NEDC (New European Driving Cycle) is outdated and will be replaced by the WLTP, a new protocol to measure vehicles fuel consumption, CO2 and pollutant emissions. The so-called Worldwide Harmonized Light Vehicles Test Procedure provides a more realistic picture of vehicle usage, with average CO2 values expected to rise. As a consequence, companies that have included a CO2 limit in their car policy will need to analyze, reconsider and likely also adjust it.
WLTP is based on real driving data, aligned with actual road performance. This prevents partial or excessively favourable display of usage. It is expected under WLTP all emission values will be up to 25% higher than measured by NEDC. Subsequently wil be taxes and pricing, however vehicle taxation is a country-specific matter and therefore the exact impact will differ between countries.
When and for whom?
Given the importance of CO2 targets for the economic performance of vehicle manufacturers worldwide, WLTP also aims to harmonize test procedures on a global level, in order to create an equal playing field in the market. Beginning in September 2018 the WLTP will premiere and in 2020 NEDC is rendered obsolete worldwide. Organisations should prepare themselves for higher average CO2 values and proactively adapt their car policy.
Impact on your fleet
Although there will be a transition phase from NEDC to WLTP it is adviced to start preparing now. An adjustment of the car scheme can be worth considering for your organization. Do you want to look ahead and talk about the impact of WLTP on your current fleet policy? Your Business Lease account manager will be happy to support you with reviewing your current Car Policy. If you have any questions, please let us know.