Equipment to upgrade older coaches’ emissions to Euro 6 levels has been available for some time, but certifying it has proved difficult. One operator explains its views on the current retrofit conundrum
One major dealership estimates that at the end of 2018, well over 1,000 coaches were on the second-hand market. Many are Euro 5 models, reflecting low levels of interest as buyers wait for the full implications of these vehicles’ possible upgrade to Euro 6 to wash through.
Although progress has been made with exhaust retrofit – and more should follow, if the Low Carbon Vehicle Partnership succeeds in forming a low emission coach working group – there is still a lot to do.
That gives food for thought for operators who have been forced into the market for fleet upgrades: Do they go for new, or do they hold their nerve and wait for retrofit to become viable?
The considerations for upgrading older coaches to Euro 6 are wide ranging, and they include consequences for both emissions and finances. The latter point is not just relevant to a dealer’s point of view. It also affects the operator.
Financial considerations
The glut of used coaches has had an impact on companies that have gone for new vehicles to satisfy pending air quality restrictions. “The price gap between a new coach and one part exchanged against it is getting wider,” says Richard Grey, Managing Director of Greys of Ely.
Richard has looked closely at the retrofit of Euro 5 coaches to Euro 6, to the extent of evaluating one such seed vehicle in service. It behaved as hoped for, but he can see the various arguments surrounding the idea.
The net spend required to do a deal for a new coach where a Euro 5 is traded in against it is indeed rising thanks to depressed Euro 5 values. But if the Euro 5 is kept for longer, it is almost impossible to predict the rate that it will continue to depreciate at.
Figures of around £20,000 have been suggested for the cost of retrofitting an older vehicle to satisfy Euro 6, although until the database-related issues that currently beset the approval and certification processes are ameliorated, there is no true clarity on that.
To that should be added a possible slight fuel consumption penalty and the implication of a minor increase in the maintenance requirement. If the engine is not in the rudest of health, it may also require work before it is worth fitting the aftertreatment equipment.
Where post Euro 6?
What is right for the operator is something that only they can decide, but Richard makes a salient point about what the future may hold for emissions levels in cities and other sensitive areas.
“We had the London LEZ, which was well serviced. Then the ULEZ came along. The timeframe for being able to buy new Euro 6 coaches, and when we would need them by, was a lot shorter, which should have made retrofit attractive.
“But that leads on to what may follow the ULEZ. We have no idea yet. It could be a requirement for Euro 7 or it could be zero emission capability. We don’t know, which further clouds any judgements that may be made on what the best solution is at Euro 6.”
For operators with older fleets and a limited requirement to visit zones that require Euro 6 compliance, retrofit will be the best solution. It will also prove more financially appealing to others where wholesale fleet renewal is not possible.
Leasing renaissance?
One potential impact of the uncertainty surrounding where emission limits go in the future could see an increase in the number of coaches that are supplied on leasing deals, Richard continues.
That would mark a major shift in purchasing strategy for most operators, and it would leave them with the task of disposing of their ‘legacy fleet’ in the first instance; potentially not an easy task if Euro 5 vehicles are involved. “We have seriously looked at leasing already,” he says.
Much of the uncertainty surrounding coach retrofit concerns the collation and monitoring of data by the enforcement authorities. More than one official database for compliance is in existence, and towards the end of 2018 the issue of ensuring that they ‘match’ had not been resolved. “I believe that if a common database had been approved, retrofit for coaches would now be going well,” Richard adds.
If it was, the value of Euro 5 coaches that are suitable for upgrade would undoubtedly increase. But there is another factor. Not all V5 documents for coaches have their Euro rating included, which adds to the confusion regardless of whether the coach is new or retrofitted.
In theory, if its emission level is not on the V5, a brand new Euro 6 could default to Euro 0. The correct rating can be applied to the document retrospectively in this and similar instances, but the onus is on the operator to ensure that it is.
“We have also had issues with re-registering coaches with cherished plates,” adds Richard. “It can cause a problem because DVLA has not fed through the relevant information from the old registration.
“We have received incorrectly-issued fines relating to London’s LEZ because of that. Management time is then wasted fighting them because the various databases are not synchronised.”
How to enforce?
Before the end of 2018, routeone was able to inspect a Euro 5 coach that has been retrofitted to Euro 6 standard prior to certification.
While installations differ between suppliers and vehicle OEMs, the coach in question shows that the additional equipment can be installed within the existing space envelope. The application is tidy and uncluttered and maintenance access has been considered.
What is less clear is how enforcement agencies will ensure that the retrofit kit remains in fully operable condition. A requirement for telematics data to be accessible has been floated, and the onboard unit in the coach seen by routeone is compatible with that.
“The Traffic Commissioners have the bit between their teeth in terms of AdBlue emulators and the effect that the discovery of one can have on an O-Licence. What would their view of the retrofit equipment being fitted but with an empty AdBlue tank be?” asks Richard. “The lack of clarity on enforcement and no continuity of thinking across the board is a problem. It makes it very difficult for operators to decide what to do.”
He reports that the fully-functioning aftermarket system had no effect on the driving characteristics of the seed coach, a comparison that was made easy thanks to the presence of an almost identical Euro 5 model in Greys’ fleet.
Solution needed
What is beyond dispute is that the bloated second-hand coach market is in desperate need of a wholesale retrofit capability to take older vehicles’ emissions to Euro 6.
When one of the primary issues with it – the database incompatibility – will be dealt with remains to be seen, but early 2019 has been suggested. The technical aspects are not a problem; several suppliers have kits that are ready to go.
When that happens, it will simplify life for many operators, whether they will be subject to air quality measures that mandate Euro 6, or whether they are among those that have Euro 5 coaches that they no longer need. The test cycle for coaches at Millbrook Proving Ground has been defined. Now all the industry needs is to be able to take advantage of it.
