way either European or global financial factors would impact the UK economy.
At a broad economic level some predicted the global economy would dampen the UK’s possibility of growth.
This was summed up by Kwik-Fit’s fleet director Peter Lambert: “My biggest worry is financial instability uncertainty and indecision regarding the implementation of a long-term fix for the European economy. As politicians and economists across Europe continue to talk to deliver solutions to improve trading conditions, business and consumer confidence will remain depressed.
“As a consequence, the economies of both the UK and Europe will continue to struggle to turn the corner and grow.”
At the vehicle sales level this should mean continued strong offers on new cars in the UK as well as manufacturers working hard to develop ever-lower-CO2 cars.
“If there is anything to be positive about, it is that manufacturers continue to deliver against a tough backdrop,” said Mike Waters, BusinessCar blogger and Arval’s senior insight & consultancy manager.
“Their new models are more efficient with lower emissions and better mpg performance.”
He continued: “Looking ahead to next year, it is likely to be more of the same as conditions remain tough but manufacturers continue to come up trumps giving the most savvy drivers the ability to manage their costs and benefit from some impressive advances in technology.”
At a UK level, taxation featured highly among the responses to the outlook for 2013.
ACFO chairman Julie Jenner said she feared fleet drivers will be treated as a “cash cow” by Government to help plug the hole in public finances.
“In recent years the Government has realigned all motoring-related taxes along vehicle emission lines. Employers have responded by choosing low-emission vehicles – just as the Government hoped.
“However, the Government has seen, as a result, its tax-take shrink. It should not then raise vehicle-related taxes and penalise those (employers and employees) who have acted as requested in making fleet decisions,” she said.
The BVRLA also voiced concerns about the way low-CO2 vehicles will be taxed.
“The biggest opportunity is for the Government to listen to the evidence from all its stakeholders, and reverse the short-sighted tax measures it announced in the 2012 Budget,” said chief executive John Lewis.
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