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It may sounds like a simple question to ask who owns Peugeot, but as one of Europe's oldest car manufacturers there are lots of interesting facts associated with the history of Peugeot ownership.
Answer the question....
The current owner of Peugeot is Stellantis, the combined company of PSA Group and Fiat Chrysler Automobiles created on 16 January 2021.
If you want to know more about the owners of Peugeot, then there's a seperate article all about this new global automotive powerhouse, called Who is Stellantis? in our advice section.
The Peugeot name is steeped in history. Life began making coffee grinders and bicycles, using the family expertise in making cog-based items the natural step was to bring that knowhow into gears for a car. In 1896 Armand Peugeot branched out from the family business to set up a new car company with the same name. The rest, as they say, is history, as Peugeot Cars became a roaring success
Peugeot grew into one of the largest car manufacturers riding out storm of two world wars to become France's best-loved manufacturer.
Peopele often get confused about the nature of how Peugeot and Citroen became a duo.
The marriage between France's two biggest auto makers happened in December 1974 when Peugeot bought a 38.2% share of Citroen.
Less than two years later, in April 1976 they took a controlling stake of 89.95% when Citroen went bankrupt.
This brought about the formation of PSA Group, which is short for Peugeot Société Anonyme. Henceforth, and up until the merger with Fiat Chrysler it was then known as PSA Peugeot Citroën.
The first Peugeot van dates back to the time of the formation of the Peugeot automotive business with the Type 13 delivery van, offering a 500kg payload and a motorised alternative to a horse and cart.
After WW1 the Peugeot van range began on its path towards the vans we know and love today with its first "car-derived" van - that's to say it was a car with no back seats and therfore suitable for carrying load items.
Later pre-war models took on the appearance of a pick-up truck with a flat load bed and boxy cabin for two occupants.
It was only after WW2 that the typical van dimensions started to take shape with the first front-wheel-drive panel vans. The D3A became the D4, the D7 and then then J7 and J9.
Into the 80s and the Peugeot model names that we now associate with their range started to appear. The Peugeot Boxer made its first apperance, offering a considerable upgrade in carrying capacity over the previous vans. It's also where the association with co-developed Citroen vans began as the two companies shared this new model, known as the Sevel van ((Société Européenne de Véhicules Légers SA and Società Europea Veicoli Leggeri-Sevel S.p.A.) because of its partnership with Fiat.
Flexis is the new collaboration between two huge names in commercial vehicles – Renault Group and Volvo Group. It is a new electric light commercial vehicle platform which will have dedicated EV platforms for commercial vehicles. There’s also telematics and scope for smart cities and autonomy.
Flexis was launched as a 50:50 endeavour between Renault Group and Volvo Group in 2023, however in April 2024 it was announced that CMA CGM Group had acquired a 10% stake within Flexis SAS. CMA CGM (a French logistics company) will invest up to €120 million by 2026. The resulting structure will see Renault Group and Volvo Group both take a 45% stake in the new Flexis business.
Flexis headquarters are based in France. Flexis will also use existing Renault Group facilities to manufacturer the all-electric vans. These will be based on connected electronic platforms that will be produced in the Renault Group Sandouville plant in France.
Flexis is a joint venture between Renault Group and Volvo Group, but Flexis models will be sold under the umbrella of Renault (cars and vans) by Renault Group and in Renault Trucks dealership under the Volvo Group company.
Flexis will be a standalone brand in its own right. The new company is pitching itself as an entirely new product offering in the market that will operate concurrently with the current brand of Renault-made vans. That means that the existing Renault Master E-Tech, Renault Trafic E-Tech and Renault Kangoo E-Tech will not be affected by the arrival of Flexis. Renault’s current crop of vans – which are also sold on licence by Renault Trucks – will actually become competitors to the Flexis models. That’s despite some of the vans sharing the same production facility.
There’s no sign of a Flexis logo just yet, but the press conference was bathed in purple light. Could that be a hint for the colour scheme for the eventual Flexis logo? Only time will tell.
The Flexis CEO is Philippe Divry a Volvo Group executive with a background in heavy trucks. Divry has formerly been MD of Volvo India and SVP of Truck Joint Ventures within Volvo Group. Most recently, Divry was senior vice president of group trucks strategy at Volvo before taking up the position of Flexis CEO.
Krishnan Sundararajan holds the position of chief operating officer at Flexis having been project director of Renault's FlexEvan electric van project.
Flexis will make a range of electric vans using a skateboard platform. This will enable Flexis to offer a high degree of modularity. There are expected to be an initial line-up of up to three new models – if the teaser image is anything to go by – and there will be further derivatives with different body types to suit vocational needs, such as home delivery and parcel courier. The vans will use an 800v architecture for faster charging and improved performance
The creation of Flexis is estimated to create as many as 550 jobs in the next four years. Production resources will be shared with the existing Renault manufacturing facility but additional output will require more staff.
Flexis is also expected to run as an entirely independent division from the three owner.
Stellantis is one of the world’s largest car manufacturers, created in 2021 with the 50:50 merger of PSA Group Peugeot-Citroen and Fiat Chrysler Automobiles. They are amongst the largest vehicle manufacturers in the world with ambitions to become the largest.
As a result of the Stellantis buyout, the newly formed Stellantis company suddenly found itself with a lot of different owners including majority shareholders of both previous companies – namely the Peugeot family of France and the Agnelli family from Italy.
Fiat Chrysler Automobiles (FCA) was largely owned by the Agnelli family and as such took a majority stake in the new company through its business, Exor. As majority owners of PSA Group (Peugeot-Citroen), the Peugeot family also took a sizeable share in the business, as well as investment arms for the French government, Bpifrance. Additional shareholders include Chinese vehicle manufacturer Dongfeng Motor Corporation.
The resulting company was listed on the Milan and Paris Stock Exchanges as well as in America on New York Stock Exchange (NYSE) where it uses the ticker $STLA for trading.
Stellantis is technically registered and headquartered in The Netherlands. Officially, the business headquarters of Stellantis NV is located in Amsterdam, The Netherlands, with its corporate office in Taurusavenue 1, 2132 LS, Hoofddorp, The Netherlands.
Functionally, there are actually several bases of operation including Milan, Paris and Detroit. This is a result of the merging of many of the corporate entities into Stellantis and their own headquarters. Considerable cost-cutting, however, has seen a number of premises sold or the leases lapse. Perhaps most famous of all is the Lingotto building, once the headquarters of Fiat. Lingotto is most famous for its rooftop test track, immortalised in The Italian Job film. The Lingotto test track is now closed, but it is still walkable on foot. A portion of the rooftop is now used as an outside dining area for a restaurant. The iconic banked section of the Lingotto roof top test track is, however, still used for advertising and commercials. Stellantis no longer owns the Lingotto building.
The Stellantis companies are the merged parts of the PSA Group and Fiat Chrysler Automotive.
Under the merger of the two companies a huge number of iconic names came together. The full number of Stellantis brands now totals 14 car companies, with many other names consigned to the history books. So, what brands are Stellantis? The current Stellantis brands of active car companies is Arbarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, RAM and Vauxhall. There are also additional non-manufacturing brands related to finance and mobility. These are Free2move and Leasys.
The Stellantis logo, unveiled at the launch of the company, is the world Stellantis in capital letters. The A in the centre of the word is surrounded by a circular sea of stars, while the central horizontal line of the A is also missing which makes the converging lines look like a road. The name is said to come from the Latin verb ‘stello’ which means adorned with stars.
The Stellantis CEO is Carlos Tavares. Tavares (pictured) is an accomplished automotive sector businessman, having previously been PSA Group CEP and President of the managing board. Tavares is known to be a shrewd businessman with a keen key for cost cutting and leveraging economies of scale. There have inevitably been a few Stellantis layoffs as a result of the merging of functions under the new company.
The Stellantis Chairman is John Elkann, heir to the Agnelli empire and a notable Italian businessman and industrialist. He is the CEO of Exor, part-owner of Stellantis, with controlling stakes in Ferrari, CNH Industrial (makers of Case New Holland tractors) and Iveco Group (makers of Iveco vans and trucks).
Announced in 2023, Stellantis Pro One is the collective name for the commercial vehicle brands within the Stellantis group of companies. Stellantis Pro One brands include Citroen, Fiat Professional, Opel, Peugeot, RAM and Vauxhall. Stellantis Pro One builds vans and other light commercial vehicles including pick-up trucks, software solutions for telematics and vehicle tracking, as well as manufacturing white label products for partners like Toyota vans.
Stellantis currently makes more than 100 individual models in Europe alone with many more in markets across the world. Stellantis brands are sold in more than 130 countries.
Stellantis has the largest van product range of any automotive manufacturer. You've come to the right place to find out about them all too. The vans that Stellantis make currently includes the Citroen Berlingo, Fiat Doblo, Opel Combo, Peugeot Partner, Vauxhall Combo, Citroen Dispatch, Citroen Jumper, Fiat Scudo, Opel Vivaro, Peugeot Expert, Vauxhall Vivaro, Citroen Relay, Citroen Jumpy, Fiat Ducato, Opel Movano, Peugeot Boxer, RAM Promaster and Vauxhall Movano. There are also electric versions of each of those models, as well as passenger van versions of the car-derived vans, chassis cabs, Luton vans and other derivatives.
No. But, one of the Stellantis owners does. Ferrari was part of the Fiat empire owned by the Agnelli family. Its historic name, however, carried so much clout that it was separated from the Fiat Chrysler Automobiles group of companies in order to strengthen it and increase profits. Therefore, Stellantis does not own Ferrari, but Stellantis shareholder Exor (run by Stellantis Chairman John Elkann) does.
Yes. Jeep was one of the Chrysler brands brought into the Fiat Chrysler Automobiles group when the Detroit manufacturer hit the skids in the global financial crisis of 2008.
Yes. Dodge was another one of the Chrysler-owned names that Fiat acquired when it bailed out the American giant and took it out of Chapter 8 bankruptcy.
Yes. Maserati has long been part of the Fiat Automobile Group and along with its famous Italian sibling Alfa Romeo was part of the companies merged into the creation of Stellantis.
Yes. Stellantis owns Fiat as part of the new structure of the combined companies of Fiat Chrysler and PSA Peugeot-Citroen.
Yes, Chrysler became a part of Stellantis as part of the merger of Fiat Chrysler Automobiles and PSA Group.
No. Despite a significant number of its sales, production and even brand names being of American origin, the Stellantis company is technically Dutch and is incorporated in The Netherlands. Stellantis does contain American car brands Dodge, Jeep, RAM and Chrysler.
Stellantis has production sites in 29 countries, and sells vehicles in more than 130 countries. The number of employees on the payroll is said to be in the region of 400,000 people.
If you drive or operate a van to support a business, the chances are you’re often on the go – time is money, after all. In many cases, a van is a critical asset to allow businesses to reach and serve their customers. It’s vital, therefore, that you take the time to ensure your tyres are safe and suitable for the task at hand.
Is there a difference between car and van tyres?
Put simply, yes. Although they may look similar at a glance, a van tyre is specifically engineered for the work it needs to carry out. Not only could it be unsafe to fit a car tyre to a van, but it could also be illegal.
A major difference between car and van tyres relates to operating requirements which include the tyre’s load rating – the gross weight that the tyre has been graded to support, durability in both mileage and robustness and inflation requirements. In many cases, the whole purpose of an LCV is to carry heavier, bulkier payloads than would be suitable for a car. The exact same should be said for a van’s tyres, too.
A dedicated van tyre is optimised for performance and efficiency in what is a very specific use case. Some have sidewall protection built in, as well as different tread compounds and pattern designs with usually greater original tread depths to help operators extract the maximum service life from the tyre. Others have been developed for maximum economy for drivers covering high miles. This tyre uses an innovative rubber compound to combine wet performance with low rolling resistance.
What should I be doing to look after my tyres?
There are some easy steps any vehicle owner or driver can take to look after their tyres. First and foremost, a regular visual inspection cannot be underestimated. Look for damage, especially to the sidewalls, and check for anything embedded in the tread grooves. Spotting a screw, nail or other puncture-creating object early could be the difference between an inexpensive repair or a replacement tyre. It’s also vital to check your tread depths. If your tyre tread is below 1.6mm, the tyre is not road-legal and must be changed.
A major contributing factor to premature tyre failure is underinflation. You should regularly check that your tyres are inflated to the manufacturer’s recommended pressures. Don’t just rely on your vehicle’s in-built tyre pressure monitoring system to warn you they’re low, either. Even a few PSI short of the recommendation can have an impact on tyre reliability and fuel economy.
What are the consequences of poor tyre maintenance?
As mentioned, low tyre pressures can cause a reduction in fuel economy and cause premature damage to a tyre. It also makes them more susceptible to picking up a puncture. These are just tyre-related issues – think about the cost and business implication of taking the vehicle off the road at short notice and potentially having to let customers down.
Continuing to use a damaged tyre may not only be illegal, but it will significantly increase the risk of a tyre blowout. A blowout happens when there is a sudden depressurisation of the tyre – a bit like popping a balloon. The forces exerted from the explosion can cause fatal injuries to anyone standing in proximity to the tyre and can easily cause a loss of vehicle control if it’s heavily loaded and travelling at speed.
How do I know which van tyre is right for me?
We’d recommend speaking to your trusted tyre partner or retailer. Explain to them how you typically use your vehicle, and they should be able to provide you with a recommendation.
How to calculate van running costs, and minimise the outgoings in your van operation.
Knowing the cost of owning and running a van is essential for an operator to be able to work efficiently, yet few operators have a true idea of what their actual costs are.
One common way of establishing the costs of a vehicle operation is through cost tables, which deal with each of the classes of standing and running costs and usually contain realistic specimen costs.
Cost tables are a good starting point, but they can be overtaken by rapid changes in cost – particularly fuel prices – and they may make some assumptions which are simplistic or which do not apply to every operator.
These are the costs which have to be borne before the vehicle can start operation – they remain essentially fixed whether the vehicle is moving or not.
The standard cost tables show that for all but the highest-mileage van operators, standing costs outweigh running costs. However, establishment costs (see below) and depreciation are greatly susceptible to changes in accounting practice, and may even be ignored in some cases.
For heavy goods vehicles fuel is the major cost, but it soon becomes clear that for almost all van operators, the driver is by far the largest single element of cost – and anything that can reduce the driver’s unproductive time could save money. An expensive item of manual handling equipment might look much less expensive if it allows the driver to make two more drops in a day. The cost of the driver is usually easy to establish, but it is important not to neglect extras such as NI payments.
This is a catch-all term to cover overheads such as property rent and rates, power and other utilities and administration costs. It is probably the element which varies the most between companies, and it may not be appropriate to include it in all calculations.
The cost of van insurance and any additional business liability cover. Insurance premiums vary widely from fleet to fleet, and it may be worth establishing measures to cut them: approved driver training (such as the government’s SAFED scheme) or a driver incentive scheme for incident-free driving.
How much is my van road tax or the cost of vehicle excise duty for the vehicle in question. Clearly this is not negotiable, but it may be useful to calculate whether a vehicle in a lower VED band like an electric van would save significant cost.
This may be calculated in many ways, and may include an element of van finance costs. Whichever method is used to calculate depreciation, it represents a large proportion of the overall cost – indeed, for a low-mileage vehicle it may be a larger annual cost than fuel.
But there are measures which can improve vehicle residual values: broadly, the wider the market for a vehicle, the better its residuals – so an unmarked white medium-wheelbase panel van with a mid-range diesel engine will command proportionally better residuals than a high-spec, signwritten van fitted with specialist equipment.
This does not just apply to vehicles which have been bought outright: for vehicles on leasing schemes or contract hire, a lower residual value means higher monthly rental payments.
These are the costs which vary directly according to the usage of the vehicle, and are dominated by fuel: typically, this represents three-quarters or more of the running cost, dwarfing the figures for tyres, lubricants and maintenance – and with the cost of fuel increasing faster than the rate of inflation, this trend will only continue.
Nevertheless, it is important not to neglect the other elements of running costs, and these can often be made predictable through cost management schemes.
With the high cost of fuel, there is no excuse not to manage its use carefully. Operators should make use of fuel cards – these offer detailed management reporting of fuel purchase – along with systems to monitor vehicle use: a simple daily check and record of the mileage is a good way to detect unusual patterns of fuel use.
The choice of van itself, the van specification and weight, has an effect on fuel consumption, of course. There is now official websites giving fuel consumption and CO2 emissions figures for most vans but remember that this information is comparative only.
The largest variable in fuel consumption, however, is the driver; additional driver training can show substantial gains in fuel economy, while some fleets offer bonuses or prizes for the most economical drivers on the fleet. However, this can be difficult to judge unless all drivers cover near-identical routes and times.
Increasingly vans are available with automatic or automated gearboxes: these make life easier for the driver, and may improve fuel economy in stop-start urban driving, so the additional cost may be worthwhile. If you're using a van for towing that will also have an impact on costs.
More fleets are adopting tyre or lubricant management contracts, which outsource the supply and maintenance of these items (usually to the tyre or oil manufacturers). This keeps costs predictable, and can help prevent premature failures – tyre maintenance contracts typically include regular inflation checks (themselves useful to maintain fuel economy) and visual inspections of the tyres for damage.
Similarly, many operators are turning to repair & maintenance contracts, usually provided by the manufacturer and often part of a contract hire package. Again, this keeps an element of the cost completely visible and predictable.
For private car buyers the level of dealer support is important, but it is usually a secondary consideration. The same can be true when buying a new van.
But for commercial vehicle operators, however, dealer backup is vital, and some buyers base their purchase decisions as much on the dealer as on the product itself.
The key measure of a dealer network’s effectiveness is uptime – how much useful operation operators can expect out of their vehicles. This is where specialist maintenance, out-of-hours servicing and fast emergency response all become significant.
And these are valid for any van buyer:
The headline figure given by most manufacturers for their dealer network is the number of service points on offer. However, it is important to compare like with like: are the service points truly capable of dealing with commercial vehicles, or are they simply car-based workshops? Something as mundane as the size of each workshop service bay can be significant – a conventional service bay of standard height and width cannot cope with the size of a Luton-bodied van, for example.
Some of the car-based van manufacturers have opened specialist ‘Van Centres’, with longer opening hours than their typical car dealerships.
It is also important to distinguish between dealer groups and service points. Dealer networks has consist of dealer groups, with sometimes 100s of locations, but there can also be other sites forming an ‘authorised repairer network’. These independent workshops are nominated by the dealer network, and have technicians trained to the same level as main dealer technicians.
Car dealerships have improved their service levels in recent years, but they have yet to catch up with the best commercial vehicle dealers. Van and truck dealers are set up to keep vehicles in operation and generating income.
Some dealers can help to minimise downtime by offering routine out-of-hours servicing, as well as a pick-up and drop-off service for commercial vehicles. Dealers have to meet stringent standards for service levels. For example, they have to be open for service for at least 95 hours a week, to include the core hours of 8am-8pm from Monday to Friday and 8am-1pm on Saturday. In practice, many dealers are open 24 hours a day for six days of the week.
While it is no longer obligatory to have a vehicle maintained at an official manufacturer’s representative when buying a new van. Independent repairers now have better access to technical information under the European Commission’s block exemption rules. But there are good reasons to remain with the original dealer. These include access to the latest updates and recalls for you van.
Factory-supported dealers also get the latest diagnostic tools, and are able to reprogram systems as necessary. Only the dealer network is authorised to reprogram your van.
Repair and maintenance (R&M) contracts are primarily a way to take control of operating costs when buying a new van. But there’s definitely the potential for saving money. The resale value of a vehicle may also be improved if it has a proven service record.
An R&M contract is typically based around a ‘home’ workshop – one nominated as convenient for your operation – but it may be negotiated to include repairs at remote workshops within the dealer network where necessary.
The contract can include repairs due to wear and tear as well as planned maintenance, and it may just cover the basic chassis of the vehicle, or include the bodywork and any auxiliary equipment.
The contract may also cover tyre management, as well as MoT tests and the periodic roadworthiness inspections required by VOSA for O-licence holders.
All these elements of maintenance and repair may be included in a contract hire package, which can make it easy to budget for almost every cost relating to a vehicle’s operation.
Breakdown assistance is a major aspect of the support that a good dealer network can give. Commercial vehicle operators need specialist assistance – not simply a service to get the driver home, but rapid repair in order to get the load to its destination on time. It is vital that the dealer and manufacturer work together to give the best possible assistance.
Clearly, the success of a good assistance network depends on the number of dealers involved and their hours of opening, but it also relies on an efficient communications system. Several manufacturers have call centres based on mainland Europe; while this may at first seem undesirable, in practice this is not an issue. In fact, it ensures that service standards are consistent throughout the Continent (vital for international operators), it can help in ordering vital spares and it allows the manufacturer to collate performance statistics over a wider area.
The manufacturer should set standards – and should be able to give actual performance figures – for terms such as maximum estimated time of arrival (ETA), ETA versus actual time of arrival, time taken between arrival and successful repair and so on.
When buying a new van, the retail buyer demands the best of both these worlds; they want the B2C ‘polish’ that the private car buyer enjoys - the comfortable and smart reception areas comprising of refreshment and audio visual stimulation, they want service at short notice and yet courtesy vehicles for pre-booked appointments, they want to engage with staff who are not just technically clinical and not just meters and greeters. But they also demand the same respect that the B2B heavy commercial world receives in the unspoken acknowledgement that time is money and the clock is ticking.
The key measure of a dealer network’s effectiveness is uptime – how much useful operation operators can expect out of their vehicles. This is where specialist maintenance, out-of-hours servicing and fast emergency response all become significant.
It is a challenging juxtaposition that in reality requires the approach of a full range commercial vehicle manufacturer in order to meet these exacting needs. A manufacturer who lives and breathes the heavy commercial scene yet has substantial investment in van design and engineering, where these two worlds collide and each sale enforces that.
With pressure on operators to reduce pollution and cut their carbon output, what are the pros and cons of the alternatives to diesel power?
With concern over air quality and man-made global warming, there is increasing pressure from legislators and customers for vehicle operators to account for their emissions, and to reduce them wherever possible. The main areas of concern are nitrous oxides (NOx), hydrocarbon emissions (HC) and particulate matter (PM) – these can worsen air quality and have an effect on public health – as well as carbon dioxide (CO2), which is the main greenhouse gas associated with global warming.
Some cities are adopting ‘low emission zones’ (LEZs) which generally require vehicles with the latest emissions standards, while many firms are undertaking environmental audits, which usually focus on the net carbon production of the firm’s operations – its ‘carbon footprint’: fuel type and fuel usage are a large part of these audits.
More small companies are also undertaking green audits, particularly those in public sector work or facing eco-conscious consumers.
But these audits are about more than fuel: recycling is another issue, and while there are no current standards for commercial vehicle recyclability, it is worth noting that over 90% of an Iveco EcoDaily is recyclable.
The vast majority of commercial vehicles are powered by either compression-ignition (CI) diesel engines or spark-ignition (SI) petrol engines. Diesels are generally much more fuel-efficient than SI engines – so they emit less CO2 – but they tend to generate more NOx and PM.
Engine technology has improved dramatically, so that NOx, HC and PM emissions are all a small fraction of what they were twenty years ago. Driver aids such as stop/start systems and automated gearboxes can give significant fuel savings, while driver training is also a cost-effective way of saving fuel and thus reducing emissions.
But despite the increasing efficiency of diesel engines organisations are looking for power sources which improve air quality and reduce ‘carbon footprint’. However, all the alternatives are compromised in terms of range, performance or expense.
LPG (Liquefied Petroleum Gas) runs in lightly-modified SI petrol engines and generates low particulate emissions, but has no carbon benefit. It has attracted lower duty rates than petrol or diesel , but this advantage is steadily being reduced, and LPG is unlikely to be cheaper than other fossil fuels in the long term.
Natural gas (methane, CH4) is a clean-burning fuel which – for cars and vans – is used in SI engines and is suited to urban operations where air quality is paramount. It can be stored as CNG (compressed natural gas) or LNG (liquefied natural gas). CNG is stored in high-pressure steel or composite tanks. Even so, the ‘energy density’ of CNG is still lower than that of diesel fuel, so the tanks are bulky and range is compromised. There is a limited network of CNG filling stations in the UK, but the fuel is best suited to depot-based operations with a gas compressing plant (supplied with mains gas) on site. Some manufacturers offer CNG vehicles converted by a third party; Iveco offers a range of full factory-built CNG vans and trucks.
LNG is stored in insulated tanks at -160°C; again, the tanks are bulkier than diesel tanks, and operationally LNG vehicles are exactly the same as CNG vehicles. LNG filling tanks are easily installed at a depot, but there is again a limited network of LNG filling stations. None of the large manufacturers sells off-the-shelf LNG vehicles, but Iveco will convert CNG vehicles upon request.
Biofuels have been produced from plants or other biological matter, and they can be used without a net contribution to CO2 levels, making them ideal for minimising carbon footprint. They are also often usable as direct replacements for fossil fuels with no hardware modification. However, there is some concern over the sustainability of biofuel crops which take the place of food crops.
Biodiesel can come from plant crops or used cooking oils, and can be used as a diesel substitute or blended with mineral diesel to produce bio-blends B10, B30 etc. It represents an easy way to reduce a vehicle’s net carbon emissions. Before using biodiesel it is advisable to consult the manufacturer because acceptable levels vary greatly.
Biogas is natural gas (methane/CH4) produced in a ‘digester’ plant from vegetable waste, food waste and landfill rubbish. It is a direct substitute for CNG or LNG, and is sold at a small number of sites. Environmentally biogas is a good option. In the short term, it’s one of the best opportunities to get a good environmental result at the lowest cost.
Bioethanol is an alcohol fuel which can be used as a full or partial substitute for petrol – pure bioethanol has higher energy content than petrol.
Battery-powered electric commercial vehicles are well established: milk floats demonstrate quiet, reliable operation without local pollution – as well as short range, high weight and high purchase cost.
Modern electric vans are better, and are available at almost every size: Most manufactuers for example, make 3.5t and 5t GVW models. But they still have a major limitation: batteries are heavy and expensive, and to get significant range or performance the payload has to be reduced. An electric vehicle has a high upfront cost and it’s difficult to demonstrate a payback – you’ve got to have a low daily mileage to make them work. Electric vehicles are best suited for city applications.
While tailpipe emissions are non-existent, the electricity needed to charge the batteries has to come from somewhere – whether fossil fuel, nuclear or a renewable source.
Hybrid vehicles, typically with a diesel or petrol engine and a supplementary electric motor, can reduce tailpipe emissions dramatically – at low speeds, they often run on battery power alone – as well as saving fuel in stop-start operation. Range is not a problem, but as with electric vehicles the payback time is likely to be long.
Fuel cells are an alternative to battery power: they use a chemical fuel to generate electricity. The fuel is usually hydrogen (H2), which combines with oxygen to produce water. The Vauxhall Vivaro-e Hydrogen is an example of a fuel cell van being tested.
However, producing and storing hydrogen is problematic, so attention has moved to liquid-fuelled cells, typically using ethanol. This is an attractive solution, with no range limitation and potentially a small carbon footprint, but the vehicles will remain as prototypes for years to come.
There's a lot of information to take in when looking at a van's specification, trim level and weights. Many manufacturer options mean that there are hundreds of different van variants with the van weights being amongst the most confusing thing.
This quick guide will give an overview of the sort of details and data you'll find in a manufacturer's brochure when it comes to buying a van.
How to understand a van’s spec sheet and decide which specifications are relevant for your operation.
Commercial vehicles are sold in a bewildering variety of specifications with an enormous number of options. You must identify which characteristics are most significant for your operating requirements, and establish the best combination in terms of load capacity, route suitability and cost.
The main categories of specifications are weights, payloads, dimensions and driveline (engine and transmission) as well as body specification, safety and driver comfort. All of these can have a substantial effect on the purchase price, van finance, its subsequent depreciation, as well as its running costs.
Most commercial vehicle weights are measured in kilograms or tonnes; the most important weight figures are payload, kerb weight, GVW, GCW and axle ratings.
The starting point for most operators is payload: the weight of the load (including all packaging materials) you need to carry.
Van specification sheets always show payload prominently, calculated by subtracting the unladen weight (or kerb weight) of the van from its Gross Vehicle Weight (GVW). However, any quoted kerb weight usually ignores any additional equipment or fittings, and often assumes a less-than-full tank of fuel; it may include an allowance of 75kg for a driver.
But if you add options, or use a two-man crew, the usable payload will go down; for a small van, the change in payload can be substantial.
Gross Vehicle Weight (GVW, sometimes called Gross Vehicle Mass/GVM or Maximum Authorised Mass/MAM) is the maximum permitted operating weight of a vehicle, including all loads, passengers etc, but not including any trailer. This is a legal as well as a technical maximum, and has important implications: above 3.5 tonnes GVW, you require an Operator’s licence, a van tachograph must be fitted and a special driver’s licence may be needed to drive the vehicle.
Note, however, that 2 tonnes GVW is the threshold above which van speed limits are lower than those for cars.
Gross Combination Weight (GCW, sometimes called Gross Train Weight/GTW) is the maximum permitted operating weight of any vehicle including towing a trailer. However, there may also be a limit on the maximum permitted weight of a trailer (lower for an unbraked trailer than for a braked trailer).
Axle ratings are significant if you intend to operate the vehicle fully laden. Each axle’s plated rating (in kg) is the maximum load the wheels on that axle can transmit to the road, as measured on a weighbridge. The sum of the axle ratings is usually greater than the GVW, by an amount known as the axle tolerance: for example, if a 3.5t GVW van has axle ratings of 1,750kg (front) and 2,100kg (rear) it has an axle tolerance of 350kg (1,750 + 2,100 - 3,500 = 350); this gives some scope for the load to be positioned at different points along the length of the vehicle.
Choosing how to buy your van is critical to an owner or business, so having the right van finance is really important.
We'll give you a quick rundown of the important terms you'll find in the world of van finance that will help you navigate the tricky terms used when it comes to buying a van.
While some firms insist on paying up front for their new vehicles and owning them outright, most operators are aware that this is not the only way: choosing the appropriate finance option can improve cashflow and tax planning.
Financing the purchase of a new vehicle can appear complex and risky – but by asking a few relevant questions, the choice of a finance package becomes much easier.
The first issue is whether the operator wishes to own the vehicle outright; if so, the choice of finance packages is straightforward. If ownership is less important, then the issues come down to cashflow, flexibility – an operator may wish to operate the vehicle only for the length of a customer contract – and whether the vehicle should appear as an asset on the balance sheet. With any financing option, it is important to investigate the choice of finance providers: the main options are banks, specialist leasing and contract hire firms and the manufacturers’ own finance arms.
Manufacturers do not just finance their own products: they will look at the complete package, including bodywork and equipment and even competitors’ vehicles. Whichever option an operator goes for, it is vital that they take financial advice on the tax position, and that they examine any agreement carefully to check interest rates and additional fees.
Specialist information on rental and leasing can be obtained from the British Vehicle Rental and Leasing Association, which is the trade body for companies which rent and lease cars and commercial vehicles.
Few operations have the cash reserves to buy large assets such as vehicles outright without some form of financing – and those that do might be better off keeping their cash in reserve for shorter-term commercial opportunities.
Hire purchase (HP) is the ‘traditional’ way to finance a vehicle purchase: the vehicle itself is effectively collateral for the loan, which is paid off entirely within a fixed time. The vehicle remains the property of the lender, and if payments are missed, it can be repossessed. At the end of the loan term, the borrower pays a fee (which may be less than a monthly payment) and takes full ownership.
The obvious benefit to the operator is in terms of cashflow, and with initial agreement lenders may be able to offer variable payment terms.
During the HP period, the borrower is the ‘Registered Keeper’ of the vehicle – it is an asset on their balance sheet – and can claim the appropriate capital allowances. There is another tax benefit, in that interest on the repayments is allowed to be set against profits. However, VAT is payable on the initial purchase, which is reflected in the payments.
This is similar to hire purchase, except that the regular payments do not cover the full purchase price. Instead, a larger final payment (sometimes known as a ‘balloon payment’) is required to take ownership of the vehicle.
Leasing can be an attractive choice if the customer does not need to own the vehicle outright; the vehicle is effectively bought on the operator’s behalf, and the operator pays a regular rental fee over a fixed term. This rental is lower than a typical hire purchase payment and is tax-deductible, although it does attract VAT.
The choice of leasing is very often driven by accountants. It can be very attractive not to have an asset showing on the balance sheet. In this case an operating lease or contract hire is the way to go. Contract hire can eliminate worries over residual values or maintenance.
The BVRLA says that a typical van lease contract is over a four-year term at 18,500 miles per year. Whichever scheme is chosen, the final condition of the vehicle can be critical to ensure that no penalties are charged. The BVRLA’s ‘LCV Fair Wear & Tear Standard’ establishes standard conditions for the return of vehicles, while organisations such as the Freight Transport Association (FTA) offer independent end-of-lease inspections.
With a finance lease, the operator pays regular rental fees on the vehicle for a fixed period; there is no high initial outlay, but the vehicle remains on the operator’s balance sheet. At the end of the lease period, the rental agreement may be renewed (at a lower rate) or the operator may dispose of the vehicle, keeping a substantial portion of the sale price.
With an operating lease, the operator pays regular rental fees, which are lower than with a van finance lease because the residual value is taken into account, and the vehicle remains ‘off balance sheet’.
At the end of the finance period, the rental agreement may be renewed or the vehicle may be returned. There is no depreciation risk, but strict terms of mileage and usage are applied – excess mileage and damage penalties may be payable – and the operator recovers no value from the vehicle at the end of the term.
Contract hire works like an operating lease, in that the asset is off the operator’s books, rental fees are fixed and allowable against tax and the vehicle is returned at the end of the contract. But contract hire rental payments can incorporate repair and maintenance contracts (on the chassis, bodywork and equipment), road fund licence fees, tyre management, breakdown cover and almost every other aspect of fleet management.
Essentially, contract hire makes it easy to predict and budget for almost all the costs of operating a vehicle, and is proving increasingly popular.
Like death and taxes, van insurance is one of the unavoidable aspects of owning a van. Whether you own a van to deliver goods, or you need it for your work, it’s important to have the right type and level of van insurance. Like with car insurance, insuring your van falls into a few different categories.
There’s third party, fire and theft cover as well as fully comprehensive van insurance. While you may think the cost of the two would be dramatically different, there’s surprisingly little between them these days. Full comprehensive insurance would always be our recommendation for a commercial vehicle, primarily because they are at greater risk of theft or damage.
Vans are the most targeted type of vehicle by thieves due to their nature as load carriers. Vans often contain expensive items of equipment or are transporting goods for delivery. Thieves are acutely aware of the value inside vans and unfortunately some vans are easy to break into - another factor that can affect insurance premiums.
So, what do you need to know about insurance? In this guide to insuring your van well cover off some of the most commonly asked questions about vans.
Yes, vans do cost more to insure than a passenger car would but there are good reasons for this. Looking at vans in general they are larger than your average car. A bigger size increases risk, and vans are also heavier, another potential risk. The risk of theft of or theft from a van is also going to add to the insurance premium. Finally, vans are often driven with a little less care than your average car. That’s not to say van drivers are dangerous but when looking at a risk profile to determine the insurance premium, van drivers (typical male, 20 to 40 years old) are a naturally more expensive liability.
Vans need the same level of cover as a car but what you use it for may depend on what you need to cover. If you own a van for private reasons - maybe to transport your mountain bike or for the odd camping trip - then you won’t need to insure it for business use. However, if you regularly pitch up at a farmers market or car boot sale then there's an argument that this is a business vehicle. You should therefore consider getting business insurance and cover for the van that includes business.
Obviously if you're a builder, plumber, courier or any other profession that used a van for their day to day job you must get business cover on your van insurance.
There are a number of factors that determine the price of insurance and for a van there is a higher risk factor. Vans are larger than most cars which opens them up to more risk for the insurer. Large vehicles are more expensive to ensure because they are more expensive to fix, but that's not the only reason why van insurance is so high.
Vans carry goods. Goods are appealing to thieves. Whether its tools or parcels, there's a reason for vans to be broken in to. While the contents might not necessarily be covered by the insrunace - always check your cover levels for tool insurance - the simple act of breaking into a van is incredibly destructive. Whether the van has been cut open, or the van locks forced, there'll be damage and that's going to be expensive to repair.
Another risk factor is that vans tend to travel more miles than your average car. While most cars cover between 8,000 to 10,000 miles per year, the average mileage for a van is closer to 30,000. Some are on the roads for eight to ten hours per day. These all increase the risk factor that determines the price of the van insurance. Even if you only intend to drive your van for 5,000 miles per year, based on other people's usage and the risk factors of the general van population, you will be paying a premium because of it.
The original price of the van will also come into the equation when getting a van insurance quote. If you've got an electric van the insurance will likely be higher than a diesel van. That's because the cost of replacing an electric van is a lot greater due to the price of the batteries and all the technology.
Business van insurance what you should be looking for. Even if you're only using your van for a little bit of work, if it's part of how you earn a living then business insurance is what you should be looking for. Make sure it covers equipment you are transporting and it's always a wise idea to get legal cover as well.
If you've bought a van as a holiday vehicle or maybe you're a surfer who's heading to the beach, you'll need a different level of cover to a business. This is social use and your standard level of cover you'd get for your car would be sufficient. But, you're still driving a van, so don't expect it to be cheap.
Small vans tend to be the cheapest for insurance, but it will largely depend on the model.
The Citroen Berlingo and its sibling the Peugeot Partner regularly come out as the cheapest vans to insure. Vauxhall Combo and Fiat Doblo are also now based on the same platform and will have similar insurance premiums. Other small vans worth considering are the Ford Transit Courier and Renault Kangoo.
It's not easy to say how much exactly insurance is for an LCV as there are a lot of factors to consider that will change the premium. According to several leading insurance companies the majority - so more than 50% - of custoemrs pay around £800 per year for cover. That comes out to around £65-70 per month.
However, if you're a young driver - under 25 - that figure can be drastically higher. As much as three times the price. Many young van drivers have to pay more than £2000 per year for their van insurance. That's the equivalent of more than £165 per month.
You don't always get what you pay for with insurance, so its imporant to compare the coverage you are getting, but you can get van insurance cheaper by altering the excesses you are willing to pay. Most insurance will have a standard level of excess for when you make a claim. This will usually amount to a few hundred pounds. But you can get cheaper van insurance by offering to pay more excess in the event of a claim. The higher the excess, the less the insurer will have to pay out if you make a claim. This means they are willing to give you a small discount.
Don't be tempted to lie about your circumstance in order to get you van insurance cheaper. There's a whole load of things you could conveniently forget to mention, from speeding tickets to previous claims. But if you do, and you then need to make a claim these will almost certainly come to light. You then run the risk of the insurer not paying out because you have been dishonest. Honesty is definitely the best policy when it comes to making insurance declarations when buying.
Yes, temporary van insurance does exist but it is expensive. Like with any other type of insurance opting to only insure it for a small period of time does come at a premium. You'll also find that there's a lot less choice available as not as many insurers are willing to cover vehicles for a short period of time. Temporary van insurance can be great if you need to borrow a friend's van for a house move, but it might be more cost effective to get them to add you to their policy rather than you taking out a policy yourself for temporary cover.
It's a always really important to shop around for the best deals. Use a comparison website and be sure to check with brokers, like Go Compare van insurance, or Compare The Market van insurance, who might be able to offer a better deal. If you can afford to pay upfront for your insurance you will also save money. There's typically an additional premium of around 10% for paying monthly using a direct debit. If you can afford to pay for your van insurance annually it will cost you less.
Apart from it being a legal requirement, you want to protect the things you own. Insurance will cover you in the event of theft - putting a risk to your livelihood - and cover you for injury. It's also really important to cover the risk of damaging someone else's property or worse still another person.
