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Will the WLTP emissions regulation change cause you to force-register un-sold stock vehicles?Back

From September 2018, all new cars will need to have been type-approved to the new WLTP testing standards. When the new regulation takes effect, a number of manufacturers and dealers may have unsold stock of vehicles. This could be due to an unexpected drop in sales or incorrectly predicting the mix of demand.

The sale and registration of unsold non-WLTP vehicles in stock is usually handled by the ‘End of Series’ derogations. In the UK, the Vehicle Certification Agency (VCA) processes derogation applications from manufacturers and importers.

In the UK, manufacturers can apply for the derogation setting out justifiable technical or economic reasons for not being able to comply with the implementation deadlines of the new requirements. If there is a clear justification, the manufacturer will be granted permission to sell a limited quantity of end-of-series vehicles built prior to 1 June 2018, which must be registered within 12 months.

It is proposed that the maximum number of vehicles for which derogations can be granted will be the greater of:

  1. a) 10% of that manufacturer’s sales in 2017
  2. b) 2000 vehicles.

Vehicles built less than three months prior to a new regulation taking effect are NOT eligible for derogations. This is to encourage manufacturers to change their production lines at least three months prior to a new regulation taking effect.

So, could this negatively affect dealers?

  • If the brand you sell has too many old models in stock heading to September 1, 2018:
    • Your manufacturer may want you to force-register these pre-WLTP compliant cars.
    • Alternatively, they could obtain sufficient ‘end-of-series’ derogation to handle the volumes.
  • Will you be holding fully-paid non-compliant cars in stock and will they be covered by your manufacturer’s allowance of end-of-series derogation, thus being able to be sold/registered after September 2018?
  • Will your manufacturer ship you any ‘non-compliant’ cars built after 1 June 2018, as these would have to be registered prior to the date of the WLTP regulation introduction on 1 September 2018?

All brands will be handling this issue in their own way, so it’s up to the dealers to ask them questions about how it will affect them before they are forced to pre-reg volumes of stock in advance of the new WLTP emissions regulations.

 

Posted by Sue Robinson on 23/03/2018