Fleet News Driving Business Winter 2017

DRIVING

Issue 22 Winter 2017 £4.50

Helping you make better decisions

THE MINI RANGE. WHO’S IN? MINI Business Partnership

THE FIVE MODEL MINI RANGE. At MINI, we’re not just a one-car act, we’ve got a five-strong line-up.

Whatever your company’s needs, you’re sure to find a model that meets them with the MINI Business Partnership Programme.

The MINI 3-door Hatch is the compact city car, or you could go for the MINI 5-door Hatch which offers increased space and versatility.

The MINI Convertible works for both business and sunny Sundays, while the MINI Clubman with its unique split rear doors combines style with purpose. Finally, the MINI Countryman with optional ALL4 all-wheel drive is perfect for getting off the beaten track.

FROM CO2

49 g/km*

134.5 mpg* (combined)

BIK

9%

DRIVING THE BIGGEST SHOW IN FLEET We bring you all the best advice, news and cars from Fleet Management Live

Issue 22 Winter 2017 £4.50

Helping you make better decisions

SAFETY SPECIAL The latest ways to cut crashes – from clever car tech to creating the right driver training plan

LATEST MODELS BMW X3 Hyundai Kona Kia Stonic Volvo XC40

OUR CARS MUST BE COST-EFFECTIVE How experienced fleet manager Graham Short ensures Zip Water’s drivers have the right vehicle for their job, saving the business money

SUZUKI VITARA

MAKE AN IMPRESSION ON YOUR BUSINESS

THE SUV THAT LOOKS AS GOOD AS IT DRIVES ALLGRIP 4-wheel Drive technology**, smartphone link audio and navigationÜÜ are available whilst Bluetooth and DAB radio come as standard. Add a Euro NCAP 5-star safety rating and a high-performing 1.6 diesel or petrol engine, and youíve got a nice addition to your business.

FIND OUT MORE: 01908 336130 CARS.SUZUKI.CO.UK/BUSINESS EMAIL: BUSINESSCARS@SUZUKI.CO.UK

CO2

MPG

BIK

P11D

106g/km*

70.6

23%Ü

£15,284Ü

from

up to

*

from

from

5 REASONS WEíRE PERFECT FOR BUSINESS Dedicated in-house business team Over 150 Dealers nationwide Top-ranking reliability Award-winning range Lower lifetime running costs

Model shown: Vitara 1.4 Boosterjet S petrol manual available at £22,749 on the road. Vitara S range official fuel consumption figures in mpg (L/100km): Urban from 44.1 (6.4) to 44.8 (6.3), Extra Urban from 56.5 (5.0) to 56.5 (5.0), Combined from 51.3 (5.5) to 52.3 (5.4). Official CO2 emissions from 128g/km to 127g/km. Fuel consumption figures are based on an EU test for comparative purposes only and may not reflect real driving results. **ALLGRIP models only. ÜÜExcludes SZ4 model. *CO2 and MPG figures quoted are for Vitara 1.6 DDiS SZ-T diesel manual. ÜBIK and P11D figures quoted are based on Vitara 1.6 SZ4 petrol manual. BIK figure based on taxation rates for 2017/2018 tax year. P11D value is the sum of RRP (plus VAT) excluding First Registration Fee (FRF) and First Year VED/VEP. Information correct at the time of going to print. Terms and conditions apply, see: cars.suzuki.co.uk/business

Contents

ISSUE 22 Winter 2017

16

FRONT END

7 Early ULEZ ‘punishes’ firms

Zip Water

London mayor’s decision to bring in ULEZ charge 17 months early not well received by industry bodies

8 Penalty system ‘failing’ Every day 33,000 penalty notices are issued to drivers which has been criticised by the RAC Foundation

10 Fleet Management Live A five-page special review of the year’s biggest fleet show that saw 1,800 visit the NEC, Birmingham

BROADER VIEW

16 ‘Right car in the right application’ Zip Water fleet manager Graham Short is keen to adopt EVs, but they must be the right vehicles for the job

Headline sponsor

SAFETY INSIGHT

20 3 steps to a successful driver training strategy Implementing a driver training programme can help a company keep drivers safe and reduce costs

22 Artificial intelligence: the new safety revolution Manufacturers are developing technologies which can sense and react to changing driver moods

10

Standing room only as decision-makers seek the views of industry experts

24 Guide to ADAS – advanced driver assistance systems Once exclusive to executive cars, ADAS systems are becoming more common in vehicles of all sizes

CARS

26 SUV showstoppers A look at new model launches at the Frankfurt motor show

20

Safety Insight mydrivingbusiness.co.uk ❚ Winter 2017 ❚ 3

The

Lombard Vehicle Solutions product

Wattís your motivation to ëGo Electricí?

Whether it’s for short commuting runs or longer hauls, improved technology and bolstered charging infrastructure are making electric vehicles a choice you can’t ignore.

Whilst your company car drivers will benefit from reduced BIK (Benefit In Kind) tax associated with Ultra Low Emission Vehicles, you’ll also see reduced vehicle maintenance expenses bringing the overall cost of your fleet down. What’s more your business will see significantly improved CSR credentials from making the switch.

Whatever your motivation to ‘Go Electric’, if you’re looking for a single vehicle or an entire fleet, get in touch and we’ll help you develop a fleet policy that’s right for your business, from initial discussions right through to implementation and beyond.

www.lombardvehiclesolutions.co.uk enquiries@lombardvehiclesolutions.co.uk

Tel: 0117 908 6490

Lombard Vehicle Solutions is a contract hire and fleet management product provided by ALD Automotive Ltd, trading as Lombard Vehicle Solutions, Oakwood Drive, Emersons Green, Bristol BS16 7LB. ALD Automotive is registered in England No. 987418.

DRIVING

Helping you make better decisions

Contact us Driving Business, Media House, Lynch Wood, Peterborough PE2 6EA. Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Editor Sarah Tooze 01733 468901 sarah.tooze@bauermedia.co.uk News editor Gareth Roberts 01733 468314 gareth.roberts@bauermedia.co.uk Features editor Andrew Ryan 01733 468308 andrew.ryan@bauermedia.co.uk Staff writer Matt de Prez 01733 468277 matt.deprez@bauermedia.co.uk Contributor Ben Rooth Production Head of publishing Luke Neal 01733 468262 Senior designer Erika Small 01733 468312 Production editors David Buckley 01733 468310 Finbarr O’Reilly 01733 468267 Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468327 Kerry Unwin 01733 468578 Chelsie Tate 01733 468338 Advertising Commercial director Sarah Crown 01733 366466 Group advertisement manager Sheryl Graham 01733 366467 Account directors Sean Hamill 01733 366472 Lisa Turner 01733 366471 Stuart Wakeling 01733 366470 Account managers Liam Sancaster 01733 363219 Karl Houghton 01733 366309 Lucy Herbert 01733 363218 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Jane Hill 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan Subscriptions: subscription@mydrivingbusiness.co.uk Printing: PCP, Telford. © 2017 Bauer Media No part of this magazine may be reproduced without the permission of the publisher.

You can purchase words or pictures for your own publications.

Phone 01733 465982 or email syndication@bauermedia.co.uk.

Driving Business will not accept responsibility for unsolicited material.

Welcome Do you have a good grasp of the Euro emissions standard and fuel type of all your vehicles and when they are due to be replaced? If you don’t, it’s time to make finding out a priority.

Without this information you won’t be able to plan for emissions regulations, which may be introduced in your city or one of the cities your vehicles travel into.

London is taking a hard line by replacing its toxicity charge (T-charge) – which is already predicted to cost small businesses with older vehicles thousands of pounds a year – with the ultra-low emission zone in April 2019 (see page 7). This will affect not just pre-Euro 4 petrol and diesel cars and vans (as is the case with the T-charge) but pre-Euro 6 diesel cars and vans.

Other cities could follow London’s lead and introduce charges for these types of vehicles. Birmingham, Derby, Leeds, Nottingham and Southampton have all been told by the Government that they must introduce clean air zones (CAZs) by the end of 2019.

Cities could choose to ban conventional petrol and diesel vehicles entirely – Oxford City Council and Oxfordshire County Council want to introduce a ‘zero emission zone’ in the city centre.

Keeping abreast of the plans in the location(s) you operate in is crucial so you can take steps to comply. If you think you won’t be able to comply, seek assistance from your leasing provider or from industry bodies such as ACFO. We’ll be bringing you advice in a new format next year, replacing the quarterly editions of Driving Business with an annual guide to fleet management, out in April. It will inform you about forthcoming tax and legislation as well as offer advice on running a cheaper, cleaner, safer vehicle fleet.

Look out for further details at mydrivingbusiness.co.uk

Sarah Tooze Editor, Driving Business

Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www.ipso.co.uk) and endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to contact us about editorial complaints and IPSO’s contact details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.

mydrivingbusiness.co.uk ❚ Winter 2017 ❚ 5

We’ll keep your fleet working for you From 24-hour breakdown cover to accident assistance, mobile tyre fitting to telematics that help optimise vehicle performance, we’ll keep your fleet on the road.

Talk to us today about Business Breakdown Cover Call 0800 294 2994 Or visit theAA.com/business

■ FRONT END

w w w.mydrivingbusiness.co.uk mydrivingbusiness.co.uk

Businesses ‘punished’ with early introduction of London ultra-low emission zone, says BVRLA The British Vehicle Rental and Leasing Association (BVRLA) is disappointed that commercial vehicle operators have not been given enough time to prepare for the early introduction of the central London ultra-low emission zone (ULEZ) on April 8, 2019.

Last month, London mayor Sadiq Khan introduced the new toxicity charge (T-charge) in central London to help deter the use of older, more polluting vehicles and encourage walking, cycling, or using public transport in the build-up to the ULEZ. From April 2019, the ULEZ will replace the T-charge and operate in the same area, alongside the congestion charge but (unlike the T-charge and congestion charge, which are only in place on weekdays) it will operate around the clock.

There will be two ULEZ charge levels: £12.50 a day for cars, vans and motorbikes and £100 a day for lorries, buses and coaches. These will be in addition to the congestion charge so the more polluting cars and vans will pay £24 per day and lorries will pay £111.50 during congestion charge hours. All revenue raised will be used by Transport for London (TfL) to help maintain a greener transport fleet and reduce pollution across the transport network.

ULEZ will affect thousands more vehicles, up to 60,000 every day, compared to the estimated 6,500 a day affected by the T-charge. Diesel vehicles that do not meet the Euro 6 standard and most petrol vehicles that do not meet the Euro 4 standard will have to take action or pay.

In its consultation response and meetings with TfL, the BVRLA had called for special consideration to be given to commercial vehicle operators, particularly small-to-medium enterprises (SMEs).

Commenting on the mayor’s announcement, BVRLA chief executive Gerry Keaney said: “The ULEZ will now come into effect 17 months earlier than originally planned and many commercial fleet operators will face a big financial challenge

in trying to upgrade vehicles ahead of schedule.

“Many of these operators will be small- and medium-sized businesses that rely on buying second-hand vehicles from larger fleets and can’t afford to go and buy a whole new fleet at short notice.”

Cities across the UK are set to follow in London’s footsteps by introducing their own clean air zones (CAZs) or other air quality measures. The BVRLA has called on the Government to ensure they follow a national framework ensuring consistent standards, signage and enforcement.

“Diesel vehicles play an essential role in transporting goods and people around the country, but the emissions they produce on low-speed urban roads means they have no long-term future in our cities,” said Keaney.

“We need a carefully blended set of incentives and restrictions that removes the oldest, most polluting diesel vehicles without crippling our economy or punishing people for decisions they have already made.

“The vehicle rental and leasing industry has a significant stake in this transition and we look forward to working with local and national government to deliver a workable solution.”

Stuart Thomas, head of fleet services and SME at The AA, believes SMEs may not be getting the support they need from the automotive industry to switch to alternative fuels.

They may not have enough information to make strategic decisions and some SMEs are worried that their small fleet size means manufacturers don’t always treat them as a priority.

Thomas said: “Fleets are the backbone of British business, and need more guidance to help them to make the most of the upcoming EV (electric vehicle) revolution. We urge the automotive industry to provide the support businesses require to help them to anticipate upcoming legislation and reduce costs.”

Two-thirds of SMEs have no plans in place for Brexit Almost two-thirds (64%) of small-tomedium enterprises (SMEs) have not made specific plans to prepare their business for Brexit, according to a new report by CitySprint.

Of those that have taken action since Article 50 was triggered in March, about a third (32%) have upped business development activity, while more than a quarter have decreased their fixed and/or variable costs (27%) and a similar number have increased investment in capital goods or technology (25%). One in five (20%) say they have upped headcount in response.

However, 43% of the 1,000 decision-makers and owners of UK SME surveyed, lack confidence in the Government’s ability to protect their business from the impact of Brexit.

When asked what impact leaving the EU will have on their business, around one in five (19%) expect profit margins to decrease and one in six (17%) expect revenue to drop.

Despite concern about the future, 87% report they are in the same or better shape financially compared to 12 months ago.

Patrick Gallagher, group CEO at CitySprint, commented on the findings: “Whatever difficulties the future holds, it’s ‘business as unusual’ for the UK’s SMEs. They have more than weathered the economic ups and downs of recent years and, by working with each other, they will no doubt continue to adapt to the times.

Smaller enterprises are both highly agile and deft at reinventing themselves and the way they work to suit the times.”

mydrivingbusiness.co.uk ❚ Winter 2017 ❚ 7

■ FRONT END

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Company car drivers may face back tax demand over new OpRA regulations

Authorities issue drivers with 33,000 penalty notices every day Up to 12 million motorists receive a penalty notice each year – the equivalent of one every 2.5 seconds, new research suggests.

It means almost a third (30%) of Britain’s 40 million drivers now receive a penalty notice annually, says the RAC Foundation.

The total of 12 million does not include the annual figure of 1.2 million drivers now undertaking a speed awareness course instead of receiving a penalty and points on their licences.

A further 200,000 drivers a year attend other courses having committed other types of offence.

Nor do the figures include the five million parking penalties issued to drivers on private land each year.

The penalty notices included in the RAC Foundation research are one of two types: a fixed penalty notice (FPN) – a criminal penalty issued for contravention of motoring law; and a penalty charge notice (PCN) – a civil penalty often issued by councils for contravention of things like parking regulations.

The 12 million total includes: eight million local authority parking penalties; 2.5 million local authority bus lane and box junction penalties; 500,000 late licensing and insurance penalties, and one million speeding and red-light penalties.

Cameras are routinely used not only to catch

speeding motorists but also those who enter bus lanes or make illegal turns at junctions.

Steve Gooding, director of the RAC Foundation, said: “Millions of motorists are being caught by camera, often for arguably minor misdemeanours, while more serious and harmful behaviour goes undetected.

“When it comes to civil enforcement of bus lane and parking infringements authorities should constantly be asking themselves whether the number of notices issued suggest a different method is needed: some bus lanes and box junctions have become renowned as money spinners. If thousands of drivers a day are getting tickets this is a clear indication of a system that is failing.”

Responding to the RAC Foundation’s report on penalty notices, Cllr Martin Tett, the Local Government Association’s transport spokesman, said: “Parking controls are essential to help keep the roads clear, pedestrians, motorists and cyclists safe and to make sure people can park near their homes and local shops.

Furthermore, Tett maintained that income raised through on-street parking charges and fines is spent on “essential transport projects”.

“A clear appeals process is in place for anyone who feels they have been fined unfairly, including the ability to ask for an independent review,” he added.

Škoda launches fleet management package for small businesses Škoda and Volkswagen Financial Services Fleet have launched SME Direct – a fleet package aimed at small businesses running fewer than 20 cars.

The package, which is available from select Škoda retailers, includes:  Free access to MyFleetPro, a web portal for businesses to manage their vehicles;  A 24-hour, UK-based telephone service to

8 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

help drivers with accidents, breakdowns, service bookings, glass and tyre repair;  A ‘no-quibble’ tyre replacement policy;  Option of ‘pooling’ mileage to avoid charges;  £100 cover for end-of-contract damage costs;  A dedicated account manager.

In addition, every vehicle bought before December 31 will include a free dashcam, to help reduce insurance premiums.

Company car drivers have been warned that they could be subjected to demands for back tax from HMRC following this year’s introduction of complex Optional Remuneration Arrangements (OpRA) rules.

The Fleet Industry Advisory Group’s (FIAG) autumn workshop, ‘Fleet Policy –Challenges and Influences’ heard Activa Contracts’ sales and marketing director Lisa Temperton highlight that understanding and correctly interpreting OpRA regulations was one of the “major challenges” currently facing businesses.

Essentially the new rules were introduced by Government to mean employees opting for a salary sacrifice arrangement or taking a company car in lieu of a cash alternative paid tax on either the company car benefit value or the cash allowance given up, whichever is the highest.

However, car arrangements in place before April 6, 2017, are protected until April 2021 and ultra-low emission vehicles (ULEVs) – currently those with CO2 emissions of 75g/km or less – are exempt from the regulation.

OpRA rules were rapidly introduced on April 6, following confirmation in last year’s autumn statement and subsequent Finance Bill, but the impact of the changes are still coming to light.

For example, it was recently revealed that the new OpRA rules should only take into account the amount of salary sacrificed for the car itself thereby excluding vehicle maintenance, insurance, new tyres and roadside breakdown and recovery for example.

That means that the finance rental for a car and all other costs should be separated out making so-called “proportionality” now an issue for employers in respect of OpRA. Temperton told delegates at the workshop that when P46 (Car) forms are sent to HMRC by employers at the end of the 2017/18 tax year they could be incorrect.

“Some employees will have underpaid tax and that will cause pain as HMRC looks to recoup the tax they believe due,” she said.

Temperton went on to highlight that underpayment was likely to be caused because company payroll departments were not yet set up to handle the impact of OpRA rules on tax.

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■ F L E E T M A N AG E M E N T L I V E

Headline sponsor

BEST PRACTICE, NEW CARS AND 100+ EXHIBITORS ATTRACT 1,800 TO SHOW Standing room only as decision-makers seek the views of industry experts

By Sarah Tooze, Gareth Roberts, Andrew Ryan and Matt de Prez he biggest show in fleet – Fleet Management Live 2017 – attracted 50% more visitors to the NEC, Birmingham compared with 2016.

Initial figures suggest that 1,800 fleet industry professionals attended the annual event on October 3-4, with every area of the industry covered under one roof.

More than 100 exhibitors were on hand to provide advice and information about the changing face of fleet management.

This year’s show, supported by headline sponsor Mobileye, was expanded to incorporate the Commercial Fleet Van and Truck Show, reflecting the wishes of fleets, many of whom operate both cars and commercial vehicles.

T

Supported by

10 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

It also ensured visitors extracted the maximum value from their day by meeting a range of suppliers covering all their needs.

Visitors had access to leading industry experts in nine best practice seminars which covered a range of hot topics, from funding and compliance to telematics and risk management.

They were complemented by six sessions held in the Discover Fleet Theatre, which recognised the wide range of roles involved in organising and supporting modern fleets.

Content was tailored for professionals in finance, procurement and HR, as well as SME owners/managing directors, with each area covered by an expert speaker providing insight into the key mobility-related challenges and opportunities they faced.

Six sessions ran over the two days and, much like the best practice sessions, it was standing

room only as fleet decision-makers were eager to hear from industry experts.

Elsewhere, a new Intelligent Technology Zone brought the future into the present as fleets reviewed and tested hi-tech equipment that could revolutionise the way people work and travel.

Bluelight fleets were also catered for with an all-new Bluelight Fleet Zone, developed in association with the National Association of Police Fleet Managers.

And nine of the FN50 top 10 leasing companies – and 18 funders overall – were kept busy offering advice on a range of topics, including the new rules on cash allowances and salary sacrifice.

During downtime fleets could network and enjoy the hospitality of the VIP lounge, sponsored by BT Fleet Solutions.

ICFM BIG DATA FLEET MANAGERS MUST EMBRACE BIG DATA IF ROLE IS TO FLOURISH Technology will help fleets drive efficiencies across their businesses Fleet managers will “cease to exist” unless they embrace ‘big data’ to drive efficiencies in their business and become more strategic thinkers.

That’s the view of Paul Hollick, ICFM chairman and managing director of TMC, who believes managing all employee journeys via a single access, online platform will enable businesses to set a mobility budget for individuals.

Business could already make ‘big data’ impactful by, for example, overlapping in-vehicle telematics-derived data with fuel purchasing data, he said.

However, Hollick told visitors to ICFM’s ‘Big Data’ Masterclass that by working with a wide range of suppliers, including vehicle manufacturers, leasing and rental companies, and travel management suppliers, the volume of mobility management data would accelerate.

He outlined a vision in which all journey costs – private and public transport-related as well as related fines, road tolls, car parking and taxi fares – would be automatically collated on a per employee basis with an automatic ‘payroll feed’ to deduct costs from an employee’s mobility budget.

That strategy, said Hollick, would both “manage and steer employee behaviour” by influencing their salary and reducing the administration burden of “chasing” drivers to complete documents relating to, for example, driving licence validation checks.

“If employees don’t comply then they won’t get paid,” he said. “Setting a mobility budget for each employee will influence the mode of transport they take. Employees will be able to access travel options via their own portal, make bookings and keep a track of their budget. The journey to mobility on demand is occurring very quickly.”

“SETTING A MOBILITY BUDGET FOR EACH EMPLOYEE WILL INFLUENCE THE MODE OF TRANSPORT THEY TAKE” PAUL HOLLICK, ICFM

mydrivingbusiness.co.uk ❚ Winter 2017 ❚ 11

■ F L E E T M A N AG E M E N T L I V E

DISCOVER FLEET: ADVICE FOR HR, FINANCE AND SMEs SPONSORED BY ALL FLEET SERVICES FINANCE AND PROCUREMENT

HR: BALANCING RISK AND REWARD

SME: FLEET ESSENTIALS

 Alastair Kendrick, employment tax partner, Harwood Hutton Specialist Tax Services  David Rawlings, fleet consultant, BCF Wessex Consultants

 Brian Cooper, senior manager, People Advisory Services, Ernst & Young  Caroline Sandall, vice chair, ACFO

 Paul Hollick, chairman, ICFM  Alan Asbury, director, CLS Energy

Alastair Kendrick outlined some of the tax implications that arise when a business has to decide how it wants to lease its vehicles. Each method has pros and cons, he said.

“Traditionally when you look at a funding method, you are looking at on- or off-balance sheet, but with the lease accounting changes coming in 2019 that will no longer be an issue.

“You look at your tax and VAT position; if you can’t recover much VAT then contract hire may not be very appealing to you. You then look at residual risk. Are you comfortable with it or do you want to offload it?”

Kendrick then warned fleets about the risk associated with PCH and PCP. David Rawlings reflected on his 30 years in the industry pushing the company car as a benefit.

“We have reached a point where there is some real change,” he said.

“Do we want to start thinking about our fleet policy for the coming year? Technology is moving fast. We aren’t going to get a period of stability. What we have to do is ask why we want a fleet, what we intended to do with it and where we want to be in the future.”

Fleet decision-makers should not underestimate the effect the forthcoming General Data Protection Regulation (GDPR) rules will have on the way they work.

The GDPR regulations come into force on May 25 next year aiming to protect EU citizens from privacy and data breaches in an increasingly data-driven world. Any organisation not complying faces a significant fine.

“GDPR has perhaps been a little underplayed in terms of its impact on fleet,” said Caroline Sandall. “A lot of news items have focused on telematics data when actually what is really critical is making sure you can prove that you maintain a robust audit trail of how drivers understand what is happening to their data.

“They need to understand what their obligations are, so having an ‘I have read and understood policy’ tick box will not stand up to scrutiny, in my opinion.”

Sandall added: “If you are a smaller organisation and somebody comes knocking on your door expecting you to know the answers, you can reach out to anybody in the industry, you can reach out to ACFO, but the magnitude of this is not to be underestimated.”

SMEs could save thousands of pounds on their fleet running costs by following the steps outlined by Paul Hollick at the event.

He advised businesses to start with the ‘knowledge phase’, looking at why vehicles are needed, how much is being spent on them, what the business wants to achieve culturally and then putting controls in place.

The ‘sketch phase’ involves splitting the business’s vehicles into different segments: job-need, perk and occasional users (grey fleet), and allocating responsibility for each.

Next is the ‘strategy phase’, looking at areas such as vehicle funding, fuel and risk management, and finding the right suppliers.

Finally, the ‘deploy phase’ is when timelines are set and the strategies are implemented.

He advised SMEs to “take things slowly” and not to try to do everything “in year one”. Businesses should also think about getting help and support from industry bodies like the ICFM and ACFO, and from their supply chain.

Alan Asbury outlined how his consultancy had worked with businesses to help them save money through areas such as reducing the use of grey fleet and implementing alternative fuel vehicles.

David Rawlings (left) and Alastair Kendrick

Brian Cooper and Caroline Sandall

Paul Hollick (left) and Alan Asbury

12 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

BEST PRACTICE SESSIONS VAN AND TRUCK FUNDING  Richard Tilden, head of commercial vehicles, Lex Autolease Funding methods for commercial vehicles predominantly focus on contract hire versus purchase, but businesses need to consider all available options before agreeing on a funding strategy to ensure their fleet is cost-effective in the long-term.

Richard Tilden reviewed the full range of funding choices available to fleets and outlined how upcoming lease accounting changes could impact their choice. “The industry has been talking about these changes for years. They primarily affect those customers who are property driven,” he said. “But vehicles will have an impact.

Businesses need to have a conversation with their bank to make sure they know how their future borrowing could be affected.”

Moving to a flexible rental model is one possible way to keep vehicles off balance sheet, he suggested.

RENTAL  John Collins, sales director, Enterprise Flex-E-Rent Delegates were given insight into the changes and challenges Enterprise sees in the transport sector and some of the solutions it is putting in place to try to combat them.

“The biggest trend is urbanisation; more people live in urban areas than ever before,” said John Collins.

“The bottom line is it has placed an increased strain on all mobility.

People’s transport needs are evolving and technology is giving greater access to new options,” explained Collins. “Transport for London says its biggest challenge is white vans making Amazon deliveries to offices for personal use. If you look at the mobility landscape it is cluttered, but look more closely and they are just variations of three basic services. None address the needs of CV (commercial vehicle) users.”

TELEMATICS  Paul Lomas, head of sales – new business, ALD Automotive The mere presence of telematics in a company vehicle can help a fleet manager reduce fuel consumption and CO2 emissions, said Paul Lomas.

Last year, ALD ran a trial among employees, where 74 drivers drove Mercedes-Benz E-Class hybrids fitted with its telematics.

After the trial, the vehicles had covered a total of 400,000 miles.

Average CO2 figures fell 18% from 120g/km to 98g/km. Fuel economy also improved 10%.

“This is objective data from the users themselves and it proves the technology works,” said Lomas. “Something that was surprising for us was that there was no competition set and no challenge to improve anything in any way, but almost everyone improved their driving – their acceleration, their braking their speed awareness, etc.”

FLEET COMPLIANCE  Richard Evans, head of business development, Jaama  Mark Woodworth, head of transport and logistics, Speedy Services Fleets are under increasing pressure to meet compliance targets which have led to them dealing with more data from more sources.

This session reviewed the legislation affecting fleet operators and the requirements facing businesses to ensure compliance.

“There are so many sources of data for fleet managers and having that data can be a nightmare,” said Richard Evans.

Having worked with Jaama, Speedy Services was able to ensure compliance across all its sites where vehicles are operated by branch managers with little fleet expertise. Mark Woodworth explained: “Every depot has responsibility for vehicles but we want our managers to deal with their depot, not be worrying about transport. Jamma has enabled us to give the depot manager a lot of information.”

RISK MANAGEMENT  David Richards, head of marketing, DriveTech, part of The AA Fleet operators can win investment and backing from leadership for a driver training programme by showing that it will improve driver behaviour and reduce costs.

Richards said he often speaks to fleets who recognise the importance of a robust training regime, but face the challenge of winning the necessary buy-in from senior company figures.

He said: “Generally speaking, the leaders are interested in money, they are also interested in duty of care and if you can show that you can reduce collisions and get a good return on investment, then that helps you have a different type of conversation.”

DriveTech research shows 47% of fleet costs can be influenced by driver behaviour: insurance, fuel and service, maintenance and repair.

THE AUTONOMOUS VEHICLE REVOLUTION  Gil Ayalon, regional director, Mobileye Teaching a car to ‘think like a human’ will be the greatest challenge that has to be overcome in order to have a truly autonomous vehicle, according to Gil Ayalon.

“If you remember when you learnt to drive, the first two or three lessons were how to operate the car, the rest of the 25-30 lessons were how to negotiate or merge into traffic,” he said. “We are currently running more than six billion scenarios of negotiation. You have to negotiate the car in front, the car behind, the car to the right. The model is very complex.”

An autonomous vehicle will need to sense the area around it and will need special 3D maps that will detect and collect “only the relevant elements” for driving, and this will need to update every second. mydrivingbusiness.co.uk ❚ Winter 2017 ❚ 13

n F L E E T M A N AG E M E N T L I V E CONNECTED VEHICLES  Duncan Chumley, managing director, Free2Move Lease Fleet operators need to consider what value they can get from connected vehicles now and in the future, said Duncan Chumley.

He predicted that by 2020, 90% of cars will be connected and by 2025 “all fleets will be driven by data”.

“Whether you’re a fleet manager, finance director or a HR manager it’s going to impact how you manage the purchasing of vehicles, which vehicles you choose and how you run your fleet,” he said. “By using it correctly you’ll be able to make better decisions, you’ll improve performance and deliver more.”

He said data could help develop ‘smarter’ cities and allow fleet managers to create car sharing schemes and improve car use.

“A fleet of cars is an expensive asset,” he said. “If you had a hotel with 500 rooms you would want to ensure that every one of them was full every night. If you’ve got 500 cars and they’re not being used, your business has got an asset that isn’t being utilised.”

He added: “Will people be willing to share their company cars in the future? I think if there is a financial benefit and you can find a technology that is easy to use, then why not?”

TOWARDS CLEANER CITIES  Toby Poston, director of communications and external relations, British Vehicle Rental and Leasing Association (BVRLA)  Ian Featherstone, fleet advice manager, Energy Saving Trust Ian Featherstone outlined a four-point action plan for fleets designed to help them in their quest to justify the adoption of ultralow emission vehicles (ULEVs).

1: Identify the vehicle opportunity. “Make sure you understand where and how far your vehicles drive a day,” said Featherstone.

“You should monitor vehicle mileage or install telematics in commercial vehicles so when you have that understanding you can match vehicles to those tasks.”

2: Understand costs. “You need to understand the wholelife cost analysis of ULEVs versus the vehicles that you are currently running, factoring in grants and also the taxation benefits on vehicle purchase, lease and the drivers,” he said.

3: Operational constraints. “Understand and learn about the charging times and duty cycles of the ULEVs, as well as look the optimisation of vehicle routes,” said Featherstone.

4: Driver acceptance. “Make sure the drivers understand the vehicles,” he added.

“It’s always easier if you start with the most enthusiastic ones in your organisation.”

CAR FUNDING – COST-EFFECTIVE DECISION-MAKING  Rachel Lane, fleet consultant, Zenith  Claire Evans, head of fleet consultancy, Zenith Companies are increasingly looking to use a mix of funding methods for fleets to meet their requirements, said Rachel Lane.

“This is very much helped by technological advances from leasing companies where they are able to provide the financial information required to make those decisions in real-time, so as web portals develop you can, car-by-car, driver-by-driver, decide which funding method suits your employees,” she said.

Lane added: “When looking at funding it is important to manage what works for you as a business while balancing that with the types of population you are serving, as well as the types of cars you funding. What I mean by that is are you servicing a perk population or a job-need population, or are you looking at funding car, LCV or HGV? What would work for a perk driver probably would be slightly different for it to work for a job-need driver of a LCV.” 14 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

MANUFACTURER ROUND-UP UP CLOSE AND PERSONAL WITH THE LATEST MODEL OFFERINGS Several manufacturers focus on SUVs or alternative-power vehicles at FML There were more than 40 cars on display – from 12 manufacturers – for fleet decision-makers to get up close to at this year’s Fleet Management Live.

A number of models made their public debut, including the hotlyanticipated Jaguar E-Pace compact SUV and the all-new Seat Arona compact SUV. Vauxhall displayed its important new crossover, the Grandland X, which will be available in showrooms next January. It will cost from £22,485 and offers low emissions from just 104g/ km. Joining the SUV was the new Insignia Grand Sport in desirable SRI VX-Line trim and the British-built Vivaro panel van.

BMW chose to focus on its plug-in and electric range, giving visitors a chance to learn about the 330e and 530e iPerformance saloons, as well as the all-electric i3 and all-new Mini Cooper S E Countryman. The BMW i8 made an appearance, too.

Toyota & Lexus also focused on alternative power. It had a large range of hybrid models on display including the Rav-4, Prius, C-HR and Lexus RX. The hydrogenpowered Mirai was also on show alongside the brand’s new flagship Lexus LC500h hybrid coupé.

At the Jaguar Land Rover stand was the new Range Rover Velar, a

mid-size SUV, built to sit between the Sport and Evoque. A new version of the XF Sportbrake also made an appearance ahead of its showroom debut, but the E-Pace took centre stage. It is available to order now, priced from £28,500.

Seat had a number of new models to showcase. The popular Ateca SUV has gained a sportier FR variant, which still uses the same frugal engines, and the facelifted Leon was shown in range-topping Cupra spec. Also on display was the new Ibiza and the Arona (ahead of its launch).

Honda used the event to show the breadth of its product range and introduce visitors to its new fleet sales operations manager Marc Samuel. There were motorcycles, scooters and off-road buggies, along with generators. The new Civic made an appearance as well, including the flagship Type R. Nissan shared a stand with its sister brand Infiniti. The recently facelifted Qashqai sat alongside the Infiniti QX30, both of which are built in the UK. Nissan also displayed the new Micra while Infiniti brought a Q50 hybrid.

Volvo gave fleets a look at its new XC60 SUV. It also had core models such as the V60 Business Edition and V40 R-Design, plus the S90 saloon in D4 Momentum trim.

SAVE THE DATE 12-13 JUNE 2018

MILLBROOK PROVING GROUND

Make informed decisions about your vehicle choices by driving all the latest models in a unique and professional environment around Millbrook's dedicated tracks.

www.companycarinaction.co.uk | @_FleetNews For visitor enquiries and manufacturer/fleet supplier exhibitor and sponsorship opportunities, please email sandra.evitt@bauermedia.co.uk

■ BROADER VIE W

ZIP WATER

‘Right car in the right application’ Graham Short is using his 19 years’ experience in fleet to transform Zip Water’s car and van policy, saving money as the fleet expands.

Sarah Tooze reports

T

he first thing Graham Short did when he was appointed fleet manager at Zip Water was to cancel an order for two Mitsubishi Outlander PHEVs. There was nothing wrong with the vehicles – in fact Zip Water has three others on its fleet – but Short identified that “they were not going to be used in the right way”.

The drivers had chosen them simply for the benefit-in-kind (BIK) tax savings and had not considered the fact they would be driving 30,000 miles a year, mostly on motorways, so the vehicles would mainly be running on petrol, negating the benefit of having a plug-in hybrid vehicle and potentially costing the business a fortune in fuel.

So how did the drivers take the news?

“Clearly they were disappointed they were not going to have the tax break they thought they were going to have but I explained my reasons for doing it and I was supported from the top,” Short says.

In both instances the drivers went into economical, low CO2 diesel cars instead of the Outlander PHEVs. However, where appropriate, Short does encourage the use of electric and hybrid vehicles.

Earlier this year he persuaded a company car driver who travels into London most days to swap his diesel Audi A4 for a Volkswagen Golf GTE, which means the company no longer has to pay the congestion charge.

“Ideally he would use public transport, but he needs to carry sales brochures and samples in it every day,” Short says. “It’s the right car in the right application.”

Zip Water has four plug-in cars on its fleet of 53 cars and 69 vans, earning it Go Ultra Low company status (the Government-led campaign which recognises UK businesses that are embracing electric vehicles).

It has fitted home charging units to support the use of electric vehicles and Short is now considering installing a charging point at the company’s Dereham office in Norfolk, where he is based, and adding an EV pool car to the fleet.

Leasing broker Fleetdrive Electric will also assist Short with a driver survey to identify individual mileages and whether a driver’s job need would suit an electric vehicle.

However, introducing electric vans is not currently feasible as public charging infrastructure is not adequate in Short’s opinion.

“We’ve trialled the Nissan e-NV200 in four different applications because we’re heavily involved in the London area – about a third of our fleet goes into the capital on a 16 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

daily basis – but we’ve struggled with infrastructure,” Short says. “The first electric van we trialled we ended up letting down some of our customers because the driver had got to the fourth charging point before he found one that was working.”

Short acknowledges this was about a year ago and the infrastructure may be better now but he doesn’t yet have the confidence to add an electric van to the fleet.

“The challenge we have is all of our engineers are based from home and if we could install a charging point in an engineer’s home then we would. But they tend to live in tower blocks so it’s not feasible to do that,” he says.

It is also not possible to install a charging point at the company’s Farringdon office in London as there are no parking facilities.

With the current congestion charge, the introduction of the £10 emissions surcharge (T-charge) in central London last month and the forthcoming ultra-low emission zone (ULEZ), Short understands the financial, as well as the environmental, need to run low-emitting vehicles.

About 30% of Zip Water’s van fleet is already Euro 6.

“We’re doing our best to operate the cleanest vans we can,” he says.

“So many fleets like mine would like to do so much more but we have to try and get manufacturers and councils to meet us halfway and support us with some infrastructure.”

As an alternative, Zip Water encourages public transport use, where possible.

“We’ve currently got an engineer on foot because it’s more practical to do that. So we can have parts delivered to a site and the engineer will travel there using public transport,” Short says.

Although the use of electric vans is an on-going challenge, there are many other changes Short has successfully made since joining Zip Water in December 2015.

Previously the fleet was run by the technical training manager but due to the business and fleet growing, Zip Water decided to recruit an experienced fleet manager.

Short saw it as an opportunity to be involved with a fleet that “almost had a blank canvas”.

He inherited a “very mixed fleet” as the company car policy had no restrictions on manufacturer or CO2 emissions, despite the majority of cars being job-need rather than perk as they are used by business development managers.

“We’ve streamlined it and we just have a choice of Audi, Volkswagen, BMW or Volvo,” Short says.

He also introduced a CO2 cap of 120g/km, which he is in the process of reviewing with a view to lowering it.

The van fleet is all Volkswagen, mirroring the policy of Zip Water’s parent company in Australia.

“We’ve got a very good relationship with VW,” Short

mydrivingbusiness.co.uk

“

I don’t think we would want to invest a great deal of money in a specific vehicle not knowing what it is going to be worth in two or three years Graham Short, Zip Water

”

Graham Short is waiting for a better charging infrastructure to allow him to put more EVs on fleet

■ FACTFILE Company Zip Water Fleet manager Graham Short Fleet size 53 cars, 69 vans Funding method contract hire Replacement cycle cars – three years/90,000 miles; vans – four years/120,000 miles Brands on fleet cars – Audi, BMW, Volkswagen, and Volvo; vans – Volkswagen

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says. “I look upon our supplying dealer, the Cordwallis Group, as a partner rather than a supplier because they work very well with us to move vehicles when we have new vans coming in and old vans going out.

“They also have mobile workshops so, because we have a large number of vans in and around the London area, which is where they are based, they can support us with out-of-hours servicing and running repairs which reduces our downtime.

“The general lead time for booking in any sort of work in a workshop can be a week to two weeks, whereas the mobile workshops can quite often tend to us the next day if we have a running repair, a broken mirror or something that needs to be done. We even get the workshop mobile mechanics to meet our drivers on a site if it’s appropriate.”

The vans are all leased on four-year/120,000-mile contracts, while cars are leased for three years/90,000 miles.

“The main reason we lease is because it’s more costeffective,” Short says. “We’ve gone through a process of comparing outright purchase with contract hire and there is a time value of money involved which swings us towards contract hire.

“But also it’s very uncertain times so I don’t think we would want to invest a great deal of money in a specific vehicle not knowing what it was going to be worth in two or three years, whether that be a diesel engine vehicle or an electric one.

“Leasing doesn’t give us that risk and it gives us flexibility so we can tailor our contracts. If we want to only lease the vehicle for a year or two we have the flexibility to do that.”

LeasePlan is Zip Water’s main funding provider but Short recently began using Marshall Leasing in addition due to its flexibility and to benchmark contract hire quotes.

Currently, just under a fifth of the fleet (23 vehicles) is leased from Marshall.

Short acknowledges that for administrative purposes it would be easier to manage one provider but the process is made simpler by using fleet management software from FleetCheck – something which Short introduced not long after joining Zip Water as the fleet was previously run on a spreadsheet.

Fleet management software is also essential because Short’s time is split between fleet, health and safety and facilities.

He advises any fleet manager juggling two or three roles to take advantage of any help that is on offer from suppliers, too.

“A lot of the admin burden can be taken up by a leasing provider, for example,” he says.

Choosing the right supplier is not simply about price for Short. Last year he changed from Keyfuels to Shell because Shell offered the best overall package.

Winter 2017 ❚ 17

■ BROADER VIE W

ZIP WATER

▲

Graham Short ‘almost had a blank canvas’ when he joined Zip Water in December 2015

“It works really well for us because the locations are good, the pricing is consistent, the reports are very good, security is good and it integrates with our fleet management software,” he says.

Zip Water also allows drivers to use the fuel cards at the Shell station car washes.

“We do try to emphasise that they need to keep their vehicles clean, particularly the vans, because they are an advert for us,” Short says. “Your vans are either your best or your worst advert.”

All of Zip Water’s vans are now speed limited to 70mph and the entire fleet uses TomTom telematics, with car drivers making use of the app to submit mileage claims.

Drivers previously had ‘free’ private fuel but Short was able to demonstrate that in a lot of cases they were better off without it.

“Once you communicate it in the right way and explain that they are probably being taxed £2,000 for £1,000worth of fuel, for example, it’s quite easy to get them to buy into that,” he says.

Telematics had just been installed when Short joined Zip but the system wasn’t being fully utilised.

“I’m using it to give drivers feedback on their driving performance,” he says.

“Each driver gets a report at the start of every month for his or her driving performance for the previous month and as part of the employee’s performance review, and our emphasis on health and safety, driving performance becomes part of an employee’s overall performance.

“There is a financial objective attached to it so it’s in the driver’s interest to improve on the previous month, it’s up to them to self-manage and pretty much, without exception, they do. If you treat them like adults and give them a responsibility they’ll respond in the right way.”

18 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

“

“We have seen the driving events recorded by the telematics system go in the right direction” Graham Short, Zip Water

”

Short has also raised awareness of the ‘true’ cost of an accident through a joint presentation with his insurer at the company’s service engineer conference.

“Everyone has bought into it and understands and we’ve seen our at-fault accidents more than halve (from 54 in 2014/15 to 22 this year),” says Short.

Last year Zip Water secured a 15% reduction in its insurance premium and Short is hopeful of further reductions.

“I’ve been able to identify a couple of drivers who were repeat offenders in terms of crashes and we’ve implemented a driver education programme for them,” he says.

“We have a trainer, who is recommended by our insurer, and he spends an appropriate amount of time understanding why the driver is crashing and then taking steps to put that right.

“It’s only been small numbers but we have seen the driving events recorded by the telematics system go in the right direction as a result.”

The fleet’s latest Transporters have autonomous emergency braking (AEB) as standard and Short is also planning to fit cameras as and when vans are due for replacement.

“The van will have an interior mirror fitted but the mirror becomes a screen when the driver selects reverse so he can see what’s going on behind him. It’s also forwardfacing with recording facilities,” he says.

If it’s successful, Short will look to fit a similar device to the car fleet.

The fleet has grown 10% since Short was appointed and he envisages further growth as the company is recruiting additional service engineers and business development managers.

Whether they will be in electric vehicles remains to be seen. “I will try to add more electric vehicles when the time is right,” Short says. “That’s my big desire.”

Advertisement feature

Make your battery electric fleet go further With driver training, pure electric vehicles can be more than just city run-arounds

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major roadblock to the uptake of Battery Electric Vehicles (BEVs) is the perceived lack of adequate charging infrastructure available on UK roads.

In a recent driver survey, we found that 69% of respondents cited the lack of charging infrastructure as a reason behind their decision not to consider an electric vehicle for their next choice of car*.

We’re beginning to see an increase in the number of charge points on our roads and Shell’s announcement that rapid chargers will be installed at a selection of its UK fuel stations this year is a promising step in the right direction. However, until investment in charging infrastructure is fully prioritised in this country we may struggle to see widespread uptake of fully electric vehicles as, so called ‘range anxiety’ lingers.

This is disappointing because Battery Electric Vehicle technology is now stronger than ever.

These types of vehicles offer fleets a whole host of benefits when compared with the traditional combustion engine, including reduced CO2 emissions, low Benefit-in-Kind tax and often lower maintenance bills.

It’s well known that BEVs are perfect as city-run arounds adept for short journeys, but with a little extra preparation, fully electric cars can actually go much further than you might think.

By making some simple changes to driving style, drivers can actually make a big difference to the performance and range of their EV. This opens them up as a viable choice of vehicle to many more fleets who may have previously discounted them for longer journeys.

Fleets can capitalise on this by ensuring they incorporate an adequate driver training programme as part of any plans to go electric.

If the road is flat after the downhill slope then letting the vehicle charge as you go downhill will be more advantageous.

This should cover off simple eco-driving techniques such as:

Pre-journey prep

Regenerative braking When the vehicle slows down, kinetic energy is converted and stored in the battery. Utilising this function in the correct way, by anticipating when the vehicle will need to reduce speed ahead of time, is great for topping up the range during a journey.

Negotiating hills Electric vehicle batteries can top up charge when going downhill and this is where anticipation and reading the road are key. The gradient of the road on the other side of the hill will determine how to tackle the downhill slope.

For instance, you might let the vehicle safely pick up speed downhill (within the speed limit) in order to gain momentum and conserve energy to get up a hill on the other side.

To find out more, contact Lombard Vehicle Solutions on 0117 908 6490 or visit www.lombardvehiclesolutions.co.uk Finance subject to status. Guarantees and indemnities may be required. Lombard Vehicle Solutions is a contract hire and fleet management product provided by ALD Automotive Ltd, trading as Lombard Vehicle Solutions, Oakwood Drive, Emersons Green, Bristol BS16 7LB. ALD Automotive is registered in England No. 987418.

Some simple preparation is key; plotting the route to negotiate hills and ensuring the car is rid of any unnecessary load is likely to extend the range that little bit further Utilising telematics systems to reveal instances of heavy braking and harsh acceleration could also enable fleets to deliver more targeted training to their drivers on an ongoing basis, in turn ensuring their drivers get the maximum performance from their EV. Our Consultancy Services team empowers businesses to ‘go electric’ from the creation of the fleet policy right through to implementation and beyond. Through a consultative approach, they ensure fleets and their drivers are geared up to get the most out of their vehicles, with appropriate training and ongoing support. *Pulse Survey 2016

■ INSIGHT

DRIVER TR AINING

3 steps to a successful driver training strategy

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Designing and implementing a training programme can help a company keep its drivers safe and reduce costs.

Ben Rooth reports.

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robust driver training programme has numerous benefits for a company.

These include improving the safety of both employees and other road users, helping improve a company’s bottom line by reducing the need for repairs and vehicle downtime, and also

1

cutting insurance premiums.

However, businesses considering introducing or refreshing their driver training regime face a number of decisions, including: how do they identify who could benefit from training, what method is best and how do they implement their strategy?

Here we look at the three key steps.

Identify driver training needs

“All training requirements need to be based on the fullest understanding of risk associated with the driver, vehicle and journey,” says Andy Phillips, director of driver risk management company Applied Driving Techniques (ADT).

Key to this is the accurate capture of data.

This can come from a variety of sources such as collision reports, licence checks, telematics and online – as well as on-road – driver risk assessments.

Once this is collected, it needs to be correctly analysed – the most challenging part, according to driver training experts.

For example, looking at collision statistics will identify higher risk drivers, but only after they’ve had an incident.

Predicting who those individuals will be before an accident occurs is more challenging.

Chris Thornton, sales director of driver training company DriveTech, part of The AA, says: “It’s a well-established fact that drivers who crash are generally at higher risk exposure than others.

“As a result, many organisations use historic accident information to identify those drivers who need additional training.

“Using history, however, is, by definition, a reactive approach.

“If crash details are not known, the number of points on a licence can also be a good guide to a driver’s risk exposure but the number of points doesn’t give the whole story either.”

According to DriveTech, the best way to identify high-risk drivers is to combine all 20 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

existing driver information with a formal assessment covering their ‘ABC’ – attitude, behaviour and competence – to provide the most comprehensive driver risk profile.

One way of creating wide-ranging driver profiles is the use of telematics, according to Beverley Wise, director UK and Ireland of TomTom Telematics.

“The data collected can form a foundation stone to help businesses create more accurate risk profiles for individual drivers, enabling them to identify the root causes of unsafe practice and track improvements over time,” she says.

“The technology can score drivers on areas including speeding, idling, harsh steering or braking and fuel consumption.

“This allows the easy establishment of performance benchmarks and the identification of problem trends.

“Managers are able to drill down into individual areas of performance to gain greater insights into specific problems.”

However, Gary Bates, a director at road safety charity IAM Roadsmart, says telematics on its own does not identify why vehicles are being driven in a particular way.

“The data generated may provide a helpful starting point for identifying specific areas of focus for individual drivers or a fleet as a whole, offering a picture based on mileages or average speeds,” he adds.

“But this data is always open to interpretation and is never a substitute for having a qualified instructor observe a driver’s behaviour and coming to an understanding of the real-world pressures affecting them on the road in their jobs.”

1 Some experts maintain that targeted online risk assessments are also essential when it comes to determining a driver training programme.

Jonathan Mosley, sales director at E-Training World, an online driver profiling and e-training company, says: “The reason they’re so important is because they’re a pre-event mechanism that means you predict which drivers are at most risk.

“You can then intervene and provide relevant training before they have an incident.

“It’s also extremely quick and costeffective – 20 minutes per driver and you have a profile of everyone’s risk ratings and training needs.”

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■ T R A IN IN G P RO S A N D CO NS The main advantages and disadvantages of the different types of training sessions are: ■ Full on-road driving for work courses Advantages: Usually carried out on a one-to-one basis which means the instructor can observe and work directly with the delegate. It allows principles to be put into practice with immediate and memorable results.

Disadvantages: This method can be time-consuming and more expensive than group seminars or e-learning.

■ Modular on-road training courses Advantages: Less time-consuming and costly than full courses as they can be focused specifically on identified business needs.

Disadvantages: Limited in scope compared with a full driving for work course.

■ Seminars and group workshops Advantages: They’re inexpensive to run and allow you to train a lot of people at once.

Disadvantages: There’s no practical element and no individual driver assessment.

■ E-learning Advantages: Convenient and inexpensive – and a quick and easy way to record training compliance.

Disadvantages: Once again, there’s no practical element and “less engaging” than face-to-face training.

Source: IAM Roadsmart

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Identify the right training methods

The best training methods will be determined from the training needs analysis (see point 1 facing) and subsequently deciding exactly what skills and knowledge drivers need to possess and develop.

This process often comes down to a balance between need and costs.

The options include online modular training courses, often referred to as e-learning, bespoke group training sessions, off-the-shelf group training sessions aimed at, for example, resolving common accidents like rearend low-speed shunts, and one-to-one on-the-road training.

“Our belief is that the best way to change driver behaviour for the better is to work at a human level and coach drivers to make better decisions,” says DriveTech’s Thornton.

“This is best done face-to-face, usually by driving in the real world. It enables coach and driver to discuss issues so the driver can reflect on the training and make driving decisions based on more knowledge and a better understanding of defensive driving skills.

“However, not all drivers necessarily need this level of training, maybe just high-risk exposure drivers.

“Online learning and workshops for drivers and managers are less expensive to run and can deliver excellent results.”

E-Training World’s Mosley feels onroad one-to-one training is best for high-risk drivers who account for 10% of drivers according to his company’s online profiling system.

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“Online training is perfect for medium-risk drivers – who account for approximately 70% of the total – and low risk drivers do not necessarily need training,” he adds.

“Nonetheless, some companies choose to put all drivers through courses such as avoiding rear-end collisions and parking and manoeuvring, given hitting third parties in the rear and small knocks and bumps tends to feature most frequently in their accident statistics.”

IAM’s Bates says business drivers covering high motorway mileage can particularly benefit from group sessions or e-learning modules focused on dealing with distractions, managing speed and the theoretical aspects of eco driving.

“These types of training are popular among businesses with fieldbased teams who may have limited opportunity to take part in on-road sessions, or perhaps for businesses with a large number of staff for whom driving for work is a less significant part of their job,” he adds.

Martin Lamb, head of training at Fleet Source, says the training needs of an organisation should be constantly reviewed, refreshed and revised to ensure that training delivery remains current and not dated.

“Consideration needs to be given to the nature and functions of the workforce as well as the roles and responsibilities associated with them,” he adds.

Implement your driver training plan

Implementing the plan is “the most crucial element to get right”, says Andy Wheeler, business development director at driver training company TTC DriverProtect.

“Drivers need to know why they are undertaking a driver assessment or training programme, what the outcomes are if they require additional training and what the benefits to them are personally,” he adds.

“Consequently, a full communication strategy and proper launch with the drivers is essential and this should involve senior management leading by example.

“This means that they should undertake the same assessment and

training process as the rest of their staff.”

DriveTech’s Thornton agrees senior leadership buy-in is a vital component in launching a successful programme.

“In addition, the programme must be consistent with – and aligned with – the safety culture of the business,” he adds.

“In some industries, safety is a number one priority and therefore a road risk reduction programme can fit easily into the business and drivers will be receptive to participating.

“In companies where safety is not such a strategic issue, appropriate communications can play a vital part in underpinning the success of the new programme.” mydrivingbusiness.co.uk ❚ Winter 2017 ❚ 21

■ INSIGHT

SAFE T Y

ARTIFICIAL INTELLIG

THE NEW SAFETY REV Manufacturers are developing technologies which can monitor driver moods through facial expressions, body language and voice tone to further improve safety. Andrew Ryan reports DRIVER WELFARE

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river welfare is increasingly becoming a focus of vehicle manufacturers when developing safety technology.

Many cars already feature systems designed to detect signs of tiredness and warn the driver they need to take a break: research shows that fatigue may be a contributory factor in up to 20% of road accidents, and up to a quarter of fatal and serious accidents.

These types of crashes are about 50% more likely to result in death or serious injury as they tend to be high-speed impacts because a driver has fallen asleep and cannot brake or swerve to avoid or reduce impact.

Volkswagen’s Driver Alert System monitors driver behaviour by detecting erratic steering wheel movements and lane deviations, so it can judge the moment they start to feel sleepy and need to stop.

If the system detects the driver is starting to lose concentration it will alert him or her with a visual display on the dashboard and a warning sound. If they don’t take a break within 15 minutes, the system will repeat the warning.

However, even more sophisticated technologies to monitor driver welfare are being developed. Both Toyota and Honda unveiled concept cars at this year’s Tokyo motor show featuring the use of artificial intelligence (AI) to improve safety.

Toyota executive Makoto Okabe says the use of AI means cars may get to know drivers as human beings by analysing their facial expressions, driving habits and social media use.

This means they can detect when a driver is angry, confused, distracted or tired.

Honda’s Neuv can assess its driver’s stress levels by analysing facial expressions using cameras and voice tones and provide suggestions for coping with situations.

The Toyota Concept-i also reads facial expressions and voice tones, but takes it a step further by monitoring body language.

Using these parameters, it can work out if the driver is feeling happy or irritated, as well as nervous or tired.

It then tries to change the mood of the

22 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

Honda’s Neuv can assess stress levels through facial expressions

driver through various sensory inputs: it might expand and contract a seat to simulate the rhythm of deep breathing to calm them down when they are feeling anxious, jiggle them to make them more alert when they seem sleepy, or trigger a herbal scent known to be invigorating.

Toyota plans to have some of the technology ready for road tests by 2020.

Continental has developed a driver analysis system that uses two cameras embedded in the dashboard to monitor a driver’s gaze.

A computer analyses how often a driver closes their eyes and uses this information to prevent drowsiness by issuing an alert to the driver. It can also detect if a driver looks at the sat-nav for extended periods.

The company is also developing a car seat which uses inbuilt thermal sensors to identify body temperatures and humidity levels. It can help the car determine whether the driver is stressed or anxious, and can, for example,

turn on the air-con to cool the driver.

In the future, the sensors will be able to pick up things like heart rates and breathing patterns to see whether a medical emergency is in progress.

Nissan has showcased a Juke model with ‘smart’ materials aimed at encouraging drivers to remain properly hydrated.

A 2015 study by Loughborough University found that drivers who had consumed only a sip of water (25ml) per hour made more than double the number of mistakes on the road than those who were properly hydrated.

In conjunction with Dutch design brand Droog, a sweat-sensing technology coating called Soak has been applied to a Juke’s steering wheel and front seats.

The coating changes colour when it’s in contact with perspiration, giving a simple warning that the driver needs to have a drink: when the driver is dehydrated it turns yellow, when rehydrated it turns blue.

GENCE:

VOLUTION

VULNERABLE ROAD USER SAFETY

C

ar and van makers have until July 1, 2019 to fit all new models of hybrid and pure electric vehicles with an audible alert system to warn pedestrians and cyclists of their presence.

The EU audio vehicle alerting system (AVAS) regulation has been introduced to protect vulnerable road users in urban areas where the noise of a petrol or diesel engine lets them know of the proximity of a vehicle.

As vehicles which run on electricity are near-silent at low speeds, any noise created is often masked by the background noise of a city, increasing the risk for vulnerable road users.

At this year’s Tokyo motor show, Nissan revealed ‘Canto’: the future sound of its electric vehicles.

Perhaps best described as a high-pitched buzzing noise, its tone and pitch change dependent on whether the car is accelerating,

models have until 2021 to have it slowing down or reversing. installed.

The sound is activated at speeds Bosch has developed a of up to 12-18mph dependent system which employs on marketplace requirements, the mid-range radar with Nissan saying the level sensors used for blind of the sound will be clearly spot indicators to audible, without being overly help prevent vehicle disturbing to pedestrians, VISIT occupants from residents and passengers.

FLEETNEWS.CO.UK/ opening their doors in “Canto has been developed NISSANCANTO the path of a passing to help with pedestrian TO LISTEN cyclist. safety, as well as to provide TO IT In this system, the a distinct Nissan sound,” says sensors remain active for all Daniele Schillaci, executive vicecar doors for several minutes president for global marketing and after the ignition is turned off when a sales, zero emission vehicles and the battery vehicle is parked at the side of the road. business.

During this time, the system will warn The EU regulation stipulates that hybrid occupants of any incoming road users and pure electric cars will also have to be approaching from the rear within a fitted with a switch which allows drivers 20 metre radius. to turn the AVAS system off. All existing

mydrivingbusiness.co.uk ❚ Winter 2017 ❚ 23

■ INSIGHT

SAFE T Y

When vehicles ahead detect poor road conditions Volvo’s Slippery Road Alert can pass the information on to those following

ADVANCED DRIVER ASSISTANCE BLIND SPOT WARNING This detects vehicles approaching from the rear in the driver’s blind spot, alerting the driver should he or she be planning a lane change.

When introduced by Volvo, it relied on cameras mounted under the door mirrors, which could often be fouled by grime.

Now, it is more common to use radar sensors that continuously monitor behind the car and illuminate a warning light in or around the door mirror on the side where traffic is approaching. Should this have been missed and the driver indicates to warn of a lane change, an audible warning sound.

Once exclusive to large executive cars, advanced driver assistance systems (ADAS) are becoming increasingly available on vehicles of all sizes.

Using camera, radar and laser technology, they are able to keep cars in their lanes, warn of obstacles in the blind spot when changing lanes, provide support for pulling into and out of parking spots, and help maintain following distance, to name just a few examples.

Here we look at some of the ADAS systems currently available:

AUTONOMOUS EMERGENCY BRAKING While the technology is given the generic autonomous emergency braking (AEB) tag, manufacturers will often give it another name such as Volvo’s City Safety.

Laser and radar sensors continuously monitor the road ahead and pick up obstacles, such as other vehicles and pedestrians.

If the system deems that a collision is imminent, it will give the driver an audible and visual warning, and if the driver doesn’t intervene, it will apply a significant braking force to try to avoid it. Research by Euro NCAP has found that the technology leads to a 38% reduction in rear-end crashes.

The organisation has also included AEB systems with pedestrian detection in its safety rating system since 2016.

From next year, it will include emergency braking systems with cyclist detection in its scoring system.

Bosch has already developed an AEB system with cyclist detection which automatically brings a car to a stop from around 25mph. When the emergency braking system’s radar or video sensor detects an imminent collision, the Bosch iBooster initiates full braking in just 190 milliseconds – less time than it takes to blink twice.

24 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

CONNECTED/AUTONOMOUS TECHNOLOGY

I

reduce nose-to-tail incidents which occur when a car at the front of a line of traffic brakes sharply. Following drivers slow only when they see the brake lights, leading to a collision when at least one of the drivers fails to react in time.

With connected technology, as the first car brakes, it can also signal all the vehicles behind, allowing them to brake simultaneously.

Connected vehicle technology will also be able to warn of upcoming hazards, with, for example, Volvo introducing two connected car safety features initially in Sweden and Norway: Slippery Road Alert (SRA) and Hazard Light Alert (HLA). SRA collects road surface information from cars ahead and warns approaching drivers of a slippery road section, while HLA warns of vehicles ahead

t is becoming increasingly common for new cars to be fitted with advanced driver assistance systems (ADAS), such as autonomous emergency braking, which can have a significant impact on safety.

However, ADAS technologies use radar or laser sensors, and therefore rely on line of sight. Connected cars will be able to gather intelligence from further down the road, even at a blind junction or in weather affecting visibility such as heavy rain or fog.

KPMG research produced for the Society of Motor Manufacturers and Traders (SMMT) found that connected and autonomous vehicle technology could save more than 2,500 lives and prevent in excess of 25,000 serious collisions in the UK by 2030.

For example, it is expected to significantly

that have their hazard lights on.

Both systems use cloud-based data from the car to warn following vehicles of dangers ahead, and there is potential for these features to be rolled out more widely in the future.

The safety options also extend to predictive maintenance and providing diagnostics which will alert motorists when a fault may be about to occur on their vehicle – again, reducing the chance of a potential traffic accident.

Another element to this issue is that the data collected by these cars could be used by insurance companies to advise them on motorists’ individual driving habits and their potential risk.

This then further enhances public safety by advising drivers of traffic patterns, hazards and accidents in real-time.

CE SYSTEMS LANE-KEEPING ASSISTANCE Linked to the same technology that monitors the edge of the lane, the car can make subtle steering inputs to prevent it from leaving the lane unintentionally.

The steering correction can be overridden by the driver, but the system takes control if it thinks the driver isn’t holding the steering wheel.

Most systems are based on electric power steering systems where it’s possible for the car to correct the steering using the power steering motor. Where it’s available on cars with hydraulic power steering, it makes the corrections to the car’s trajectory with subtle application of the brake on the corresponding front wheel to bring the vehicle back into line.

LANE DEPARTURE WARNING This aims to avoid collisions caused by vehicles veering unintentionally out of their lane.

Lane markings are monitored by a camera and if the car moves close to the lines without the driver indicating, a visible alert or a vibration through the steering wheel is triggered.

EVASIVE STEERING ASSIST This system monitors the road ahead on a single carriageway and prevents the car from veering into the path of an oncoming vehicle or other road users.

Forward sensors linked to autonomous braking technology can prompt the car to alter its line smoothly to avoid a pedestrian suddenly stepping into the road, and return to the original line afterwards.

mydrivingbusiness.co.uk ❚ Winter 2017 ❚ 25

■ NE W MODEL S

SUV showstoppers A look at new model launches from the Frankfurt motor show HYUNDAI KONA

ON SALE: November PRICE: from £16,195 CO2 EMISSIONS: from 117g/km WHAT’S NEW: Hyundai joins the small crossover segment with the Kona which will be in showrooms this month.

Hyundai says the all-new Kona offers the latest technology, making premium features more accessible for a ‘convenient and safe driving experience’. It also features a head-up display which projects key driving information directly into the driver’s line of sight.

The two petrol engines are: a 1.0-litre three-cylinder, producing 120PS and a 1.6-litre turbocharged four-cylinder with 177PS. Allwheel-drive and a seven-speed automatic gearbox will be available with both units.

The most frugal petrol engine is expected to emit 117g/km of CO2 and Hyundai is yet to confirm whether its new 1.6-litre diesel engine will be available in the UK.

BMW X3 ON SALE: November PRICE: from £38,800 CO2 EMISSIONS: from 132g/km WHAT’S NEW: BMW’s new X3 goes on sale this month with prices starting at £38,800.

It’s £4,500 more than the outgoing X3 but priced competitively against the new Audi Q5 and Volvo XC60.

The 2.0-litre 190PS diesel engine remains the pick of the range for fleets, while the car itself has shed 55kg to keep running costs down.

There will also be an M Performance edition for the first time with a 3.0-litre petrol engine.

The range will start with the SE trim which features 18-inch alloys, climate control, sat-nav and leather seats. Mid-spec xLine adds more of an off-road look.

M Sport benefits from sports seats and more aggressive styling.

26 ❚ Winter 2017 ❚ mydrivingbusiness.co.uk

KIA STONIC ON SALE: November PRICE: from £16,295 CO2 EMISSIONS: from 109g/km WHAT’S NEW: Kia’s first compact SUV, the Stonic, goes on sale this month. The new Rio-based model is key for the manufacturer to compete in the growing B-segment – one which is expected to account for one in 10 new cars sold in Europe by 2020.

A choice of 20 colour configurations make the Stonic the most customisable Kia to date.

It will be available with a 1.0-litre turbocharged petrol engine and a 1.6-litre diesel, alongside a 1.25-litre and 1.4-litre petrol. A new diesel unit is expected in 2018.

Kia says the car’s steering and suspension have been tuned for a more engaging drive, while its dimensions belie a spacious interior.

VOLVO XC40

ON SALE: January 2018 PRICE: from £27,905 CO2 EMISSIONS: from 127g/km WHAT’S NEW: Volvo has entered the compact SUV market for the first time with the new XC40.

It’s designed to be a premium product and comes with a high level of standard equipment. Prices start at £27,905 with four engines and three trim levels to choose from.

The 156PS T3 is available exclusively with front-wheel drive, while the 150PS D3 is offered in front- or all-wheel-drive form. The T4 (190PS), T5 (247PS) and D4 (190PS) come with all-wheel drive and an automatic gearbox.

All XC40s get sat-nav, LED headlights, dual-zone climate control, a 12.3-inch active TFT configurable driver’s information display and rear parking sensors.

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