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THE RISE OF THE GREEN MACHINES


More and more businesses are realising that it’s not the size of your engine, but what you do with it that counts. Discover how tax benefits on environmentally sound transport can shape company fleet management


high-spec accessories – today, the talk is all about CO2


G emissions. Te government’s introduction of an


emissions-based tax regime for vehicles revolutionised the car market in 2002, and it’s had a major impact on fleet management today. Te CO2


one are the days when company reps competed to out do each other by boasting about the size of their company cars or latest


improvements in fuel efficiency and lower running costs. Employees have also benefited from a smarter choice of company cars, such as BMWs and Audis, which were generally outside the price range of cash alternative schemes. Tis is because the European car


Benefits in Kind regime has


benefited both employers and drivers. Employers have reorganised their fleets towards lower-emission vehicles which, in turn, has brought


manufactures, particularly in Germany, have been quick to respond to the trend towards low emission vehicles in recent years. Even though the current emission levels – per kilometre


measured in grammes of CO2


(g/km) – will become even lower over the coming years, Julie Jenner, Chair of the Association of Car Fleet Operators, said that this should not pose any problems for fleets. She said: “Today, you can get a Five Series


corporate buying decisions can be seen in the higher rating given to pollution levels in the latest quarterly company car trends research from GE Capital’s Fleet Services division. Te report, which questioned


BMW with emissions below 130g/km and a Tree Series below 100g/km – you would never have expected that five years ago.” Te importance of CO2


emissions in


some 250 fleet decision makers, showed that an increasing number are using stricter criteria when it


comes to deciding which models will be offered to employees – with the


central thrust being on controlling costs and delivering value. When asked which criteria were being used to set employee car choice, the answers in the


first quarter of 2011 were: 52 per cent CO2 emissions limit, 40 per cent fitness for purpose, 40 per cent maximum monthly rental, 19 per cent safety features and 8 per cent maximum engine capacity. However, 18 months later the criteria had


cent fitness for purpose, 58 per cent maximum monthly rental, 21 per cent safety features and 18 per cent maximum engine capacity. Gary Killeen, Fleet Services Commercial


changed: 70 per cent CO2


Leader for GE Capital UK, said: “At the heart of this, and very much as a result of the ongoing economic conditions, is a desire to reduce


expenditure. Te increased interest in ‘lower CO2 emissions’ and ‘maximum monthly rentals’ will help to reduce acquisition and running costs although, of course, there is also the advantage that most will reduce your carbon footprint.” Killeen said that he expected to see fleets


increasingly use their choice lists as a proactive means to further reduce costs and increase the productivity of their company cars as work tools. He explained: “If you apply the current


legislative and taxation framework to the spread of models available to fleets and drivers today, you can see that offering the right car choices will have a greater effect on meeting your fleet objectives than perhaps at any previous time. “For example, within the lower medium


sector, it is possible to find ostensibly similar vehicles at the same price level, but one might have a CO2


output 50 per cent higher than its CONTINUED ON PAGE 44


» emissions limit, 59 per


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