ALD AUTOMOTIVE: BUSINESSES AND DRIVERS COUNT THE CARBON TO CUT TAX AND FUEL BILLS

An analysis of vehicles added to ALD Automotive’s fleet of more than 47,000 vehicles since January 2003 reveals that:
• Company cars delivered that month averaged 166.87 g/km of CO2, but the average CO2 figure for company cars delivered in December 2007 had dropped to 153.83 g/km
• The average CO2 figure for all company cars delivered by ALD Automotive in 2003 was 166 g/km; in 2007 the average figure had dropped to 155.8 g/km; and by the end of the first quarter of 2008 the average CO2 figure for all company cars delivered had dropped still further to 155.6 g/km.

Over the same period company cars are also clocking up less mileage, according to the analysis, which reveals that:
• In January 2003 the average contracted annual mileage for a company car on the ALD Automotive fleet was 23,782, but by March this year that figure had reduced to 17,660 miles.
• In 2003 as a whole, company cars added to the ALD Automotive were contracted to clock up an average 22,475 miles, but in 2007 the average contract mileage was 17,918 – a reduction of 4,557 miles a year.

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The data also reveals that emissions figures for new company cars being supplied to customers by ALD Automotive are significantly below those of the company car sector as whole and the private new car market.

Recently published figures from the Society of Motor Manufacturers and Traders in its ‘New Car CO2 Report 2008: Driving Down Emissions’ reveals that the average CO2 figure for newly registered company cars in 2007 was 164.2 g/km, down from 166 g/km in 2006. Meanwhile, for new privately registered cars the 2007 average CO2 figure was 165.8 g/km, down from 168.7 g/km in 2006.

ALD Automotive says the huge reductions in both vehicle CO2 emissions and annual mileage as vehicles join its fleet, is the result of fleet decision-makers and drivers heeding Government fiscal warnings to ‘count the carbon or pay the cost’.

And, by the end of this year, ALD Automotive expects average figures for both emissions and mileage to have reduced from their 2007 levels as businesses and company car drivers respond to Budget 2008 fiscal measures and fuel prices being at record levels – currently 110.6p per litre for petrol and 120.9p per litre for diesel, according to AA data.

Additionally, says the company, the data underlines the importance businesses attach to reducing their carbon footprint amid mounting concerns over the damage climate change is causing to the environment.

ALD Automotive marketing director David Yates said: “We have tracked a remarkable transformation in our fleet in terms of both the type of company cars increasingly chosen by businesses and their drivers, and the amount of mileage clocked up.”

With the number of low emission petrol and diesel vehicles produced by manufacturers continually rising, company car drivers have an opportunity to choose the ‘right’ vehicle to both cut emission levels and slash their benefit-in-kind tax bills, says ALD Automotive.

In addition, far-reaching changes to Vehicle Excise Duty and reform of capital allowance rules – both due for implementation in April 2009 – further signpost fleets along the ‘green’ road.

Mr Yates said: “Vehicle emission figures are not only important from a company car tax viewpoint, but they are increasingly important in terms of all vehicle-related fiscal taxes. As a result, we expect significant further reductions in the level of CO2 emissions on new vehicles that we supply to customers.

“Additionally, a vehicle with a low CO2 figure will benefit from excellent fuel economy. With pump prices at record levels and predictions that in the coming months they will go still higher, firms must ensure that they offer drivers low emission vehicles to keep business and private fuel bills in check.”

As a result of a desire to cut their carbon footprint – as well as reduce fuel bills – businesses are increasingly ensuring that only essential journeys are clocked up, which is why ALD Automotive is seeing a significant reduction in average contracted mileage.

Mr Yates added: “Undoubtedly, our ProFleet2 telematics service will have helped identify some of this unnecessary mileage and we feel this trend will continue for the foreseeable future.

“As a major supplier of vehicles to UK corporates we continually encourage companies to adopt a ‘greener’ motoring stance. This includes signing up to our unique CARbon Offset initiative.

“It is acknowledged that the key to managing climate change is to reduce emissions at source. Our data shows that businesses and their company car drivers are increasingly doing that through a combination of reduced mileage and operating vehicles with a lower CO2 rating. We also recommend that motorists adopt a smoother driving style to reduce their emission levels.”