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Uncertainty and doubt
Page 26
Page 27
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The run-up to Christmas is traditionally the busiest time of the year for the rental and leasing sector — but John
Lewis, director-general of the BVRLAr is on the warpath. Commercial Motor editor Andy Salter finds out why.
The SMMT vehicle registration figures for 2006 look like a rollercoasterRecordsales for the first quarter,a dip, then a rise again to the end of September followed by a plummet to the end of the year. The reason for these dips and rises, of course, is legislation: specifically the introduction of digital tachographs and the Euro-4 emissions standard.
You'd think that the market's uncertainty over which new trucks to buy would be good news for the rental and leasing sector as operators delaying new purchases hire in vehicles to take up the slack. So it would be reasonable to assume that John Lewis, director-general of the British Vehicle Rental and Leasing Association (13VRLA).is a happy man. In fact he's fuming.
Many rental and leasing companies are reporting record utilisation levels,"but this is for Euro-3 trucks with analogue tachographs." says Lewis."If I didn't know better I'd say there was a recession on the way-we usuallysec these levels of utilisation when operators are deferring new acquisitions due to economic uncertainty.
But it's more likely this situation is down to the introduction of legislation the utilisation of Euro-4, digital tachograph-equipped trucks is extremely low." It is this uncertainty in the market,particularly due to the issues surrounding digitachs. that is causing Lewis to get hot under the collar. And if he's shouting...7ou can bet his members have been shoutingeven louderat him.The BVRLA recently warned that the slow take-up of smart cards could threaten the UK road transport industry's ability to cope with the inevitable peaks and troughs in demand.
Digitach dilemma
"We understand the dilemma operators are facing," says Lewis. "The introduction of speed limiters,digital tachographs and Euro-4 have all had an impact on their businesses over the past few months. However, the effect of ignoring digital tachographs means drivers aren't getting their cards rendering them useless to employers if they are faced with a new vehicle equipped with a digitach.
"This is reflected in the fact that with the Christmas peak season looming, many of our members are being asked to provide hire fleets that specifically exclude vehicles fitted with digital tachographs. While that may be OK right now, the UK hire fleet continuously invests in modern vehicles for its customers.
"Our concern is that the slow take-up of driver cards means operators may find themselves needing rental vehicles hut being unable to operate them. This, of course, has implications for the driver and the employer."
Lewis cites one fleet which took five digitach
is some altruism in Lewis's motivations a clearly in the best interestsof UK RoadTrar plc to continue to invest in newer vehiclesi than delay adoption and risk being pu long-term commercial disadvantage.
Rising fuel costs
The report by Sir Nicholas Stern or Economics of Climate Change, publis few days before our interview, sits on Li desk -and judging by the copious margin he has been poring over the line print:" consider the rising cost of fuel we've em this year, it's clear that the price sensitil transport, particularly private motorin not been reached.
-We've hit record fuel price levels,yet it no impact on the amount of motoring we seems clear to me that, given the Stern R was commissioned by the Chancellor, just another platform for raising taxes W it being transparent.
The Stern Report has boosted F interest in environmental issues and the FACT FILE alternative fuels, putting the spotlight on I The BVRLA believes trucks. Lewis and his team have been revi diesel, not hydrogen, the BVRLA's position in this area anc represents the have come to a clear conclusion: "C long-term future for continues to represent the long-term commercial vehicles for commercial vehicles," he says. -We'vt trying to assess the 10-year cycle and equipped vehicles from one of his members and up of driver cards. In France the employer come to the conclusion that you can forp then had to hire in agency drivers to drive the pays and gets a tax break as a result. "Diesel will be a cleaner fuel from an emi vehicles as its own drivers did not have smart "I'd like Vosa to declare a light-touch' point of view by the time we've passed E cards and were reluctant to acquire them. enforcement policy on digital tachographs Forget hydrogen: the technology is too It's a poor state of affairs. says Lewis, and the for the next 18 months. It's what's happening and it's too difficult to transport. Hybrids BVRLA is calling on the government to offer in Germany, where they are allowing the tonnes GVW may have some merit for some respite on this issue:"There is no incentive. paper printout to be used.operation, but we consider diesel the best c nor advantage,for operators in opting for either Sure, the B VRL A's noise in this area is though with a higher mix of biodiesel." • digitachs or Euro-4 emissions. It beggars belief driven bv its members' understandable desire • See page 58 for aCommerciallliotorfi why the government can't incentivise the taketo rent more of the latest vehicles. But there on speed limiters.
Next step for Lewis?
Speaking to BVRLA members at a number of recent events, it is that this trade association is well regarded, offering plenty of so and a lobbying voice for its members. Rs director-general is c a well respected player in the industry.
It hasn't escaped us — nor, we suspect, the BVRLA — thN Freight Transport Association is looking out for a new chief exec Lewis comes across as dynamic, thoughtful and straightforw one for the shortlist?