Fleet Van February 2014

FleetVan Fleetnews.co.uk/fleetvan

Business support... Running costs, fuel prices, CO2 emissions tools

Missed an issue? Access our full Fleet Van archive online

B E S T P R A C T I C E F O R B R I TA I N ' S L I G H T VA N O P E R AT O R S

Follow us... Get the latest van updates on Twitter

February 2015 ÂŁ5 where sold

Insight: FTA analysis

Almost half of LCVs fail their first Class 7 MOT test Driven: Transit Courier

New Ford model makes compelling case for petrol Insight: funding

Fleets turn to contract hire to free up cash

Spotlight: Iveco

DAILY SALES 'WILL RISE 25%' New managing director Bob Lowden wants the latest model to become the fleet van of choice

Insight: Eco Stars

Scheme cuts fuel costs by at least 5%

Contact us Fleet News, Media House, Lynchwood, Peterborough PE2 6EA. Email – fleetnews@bauermedia.co.uk Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Deputy editor Sarah Tooze 01733 468901 sarah.tooze@bauermedia.co.uk News editor Gareth Roberts 01733 468314 Features editor Andrew Ryan 01733 468308 Web producer Christopher Smith 01733 468655 Associate editor Trevor Gehlcken Contributors Mark Cartwright, John Charles, Chris Lowndes (photographs)

CONTENTS

4 I News insight

12

Council fleets urged to trial biodiesel blend.

6 I News digest Important news from the past month in the sector.

8 I Sales figures analysis

Production Head of publishing Luke Neal 01733 468262 Production editors Richard Davis 01733 468310 Finbarr O’Reilly 01733 468267 Designer Erika Small 01733 468312 Advertising Commercial director Sarah Crown 01733 366466 B2B commercial manager Sheryl Graham 01733 366467 Account managers Wendy Cowell 01733 366472 Lucy Herbert 01733 366469 Lisa Turner 01733 366471 Stuart Wakeling 01733 366470 Marcus Woods 01733 366468 Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468338 Angela Price 01733 468253 Kerry Unwin 01733 468327 Telesales/recruitment b2brecruitment@bauermedia.co.uk 01733 468275/01733 468328

Strong economy drives growth in van sales.

12 I Coming soon We take a look at the new models on the market.

27

15 I FTA Benchmarking: Road testing A shocking number of vans on the road would fail their MOT, according to figures.

18 I Insight: Eco Stars More and more fleets are signing up to the green scheme with potential fuel savings of at least 5%.

24 I Profile: West Midlands Ambulance Service

30

Events Event director Chris Lester Event manager Sandra Evitt 01733 468123 Event organiser Kate Howard 01733 468146 Events co-ordinator Nicola Baxter 01733 468289

A private industry background helps Tony Page to inject new ideas into his fleet.

Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan

30 I Spotlight: Iveco

Fleet Van is published 10 times a year by Bauer Consumer Media Ltd, registered address 1 Lincoln Court, Lincoln Road, Peterborough, PE1 2RF. Registered number 01176085.

No part of the magazine may be reproduced in any form in whole or in part, without prior permission of the publisher. All material published remains the copyright of Bauer Consumer Media Ltd. We reserve the right to edit letters, copy or images without further consent.

The submission of material to Bauer Media whether unsolicited or requested, is taken as permission to publish in the magazine. Any fees paid in the UK include remuneration for any use in any other licensed editions.

Whilst every reasonable care is taken to ensure accuracy, the publisher is not responsible for any errors or omissions nor do we accept any liability for any loss or damage, howsoever caused, resulting from the use of the magazine.

ISSN 0953-8526.

Printing: Headley Brothers Ltd, Kent

27 I Remarketing A record increase in used vehicle values at auction.

Hope for the new Daily to help increase growth.

32 OUTRIGHT PURCHASE

37

32 I Insight: funding CONTRACT HIRE

Fleets switch from outright purchase to contract hire.

37 I Volkswagen Caddy Kombi 38 I Ford Courier 39 I Vauxhall Movano 42 I Citroën Relay 43 I Great Wall Steed 44 I Volkswagen Transporter 46 I Renault Trafic long-termer NEXT ISSUE – MARCH

Insight: LCV networks and SMR How dealer developments are helping fleets.

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 e mail address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.

“My customers care about environmental impact, so I want a partner that does the same.”

ECU remapping on over 24,000 vehicles has cut 25,000 tonnes of CO2 emissions.

0800 032 0012

bt�eet.com

fleetnews.co.uk/fleetvan February 2015 3

NE W S IN SIGH T

Council fleets urged to switc Local authorities asked to help combat capital’s ‘fatberg’ problem and reduce emissions NEED TO KNOW ■ Successful B20 blend trials on buses ■ Re-use of oils helps combat sewer blockage ■ TfL wants fleet of hybrid and electric buses

By Gareth Roberts ouncil fleets need to be persuaded to run their vans and trucks on biodiesel made from chip fat.

The Greater London Authority (GLA) wants to help create a demand for a locally-produced renewable fuel supply, which could cut CO2 emissions and prevent London’s sewers being blocked by so-called ‘fatbergs’.

The biodiesel would be made from used cooking oils (UCOs) and fats, oils and greases (FOGs) from commercial and domestic sources in the south east.

“This is an opportunity that could deliver both waste and carbon savings,” said a GLA spokesman. “The key for us is to generate demand. If you can generate demand for biodiesel the market will respond.”

Some of London’s buses are already using a blend of 80% regular diesel and 20% biodiesel – known as B20 – after successful trials, but the GLA spokesman added: “We’re now ready to turn our attention to local authorities within London.”

There are 32 boroughs within the Greater London Authority area. Each operates its own municipal fleet, but very few use biodiesel.

The GLA spokesman said: “We held an event at City Hall in January, where we invited fleet managers from the boroughs to talk about issues and challenges involved in adopting biodiesel.

C

The GLA has conducted a successful trial involving more than 120 buses on B20

4 February 2015 fleetnews.co.uk/fleetvan

“It was a great success. They were able to hear from fleets which are already using biodiesel, and from manufacturers, who were able to give technical advice.

“We’re now in the process of developing a document that will offer practical advice to fleets on using a B20 blend, which we aim to distribute in the next few months.”

Norman Harding, corporate fleet manager at Hackney Borough Council, is running 38 trucks on a 100% biodiesel blend and shared his experience of the fuel at the event in London last month.

“The response from other fleet managers was very positive,” said Harding. “It alleviated a lot of the fears people have about the use of biodiesel, but whether they choose to do a trial depends on their site, fleet and type of operation.”

Harding is hoping to use a B20 or B30 blend in part of his 170-strong LCV fleet by the end of 2015.

However, that depends on being able to get a van manufacturer that is happy to entertain a biodiesel blend.

Transport for London (TfL) first conducted a biodiesel trial with its Dial-a-Ride buses in 2008, which proved to be a technical success.

However, the way the service operated didn’t suit regular refuelling at a depot where the

100% 2020

biodiesel blend being used on Hackney Borough trucks

year by which TfL wants all bus fleets to be on a B20 blend

biodiesel could be bunkered.

Undaunted, a report was commissioned by the GLA to better understand the market for biodiesel produced from UCOs and FOGs. The findings were published in a report in September, 2013, and confirmed the viability of biodiesel production and its environmental benefits within the capital.

The GLA spokesman explained: “We have seen an opportunity, if we can increase demand significantly within London to attract some infrastructure into the capital. That could be a refinery or a blending facility, or a pre-processing facility.

“There are a number of elements to biodiesel production that could happen in London.”

The GLA has already successfully conducted a trial involving more than 120 buses running on a B20 biodiesel blend made from chip fat and other food waste.

And, as Transport for London has now outlined in its 2015/16 business plan, it is aiming for all bus fleets in the capital to be operating on a B20 blend by 2020.

This blend is estimated to cut carbon emissions by 15%, but fails to cut nitrogen oxide (NOx) or particulate matter (PM10) found in diesel emissions, according to experts. Some blends of biodiesel can result in a reduction in PM10, but have the opposite effect on nitrogen oxide (NOx), instead increasing the harmful pollutant. The biodiesel NOx effect can be mitigated by changes in engine operation parameters and varies by engine age, according to Environment Agency.

ch to biodiesel

EDITOR’S COLUMN Sarah Tooze, deputy editor, Fleet Van

Recognition schemes are becoming an increasingly popular way for van fleets to benchmark their performance and share best practice.

Transport for London’s Fleet Operator Recognition Scheme (FORS) started life as a scheme for freight companies operating in the capital, but was extended to van fleets, and is now being rolled-out nationwide (see page 6).

It has been successfully running a B50 blend during the summer months and a B25 blend at all other times in a variety of commercial vehicles, including the Citroën Berlingo, Mitsubishi Outlander and Ford Transit Connect.

The Society of Motor Manufacturers and Traders (SMMT) will hold an air quality debate in London this month, where commercial vehicle and bus manufacturers, including Ford, Iveco,

“The response from other fleet managers was very positive” Norman Harding, Hackney Borough Council

Mercedes-Benz, Optare and Renault Trucks UK, will demonstrate how new and emerging technologies, including the latest Euro6compliant diesel vehicles, have the potential to all but eliminate NOx. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: “Manufacturers have invested heavily in clean Euro6 technology, which is already playing a vital role in reducing all emissions and making significant improvements to air quality.

“Tests on London’s 159 bus route demonstrated an 85-fold reduction in NOx emissions over the previous Euro5 standard – as well as a virtual elimination of particulate emissions.”

The GLA also recognises the air quality benefits new technology could bring in the future. “What we’re aiming to do in the long-term is limit the impact of diesel on our air quality and transition to electric,” said the GLA spokesman.

“TfL is already trialling diesel hybrid buses and is aiming for a fleet of 2,400 hybrid buses and 300 electric buses by 2020.” By then, London could also be operating the world’s first Ultra-Low Emission Zone (ULEZ), where all vehicles in central London would need to meet new exhaust emission standards – or pay a fee. If implemented, it is projected to halve emissions from vehicles.

For more on green issues for fleets, visit: fleetnews.co.uk/environment

“Companies who have joined schemes say it has benefited their business as well as their fleet.”

Similarly, the Eco Stars recognition scheme, which began in South Yorkshire, has expanded to 11 other areas in the UK, with more in the pipeline (turn to page 18).

The scheme has proved particularly beneficial for small van fleet operators, who have seen fuel savings of at least 5%.

The Freight Transport Association’s Van Excellence scheme, which was named best new product or service at the 2012 Fleet News Awards, has also expanded rapidly, with major household names becoming accredited members.

If you’ve not yet joined a scheme it’s well-worth considering.

Companies that have done so say that it has not only benefited their fleet operations, it has helped them win new business.

fleetnews.co.uk/fleetvan February 2015 5

NE W S DIGE S T

W W W.F L EE T NE W S.C O.UK / VA N S

TfL awards FORS contract to AECOM AECOM has been awarded a five-year contract

by Transport for London (TfL) to manage the TfL-developed Fleet Operator Recognition Scheme (FORS).

It will manage and develop FORS in partnership with the Chartered Institute of Logistics and Transport (CILT) and Fleet Source.

However, TfL says it will retain an integral role in the scheme as the industry-led accreditation scheme is also rolled-out nationwide.

All new companies joining FORS will pay: ■ An annual subscription fee based on their fleet size, ranging from £65 for companies with one vehicle to £2,250 for companies with 100-plus vehicles.

■ An audit fee based on the number of operating centres they wish to have accredited with a standard rate of £450 per operating centre.

■ For companies that are already accredited with FORS, there will be a charge for the annual renewal although this charge will be waived or reduced in the first year, depending on the company’s renewal date.

Global courier firm DHL has been sentenced for safety failings after a driver was run over by his own vehicle at a depot in Bedfordshire.

The 42-year-old from Leeds was connecting a trailer to his cab at DHL’s Dunstable depot at the start of his shift at around 2am when the vehicle moved. He was run over after he tripped and fell while attempting to catch up with the cab to stop it hitting and injuring a pedestrian or nearby property.

The worker, who does not wish to be named, suffered life-changing injuries including five fractures to his pelvis.

DHL, registered at Great South West Road, Hounslow, was fined a total of £50,000 and ordered to pay costs of £15,698 after pleading guilty to breaching Section 2(1) of the Health and Safety at Work Act 1974.

Volkswagen Commercial Vehicles to offer RAC telematics Volkswagen Commercial Vehicles has launched a new telematics service which can be fitted to almost any vehicle for a monthly contract fee of £12.50 (ex VAT).

The service is a partnership between Volkswagen Commercial Vehicle Finance and the RAC, and provides businesses with real-time data and reporting through a customisable portal, helping fleets to manage fuel costs and improve vehicle efficiency. The bespoke portal is accessible via laptop, tablet or smartphone.

Other key product benefits include collision detection, fuel and CO2 monitoring, service alerts, service scheduling and geo-fencing, as well as a ‘Driverline’ concierge service, which enables service and maintenance at a local van centre.

Developed to be compatible with almost any vehicle in the market, Volkswagen commercial vehicles telematics enables mixed vehicle fleet customers to manage their entire fleet through one system.

Kevin Rendell, head of service and parts at Volkswagen Commercial Vehicles UK, said: “Running a cost-effective fleet is crucial to a profitable business. Our telematics system is a comprehensive solution, which can help reduce fuel costs, extend the lifespan of parts and components, and optimise vehicle efficiency.

Available at Volkswagen Commercial Vehicles Van Centres, the units are offered on a monthly contract fee for 36 months.

Fleet operator fined £40,000 after pensioner killed by van Lothian Health Board has been fined £40,000 after a pensioner was killed by a reversing van as she crossed a clearly marked pedestrian route into Edinburgh’s Western General Hospital.

Ellen Cornwall, 77, of Penicuick, was on her way to visit her husband in the hospital when she was struck by the reversing van.

6 February 2015 fleetnews.co.uk/fleetvan

DHL fined after driver suffers life-changing injuries

She suffered multiple injuries and despite receiving immediate medical care from hospital staff she later died. The joint investigation found that there were no risk assessments in relation to the access road leading to the kitchen service area, any of the hospital’s delivery areas or in respect of any traffic management issues onsite.

SMMT hosts commercial vehicle air quality debate SMMT will host a debate this month (February) on the bus, coach and commercial vehicle sectors’ contribution to improving air quality.

Aimed at national and local government policy stakeholders, fleet operators and vehicle manufacturers, the event will showcase clean air technology embedded in the latest buses, trucks and vans, and investigate potential policy frameworks for clean air in the UK.

United Worldwide Logistics saves £20,000 through flexible rental Logistics provider United Worldwide Logistics (UWL) has reported significant cost savings and improved cashflow after teaming up with Northgate Vehicle Hire.

Northgate Vehicle Hire has been helping the South Wales-based company to identify and meet its fleet requirements on a week-by-week basis since July 2013, improving cashflow by £10,000 and saving UWL a further £10,000 per year on service and maintenance costs.

It’s a no-brainer.

Run a cheaper, safer and greener feet with Quartix vehicle tracking. From £13.40 per month on a 36-month contract. Install and warranty are free; setup is £20.

Call our friendly team today for more information, an online demo, or a custom quote.

Download from Windows Phone Store

0870 013 6663 enquiries@quartix.net www.quartix.net

2 014 S A L E S F IGUrE S A n A Ly SI S

Strong economy drives 19% growth in van sales Ford strengthens its position as market leader while Volkswagen hits all time high

By Trevor Gehlcken s Britain continues to lead Europe on the road to economic success, 2014 saw sales of vans up to 3.5 tonnes gross vehicle weight rocket by a healthy 18.7%.

Most manufacturers increased their van registrations with Volkswagen, having overtaken Vauxhall to the number two slot the year before, continuing to consolidate its position behind market leader Ford.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, comments: “A continued demand for vans has seen the commercial vehicle market in 2014 return to pre-recession levels, reflecting the growing confidence of many businesses in the UK. Meanwhile, the outlook for 2015 is bright.”

There were some dramatic changes in fortune for some van makers. Peugeot, for example, sitting at number four behind Vauxhall, recorded a rise of 50.1% – a remarkable figure bearing in mind that the manufacturer did not have any new model launches throughout the year.

Gareth Pockett, Peugeot’s LCV product manager, says: “It was a fantastic result for Peugeot and our extensive LCV business. We’ve improved our market share considerably and at the heart of this growth has been the durability and versatility of our vehicles.”

The Boxer, which benefited from a restyle and enhanced specification in 2014, resulted in demand up by 89%, to put the vehicle among the top three in the 3.26 tonne-3.5-tonne sector.

Pockett adds: “The mid-life restyle permitted a reappraisal of LCV customer expectations and the specification was tailored with their requirements in mind.

“As an example, Bluetooth connectivity is now standard across the Boxer range, while ‘professional’ level vans come with a five inch colour touch-screen with integrated satellite navigation – an obvious benefit to any commercial business.

“This feature is almost unique in the LCV market place and thanks to consultations with residual value experts, will contribute to lowering overall running costs.

“With the inclusion of features like a steel bulkhead and security alarm, coupled with passenger car levels of comfort

A

Peugeot Boxer: demand increased by 89%

8 February 2015 fleetnews.co.uk/fleetvan

50% increase in sales for Peugeot, which now sits at No4 in the rankings

82,519 number of vans up to 3.5t sold by Ford last year

and styling, we have put the Peugeot Boxer on the wish list of many more commercial vehicle users.”

Meanwhile market leader Ford, which has replaced its entire van range in the past two years, saw its sales rise by 21.26% to consolidate its lead by increasing market share from 25.11% in 2013 to 25.65%.

Mark Ovenden, Ford of Britain chairman and managing director, says: “Ford’s commitment has been consistently to provide UK customers with the best vehicle range and aftersales support supplied through the strongest dealer network.

“Our long-standing market leadership is the reward for delivering on this promise.”

Volkswagen’s sales of 40,238 vans was an all-time best in the UK for the German manufacturer. Carl zu Dohna, director of Volkswagen Commercial Vehicles, says: “Our vans are proving more popular than ever, not just because of their quality and comfort, but also because of our strong residuals and the service support provided from our dedicated Van Centre network.

“These are strong results and everyone involved in the brand deserves a huge thank you. We will carry this strong performance and phenomenal momentum into the rest of this year, which we expect to be truly exciting.”

CommerCial vehiCles up to 3.5 t Marque Ford Volkswagen Vauxhall Peugeot Mercedes Citroen renault Fiat nissan Toyota Land rover Mitsubishi Isuzu Iveco Other Imports renault Trucks Great Wall Mini Isuzu Trucks Ssangyong Mitsubishi Fuso Hyundai Mia Total Light CV

2014 82,519 40,238 32,619 31,867 30,464 27,228 18,170 12,629 10,270 9,611 8,344 6,946 5,502 2,769 609 568 279 278 227 197 178 173 1 321,686

% 25.65 12.51 10.14 9.91 9.47 8.46 5.65 3.93 3.19 2.99 2.59 2.16 1.71 0.86 0.19 0.18 0.09 0.09 0.07 0.06 0.06 0.05 0.00 100.00

YTD-13 68,054 36,925 29,736 21,230 25,667 22,989 12,978 12,019 10,619 8,063 6,644 5,927 4,112 3,275 291 411 667 694 213 168 148 240 3 271,073

% 25.11 13.62 10.97 7.83 9.47 8.48 4.79 4.43 3.92 2.97 2.45 2.19 1.52 1.21 0.11 0.15 0.25 0.26 0.08 0.06 0.05 0.09 0.00 100.00

% Change 21.26 8.97 9.70 50.10 18.69 18.44 40.01 5.08 -3.29 19.20 25.59 17.19 33.80 -15.45 109.28 38.20 -58.17 -59.94 6.57 17.26 20.27 -27.92 -66.67 18.67

Ford has replaced its entire van range in the past two years

“These are strong results and everyone involved in the brand deserves a huge thank you” Carl zu Dohna, director of commercial vehicles, Volkswagen Every vehicle in the brand’s range played its part in this success. Transporter accounted for 18,593 registrations, compared with 16,663 in 2013 – up 11.6%. The Caddy remained as popular as ever, with 12,292 new vehicles making their way to new customers.

Crafter registrations soared in 2014 to a record 7,130, up 38.4% on 2013 (5,153), while demand for the Amarok doublecab increased by 20% (3,080), when compared with 2013 (2,559).

Mercedes-Benz enjoyed its best-ever year too with a sales rise of 18.69%, partly due to the fact that, with the addition of the Citan small van, the manufacturer now has a full range of vehicles on offer.

Steve Bridge, managing director, Mercedes-Benz Vans, says: “When we broke the 30,000 registrations barrier in 2013, we broke all records in the UK history of our brand so to now announce registrations in 2014 of over 35,000 is a remarkable feat.

“We have the products, services and people to provide van owners and operators in the UK with an outstanding offering and our success in 2014 is proof of that.

“This year will be our year of sustainability, focused on maintaining our impressive registration benchmark and we look forward to a successful 2015.”

Of the 35,036 Mercedes-Benz vans registered in 2014, the brand increased sales over the previous year in every month, with the exception of September.

In terms of individual model performance across the year, Sprinter registrations increased by 12%, with Citan up by 39%. Sprinter chassis-cabs increased by 50%. Vito, in its run out year, remained at the same level as 2013.

Service and parts showed 8.9% growth, owing to an increase of nearly 4,000 extra vans using Mercedes-Benz workshops for retail work, with service contract packages showing a penetration level of 27.5% across new and used products.

19% increase in sales for Mercedes-Benz vans

40,238 number of Volkswagen vans sold last year

For more on van sales, visit fleetnews.co.uk/ vans/fleet-van-sales/

2014 was also another record-breaking year for MercedesBenz Financial Services. In the year, MBFS funded more vans than ever before, lending more than £250 billion worth of finance, which represented a 6.8% increase on the previous year. nearly one third of all Mercedes-Benz Vans registered in the UK were funded by MBFS. Citroën’s LCV range performed strongly through 2014, with sales of 27,228 vehicles to take an 8.46% share of the sub 3.5-tonne GVW sector. Compared with 2013, Citroën’s LCV registrations were up 18.44%. The Berlingo had an exceptional year, recording its best-ever annual sales figure of 15,349 units.

Jeremy Smith, Citroën’s head of commercial vehicles and business sector operations, comments: “Against strong competition from a host of new LCV products launched in 2014, the well-proven Citroën LCV range delivered a very strong sales performance. The Berlingo stands out with its best-ever annual sales since this model was introduced in 2008. Also performing strongly was the new relay, which delivered a 35.52% rise in sales through 2014 and Dispatch sales were up by 25.77% in the same period.”

Meanwhile, some of the smaller players enjoyed a strong 2014. Isuzu, whose D-Max scooped the title of pickup of the year at this year’s Fleet Van awards, saw sales rise by 33.80% to 5,502 vehicles.

William Brown, general manager at Isuzu UK, says: “This is a fabulous result for us and exceeded the plans we had in January and our revised targets that we set in June.

“Throughout the year, we consistently ranked at number one for sales to retail buyers in the UK, underlining the appeal of the D-Max’s core strengths of rugged off-road ability paired with car-like refinement. With further enhancements and new models to be introduced to the range in 2015, we’re confident we can break more records again this year.”

The only two major players who saw sales fall were nissan (down 3.29%) and Iveco (down 15.45%). Iveco put its fall down to problems with the changeover from the old Daily to the new model which was launched last year. new managing director Bob Lowden says: “We had problems with the phase-out/phase-in of the old and new Daily and we just didn’t have any to sell at one point. In fact we lost the equivalent of a whole month’s sales. But if you look at the December 2014 figures, when the new Daily was fully available, our sales were 17% up” (see Iveco Spotlight feature, page 30).

fleetnews.co.uk/fleetvan February 2015 9

NEW VIVARO BEST IN CLASS

NEW VIVARO BUILT TO TAKE IT ALL Welcome to a whole new van for a whole new world of work. The latest award-winning BiTurbo engines deliver more power, torque and economy. FlexCargo gives you class-leading load length.

And a new design means it’ll take any job in its stride. No wonder What Van? has awarded the New Vivaro Medium Van of the Year for 2015.

Call 0845 740 0777 or visit vauxhall.co.uk/newvivaro Model shown includes FlexCargo, not available on all models.

NE W L AUNCHE S

Improved ergonomics and technology as standard VAUXHALL CORSAVAN

Vauxhall has revealed full details of its new Corsavan, which is due to go on sale in the UK this month.

The new model features class-leading payload, up by 21kg against the outgoing model to 571kg, and a load capacity of 0.92 cubic metres. At 4.02 metres long and 1.94 metres wide, the new van is compact enough to fit into tight parking spaces and negotiate narrow city streets.

The Corsavan features a range of Euro6 petrol and diesel engines, offering up to 83.1mpg and CO2 emissions as low as 90g/km. There’s also IntelliLink infotainment smartphone connectivity.

Driver ergonomics have been improved, with seats providing increased support. Ambient lighting and reduced levels of noise, harshness and vibration further improve the van, as well as new options including climate control, Winter Pack with heated seats and steering wheel, DAB and Bluetooth, alloy wheels and parking sensors.

FIAT DOBLO CARGO

VOLK S WAGEN A M A ROK ULTIM ATE

Volkswagen continues to roll out ever more exotic niche models with the launch of the Amarok Ultimate. Priced from £29,995, ex-VAT, the new model is distinguished by bi-xenon headlights, 19-inch Aragonit polished alloy wheels and double chrome strips on the radiator grille.

Standard equipment includes electrically foldable, heated, adjustable door mirrors with enhanced chrome detailing. Darkened tail light lenses and a new LED numberplate light complete the exterior design package.

Inside, the Amarok Ultimate has Alcantaratrimmed seats, leather multifunction steering wheel, alloy pedal covers (automatic only), heated driver and front passenger seats and sat-nav.

A reverse-parking camera is also part of the standard specification list, along with rear privacy glass and Bluetooth.

The model comes with Volkswagen’s top-ofthe-range 2.0-litre BiTDI 180bhp engine, offering up to 310lb-ft of torque and a maximum towing capacity of up to 3,200kg.

SSANGYONG REXTON W CSX

South Korean manufacturer SsangYong is launching an upgraded version of its Rexton commercial vehicle, with an improved interior and more efficient engine.

The cabin has been given a refreshed new look.

Aluminium-effect and chrome finishes, along with soft-touch materials result in a more modern and comfortable environment.

Standard equipment now includes cruise

12 February 2015 fleetnews.co.uk/fleetvan

The Fiat Doblo Cargo gets new looks and various other subtle improvements for this year.

The fourth generation of the model, which has clocked up 300,000 sales since launch in 2000, features a restyled front end with sculpted bonnet, new front wings, distinctive new headlamps and new grille.

The Doblo range offers three engine and transmission choices, three trim levels, two roof heights and a choice of five- or seven-seat versions. Twin sliding rear doors are standard, while a choice of tailgates and the option of a fold-flat front passenger seat give fleets scope for customisation.

Inside, five-seat models have a 790-litre cargo capacity, which can be boosted to 3.2 cubic metres with seats folded. Other subtle improvements include lighter and more precise gear changes, better noise insulation and more responsive throttle.

control, air conditioning, electrically-operated and heated door mirrors, leather-covered steering wheel and gear knob and CD & RDS radio with iPod and Bluetooth connectivity.

At the rear end there’s a flat load area, accessed via a tailgate and two side doors, offering 2.2 cubic metres of load volume. The load deck length measures 1,700cm, and 107cm between the wheel arches and carries a payload of 615kg, while towing weight is three tonnes. The Rexton has a five-year unlimited mileage warranty.

BENChM A rk iNg By T hE F TA : r OA D T E S T iNg

Half of 3.0-3.5t LCVs fail their first MOT Figures show more than a million vans on the road likely to fail Class 7 test

FAIL

By Mark Cartwright, head of LCVs, FTA cary headline. But that’s exactly how the almost 50% first time MOT failure rate for vans going through the Class 7 test translates. Admittedly the Class 7 test is only for vans between 3.0 and 3.5 tonnes; the Driver and Vehicle Standards Agency (DVSA) finds it difficult to separate vans from cars in its figures, but let’s accept they are probably broadly similar.

For an industry that prides itself on compliance and safety these are shocking numbers, which do little to shake off the image of ‘white van man’.

They are figures that have galvanised DVSA, Department for Transport and the Traffic Commissioners into seeking a remedy, with increased and better targeted enforcement.

There has even been talk of increasing the MOT charge.

A recent poll of FTA members paints an interesting story.

The respondents to our survey operate almost 70,000 vans overall, with about a quarter being of MOT-ready age – a little less than the national average. Almost all take their vans from new, with only around 8% divesting before MOTs are due. Not surprisingly, given the economic conditions and the increasing reliability of vans, almost 40% of operators report that they are keeping their vans for longer, a figure reflected in the short supply of the second-hand market.

While the increasing age of the vehicles and mileage aren’t necessarily reasons for non-compliance, they do make you wonder. These market indications imply the ‘butcher, baker, candlestick maker’ one-van-man, or SME, is keeping their van longer and that, where they are buying second-hand, the quality of vans available is diminishing.

S

“I do not accept any MOT failures without subjecting the maintenance provider to an investigation into the reasons” Neil Fearn of LBS Builders Merchants

PASS

How do our respondents fare at MOT? Almost half (44%) ‘never’ failed, a further 31% ‘rarely’ failed and 22% ‘occasionally’ failed. We’d interpret that as 97% doing pretty well at getting their vans through first time.

These are the operators who also operate trucks and have a planned preventative maintenance (PPM) system – of which more later.

John Moore, fleet maintenance manager at Scottish Power, summarises this approach: “None of our fleet vehicles are allowed to be presented for MOT without first being inspected. Failure is a concern and every failure is investigated.” it’s a view shared by Neil Fearn of LBS Builders Merchants: “i do not accept any MOT failures without subjecting the maintenance provider to an investigation into the reasons for the failure. This, along with regular performance meetings, has kept our failure rate exceptionally low. i have had just three failures in my total fleet in the past five years.” interestingly, these figures corresponded with the responses received when we asked operators about their attitude to the MOT. The vast majority saw the test as “an opportunity to present my vehicles in the best light and prepare accordingly”, with just 5% admitting they didn’t check vans prior to submitting them to MOT. Many respondents said they relied on maintenance providers, often on behalf of lease providers, to manage the process, and insisted on their vans going through a similar preparation process to trucks (all were aware of the impact failure could have on their operator licence).

fleetnews.co.uk/fleetvan February 2015 15

BENChM A rk iNg By T hE F TA : r OA D T E S T iNg “We expect a 100% pass rate”, Vince Dignam, business improvement and performance manager for the City of London says.

“We have rigorous maintenance procedures and examine our pass rates regularly. We see no reason why any of our vans should fail.” however, it is worth noting that a small percentage of respondents assumed they had a (very) low first-time failure rate because that was what was reported back to them by their lease and finance providers.

A little digging identified that this wasn’t always the case and failures weren’t being reported back to them; suffice to say, they are now.

Our experience with most of the operators we deal with through Van Excellence is that they understand the benefits of preventative maintenance.

Those in the civil engineering sector will often put the cost of having a vehicle off the road into thousands of pounds per day.

There are two requirements at the heart of any PPM process: pre-use defect checks by the driver and regular ‘duty of care’ inspections – 96% and 81%, respectively, of respondents needed these to be carried out. interestingly, more than half serviced their vehicles more regularly than the manufacturers’ guidelines.

What does this feedback tell us about the high first-time failure rate?

The feedback seems to support our initial thoughts on the subject, insomuch as the operators who ‘get’ the safety and compliance issue are more likely to run their vans along the same lines as a truck fleet. it also suggests that it is the requirements for pre-use checks and duty-of-care inspections that ensure roadworthiness and which greatly improve pass rates.

The feedback tells us that the cost benefits are good once the processes are in place with better mpg, reduced damage and less downtime as well as the overwhelming moral obligation for a safe working environment and to reduce road risk for others. it highlights the need for greater involvement and education for the smaller fleets, including SMEs.

8%

87% of operators see the MOT as an opportunity to present their vehicles in the best light

What is your attitude to van MOT’s?

47%

How should greater compliance and improved standards be achieved?

Many felt those lagging behind should better understand the benefits of getting it right and that it fell upon us all within the industry to get this message across.

Something that struck me in looking at the survey results was that 52% of operators worked as a contractor for other businesses with a similar number regularly using contractors – is it too much to hope for a little encouragement from these contractors?

More and better targeted enforcement activity seems to have a place. DVSA has been very successful with intelligence-led enforcement in the truck and bus sectors and although it is difficult to see how this could be replicated in the van sector without enormous investment and additional legislation, perhaps operators can play their part by ensuring vans are clean and tidy and by being seen to be taking their responsibilities seriously. i guess i would say this, but surely a nice Van Excellence Accredited Operator sticker on the van would do no harm.

For more on van tests, go to fleetnews.co.uk/ fleetvan/mots

3% 22%

Never How often do your vans fail MOT 1st time?

44%

2 years 3 years 4 years

29.6%

Occasionally Frequently

31%

No – we service our vans more regularly

1 year (0%) 14.8%

Rarely

1.1%

1.7%

How long do you typically keep your vans?

20% No

80% Yes

I don’t check. I’m happy to submit and fix any items it fails on

7%

Do you inspect your vans at any time other than when they are serviced?

failure rate for vehicles going through Class 7 MOT first time

I check the obvious things before sending but I’m not too worried if it fails

87%

5% No

95% Yes

50%

I see it as an opportunity to present my vehicles in the best light and prepare accordingly

5%

Do your drivers carry out pre-use defect checks?

5 years More than 5 years

16 February 2015 fleetnews.co.uk/fleetvan

Do you stick 44.3% to the manufacturers’ service 54.5% schedule?

Yes – we usually adhere to their schedule No – we service our vans less regularly

renault.co.uk

ALL-NEW RENAULT TRAFIC. YOUR SUCCESS BOOSTER.

20

A

15

Wh

n atVa ?

WA DS R

Winner Medium Van of the Year

Visit renault.co.uk/business or call the Renault Business Team on 0800 040 7344.

• Model shown Renault Trafic SL27 Business+ dCi available at £204.95 per month* • Formula One inspired ENERGY engines with fuel economy of up to 47.9mpg combined** • Range available from £199.95 per month on contract hire

TRUsT EURopE’s No.1 VAN mANUFACTURER

BUSINESS USERS ONLY. *Model shown: Renault Trafic SL27 Business + dCi from £24,699 inc. VAT. Finance provided by RCI Financial Services Limited, PO Box 149, Watford WD17 1FJ. Subject to status. Guarantees and indemnities may be required. Terms and Conditions apply. Business contract hire payment based on 3 months advance payment at £614.85 followed by 35 monthly payments at £204.95. Price excludes metallic paint, delivery and dealer related charges and based on 10,000 miles per annum. Prices exclusive of VAT unless otherwise indicated. You will not own the vehicle. Offer cannot be used with other schemes or finance offers and are available on Trafic until 31 March 2015 (orders). **EU Directive and Regulation 692/2008 test environment figures. Fuel consumption and CO2 may vary according to driving style, road conditions and other factors.

in sigh t: ec o s ta r s

Eco Stars could deliver at least 5% saving on fuel the fleet recognition scheme is helping hundreds of companies to reduce their fuel bill and co2 emissions through star rating and efficiency road mapping.

By John Charles an fleet operators could improve their fuel economy by at least 5% and reduce their annual co2 by six tonnes per year by joining the eco stars fleet recognition scheme.

More than 200 organisations, collectively operating close to 20,000 vans, hgVs, buses and coaches, have already made significant savings thanks to the scheme. construction company hW Wilson, for example, has achieved a 17% fuel saving since joining the scheme two years ago (see case study opposite). the scheme, which is free to join, is currently being run in 12 local authority areas (south Yorkshire, mid-Devon, nottingham, edinburgh, thurrock, Falkirk, York, Dundee, Warrington, north Lanarkshire, sefton and Fife). schemes operated by councils covering glasgow and south Lanarkshire are due to launch in early 2015, with more in the pipeline. additionally, some schemes are diversifying to include taxis and private hire vehicles.

V

HoW it WorKs on joining, fleets are awarded an eco star rating – ranging from one to five stars – based on an assessment of their current operational and environmental performance. assessment is based on six areas: fleet composition, fuel management, driver skills development, vehicle specification and preventative maintenance, it support systems and performance monitoring and management. those six areas cover best practice initiatives such as monitoring fuel use and raising fuel efficiency awareness with drivers (including training in safe and fuel efficient driving), using wholelife costs when selecting vehicles, operating a robust service and maintenance programme (including regular tyre inspections), utilising routing and scheduling systems to better manage journeys and telematics to monitor driver and vehicle performance, and the use of key performance indicators to record and report driver and vehicle efficiency improvements.

Fleet managers are then provided with a ‘road map’ that outlines the consultants’ findings together with tailor-made advice to help improve efficiencies and progress via assessment up the eco stars ladder to hopefully ultimately achieve a five-star ranking.

‘real WiN-WiN’ scheme manager ann Beddoes, from Barnsley Metropolitan Borough council in south Yorkshire where the initiative originated, describes eco stars as a “real win-win”. she says: “From a local authority perspective, eco stars can have a direct impact on reducing vehicle emissions, and

18 February 2015 fleetnews.co.uk/fleetvan

hence local air quality – and from an operator’s standpoint, they gain independent advice about how they can improve their fleet efficiency, reducing fuel consumption, and ultimately influencing their bottom line. “another real benefit of the scheme is that it opens a two-way communication channel between them and local councils which didn’t really exist before.” the scheme does not adopt a ‘one size fits all approach’ – what is recommended for one member can be quite different from another, according to Beddoes.

sMes see BiGGest BeNeFit

17%

fuel saving achieved by HW Wilson since joining Eco Stars scheme

20,000 vehicles operated by Eco Stars members

across the local authorities, eco star members include some of Britain’s best known companies such as: alliance Boots, amey, asda, Dairy crest, DhL, greggs, Morrisons, next, sainsbury’s, United Biscuits. a number of public sector organisations have also joined, including south Yorkshire Police, which in 2014 became the first constabulary to join. however, consultancy firm transport and travel research (ttr), which manages eco stars on behalf of local authorities, believes that some of the largest operating efficiency improvements generating financial savings and environmental benefits can come from smaller fleets (see case studies). that’s because large well-known organisations, which have professional fleet managers, have almost invariably introduced many recommended best practice policies and procedures.

Morag White, eco stars’ field consultant for the north, says: “often the use of vans and fuel is perceived to just be a necessary cost as part of the day-to-day business rather than an opportunity to adopt best practice. ”For organisations that operate a fleet which isn’t core to their business, it’s likely to be a cost rather than a revenue generator. however, it is amazing how much companies spend on vehicles and fuel without considering how these can be reduced through some planning and management. this is where eco stars can come in by helping to support when fleet management is not the primary task.

“There are 3.5 million white vans travelling around the UK, covering almost 10,000 miles each year – that’s a lot of impact on air quality”

Case study: HW WilsoN Fleet size: 13 vans Joined Eco Stars: Two years ago Rating when joined: One star Result: 17% fuel saving

“there are 3.5 million white vans travelling around the UK and on average they travel almost 10,000 miles each year – that’s a lot of potential impact on local air quality. “eco stars can support them in delivering a more sustainable future.”

Beddoes adds: “We’re currently working on a long termvision for eco stars, given the recent increase in scheme numbers.”

Future funding is also being investigated as part of the long-term vision with the european Union having contributed to the setting up of the south Yorkshire and edinburgh schemes as well as to schemes elsewhere in europe.

For more on fleets and the environment, visit: fleetnews.co.uk/ environment

Construction company HW Wilson initially received the lowest Eco Stars rating due to its “relatively poor vehicle performance and a simple lack of records”, according to the TTR assessor.

Following fleet assessment, the company was provided with an improvement road map that included a spreadsheet to monitor individual vehicle fuel usage.

Data recorded over six months highlighted two key issues: ■ Driving style contributed to poor fuel efficiency.

■ Vans were often loaded to full capacity rather than just carrying tools and equipment needed on a per day basis thus unnecessarily increasing fuel consumption.

Philip Pearson, director of HW Wilson, says: “It was a bit of an eye-opener when we first started monitoring our vehicles. We hadn’t realised how much our actions impacted on fuel consumption. Using the spreadsheet gave us vital information to help improve efficiency and assist with buying decisions of vehicles due for renewal.”

More recently, vans have been fitted with trackers to ensure direct route optimisation between locations, delivering further fuel savings with employee awareness boosted by league tables highlighting driver efficiency.

Van sharing has also been introduced.

What’s more, an unexpected benefit, says Pearson, is that the company is now able to be more competitive with job quotes as mileage and fuel usage can be more accurately gauged.

He says: “Our fuel saving was 12% in year one and we have improved that by a further 5% in the second year.

That has meant we have cut our fuel bill by more than £2,000 enabling us to be more competitive and that is helping win business.”

Pearson concludes: “Our one star rating is just a start.

We are seeing reductions in fuel costs, but we’ve a long way to go. We would recommend Eco Stars to any small business that operates vehicles.

“Getting free advice from the industry experts gives access to some of the fleet management techniques that the ‘big boys’ use – other businesses will definitely reduce their fuel consumption and save money just as we have.”

The company is due to be re-assessed early in 2015 and is hopeful that the initiatives introduced and benefits seen will deliver a higher star rating.

fleetnews.co.uk/fleetvan February 2015 19

Fiat Professional with

NEW DOBLÒ CARGO. EVERYTHING STARTS FROM YOU. MP3 RADIO & BLUETOOTH

NOISE REDUCTION

BEST IN CLASS CARGO CAPACITY BI-LINK REAR SUSPENSION

MORE FUNCTIONALITY with the best cargo capacity and payload in its category. MORE PERFORMANCE with exclusive bi-link suspension for best drivability, improved engine flexibility and higher torque response. MORE VALUE with up to 15% fuel consumption saving with EcoJet*.

Explore the full range at www.fiatprofessional.co.uk

NEW DOBLÒ CARGO. A BETTER WAY TO WORK. Fuel consumption figures for the Fiat Doblo Cargò 1.3 90 MultiJet II Euro 5+ in mpg (l/100km): Combined 56.5 (5.0) CO2 emissions 133g/km. Euro 5+ with start/stop: 58.9 (4.8), CO2 emissions 126g/km. *Fuel consumption figures for the model shown with EcoJet pack: Combined 64.2 (4.4) CO2 emissions 115g/km. Fuel consumption and CO2 figures based on standard EU tests for comparative purposes and may not reflect real driving results. Factors such as driving style, weather and road conditions may also have a significant effect on fuel consumption. CO2 figures are for comparative purposes in accordance with the VCA van CO2 & fuel consumption database.

in sigh t: ec o s ta r s

Case study: NHs FortH Valley

“The savings we make from fleet efficiencies go directly into patient care”

Fleet size: 65 commercial vehicles, almost all vans Joined Eco Stars: June 2013 Rating when joined: Three stars Result: Four star rating in May 2014

NHS Forth Valley has seen its three-star Eco Stars rating improved to four stars in a 12-month period, during which it replaced older vans with new, cleaner Euro5 emission models and rolled out telematics across part of the fleet.

The organisation provides a large number of health services to a population of almost 290,000 people across Central Scotland covered by Fife, Stirling and Clackmannanshire Councils.

Currently Eco Stars is only supported by Fife Council so only the 36 vehicles operating in that area are involved in the initiative. Vans are used for servicing the hospitals and health centres with patient meals, personal clothing, laboratory specimen collections, mail deliveries, pharmacy deliveries, waste collections and equipment deliveries.

Gerald Ferrie, transport and waste manager, says that NHS Forth Valley was keen to participate so it had a benchmark to work against as it “followed Eco Stars recommendations to improve our fleet efficiency”.

That strategy was rewarded with NHS Forth Valley’s reassessment to a four-star rating last year. That was recognition of the older vans being replaced, but Ferrie

Case study: eVolVe FaCility serViCes Fleet size: 230 vans Joined Eco Stars: May 2014 Rating when joined: Four stars Result: 10% fuel saving

Evolve Facility Services has achieved a 10% fuel saving since joining Sefton Council’s Eco Stars scheme.

The company, which provides in-house repairs and maintenance to 30,000 properties across Merseyside and Greater Manchester, had already recognised the importance of being able to achieve efficient vehicle planning and how driving behaviour could influence the bottom line as it had introduced telematics to the fleet in 2012.

Brian Gates, community development manager at Evolve Facility Services, says: “Telematics helped the business understand how the vans were being used, and led to an improvement in the deployment of vehicles and development in the driving skills of trades people.”

For example, as part of an operative’s induction into the business, their driving skills are assessed before they are allowed to get behind the wheel of a company vehicle.

Last year the business focused on bedding in the telematics system, understanding data and coaching drivers on what was expected of them, which helped deliver a 10% fuel saving.

says the single biggest change was the introduction of telematics to almost half the fleet on a 12-month pilot.

He says: “These electronic devices help us to manage risk by monitoring the speed and driving patterns of vehicles. This information is also making a tremendous difference to fuel management and driver behaviour. The savings we make from fleet efficiencies go directly into patient care.”

With the pilot – which has also highlighted the amount of time vehicles spend idling and thus wasting fuel – nearing its conclusion, Ferrie says: “We are hopeful that after a review and assessment it will be possible to increase the proportion of vehicles which are fitted.”

NHS Forth Valley has also recently started to allow drivers to access their own information from the telematics system with Ferrie currently monitoring and collecting feedback. He says: “I believe it is a good way to ensure drivers feel part of the process and are included in the drive for better efficiency.”

Ferrie hopes other local authorities will join the Eco Stars scheme – including Stirling and Clackmannanshire Councils. He is calling on other public and private sector organisations to become involved.

“We were provided with some fantastic guidance that has paid off in a short period of time” Brian Gates, community development manager, Evolve Facility Services

230

vans in Evolve Facility Services’ fleet

Gerald Ferrie, transport and waste manager, NHS Forth Valley

290,000 population served by NHS Forth Valley’s fleet

Telematics reports are scrutinised with a focus on speeding, heavy braking and routes taken by drivers to specific jobs. The net result has been an increase in productivity and fewer speeding tickets. Gates says: “Our next step is to include driving style targets into our existing appraisal and performance management system.”

Of Eco Stars, Gates says: “We had some fantastic guidance that has paid off quickly, such as the fuel saving.

After implementing practices such as weekly vehicle checks ensuring tyres are correctly inflated etc., we have introduced a ‘WOW (Warehouse On Wheels) Van’.”

Previously staff would return to depots to collect materials, but now the ‘WOW van’ travels to where people are working, replenishing stock as required.

He adds: “Eco Stars has helped to demonstrate that there is a lot more we can do, especially in helping getting the most out of our operatives who are not primarily focused on how they drive.”

fleetnews.co.uk/fleetvan February 2015 21

A Daimler Brand

Sprinter.

The Original Pioneer Discover the Sprinter. www.mbvans.co.uk/fleet

P r OF Il e: W e S T MIdl A Nd S A MBul A NCe Ser v ICe

‘Gear everything to reducing downtime’ Tony Page’s private industry background has enabled him to initiate fresh ideas at the West Midlands Ambulance Service

By John Charles inimising vehicle downtime to ensure patient care is delivered as effectively and efficiently as possible within ever-tightening financial constraints is the absolute focus of the award-winning fleet team at West Midlands Ambulance Service NHS Foundation Trust (WMAS).

The Service serves a population of 5.36 million people covering an area of more than 5,000 square miles across Shropshire, Herefordshire, Worcestershire, Staffordshire, Warwickshire, Coventry, Birmingham and the Black Country conurbation.

Operational vehicle downtime has already been reduced by two-thirds following the Trust-wide move to a ‘make ready operating model’ that sees more than 550 blue light vehicles operating out of 16 newly-opened fleet preparation centres.

Tony Page was appointed general manager, fleet services, at the Trust two years ago and brought with him 30 years of fleet experience gathered in a number of large private sector organisations, latterly managing the ground fleet at airline BMI. In addition to the blue light fleet, Page is also responsible for managing 226 Passenger Transport Service vehicles and a further 350 support vehicles including vans used for courier services, transporting clinical waste and medical equipment.

Although the ‘make ready’ operating model was already being introduced prior to the WMAS being named van fleet of the year – public sector and blue light in the 2014 Fleet Van Awards, Page says: “My background allowed me to look at the operation through a commercial pair of eyes, which has brought a fresh approach to the whole of fleet services.

“We have encouraged and developed a more commercial approach to how the fleet service operates.”

Critically, there is a significant emphasis on data-driven decision making. Operational areas are monitored and benchmarked across a raft of fleet performance metrics – vehicle turnaround time in respect of scheduled and unscheduled events and pence-per-mile running costs – enabling expenditure to be further reduced, improved procurement and realistic budget-setting alongside effective and efficient maintenance programmes.

Improved procurement has, for example, included the introduction of 4x4 ambulances for operation in more remote areas which can negate the need to call in an air ambulance thus not diverting a valuable resource away from other potentially more significant requirements.

WMAS has also introduced a new fleet management software system and put into place the ongoing introduction of in-vehicle telematics and closed-circuit television.

By mid-March, 101 new ambulances and two driver training units will be equipped and on the road, enabling further detailed vehicle analysis which, says Page, has further focused the fleet operation on “data driven decision-making”.

M

24 February 2015 fleetnews.co.uk/fleetvan

Preaching a team ethic – Page leads a 58-strong fleet department composed of workshop and administration staff and management colleagues – he says: “I have implemented a culture throughout the department of individual accountability for each area of responsibility, not in a ‘blame culture’ way, but in positive tandem with a ‘don’t let the team down‘ mentality.

“This has very much been embraced by the workforce, providing them with an opportunity to widen their scope and have significantly more involvement and input into decisions that affect their areas of expertise. By doing so, interest in the results of their individual actions on the team as a whole has increased dramatically.”

Crucially, he says, the Trust’s hierarchy recognises the importance of the fleet service allied to the excellence of clinical staff to the delivery of patient care. “everything is geared to reducing vehicle off-road time,” says Page.

However, he adds: “While ensuring vehicles are on the road we must ensure the costs for doing so are within evertightening budgets.”

That is why Page continues to “pedal harder than ever” in terms of working with the fleet team, colleagues across the other 12 uK ambulance services and supplying partners, to deliver innovative cost-saving solutions.

Although the fleet management function is now based in Birmingham, there is devolved responsibility across the 16 hubs – servicing a network of more than 90 community ambulance stations – where workshop staff work in tandem with 125 ambulance fleet attendants (AFAs) Historically, clinically trained ambulance crews would spend the first part of their shift cleaning and restocking vehicles, fuelling and undertaking a series of pre-departure roadworthiness checks. under the ‘make ready’ operating model, such tasks are performed by the AFAs, leaving highly-skilled, clinically trained crews to report for duty and immediately attend to frontline responsibilities. “Operational downtime has been reduced significantly as vehicles are maintained on a proactive rather than reactive basis,” says Page. each purposebuilt hub has a workshop that can react immediately to rectify defects highlighted by the AFAs, thereby maximising ambulance availability and minimising breakdowns.

Operational downtime has been reduced significantly at West Midlands Ambulance Service NHS Trust

“We have encouraged and developed a more commercial approach to how the fleet service operates” Tony Page, general manager, fleet services, West Midlands Ambulance Service NHS Trust

Award has given staff a ‘huge moral boost’

What’s more, the combination of centralised fleet management and use of a fleet software system accessible by staff, from mechanics to management across all locations, has already delivered cost and efficiency savings with, says Page, “more to come”.

For example: ■ Spare parts holding has been cut by over half with better management.

■ Fitting alloy wheels to ambulances has enabled the frequency of replacing front brake pads and discs to be reduced, extending life from 6,000 to 9,000 miles, saving about £40,000 in parts and more than 3,500 man hours annually.

Additionally, liaising closely with manufacturer partners – Fiat is the Service’s ambulance provider with Peugeot, Citroën, Škoda, Honda and BMW vehicles also on the operational and support fleet – has seen new ramps for patient access designed that have eradicated component failures thus reducing replacement parts spend by £100,000 with a further saving expected in 2014/15. utilising the way aircraft maintenance is managed, the Service’s fleet management system has split vehicles into 26

101

ambulances to be fitted with telematics and closed-circuit television

£40k

amount saved in parts by fitting alloy wheels

For more case studies, visit:fleetnews.co.uk/ vans/case-studies/

“maintenance zones” – clutch, brakes, ramps etc., to identify the highest off-road vehicle expenditure.

As well as identifying ramp component failure – the largest off-road vehicle expenditure – solutions have been introduced to rear door cracking at hinge points on ambulances, a more robust opening mechanism on side doors to prevent failure, and a one-piece scuttle panel under the windscreen replacing a two-part version to prevent water ingress to the engine bay causing mechanical failures. “vehicle off-road time has significantly reduced,” says Page, proudly, while also pointing out that WMAS has the lowest accident frequency of any of the uK’s ambulance services.

All vehicles – currently largely funded via operating lease, although financing methods are continually kept under review – across the diesel-only fleet are replaced on a fiveyear cycle.

It is, believes Page, a combination of the newness of models, coupled with a robust maintenance programme allied to a first class driver training programme, that means employees look after vehicles. looking forward, there remains much to do, with the focus remaining on reducing cost, according to Page: ■ Work with converters is taking place to reduce vehicle weight, including via the introduction of easy clean cabinets that in turn will deliver fuel savings ■ electric vehicles have been trialled and zero emission cars and vans will be introduced to the support fleet in 2015 with potentially more to follow ■ The introduction of in-vehicle telematics will deliver “useable data” that can be investigated, such as vehicle idling and incident investigation ■ The potential building of ambulances incorporating solar charging panels on roofs to reduce the reliance on trickle charging auxiliary batteries would reduce the need for the engine to be run whilst on standby waiting for emergency calls.

A further initiative has seen WMAS expand fuel bunkering with the opening of the hubs delivering a 6p a litre saving, compared with forecourt prices, with only 20% of diesel fuel now bought at retail outlets.

With annual fleet mileage rising – 13.4 million miles in 2013/14, estimated to reach 14.8 million miles for the frontline fleet in 2014/15 with WMAS handling more than one million incidents – fuel bunkering is saving around £150,000 a year, thus helping to fund the additional mileage.

The raft of innovations led by the ‘make ready operating model’ contributed towards what the Fleet Van Awards’ judges called “highly innovative and original thinking”.

Page says winning the award has given a “huge moral boost” to the entire fleet services department: “We have introduced a huge amount of change in the last two years and winning the award validates what we are doing.

“The team was very proud to win, but the hard work continues to deliver further savings so the maximum amount of budget goes into frontline care.”

fleetnews.co.uk/fleetvan February 2015 25

Advertisement feature

Used LCV values reach new record levels verage values for light commercial vehicles rose in December, as the on-going shortage of good quality used vans, combined with the shorter trading period in the run-up to Christmas, kept values high.

The average value of a van sold at BCA in December was £5,870, the highest monthly value on record.

Demand remained strong for any vehicle offered with the combination of a good colour, specification and condition and interest continued for panel vans suitable for parcel delivery and courier work well into December.

Fleet & lease values increased over the month, while part-exchange and nearly new values were static. Year-on-year values remain well ahead by £559 (10.5%), with age and mileage falling. Performance against CAP was down by three quarters of a point compared to 2013.

BCA’s head of commercial vehicles, Duncan Ward, commented: “Professional buyers and end users alike competed strongly for the best quality stock on offer, with values for the best presented vans typically outstripping price guide expectations by some margin. For the third month running, year-on-year values across the board were up by around 10% as the relative shortage of retail quality LCVs continues.

“Looking ahead, we expect this general pattern to be maintained in 2015 while stock remains in short supply. With the parcel

A

Demand remained strong for any vehicle offered with the combination of a good colour, specification and condition delivery and courier sector growing rapidly as the digital shopping revolution continues, we expect values for panel vans of all types and capacities to remain at a high level.

“The pre-Budget announcement suggested that major infrastructure projects, road network improvement schemes and house building projects remain on the table, and this will be a boost for the civil engineering and construction industries.”

Fleet & lease Values for fleet and lease LCVs averaged £6,859 in December – the second highest monthly value on record and an increase of

All LCVs 2012-2014 £6,000

£5,000

£279 (4.2%) over November’s value. CAP performance averaged 100.3% and retained value against Manufacturer Recommended Price increased to 38.38%. Year-on-year, values were up by £190 or 2.8%.

Part-exchange Part-exchange LCV values remained at near record levels in December, falling back by £10 from November’s figure and just £27 behind the all-time high figure recorded in October at £3,848.

December’s figure was the third highest monthly average value recorded in this sector since Pulse began reporting. CAP average comparisons were static at 105.4% and continue to outperform the fleet & lease sector by a considerable margin.

Year-on-year values remain ahead by £125 or 3.3%, with the average van being four months older and having a 4,000 higher mileage.

Nearly-new

£4,000

Dec

Oct

Nov

Sep

Aug

Jun

July

Apl

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Aug

Jun

July

Apl

May

Mar

Jan

Feb

Dec

Nov

£3,000

Nearly-new LCV values averaged £13,196 in December, virtually static over the month although CAP comparisons fell by nearly three points to 96.3%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.

The UK and Europe’s largest used vehicle marketplace

Log on to bca.co.uk or call 0844 875 3480

rem a rk e t ing

Auction houses see record values in used van sales High values in December expected to continue with strong demand for good quality vehicles and the best vans exceeding price guide expectations

By Trevor Gehlcken s Britain’s economy continues to recover and jobless figures go on falling, new records are being created time and time again at auctions in the light commercial vehicle sector. all the major auction houses recorded a rise in values in December, some of which is down to the chronic shortage of vans three- to five-years-old which are being offered for sale. the average value of a van sold at British Car auctions (BCa) in December was £5,870, the highest monthly average on record. Demand remained strong for any vehicle offered with the combination of a good colour, specification and condition, and interest continued for panel vans suitable for parcel delivery and courier work well into December.

Fleet and lease values increased over the month, while part-exchange and nearly-new values were static. Year-onyear values remain well ahead by £559 (10.5%), with age and mileage falling. Performance against CaP was down by three quarters of a point compared to 2013.

BCa’s head of commercial vehicles, Duncan Ward, says: “Professional buyers and end users alike competed strongly for the best quality stock on offer, with values for the bestpresented vans typically outstripping price guide expectations by some margin. For the third month running, year-onyear values across the board were up by around 10% as the relative shortage of retail quality LCVs continues.

A

£5,870 Average value of vans sold at BCA in December 2014

£310

increase in average value of used vans sold at Manheim Auctions over previous year

“Looking ahead, we expect this general pattern to be maintained in 2015 while stock remains in short supply. With the parcel delivery and courier sector growing rapidly as the digital shopping revolution continues, we expect values for panel vans of all types and capacities to remain at a high level. the pre-budget announcement suggested that major infrastructure projects, road network improvement schemes and house building projects remain on the table and this will be a boost for the civil engineering and construction industries.

“Supply remains an issue and while low mileage, clean examples remain hard to find, buyers are happy to bid strongly on higher mileage or older vehicles if the condition and specification is good. However, we are seeing greater numbers of hard-worked ex-corporate stock reaching the market in often quite poor condition – these vehicles need to be properly appraised and realistically valued to attract the buyers. Vendors should be aware that vehicles presented for sale with damage, in poor colours or with excessive mileage need to be realistically valued if they are to sell first time.” at manheim auctions, average values in December rose by £310 over the previous year. While there has been an increase in the desirable three- to five-year-old stock, as a percentage of the total mix, between December 2013 and December 2014, there was still a large volume of five-year-old plus vehicles in the market.

fleetnews.co.uk/fleetvan February 2015 27

rem a rk e t ing matthew Davock, head of light commercial vehicles at manheim, says: “as we entered December, trade sentiment was incredibly positive. Vendors were selling right up to Christmas eve, with many fantastic results being achieved. this is in contrast to the usual seasonal patterns where we’d expect a drop-off towards the tail-end of the year, especially with the seasonal de-fleet numbers introducing more volume into the market. “the first two weeks of January have rallied and surpassed all expectations. the seasonal de-fleet from daily rental and flexi-rent fleets has introduced a welcome tranche of ‘late and low’ product. attendances have broken all historic records, with the first sale at Colchester attracting 257 physical and 285 online buyers. many corporate sale sections were enjoying between 90% and 100% conversions.”

However, James Davis, director of commercial vehicles at manheim, warns that hammer prices have been affected by defleet increases in older vans in some segments – notably small panel vans and large panel vans over three tonnes.

Consequently, he says: “We believe 2015 will be the year of transition, leading to a return to normality for the van market in 2016.” the national association of motor auctions (nama) recorded impressive increases among its members. alex Wright, chairman of nama’s commercial vehicle group, comments: “With the LCV market up to a recordbreaking £5,091 average price achieved, boosted by a reduction of over six-year-old vans, this trend in 2014 gives us a clear indication that sales of older vans from the recession have finally washed through. “the month of December is typically a quiet one due to seasonal trend and so it is encouraging to see that sales volumes were up 17% compared to December 2013.

“Here at nama we are confident that 2015 will be a highly successful year for the commercial vehicle market.” andy Brown, managing director of CD auction group, agrees, saying that the wholesale used van market is “flying” with good values and high conversion rates achieved. He adds that there are no “serious threats” on the horizon and forecasts that trend to continue with an easing during the year as supply picks up.

“Here at NAMA we are confident that 2015 will be a highly successful year for the commercial vehicle market” Alex Wright, chairman of NAMA’s commercial vehicle group

100%

conversion rates enjoyed by some coporate sales sections in 2014

17%

increase in December sales, compared with 2013

For more on van sales, visit fleetnews.co.uk/ vans/fleet-van-sales

Shoreham Vehicle auctions is predicting that, whatever happens to the Uk economy and new van market in 2015, the used market will remain in a “win-win” position. if the economy slows down and companies start to feel the pinch, it is likely that the majority of Smes which buy the majority of used vans in the Uk will consider buying a model of five years of age and older. this will cause a strong demand for used vans and this will, in all likelihood, mean that prices are likely to remain at their current record highs. if the economy continues to grow, Smes will look to upgrade their vehicles with newer sub-five-year-old vans and potentially will buy more than one to meet the increased demand for their products. this market dynamic will ensure a high demand for used vans and therefore high prices. even the Smes that can afford a new van generally buy a used van and invest the rest of their cash into their business, while many who would like a new van possibly cannot get finance approval, so have to buy a used vehicle. “the used market is in a very unique position in 2015 and whatever happens to the economy, used prices should remain at or close to their current record high,” says Shoreham’s managing director alex Wright. “the recent rise in new van sales in 2013 and 2014 purchased on a typical five year replacement cycle will only impact the used market in the form of higher volumes of used vans in 2018 and beyond. “in the meantime, used volumes coming back from the major fleets are manageable and so will not compromise values,” he adds.

Impact oF general electIon on values The election could unsettle businesses and possibly lead them to delay their purchase decisions which does little to support residual values. George Alexander, chief editor, Glass’s commercial vehicle guide, warns that not all fleet commentators believe that values will continue to be strong this year.

“Following a change of government or a result that necessitates a coalition between two or more parties in order to form a mandate, any U-turn in the direction of economic policy would undoubtedly prove concerning to many SMEs,” he says. “Hopefully, the strength of the domestic economy with a stable government will see us through the coming 12 months. Yet, when it comes to prices for used LCVs, it will be the balance between supply

and demand that determines the outcome.”

While anticipating reductions in LCV prices in 2015, Alexander says: “The size of these falls will largely be dictated by the underlying health of the wider economy and the size of discounts being offered by dealers on new vans.

“Any price slippage will be determined by just how reckless producers are in what additional new stock they bring into the UK.” John Watts, senior editor, CAP Red Book, is forecasting values to remain above trend for at least the first quarter, provided economic indicators remain positive.

He agrees Eurozone economic performance is a “significant influencing factor”. But, sharing Alexander’s concerns, he says: “A period of uncertainty both before, and immediately after, May’s

28 February 2015 fleetnews.co.uk/fleetvan

Unstable government: the result of the election could affect values

“The election is set to unsettle businesses” George Alexander, chief editor, Glass’s

election may emerge that could dampen market appetite and this, coupled with a probable increase in used stock volumes, is likely to lead to a general easing of values.” But, he adds: “The reduction is unlikely to be drastic and, overall, used values are likely to remain above the long term trend for most of 2015.”

Available now

To secure your copy of the latest insight into the 他eet market, contact Sewells Research & Insight on tel: 01733 468307, email sewells@bauermedia.co.uk or visit www.sewells.co.uk.

Sp oT L IgH T: I v ec o

‘We expect Daily sales to rise 20-25% this year’ Iveco boss Bob Lowden wants to see growth from small fleets and retail buyers

By Trevor Gehlcken t first glance, Iveco had a terrible 2014 in the light commercial vehicle market, with sales down 15% in a market that was up 19%.

But simple statistics do not tell the whole story – and Iveco’s new managing director Bob Lowden is keen to reveal the full picture.

In an exclusive interview with Fleet Van just three weeks after taking over the helm in the UK, Lowden said the reason for the fall in sales was not that fleets are failing to buy Iveco products but was instead due to problems with the changeover from old Daily to the new one last autumn.

Lowden says: “The fall in yearly sales sounds worse than it really is. We had problems with the phase-out/phase-in of the old and new Daily and we just didn’t have any to sell at one point. In fact we lost the equivalent of a whole month’s sales.

“But if you look at the December 2014 figures, when the new Daily was fully available, our sales were 17% up. Now this brand new model is available, we expect Daily sales to rise by 20-25% in the coming year.”

Lowden has just returned to Britain after a spell heading up Iveco’s business in South Africa and it would be difficult to imagine a boss who has more knowledge of the fleet market and its needs and wants.

He has an engineering background but also holds a degree

A

“If you look at our December figures, which is when the new Daily became available, our sales were 17% up” Bob Lowden, managing director, Iveco

in business and economics. Add to that list a former career running a truck dealership in the north east of england, and working for Iveco in several different senior roles since 1990, and Lowden’s credentials become clear.

He rejoins the Iveco team at a crucial time, with the launch of the new Daily, which has just been voted International van of the Year.

The new van features a host of improvements such as a more functional and better quality cab, redesigned exterior, engines that offer up to 5.5% better fuel economy and improved ride and handling.

All new bosses are keen to stamp their mark on the business as quickly as possible, and Lowden isn’t any different. He has plans afoot to promote Daily sales to a wider audience.

He says: “I am pretty satisfied with the offerings we give to big fleets. As we are a truck manufacturer, we offer truck levels of aftersales service to van buyers, such as 24/7 servicing and an unrivalled breakdown service using our own dedicated repair men. But I do feel that we need a greater presence in the high street, to attract smaller fleets and retail buyers. We want to make Daily the choice of van for a lot more people.”

The way Lowden intends to carry out this plan is to extend the number of outlets at which the Daily is sold. At present there are 63 dealers (plus a further 30 service points which

new electric daily: ‘payback within six or seven years’ A brand new Daily electric van is set to be launched in the UK later this year – and Iveco bosses believe that this vehicle may finally bring zero emissions technology into the mainstream in the heavy van sector.

Iveco has been selling the electric Daily for several years now and while this van has been reasonably successful in Europe, the firm has not sold a single

120

maximum range of the new electric Daily

Martin Flach: ‘We believe the new van will be more attractive’

30 February 2015 fleetnews.co.uk/fleetvan

model in England. But, says product director Martin Flach, things are about to change: “We have invested heavily in electric technology but this was very much for the long term – we didn’t see it as a short-term business opportunity. We have learned a lot from our past efforts and this new van should really bring the Daily electric out of the shadows and into the mainstream.”

The Daily is new from the nuts and bolts up. And the electric variant now has a longer range, up from 80 to 120 miles. It can also now be fast-charged – say, during a lunch break. It will not suffer any payload penalties over the diesel versions, despite carrying heavy batteries.

Flach says: “We believe these improvements will make this van more attractive to a lot more buyers and we are already talking to councils and parcel delivery firms in London with a view to putting some examples on fleet.”

One of the problems is that an electric Daily costs around £50,000 more to buy than a diesel one. But despite this massive difference in front-end costs, Flach still believes it can make economic sense: “Most people who choose this van will do so because they want to be seen to be green but, even so, if the vans are used in London on a daily basis, we reckon payback will come within six or seven years. As vans like this won’t be doing huge mileages, we think after that time they will still be in a very saleable condition.”

Bob Lowden: big plans to extend availability of the new Daily

do not sell vans). He hopes to open a further 10-15 sales/ service outlets in 2015 and more in the coming years.

“Some of these could be among the service outlets and we are also looking for entrepreneurs who feel they could make a business by setting up a Daily centre. Small fleets and retail buyers will not travel long distances to buy vans and have them serviced and we simply have to have more centres,” says Lowden.

All well and good, but can these extra outlets offer the high levels of aftercare that are available at present?

Lowden says: “It just won’t be possible to do this at all the centres, but we believe that smaller outfits don’t expect quite so much anyway. We feel they will be quite happy with what we have to offer.” one of Iveco’s perennial problems is that fact that it only has one van on sale below 3.5 tonnes, which means that fleet operators who want a solus deal with various different sized vans can’t be catered for.

So, just how big a problem is this for Iveco?

Lowden: “We don’t really see this as a problem at all. Yes, we can’t cater for the smaller end of the market, but at the other end we offer vehicles up to 44 tonnes and there are many fleets out there who want solus deals starting at 3.5 tonnes and upwards, which of course we can cater for. only one other van manufacturer can offer a deal like that.” one thing that has puzzled many industry pundits is why Iveco has not maintained closer ties with Fiat – after all they are owned by the same company. Such a move would mean the firm could offer solus deals on cars, vans and trucks of every size.

But Lowden firmly rules out any closer tie-up in the future.

In fact, 18 months ago Fiat and Iveco were placed in separate

The new Iveco Daily – voted International Van of the Year

For more case studies, visit: fleetnews.co.uk/ vans/case-studies/

hands. Fiat has joined with chrysler to form a car and van division, while Iveco is now part of cNH Industrial, which includes the case and New Holland agricultural brands.

Lowden says: “We wouldn’t want Fiat car dealers to sell and service our vans as we don’t believe they have the right business mentality to do so. As for Fiat professional, they have teamed up with DAF to share some dealerships and as DAF is one of our main rivals we wouldn’t want to share our business with them.”

fleetnews.co.uk/fleetvan February 2015 31

IN SIGH T: F UNDING

Fleets switch from outri purchase to contract hir Change reflects the need for companies to retain cash for investment and product improvement, allowing a focus on core business

OUTRIGHT PURCHASE

By Andrew Ryan ash is king, goes the saying, and for many years this was the dominant way for fleets to acquire new vans.

However, the recession has put a different slant on the phrase. Companies found that retaining cash as working capital to invest in their core business was more beneficial to them.

This helped steer them toward acquiring vans through contract hire; so much so that it has now become the main funding method among large fleets.

Sewells Research and Insight data shows that in 2010, 35% of companies in the Fleet 200 – the Fleet News listing of 200 of the country’s largest fleets – used contract hire as their main form of funding commercial vehicles, compared with 43% for outright purchase.

However, last year’s figures report that contract hire was the main form for 49% of the fleets, while outright purchase had fallen to 37%.

The main reasons for the shift are simple, says David Rawlings, director of BCF Wessex Consultants: the desire of companies to retain cash to invest in their businesses and the improvement in products offered by leasing companies.

“Traditionally, companies thought they needed a lot of flexibility with their vans over issues such as how long they kept a vehicle for and what they did with it, so it was just easier to pay cash,” he says.

C

32 February 2015 fleetnews.co.uk/fleetvan

49% of Fleet200 operators now use contract hire as their main form of van funding

“But we are now eight years since the beginning of the recession and a lot of businesses are waking up to the fact that cash retained is king and that there are some very good contract hire and leasing deals for vans. If fleets work well with their leasing company they can still keep that flexibility, getting all they want and probably more without the expense of that cash drain on their working capital.”

He says leasing companies are now offering products with a greater degree of sophistication: “It’s more of a partnership arrangement than what used to be a ‘pile them high and sell them cheap’ arrangement. The leasing companies are making sure the vans are very much fit for use, that they are maintained, safe and fitted out inside, that the drivers are

“We’ve witnessed a steady increase in demand for alternative funding for commercial vehicles and a perceptible move away from outright purchase” Mark Lovett, head of commercial vehicles at LeasePlan

right re CONTRACT HIRE

going to like them, they are fuel efficient and technology, like tracking, can be easily fitted. It’s become a one-stop shop for keeping what is probably the most important part of your business going.”

Other benefits of leasing over outright purchase include fixed monthly expenditure, with maintenance included, access to fleet professionals, management data and fleet administration, according to Mark Lovett, head of commercial vehicles at LeasePlan.

“Many clients are now not employing specialist fleet managers,” he adds. “Instead, they are looking for alternative funding options, with management support, to provide all fleet requirements in one place and one monthly invoice.”

LeasePlan’s experience of growing the number of fleets leasing commercial vehicles, instead of buying them, reflects the trends found by the Sewells research.

“We’ve witnessed a steady increase in demand for alternative funding for commercial vehicles and a perceptible move away from outright purchase,” says Lovett. “For many years, companies looking for leasing would often consider contract hire for their cars but keep the vans on outright purchase.

“This increase has come about primarily because of evergrowing demands on businesses’ cashflow, but it is also a result of companies choosing to outsource the specialist knowledge required to best run a commercial vehicle fleet.

“When cashflow is limited, businesses can ill afford to spend money in areas where financing is an option.”

PROS AND CONS OF CONTRACT HIRE OVER OUTRIGHT PURCHASE Pros ■ Fixed monthly expenditure without any unpleasant surprises ■ Choice of vehicles with maintenance included ■ Access to experienced fleet professionals ■ Access to a host of ancillary services ■ Management data ■ Utilisation of the latest telematics and vehicle off-road management systems ■ Better use of cashflow ■ Beneficial procurement rates ■ Fleet administration – management of MOTs, recalls, fines and penalties etc ■ Consultancy facilities – focusing on new products, taxation and legislation ■ Leasing company takes the residual value risk and disposes of the vehicle ■ Vehicles are ‘off balance sheet’ Cons ■ Potential of end-ofcontract charges for excess mileage ■ Potential for end-ofcontract damage charges ■ Company does not own vehicle ■ If a van is returned before end of lease, an early-termination charge may apply

For more on fleet funding, visit: fleetnews.co.uk/funding

“Leasing provides the ability to make payments over a longer period of time, without a direct impact on a business’s lending position.”

Lovett says the availability of one-stop solutions with all the management reporting in place is attractive to all businesses – large and small. “The benefit of outsourcing this element of their day-to-day business is that it allows them to get on with what they are good at,” he adds.

“There is no particular type of business that is switching to leasing. The reality is leasing can be a great option whatever the size of your business and whatever sector you operate in. Even the self-employed business owner may need to have a vehicle ready every day.

“Choosing to lease that vehicle means the business always knows what the monthly cost will be and is never at risk of having an expensive month if something goes wrong.

“Increasingly, business owners are recognising the advantage of knowing exactly what they will have to pay each month as well as having a vehicle that is fit for the job they need it to do.”

There are also further advantages, according to leasing companies, particularly if a company does not have in-house expertise.

“By taking a fully outsourced solution, businesses can reduce administration and get cost efficiencies through a leasing company’s buying power and management expertise,” says Ian Hughes, commercial director at Zenith.

“If the LCVs require a fit out (racking, livery etc.), the leasing company can manage this process with the different suppliers involved to reduce vehicle off-road time and deliver the vehicle to the customer ready to use.”

Traditionally, one concern which may have deterred fleets from leasing vans was the possibility of incurring substantial damage recharges when vehicles are returned at end-ofcontract. However, this is an issue being tackled by leasing companies. For example, Ogilvie Fleet says it has virtually eliminated customers questioning end-of-contract damage charges on leased vehicles.

YOU’VE DECIDED TO SWITCH: WHAT DO YOU DO NEXT? Any fleets considering switching to leasing from outright purchase should begin by finding a good leasing company, says David Rawlings.

“Fleet managers shouldn’t speak to just one leasing company, but to a number of them,” he says.

“Get them in, look at the whites of their eyes and ask them how they can save you money and make your fleet more efficient.

“If they can’t spend 10 minutes on the phone and if they’re not prepared to come and talk to you, look somewhere else.”

He adds: “A lot of businesses will go to their local dealer because that’s where vans are bought from, but there are 50 good leasing companies and a few hundred good brokers out there that can do them a very good alternative deal.”

Rawlings says when switching to leasing, most companies will keep hold of the vans they already own and just replace them with leased vehicles at the end of their replacement cycle.

If a company wants to generate capital for its business, either to support it through difficult times, improve their balance sheet or support growth and investment, it may be able to sell its outright purchase fleet in a sale and leaseback arrangement to generate capital.

fleetnews.co.uk/fleetvan February 2015 33

IN SIGH T: F UNDING

“I think the number of fleets leasing vehicles will continue to grow and will keep going for a while”

OUTRIGHT PURCHASE

David Rawlings, director of BCF Wessex Consultants It introduced a ‘transparency policy’ in respect of damage charges, by telling customers what they would be at the outset of the contract. They sign up to this recharge cost matrix in their master hire agreement.

These charges to return a van to the BVRLA’s fair wear and tear guidelines include £75 for door panels and front wings, £120 for side sliding doors, large side panels or bonnet, tailgate and bumpers, and £250 for a roof.

Jim Hannah, operations director at Ogilvie Fleet, says: “End-of-contract charges can be viewed as a sting in the tail by fleet managers.

They consider that they have paid the contract for the full period and don’t want to make any further payments when they return their vehicle. “Our policy of making end-ofcontract charges clear in the initial agreement makes any cost transparent to customers. Consequently they are more accepting of any damage charge if one arises.”

In the event of a charge, Ogilvie Fleet sends the vehicle appraisal document and appropriate photographs to the fleet manager. Last year, where a cost was incurred by a fleet it was accepted in 98% of cases, and in the remaining 2% – amounting to around four or five vehicles a month – Ogilvie Fleet discusses the damage charge with customers and agrees a fee acceptable to both parties.

That compares with a query/rejection rate of 44% prior to introduction of the transparency policy a decade ago.

A recent Fleet News online poll found that 20% of respondents had either recently or were now considering switching from outright purchase to lease, while 50% had not or we not thinking about the change. However, 23% said they had either switched from contract hire to outright purchase or were considering it.

So, given this mixed response, will the move towards leasing continue? Yes, says Rawlings: “I think we will see more vans being leased.

“There will be a point when it reaches mass and stops growing. But while businesses need to retain cash, contract hire opens their eyes to see what the benefits are.

“They then suddenly realise that leasing vehicles is not just about funding.”

CONTRACT HIRE VS PURCHASE

37%

38%

45%

41%

39%

40%

30%

35%

40%

43%

50%

49%

53%

60%

20% 10% 0%

2010

Contract hire

2011

2012

Outright purchase

2013

2014

Longterm trend Source: Fleet200

34 February 2015 fleetnews.co.uk/fleetvan

CASE STUDY: OPEN UNIVERSITY Switching to contract hire from outright purchase will save Open University an estimated £103,900 over five years.

Since August, the Milton Keynes-based organisation has leased its 11 vans and two minibuses on a five-year term and its three pool cars on a three-year term through Automotive Leasing following a review of funding methods.

“Traditionally, we have always outright purchased our vehicles,” says David Lewis, transport and portering manager at Open University.

“I looked at all the costs involved in operating those vehicles, then obtained quotes from leasing companies to compare the costs of contract hire and outright purchase.

“It worked out cheaper to lease rather than outright purchase and maintain the vehicles ourselves.”

He says the fleet’s maintenance costs tend to be relatively small as average mileage is low – the vans generally operate on campus or within Milton Keynes – but as this means a lot of stopstart driving, vehicles can incur a lot of wear and tear, particularly on tyres.

“In some respects there are higher costs than in vehicles that are doing significantly higher mileages,” adds Lewis.

Although cutting vehicle operating costs was the main driver of the switch in funding, it has also reduced the amount of

time Lewis spends managing the fleet, allowing him to focus more on his other responsibilities.

Among the administration removed is defleeting vans. “Previously I would obtain a minimum of three quotes from various sources and locations and I would sell the vehicle to the highest bidder to maximise the income to the university, but the leasing company looks after that now,” says Lewis. “Also, vehicle depreciation had the biggest impact on costs and leasing means that this financial risk has been taken away from us.”

The university took up an option for sale and leaseback, so Automotive Leasing purchased the vehicles, which gave a “one-off income stream coming in, which was a benefit”, says Lewis.

“It worked out cheaper to lease rather than outright purchase and maintain the vehicles ourselves” David Lewis, transport and portering manager at Open University

CONTRACT HIRE

CASE STUDY: HYDRAQUIP

DON’T FORGET THE OTHER OPTION: LONG-TERM RENTAL Fleets thinking about contract hiring vans should also consider long-term rental, says Carlos Montero, commercial director at FleetEurope. “Some fleets have opted for contract hire, but some have moved to long-term rental programmes,” he says.

“Both offer outsourced maintenance management and virtually risk-free fixed charges.

“The only downside is that damage sustained to vehicles will be recharged, usually over and above a minimum fair wear-and-tear standard.

“Depending on how hard a commercial fleet is worked in terms of mileage, fleets may choose longterm rental over leases for the associated flexibility.

“Leases, by their nature, come with penalties if returned early, whereas rental offers the fleet manager options to end the hire without penalty.

“Pro rata lease vehicles will be more cost effective and base rentals will be lower, but what price do you put on flexibility? Fleets are all very different and sometimes a mixture of the two may be required: leases for vehicles that will be core to the business or need bespoke specification, with a mix of long-term rental on more standard specified vehicles that may require flexibility in termination.”

One fleet which has switched to long-term rental is United Worldwide Logistics (UWL), a South Walesbased company with 21 light commercial vehicles.

Its high mileage requirements became a costly issue, but through a rental partnership with Northgate Vehicle Hire, it was able to remove the issue of downtime, as it is now able to add vehicles to its fleet at any time. With no ties or commitments, UWL is able to hand back the vehicles when it no longer requires them. This change improved annual cashflow by £10,000. Service and maintenance costs have been reduced by a further £10,000 per year.

Hydraquip was able to invest its working capital into funding a growth strategy after switching to leasing its vans instead of outright purchasing them.

During 2014, this helped fund four new branches to expand the growing national network.

The nationwide Hydraquip Group comprises three independent companies – Hydraquip Hose & Hydraulics and Hydraquip Braided Hose Division plus Linden Hose and Adaptors which was acquired in 2013 – providing hose solutions to a multitude of companies from sole traders to multi-national blue chip groups.

“We had previously funded vans out of our working capital, but I wanted to accelerate our growth and expand the fleet, and leasing the vehicles just seemed like a much more sensible, cost-effective way to do that,” says Duncan MacBain, managing director of Hydraquip.

“Previously we would buy a van at, let’s say, £22,000 and spend £8,000 to £8,500 kitting it out.

“I took the view that, with the cost of changing, it was probably worthwhile keeping vans on the road for a long time, so we were running them for seven, eight or nine years until they were uneconomic to repair.

“The increased maintenance needed also brought the intangible cost of vehicles being off the road, so we are

“I had the mindset that if you own something, you know where you stand” Duncan MacBain, managing director of Hydraquip going to try and keep the fleet newer and suffer less consequences of running an older fleet.”

Hydraquip has grown significantly in recent years, both organically and through the collapse of two competitors in the recession. The company currently has more than 100 light commercial vehicles, the majority of which are now leased through Ogilvie Fleet on a threeyear/120,000-mile replacement cycle.

The remainder will be replaced with leased vehicles when they are defleeted.

MacBain adds: “I used to be quite against leasing vehicles. I had the mindset that if you own something, you know where you stand, but in reality when running a business it doesn’t really matter whether you own something or lease it – it’s what you do with that asset to make money.”

fleetnews.co.uk/fleetvan February 2015 35

Do you receive our free daily email newsletter?

Direct to your inbox every weekday, subscribing to the Fleet News newsletter ensures you’ll always be up-to-date with the fleet industry.

With industry news, the latest car reviews, and the pick of our fleet management features, make sure you don’t miss out and register today.

To sign up to the free Fleet News newsletters, visit:

fleetnews.co.uk/newsletter-signup

dri v en WindoW vAn 1.6-liTre Tdi 102bhp

volKSWAgen CAddy MAxi KoMbi versatile part-car, part-van but window version could be an option for some fleets

seating for five and plenty of legroom

Need To kNow

spec

n 1.6 turbodiesel engine as standard n Fleets cannot reclaim VAT for window version n 1.6 cubic metres of space with seats up

Gross vehicle weight (kg): 2,280 Power (bhp/rpm): 102/4,400 Torque (lb-ft/rpm): 184/1,500-2,500 Load volume (seats up) (cu m): 1.6 Payload (kg): 629 Comb fuel economy (mpg): 49.6 CO2 emissions (g/km): 149 Basic price (ex-VAT): £15,470

By Trevor Gehlcken he lines between small vans and cars are becoming increasingly blurred as manufacturers keep producing new variants in a bid to plug every single gap in the market.

The volkswagen Caddy Maxi is a good example of this trend. The manufacturer offers the Caddy as a standard van, a crew-van, a car with windows all round and the Maxi Kombi Window van on test here, with an extra window on each side so that rear seat occupants can see out. The significance of these is that fleets can’t reclaim the vAT, unless the van is used exclusively for business purposes.

That will rule the window version out for many companies.

Some drivers who also have use of a van at weekends may

T

extra window on each side in kombi window version

50mpg mileage on combined cycle for diesel turbo

VerdicT For the right fleet usage, this vehicle will prove a Godsend as it offers the versatility of a car plus the usefulness of a van.

It’s a shame the electric windows aren’t standard.

be interested as it is doubtful that family members will want to be squashed up in the back with no side views. At selling time this variant is likely to attract more bids.

For business-only users, our test model costs £15,470 ex-vAT. For others it’s a more hefty £19,546. but even at this price that’s a fair amount of metal for the money.

For example, you get as standard a 1.6-litre turbodiesel engine that is slated to return almost 50mpg on the combined cycle, and an array of standard specifications, including electronic stability programme – with anti-lock braking system, electronic differential lock, traction control system, engine drag torque control and electronic brakeforce distribution – plus manual air-con, an Mp3-compatible Cd player, a multi-adjustable driver’s seat and steering wheel, and of course volkswagen’s legendary build quality and reliability. our test model also had alloy wheels at £480, a touchscreen sat-nav system at £505, and rear parking sensors at £240. Surprisingly, electric windows and electric heated mirrors are also on the options list at £295. one of the great things about vehicles like this is their versatility. There is seating for five with plenty of legroom for all, and even with the seats up, there is still 1.6 cubic metres of space in the back. There’s even an option of a third row of seats. The seat backs fold down and the rear rows can be removed altogether, although it is a fiddly job and not for the faint-hearted.

The driver’s seat is softer than the slab-like ones typically found in german vehicles, but still proved supportive enough and there are plenty of storage places, including an overhead shelf, plus four coffee cup holders.

The engine fires up smoothly and quietly and the Caddy is a joy to drive, with a nice slick gearchange and pin-sharp handling. At 102bhp there is plenty of power on offer for any fleet purpose. if that’s not enough, there is also a 2.0-litre 140bhp variant on offer.

fleetnews.co.uk/fleetvan February 2015 37

dri v en

1.0 ecoBoosT PeTroL

Ford TransiT courier Three-cylinder petrol engine makes financial and environmental sense

The Courier has a premium quality feel

Need To kNow

sPeC

n Petrol version £800 cheaper than diesel n Co2 emissions of 119g/km in petrol model n 2,591mm load capacity with folding passenger seat

Gross vehicle weight (kg): 1,765 Power (bhp/rpm): 100/6,000 Torque (lb-ft/rpm): 125/1,400 Load volume (cu m): 2.3 Payload (kg): 650 Comb fuel economy (mpg): 54.3 CO2 emissions (g/km): 119 Price as tested (ex-VAT): £13,911

By Trevor Gehlcken ith experts warning about the health risks associated with ever-increasing amounts of noxious gases being emitted by diesel engines and with London mayor Boris Johnson almost declaring outright war on heavy oil powerplants, what better time could there be for Ford to launch a new petrol-powered van?

Petrol has almost disappeared as a means of driving Britain’s light commercial vehicles. But while diesel is undoubtedly the fuel of choice at the heavy end of the market, Ford’s perky little 1.0-litre three-cylinder petrol engine makes financial as well as environmental sense for fleets in lighter vans which only cover small distances.

The petrol version is some £800 cheaper to buy than the equivalent diesel and although it is only slated to return 54mpg on the combined cycle compared with 70mpg for the diesel, petrol is cheaper to buy. The tipping point comes at

W

Cupholders, UsB port and Bluetooth connectivity as standard

38 February 2015 fleetnews.co.uk/fleetvan

40,000 mileage tipping-point, at which diesel becomes cheaper

verdiCT The fourth and last new van to get the Transit name has catapulted Ford from standard to premium class. The Courier’s three big brothers all won gongs at this year’s Fleet Van awards and it will be interesting to see if the Courier can make it a full house at the next event.

“Plenty of lumbar support in the driver’s seat, which alleviates back twinges on long journeys” around 40,000 miles. anything over that and the diesel starts winning in financial terms, albeit pumping out more nox and particulates than its petrol brother.

The courier may be a lightweight van but there is certainly nothing lightweight about its build quality. it has a premium quality feel, with heavy doors which close with a very satisfying ‘thwunk’. inside, the cab is big and there is plenty of legroom for driver and passenger. The seats are huge, hugging the figure from neck to knee. There is plenty of lumbar support in the driver’s seat too, which alleviates any back twinges on long journeys.

Meanwhile there are two coffee cup holders in the central console and digital radio with usB port while Bluetooth connectivity is standard. unusually nowadays, there is also a slot for a cd. also standard is an overhead parcel shelf and a secret drawer that pulls out from under the driver’s seat. i can’t think of another van of this size that can hold so much in the front end.

The petrol engine gives plenty of power and it is very quiet.

However, our test model had a mesh bulkhead, which allowed a fair amount of noise from the cargo area, which rather spoiled things. To be fair, the reason for the mesh was that our van had the folding passenger seat and swivelling bulkhead, which allows for loads of up to 2,591mm to be carried – that’s 8ft 4in in old money. it’s a great addition but comes at a cost of £200. standard versions get the full steel bulkhead, which makes the van a calm, quiet place to be on the roads.

dri v en

The Movano has a commanding presence on the road

FWd 3.5T biOTurbO eCOFlex 136

vAuxhAll MOvAnO vivaro’s somewhat neglected relative gets an upgrade to keep it in the race Need To kNow

speC

n Co2 emissions of 180g/km, load volume of 10.8cu m n 40.9mpg combined fuel economy n New set of engines available

Gross vehicle weight (kg): 3,500 Power (bhp/rpm): 136/3,500 Torque (lb-ft/rpm): 250/1,500 Load volume (cu m): 10.8 Payload (kg): 1,610 Comb fuel economy (mpg): 40.9 CO2 emissions (g/km): 180 Price as tested (ex-VAT): £27,093

By Trevor Gehlcken auxhall has been very much concentrating on the vivaro medium panel van in the past year as the first brand new model was unleashed since its original launch in 2001. in fact, there was so much hoo-hah about the vivaro at the last Cv Show in April that visitors could be forgiven for completely missing the upgraded Movano that was also on the manufacturer’s stand.

While not a new model by any means, there were enough changes included to keep this doyen of the heavy van market competitive, especially when up against rivals such as the new Ford Transit.

The Movano has been slightly recrafted at the front end and there is a new set of engines promising more fuel-efficiency. it is now available in front- and rear-wheel drive too, in line with its rival from the blue oval.

The model also comes in the usual array of shapes and sizes, and features a 2.3-litre turbodiesel powerplant offering 110bhp, 125bhp, 136bhp and 163bhp. The more powerful models have a twin-turbo unit fitted.

Our test model, which is priced at £27,093 ex-vAT, is the medium wheelbase, medium high roof, front-wheel drive

v

“The Movano offered a pleasing driving experience and I reckon the 136bhp is about right”

1,610kg payload for Movano

verdiCT The Movano has always been a particular Fleet Van favourite and these improvements should help it keep apace with the new Ford Transit, which is considered by many to be the best in the sector.

variant with the 136bhp engine. it gets an ecoflex moniker, which denotes a standard stop-start system and other efficiency adjustments which equate to an official fuel economy figure of 40.9mpg on the combined cycle. in the rear, there is 10.8 cu m of loadspace and the van has a payload of 1,610kg.

The Movano has a commanding presence on the road, while its lower quarters and sides are liberally swathed in black plastic to help prevent those annoying knocks and scrapes that tend to happen during a busy fleet life. it was a big climb up into the cab, which in turn meant that i had a good high (and safe) view of the road ahead. Meanwhile, the cab had that big truck feel, with plenty of legroom and headroom, while the driver’s seat hugs the figure from top to bottom, ideal for long journeys.

There were some nice touches too, such as the clipboard that popped out of a hole in the upper dash, passenger seats that lifted up to reveal hidden storage areas, a 12-volt takeoff on top of the dash so that a plug-in sat-nav didn’t leave wires dangling all over the place and no fewer than four coffee cup holders. in the test model there was also a big screen TomTom sat-nav, placed where the rear view mirror would normally be. it doesn’t have a touchscreen so the operator has to scroll around the keyboard with a cursor on the remote control, and this little addition comes at an eye-watering £960 extra. in the back, there is enough headroom so that six-footers can stand upright and there are six load-lashing eyes in the floor, with two more on the sides near the rear door. it could do with two half-height eyes near the bulkhead too.

The van also features full ply-lining for £175 – a necessity in my book to keep the rear-end clean for when the van comes to be sold.

On the road, the Movano offered a pleasing driving experience and the 136bhp powerplant is about right for a van of this size, which is likely to carry heavy loads. i had already tested the 110bhp unit and felt it was somewhat underpowered.

fleetnews.co.uk/fleetvan February 2015 39

FleetNews

PORTFOLIO W H AT W E DO IN YOUR INDUS T R Y

Fleet News magazine The leading business publication for the fleet sector, offering insight, analysis, best practice and in-depth profiles of fleets and suppliers. But don’t take our word for it: 96% of readers say Fleet News/Fleet Van are the most useful fleet publications (Fleet News reader survey). Every issue is packed with information that helps companies to run efficient and effective fleets and our readership of 16,000 is restricted to named decision-makers running fleets of 10-plus vehicles.

Fleet Van magazine

Fleet Van digs deep into the world of light commercial vehicles to provide operators with detailed insight and analysis on key topics such as operations, safety, remarketing and the environment. Van fleet case studies provide best practice advice to help you to boost your efficiency. Fleet News provides an overview of van; Fleet Van gives you the detail.

Driving

Issue 10 Winter 2014 £4.50

Helping you make better decisions

survive the DigitAl Age ❚ Journey planning will save fuel and time ❚ Diesel or petrol?

Make the right choice ❚ Key models from paris Motor show

A fleet of cArs...

AnD A helicopter he faced Graham Hodgkin on the unique challenges operation fleet running the London Air Ambulance’s

m an f sp ag uel ec em ia en l t

Businesses need to innovate, use data and win hearts and minds. the world according to google

Driving Business magazine

Websites and newsletters

Launched in 2012, this quarterly magazine is sent to managing directors and finance directors at 25,000 small to medium enterprises (SMEs) that are running fewer than 25 vehicles. Focusing on the key elements of running cars and vans, Driving Business provides practical advice to reduce cost and improve safety with a minimum of time and effort.

The Fleet News website is an extensive library of best practice advice, fleet case studies, news and tools. Compare car and van running costs, check how much tax employees will pay and find out which models use the least fuel with our easy-to-use tools. We also send a dailly newsletter helping subscribers to keep up-to-date with the latest developments in the industry.

FleetVan Fleetnews.co.uk/fleetvan

Business support... Running costs, fuel prices, CO2 emissions tools

Missed an issue? Access our full Fleet Van archive online

Best prActice For Br i tA i n ' s l i g h t vA n o p e r At o r s

Follow us... Get the latest van updates on Twitter

december 2014/January 2015 £5 where sold

insight: towing

Fleet events Fleet News events are the biggest and best in the sector. Our annual awards night attracts more than 1,500 people, while the FN50 Dinner sees 950 leasing, manufacturer, rental and supplier companies networking. Congress and Van Summit provide insight into key areas of fleet operation; monthly roundtables enable 10-15 fleets to discuss issues and share solutions in detail.

Are your drivers towing the line?

We sift through the perplexing laws to help

profile : gnewt cargo

Delivery company is '100% electric and always will be'

insight : remarketing

Flexible replacement cycles cut vehicle running costs by 23%

you to stay legal

Fleet Leasing magazine insight : FtA analys is

Van operators share their fleet strategies for 2015

Fleet Leasing provides insight and analysis to board level executives, senior management and regional sales staff at contract hire and leasing companies.

Its objective is to inform and educate about fleet trends, new models and technological developments once a quarter.

Van Fleet Insight

ement Business Services and Facilities Manag www.mbvans.co.uk/fn

Fit for purpose

Improve your business with the right van choice Fleet best practice profiles

Kwik Fit and Stannah share their tips for success

Reliability

How to run an effective fleet Advice to maximise on-road time and

minimise costs

Brought to you by FleetNews

Bespoke publications

Best practice guides

Magazines, supplements, brochures and digital products that are produced for a commercial partner, these bespoke publications inform fleets about companies and topics relevant to their business. They include our special Manufacturer Reports in which Fleet News journalists interview key personnel at a manufacturer to unearth the developments of interest to fleet operators.

Special supplements that complement the magazine, our best practice guides look at areas that are core to fleet management or which are topical, such as electric vehicles. They provide you with the knowledge you need to make the right decisions. We also publish reports into the Fleet200, which analyse the UK’s biggest fleets, and the FN50 contract hire and leasing sector.

dri v en

L1h1 110

CiTrOËn reLAy Smart new front-end and improved build quality from a worthy fleet contender Need To kNow n 41.5mpg on combined cycle and 8.0cu m load volume n Sat-nav included as standard n Co2 emissons of 180g/km

By Trevor Gehlcken s 2015 begins, the rush of new van models and updates is subsiding, leaving a British LCv parc that is newer and fresher than it has ever been.

Just about every van available received some kind of attention last year, whether it was a completely new model or simply a few nips and tucks.

One of the ‘nip and tuck’ brigade was the van on test here, the Citroën relay, which now sports a smart new front end and a series of other smaller improvements to build quality and fuel economy.

Priced at £20,205, our test model is the smallest relay available and is in base format, which is probably what just about all fleets will be buying.

This variant offers a gross vehicle weight of 3,000kg, a loadspace of eight cubic metres and payload of 1,155kg.

As expected, this van isn’t exactly brimming over with standard equipment, but does nevertheless feature ABS brakes and electronic stability control, a full steel bulkhead, remote central locking and a Teletrac sat-nav system.

Our test model also had added extras such as a reversing camera at £225, metallic paint at £400 and a lane departure warning system which makes a buzz if it feels that van is drifting out of the lane. This system only works above 37 mph.

The relay now has a very classy front end, setting it well apart from its predecessor. even my partner, who has no interest in LCvs at all, remarked on what a nice looking vehicle it was.

Climbing aboard, the interior has been reworked and now features an overhead parcel shelf and, for the first time, a dedicated coffee cup holder (vital for long distance drivers) although, rather annoyingly, it is situated on the opposite side of the dash from the driver’s seat.

There are certainly no complaints about said seat, which i think is best-in-class, with plenty of lumbar support. i undertook a 450-mile trip in one day during our test week and alighted at the other end with no back twinges at all.

There are some nice smaller touches in the cab too, such as a pop-up A4 document clip on top of the dash and two 12-volt take-offs, so a sat-nav unit and a mobile phone can

A

New interior: cup-holder, document clip and Teletrac

42 February 2015 fleetnews.co.uk/fleetvan

SpeC Gross vehicle weight (kg): 3,000 Power (bhp/rpm): 110/3,500 Torque (lb-ft/rpm): 184/1,750 Load volume (cu m): 8.0 Payload (kg): 1,155 Comb fuel economy (mpg): 41.5 CO2 emissions (g/km): 180 Price (ex-VAT): £20,255

1,155kg payload for new Citroën relay

verdiCT Good looks, low on running costs and a very comfortable driver’s seat make the Relay a worthy fleet contender. It has, however, come under increasing pressure of late from the cracking new Ford Transit. We’ll be eagerly watching the monthly sales charts this year.

“Hit the telephone icon and the driver can connect directly with an operative at Teletrac HQ” both be plugged in at once. But there really is no need for a separate sat-nav unit as the relay, like most other Citroën vans, comes complete with a free Teletrac unit which also acts as a stolen vehicle tracker.

And it’s not a bottom-of-the-range unit either. hit the telephone icon and the driver can connect directly with an operative at Teletrac hQ in Oxfordshire, speaking through the unit itself.

Our test model featured the 2.2-litre 110bhp turbodiesel powerplant, which is the lowest-powered variant on offer. it won’t exactly set the road on fire, but we reckon there is power enough for fleet purposes.

With a few technologial tweaks, this engine now offers a creditable 41.5mpg on the combined cycle, although in real life the figure is more likely to be in the mid-30s.

On the road, the relay is a neat performer with wellbalanced power steering giving plenty of ‘feel’ through the steering wheel. now that eSC is a legal requirement we get this admirable safety device as standard on the relay. it was always one of our big bugbears that it remained on the options list until the law was passed on October last year.

With good looks, low running costs and a very comfortable driver’s seat, the relay is a worthy fleet contender. its biggest rival is likely to be the cracking new Ford Transit, from which it has come under increasing pressure recently. i’ll be eagerly watching the monthly sales charts this year.

dri v en

Finish and feel are a lot more solid and upmarket

Se

GreAT WALL STeed improved spec and build quality could halt sales decline of cost efficient model Need To kNow

Spec

n New sleeker profile, with high quality materials n 1,050 payload and now able to tow 2.5 tonnes n Alloy wheels, leather seats and reversing sensors

Gross vehicle weight (kg): 2,885 Power (bhp): 139/4,000 Torque (lb-ft/rpm): 225/1,800-2,800 Load volume (cu m): n/a Payload (kg): 1,050 Comb fuel economy (mpg): 32.8 CO2 emissions (g/km): 222 Price as tested (ex-VAT): £16,998

By Trevor Gehlcken ere at Fleet Van we spend a lot of time preaching about the need to focus on wholelife costs – and not front end prices – when choosing the most cost-effective vehicles. The cheapest to buy is rarely the cheapest to run when fuel and depreciation are taken into account.

But occasionally a vehicle is so cheap that no matter how badly it performs in other areas, it will still make economic sense. One such is the Great Wall Steed, which beats the opposition into a cocked hat in terms of front-end price. in our last running costs evaluation in the december issue, this vehicle came top in its class, beating the likes of the Toyota Hilux, Ford ranger, volkswagen Amarok, nissan navara and Mitsubishi L200.

With such credentials on offer, it would be easy to assume that Great Wall was steaming ahead in the sales charts at present – but this is not the case. it appears that British fleets, far from embracing Chinese vehicles, are turning away from them. Sales last year were down by 43% after an encouraging start in 2013. in a bid to halt this alarming decline, Great Wall has upped the spec for 2015, throwing even more standard equipment at this truck – great news for fleets. new for this year is a sleeker profile, while inside higher quality materials are used throughout. The Steed has a maximum payload of 1,050kg and is now certified in the UK to tow 2.5 tonnes with a braked trailer. it also comes with a host of new standard features, including 16-inch alloy

H

£16,998 Hard-to-beat price of the Great wall Steed (excluding vAT).

verdicT So far we have heard no complaints about reliability problems for the Steed and with such a bargain basement front-end price, this must be a contender for anyone looking for four-wheel drive trucks.

However, fleets may be put off by the small dealer network.

And we do wonder how easily large fleet orders could be catered for.

“New for this year is a sleeker profile, while inside higher quality materials are used” wheels, daytime running lights, remote central locking, a Thatcham-approved Category 1 alarm, electric windows all round, air-conditioning, heated front seats and the addition of an Alpine Cd/radio with USB/MP3 withBluetooth connectivity and steering wheel mounted audio controls.

An auto-dimming rear view mirror is now standard. The Steed also has a six-year/125,000 mile mechanical warranty.

Models on offer are S and Se, our test model being the top spec variant which is priced at £16,998 ex-vAT, around £3,000 cheaper than the equivalent Toyota Hilux.

This model is a marked improvement, with general fit and finish feeling a lot more solid and upmarket. it’s a handsome looking beast, with chunky macho looks, sparkling paintwork and nice touches, such as chrome side rails. it has plenty of standard equipment too, such as alloy wheels, leather seats and reversing sensors. if the whole list were printed here, it would need its own page.

Under the bonnet is a 2.0-litre turbodiesel engine offering 139hp – average for the sector – and 225lb-ft of torque, which is plenty to power this truck along nicely. i was pleasantly surprised by the Steed’s performance: the seats are large and comfortable for a long journey and the gearchange is reasonably slick, while 4x4 high and low are selected by simply pressing a button.

Cons include noticeably vague steering, which can prove pretty unnerving on occasions, and low (32.8mpg) fuel economy.

fleetnews.co.uk/fleetvan February 2015 43

dri v en

T27 BLueMOTiOn SWB 2.0-LiTre Tdi 114PS

vOLkSWAGen TrAnSPOrTer Legendary model gets extra kit and improved mpg to hold off rivals

The Transporter has unbeatable residual values

Need To kNow

spec

n Load volume of 5.8cu m and payload of 906kg n Facelift rumoured next year n i14 - 180bhp powerplant available

Gross vehicle weight (kg): 2,700 Power (bhp/rpm): 114/3,500 Torque (lb-ft/rpm): 184/1,500-2,500 Load volume (cu m): 5.8 Payload (kg): 906 Comb fuel economy (mpg): 48.7 CO2 emissions (g/km): 153 Price (ex-VAT): £19,245

By Trevor Gehlcken he volkswagen Transporter has, until recently, been acknowledged as the undisputed king of the medium panel van sector, offering a combination of superb build quality, excellent reliability and unbeatable residual values.

But in the past two years the German manufacturer has come under huge pressure, firstly from the new Ford Transit Custom, which won international van of the year in 2012, and then from the new renault Trafic and vauxhall vivaro twins, which have well and truly upped the ante in the sector.

As volkswagen isn’t ready to facelift the Transporter just yet (one is rumoured to be due later in the year), the company has hit back by offering new variants with extra kit and better fuel economy.

So can the Transporter still hold its head up? With models like the one on test here, the 114bhp BlueMotion, the answer is a definite ‘yes’. Build quality remains exemplary, reliability hasn’t faltered and those residual values are still high.

And this model has the added appeal of 48.7mpg on the combined cycle – a figure undreamed of even five years ago.

Our test model is priced at £19,245 ex-vAT and features volkswagen’s tried and tested 2.0-litre diesel powerplant offering a sensible 114bhp and 184lb-ft of torque.

Power outputs go right up to 180bhp for the Transporter, but i reckon this version is just about right for fleet purposes.

This van didn’t once feel underpowered during the test week, although admittedly i didn’t climb any steep hills during that time.

T

44 February 2015 fleetnews.co.uk/fleetvan

48.7

mpg on combined cycle

verdicT While this van is still held in high esteem, it’s certainly beginning to show its age against a new wave of models.

With a facelift expected later this year, it is likely that the Transporter will come up trumps again to lead the pack once more.

“Power output is 114bhp for this model – which I reckon is just about right for fleet purposes” in addition to an admirable fuel economy figure, the Transporter has, as standard, the usual array of safety systems such as electric stablitiy control and anti-lock breaking system, remote central locking with deadlocks, a stop-start system, electric windows and electric heated mirrors and dual airbags.

Our test model also had a sat-nav system at £678, Bluetooth connectivity at £282, rubber floor covering in the cargo area at £156 and rear-parking sensors at £264. in the back, the Transporter offers 5.8 cubic metres of loadspace and a payload of 906kg.

Climbing aboard, it’s easy to see how the Transporter gained its legendary reputation.

All the doors smoothly close in a most upmarket manner, while the driver’s seat is superbly solid and supportive, with lots of packing in the lumbar area. Both seat and steering wheel adjust in all directions so everyone should find a comfortable position.

On the road, the engine feels lively despite its relatively diminutive output, and the van has that pin-sharp handling quality that rivals try to emulate but somehow never quite manage to come close.

One little extra i really liked was the compass read-out on the dash, which tells you which direction you are travelling in. it’s a handy little device and i’m surprised that more van manufacturers don’t offer it.

DRIVE

DRIVE

NO1 VANS

INSIGHT

RELATIONSHIPS

LEASING

" 񡑗 񡑀 񡑕 񡑖 񡑆 񡑒 񡑉 񡑆 񡑖 񡑀 񡑅 񡑖 񡑉 񡑠 񡑉 񡑓 񡑇 񡑀 񡑆 񡑠 񡑆 񡑓 񡑘

MANUFACTURERS

NETWORKING

BACK TO BACK

300 VEHICLES FOUR CIRCUITS

BRILLIANT DRIVING EXPERIENCE CARS

TEST DRIVE

MANUFACTURERS EXHIBITION MEETINGS MANUFACTURERS INSIGHT

VEHICLE EVALUATION

LEASING DEBATES BACK TO BACK

VANS BACK TO BACK

DRIVE

RELATIONSHIPS

DEBATES

ADVICE 2 DAYS CARS 1-2-1 INFORMATION

DRIVE

INFORMATION

IN ACTION

EXHIBITION

DEBATES

BACK TO BACK

NETWORKING

CARS

BACK TO BACK

VANS

MANUFACTURERS

INSIGHT

FOUR CIRCUITS

DEBATES

300 VEHICLES

2 DAYS

BACK TO BACK

DEBATES

DEBATES

DRIVE

TEST DRIVE

INSIGHT

KEEP UP-TO-DATE FOUR CIRCUITS NO1 NETWORKING MEETINGS LEASING

CARS

INSIGHT

INSIGHT

1-2-1 ADVICE

BACK TO BACK

VANS

MANUFACTURERS

COMPANY CAR

񡑠񡑢񡑗񡑀񡑐񡑈񡑣񡑙 񡑉񡑗񡑕񡑑񡑀񡑠񡑗񡑒񡑑񡑠񡑓񡑑񡑘 񡑓񡑔񡑡񡑀񡑃񡑀񡑑񡑔񡑓񡑇񡑆񡑖񡑁 񡑒񡑔񡑖񡑆񡑀񡑠񡑃񡑑񡑙񡑃񡑄񡑑񡑆񡑀񡑅񡑃񡑢 񡑄񡑣񡑙񡑄񡑓񡑃񡑄񡑃񡑀񡑔񡑕񡑄񡑓񡑈񡑓 񡑀񡑙񡑈񡑒񡑄񡑘 񡑔񡑓񡑀񡑙񡑠񡑄񡑘񡑃>񡑤񡑀-5񡑀񡑉񡑠񡑓񡑄񡑨񡑀 =񡑱/==񡑀 񡑀-+/==

񡑁񡑀񡑃񡑂

0 0 00

񡑙%񡑰񡑀(񡑥8*񡑧%񡑀,!񡑀6%񡑰񡑀񡑀1񡑂񡑂񡑈>񡑀񡑂,**񡑰񡑧6',*񡑀񡑇8񡑦2 ,!!񡑰3'*$񡑀.3񡑰&񡑥33񡑥*$񡑰񡑩񡑀񡑦84'*񡑰44񡑀)񡑰񡑰6'*$4 :'6%񡑀!(񡑰񡑰6񡑀)񡑥*8!񡑥񡑧683񡑰34 >񡑀*񡑰:񡑀6񡑰񡑧%*,(,$;񡑀<,*񡑰񡑀6,񡑀4%,:񡑧񡑥4񡑰񡑀6%񡑰 (񡑥6񡑰46񡑀6񡑰񡑧%*,(,$'񡑧񡑥(񡑀񡑩񡑰9񡑰(,.)񡑰*64 񡑒,3񡑰񡑀񡑩񡑰񡑦񡑥6񡑰4 >񡑀*񡑰:񡑀(,:񡑀񡑰)'44',*񡑀4񡑰)'*񡑥3

񡑃񡑆񡑁񡑃񡑇񡑀񡑔񡑡񡑖񡑑񡑀񡑄񡑂񡑃񡑅

#"񡑀7񡑉񡑖

񡑂񡑤񡑨񡑦񡑩񡑣񡑧!񡑤񡑣񡑰񡑥񡑧񡑣񡑤񡑱񡑥񡑨񡑧񡑂񡑤񡑨񡑦

LoNg -T ERm T E s T dcI 120 sPoRT ENERgy

RENAuLT TRAfIc Bad weather and full loads have put our long-term van through its paces Need To kNow n 47.9mpg, with Co2 emissions of 155g/km n eco button increases fuel economy by estimated 7% n Ride quality improved with full load

By Trevor Gehlcken he death of a relative recently meant that our longterm Renault Trafic has been pushed to its very limits time and time again. I was left to clear his house – which turned out to be a monumental task as he was a committed hoarder during his life.

As he lived in Portsmouth, I live in Essex and the other three beneficiaries reside in Rutland, Peterborough and King’s Lynn in Norfolk, the Trafic has been busily buzzing from place to place in a bid to distribute and sell the multitude of collected items between the four of us prior to the house being sold.

As can be seen in the picture, on several occasions the van has been loaded to the gills with boxes, with all 5.8 cubic metres of space being taken up.

But even at maximum stress, the Trafic did not put a foot wrong, through rain, hail and frosty roads. In fact, if anything, the ride improved with a full load on board. Any skittishness was ironed out and the van loped along in a most satisfactory manner.

As mentioned in our last test, the eco button, which slightly knocks down the torque and is reckoned to save about 7% in fuel, has been left in the ‘on’ position. And even with a full load on board I have only had to turn it off once, and that was on a particularly steep hill.

The miles are piling on, yet even during journeys of a few hundred miles in a day, I haven’t suffered any back twinges, thanks to a very comfortable yet supportive driver’s seat.

The built-in sat-nav unit should have been a useful addition but I’m afraid I’m addicted to my little TomTom so I have used that unit clipped on the windscreen instead of Renault’s offering, which I don’t find very easy to use.

T

Handles poor weather conditions with ease

46 February 2015 fleetnews.co.uk/fleetvan

ABoVe: despite consistent full loads, the Trafic performed well

speC Gross vehicle weight (kg): 2,900 Power (bhp/rpm): 120/3,500 Torque (lb-ft/rpm): 236/1,500 Load volume (cu m): 5.2 Payload (kg): 1,041 Comb fuel economy (mpg): 47.9 CO2 emissions (g/km): 155 Price as tested (ex-VAT): £22,655

“Even at maximum stress the Trafic did not put a foot wrong, if anything improving with a full load on board” However, the usB port has come in handy. I’ve loaded my mP3 player up to the brim and my partner and I have both been kept entertained on those long dreary motorway hauls, without having to resort to the radio. one of the downsides of all this 70mph travel is that it’s playing havoc with my efforts to work out a real-life fuel economy figure.

The official combined total is 47.9mpg but, what with all those loads and long distances, the figure at present is just 38.8mpg.

But even that figure is a creditable one, bearing in mind that the official figure is calibrated indoors on a rolling road, so wind resistance isn’t taken into account. once normal journeys resume, with average driving conditions becoming part of the equation, expect this figure to rise to somewhere in the low to mid-forties.

It’s also a real comfort to know that all the safety systems such as electronic stability control (Esc) and ABs are loaded on board as standard. These are especially useful and important when the weather is cold.

I don’t fall into the trap of driving a little bit faster knowing Esc is there to save me, but it does give me a lot more confidence when driving in bad weather.

The upshot of all this winter work is that the Trafic is looking very different at present from its pristine original photographs, both inside and out.

As a treat, I will soon be taking it to a valet for a wash and brush-up. The van certainly deserves it after such faithful service.

va n m a rk e t s tat i s t ic s

The size of the UK van market essential statistics from the sector LCvs on the road

3.3m

there are 3,353,900 vans on the Uk’s roads, according to the Department for transport’s latest figures. vans operated by the FLeet 200

LiCensed Light goods vehiCLes, by region, great britain region vehicles two-year (’000s) change south east 526.4 4% south West 391.1 6% West midlands 382.0 1% east 330.3 0% north West 294.5 -5% east midlands 278.0 4% Yorks & Humber 246.0 0% scotland 241.5 1% London 203.0 -5% Wales 176.0 4% north east 141.0 31%

Company-registered vans

242,413 1.5m Britain’s largest fleets across 10 industry sectors operate 242,413 vans, with the transport/ communications/distribution sector running the most.

there are 1,548,000 vans registered to companies on the Uk’s roads, according to the Department for transport.

number oF vans with end-users

838,000 excluding self-registration and rental, there are approximately 838,000 vans up to and including 3.5 tonnes operated by end user fleets, with 585,000 operated by fleets with more than 25 vehicles.

Source: Sewells Research and Insight

van FLeet parC by seCtor 3.5t and beLow:

Private sector: 763,000 Public sector: 75,000

top ten best-seLLing vans in 2014 Ford transit 25,211 Ford transit custom 23,720 mercedes-Benz sprinter 15,722 Peugeot Partner 15,181 volkswagen transporter 14,847 vauxhall vivaro 12,903 volkswagen caddy 11,214 Ford transit connect 9,386 renault trafic 8,878 citroën Berlingo 7,421 fleetnews.co.uk/fleetvan February 2015 47

Your place awaits....

Over

1400 guests

already attending, book now to avoid disappointment, limited balcony tables remaining

25 March 2015 â&#x20AC;&#x201C; Grosvenor House, Park Lane, London

Exclusive networking opportunity â&#x20AC;&#x201C; one night to meet the fleet industry under one roof Limited availability on balcony level, book now to secure your attendance at the Fleet News Awards 2015 For tickets and tables contact Emma-Louise Kinnaird on 01733 395133 or email emma-louise.kinnaird@bauermedia.co.uk

Sponsored by

www.fleetnewsawards.com