Germany

The German federal Government decided to implement an infrastructure sharing system (toll) for passenger cars in line with the first model for trucks (above 3,5T). As a consequence, foreign car drivers will have to buy a Vignette in order to drive on the German Autobahn. Although both foreign and domestic car owners will have to pay the toll charge, the latter will obtain tax relief through a deduction from the national vehicle tax of at least the same amount as the toll charge. Surprisingly, however, the European Commission agreed with the German government  on two main changes in the legislation (Infrastrukturabgabengesetz): firstly, a further differentiation of the vignette system from three to five vignettes, emphasizing the environmental impact of the toll; and secondly, lower prices for short-term vignettes, which are typically bought by foreign car owners (introduction expected but still not confirmed by 2021).

Source: tolls.eu, trans.info

After the exhaust gas scandal and the threat of a diesel driving ban, many wonder what is being done to make traffic more effective and sustainable. In May 2018 the top administrative court in Germany officially confirmed that German cities can impose diesel bans in restricted areas with immediate effect. Moreover, it specifies that the bans should not involve Euro 6 diesel cars. The ruling came just one day after the EUs lawsuit against Germany and 5 other member states for its repeated failure to ensure air quality in its cities. All diesel models up until Euro 5 are affected is a major blow to the industry, which is blamed for building cars that emit far more NO_x in real life than what the Euro 5 threshold (180 mg/km) allows.
 

Leasing trends

The German vehicle leasing sector is experiencing positive growth with company car registrations expected to increase 1.9% over the next five years, partly attributed to employees preferring the salary sacrifice model to fund their cars. Plus, given the uncertainty and high residual risks associated with car ownership, leasing is proving to be an increasingly attractive car finance option.

Government initiatives driving down the residual value of air polluting, fuel-guzzling cars, combined with the promotion of EVs through subsidies and tax incentives, is making fleet managers increasingly interested in new mobility contracts – most citing cost and environmental concerns as their motivation for considering a green fleet model.

However, EVs and hybrids are only making a significant impact on car-pooling in urban areas where charging stations are easily accessible. It is concerning that latest statistics reveal increasing registrations of diesel cars in the fleet sector particularly where long-distance driving makes diesel the most cost-effective fuel choice.  But at what price?

Reticence to opt for greener mobility solutions is not sustainable long-term for the environment or the economy. Although EV adoption in Germany has been much slower than some other European countries, several German cities, Berlin included have already banned diesel cars.

Increasing restrictions, introducing environmental zones and prohibiting high-polluting vehicles from entering a city is a step in the right direction. But pollution-laden travel is still an issue across Germany. Ethical stance, corporate responsibility and legislation need to change dramatically if Germany is to see the decline of diesel gather momentum in line with the rest of Europe.

Source: Traxall

The three biggest challenges for fleet operators in Germany:

1. The fast-paced, dynamic and highly competitive automotive sector.
 
Successful fleet managers must take a proactive stance on advising customers on new legislation, sourcing greener initiatives and smarter ways to operate – from reduced vehicle downtime and increased journey optimisation to eliminating fuel waste and air pollution. 

2. Finding qualified and professional staff

Notably staff who have the ability to adapt to the multifaceted and ever evolving services and qualities required by the profession. Traditional fleet management is evolving fast – it is now so much more than getting goods and resources from A to B efficiently.
It has transformed into a wider asset and solution management role – from people and environmental management, operational and legislative knowledge to budget control and technical automotive expertise. 

3. Digitisalisation

Digitalisation provides insightful data that could improve and evolve services and safety but the restrictions of data protection often hinder the ability to use findings to deliver best practice.

Source: Traxall