What will change?
The new test procedure is designed to simulate dynamic driving behaviour in realistic environments.
This is done by:
- extending the test cycle’s duration and distance
- increasing the average and maximum speeds
- adding new driving phases and gear shift points
- keeping the temperature constant
- taking the vehicle's (optional) equipment into account
What this ultimately means is an end to tricks like removing side mirrors, masking grilles and “rigging” tyre pressure.
The difference between the two tests are especially visible where small engines are concerned. WLTP forces engines with a lower displacement to use their maximum capacity. In contrast, heavier engines have a higher reserve which causes the difference between the NEDC and WLTP values to be fairly negligible.
|Test duration||20 min.||30 min.|
|Test distance||11 km||23.25 km|
|Average speed||34 km/h||46.5 km/h|
|Driving phases||2 phases: 66% urban and 34% non-urban||4 more dynamic phases: 52% urban and 48% non-urban|
|Maximum speed||120 km/h||131 km/h|
|Gear shifts||Fixed gear shift points||Different gear shift points for each vehicle|
|Impact on optional equipment and air conditioning (AC)||N/A||Taken into account|
|Test temperature||20°C - 30°C||23°C|
Higher emissions: does that mean higher taxes?
WLTP aims to provide the most realistic account possible of the vehicle's consumption and CO2 emissions. NEDC values are currently under pressure as a result of the new test’s stricter criteria. The impact of this can be felt in the cost of a company car, among others.
For the company:
- lower deductibility
- higher CO2 solidarity contribution
- higher disallowed expenses
For the driver:
- a single, higher Benefit in Kind (BiK)
The government provides a transition period that extends to the end of 2020, during which time the WLTP values may be converted back into NEDC values: the so-called NEDC Correlated or NEDC 2.0.
However, on average, this value is still 15% higher in the A (mini compact - VW Up), B (subcompact - VW Polo), C (compact - VW Golf) segments and 10% in the higher segments, than the NEDC (1.0) figures.
WLTP values for new models
WLTP values for all models
The WLTP values (CO2) are converted to NEDC 2.0 values.
The NEDC 2.0 CO2 value is 15% higher on average than the NEDC 1.0 value.
Impact on taxation:
- Increase in benefit in kind
- Decrease in vehicle deductibility
- Increase in CO2 solidarity contributions
- Increase in disallowed expenses
01/09/2018 – 31/08/2019
During this period, sales of NEDC 1.0 value-compliant vehicles by manufacturers is restricted to no more than 10% of total sales of 01/09/2017 - 31/08/2018.
The current tax deductibility according to the CO2 scales shifts to a linear model, both in terms of the car's deductibility and fuel (currently 75% deductible).
Up to and including this time, the evaluation remains based on the NEDC 2.0 CO2 value and not the actual WLTP value.
Which philosophy do you prefer?
How do companies deal with these new developments? How do they prepare for the impact these will have on the workforce and fleet costs? There are three perspectives that consistently appear when formulating a strategy.
- Object: Provide employees and candidates with attractive salary packages
- Analysis: The CO2 values increase even where there is no change to the vehicle. This can create hierarchical issues within the team. For this reason I prefer to change our Car Policy to ensure that the categories don't change.
- Advantage: Employee experiences no change
- Disadvantage: Higher cost to the business
- Object: Cost control
- Analysis: As CO2 values rise, so does the cost of the fleet. I propose that the cars suggested for each category be revalued based on the new costs.
- Advantage: The financial impact on the company remains limited.
- Disadvantage: The range and the car categories need to be adapted.
- Object: Make sure that employee mobility is more sustainable, even to the extent that it be avoided.
- Analysis: The environmental impact must be reduced. I can be contacted not only for a company car, but also for a company bicycle, alternative fuels, a multi-modal solution such as Olympus or to develop a mobility budget.
- Advantage: Providing employees with sustainable mobility options and alternative fuels reduce the impact of WLTP on the fleet.
- Disadvantage: This method requires time and money to raise awareness within the organisation and ensure that it acclimates.
Prepare for WLTP in 6 steps
1. Analyse your fleet.
Analyse the total cost of your fleet today, based on current NEDC CO2 values.
2. Calculate future costs.
Calculate your future costs by taking the increase in CO2 values (based on NEDC 2.0) starting in September 2018 and the new deductibility adjustments starting in January 2020 into account.
3. Simulate alternative fuels.
Simulate the impact of alternative fuels on your costs.
4. Define your strategy.
Choose an approach (people, planet or profit) and base your strategy on it.
5. Draft a new Car Policy & Car Scheme.
Translate your analysis and strategy into a new car policy and car selection.
6. Communicate your plan.
Communicate the changes clearly to your employees. Explain the rationale, but keep the focus limited to the benefits that are relevant to them.
The future of WLTP
WLTP will also be supplemented by complementary RDE (Real Driving Emission) tests, where emissions are measured using specific mobile emission measurement equipment on public roads. This allows the actual emissions (mainly NOx) to be compared with the WLTP values within a certain tolerance. In an initial phase (for official approval starting on 1 September 2017 and for all new vehicles as from 1 September 2019), a tolerance factor of 2.1 on the Euro 6 standard (80mg NOx/km) will be in force. In a second phase (for new approvals starting on 1 January 2020 and for all new vehicles starting on 1 January 2021) this will change to 1.5 (i.e. a maximum of 120mg NOx/km). The tolerance factor may be revised annually, and must have reached 1 by no later than 2023.
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