Fleets should start preparing for the combined effect of tax changes and Euro6 coming in 2015 by reviewing policies and replacement cycles with suppliers, according to Alphabet sales and marketing director Paul Hollick,
“2015 is the day after tomorrow in fleet terms,” said Hollick. “Fleets that usually run diesels for four years should consider moving to a shorter cycle for more flexibility, as Euro6 will mainly affect diesel operating costs.”
He added that the Euro6 standards, which put more focus on NOx and particulates, could have a “potentially profound impact on fleet choices”, as it will be increasingly difficult for carmakers to carry on reducing CO2.
Hollick continued: “Euro6 will apply to all cars sold from 2015 onwards, meaning that will coincide with the step-change in the UK’s CO2 company car tax regime that was announced in the last Budget.
“In a worst-case scenario fleets will find themselves dealing with stagnant – or even rising – CO2 ratings just as the screw starts tightening faster on tax rates.”
He also warned that the introduction of Euro6 will cause higher vehicle prices, since it will cost extra to modify engines to meet the new rules. “The truck world is talking of engine costs rising by £10,000 per unit although the impact will undoubtedly be less severe for cars and LCVs, where unit costs are lower and volumes higher.”
Hollick concluded: “We also can’t stress highly enough the need to build choice lists using whole-life costs, since basing them on rental alone will not take account of the real cost impacts of Euro6 and BIK changes post-2015.”
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