Greenwashed: UK Plug-in Fleets Enjoy the Taxpayer Perks, Never Plug In

Steph Willems
by Steph Willems

In Europe, diesel now holds a reputation as favorable as that of the dark lord of the underworld, while electric propulsion may as well have descended from Heaven. It wasn’t this way just a few years ago.

That said, in the UK, government incentives towards green vehicle purchases have, like the U.S., been ongoing since 2011. A recent study of corporate plug-in hybrid fleet vehicles purchased with the assistance of government grants reveals many buyers were just looking to dodge diesel taxes while bilking the taxpayer for a cheaper ride. Plugging in these plug-ins was not a priority.

As reported by BBC News (hat tip to Jalopnik), a study of several thousand fleet vehicles by The Miles Consultancy shows real-world fuel economy of corporate plug-in models isn’t all that hot, especially when compared to diesel fleet averages. It’s estimated that more than 70 percent of PHEVs sold in the UK this year went to corporate fleets.

Depending on the PHEV’s range, the grants amounted to 2,500 pounds ($3,295) to 4,500 pounds ($5,740) per vehicle.

TCM’s study of 1,500 PHEVs in its database showed a real-world average of 39.27 miles per gallon on the generous European driving cycle — a figure that basically matched that of the diesel cars in its database. Combining regular hybrids with PHEVs returned a figure of 49.06 mpg.

“There are some examples where employees aren’t even charging these vehicles up,” said Paul Hollick, managing director of The Miles Consultancy. “The charge cables are still in the boot, in a cellophane wrapper, while the company and the employee are going in and out of petrol stations, paying for all of this additional fuel.”

Toby Poston, communications manager director for the British Vehicle Rental and Leasing Association (BVRLA), blamed the behavior on a poorly thought out tax regime that incentivised plug-in purchases while disincentivising diesels. For many companies, it just makes sense to buy a PHEV, grab the government cash, and forget about the car’s purpose.

“We have got some situations where company drivers are choosing the vehicle based on their tax liability, rather than having the right vehicle for the right job,” he said.

Not only were employees not plugging the vehicles in, companies would allocate PHEVs for use on long highway trips, where a plug-in hybrid is at its most inefficient — hence the comparatively dismal MPG average. Britain didn’t turn green, it just burned green in the pursuit of it.

You’re seeing the past tense here because PHEV purchases are no longer eligible for government grants in that country. The UK did away with them this month, preferring to offer a smaller sum (3,500 pounds, or $4,617) to buyers of purely electric vehicles, hydrogen fuel cell cars, and the vanishingly small number of PHEVs capable of travelling 70 miles on a charge.

[Image: BMW]

Steph Willems
Steph Willems

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  • Cimarron typeR Cimarron typeR on Nov 16, 2018

    I'd imagine the only way to alter purchasing habits in U.S. would be to raise taxes but no one can pass a gas tax, as most are at the state level. Missouri voted there's down yet again last week(despite already having one of the lowest in U.S. already and in this booming economy. I live in Kansas so I unfortunately have to use their crummy roads daily .

    • See 1 previous
    • Art Vandelay Art Vandelay on Nov 18, 2018

      @stuki And we have a winner. Fuel taxes are to maintain the nation's transportation infrastructure, not force people into a vehicle they do not want.

  • Stingray65 Stingray65 on Nov 16, 2018

    This is exactly what you can expect when plug-in vehicles get adopted by "regular" consumers instead of "tree-huggers" or "hyper-milers" or "enthusiasts". Regular consumers are mostly some combination of lazy, unknowledgeable, and distracted, which means plugging in a car every time they stop will not happen. With a plug-in hybrid, it will simply mean they stop to buy gas every time the warning light tells them they are running low on range, and in an EV it means they will come out in the morning without enough range to drive to work (because they forgot to plug-in overnight) and will be pissed off at the car (because consumers never blame themselves for being stupid). They will tell their friends about the stupid EV that is always running out of gas, and their "regular" friends won't buy one. Cordless charging might solve this problem (if they can remember to park in the right spot in their garage), but at the cost of lost efficiency and more greenhouse gas emissions (i.e. the reason for electrification).

  • Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
  • Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
  • 28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
  • 28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
  • AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.
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