EVERYTHING YOU NEED TO KNOW ABOUT WLTP

The Worldwide harmonized Light vehicles Test Procedure or WLTP, is the latest approval procedure for passenger vehicles. This replaces the old New European Driving Cycle (NEDC) procedure, which was last amended in 1997.

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.

NEDC WLTP
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)

NEDC 2.0

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.

  • 2017

    01/09/2017

    WLTP values for new models


  • 2018

    WLTP values for all models

    01/09/2018

    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.


  • 2020

    >

    01/01/2020

    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).

  • 12/31/2020

    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.

People

  • 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






Profit

  • 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.










Planet

  • 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

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.

ALD Automotive

ALD Automotive Belgium is the reference in Belgium for operational leasing and Fleet Management. An innovative view on mobility- and lease experiences helps us in offering flexible solutions such as company bikes, mobility applications and consultancy.

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