PASSENGER CAR WORKING GROUP MEETING. Thursday, 14 October 2010, 10:00-13:00
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1 PASSENGER CAR WORKING GROUP MEETING Thursday, 14 October 2010, 10:00-13:00 Southwark Room, Motability Operations City Gate House, 22 Southwark Bridge Road, London, SE1 9HB MINUTES Attendees Alex Bamberg Chargepoint Andrew Kelly DfT Angela Konert BMW Barry Hodgets Thatcham Brian Robinson TRL Caroline Watson Energy Saving Trust Catherine Dove LowCVP Chris Brown - LowCVP Daniel Lord DECC Declan O'Mahony Motability Greg Archer LowCVP John Lippe Ford Jonathan Murray - LowCVP Michael Webb - Chargepoint Neil Fulton Millbrook Rob Walker SMMT Rupert Russell ComCar Tim Shallcross IAM Trust (CHAIR) Apologies Alan Bishop HPI Dave MacDonald Chiltern Transport Consortium Ian Bown Lubrizol Jason Reakes BMW Jennifer Huckstep SMMT Lisa Thomson UKLPG Luke Herbert - JLR Mike Waters Arval Pete Tibbles Prodrive Peter McCarthy Motability Sheila Watson FIA Foundation Sophie Ogunbiyi Toyota Tom Callow Automotive PR Tony Rogers Motability PCWG-M Welcome and Apologies Tim Shallcross The chair welcomed those present and noted apologies. Attendees introduced themselves. 2. Minutes and Matters arising Tim Shallcross Amendment to be made in minutes: Last line of paragraph under item 5, page 3 add not. Subject to the amendment the minutes were otherwise adopted. Actions: - Members assisting in evaluation of implementation of used car label evaluation to be addressed under item 4.1 by Chris Brown. - Best practice principles and how to take forward examples to be addressed on the agenda under item 4.2 by Chris Brown. An initial draft circulated prior to the meeting covering the 2 actions under 5.2 of the minutes. - Improved consumer information a paper to be drafted WG advised this has not yet been completed but a position paper regarding labelling will cover the issue separately. 1
2 3. LowCVP Activity Update Greg Archer The Managing Director (MD) gave an update on the key Partnership activities undertaken since the last meeting of the Working Group: - Chairman and MD had a meeting with Norman Baker in September providing him with a full update on the activities of the Partnership. Particularly interested in the Community Challenge work. - MD met with DfT officials on LowCVP s Community Challenge offering to provide advice and support on the implementation of the local sustainable transport fund recently announced by Transport Minister Norman Baker. - The feedback from the Annual Conference and Awards Dinner in July indicated they were both very well received. - The Best Practice Marketing Principles were launched at the conference, together with the Community Challenge results and Technology Challenge for trucks which has received promising entries. The Technology Challenge Prize will be an audience with fleet managers and technical managers of vehicle and component manufacturers. - Secretary of State for Transport Philip Hammond and Minister Norman Baker spoke at two party conference fringe events run by LowCVP in collaboration with Greener Journeys. Rob Walker queried if LowCVP plans to run the Technology Challenge again a decision has not yet been reached on future plans. Rob Walker also asked for details of the content of the note on HGV activities which, was submitted to the Transport Minister during the MD s meeting with him. Jonathan Murray (JM) responded that what was provided was a précis of the executive summary of LowCVP s recommendations to DfT on how to accelerate the market for low carbon HGVs. 4. Work Programme Jonathan Murray JM reported the progress of the projects confirmed for the first six months of the year, as detailed in paper 29. Outline projects for the second half of the year were covered under item 5 later in the meeting. The key points with the work programme were as follows: - Changing car buyers attitudes in behaviour work stream has been delayed as a discussion with sub-group members was required and many of whom were unavailable during the summer break. A meeting took place last week however and the project is progressing accordingly but remains approximately one month behind schedule. - Road transport markets and alternative life-cycle metrics have been put on hold due to the lack of resources. - Tim Shallcross queried the possible inclusion of a work stream on the potential synergies between safety and climate change and in addition how to incorporate driver behaviour, which he had raised at the Members Council. It was noted that within the existing financial constraints it would be difficult to progress this as part of the current work programme but could be considered for the round of work. Action: GA to go back and revisit project proposed - Local authorities project has been progressing over the summer and latest details addressed under
3 4.1 Monitoring and evaluation of the used car label Chris Brown Chris Brown (CB) gave a presentation on the used car label evaluation report drafted and submitted to the DfT and on proposals for ongoing monitoring of the label. DfT had requested an evaluation after 18 months and the final report was submitted in September and subsequently discussed by webinar. Following the consumer launch in November 2009, the label received a great deal of coverage in the press. Thus far 2,350 dealers are registered to participate in the scheme the majority of which are franchise dealers (97%). Given the level of participation, there is a great deal of potential yet to be realised. A LowCVP-commissioned Ipsos-MORI omnibus survey of 160 people was undertaken to garner the level of awareness of the used car label. The results were in line with those of the new car label undertaken in recent years with awareness fairly high. In addition dealers felt the use of the label enhanced their own reputation and overall professional image, showing engagement in environmental issues and responsibility to the consumer. However, dealerships were not keen on covering any of the costs going forward. Progress has been good however the number of labels downloaded by dealers has plateaued with c1200 active dealers and c1400 registered but not active. An additional push is required in order for these to engage further. The average number of downloads per month is 18,000. The recommendations to DfT included an extension of the scheme for another two years in order to achieve critical mass. Ministerial involvement would certainly assist in this. SMMT, LowCVP and RMI could develop a programme of work to increase participation in the scheme including adding pressure to those manufacturers not yet involved. CB also stressed greater involvement from the devolved administrations was needed. CB noted that support from RMI at start of scheme was strong but this has now tailed off since scheme has launched. Andrew Kelly (AK) of the DfT advised the Group that the report would be used as evidence to support a submission to the minister following the Comprehensive Spending Review (CSR) as part of a package of measures. Members cautioned that removal of funds would torpedo a positive voluntary initiative and send the wrong message to industry, despite VM s recognition of the Coalition s competing priorities. The MD suggested that as the scheme is still new, it would need a couple of years to bed in and required stability via government funding. AK acknowledged this position but pending ministerial approval, no further clarity can be given. He indicated he anticipated having a decision before the next PCWG meeting scheduled for 27 January Rob Walker reported the SMMT has been working with manufacturers to encourage franchise dealer networks to adopt the scheme. He welcomed the emphasis on encouragement of non-franchise dealers to help expand the take-up of the scheme. He also noted that PSA Peugeot-Citroen has its own system to produce the label and therefore downloads are not captured in the wider VCA/DVLA figures. It was noted that VW s commercial vehicles are not downloading labels as the system is not applicable to majority of their vehicles. John Lippe informed the WG that at Ford the main dealer 3
4 produced the labels and distributed to retail dealers with the label already provided in the cars which may have skewed figures somewhat for Ford. AK said DfT would find it helpful to provide additional information about how to visualise further uptake by franchise and non-franchise dealers for inclusion in the report for submission. The final report and any additional evidence would be required by the end of October. Action: Proposals for how to continue with used car label to DfT by end October. It was noted that it was difficult to assess the impact of the HPI label. This is because HPI CO2 labels are issued when an HPI check is requested by consumers or dealers and may therefore not be displayed on the vehicle at all. Tim Shallcross queried what the Plan B would be in the event of the withdrawal of government support. AK advised options included legislation, or a European Commission directive or perhaps industry sponsorship. Actions agreed: - Any comments or suggestions send in to LowCVP to be collated by month end. - Convene the group looking at promoting the used car label and look at how to take this forward. 4.2 Best practice guidance for environmental marketing guide Chris Brown CB introduced the draft, and asked for comments. CB advised that a further draft would be produced taking account of feedback received from SMMT, TRL and others, and these would be circulated more widely to SMMT s Car Advertising Group. Next steps - A revised draft to be circulated by LowCVP this week - JM and CB to meet with SMMT Car Advertising Group next Thursday 4.3 Informing the development of vehicle labelling Jonathan Murray JM gave a presentation (paper 32 to be circulated) on the UK experience of complying with the EC labelling directive 1999/94/EC which forms part of the European Commission s strategy to reduce CO2 emissions from cars. The directive refers to four main areas of information: A label on or next to new cars A poster or display displayed in showroom A national guide to all models available All promotional literature has to contain fuel consumption and specific CO2 emissions data of the car models to which it refers The UK has thus far opted for the voluntary new car label scheme which is now adopted by 94% of dealers and was launched in Compliance with the requirement to have posters or displays in showrooms has not been verified by ad hoc evidence which shows this is being undertaken but is not on the radar of most car buyers. A national guide is 4
5 produced by VCA and is also available as an online database and a booklet. Promotional literature has a high level of compliance and is policed by the VCA. A workshop organised by the EC in 2008 on reviewing European labelling directive raised issues around harmonising the label across Europe, whether label should be relative or absolute, use of efficiency classes, inclusion of running costs and tax levels on label, changes to delivery of the Guide, retention of requirements for a poster display, extension of requirement for fuel efficiency and CO2 to all promotional materials, both print and non-print, extension to used cars and the definition of a light-duty low emission vehicle. Action: DfT will check on inclusion of EVs and plug-in hybrids, and how the directive will affect them. The objective of work stream is to disseminate UK s experience having collated all evidence and information into one publicly accessible report which comments on the evidence and leads to Partnership recommendations. The Board has emphasised this should not be done in a lobbying format. The evidence base relating to labelling was listed as: - LowCVP has undertaken surveys on the rollout and awareness of the label each year from 2006 to 2009, following its launch in July A LowCVP car advertising survey has also been undertaken over the last 3 years which looked at CO2 and mpg data in addition to advertising spend undertaken by Billets Media - Ecolane contracted by EST and We Are Futureproof to undertake a car advertising CO2 internet survey. - A Car Buyer Survey: Improved environmental information for consumers: Ecolane & Sustain 2010 was also undertaken by Sustain, Ecolane and University of Aberdeen in 2009 looking at what influenced the purchasing decision and implications for the provision of environmental information in a variety of forms. - Exploring the Scope of Used Car fuel efficiency labelling AECOM. - LowCVP s interim evaluation of used car label. GA suggested that the Car Buyer Research Report work produced by Ecolane in 2005 should be included. SMMT asked for clarification regarding whether the literature collated should just be LowCVP-commissioned reports or alternate studies where appropriate. The consensus of the meeting, and echoed previously by the Board, was that all relevant data should be incorporated. The next steps were presented and it was agreed that as this may not be a priority for the EC currently, the focus should be on collating the evidence rather than developing a dissemination plan. Draft report to be presented at next PCWG. These were agreed by the WG with the final decision to be taken by the PCWG later in the year. 5
6 Action: Any WG members who wish to participate in the sub-group to take the labelling work forward, should contact JM ) 4.4 Changing car buyers attitudes and behaviour scoping study Jonathan Murray JM gave a presentation on how to take the study forward which was detailed in paper 33 (to be circulated). The project aims at establishing how to more effectively motivate the car buyers choice of lower carbon vehicles thus forming part of the UK s contribution to meeting EU car CO2 reductions targets: 120 g/km by 2015 and 95g/km by The project aims were cited as: - To Production of a project brief applicable to UK only - To define timeframe under consideration eg. 2015, To Summarise EC regulatory background and future developments - To review the approach of the other EU member states - To review the knowledge base for effective behaviour change including the following mechanisms: Fiscal measures Non fiscal incentives eg. Parking, congestion charge etc Public awareness campaign eg. Act on CO2 - To identify specific issues to be addressed The Next steps were identified as: - Forming a steering group to agree project brief - Arranging a webinar on behaviour change and member state experience - Drafting documents - Drafting project brief to be agreed by sub-group - Presenting the project to PCWG Tim Shallcross noted that LowCVP would need to take into account what will influence public and private buyers as these will differ. Action: PCWG members should advise JM if they wish to participate (jonathan.murray@lowcvp.org.uk, ) 4.5 Stimulating activity by local authorities Jonathan Murray The project aims to establish how best to achieve an open communication channel with Local Authorities so they might engage in the issue of lowering CO2 from the local government fleet. LowCVP commissioned BIS Henderson consultant, Bashir Khan (formerly of freight team at TfL) to scope out the options, identify where gaps exist, what does the landscape look like, is there a body out there LowCVP can link in with? Action: JM to circulate the results of the study Tim Shallcross suggested looking at LARSO (Local Authority Road Safety Officers) Action: TS to check to see if an equivalent group exists looking at CO2 and the environment. 6
7 5. Work programme H2 next steps Greg Archer GA outlined the proposed work programme for the second half of the year based on views from working groups and the Members Council s prioritised proposed projects for discussion with funders and Board. Proposed projects for H2 for the PCWG are: - Disseminating best practice in environmental marketing with Partners - Continued promotion of the used car label - Understanding van procurement and purchasing behaviour Other projects were: Low Carbon HGV Overcoming barriers (b) (subject to DfT making funds available and Ministerial approval) Low Carbon Vehicle Supply Chain Entry Alternative life cycle metrics to tailpipe CO2 Road transport markets GA has met with funders who have agreed the proposed work programme which is now to be confirmed by the Board. Action: If interested in taking part in Alternative lifecycle metrics should advise JM after the meeting. 6. AOB Dates for 2011 meetings were noted and will be circulated: - 27 January - 19 May - 7 September - 24 November The WG was informed that due to lack of resources to support his role further, Chris Brown would be leaving the Secretariat at the end of October. CB was thanked for his contribution by the Chair and the Working Group. 7. Presentation by Motability Declan O Mahony DO gave a short overview of the work of Motability generally and particularly in the area of environment. DO advised that Motability purchases 200,000 cars a year to lease to persons with disabilities, which represents 10% of vehicle parc. Motability includes a provision for environmental information to its customers and recently revised its pricing structure to show fuel cost based on average mileage over 3 years and has consequently brought down average CO2 of fleet. Action: Secretariat to circulate presentation to the WG Next Passenger Car Working Group Meeting Thursday, 27 January 2011 SMMT, Forbes House, Halkin Street, London SW1X 7DS 7
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