Skip to main content

UK operators ill-prepared for Euro VI

John Fawcett, Managing Director of the transport division at Close Brothers Asset Finance

TWO in five transport operators across the UK have no purchasing plan in place to deal with the imminent Euro VI legislation, according to a survey just published.

The latest Close Brothers Business Barometer also reveals that a further 14% of businesses polled admit to having given no thought at all to the new emissions standards coming into force on 1 January 2014.

This is despite almost half (41%) of those surveyed saying they are concerned about the impact the rules will have on their cash flow.

"We all know that Euro VI is a much more expensive proposition than Euro V so it's a concern that with less than two months to go until the implementation of the new rules, many businesses have given little or no consideration as to how they will upgrade their fleet," said John Fawcett, Managing Director of the transport division at Close Brothers Asset Finance.

He added; "Some firms decided to pull forward purchasing to the first part of 2013 but that's no longer an option. The reality is that waiting until 2014 means that your capital expenditure will be significantly increased to meet the new emissions standards.

"The cost of upgrading isn't a problem for very large fleets, but it will place the majority under serious cash flow pressures."

However you decide to fund your upgrade to Euro VI, inertia is not an option according to Mr Fawcett. "Getting your house in order now, so to speak, is crucial. Asset finance solutions can help ensure that businesses stay on the road by allowing them to spread the cost of purchasing any new vehicles."

Of the 26% of companies that said they do have a purchasing strategy in place, the findings of the Close Brothers Business Barometer signal an almost equal split in those who have pulled forward their purchasing to avoid Euro VI (51%) and those who plan to upgrade to Euro VI (49%) as soon as possible.