Thursday, December 10, 2009

Smiths Electric Vehicles Win Van Award As Government Supports Eco Friendly Trucks

Capital Allowance Boost makes Going Green even more Attractive
Shipping News Feature

UK – Chancellor Darling’s Pre Budget report confirmed a capital tax allowance for electric vans meaning a company can write down the entire cost price in the first year of operation. This move should give a boost to an industry still in its infancy with low levels of production compared to the conventional freight vehicle market and whose products are therefore currently relatively expensive as an initial purchase.

Smiths Electric Vehicles, a leader in the field, announced today that their Edison van, based upon the Ford Transit, had won the “Eco Van of the Year” award from What Van. In a comment on the Chancellors move Kevin Harkin, Sales Director for Smith Electric Vehicles, said:

“Today’s announcement marks the successful conclusion to a long campaign by Smith Electric Vehicles to win capital allowances for electric vans. We have made representations at the very highest level of Government, so we are delighted that Government has listened and acted to support us.

“The UK already produces the best electric vans in the world; now we also have the opportunity as a nation to lead the way in buying and using these environmentally-friendly vehicles. This welcome tax incentive will make electric vans much more appealing to fleet operators across the UK, as it removes a cost barrier to purchasing.”

Up to now sales of the new vehicles have been slow in the UK, with only major companies willing to invest the high initial price in return for very low running costs and a very public boost to their green credentials.

Hopefully this latest move by the Exchequer will go some way to encouraging smaller operators to increase the sales rate of such vehicles leading to a more competitive product.