UK CV Manufacturing Down 17.1% On Export Collapse

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UK commercial vehicle manufacturing output fell 17.1% in February, after falling by 20.5% in January, compared to the same periods in 2012. 

Stable domestic demand for new UK-built commercial vehicles is doing nothing to offset the dramatic collapse in export volumes, which fell by 31.4% in February compared to February 2012. The fall comes on the heels of a 37.2% drop in exports in January — clearly the eurozone crisis (most exports are to Europe) is nowhere near abating, whatever the politicians and bankers would have us believe.

Here’s a snapshot of the latest UK commercial vehicle manufacturing figures:

CV manufacturing Feb-12 Feb-13 % Change YTD-12 YTD-13 % Change
Total 9,655 8,005 -17.1% 19,499 15,827 -18.8%
Home 4,060 4,165 2.6% 8,126 8,361 2.9%
Export 5,595 3,840 -31.4% 11,373 7,466 -34.4%
% export 57.9% 48.0% 58.3% 47.2%

Data courtesy of Society of Motor Manufacturers and Traders (www.smmt.co.uk)

As the graph below shows, UK commercial vehicle exports are now lower than they were at the depths of the 2009/10 downturn, and while total CV manufacturing remains higher, flat UK demand — which is below historical norms — is not sufficient to support a recovery in manufacturing:

UK CV output 2008 - Feb2013

UK commercial vehicle manufacturing output rolling year Feb 2008 – Feb 2013 (courtesy of SMMT)

Commenting on the figures, Mike Baunton, SMMT Interim Chief Executive, said:

“Manufacturing of commercial vehicles in the UK continues to struggle with the fall in European demand. However, with the Commercial Vehicle Show coming up in April, we have an opportunity to showcase the very best in new technology, environmental performance and safety of these vehicles which are so crucial to the UK economy.”

Sadly, I don’t think that a lack of desire for new technology is the cause of the slump in sales. I suspect that companies (and public sector buyers) across Europe simply don’t have the spare cash or the confidence necessary to ramp up spending on new vehicles when they don’t strictly need to.

What Does Budget 2013 Mean For Van Owners?

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Budget 2013: Van owners are will see road tax increase in-line with inflation and and will pay slightly less fuel duty than they would have done, but there were no earth-shaking changes in today’s budget.

Here’s a quick summary of the announcements in today’s budget that may affect van owners and operators:

Vehicle Excise Duty (Road Tax)

The government has no plans to reform road tax in the current parliament.

From 1 April 2012, road tax will increase in line with Retail Price Index (RPI) inflation. For van owners, this means £5 per year more:

Vans (up to 3.5t) registered before 1 March 2001
Engine size 2012/13 tax year 2013/14 tax year
1,549cc or below £135 £140
Above 1,549cc £220 £225
Vans (up to 3.5t) registered on or after 1 March 2001
Emissions rating 2012/13 tax year 2013/14 tax year
Euro 4/5 compliant £135 £140
All other vans £215 £220

Fuel Duty

The Chancellor also announced that the proposed 1.89p increase in fuel duty that was planned for 1st September 2013 will be cancelled.

In a possible sign of things to come, the budget included confirmation that in 2015-16 “the duty differential for liquefied petroleum gas will be reduced by the equivalent of 1 penny per litre.” 

Anyone thinking about buying a van with an LPG conversion might want to consider this — cost savings of using LPG are solely down to its favourable tax treatment. You certainly don’t get better mpg and the fuel itself isn’t intrinsically cheaper.

If LPG’s favourable tax treatment is reduced or removed, there is no real cost benefit. Interestingly, the difference between the main rate of fuel duty and the rate for compressed natural gas (CNG) is going to be maintained. I wonder what the logic is in the different treatment of LPG and CNG?

Van Benefit Charge

Van benefit charge will be frozen at £3,000 in 2013/14 and will be increased in line with RPI from 6th April 2014. The fuel benefit multiplier (Fuel Benefit Charge) will also increase in line with RPI from 6th April 2014.

Fiat Doblò Cargo Bowls Out Competition At VansA2Z Awards

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Fiat Doblò CargoFiat Professional’s Doblò Cargo small van was named Best Light Van in the VansA2Z Van of the Year Awards for 2013 announced yesterday at an industry lunch at Lords Cricket Ground, London.

The award was presented to Sebastiano Fedrigo, director, Fiat Professional UK, who said:

“Our Doblò Cargo has been a huge success ever since it was launched and is widely recognised as a class-leader in its category.

“We are delighted to receive this honour from the VansA2Z team. It provides further proof of the all-round qualities of this excellent vehicle.”

Commenting on the award, Neil McIntee, Editor of VansA2Z.com, said:

“Fiat’s Doblò Cargo is one of the most impressive vans of its size to have been launched over the past few years. That is why we have made it our Light Van of the Year for 2013.

“One of the aspects that really appeals is the unique and intelligently designed rear suspension system. A bi-link independent set-up, it has been installed with an eye to enhancing ride and handling, and has done just that. Light in weight, it’s compact too.

“What really impresses is the breadth of model choice available. Drivers are going to be happy too. It rides and handles well with the rear suspension coping admirably, both laden and unladen. A great piece of functional design from the Italian manufacturer.”

Fiat Doblò Work Up - dropside

The Doblò also comes in an unusual dropside version, called the Work Up.

Fiat Professional’s Doblò Cargo is the first LCV to have a bi-link rear suspension which ensures a smooth ride, lower loading height and better width between wheel arches. Additionally, the bi-link suspension permits a rear axle load up to 1,450kg.

Fiat Professional’s Doblò Cargo sits on an all-new platform and has great carrying capacity in both weight and size terms: up to 1 ton payload and up to 5.0 m3 volume.

The award-winning Doblò is available with a choice of five Euro 5-specification engines, and comes in several different forms – Cargo, Cargo Maxi, Cargo SX, Cargo Tecnico, Cargo Maxi SX, Cargo Maxi Tecnico, Combi, Combi Maxi, Platform Cab, Work Up, and XL – to offer solutions for a wide spectrum of commercial vehicle users.

The engine line-up comprises a 1.4-litre 16v 95bhp petrol unit and four MultiJet 16v diesels – 1.3 (90bhp), 1.6 (105bhp), 1.6 Comfort-Matic (90bhp) and 2.0 (135bhp).

Full details on Fiat Professional’s range of commercial vehicles is available at www.fiatprofessional.co.uk

Nissan eNV200 Will Make UK Debut at CV Show 2013

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Nissan eNV200 electric van

Nissan eNV200 electric van

Nissan’s eagerly-awaited eNV200 electric van will make its UK debut at the CV Show in Birmingham on the 9th – 11th April 2013.

The eNV200 has already generated strong positive feedback from fleet operators who have carried out long-term trials of the vehicle and tried it at a recent test event and were impressed with its zero CO2 emissions at the point of use, driving comfort and generous carrying capacity and payload.

Nissan will round out its display of new vehicles with the UK debut for the NV200 taxi, Nissan’s proposed replacement for the London black cab. The NV200 taxi is based on the company’s multi-purpose NV200 compact van and redesigned to fully comply with the host of TfL Taxi Conditions of Fitness.

As well as seating to comfortably accommodate five passengers, the NV200 Taxi has also been modified to accommodate a wheel chair passenger and achieve a 25ft (7.6m) turning-circle – a legal requirement for all Hackney Carriages.

Finally, Nissan will display the latest version of its Navara double cab pick-up. The Navara Visia is an entry-level model that’s designed to provide a practical solution at an affordable cost (funny how several manufacturers are rolling out such models in the wake of the Great Wall Steed pick-up launch!).

The Nissan stand is in Hall 3a (stand number 3A80) and will also feature a Cabstar, NV200, NV200 Fridge, NV400 panel van and a Red Bull Formula 1 car.

Ford’s A Hit For Six At VansA2Z Awards

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Ford Transit Custom

The Ford Transit Custom is VansA2Z.com Van of the Year 2013

Ford demonstrated why it remains the UK’s favourite commercial vehicle manufacturer by hitting the ball out of the park and winning an unprecedented six awards  at the recent VansA2Z Awards 2013 (apologies for the mangled sporting metaphors — the awards took place at Lords Cricket Ground, London).

The Brentwood-based company took home trophies for the following categories, with its new Transit Custom model (a direct competitor to the Mercedes Vito and Volkswagen Transporter) bagging no fewer than three:

  • Ford Transit Custom – Van of the Year
  • Ford Transit Custom – Best Small Panel Van
  • Ford Transit Custom – Best Innovation
  • Ford Transit – Best Minibus
  • Ford FiestaVan – Best Small Van
  • Ford Ranger – Highly Commended Pick-up

The Ford Transit Custom also claimed the overall Van of the Year award as well as winning in the Best Small Panel Van and Best Innovation categories. Its win in the Best Innovation category is particularly well deserved, as it is the first vehicle in its segment to achieve a five-star Euro NCAP safety rating.

Ford Transit won Best Minibus for the third year running, and the frugal new Fiesta Van – which accounts more than 60 per cent of its segment – won Best Small Van. Ford Ranger, International Pick-up of the Year 2013, was highly commended.

Neil McIntee, VansA2Z editor, said:

“We’re delighted to award the Transit Custom Best Small Panel Van and the overall Van of the Year accolade. Ford has raised the bar to new heights with the introduction of Transit Custom. In terms of dynamics, refinement, safety and clever, functional design features, it is untouchable.”

The all-new Ford Transit Custom claimed the International Van of the Year 2013 title when it was launched last year and has sold more than 1,100 units since November 2012.

Citroën Bags VansA2Z Award For Ready To Run Conversion Range

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Citroen Ready to Run range

Citroën’s Ready To Run range has won the first Vans A2Z One-Stop Shop Award.

Citroën’s award-winning Ready to Run range of factory van conversions continued its winning ways earlier today.

This unique ready-bodied specialist programme, the most comprehensive of its type available in the UK, has just won the VansA2Z One-Stop Shop Award.

In making the first VansA2Z One-Stop Shop Award, the judges commended Citroën for the range and quality of the Ready to Run conversions available for its Nemo, Berlingo, Dispatch and Relay models.The Vans A2Z Van of the Year Awards 2013 One-Stop Shop Award-winning Citroën Ready to Run range includes:

  • Dropside trucks
  • Glass carrying vans
  • High-cube, low-loading vans
  • Luton vans
  • Temperature-controlled (chiller/freezer) vans
  • Tippers

Scott Michael, Citroën’s Head of Commercial Vehicles & Business Centre Programme, remarked:

“The Ready to Run programme has been successful in widening Citroën’s LCV customer base, enabling the company to compete in new markets. I am very pleased that the Vans A2Z Van of the Year Awards judges have recognised Ready to Run’s success with the first One-Stop Shop Award.”

As I’ve commented several times in recent years, most manufacturers are now offering ready-built body conversions and the popularity and relevance of these schemes will only increase when the EU type approval rules come into force in April, despite the recently announced common-sense exceptions.

Van Hire Firm Northgate Trading At Lower End Of Expectations

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Van hire specialist Northgate plc, which operates the Northgate Vehicle Hire, Norflex and Van Monster businesses in the UK, issued a fairly cautious trading statement today, warning that “tough economic conditions” were continuing to impact its business and that it was currently trading at the lower end of expectations.

The statement was something of a contrast to its last update, which was comparatively optimistic. In today’s statement, Darlington-based Northgate said that the number of vehicles on hire had fallen from 45,000 at 31 October 2012 to 44,200 at 28 February 2013, a decrease of 800 units compared to a fall of 3,900 in the same period last year.

In response to this fall the firm has reduced down the fleet by 1,100 since 31 October 2012, which by my reckoning means it now has approximately 49,900 vehicles in its UK hire fleet.

Stable revenue and utilisation

Northgate has been trimming its fleet to maintain utilisation levels for some time now, and in fairness it appears to have been a successful policy that has allowed it to rebuild its operating margin (up from 7.5% in 2010 to 13.2%), reduce debt (from £615m in 2010 to £360m) and restart dividend payments.

According to today’s update, rental fleet utilisation has been stable at 88% for the last four months, down slightly from 89% for the previous six months (which did include the Olympics).

Northgate said that underlying hire revenue per vehicle had remained stable, suggesting that it is not being forced to cut its rates to secure business, and said that it had continued filling the regional gaps it had previously identified by opening new branches. A new branch opened in Luton on 18 February 2013 and further branches in Brent Cross and Huddersfield are scheduled to open by 30 April 2013.

Retail strength

One aspect of Nortgate’s business that may have helped its recovery is Van Monster, its chain of used van dealers. In its update today, Northgate said that “the used vehicle market continues to remain strong” and residual values were in line with those experienced in the year to 30 April 2012.

As I’ve reported several times, residual values for nearly-new vans are extremely strong at present, due to a shortage of supply. Van Monster enables Northgate to choose between selling de-fleeted vehicles at auction or through its retail branches, which it has previously said produce higher profit margins than other methods of disposal.

Outlook

The outlook is undeniably challenging, but Northgate’s recovery plans have been successful so far and the company has returned itself to a stable, profitable footing.

Isuzu Trucks Moves Into North London With Enfield Dealership

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Isuzu Truck range

The Isuzu Truck range

Leading truck manufacturer Isuzu Truck UK has announced the appointment of a brand new main dealer to cover the key location of North London.

The new Enfield-based company, known as Isuzu North London, joined the Isuzu truck dealer network with effect from February 2013.

Isuzu North London is providing full sales, service and parts coverage for the Isuzu truck marque and as Keith Child, marketing director at Isuzu Truck UK explains:

“The geographic area covered by this new dealership is an important one for us. This is a densely populated area in terms of the number of companies operating commercial vehicles and of course Enfield is easily accessed from the M25, M11, A1(M) and M1 motorways. This latest dealer appointment will ensure that both current and future Isuzu operators in the area will get first class sales and aftermarket support at all times.”

Isuzu trucks have not historically been popular with van hire companies, but Isuzu’s 3.5t Grafter has a strong reputation with van operators, especially those whose work is quite demanding — such as builders and grounds maintenance contractors. The Grafter’s truck-based construction means it is pretty robust and would, presumably, make a good base vehicle for a luton conversion, in addition to its more common use as a tipper and dropside.

How To Slash The Cost of Van Hire Excess Insurance

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There’s no doubt that we all hate hidden costs — and much as the UK’s car and van hire companies will deny it, the cost of van hire excess insurance can seem to fall into that category.

Typically, you collect a vehicle that you’ve booked and the hire company representative will point out that your booking includes insurance, but that it carries an excess of perhaps £500 (I think my personal record is £750).

You will then be offered a chance to take out additional insurance to reduce this excess to a much lower figure, or even zero. This usually costs between £10 and £20 per day — a hefty increase on your daily hire rate.

The problem is that you may not want to manage without it — as you could be left seriously out of pocket if anything goes wrong.

There is another way…

Luckily, there is an alternative — you just need to plan ahead.

You see, even if you want to reduce your van hire insurance excess, you don’t need to purchase additional insurance from your hire company. In fact, you can purchase the extra insurance anywhere you like — and luckily there are several companies that specialist in providing this service and can offer you big savings over the standard hire company rates.

What’s more, buying excess insurance from a company like iCarehireinsurance.com is also likely to give you far more comprehensive coverage than typical hire company insurance, which usually excludes tyre, glass and roof damage (a particular problem with big vans).

iCarhireinsurance offers van hire excess reduction (to zero) from just £7.99 per day*. What’s more all their policies include parts of the vehicle that are often excluded from other insurance policies – such as tyres, windscreen, roof and undercarriage.

Buying excess insurance from a specialist company is a no-brainer in terms of cost savings — the only catch is that you need to do it before you pick up your hire vehicle, but since it’s all done on line, that isn’t a big inconvenience.

Why not try it next time you hire a car or van?

Hire A Van From £15 Per Day With Europcar

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Europcar van hire moving houseEuropcar is following up on its New Year Sale with a Spring Van Hire offer that will allow you to hire a van from just £15 per day.

This offer is available for bookings made until 9th April 2013.

**THIS OFFER HAS NOW EXPIRED**

Ken McColl, Europcar UK Group’s Managing Director, explains why the company is running this attractive promotion:

“With many families still bearing the financial brunt of the festive season, our special offer on van hire will help families do more for less and get their house in order again.” said Ken McCall Managing Director, Europcar UK Group.  “We know spring cleaning is a tradition amongst many families so hopefully van hire from £15 per day will provide that extra incentive to get the work done before Easter arrives!”

There are more than 130 Europcar van hire branches in the UK, each offering a range of vans, from small vans like the Vauxhall Combo to large luton box vans that are suitable for small house moves. What’s more, all Europcar vans are fully maintained to manufacturer specifications and covered by 24 hour breakdown, for added peace of mind.

A range of hire packages are available allowing customers to hire from just an hour to a day, a week or even longer. For added efficiency Europcar can deliver vans to home addresses through its weDeliver delivery and collection service.