Chairman’s Report
Andrew Goddard, Chairman, Verification of Lubricant Specifications
In the automotive sector, progress to further reduce emissions is moving ahead at speed, particularly in the UK commercial vehicle sector.
Under existing regulations goods vehicles are taxed in a different number of ways. Private light goods vehicles weighing no more than 3,500 kg are taxed according to their engine size or if registered on or after 1st March 2001, a flat rate of taxation applies. Similarly Euro 4 and Euro 5 compliant light goods vehicles are also taxed at a flat rate. Heavier goods vehicles are typically taxed up to £1,430 per annum according to their weight and the number of axles with no alleviation for compliance with Euro 4, 5 or 6 regulations.
This is all set to change.
According to Transport Operator Magazine under new Government proposals lorries that are compliant with Euro 6 emissions will pay 10% less tax a year under the revised HGV road user levy whereas those that are compliant with Euro 5 and below will pay 20% more. Through these proposals Government hopes to incentivise the take up of newer more resource efficient vehicles in the same way that passenger car road tax incentivised vehicles with lower emissions, with those emitting less than 99g/km of CO2
paid no road tax under previous rules.
Naturally transport operators are up in arms. Over recent years the increasing trend for motorists to hang onto their ageing vehicles, particularly in the wake of confusion about diesel vehicles and emissions, has impacted sales in the sector. According to the Society of Motor Manufacturers and Traders (the trade body representing the sector), the sale of new cars fell in
56 LUBE MAGAZINE NO.145 JUNE 2018
March by 15.7%. Contrast this with new car sales growth of 4.3% for February 2018 across Europe, as reported by the European OEM association ACEA.
The tendency for owners to retain vehicles for longer is also a facet of the commercial vehicle market. Rising procurement costs, a need to keep expenditure in check and confusion about what exactly Government policy is towards commercial diesel vehicles has all led to lengthening replacement cycles. Although this might make sound economic sense for commercial vehicle owners, it means Government needs to look at ways of incentivising the switch to lower emission vehicles over the short-term to meet European Air Quality targets.
Meanwhile OEMs pursue the relentless march towards lower emission standards, led by tighter regulations imposed by the European Union. The use of ACEA 2016 which become mandatory for all lubricant claims from December can do little to support the education of the End User by clarifying the right product for the application, hence the old adage for owners to ‘look in their manual.’
This month we look forward to meeting end users and members at Automechanika in Birmingham, UK between the 5th and 7th June.
LINK
www.ukla-vls.org.uk
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