Fuel Type: Electric Vehicle (BEV)

The Van’s Headlights: Peugeot Bipper

The Van’s Headlights

With conversion rates and average selling prices reaching new heights, the used light commercial vehicle (LCV) market is currently in fine fettle. A shortage of stock and a reduction in rental de-fleet volumes are driving these records. Interestingly, nearly 50% of all auctions sales are now for Euro 6 stock. In this month’s edition of The Van’s Headlights, we consider the merits of Peugeot Bipper Professional 1.3HDi 80bhp Euro 6 van (2016 – 2017).

The Glass’s Commercial Vehicle Editorial Team continue to scour the market in search of models offering the highest levels of versatility and durability whilst adding their experience to spot the best value for money available.

The Peugeot Bipper

Revealed in October 2007 and launched the following June, the Bipper is the smallest van in Peugeot’s LCV line up, underneath the Partner, Expert and Boxer. It was specifically designed as a high cube van with a generous load volume and a payload comparable to the larger Partner van.

Built as part of a joint venture with the Citroen Nemo and the Fiat Fiorino at Fiat’s factory in Bursa, Turkey, the Bipper is designed for urban deliveries. Featuring a wrap-around bumper protecting setback headlights, bonnet and radiator. Additionally, the wheels were pushed into each corner, delivering compact dimensions and maximising interior space.

Available with a choice of either a 1.4-litre 75bhp petrol engine or a 1.4HDi 70bhp diesel engine emitting only 119g/km of CO2. The HDi diesel engine was also available with an optional electronically controlled manual gearbox, a first for a Peugeot light commercial vehicle.

The Bipper launched with S and S+ trim levels and along with the Nemo and Fiorino was voted joint ‘International Van of the Year’ 2009. An optional five-speed electronically controlled 2 Tronic manual gearbox was introduced in August. Based on the standard manual gearbox, the 2 Tronic delivered improved CO2 of 116g/km and 64.2mpg. The top of the range Professional variant was added to the range during the summer of 2009.

Standard equipment on the S+ included one-touch electric front windows, electric adjustable and heated door mirrors, remote control central locking with separate cab and load area locking, deadlocks and automatic drive-away door locking. In addition to the S+ specification, the Professional specification included air-conditioning, Bluetooth, a half-height bulkhead & grille or full steel bulkhead and 14-inch wheel-trims.

The Bipper S+ changed its name late in 2009 to the SE with a slightly improved level of specification.

Options included a Comfort Pack featuring driver’s seat height adjustment, lumbar support and armrest, reach and rake adjustable steering and integrated clipboard. The Tough Pack added 15” wheels and 185/65 R15 tyres, door sill protectors and mouldings, washable cabin floor covering, raised suspension, front and rear mudflaps and an under-engine protection tray (not available on 2 Tronic).

Servicing is required every 20,000 miles or two years, regardless of engine type. To reduce costs and downtime further, the oil change and air filter, diesel filter, pollen filter and brake pad replacements were all scheduled to coincide with the service interval. The timing belt replacements are due every 140,000 miles or 10 years on the diesel engine, and 90,000 miles or 10 years on the petrol version.

In August 2010, PSA decided to extend the current 60,000-mile warranty to 100,000 miles.

In April 2016, the Fiat Fiorino received a facelift incorporating a new front bumper, a new steering wheel and infotainment system in the cabin. New Euro 6 compliant engines were also introduced at this time. Although both PSA vehicles received the new Euro 6 engine, the Bipper and Nemo did not receive a facelift and were dropped from their light commercial vehicle line-up late in 2017.

A practical choice

Andy Picton, Glass’s Chief Commercial Vehicle Editor recommends the Peugeot Bipper as “a practical and economical van ideally suited to light urban deliveries”

Andy added, “Although no longer available new, the Bipper is a popular van in the used market. Its diminutive footprint belies a van that can accommodate a standard Euro pallet, offer a payload on a par with bigger vans and still returns over 60mpg. Ideal for urban courier work, the Bipper is supported by a strong Peugeot dealer network”.

Peugeot Bipper Professional 1.3HDi 80bhp Euro 6 van (2016 – 2017)

The Peugeot Bipper range

One body style
5-speed manual gearbox
Three trim levels
Euro 6 engine line up
660kg payload
Combined 64.2MPG/CO2 emissions – 115g/km
Variety of options
Available in a choice of six exterior colours – three solid and three metallic

Five models made up the Bipper van range – S, S ATV (All-Terrain Vehicle), SE, Professional and Professional ATV. All models were powered by the same 1.3HDi 80bhp Euro 6 engine, with standard specification including ABS and ESP, Driver’s ladder frame protector, radio/CD player, 12v plug, 6 tie-down load area hooks, 15” steel wheels and twin rear asymmetrical doors.

Additionally, the recommended 2016 Bipper Professional added as standard; air conditioning, side loading door, half-height bulkhead with mesh grille, TomTom GO 5000 Semi-integrated Navigation system, ‘Blue & Me’ handsfree Bluetooth phone kit, driver’s seat height adjustment and lumbar support, driver’s seat armrest, electrically adjustable heated door mirrors, reach and rake adjustable steering wheel and integrated A5 sized clipboard.

Bipper Dimensions	Bipper Load Space	Bipper Miscellaneous
Length	3,864mm	Length	1,523mm	Gross Vehicle Weight	1,750kg
Width	2,019mm	Max Width	1,473mm	Payload	660kg
Height	1,782mm	Width between arches	1,046mm	Warranty	3yrs/100,000m
Wheelbase	2,513mm	Height	1,178mm	Service Intervals	20,000m
		Volume	2.5m3

2016 Pros	2016 Cons
Economical diesel engines	Front Suspension bearings can fail
Large cargo area	Older engines prone to faulty connecting rod bearings
Agile city van	Battery can fail due to insufficient charge
Low running costs	Standard safety kit is basic – ABS and driver’s airbag
	Diesel engine has to work hard on motorway trips
	Noticeable body roll on bends

Glass’s recommendation

Peugeot Bipper Professional 1.3HDi 80bhp Euro 6 van

Registration Plate: 2016/16

Mileage: 53,000 miles

Glass’s Trade £2,950 Excl VAT

Glass’s Retail £4,075 Excl VAT

A Look At The Renault Megane

At the Frankfurt Motor Show in September 1995, Renault unveiled the Megane, the successor to the Renault 19. The Megane was Renault’s first model to reflect their new focus on safety. It featured a pillar mounted three-point seatbelt for the rear middle seat replacing the lap strap, and a year later passenger airbags became standard. A far cry from the safety features we enjoy today, but a real step forward versus contemporary competitors.

Over four generations, the Megane has been on UK roads since 1996. It has proved a diverse model range having been available as a three and five-door hatchback, saloon, coupe, convertible, estate and MPV at various points in its lifecycle.

Unveiled as a replacement to the Renault 19, it was in effect essentially only a reskin, using modified chassis, engines and transmissions from the 19.

In the spring of 1999, Renault launched a mild facelift with a modified grille, improvements to safety features and upgraded equipment whilst introducing 16 valve petrol engines. An estate body style also joined the model range.

By September 2002 Renault launched Megane II. As adventurous as its predecessor was staid, the Megane II range created demand for Megane when many buyers would never have considered the ageing and frumpy original. Spawning a huge number of variants. Aside from the original three and five-door hatches, there was a compact estate, a saloon and the sleek Coupe Cabriolet as well as the Scenic and Grand Scenic variants.

This second-generation voted as ‘European Car of the Year’ in 2003, became the first vehicle in its class to receive a five-star EuroNCAP rating. The body styling was based on Renault’s new design language premiered on the Avant Time and immortalised in the 2003 ‘shaking that ass’ advertising campaign. Compared to the first generation, this version benefitted from a raft of innovative technologies, including a keyless ignition system. January 2006 saw the second generation facelift, with changes to the interior, enhanced specifications levels and a remodelled nose.

In October 2008 the Megane III launched in 5 door hatchback and coupe body styles to subdued UK reviews. Although the two models benefitted from differing designs with the coupe having a sportier stance and the hatchback reflecting a more conservative design, the overall bland styling limited the appeal of Megane III in the UK.

Mid-2009 saw the estate version, the sports tourer launch, the following summer the coupe cabriolet version was added to the range. 2012 saw its first facelift which included three new engines, one petrol and two diesels. In 2014 the final facelift for the third generation vehicle included more powerful engines while the hatchback, coupe and estate variants got styling upgrades to match Renault’s new styling.

At the Frankfurt motor show in September 2015, Renault unveiled the fourth-generation Megane which went on sale the following July. Based on the same platform as the larger Espace and Talisman – big Renaults we don’t get in the UK – it benefits from their technology and much of their style. A significant leap forward from Megane III. It is larger and lower than the predecessor and only available as five-door hatchbacks and estate versions.

Over the years, the Megane has proved to be a popular and practical choice, offering a mix of style and space, together with value for money, particularly in the used car market. The following chart shows the average Glass’s residual value for a three-year-old Megane compared to the average for the C segment, containing models such as the Volkswagen Golf, Ford Focus and Vauxhall Astra. It is clear, in this segment, that petrol models consistently hold more residual value and that in general, Megane values track marginally below the segment average, adding to their appeal in the used car market.

Average RV% Renault Megane vc C-Segment graph

Away from the volume derivatives in the C-Segment, since 2004 Renault has marketed the Renault Megane RS (Renault Sport), a series of high-performance hatchback models based on the Renault Megane. The Megane RS has won many awards such as “Best hot hatch” from What Car? (2010–2014), “Highest placed non-supercar” in Evo’s annual Car of the Year test 2011 and “Best hot hatch” from Top Gear.

Creating a halo for the Megane brand, in the same manner as the Golf GTi for Volkswagen, the Megane RS delivers excitement where the standard range has traditionally missed. Now in the third incarnation, based on Megane IV the newest Megane RS is only available in 5-door hatchback body style and was developed with the assistance of Renault F1 Team driver Nico Hulkenberg.

Secret Diary Of a Forecast Editor June 2020

When Tesla launched the Model 3 in the UK it was even more of a game-changer than the hugely successful Model S. A mid-sized saloon delivering excellent range with zero emissions. With a starting price close to £40,000 it makes an excellent proposition, especially for fleet users. Pitching the Model 3 into the heart of fleet driver territory whilst giving company car drivers usually choosing premium upper medium diesel saloons, a viable electric option. The main rivals capable of offering affordable long-range battery electric vehicles (BEVs) of a practical size previously were the Nissan Leaf, Hyundai Kona Electric and the Kia e-Niro.

The resulting popularity of the Model 3 is such that Tesla have not been able to supply enough vehicles to satisfy UK demand. This demand shows little sign of falling. Due to the lockdown and the stalled delivery of the majority of new cars, the Tesla Model 3 had the highest registration tally of all new cars in May 2020 according Society of Motor Manufacturers and Traders (SMMT) data with 852 registrations. Clearly, this figure is much lower than the biggest seller would ordinarily achieve in a month, but it highlights that due to Tesla’s online ordering process, the demand and supply of their cars has continued.

The Pony interloper

Tesla’s grip on the company car market could be put under pressure in the coming months as Ford prepares to launch what might prove to be a worthy adversary of the Model 3.

The new Ford Mustang Mach E appears to be a credible alternative for those that may have previously only considered the Model 3. Of course, there will be those who will still only consider the Tesla due to the favorable image that the brand has managed to conjure in the relatively short life of the company, but the Mustang Mach E is arguably a better-looking car whilst also offering the popular SUV silhouette.

This is Ford’s first ground-up BEV project. Created as a family sized SUV, fulfilling the requirements of high proportions of buyers today, the Mustang name instantly gives the vehicle an exciting and emotional integrity.

Ford have continued communicating with the Glass’s editorial team regarding the Mustang Mach E during lockdown. They started taking pre-orders online and it is proving very popular with the First Edition already selling out.

Andy Cutler, Glass’s Forecast Editor commented, “I for one really cannot wait to get behind the wheel of the Mustang Mach E; I was supposed to drive it just as lockdown started and this has meant that we will have to wait a while longer to get behind the wheel which is really frustrating”.

Mach E Details

The Mustang Mach E is a fully electric SUV available with rear wheel drive (RWD) or all-wheel drive (AWD), with a regular range or extended range drivetrain. The WLTP maximum range for the RWD standard mileage model is 280 miles and the car will be available for just over £40,000. The extended RWD model is priced just under £50,000 and is capable of a maximum WLTP range of 370 miles. AWD versions are also available, however the range does drop slightly.

The car comes without door handles; instead, it senses the presence of the key and as you approach and a sensor on the B pillar lights up and you touch it to enter the car, it automatically locks itself when you leave the vehicle.

The Mach E uses Ford’s latest generation of their SYNC system: this system allows the driver to customise and update the Mach-E’s drive right from a mobile device or desktop. It also includes a cloud-connected navigation system, along with modem-based over-the-air updates which Ford claim will be almost invisible to the user. Interacting with the Ford SYNC system will be via voice commands or the 15.5” touchscreen display.

The standard specification is extensive although if you want slightly more kit then go for the extended range model benefiting from panoramic roof, 360 Degree Camera and B&O Premium Sound System amongst other additional specification.

The Mustang Mach-E is equipped for both AC charging, with its 10.5 kW on-board charger, and DC charging. This allows the standard range model to take a 115kW charge and the extended range model will take 150kW allowing top ups of 73 miles in about 10 minutes. With a home charging unit you get around 27 miles per hour so overnighting charging should be enough to attain full range.

The rise of the BEV

Over the past couple of years, ranges have increased greatly and purchase prices have reduced, with the latest models making compelling cases for being your next vehicle. Throw in the fact that incentives for company car drivers are currently so rewarding it is understandable why demand for the latest BEVs is so high.

The issue for many BEVs capable of achieving longer ranges has been the initial purchase price. Putting them out of reach of the majority of drivers, models such as the Tesla Models S & X, Jaguar i-Pace, Audi e-Tron and Mercedes-Benz EQC all costing over £60,000. The Tesla Model 3, Kia e-Niro, Hyundai Kona Electric and now the Mustang Mach E offer real-world range twinned with prices making them more affordable for businesses to run as company cars for higher mileage users. This is the dawn of a new automotive era. Soon there will be many more rivals offering excellent range at more affordable prices, for now though, the Mustang Mach E is a car to look forward to driving whilst the competition between manufacturers hots up.

The Automatic Choice

The rise of automatic gearbox.

Ever since the first horseless carriages, engineers have tempted customers into vehicles where there were fewer pedals. The trend started in the USA and spread across the Atlantic with Europeans finding new and smoother ways of delivering automatic transmissions. These transmissions were once the preserve of premium and luxury motor cars, but have since been associated with vehicles in all segments including vans, buses and of course cars.

UK market penetration

From a market penetration perspective, in the UK by the year 2000, the new car registration ratio of manual transmission cars compared to automatics was around 86% manual to 14% automatic. From 2000 to 2010, a small shift occurred with manuals decreasing to 82% whilst automatics increased to 18%.

Driving the demand increases was the mating of automatic gearboxes with low revving, high torque diesel engines with excellent fuel economy. This was the ideal combination for an automatic gearbox. Unfortunately, few manufactures were able to capitalise on this increased demand, as automatic gearboxes struggled with reliability under such high torque loads.

Cog increases

By 2010, most manufacturers were producing reliable automatic gearboxes. The game-changing factor was the ability to increase the number of gears within the gearbox immediately improving fuel economy. The additional gears gave these new gearboxes increased flexibility for cruising at high speed in very high gears whilst still being able to crawl around town at low speed in low gears.

Like most technological advances user perceptions takes longer to change. Gradually the switch from manual transmission to automatic, in its many different versions, has accelerated. By the end of 2019, increased market penetration had driven registration of automatic cars to 36% up from 17% in 2009. In terms of registrations, this is a rise from just 335,314 in 2009 to 827,676 in 2019. Registration figures for the first half of 2020 show that the percentage of automatics sold is up another three percentage points compared to 2019, albeit the overall registrations for 2020 is artificially low due to Covid-19. However, the upward trend for automatics is very clear.

The release from the premium segments of paddle and button gear changers linked to automatic gearboxes gave a sporty image improvement to automatics moving them away from pipes and slippers to new younger audiences. This new desirable image has gone a long way to shift automatic gearbox perception long associated with poor economy and lacklustre performance.

Wholesale changes

In the auction market, data shows increasing volumes for both manual and automatic gearboxes from 2010 until 2019 when manual gearbox penetration starts to decline whilst automatic gearboxes continue to increase. Wholesale volume of automatic gearboxes in 2010 stood at 119,625 cars increasing to 368,772 cars in 2019.

The automatic choice

New car registration data shows demand for automatic gearboxes is continuing to rise with 39% of all cars registered so far this year (2020) being equipped as an automatic. It is likely, that within the next few years half of all vehicles registered will be automatics. This is partly driven by an ageing UK population and in parallel partly due to the benefits that have transformed automatic gearboxes. Combine this with ever slower and queuing traffic; the automatic gearbox has become an automatic choice.

Used-car transactions grow across Europe in July

The latest data from the respective associations in the major continental European markets reveal that the volume of used-car transactions grew in July 2020 compared to the same month last year. Autovista Group senior data journalist Neil King considers this return to growth across Europe’s used-car markets as the sector tentatively recovers from the coronavirus (COVID-19) crisis.

Used-car sales increased by 13% year-on-year in both France and Germany in July, and were up 9% in Italy and 6% in Spain. Through to July, Germany is the only major European used-car market that has not suffered a double-digit decline, with a comparatively modest contraction of 8%.

Used-car data is not yet available for the UK for July but is expected to follow the growth trend, especially given the 11% surge in new-car registrations in the country’s first full month of trading since February. This is even without increased buying incentives, which have been introduced in France, Germany, Italy and Spain.

Used-car transactions, year-on-year percentage change, July and year-to-date 2020

Used-car transactions, y-o-y percentage change graph, July and year-to-date 2020 — *Sources: CCFA, KBA, ANFIA, GANVAM/IEA*

Outperforming new-car registrations

Prior to the positive results last month, the volume of used-car transactions declined in the first half of 2020 compared to H1 2019 in all five major European markets. However, the downturns in the first half of 2020 were not as dramatic as the contractions in new-car registrations.

Used-car transactions and new-car registrations, year-on-year percentage change, H1 2020

Used-car transactions and new-car registrations, y-o-y percentage change graph, H1 2020 — *Sources: CCFA, KBA, ANFIA, ANFAC, GANVAM/IEA, SMMT*

In the UK, the used-car market contracted by 28.7% in the first half of 2020, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT) on 11 August. Following a comparatively modest decline of 8.3% in the first quarter of 2020 as the COVID-19 lockdown from March negated growth in January and February, there were only 1,039,303 changes of ownership in the second quarter, equating to a 48.9% slump in the second quarter. However, ‘the pace of decline eased as the quarter progressed, from a peak year-on-year loss of 74.2% in April to 17.5% in June, as private sellers and buyers got back on the move and transactions began to restart,’ the SMMT stated.

‘As devastating as these figures are, with full lockdown measures in place for the whole of April and May, they are not surprising. As the UK starts to get back on the move again and dealerships continue to re-open, we expect to see more activity return to the market, particularly as many people see cars as a safe and reliable way to travel during the pandemic. However, if we’re to re-energise sales and the fleet renewal needed to drive environmental gains, support will be needed for the broader economy in order to bolster business and consumer confidence,’ commented Mike Hawes, SMMT chief executive.

Continental transactions

There were similar contractions of the used-car market in Spain and Italy. Spain suffered the most, with 31.7% fewer changes of ownership in the first half of 2020 than a year earlier, but new-car registrations declined by more than 50%. There was a phased approach to relaxing the lockdown measures in Spain, which largely explains why both the new- and used-car markets were still weak, even in June. However, dealers can now fully reopen, and the introduction of the MOVES II incentive scheme for new battery-electric vehicles (BEVs) and plug-in electric hybrids (PHEVs) and the RENOVE scrappage scheme have stimulated the Spanish market since their introduction in early July.

Used-car demand fell 31.6% year-on-year in Italy in the first half of 2020, compared to a 46.1% contraction of the new-car market. However, many buyers of both new and used cars decided to hold off until government incentives came into effect at the beginning of August as part of the Decreto Rilancio (Relaunch Decree). This new scheme comes on top of the Ecobonus scheme, which incentivises cars producing less than 20g of CO2/km.

Electric and hybrid cars can now benefit from up to €10,000 in subsidies when scrapping an older vehicle. €3,500 is now provided for scrapping vehicles that are at least 10 years old when buying a new Euro 6 vehicle with CO2 emissions up to 110g/km, and a price of up to €40,000. Dealers will put forward €2,000 towards the incentive, while the state provides €1,500. Without trading in an older model, the funds drop to €1,750.

In France, the 17.4% decline in used-car sales in the first half of 2020 was a significantly better performance than the 38.6% fall in new-car registrations. Whereas the incentives introduced on 1 June for new BEVs and PHEVs remain, the additional bonus for trading in older cars for cleaner new and used cars was exhausted before the end of July. The scrappage scheme reached its 200,000-vehicle cap after just two months, but the Ministry of Ecological Transition announced it would be replacing the recovery scheme with a conversion bonus, applicable from 3 August.

Germany has weathered the COVID-19 storm better than the other major European markets, with only 11.4% fewer changes of ownership in the first half of 2020 compared to the same period last year. New-car registrations have also suffered less than in the other major markets, but were still down 34.5% in the first half, and have therefore been outperformed by used-car demand here too.

Residual-value resilience

As used-car markets have proven more resilient than new-car markets, the impact on residual values (RVs) has been rather marginal in European markets so far this year. Nevertheless, a ‘three-speed’ development of residual values (RVs) is emerging. The UK and France are benefitting from pent-up demand and some markets have had a rapid reaction to the impact of COVID-19, but most are ‘late starters’ with limited value movements thus far.

Residual value inteligence coronavirus tracker July 2020 — *Source: Autovista Group – Residual Value Intelligence Coronavirus Tracker*

As COVID-19 lockdowns are left behind, thoughts turn to economic recovery. However, as the latest update to the Autovista Group whitepaper ‘How will COVID-19 shape used car markets’ explains, in the last month, the situation has taken a gloomier turn. Download your copy here.

Car Market Overview August 2020

New car sales

Manufacturers and dealers will take some comfort from the latest new car registration statistics from the Society of Motor Manufacturers and Traders (SMMT). Following a full month of trading across the UK, the new car market produced the first monthly positive result this year, being 11.3% up on July 2019, with pent-up demand finally materialising in registration numbers.

As July is not a high volume registration month, the increase has done little to impact the overall year-to-date position with the market sitting 41.9% lower than 2019 at just over 828,000 units. However, July’s result will give dealers and manufacturers some confidence that demand remains for new cars. With some attractive deals currently on offer, August should be similarly positive. However, the high-volume September plate change is the focus month for the industry, where delivering an increase versus September 2019 may prove difficult.

Used market

With some auction providers reporting higher stock levels than last year and an increase of over 10 percentage points in the first-time conversion rate to 86.4%, it underlines the buoyancy of July’s auction market. Hammer prices were also strong, exceeding Glass’s Trade values by 3.3% on average, leading to an increase in Glass’s values in August. With auction activity and hammer prices showing signs of further growth through August, the expectation is further increases in values in September, bucking seasonal trends.

A strong retail market is driving this exceptional wholesale activity. In July the average days it took a dealer to sell a used car fell from 82 to 59 days according to Glass’s Live Retail pricing tool, rapidly returning to pre-lockdown levels (39 days in March) as fresh stock is added to forecourts.

Used Car Market Update August 2020

Auction Wholesale Market

The recovery of the UK used car auction market continued through July. The key metrics of first-time conversion rate, sale value and sale volume are returning to track with their pre-lockdown trends. However, the rate of improvement is slowing suggesting that an over-recovery, where the market overshoots and then goes through a period of decline, is becoming less likely.

Used car market first time conversion rate graph August 2020

Sale volumes have recovered to pre-lockdown levels, despite year-to-date new car registrations being down over 40% due to the lockdown. Reduced new car registrations are impacting the volume of part-exchanges generated and the number of contract hire and lease de-fleets.

With the major auction groups continuing to hold only online sales, some buyers continue to be wary about spending substantial amounts of money on vehicles they have seen in person. However, this trust continues to improve as buyers become more accepting of the descriptions provided by the auction houses.

With traditional physical auctions unlikely to return before the end of the year, all buyers are going to have to adjust to the new way of sourcing stock. Whilst there are some challenges around online auctions, there are also advantages – particularly the ability to visit several auctions all over the country in one day rather than spending several hours in the day travelling to one or two physical sites.

Used Retail Market

The used car retail market is showing similar recovery behaviour to the wholesale market. The key measures – Average Sale Price and Days-to-Sell are both positive. Just like the auction market, their rate of recovery is slowing, suggesting they are approaching their natural level.

Used car market average sales price graph August 2020

Glass’s Live Retail pricing tool reports on the average time a car spends on the forecourt, with lower days to sell indicating higher retail demand. The average for July of 59.1 days is still 30% higher than expected, but in the circumstances is a distinct improvement over June’s average of 81.9 days. If the decreases continue over the coming weeks the value for August will be similar to August 2019.

Used car market average days to sell graph August 2020

Next Month

The trends of the key metrics for both the wholesale and retail markets continue to be positive. The rates of improvement are slowing, reducing the spectre of a “boom and bust” recovery and show trading is likely to return to seasonal levels within a few months. September will see the launch of the 70 plate generating more used car volume and activity, although typically the effect of this will not be seen until the latter part of the month.

Overall, registrations in September could exceed those for March, showing how “back to front” this year’s car market has been compared to typical seasonal activity. The new car market is still catching up, however, Glass’s data suggests that total registrations for 2020 will be around 30% lower than in 2019.

Podcast: Running the numbers on incentives, registrations and residual values

The Autovista Group Daily Brief Team discusses the biggest automotive news stories of the last fortnight. In this episode, Tom Geggus talks incentive schemes, Neil King reviews registration figures and returning special guest Christof Engelskirchen wraps up residual values.

https://soundcloud.com/autovistagroup/running-the-numbers-on-incentives-registrations-and-residual-values

You can also listen and subscribe to receive further episodes direct to your mobile device on Apple, Spotify and Google Podcasts.

Carmakers’ financial performance highlights COVID-19 crisis – Part 2

Daily Brief editor Phil Curry looks at carmakers’ 2020 quarterly and first-half financial performance, exploring how the coronavirus (COVID-19) pandemic has affected the automotive industry. In this second part, Curry explores the impact of COVID-19 on the financial performance of BMW, Daimler and Toyota.

The BMW Group delivered 962,575 BMW, Mini and Rolls-Royce premium-brand vehicles to customers worldwide in the first six months of 2020, down 23% compared to the first half of 2019. Group revenues fell 10.3% to €43.2 billion. Earnings before interest and tax (EBIT) for the six-month period amounted to €709 million, down 74.6%.

As BMW expected, the negative impact of the COVID-19 pandemic was felt more sharply in the period from April to June. The carmaker reported a loss of €666 million in Q2, its first quarterly loss since 2009.

‘Our swift responsiveness and consistent management strategy enabled us to limit the impact of the corona pandemic on the BMW Group during the first half of the year,’ said Oliver Zipse, BMW chairman. ‘We are now looking ahead to the second six-month period with cautious optimism and continue to target an EBIT margin between 0% and 3% for the automotive segment in 2020. We are monitoring the situation very closely and managing production capacities in line with market developments and regional fluctuations in customer demand.’

Daimler – a challenging quarter

Daimler has issued a number of profit warnings in recent years, as it has struggled with EV development budgets, falling sales and the implementation of the Worldwide Harmonised Light-vehicle Test Procedure (WLTP). The COVID-19 pandemic has therefore added another layer to an already complicated situation.

The German carmaker reported that revenue slipped ‘significantly’ by 29% to €30.2 billion in Q2 2020. It reported a loss before interest and tax of -€1.7 billion, with a net loss of €1.9 billion.

‘Due to the unprecedented COVID-19 pandemic, we had to endure a challenging quarter,’ said Ola Källenius, chairman of Daimler. ‘But our net industrial liquidity is a testament to effective cost control and cash management, which we must continue to enforce. We are now seeing the first signs of a sales recovery – especially at Mercedes-Benz passenger cars, where we are experiencing strong demand for our top end models and our electrified vehicles. Going forward, we are firmly determined to continue to improve the cost base of our company. At the same time, we are committed to our key strategic objectives: to lead in electrification and digitalisation.’

Daimler countered the drop in demand by quickly suspending production in March, April and May, as well as introducing short-time working. To safeguard the company’s financial strength, expenditure and investments were focused on the most critical future projects. The company currently expects to return to profit by the end of the year.

Toyota turns a profit

Unlike Nissan, and other Japanese carmakers, Toyota reported a profit, albeit significantly reduced, in its 2021 financial year Q1 results, covering the period from 1 April to 30 June. The carmaker’s operating profits plunged by 98% compared to the same period last year, coming in at ¥13.9 billion (€110 million).

Net income tumbled 74% to ¥158.8 billion, as total retail vehicle sales, including those from Daihatsu and Hino, fell by 32%.

Toyota attributed its profit to a number of key elements that played out in the three months. First, the effects of foreign exchange rates decreased operating income by ¥75 billion. Secondly, cost-reduction efforts increased operating income by ¥10 billion. Lastly, the effects of marketing activities decreased operating income by ¥810 billion yen, largely due to the fall in sales volume caused by the spread of COVID-19.

The carmaker has not revised its forecasts for the year, which were made in May 2020, as it operates an April to March financial year. Therefore, it was able to take the COVID-19 effect into account when planning its year ahead. The company expects operating income will fall 79% to ¥500 billion in 2020/2021 while net income will slide 64% to ¥730 billion.

‘While we expect an increase in consolidated vehicle sales, we have left those forecasts unchanged given, for example, the possibility that the business environment will change significantly depending on such factors as the future spread of COVID-19 and the state of its containment,’ the company said.

Cautious optimism

Throughout the recent spate of financial results, one thing is clear. No company is currently able to accurately forecast its full-year results. Some have tried, with caveats added in case things change drastically, while others have simply said they are not in a position to produce forecasts in what is a volatile market.

However, there is cautious optimism, and as countries around the world start to get a grip on how to handle the COVID-19 pandemic, it is hoped that the extreme measures taken in March and April will not be repeated. What could cause further issues for the automotive industry is the economic impact, which has pushed some countries into recession and is increasing unemployment. These two factors that do not bode well for the purchase of new vehicles.

Read part one of Curry’s financial results round-up here.

Carmakers’ financial performance highlights crisis behind COVID-19

Daily Brief editor Phil Curry looks at carmakers’ 2020 quarterly and first-half financial performance, and how the coronavirus (COVID-19) pandemic has affected the automotive industry. In this first part of two, Curry considers VW Group, Nissan, Renault and Ford.

Europe’s economy is in a state of flux in the wake of COVID-19 lockdowns, with Italy leading the way in extreme measures put in place to prevent the spread of the virus.

Some carmakers have weathered the storm better than others, and many remain optimistic that the impact is merely a ‘blip’ in their financial results, with improvements already developing.

VW – one of the most challenging periods

In its H1 2020 results, Volkswagen Group (VW) reported an operating loss of €803 million (before special items). This expanded to an overall loss in the first half of 2020 to almost €1.5 billion when special items are included. Vehicle sales were down 30% compared to the first half of 2019, while production fell 32.5%. Group sales revenue decreased by 23.2% to €96.1 billion.

Frank Witter, member of the group board of management responsible for finance and IT, said: ‘The first half of 2020 was one of the most challenging in the history of our company due to the COVID-19 pandemic. The health of our employees, customers and business partners is still the top priority. With our 100-points plan to ensure maximum health protection, we have, for example, created the best possible prerequisites for a safe working environment. At the same time, we introduced comprehensive measures aimed at reducing costs and securing liquidity early on, which enabled us to limit the impact of the pandemic on our business to a certain degree.

‘Thanks to the great team effort, we have gradually been able to ramp up operations within the Group and up until now, have steadily managed to navigate through this unprecedented crisis. Due to the positive trend exhibited in our business over the past few weeks and the introduction of numerous attractive models, we look cautiously optimistic to the second half of the year.’

Nissan – major losses

For the April to June period, consolidated net revenue at Nissan was ¥1.1742 trillion. The operating loss was ¥153.9 billion, equivalent to an operating margin of -13.1%. The net loss was ¥285.6 billion.

In its first quarter, Nissan’s global automotive sales fell by almost half amid the pandemic. To limit the spread of COVID-19, the company suspended production at manufacturing sites around the world. Nissan’s plants have since resumed operations but face reduced utilisation of their capacity due to lower demand. The company’s performance continues to be impacted by the challenging business climate, it said in a release.

Nissan raised concerns about its financial performance in April, saying that its full-year consolidated earnings ‘may differ by more than 30% from the previous financial forecast’ that was made in February. It is expecting an operating loss of ¥470 billion (€3.7 billion) for the year to March 2021.

Renault – impacted by Nissan

French carmaker Renault Group announced a €7.4 billion net loss in the first half of 2020, with the carmaker highlighting the negative impact of alliance partner Nissan’s results.

The contribution of associated companies came to -€4.8 billion, compared with -€35 million in the first half of 2019. ‘This decline came mostly from Nissan’s contribution, down €4.796 billion including -€4.3 billion of impairments and restructuring costs,’ the carmaker said.

Global sales dropped by 34.9%. However, the company stated it had a ‘high-level order book’ at 30 June, and sales of its Zoe electric model were up by 50%, highlighting the appeal of the technology. It is also likely that the generous incentive scheme in France helped the carmaker to increase sales in the period from 1 June.

No reliable guidance

However, Renault is unsure of how it will perform in the rest of 2020. ‘Given the uncertainties around the health situation, both in Europe and in emerging markets, Groupe Renault estimates that it is not in a position to give a reliable guidance for the full year,’ it stated.

Luca de Meo, CEO of Renault, declared: ‘Although the situation is unprecedented, it is not final. Together with all of the Group’s management teams and employees, we are fully dedicated to correcting the situation through a strict discipline that will go beyond reducing our fixed costs. Preparing for the future also means building our development strategy, and we are actively working on this. I have every confidence in the Group’s ability to recover.’

Ford quarter supported by Argo AI

Ford benefited from an investment made in its autonomous subsidiary Argo AI by VW Group, as part of a collaboration deal on driverless and electric-vehicle technology. Without the investment, Ford reported a loss for the second quarter of -$1.9 billion. Including the investment, the firm reported a second-quarter profit of $1.1 billion, up by $1 billion on the similar period in 2019.

Its H1 results reflect the wider picture of the coronavirus impact with six-month losses. For the first half of 2020, the company reported a loss of $900 million – a negative impact of $2.2 billion compared with the same period in 2019. Global sales fell 37% compared to the first six months of 2019.

Ford directed much of its capabilities and resolve in the second quarter to understanding and helping to meet the coronavirus-related needs of customers, dealers, suppliers, healthcare professionals and first responders, and patients and communities. Initiatives like enhanced and new online services, and deferred financing payments on new vehicles in the US, benefitted customers and Ford as commerce stalled, then began to recover. However, with the US yet to emerge from its first wave of coronavirus infections, let alone face a second wave, Ford’s global business may yet be facing deeper challenges in the second half of 2020.

In a follow-up article to be published tomorrow (14 August), Daily Brief editor Phil Curry explores the impact of COVID-19 on the financial performance of BMW, Daimler and Toyota.

BMW promotes hydrogen technology with new model in 2022

BMW has confirmed that its i Hydrogen Next technology will go on sale in 2022, with a new model, based on the current X5, becoming the first to feature the powertrain.

The carmaker announced plans to develop a hydrogen drive system for sale last year. However, since then Daimler has pulled out of developing the technology for passenger vehicles, while pressure has increased on all carmakers to create electrified drivetrains to lower average emissions. But the German manufacturer remains committed to hydrogen, seeing the long-term benefits of the zero-emission technology.

The carmaker has been working with Toyota, a leader in the development of hydrogen powertrains, to develop the technology for its vehicles. Since summer 2015, the BMW Group has been testing development vehicles, based on the BMW 5-Series GT, that are equipped with a jointly developed fuel-cell system.

The fuel-cell stack that will power the new BMW i Hydrogen NEXT model is an original development of the BMW Group, according to the company. The individual cells of the fuel cell come from Toyota. An automated research facility for the production of fuel-cell stacks is used in the manufacture of the X5 pilot fleet.

The testing of innovative production technologies is an important step in the preparation of scalable, time, cost and quality optimised production of hydrogen fuel-cell drives.

https://www.youtube.com/watch?v=PmSXAbkvoE8&feature=emb_logo

‘In the future, the hydrogen fuel-cell drive can be an attractive alternative to battery-electric vehicles (BEVs), especially for customers who do not have access to their own charging infrastructure and who often drive long distances,’ the company said. ‘With a sufficient refuelling infrastructure, hydrogen vehicles offer great flexibility, since the full range is available again after a short refuelling process of around four minutes – regardless of temperature conditions.’

Beneficial technology

Hydrogen has the potential to sit alongside BEV technology and create a two-fuel system once various countries ban the internal combustion engine. It offers drivers a longer range than some BEVs. At the same time, refuelling times are comparable to petrol and diesel, meaning those covering longer journeys would be able to do so with ease in a vehicle that only emits H2O from the exhaust.

Toyota has led the way with hydrogen development and was the first to bring a production car to market, albeit in small numbers. Hyundai is also developing the technology, while Daimler, which pulled out of researching and producing fuel-cell passenger cars, will instead focus on the use of hydrogen in larger commercial vehicles.

‘What we see today is a rapid shift into battery, because to produce fuel-cell power, you need to have an electric powertrain first,’ Toyota’s manager of alternative fuels, Jon Hunt, said at a summit earlier this year. ‘So that’s where the development is occurring, before moving to fuel-cell electric vehicles (FCEV).’

‘Notwithstanding that, there are many manufacturers who have huge issues of achieving their emission reductions to avoid fines. That means that they have to have a certain proportion of zero-emission cars. That is distorting the market.’

Coronavirus impact

However, the current situation the market finds itself in following the coronavirus (COVID-19) pandemic and associated lockdowns may change the timeline of hydrogen development.

Carmakers are facing large fines if they fail to bring down their average fleet emissions by the end of 2021, and with the diesel market collapsing, the only way to do this is by manufacturing a technology that is already further along the development path – and that is battery-electric. With COVID-19 and the resulting economic turmoil, development budgets will likely be cut, and therefore hydrogen technology will suffer.

Yet with Toyota, Hyundai and now BMW actively pursuing hydrogen as an alternative fuel of choice, their development may aid others in the research of the technology. Toyota has already announced it will allow access to its patents around hydrogen.

Committed choice

BMW sees hydrogen as giving its customers another choice when it comes to vehicle powertrains.

‘Politicians have recognised the importance of green hydrogen for the energy system of the future,’ said BMW CEO Oliver Zipse, referring to the support of the German Government with the National Hydrogen Strategy. ‘We expressly welcome the various initiatives. For road traffic, an expansion of the infrastructure is now required, which takes into account the needs of both commercial vehicles and cars. Depending on how the general conditions develop, hydrogen fuel-cell technology has the potential to become another pillar in the BMW Group’s drive portfolio.’

Zipse added to his feelings about hydrogen technology at BMW’s annual general meeting (AGM), saying: ‘We continue to invest consciously in various technologies. This includes hydrogen fuel-cell technology. Ultimately, this is the most intelligent and fastest way to effective climate protection.’

Outside influence

The BMW Group also has experience with the use of hydrogen outside of drive development. The company has always followed the path of resource-saving and sustainable production of vehicles and is continuing this path with the use of hydrogen.

The carmaker’s Leipzig plant has been operating hydrogen-powered industrial trucks since 2013. The use of innovative hydrogen technology offers the site the long-term opportunity to further promote decarbonisation.

‘With the National Hydrogen Strategy and the billions promised to be implemented in the economic stimulus package, the Federal Government has sent a clear signal,’ said Peter Altmaier, Federal Minister for Economic Affairs and Energy, while visiting the Leipzig plant recently. ‘We will shape the framework and actively support the economy in the development and use of hydrogen technology. However, the marketable implementation of hydrogen technologies lies with the companies. And I am therefore very happy that there are many companies like BMW in Germany that have the vision, the courage and the innovative strength to make this technology a market success.’

Vehicle details

The system performance of the BMW i Hydrogen NEXT comes to a total of 275kW (374hp) according to the carmaker.

‘With the drive system of the BMW i Hydrogen NEXT, the fuel-cell system generates up to 125 kW (170hp) of electrical energy, which is obtained from the chemical reaction of hydrogen and oxygen from the air,’ says Jürgen Guldner, head of BMW Group Hydrogen Fuel Cell Technology and vehicle projects. ‘This means that the vehicle only emits water vapour.’

The electrical converter, which is located below the fuel cell, adjusts its voltage level to that of the electrical drive and the power buffer battery. This is fed by both the kinetic energy from braking and the energy of the fuel cell.

The vehicle itself houses two 700 bar tanks, which together hold six kilograms of hydrogen. ‘This guarantees long ranges in all weather conditions,’ Guldner adds. ‘The refuelling process only takes three to four minutes.’

LCV Marketplace Update August 2020

New Light Commercial Vehicle (LCV) Market

With the coronavirus lockdown easing and businesses back to work, it is encouraging to record a 7.1% growth in the new light commercial vehicle market. This follows four months of double-digit decline. Overall, 27,701 new LCVs were registered during the month, with growth in all but the Vans under 2.0-tonnes sector.

Performance year-to-date has declined 38.6%, with 136,577 units registered during the first seven months of 2020. Although July was an improvement on the same month last year, the initial pent up demand is likely only to mask a fragile market. Breaking the month down by sectors reveals that registrations increased 24.9% for Pickups, 12.0% for Vans between 2.0-2.5 tonnes and 5.4% for Vans between 2.5-3.5 tonnes, whilst Vans under 2.0 tonnes declined 22.0%.

Top five LCV registrations

The latest July SMMT new LCV registrations reforecast for 2020 is down 26.3% to 269,000 units for the year. Lockdown has placed all businesses under great financial pressure, with underlying weakness in the market.

Although there is a gradual improvement in demand, the UK is still a long way off normal. The pandemic has affected many businesses and a second wave of localised lockdowns has not helped.

The interconnected nature of the UK economy means that there is likely to be more uncertainty ahead as the UK grapples with a reduced appetite and business nervousness and the possibility of further regional lockdowns. Moving forward, fleet renewals will be critical to a successful restart and the UKs long-term green recovery given the crucial role light commercial vehicles play.

July Used Light Commercial Vehicle (LCV) Overview

With auction houses now at near full operational capacity, the used LCV market continues to deliver outstanding performance. Supply shortages and increased demand are keeping prices high at present however, there is a growing caution against the risk of weakening retail demand linked to a possible second spike in COVID-19 and further lockdowns.

Glass’s auction data suggests the number of sales in July were up 14.0% versus July 2019, with first-time conversions increasing for the fourth month in a row.

There is a growing appetite from trade buyers to purchase good quality stock. Sales of Euro 6 light commercial vehicles increased to just under 50% of the overall total in July, with the number of different online buyers increasing as well. Supporting this enthusiasm is data confirming average prices across all ages and sectors have risen 39.0% versus July last year.

July in detail

The average age of sold stock in July rose from 64.8 months in June to 69.5 months. This figure was 3.4 months lower than the same point last year.

Average first-time conversion rates stand at an extraordinary 92.3%, up from 86.5% in June and up from 76.7% 12 months ago.

Average mileage for sold vehicles stands at 71,878 miles, an increase of 2,226 miles on June but nearly 8,500 miles less than July 2019.

Glass’s continues to monitor the LCV market closely and has an open dialogue with auction houses and manufacturers, leasing and rental companies, independent traders and dealers as well as the main industry bodies. This information, combined with the wealth of knowledge in our CV team ensures Glass’s valuations remain relevant in the market place.

New Car Market Update August 2020

At last there is some positivity to report in the new car market, with July registrations recording the first increase of the year. Registrations came in at 174,887, which represents an 11.3% rise on the same month last year, according to figures released by the SMMT. This was the strongest July performance since 2016.

Although fleet registrations accounted for the lion’s share of the market (52.5%), it was private registrations that demonstrated the most growth, with a 20.4% increase. Dealers being open for business for the whole month of July will have helped fulfil the pre-order backlog caused by the COVID-19 lockdown, together with improvements in the supply chain. There is also some pent-up demand generated by consumers who managed to save throughout lockdown, and are taking advantage of some competitive offers and incentives from manufacturers and dealers.

Private new car registrations monthly graph August 2020

Data courtesy of SMMT

Growth was weaker in the fleet sector, with a 5.2% improvement on this time last year to 91,857 units, as both longer term and short cycle business struggles to pick up. At the same time, coronavirus uncertainty continues to hamper business expenditure decision making, and working practices for their employees, which may affect leasing deals going forward. Although, if there is continued improvement in the economy, back to something like pre-lockdown levels, then expect to see a strong new car order book as confidence improves and lease deals currently being extended end.

New car market sector split YTD graph August 2020

Alternative fuel cars (AFVs) are still gaining market share at a fast pace, with battery electric vehicles (BEVs) up 259.4% and Plug-in hybrids (PHEV) gaining 320.3% compared to July last year. BEVs now make up nearly 5% of this year’s total new car registrations compared to only 1.4% last year, while all other AFVs are also increasing market share, albeit to a slightly lesser extent.

The best sellers list has returned to some sort of normality this month, with small to medium sized cars filling the majority of the top ten as deliveries get back up to speed. The Vauxhall Corsa, Ford Fiesta and Ford Focus fill the top three places respectively. Volkswagen has three entrants, the Golf, Polo and Tiguan. The Mercedes A-Class, the Nissan Qashqai, Ford Kuga and MINI also feature.

August is usually a quiet month for new registrations with summer holidays in full swing, but with getaways curtailed this year, a similar monthly registration increase could be possible and would be beneficial but not crucial to the industry. The acid test will be the September 70-plate change. This is ordinarily the second most important month of the year and therefore a healthy increase in registrations would certainly go some way to keep the recovery on track.

The Convertible Market

At a time when more and more SUVs are launched, a car without a roof was once the norm, as all cars were built without any roof or sides. This was quite often to reduce weight and ensure horseless carriages could maintain forward momentum due to a lack of power. As available engine power increased, roofs and sides were added to cars.

Production of convertibles increased again after the World War II as a result of American soldiers in France and the UK experiencing small roadster cars not available in the United States. These roadsters included the MG Midget and Triumph Roadster. To compete through the 1950s and 1960s, and service the demand of returning GIs, car manufacturers in the United States manufactured a broad range of convertible models during the 1950s and 1960s.

During the 1970s, the popularity of convertibles was severely reduced by the increased speeds on roads and new crash safety standards, However, this did not stop manufactures producing new convertibles for global markets including the Triumph Stagg, TR6 and TR7, Lotus Elan and Seven S4, Alfa Romeo Spider, Chevrolet Corvette C3, MGB, Porsche 914, Fiat 124 Spider, Morgan 4/4 and Volkswagen Beetle convertible.

Reinvigorating the segment

In 1989, Mazda launched the Mazda MX-5. Over the years this has become the best-selling convertible with over 1 million units sold and creating something of a gold rush in the development of new convertibles. From humble Ford Escorts to luxurious Rolls Royce Dawns, the majority of manufacturers have marketed a convertible during their history.

The contraction

Today, demand in the new market for convertibles is waning once more. The SMMT’s registration data shows registrations falling consistently. As a percentage of the total market, convertibles stood at 4.4% in 2007 and by 2019 had fallen to just 1.6%.

Convertible percentage of market yearly graph

The debate today, is whether we have fallen out of love with the convertible with too many products no longer evoking dreams of open top sports cars unabated by traffic congestion and variable speed limits.

During the early 2000s, manufacturers developed folding solid roof structures as the answer to the many negatives of the soft-top design, especially road and wind noise together with safety and security. Unfortunately potential buyers were not impressed in the long run by these new seemingly practical introductions. Although solving some issues, they created particularly impractical vehicles when the roof was down due to the roof occupying the majority of the boot.

The future of convertibles

Convertibles in the UK are becoming niche. Over the last 14 years SMMT data shows the convertible segment is no longer a high volume selling segment. Volumes are falling significantly, from over 104,000 registrations in 2007 to under 36,193 in 2019. The 2020 year to date figure is significantly affected by the Covid-19 Lockdown.

Convertible registrations yearly graph 2006-2020

Residual values

Over the last 7 years, the overall trend for convertible residual values (RV) has been rising. From 2013 to 2020, RVs have risen by 7.2 percentage points for models up to two years old. The up to five years old models are up by 4.6 percentage points and a notable 5.3 percentage points increase for models eight years and older. Clearly as volumes in the used market decline, residual values are becoming stronger. Moreover, the last 12 months shows a greater level of increase than would normally be expected in this short period suggesting, at least in the used market, there is still demand for convertibles.

Convertible RVs (standard mileage) yearly graph 2006-2020

In the past year, models up to two years old have increased 1.8 percentage points, up to five years old declined 0.1 percentage points whilst models over eight years increased 2.5 percentage points. These are exceptionally strong increases, especially considering when the data was drilled down to see that nearly all the increases have been in the last three months.

Coming out of lockdown, logic might suggest the last thing on people’s minds would be buying a convertible. However, lockdown has created a pent up demand for all things fun and enjoyable, with the need to enjoy the remainder of the summer sun now more desirable than ever. Lockdown has, for some, created a greater feeling of living for today. However a significant improvement in new convertible registrations is not likely in the short term.

The Van’s Headlights: Mercedes-Benz Vito

Whilst some manufacturers suggest their vehicles are the backbone of Britain, others mention fitting everything and some always work with you, Light Commercial Vehicles really have delivered during the pandemic. In this month’s edition of The Van’s Headlights, we consider the merits of the Mercedes-Benz Vito 114CDI Long 2.1-litre 136bhp Euro 6 RWD van (2015 – 2019).

The Mercedes-Benz Vito

The first generation Mercedes-Benz Vito launched in 1996. Built in Spain, it heralded an initial foray into medium sized vans for the German manufacturer. Available in a single body length, power came from a choice of 140PS petrol or 120PS diesel front wheel drive (FWD) powertrains.

The second generation Vito was available between 2003 and 2014. With three lengths – Compact, Long and Extra-Long – power for the range came from a rear wheel drive (RWD) 2.1-litre engine for the 109CDI 95bhp, 111CDI 109bhp and 115CDI 150bhp models and a 3.0-litre V6 diesel engine for the 120CDI 221bhp model. As well as the panel van, a Dualiner crew van and a Traveliner 9-seater was also available. This range featured improvements to design, safety, performance and comfort and was the first van range to adopt Adaptive ESP® as standard for a smoother ride in all conditions.

The Vito received a facelift in 2010 changing the model naming to 110CDI, 113CDI and 116CDI. Improvements included restyled front and rear lights, front bumpers and grille and also enhancements to the suspension. Internally, there was improved instrumentation, steering wheel, and cabin materials. Improving fuel consumption and emissions, BlueEFFICIENCY diesel engines adapted from the Sprinter range were also introduced at this point. New drivetrain options included 4MATIC four wheel drive and a 5-speed automatic. The Vito E-Cell 36kW all-electric van was also revealed in 2010.

Introduced in 2015, the third generation Vito launched in North America for the first time as the Metris. Offered with new standard features including tyre pressure monitoring, Crosswind Assist, Active Park Assist and a 6-speed manual gearbox. New price listed options included the 7G-Tronic seven-speed automatic gearbox, LED indicators, LED daytime running lights, LED low beam headlamps and main beam cornering lights. At this point the Traveliner was also renamed the Tourer.

The renamed 109CDI and 111CDI manual transmission models were available as FWD only and powered by the 1.6-litre Renault derived diesel engine fitted to Renault’s Trafic range. The 114CDI, 116CDI and 119CDI models were RWD only and powered by Mercedes-Benz own 2.1-litre BLUETEC diesel unit, available with either manual or automatic transmissions. Euro 6 compliant engines were launched in 2016.

Further updates took place in 2019. Dedicated ‘Pure’, ‘Progressive’ and ‘Premium’ trim levels launched across the range, whilst a halo ‘Sport’ model was introduced on the 116CDI and 119CDI only. The production 41kW eVito electric van was also launched.

In early 2020, Mercedes-Benz launched a facelift for Vito, limited visually to a new radiator grille and interior detail changes. Under the bonnet, the 2020 Vito included new fuel efficient WLTP compliant 6-speed 1.7-litre engines for the FWD models. The RWD models are powered by an all-new 9G-Tronic 2.0-litre unit. Beyond this there are additional safety technologies including a digital rear-view mirror, autonomous emergency braking, ‘Distronic’ active cruise control and a new air suspension system.

A practical evolution

Andy Picton, Glass’s Chief Commercial Vehicle Editor recommends the Mercedes-Benz Vito as “a practical van with a varied number of configurations and payloads.”

Andy added, “Over its near 25-year life, the Mercedes-Benz Vito has continued to evolve, always a leader when it comes to safety and technological improvements. The Vito has a wide choice of models and is currently the only manufacturer to sell their medium sized van range in front, rear and all-wheel drive”.

Mercedes-Benz Vito 114CDI Long 2.1-litre 136bhp Euro 6 RWD van (2015 – 2019)

The Mercedes-Benz Vitorange

Three van body lengths, Compact, Long and Extra-Long
One roof height
Two wheelbases
Front, rear and all-wheel drive
Five power ratings
Manual and 7G-Tronic automatic gearbox
Three gross vehicle weights
Diesel and electric power
One trim level
Bodies include
- Panel van
- Crew Van
- Tourer 9-seater
Euro 6 engine line up

Standard specification on the Euro 6 Vito included cruise control with Speedtronic variable Speed Limiter, multifunction steering wheel with trip computer, and high-resolution 5.8-inch TFT display Audio 15. This version of the vehicle also has Bluetooth®, USB and aux-in port, iPod® interface, and SD memory card slot.

Safety features included Adaptive ESP^®, Adaptive Brake Lights, Attention Assist, Crosswind Assist, driver and passenger airbags, Hill-Start Assist, reflection-style headlights with daytime running lights, Rescue Assist QR codes, and a Tyre Pressure Monitoring System.

The recommended 2018 Vito benefitted from Mercedes-Benz smooth 2.1-litre BlueTEC engine fitted to all rear wheel drive models of this version.

Range anxiety: still a concern or a distant memory?

What is range anxiety?

The fear that an electric vehicle has insufficient range to reach the end destination. With sales of Battery Electric Vehicles (BEVs) on the rise, has range anxiety decreased or is still a concern for drivers?

Over the past three years, sales of BEVs in the used retail market have increased, suggesting they are growing in popularity. The following graph shows EV sales growth in the used retail market, from June 2016. EVs now take 0.9% market share in the used market according to data from Glass’s Radar used retail analysis product.

Although the BEV market share may seem low, the relatively small battery range on many currently available in the used market results in them not working for everyone. Most manufactures are heavily investing in BEV technology, which will result in this situation improving in time, as recent new releases show. As an example, the Renault Zoe, can achieve 242 miles and the new Hyundai Kona can achieve up to 279 miles, and it is only a matter of time before these filter through into the used market, opening this technology up to many more consumers.

The charging infrastructure in the UK has been growing at a rapid rate. In the autumn 2017 budget, the government pledged to mobilise around £400m of investment into the UK’s charging infrastructure to support their aim of increasing the amount of BEVs on the roads.

Strategies to alleviate range anxiety:

Extensive charging infrastructure. Charging points need to be accessible as easily as fuel stations with the capability to charge rapidly.
Higher capacity batteries at cost effective pricing. Batteries capable of holding more charge and achieving a larger range at more affordable price points. With prices of BEVs high in comparison to their petrol/diesel equivalents, customers may find the cost too high to make the change.
Battery swapping technology. Technology where you could drive to a BEV charging centre and simply swap the ‘dead’ battery for a full one. At this moment, this seems the least likely to happen due to costs and safety. This technology is currently in use on forklift trucks; however, the batteries are much smaller. Upscaling to a BEV car battery could prove difficult and costly.
Extended range. Battery capacities in BEVs are getting bigger to deliver additional range. Nissan’s second generation Leaf now has a range has up to 239-mile with the Leaf E+ compared to the standard vehicle with a range of 168-miles. This is more than enough mileage for the average driver to complete most journeys.

Manufacturers are targeting substantial growth in this fuel type, however today, it is difficult to say whether range anxiety is still the biggest concern for drivers or whether supply issues remain the biggest blocker to significant growth in the UK. Announcing this month, the UK government confirmed that company car drivers choosing to drive a BEV would pay no benefit-in-kind tax in 2020/21. This will have met with universal approval whilst giving manufacturers confidence to ramp-up production for the UK market.

With BIK rates for BEVs only increasing by 1% per year for the following two years, the Glass’s team forecast significant increases in demand. However, the charging infrastructure is still a consideration here. Whilst this issue remains, BEVs will continue to struggle to gain significant market share.

Range anxiety may always be an issue for some drivers whilst conventional fuel types still hold the market, but with the BEV market share rising, the future is beginning to look electric.

Used Electric Cars Re-energised!

Electric vehicles (EVs) have had a rough ride over the decades with little investment in their design, as most major manufacturers considered the product too niche. However, since the emergence and increased prominence of high levels of air pollution and the effects of global warming, the car industry has focused much more resource on developing EVs. This has intensified recently as manufacturers aim to reduce the average CO2 output across their ranges, in line with stricter targets.

Although the products on offer are much more appealing in both design and functionality now, the list price remains high compared to petrol and diesel equivalents, with the need for government incentives to get consumers to join early adopters.

Historically, convincing consumers that EVs were a viable alternative to the internal combustion engine (ICE) was challenging. Range anxiety, charging times; charging point availability and insufficient knowledge of the technology from both consumers and the dealers have hindered new and used retail sales. Despite low volumes of EVs hitting the used car market, demand has been poor for a number of years.

This led to very little demand in the used car market for even the smallest volume of stock on offer in the wholesale market, for a number of years. Some early EVs had a battery lease agreement in addition to the sale price, which meant that when they returned to the market as a used car, dealers had to take the contract on before selling the car to the consumer. Battery leases proved very unpopular with dealers and consumers alike.

Within the last five years, more manufacturers have started producing electric cars across the full spectrum of the market, which has inevitably enhanced product offerings as the technology improved. There has also been increased government and council ICE legislation and tax increases. When combined, the improved offerings and better understanding of the benefits by both the dealer network and customers, has seen an upsurge in demand. At the same time, supply has remained low which has led to a strong improvement in residual values. Over the last few months, demand has increased further, as seen in the chart below, which shows Glass’s Trade value expressed as a percentage of original cost new price. This trend is likely to continue in the near future with little improvement in used supply expected.

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