BUSINESSES AND DRIVERS COUNT THE CARBON TO CUT TAX AND FUEL BILLS REVEALS ALD AUTOMOTIVE COMPANY CAR ANALYSIS
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1 8 May 2008 BUSINESSES AND DRIVERS COUNT THE CARBON TO CUT TAX AND FUEL BILLS REVEALS ALD AUTOMOTIVE COMPANY CAR ANALYSIS Fleets and company car drivers are increasingly turning to low emission vehicles and reducing their annual mileages in pursuit of lower corporate and personal tax bills and reduced fuel costs. 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 g/km of CO 2, but the average CO 2 figure for company cars delivered in December 2007 had dropped to g/km The average CO 2 figure for all company cars delivered by ALD Automotive in 2003 was 166 g/km; in 2007 the average figure had dropped to g/km; and by the end of the first quarter of 2008 the average CO 2 figure for all company cars delivered had dropped still further to 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.
2 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 CO 2 Report 2008: Driving Down Emissions reveals that the average CO 2 figure for newly registered company cars in 2007 was g/km, down from 166 g/km in Meanwhile, for new privately registered cars the 2007 average CO 2 figure was g/km, down from g/km in ALD Automotive says the huge reductions in both vehicle CO 2 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.
3 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-inkind 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 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 CO 2 emissions on new vehicles that we supply to customers. Additionally, a vehicle with a low CO 2 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.
4 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 CO 2 rating. We also recommend that motorists adopt a smoother driving style to reduce their emission levels. For further information please call David Yates, Marketing Director, ALD Automotive, or david.yates@aldautomotive.com Notes to Editors: About ALD Automotive ALD Automotive is the operational leasing and fleet management arm of the Société Générale Group. ALD Automotive is one of the largest providers in Europe and a company of reference on its market: - Operates now in a total of 39 countries in Europe, Northern Africa (Morocco), Brazil, China, Egypt and India - Employs 3,600 persons dedicated to customer satisfaction - Manages more than 685,000 vehicles Combining professionalism and quality of services and providing companies with value-added integrated solutions at both national and international levels, ALD Automotive provide a complete range of vehicle financing and management solutions to both major corporates and private individuals. ALD Automotive is committed to delivering high quality service solutions from tailoring outsourced fleet management and contract hire options to implementing structured employee car ownership schemes.
5 Within the top tier of contract hire companies in the UK, in fleet size terms, ALD Automotive operates 46,000 vehicles on contract hire, contract purchase, conditional sale, fleet management and PCP. In May 2006, ALD Automotive won the Editor s Award in the 2006 Fleet World Honours for its innovative DriveSafe one-stop shop programme of risk management initiatives. Meanwhile, in July 2007, the Institute of Transport Management named the company s Car Allowance Road Risk Solution, an integral part of DriveSafe, the winner of its On-line Risk Management Solution Award Additionally, in May 2004 ALD Automotive won the Best Fleet Management Service Award in the 2004 Fleet World Honours for its unique ProFleet2 telematics system. In May 2007 the technology won the Security Award in the 2007 Fleet World Honours. The company also received the highest Customer Satisfaction Index rating in the apd (alchemy performance development Ltd) Landmark Pre and Post Sale Surveys of fleet operators over the period featuring 20 of the UK s top leasing companies. In March 2003 ALD acquired Hertz Lease, based in Northampton. The company now operates customer service centres in Bristol and Northampton. About Société Générale Group Société Générale is one of the largest financial services groups in the eurozone. The Group employs 120,000 people worldwide in three key businesses: - Retail Banking & Financial Services: Société Générale serves more than 24 million individual customers worldwide.
6 Global Investment Management & Services: Société Générale is one of the largest banks in the euro-zone in terms of assets under custody ( 2,580 billion) and under management ( billion, June 2007). - Corporate & Investment Banking: Société Générale ranks among the leading banks worldwide in euro capital markets, derivatives and structured finance. Société Générale is included in the five major socially responsible investment indexes.
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