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Mike Waters' blog: 26th August: Changing thresholds

Date: 26 August 2014

Mike Waters is senior insight & consultancy manager at Arval, the leading vehicle leasing and fleet management company.

For a while, a 130g/km CO2 cap on company vehicles has been seen as the best approach to take by many businesses. The rationale for this is sound: it ensures that their vehicle fleet is clean and efficient which makes it cost effective for the company and their drivers while at the same time, this cap is high enough to include a good deal of choice and retain the makes and models that drivers want.

The common school of thought has been that if you go much lower the options aren't there for drivers and the most desirable models will no longer be available. However, things have changed and it's amazing which vehicles now deliver sub 130 g/km performance.

One of my consultants just ran a list and there are some really attractive and exciting models well within this threshold. Hybrids on the market include the £100k BMW i8, the £89k Porsche Panamera and the £76k Mercedes S-Class.

There are a range of fully electric cars which excite like the Tesla Model S worth around £74k. While there are also many really efficient models with conventional engines, like the diesel powered Audi A7 emitting just 122 g/km or the Jaguar XF with emissions of 129 g/km.

It just shows how much technology has come on and how common it has become for large, luxurious cars to deliver really low emissions. The goalposts really are shifting and selecting an efficient vehicle no longer means compromising. Because of this, it makes sense for the company, and their drivers, to go for something that is clean and sustainable.

Some of the myths are being smashed in this area and for many companies it will be time to re-visit their emissions thresholds and choice lists as the market evolves and new models delivering improved performance become available.

Mike Waters is senior insight & consultancy manager at Arval, the leading vehicle leasing and fleet management company.