FLEET managers believe they will bear the brunt of the European Parliament's controversial decision to make manufacturers pay the cost of recycling all their cars. With pressure on manufacturers to cut UK list prices, fleets fear the £300 million annual recycling bill car makers face from 2006 will be paid through list price increases of up to £200 - a view denied by the Society of Motor Manufacturers and Traders.

That in turn will force fleets to extend replacement cycles as they seek to offset the price rises resulting in lower annual car sales and putting in jeopardy the Government's transport environmental policy. The European Parliament decided to implement the End of Life Vehicles Directive, which from 2006 will force manufacturers to fund the total cost of recycling every car produced since the 19th century.

Peter Mann, transport operations manager for The Dixon Group, said: 'The scale of this is too large and manufacturers cannot cope with it. The recycling costs will be passed on to customers.' Ian Smith, fleet manager at Southwark Borough Council, said: 'If car prices go up, it will mean fleets keeping vehicles longer, but this will have a negative impact on the environment because older cars are the more inefficient.' David Percival, manager at Morris Material Handling's 130-vehicle fleet, said: 'Fleets will be put under pressure to keep their vehicles longer and get the value out of them.'