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The existing CO2 tax system only takes into account 'tailpipe' exhaust (or 'tank-to-wheel') emissions for the lifetime of the car's use - not the CO2 emissions created in production and delivery of the car and fuel (or 'well-to-tank'). The WTW method combines the two.
Ford is bullish about bioethanol's prospects, on the back of success in several other overseas markets, including Sweden, where - after government incentives including a 20% reduction in company car tax to reflect the fuel's WTW impact - 80% of all Ford Focuses sold are FFVs, able to run on bioethanol or conventional petrol.
However, 25% more bioethanol is needed to travel the same distance as a normal petrol unit. Bioethanol currently has a 20 pence per litre duty rebate, making it a similar price to petrol and diesel, so without an additional fuel duty rebate it will cost fleet managers more to run.
Ford has made the price of its Focus FFV the same as a conventional Focus and Norwich Union has pledged to offer a 15% discount in insurance premiums for FFV Focus drivers, but Ford believes the success of the technology is still dependent on a change of Government thinking on CO2 measurement for taxation.
The Government, however, remains for now, unmoved. A Treasury spokesman told Fleet Week: "Incentives for bioethanol are already in place and sufficient, although all taxes are subject to review. The reason for not incentivising the fuel further is that there is no way of knowing which fuel is being used [with a dual-fuel vehicle] and there are difficulties in measuring lifetime bioethanol emissions."
The latter point is certainly true - there are many factors to consider from tractor diesel miles in harvesting to how much fertiliser is used - but a system of measurement of all the variables already exists at the European Consortium for Automotive Research (EUCAR).
Saab is also a bioethanol believer and made similar calls last week for well-to-wheel to be the new CO2 playing field.