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Green, lean or mean; true cost of purchasing Euro-4/5 and digital isn’t cracked by Eddington or Brown

For all the talk about Euro-4/5, selective catalytic reduction and exhaust gas recirculation, congestion charging, fuel duty and digital tachographs, its clear the truck industry is more concerned about the cost of implementing new technology than running it.
Sir Rod Eddington and Gordon Brown steered clear, although you could argue the former had little remit to include current/future technology, and the latter to do with reality but some vital issues have been overlooked.
The European Union is keen, and committed itself, to charging on emission outputs. Brown is yet to create an incentive for greener trucks, a la Reduced Pollution Certificate, so where do we go from here.

No where seems to be the answer; confusion and doubt control the current used truck market as operators clamour for the few remaining quality Euro-3 motors left up for grabs; it’s created a climate of short term-ism.
Euro-ratings though don’t seem to be the true issue for a stalling marketplace; digital tachographs are cited as the main culprit. Training for digital tachographs is creating a headache for operators who may have to invest thousands.
Potential overheads to retrain hundreds of drivers forced several volume players to update fleets ahead of schedule before the digital tachograph deadline last May. Rumours circulate that Royal Mail won’t update until past Euro-5 following its mass volume purchasing of Euro-3/analogue stock before relative deadlines – despite continuing trials.
For others it’s the 10% increase in asking price for Euro-4/5 emission level trucks. People are simply not willing to pay it as there is no difference in running Euro-3 or Euro-4, even when underwriting them they aren’t worth any more than Euro-3. It’ll only change when manufacturers drop their prices for Euro-4 or the government offer incentives.
Manufacturers offer a different point of view; to achieve the change in exhaust emissions from Euro-3 to Euro-4 and Euro-5 is expensive. It might look greater at first sight but spending now might save you money in the future when toll charges are based on emission levels. If that proves to be the case residuals will rise and the Euro-3 won’t be worth the V5 its details are written on.
Getting that message across to a conservative industry is difficult because there are no economic incentives left to go greener which is why Euro-3/analogue products are in such high demand in the UK.

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This page contains a single entry from the blog posted on December 7, 2006 4:49 PM.

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