Beating the drum: countering the diesel backlash

These are tough times in the motor trade. Half-year sales of new cars are down 6.3%, while diesel registrations fell by more than a quarter last month. It’s symptomatic of a rocky market. Uncertainty over Brexit is inevitably a factor, but so too is the headline-fuelled angst concerning diesel. Like so many business drivers whose daily motoring choice is a diesel, I’m cheesed off by its unnecessary demonisation. But it’s become the default view of those who are ignorant of the facts about the newest Euro 6-compliant engines.

Non-specialist media reporting on a topic they don’t wholly understand is part of the problem. It’s not so much fake news, more an issue of thin knowledge. We need the SMMT to bat harder and really sell up how clean modern diesels when compared to their petrol equivalents. As any savvy motor trader knows, black-pump fuel typically returns about 30% better fuel economy, with lower emissions. While alternative-fuel vehicles currently account for just one in five UK registrations, there’s still a strong case for diesel, and its decline does not bode well for government CO2 targets.

This was one of the pressing topics during a chat with Ford of Britain chairman and managing director Andy Barratt, who’s also a vice-president of the SMMT. We were at Goodwood ahead of this year’s Festival of Speed, chatting during the launch of Ford’s new hot hatch, the Fiesta ST. What are his impressions of the current state of the car market?

“It’s definitely slowing down, you can feel it,” said Barratt. “There’s clearly consumer concern brought about by Brexit, people can see fuel prices going up, everyone is getting that squeeze again on their pocket. It’s making them think twice about whether they change their car. Those who are changing are on a PCP cycle but they want to change cars for the same money. Some 85% of our retail customers buy on PCP now, nobody wants to own a depreciating asset any more. Everyone is very price sensitive and dealer profits are getting squeezed as a result.”

His take on diesel backlash? “It’s a problem. We have to hit CO2 targets and people are still confused about diesel. Road to Zero [the government’s strategy to lead the world in zero-emissions vehicle technology] will confuse people even more. There’s indecision on diesel, people are sitting on older cars for too long. But Euro 6.2 diesels are the cleanest they’ve ever been and very much as clean as petrol.

“If you do any degree of motorway mileage, forget hybrid, it’ll be less efficient and more damaging. If it’s a long journey on the motorway, diesel is the best solution. If you are moving any goods or services, diesel is the only option. There is a real paranoia around diesel, which is a challenge.” So should the SMMT be championing diesel to a greater degree? “They will if I have my way,” replies Barratt. “I say to Mike Hawes [SMMT chief executive] get on the front foot and beat the drum about diesel. There’s a job to do there, inform the poor old consumer who’s just confused about it all.”

Like other OEMs, Ford has launched a direct-to-consumer online sales channel, combining online ordering and dealer delivery. In addition, a new initiative will extend Ford’s introduction of mobile servicing for commercial vehicles into a retail scheme. “We have factory trained technicians in vehicles with on-board diagnostics, and they can carry

out servicing at the customer’s home or office.”

What about the B-word, Brexit? “It cost us, Ford of Britain, £700 million last year in exchange rate movements alone. We need clarity and stability. We have five million customers and 14,500 employees in the UK, we are the second largest investor in R&D (after JLR). We are a global centre for powertrain research and development.” So why not be more vocal about Brexit? “We have a lot to say, but we have our dialogue privately with the government behind closed doors.”

Sue Baker is a motoring writer, editor, broadcaster and columnist for Motor Trader