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ASA FINDS SERVICING STOP ADVERT ‘MISLEADING’

ASA FINDS SERVICING STOP ADVERT ‘MISLEADING’

Two complaints against aggregator

The ASA received two complaints over claims made on repair aggregator Servicing Stop’s website.

One complainant, who believed that Servicing Stop continuously charged the ‘sale’ price for their services and that the savings were therefore not genuine, challenged whether the savings claims quoted within the ads were misleading and could be substantiated, while the other complaint challenged if the prices were misleading because their vehicle required a specific oil with VM approval that incurred an extra charge.

On the first complaint, the ASA looked at a series of complex savings offered on the website that were promoted as being ‘up to 60 percent off’. In response, Servicing Stop stated that at certain points throughout the year, they ran sales during quiet periods. It provided the ASA with dated and undated invoices showing the price history of the Kia Sedona vehicle servicing. It said that the period of time for which the new lower discounted price was available was not longer than the period of time that the item was listed for at the previous higher price.

It provided a spreadsheet of the sale dates for the servicing of the Kia Sedona and Honda CRV vehicle models over a six-month period from April 2017 to October 2017. There were variations between the ‘previous’ prices stated over this period. Its data showed that the Honda CRV services were on sale for a total of 37 days over a six-month period and the Kia Sedona had a sale period of 41 days over the same six-month period. It explained that there were fluctuations between the previous prices due to the many variants in price between the number of makes multiplied by the number of postcodes.

The ASA disagreed, noting that the ‘previous’ price varied when the discounted price remained the same. It told Servicing Stop to ‘ensure savings claims are genuine’. However, on the price of VM specific oil, the ASA noted that the aggregator put a disclaimer in saying that the price of such oil can vary. As a result, it was not in breach on this complaint.

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IS BANNING DIESEL BAD FOR THE ENVIRONMENT?

IS BANNING DIESEL BAD FOR THE ENVIRONMENT?

Scrappage Scheme

Evidence suggests that a rise in petrol registrations is contributing to global warming

Diesel-powered vehicles have been in the news a lot over their environmental performance, or lack thereof. Conversely, industry experts have warned that a clampdown on diesel vehicles could result in the UK actually missing European environmental targets.

Mike Hawes, Chief Executive at SMMT warned that demonising diesel conversley will have an adverse effect on the environment. “Customers are not moving straight from diesel to electric. They’re moving to petrol or staying put in older cars” he said when speaking at the Society’s annual dinner in December. “So we’re seeing a falling market, declining revenues, rising costs, rising CO2. And, yes, this will have an effect on climate change goals. This is not a policy without consequences”.

Data firm CAP HPI has authored a report which concludes that the EU’s 2021 environmental targets could be missed if the percentage of diesel vehicles continues to decline on UK roads.

The report points out that some of the environmental criticism of diesel vehicles is misguided.

All the countries in the report achieved the 2015 CO2 emission target for cars registered in that year. While France and Italy were comfortably below the 130g/km line, the UK is closer, and Germany only cleared the hurdle by 1.4g/km.

UNACHIEVABLE
Matt Freeman, Managing Consultant at CAP HPI and the report’s author, commented that without continuing sales of diesel engine cars, this target reduction is unachievable: “Hitting the 2021 environmental targets for CO2 reduction would be a significant challenge without the likely decline in diesel. Therefore it is imperative that diesels continue to command a substantial share of the new car marketplace.

“If consumers, with no option of transitioning to hybrid or EVs, switch to petrol the environmental impact is clear – their CO2 emissions would likely rise between three percent and 23 percent according to model.”

The report argues consumer education is key as there is an apparent risk that consumers are being led to believe that ‘all diesel is bad’ and that any suggestion that there is a good diesel option is due to the automotive industry seeking to resist change and preserve the status quo. This level of miscommunication needs to be countered if diesel is to have a short- to medium-term future.

SKEWED
However, the media coverage on diesel is, to say the least, skewed against the fuel no matter what the improvements and consumers are confused. At the aforementioned SMMT dinner, Greenpeace crashed the stage to hand VW boss Paul Willis a faux ‘award’ for ‘toxic air’ and coverage in the mainstream press has been hardly less hostile. This has resulted in drop in demand (by about a fifth) in new registrations for diesel powered cars and new registrations for light vehicles as a whole are down 5.7 percent compared with last year. This has lead to several analysts making doom-laden predictions about the future of new car retail through franchises coming to an end entirely. These might be a little wide of the mark, but it does seem that for a private motorist wanting to upgrade to the latest technology, the idea of a conventional powertrain must seem a bit old fashioned.

Most people reading this might wonder why they should care, after all, surely this is a hole that the VMs have dug for themselves? It doesn’t affect the aftermarket… Unfortunately, it does. Tens, if not hundreds of thousands of vehicles won’t go through trade auctions and back into the aftermarket as the VMs are holding their own versions of scrappage schemes. As far as I know, no-one has made a serious attempt to retrofit otherwise efficient Euro- 3 onwards common rail diesel engines with devices to clean up their carcinogenic soot, meaning that they are replaced with petrol vehicles that are only marginally less toxic, but will emit greater quantities of greenhouse gas. Meanwhile, the face of the retail motor industry as a whole is besmirched by the failure of the VMs to get a grip on this situation which is a real pity for all involved.

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A NEW CHAPTER FOR ANDREW PAGE

A NEW CHAPTER FOR ANDREW PAGE

Steven Frost and Shay Allen

Of all the places that I thought might be my first visit of the year, a new branch of Andrew Page didn’t seem likely just a few months ago.

But things change, and so today, I’m standing at a shiny shop counter in a new branch. There are displays of tools and accessories with a number of brands and a small screen with a noisy infomercial for something called Gorilla Glue on a loop – something which I suspect will get old very quickly for the staff.

The stockroom, loaded with parts across two levels, is just as clean. Incredibly, building the mezzanine plus racking the whole branch and filling it with stock was achieved in just a week, according to Regional Manager Steven Frost, who was there to meet me along with Southampton Manager Shay Allen and Interim Marketing Manager Richard Swan.

Admittedly, this is not an entirely new branch. There was already a satellite of the Southampton branch in Eastleigh that needed to move or be closed as the lease was up and the landlord wished to redevelop the building. At the same time, parent company LKQ had a recently vacated building that had previously been a JCA Coatings counter, so it seemed logical for one business to move into the empty building.

RATTLING PHONES
However, don’t think that this is nothing more than a re-site. The sales team that manages customers around Eastleigh and Winchester are to move from Southampton into a bright new telesales office upstairs at the Eastleigh branch, and the team have plans to increase the headcount in order to win some new accounts.

“You get closer to your customers when you are in a standalone branch” Steven Frost emphasised, “But in a satellite branch, you become a bit disengaged as your customers don’t know that you’re up the road. So part of the investment is to get more people in”. This will likely include an extra van or two (there are currently six) and possibly extra people to handle the increased pareto and anticipated rise in orders.

The problems faced by the management of Andrew Page have been covered ad infinitum in CAT, but from a customer point of view the main issue has been inconsistent supply and ever-changing brands on the shelf. “There’s nothing worse than having to ring a customer back and tell them that you can’t get something” said Frost, adding that as an ex-ECP man, he breathed a ‘sigh of relief ’ when he heard that LKQ were behind the takeover, because he knew that range and availability would no longer be an issue.

So, is this branch a new start for the hundred year-old factor? “That’s certainly what we’ve been told” said Frost. “There are more moves and openings planned as [LKQ] want to heavily invest in this brand and move it forward. It hasn’t moved as quickly as we wanted, because of the CMA thing, but straight away this is what we want to do”.

NEW BUSINESS
Branch Manager Shay Allen believes that filling gaps in existing accounts and winning new business is entirely possible, due to the good and personal relationships the team have with individual customers. This trait goes back to the days of Camberley Auto Factors which several team members worked for, prior to being bought and rebranded by Page.

“It absolutely comes down to the relationship between the garage and the factor. If there is one thing that sets us apart right now it is people, and the knowledge and level of skill that they have” said Allen.

This is emphasised in the firm’s attitude to outgoing sales calls. Rather than badger people on the phone with an offer of screenwash or whatever, the sales team will prefer to visit customers to make sure they are happy with everything the factor is doing, and looking to see if there are any gaps that can be filled.

That isn’t to say that there aren’t challenges to this expansion. Both MPD, GSF and GAU are active on the patch that the branch wants to take more of as well as the ‘friendly’ competition from the local ECP. Nonetheless, the shiny new branch sends out a clear message to the aftermarket: Andrew Page is back and open for business.

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CHARGING UP BUSINESS MARGINS

CHARGING UP BUSINESS MARGINS

There are plenty of battery charger brands out there, but how are firms standing out from the competition?

Noco Genius series

Consolidation is the buzzword of our industry at the moment, but it isn’t just reserved for the factor groups, suppliers are part of this trend too. “There has been a lot of consolidation of battery brands with only a few major players left in the market.” said Gary Vincent, Sales Manager of American battery charger firm Noco.

While battery brands are shrinking, he says the opposite is true of chargers, “In terms of battery chargers, there is an increasing number of battery charger brands entering the market from the far-east with little actual battery charging experience and just looking to make quick money on places like Amazon,” he said, adding that this has had a knock-on effect on product quality and safety in the marketplace.

TRAINING
To maintain quality standards and be one of the ‘go-to’ brands for battery chargers, Noco has heavily invested in a number of marketing initiatives, technologies and training programmes to maintain customer retention while providing new clients with the technical know-how to up-sell its chargers in store. “Technical training forms part of the Noco on-boarding process for new customers so they can confidently advise and sell across the range,” said Vincent. “We see a continued trend towards lithium-ion batteries in all markets, and all of our chargers contain a specialised lithium charging mode. However, most competitors focus on their attention on charging fast, whereas we focus on return of capacity whilst restoring the specific gravity to optimal level, which can sometimes lead to slightly longer recharge times.”

The design and packaging can also bring many plusses to retailers stocking them as Vincent highlights: “Our chargers and packaging is extremely compact, which typically saves retailers upwards of four times in retailer footprint. These not only allow retailers room to add additional SKU’s, but also saves on logistical costs.”

NEW PRODUCTS
Taking a slightly different stance on battery charging is Swedish battery charger firm CTEK. As previously mentioned in CAT, the firm recently introduced its ‘CT5 Time To Go’ device, which informs users when their battery is fully charged, through a series of LED lights that monitor the state of charge of the battery. The tool is used in conjunction with the firm’s new ‘Battery Sense’ dongle, which tracks the vehicle’s battery health. The concept behind this was to encourage more motorists to check their battery regularly in order to prevent further breakdowns, particularly during the colder months when this component is at its most vulnerable. Sten Hammargren, Consumer Business Unit at CTEK, elaborated: “The Battery Sense tool is easy to install and data is delivered through a free to download iPhone or Android App. Battery Sense means no worrying about charge levels or when to charge; providing valuable information about the vehicle’s battery in a simple, user-friendly way.”

In addition, the maker is conducting ongoing training sessions for factors and distributors via its Skillsbase programme, allowing them to gain a thorough understanding of the firm’s wares. This is further supported with marketing materials such as product sheets, brochures and promotional films for additional advice and guidance. “Understanding how our products can be used to meet the needs and demands of the end user is a strong factor in choosing the right products to generate sales opportunities”, said Hammargren, “Our Skillsbase programme is helping our customers to gain comprehensive CTEK knowledge and develop essential skills and understanding to maximise profit margins.”

In a similar vein, Banner Batteries is raising awareness and the importance of battery chargers and maintenance to its retail network in the form of ‘visually appealing’ display units and marketing materials including a pocket guide leaflet for its Accucharger range. Lee Quinney, Country Manager at Banner, elaborated: “Developed to ensure that modern lead-acid batteries attain their anticipated long service life through regular and necessary equalisation charges, each Accucharger is more than capable of powering up any starter battery easily, fully automatically and safely. In addition to their functionality and suitability for all 6/12V lead acid batteries, they are appealing in terms of their design aesthetics and have already been widely adopted by Banner’s distributors and their customers.”, he concluded.

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THE RIGHT PART GOES BEHIND WHAT FITS

THE RIGHT PART GOES BEHIND WHAT FITS

The rules around replacement parts are complex, but worth getting your head around, writes BM Catalysts Commercial Director Mark Blinston.

While there might be more hot air than hard facts about emissions across the mainstream press about vehicle emissions, there can be no doubt that reducing toxic gas and restoring trust in the motor industry is the greatest problem faced by the trade at the moment.

Everything is geared towards reducing emissions and much of the emphasis seems to be pointed towards vehicles and how we can reduce the impact that they are having on air quality. You may be wondering what we can do about it in the aftermarket; but one thing we can do is making sure the right part is fitted to the right vehicle based on the emissions standard of the vehicle in question – the Euro level.

Vehicles and replacement emission control devices must meet specific standards for exhaust emissions before they can be offered for sale in the European Union. Emissions limits are commonly referred to as Euro standards or levels.

Emissions are measured using a standardised test cycle called the New European Driving Cycle (NEDC). The NEDC was last updated in 1997 and is gradually
being replaced by the World Light Test Procedure (WLTP), which is designed to better replicate real driving conditions. WLTP is now being applied to new vehicles (types) but does not yet apply to replacement parts.

In order to test the durability of each part emission test results are most frequently multiplied by a deterioration factor; with the adjusted result then compared to the legislative limit. Deterioration factors are designed to simulate the likely change in performance of the part after it has aged with use over time. These deterioration factors have become more stringent over time, and so when coupled with the gradual lowering of limits it becomes considerably harder to achieve a pass when testing newer parts and newer vehicles. The largest increase in deterioration factors occurred between Euro four and Euro five.

In order to meet higher emission standards, it is frequently found that the OEM part is made to a higher specification than the lower EU level part it has superseded. Legislation requires a comparison of performance between a replacement part and its OE equivalent and so it naturally follows that tougher standards + higher deterioration factors + higher performing OE parts = a real need for a higher specification replacement part.

RIGHT LEVEL

The Euro level of each vehicle prescribed at the point at which that vehicle is Type Approved. A replacement part cannot be approved to a lower Euro level than that of the original vehicle; so if the vehicle is Euro five then the replacement must be approved to Euro five levels/limits. Testing and approving this part to Euro four would mean that it cannot be proven that it meets the relevant emissions standards and therefore cannot legally be fitted to any Euro five vehicle.

There are many catalytic converter and diesel particulate filter (DPF) references that appear to be physically identical but are, in fact, designed and approved for vehicles that carry different Euro levels. This is made possible as the internal specification of the part is largely the key to the emissions performance of the vehicle. For example, the Euro five version of the close-coupled cat for the Citroen C1 requires a specification that is more than 3 times that of the Euro four version of the part. A similar story is true of the Euro four/five Fiat five00 and Ford KA. Quite apart from it being illegal to fit the Euro four version to a Euro five vehicle, it will cause poor emissions performance with a much higher chance of related vehicle issues and potential part warranty returns. It can be easy to source the cheapest product which isn’t necessarily approved to the correct Euro level – the consequence of which is then a part that will actually not perform to the standards required.

CATALOGUE
The correct cataloguing of aftermarket parts is complex and challenging and many consumers will not be aware of the Euro level of their vehicle. It is therefore down to the garage and parts distributor to ensure that the part that is being sourced is approved for sale to the correct Euro level of the vehicle in question. This is something that has recently been identified as a “problem” in the aftermarket whereby parts can be physically the same, catalogued with the same start and close dates yet be very different both in terms of the internals and what they are legally approved for sale to fit.

In an effort to reduce the number of occasions that the incorrect part is being supplied and fitted to the vehicle, MAM (Autocat) will shortly be introducing the Euro level as a search criteria when identifying the correct part for a particular vehicle. Manufacturers of catalysts and DPFs will be asked to submit the Euro level for which their part has been homologated to enable an accurate match upon lookup. This is a positive step that the aftermarket is taking to reduce vehicle emissions.

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NEW HELLA HENGST FILTERS FOR WORKSHOPS

NEW HELLA HENGST FILTERS FOR WORKSHOPS

PROMOTION ARTICLE ON BEHALF OF HELLA

Hella Hengst portfolio

HELLA, a leading original equipment (OE) manufacturer and system supplier to the global automotive industry, has recently added antibacterial carbon activated cabin filters to the HELLA Hengst range of OE quality filters.

The 38 new-to-range (NTR) references are available for a variety of vehicles, including Ford Focus C-Max, Mercedes Benz A and C class, and Sprinter, as well as Audi A3, A4 and A5. The range also extends to the majority of VW and SEAT models. These additions, which will be available from early 2018, can be easily identified with the letters ‘LB’ marked on the end of the HELLA Hengst part numbers.

The main difference between the HELLA Hengst carbon activated cabin filter and the new antibacterial version is that while both have excellent odour reduction properties, the latter can also reduce allergy problems caused by contaminants such as bacteria and mould fungi, which enter the passenger compartment through the ventilation system, thus tackling one of the growing issues facing road users by directly addressing the health concerns of vehicle occupants.

Today, modern vehicles have cabin filters located in a variety of places and that are sometimes challenging to fit, making it difficult for installers to service or replace them. To further assist technicians, HELLA Hengst provides easy-to-follow installation instructions for all cabin filter types, including their locations, in every product pack.

As these additions demonstrate, the HELLA Hengst range is consistently growing and with a complete range of 1,500 premium quality filters across 90,000 applications for passenger cars and light commercial vehicles, the company is showing its commitment to deliver the very best in terms of quality and availability to support the independent aftermarket.

For more information about the new HELLA Hengst filtration range, contact our sales team on 01295 662324 or email hella.hengst@hella.com

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HELLA ANNOUNCES NEW PLANT AND BUSINESS DEAL

HELLA ANNOUNCES NEW PLANT AND BUSINESS DEAL

Hella and BHAP tie the knot

AS PART OF growing demand for its vehicle lighting systems, Hella has opened a new production plant in Tianjin, China valued in low-to medium double-digit million euro.

The opening of the site follows a joint venture between Hella and Beijing Hainachuan Automotive Parts Co. Ltd. (BHAP) – a subsidiary of the BAIC Group, which will see both parties collaborate on LED headlamps, rear combination lamps, car body lighting and interior lighting under the newly formed entity, ‘Hella-BHAP’.

Markus Banner, Member of the Hella Management Board, said: “The new plant will strengthen our market position on one of the world’s major automotive markets. When extending our structures locally here on site, we are also very consciously counting on collaboration with successful Chinese partners such as BHAP. And that is because such cooperation means that we will be able to meet the needs of local customers even better than ever before.”

“Tianjin, where the new factory is located, is of strategic importance to the Chinese automotive industry as many of our key customers are located nearby”, said BHAP General Manager Chen Bao, “Hella is a perfect partner for BHAP, and we join hands to develop the automotive lighting business in this region and provide our clients with the best services and support,” adding that its cooperation will gradually expand into  electronics and aftermarket.

The new location employs100 staff with plans to extend this number to 250, along with its current site and 12,000 sq m production facility in due course.

 

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CLUBBING WITH THE TRADE

CLUBBING WITH THE TRADE

Mitch Cameron shows us around a relocated TPS Branch in Slough.

New logo on signage

You have probably noticed the quiet growth of trade clubs over the past decade. At first, these were a way for the VMs to get the independent garages that wouldn’t normally consider queuing at a franchise’s parts counter to use genuine parts.

The idea worked, and today some of the clubs are as busy, and as lean and sales-focussed, as any branch of an all-makes factor chain.

Take TPS for example. Launched 11 years ago the trade counter started its first month with four branches selling mostly dealer-only parts and bodyshop supplies. Today, it has a nationwide network of 75 centres and has recently been through a programme of modernisation and rebranding.

To find out what these changes mean in practical terms, we’ve headed west to the Berkshire town of Slough to have a look at a branch that has recently relocated to a more modern site.

When we arrive at the allotted (and very precise) time of 11.15, the first thing to notice is the large signs across the driveway. “We were one of the first to receive the new branding” said Branch Manager Mitch Cameron, adding that the new silver logo (TPS originally stood for Trade Parts Specialists, but now has no official designation) looks very professional when combined with the new corporate colour scheme.

The new look continues inside the building, as staff are wearing a redesigned uniform that matches the silver logo. Customers, according to Cameron, appreciate all of these tweaks. “We hear a lot from the front counter that it is a pleasant place to get parts from” he said.

Actually, a partition screen between the counter and the telesales floor has a dual role as on the reverse it has a large sales board, filled with targets broken down in ways that no doubt makes sense to the nine people rattling the phones.

FIGURES
While the board of figures doesn’t mean a lot to us, it is clearly very important to Cameron and the team as monthly targets are broken down into weekly, daily and even hourly productivity goals. Like most factor branches, there is a morning rush, which finishes just after 11 (hence the time we were given to arrive) followed be a spike in activity in the early afternoon, mostly from garages who want to make sure their parts are ordered ahead of a vehicle arriving first thing in the morning.

Part of the programme of branch modernisation is a phone system that will be able to monitor call volumes, lengths, number of outgoing and incoming and so on. “When we get it, it will give us a much better handle on what the peaks are during the day” explained Cameron, adding that, in common with the practice at most factors, each operator has their own list of ‘regular’ clients that they build up a relationship with and a few customers can be in touch with the branch ‘seven or eight times a day’. One of the team is a bodyshop specialist, so he deals with the panel beaters around the town.

9,000 items including many crash repair parts

Another relatively new system is a ‘gap analysis’ tool, something many readers in factors may well be familiar with. Simply put, it looks at what customers have been purchasing alongside what they haven’t been. For example, a customer might buy many sets of brake pads from the factor, but never any hydraulic fluid. The tool can pick things like this out and the sales rep can then find out why, and see if there is an offer that will persuade the garage owner to change their buying habits.

VAN FLEET
The branch’s fleet also deserves a mention. There are 11 vans, which is not untypical for a branch of this size. However, the branch has also acquired a small hatchback car (a VW of course) that has been converted to carry a small amount of stock and be used for client visits. “The idea of that is we have some part time drivers in the morning to cover the busy period. In the afternoon when it is a little quieter, we can send some of the telesales guys out so they can meet their customers face to face” explained Cameron. “This is something we’re building on, that we hadn’t been doing particularly before”. It has been said many times before, but there is never any substitute in the aftermarket for getting out and shaking hands with people.

The factor’s fleet also boasts a motor scooter for local runs. Traffic in the area immediately around the industrial estate can be pretty gnarly first thing in the morning and the bike is just the thing for small deliveries.

Some 9,000 lines are kept in the stockroom. Brake parts, oil and filters are the fastest moving lines as you might expect, although around 15 percent of stock holding relates to crash repair and body refinish (On our visit, the side panel for a Caddy van was waiting to be delivered to a customer). As you’d expect, TPS delivers many OE parts from the parent company, but in a move to compete with others it also has a second-tier line called ‘FourPlus’, which as the name implies are parts for vehicles old enough to be out of the warranty period. All products in the range come with a two-year guarantee and meet the VM’s quality assurance standards.

The phones start to get busy again as the afternoon rush begins, so its time for us to leave. However, if you are in Slough and you notice that there are a lot of Volkswagen Group cars on the road, now you’ll know how they stay there.

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ACEA DROPS A1/B1 AND INTRODUCES C5

ACEA DROPS A1/B1 AND INTRODUCES C5

Old specs to be discontinued as new oil sequence is introduced.

In the ever-changing world of modern lubricants, the ACEA A1/B1 standard is no more from December 1 2017 (though you can still sell products with this mark for another year). In its place is ACEA C54. So why the change? “In terms of the background to the removal of A1/B1 this grade reflects the trend towards low viscosity lubricants such as 0w20 which are becoming increasingly popular for newer modern cars, especially those from the Far East” explained David Wright, Chairman of industry body Vehicle Lubrication Standards (VLS).

“However, traditionally, the ‘A’ and ‘B’ ACEA sequences are reserved for vehicles without exhaust after treatment devices such as catalytic converters or diesel particulate filters. Today it is very rare that modern cars are sold, especially in Europe, without some form of exhaust after treatment device. So, the category A1/B1 became incongruous because most modern cars requiring low viscosity oils are fitted with exhaust after treatment devices” he explained.

We spoke to an industrial chemist at lubricant firm Comma, who confirmed that in a lot of cases, products that had been made to the old standard (or ‘sequence’ as it is known in
the lube business) were already compliant with the new one. Producers that had tested their products and found they met C5 were able to label them as such from December 2016 (and it became mandatory for new products produced since December 2017 to have the mark, though as mentioned you have a while to sell through anything that still has the A1/B1 label).

Our chat with the Comma chemist also confirmed some other good news, namely that as the makeup of the additive packs are broadly similar there shouldn’t be any significant price difference. Variations in lube prices are more likely to be down to the raw cost of products, rather than any different technology. It is also worth noting that most new C5 products will be have a high temperature viscosity of 20, rather than the more usual 30.

TOTAL QUARTZ
There are a few oils on the market ready to meet the new ACEA C5 technical standard. Among them is the new Total Quartz 0w20, which has been developed to meet a number of VM approvals,
including Volkswagen Group’s 508.00 ‘blue oil’ standard (despite the name, the product is in fact green). The criteria set down by VW Group were described by Total as being ‘severe’ as long-life oils can go more than 18,000 miles between changes.

Oil blender Comma is also among the first to market with a C5 oil. The firm’s Eco0-F 5w30 product needed no extra reformulation to meet the new standard, and is now sold bearing the mark. However, may of the major suppliers have yet to bring a C5 oil to range.

WHAT IS ACEA?
The European Automobile Manufacturers’ Association (or Association des Constructeurs Européens d’Automobiles in French, hence the ACEA abbreviation) is a group that represents the 15 most important European motor vehicle manufacturers. The website oilspecifications.org notes that ACEA is the successor of CCMC (Comité des Constructeurs du Marché Commun). According to their statement, ACEA is an advocate for the automobile industry in Europe, representing manufacturers of passenger cars, vans, trucks and buses with production sites in Europe.

Among various other activities ACEA defines specifications for engine oils so called ACEA Oil Sequences. The sequences are usually updated every few years to include the latest developments in engine and lubricant technology. ACEA itself does not approve the oils, they set the standards and oil manufacturer’s may make performance claims for their products if those satisfy the relevant requirements. According to fuel supplier Infineum, there are a number of revised tests for C5 oil, compared with previous standards. These include tests for the effects of biodiesel and high temp, high shear rates.

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ELECTRIC VEHICLES VS THE AFTERMARKET

ELECTRIC VEHICLES VS THE AFTERMARKET

What challenges does the lubricant industry face? With impending bans on traditional vehicles and increasing market share of EVs

At the end of last year, the UK media reported a sixth month consecutive decline in sales of diesel cars. UK Government’s uncertainty about how to treat vehicles once classed as ‘the green option’ has led to consumer caution about buying cars that might be subject to higher taxation in future.

In July 2017, the UK Government declared that from 2040, sale of motor vehicles powered with internal combustion engines, petrol or diesel, would be banned. This followed similar announcements made by the French Government earlier that year. Even Original Equipment Manufacturers (OEMs) followed suit with Volvo and more recently Jaguar Land-Rover announcing the end of petrol and diesel car sales from 2019 and 2020 respectively.

The impact on the automotive sector, its fuel and lubricant sales, as electric vehicle sales increase cannot be underestimated.

Barclays’ analysts reported that if electric cars with greater efficiency increased to one third of the current automotive sector, this would cut global oil consumption by 3.5 million barrels a day by 2025. This is roughly the equivalent of Iran’s current supply of oil at 3.8 million barrels a day that is the Organisation of Exporting Petroleum Countries (OPEC)‘s third largest member.

Globally, demand for oil is still growing. In their 2017 outlook OPEC signalled that the medium-term demand for oil for the period 2016–2022 would increase by 6.9 million barrels a day, rising from 95.4 million barrels in 2016 to around 102.3 million barrels a day by 2022. Developing countries are expected to account for the majority of this increase, with demand expected to increase here by 43.2 million barrels a day in 2016 to 49.6 million barrels a day by 2022.

A cut in automotive demand for oil would effectively wipe out half the expected increase in global oil demand by 2022. But globally, the demand for oil would still increase.

Transportation is expected to remain the largest consumer of oil products, both fuel and lubricants, well into 2040. Much of the sector faces weak competition from alternate sources of fuel and lubricants although improved efficiencies, the rise of hybrid or electric vehicles and a tightening of energy policies will help to decelerate increases in the demand for oil from this sector.

WHAT IS ALLOWED?
Details of the French and UK Governments’ decision to ban conventional internal combustion engine vehicles is still vague. Will hybrid vehicles still be allowed? What about heavy goods vehicles or diesel powered public vehicles such as taxis? Some analysts believe that Governments might have kicked an emissions issue aligned to poor air quality into the long grass. The UK faced with the prospect of fines by the European Union over the quality of its air in cities, needed to be seen to be doing something positive about the issue.

Today’s vehicles are cleaner and leaner than those of ten or twenty years ago. Exhaust after treatment devices, both catalytic converters and diesel particulate filters, have removed many post-combustion harmful gases. Car scrappage schemes promoted by both Government and car manufacturers have incentivised owners to replace ageing vehicles with more modern cars. Changes to car taxation duties reward cars with lower emissions.

Electric cars might not be the panacea for everyone. Limited battery range and the high cost of lithium power cells means that extended ranges between charges of 300 miles or more are not yet a reality. As local town run-arounds or shopper cars, electric vehicles provide a viable alternative to conventional vehicles for journeys typified by short local stops. For longer commuter journeys then electric vehicles alone do not currently provide a realistic solution in the absence of a national and comprehensive electric charging network.

Much needed investment in electric charging stations along major motorway routes and trunk roads still remains in short supply. The Petrol Retailers Association (PRA) gave evidence to UK Government’s Automated and Electric Vehicles Bill Committee in November arguing against proposals to mandate electric vehicle charge points in petrol stations and motorway service areas. Although subsidies exist for domestic installation, the Bill proposes that a larger commercial network of charging points would be paid for by fuel retailers who would, by implication, pass the charges back to motorists. Government would not fund such a scheme.

REQUIREMENTS
In terms of engine oil and lubrication requirements, hybrid vehicles act in a slightly different manner to more conventional vehicles. A distinguishing feature of hybrid electric vehicle is that the conventional engine switches off when the power available from the electrical cell exceeds that needed to propel the vehicle. This results in lower operating temperatures and higher stress during stop/start for the conventional engine, which could lead to increased sludge and varnish than that of conventional engines.

What of service intervals? In the UK, service intervals of 12,000 miles are usually expected by motorists. In America, some dealers are claiming that hybrid vehicles require oil changes every 5,000 miles or 10,000 miles if using a synthetic, more typical of conventional cars sold in that country. The move to lower viscosity oils could also confuse matters if a motorist has been used to using a 5w30 engine oil in their hybrid ten years ago and today the same, but newer, model of their much-loved car requires a lower viscosity lubricant of 0w20 or less.

For the aftermarket, although electric cars might prove a challenge today, a hybrid car is a more popular and obvious choice for motorists. They provide the assurance of extended ranges for longer journeys similar to that of conventional vehicles, with the benefit of lower emissions under town centre driving conditions.

Posted in CAT Know-How, Factor & Supplier News, Garage News, News, Retailer NewsComments (0)

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