Fleet Van December 2013/Jan 2014

FleetVan 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

Dec 2013/Jan 2014 fleetnews.co.uk/fleetvan ÂŁ5 where sold

Driven: Vauxhall Movano 4x4

Off-road capability at a competitive price gives fleets a new alternative

Insight: van rental

Why short-term thinking is best for fleets with flexible business needs Fleet case study: Medequip

Open-book contracts help Colin Wells run an efficient van fleet

WORKING HARD TO STAY NO1

Reliability, quality and running costs will keep Ford top of the van table, says fleet director Phil Hollins

Exclusive networking opportunity – one night to meet the fleet industry under one roof Book early and secure a premium table position for the Fleet News Awards 2014 19 March 2014 Grosvenor House Park Lane, London

For tickets and tables contact Nicola Baxter on 01733 468289 or email nicola.baxter@bauermedia.co.uk Sponsored by

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Contact us Fleet News, Media House, Lynch Wood, Peterborough PE2 6EA. Email – fleetnews@bauermedia.co.uk If you or someone you know is aged between 16 and 24 and is interested in work experience opportunities at Bauer Media go to www.gothinkbig.com Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Deputy editor Simon Harris 01733 468308 simon.harris@bauermedia.co.uk Associate editor Trevor Gehlcken Contributors John Challen, Mark Cartwright, John Charles, Chris Lowndes (photographs) Production Head of publishing Luke Neal Associate editor (production) Andrew Ryan Production editor Finbarr O’Reilly Designer Charlotte Boon Advertising Commercial director Sarah Crown 01733 468320 B2B commercial manager Sheryl Graham 01733 468256 Account managers Wendy Cowell 01733 468046 Lucy Herbert 01733 468800 Lisa Turner 01733 468345 Stuart Wakeling 01733 468342 Marcus Woods 01733 468269 Head of project management Leanne Patterson 01733 468332 Project managers Angela Price 01733 468338 Kerry Unwin 01733 468327 Telesales/recruitment b2brecruitment@bauermedia.co.uk 01733 468275/01733 468328 Events Event director Chris Lester Event manager Sandra Evitt 01733 468123 Event organiser Kate Howard 01733 468146 Events administrator Nicola Baxter 01733 468289 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 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.

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CONTENTS 4 I Expectations for 2014

Van operators look into their crystal balls to tell us what they expect to happen next year – plus the developments that would make their jobs easier.

6 I Fleet Van Awards

We name the very best in the light commercial vehicle industry.

10 I Fleet operations: rental

Pressure to cut costs and increase efficiency is making fleets think shorter-term.

17 I Remarketing

Rising residual values will hit a ceiling in 2014, industry experts predict.

20 I Environment: electric vans

Industry opinion divided on whether technology can overcome issues.

22 I Case study: Medequip

Company uses strong relationships to meet its requirements and get the best for its fleet.

24 I Cover feature Spotlight: Ford

Ford of Britain fleet director Phil Hollins on why the manufacturer is in the midst of the biggest van replacement programme in its history.

26 I Driven

Ford Transit Custom Tourneo, Fiat Scudo Crewvan, Citroën Relay, Vauxhall Movano 4x4, and Vauxhall Combo long-termer.

31 I Running costs

4x4 double-cab pick-ups have surged in popularity in recent years. How much do they cost to run?

NEXT ISSUE – February Fleet Van Awards All the coverage from our big event

Funding: outright purchase How to switch to buying your own fleet

Remarketing

What can the 2013 market tell us about 2014?

fleetnews.co.uk/fleetvan December 2013/January 2014 3

B e n c h m a r k i n g b y t h e F TA E x p e c t at i o n s f o r 2 014

A time machine and a soft sponge ring...

Van operators tell us what they want in 2014 to make their jobs easier

By Mark Cartwright, head of LCVs, Freight Transport Association ith the summer a fading memory and the promise of a new year fast approaching, we wondered what the the outlook was among FTA van operators for the next 12 months and what their wishes would be if they could lay their hands on a mythical crystal ball and peer into the future…

As always, the economy features in practically every news bulletin and, touch wood, we seem to be looking at a more of a positive outlook than at this time last year.

W

“Behind the driver, fuel is easily the greatest cost we incur in operating our vans” Rory Morgan, Iron Mountain

It’s long been recognised that increased use of commercial vehicles, especially vans, is a pretty reliable indicator of positive economic news.

New registrations and demand for used vans remain strong, so we wondered what our operators anticipated for next year and, on the whole, it looks positive with the great majority of them expecting their fleet size to grow or remain static.

Last year we saw a continued trend of operators downsizing their vans.

This movement came out of operators looking more closely at the working demands placed on vehicles and often as a result of direct consultation with the drivers identifying that bigger wasn’t always better.

Several operators confirmed reduced fuel spend, less collision damage in urban operations and better driver ‘approval’ as a result.

While this isn’t an option for everyone, it was clear from our survey that it remains a hot topic, with almost half of respondents looking at downsizing in 2014.

The new year is also traditionally a time to air your views and put the world to rights so, at the risk of lighting the blue touch paper, we asked our operators to let us know what they thought…

If there was one initiative you could implement, or change you could make to your van fleet or the way it operates, what would it be?

The common theme in the responses was around improving driving standards.

John Blakeley, transport manager at Clancy Docwra, summed it up. He said: “We need to ensure all operators are confident their drivers are competent to do the job we are asking of them. You can take your test in a Nissan Micra and be legally driving a 3.5-tonne van the next day.

That’s why we have our own permit to drive scheme. It’s also about more than just driving.

Our drivers must know how to load the van safely and carry out pre-use checks. It’s all part and parcel of the job.”

If you had a magic wand and could make a single change (outside of your own fleet) to the way vans are operated or the way vans are viewed in the UK, what would it be?

“Stop ‘white van man’ tarnishing our industry’s image,” said Darren Moor, operations and compliance manager at Countrywide Farmers. It was a recurring theme among our members and one which, given the increased enforcement activity

Over the next 12 months...

Do you think you will be downsizing vehicles within your fleet?

Do you think your van fleet will...

No 55.6% Increase 28.6%

Stay the same 60.7%

Maybe 33.3%

Yes 11.1%

4 December 2013/January 2014 fleetnews.co.uk/fleetvan

Decrease 10.7%

Van operators look into their crystal balls to tell us about the future

EDITOR’S COLUMN Stephen Briers, editor-in-chief, Fleet Van

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s I write this, our events team are putting the final touches to the Fleet Van Awards winners’ luncheon which takes (‘took’, by the time you read this) place in London on December 4.

Twenty-two winners gathered to collect their trophies for being the best van fleet operators, top suppliers and makers of the best vans. You can find out who they are by turning to page 6 in this issue, but due to a quirk in publishing dates we won’t be bringing you all the action from the day until our February issue.

“Congratulations to all our 2013 award winners” on vans from VOSA and the police, is likely to stay in focus during 2014.

Rory Morgan, national logistics general manager at Iron Mountain, said: “There are enormous benefits to be gained, not least of which is showing the law-makers that ‘white van man’ is the exception rather than the rule.”

What should the Government be doing to make your operation ‘better’?

Not surprisingly the Government found itself on the receiving end of the magic wand with one four letter word dominating responses – FUEL. Morgan summed many views up when he said: “Fuel, fuel, fuel... do I need to elaborate?

“Behind the driver, fuel is easily the greatest cost we incur in operating our vans.

“We do all we can to manage that spend by optimising routes, training drivers, using modern vehicles etc., but it doesn’t alter the fact that it’s a massive cost to us.”

Road condition and investment also came in for quite a bashing with the disparity between tax take from transport massively outstripping investment coming in for more than a little comment.

“The Government should concentrate on doing road improvements where they would benefit the road user,” said Nick Beadle, of Euromix Concrete.

This view was echoed by a transport director at a local authority who preferred to remain anonymous. He said: “Invest in improvements to the road network; get rid of potholes.”

Is there anything the manufacturers could be doing to make your operation ‘better’?

There are a few areas of improvement operators would welcome from manufacturers and their dealer networks.

“The manufacturers must make vehicles easier to work on,” said Beadle. “They are increasingly complex and require an array of specialist tools including computers to fix even items that should be easy to maintain.”

The extended delivery dates for certain vehicles came under fire. “Lead times need to be improved on bespoke supply. Sixteen weeks to have a new van with tailgate is unacceptable,” said Moor.

And finally, however far-fetched, what single invention would make your job easier? n “Drivers who care for the vehicle, appearance, driving style, maintenance: yep, that far-fetched!” n “Build a road over the top of the River Thames to ease traffic flow into London.” n “A relatively soft, sponge ring around a van so that even low-speed collision damage is significantly reduced.” n “A time machine!”

There is certainly some food for thought there and probably a few disappointed faces when they don’t get their wishes for Christmas!

Overall, the van operating industry is confident for 2014.

There will no doubt be some knocks along the way but here’s looking forward to a safe and productive year!

When we first came up with the concept of the Fleet Van awards in 2008, the ceremony was a blacktie evening event attended by several hundred people. The following year, in the recession, we switched to a winners’ luncheon – few companies wanted a glitzy awards dinner.

However, some manufacturers believe the Fleet Van Awards is the poor cousin to our prestigious Fleet News Awards held in March.

Consequently, we believe the time is right to return to an evening ceremony, again raising the profile of this important sector.

Next year, then, the Fleet Van Awards will be a dinner for winners, sponsors and other key people within the van fleet sector.

The provisional date is September 18 and it will be held at The International Centre at Telford, after our Fleet Van Summit.

Look out for further details in due course. For now, though, my congratulations to all of our 2013 Fleet Van Awards winners.

fleetnews.co.uk/fleetvan December 2013/January 2014 5

F l e e t Van Aw ar d s 2 013 W inner s Sponsored by

We name the very best in light commercial vehicles at the Fleet Van Awards

A

By Simon Harris fter many hours of deliberation by our expert judges, we arrived at the decisions that name the very best in the wold of light commercial vehicles in the UK in 2013.

As always the standard of contenders was at the highest level, giving the judges a tough task in singling out those that performed just that little bit better than the rest (some of whom were worthy of a nod as a highly commended entrant).

The winners picked up their trophies at the annual Fleet Van Awards luncheon on December 4, with full coverage of the event in the February 2014 issue of Fleet Van.

The judges Fleet categories n Stephen Briers, editor-in-chief, Fleet News n John Maslen, Sewells n Mark Cartwright, FTA Manufacturer categories n Stephen Briers, editor-in-chief, Fleet News n Simon Harris, deputy editor, Fleet News n Trevor Gehlcken, associate editor, Fleet Van n Alastair Houston, Northgate Vehicle Hire n George Alexander, Glass’s n Ken Brown, CAP n Steve Crawshaw, LeasePlan n Gary Banister, Lex Autolease Supplier categories n Stephen Briers, editor-in-chief, Fleet News n Phil Cane, Sainsbury’s n Dale Eynon, Environment Agency n Darren Bell, G4S Cash Solutions n John Maslen, Sewells

VAN CATEGORIES City van Finalists Citroën Nemo Fiat Fiorino Ford Fiesta Van Peugeot Bipper Vauxhall Corsavan Winner Fiat Fiorino Highly commended Ford Fiesta Van Small van Finalists Citroën Berlingo Fiat Doblo Cargo Mercedes-Benz Citan Nissan NV200 Peugeot Partner Renault Kangoo Vauxhall Combo Volkswagen Caddy Winner Citroën Berlingo Highly commended Fiat Doblo Cargo Nissan NV200 Volkswagen Caddy Medium panel van Finalists Ford Transit Custom Mercedes-Benz Vito Volkswagen Transporter Winner Ford Transit Custom Highly commended Volkswagen Transporter Large panel van van Finalists Fiat Ducato Ford Transit Iveco Daily Mercedes-Benz Sprinter Volkswagen Crafter Winner Mercedes-Benz Sprinter Highly commended Fiat Ducato Iveco Daily

6 December 2013/January 2014 fleetnews.co.uk/fleetvan

Pick-up van Finalists Ford Ranger Isuzu D-Max Mitsubishi L200 Toyota Hilux Winner Ford Ranger Highly commended Isuzu D-Max Mitsubishi L200 Chassis cab Finalists Ford Transit Iveco Daily Mercedes-Benz Sprinter Peugeot Boxer Vauxhall Movano Winner Vauxhall Movano Highly commended Peugeot Boxer Green van manufacturer Finalists Citroën Fiat Ford Mercedes-Benz Nissan Peugeot Renault Winner Fiat Highly commended Ford SUPPLIER CATEGORIES Technology initiative of the year Finalists Bott Epyx In-car Cleverness Smart Witness Winner Bott

Best new product or service Finalists Derwent Management Systems GreenRoad Kwik-Fit Winner GreenRoad Best van rental company Finalists Europcar SHB Thrifty Winner Europcar Highly commended SHB Van leasing and fleet management company of the year Finalists BT Fleet GE Capital Hitachi Capital LeasePlan Lex Autolease Zenith Winner BT Fleet Highly commended GE Capital FLEET CATEGORIES Van fleet utilities Finalists E.On National Grid Severn Trent Wessex Water The Clancy Group Winner E.On Highly commended Severn Trent National Grid Van fleet – transport/logistics Finalists The Clancy Group Tube Lines Winner Tube Lines

Guests at the 2012 Fleet Van Awards enjoy the event

Van fleet – public sector Finalists Gateshead Council NHS Blood and Transplant Wakefield and District Housing Yorkshire Ambulance Service Winner NHS Blood and Transplant Highly commended Wakefield and District Housing Van fleet business services Finalists The AA Iron Mountain Winner The AA Highly commended Iron Mountain Van fleet – wholesale/retail/food Winner Sainsbury’s

Safe van fleet Finalists BT Fleet E.On Iron Mountain Morrison Utility NHS Blood and Transplant The Clancy Group Wakefield and District Housing Winner The Clancy Group Highly commended BT Fleet Iron Mountain Green van fleet Finalists Environment Agency University of Birmingham Yorkshire Ambulance Service Winner Yorkshire Ambulance Service

HEADLINE CATEGORIES Van supplier of the year Finalists ATS BT Fleet Europcar Selsia

LCV of the year Finalists Fiat Fiorino Citroën Berlingo Ford Transit Custom Mercedes-Benz Sprinter Ford Ranger

Winner BT Fleet

Winner Mercedes-Benz Sprinter

Van manufacturer of the year Finalists Fiat Ford Mercedes-Benz Volkswagen

Van fleet manager of the year Finalists Larry Bannon, NHS Blood and Transplant Michael Jackson, Scottish Ambulance Service Sarah Dopson, The AA Rick Young, Wakefield and District Housing

Winner Ford Highly commended Fiat

Winner Michael Jackson, Scottish Ambulance Service

Highly commended University of Birmingham

Look out for the full Fleet Van awards 2013 coverage in the February issue of Fleet Van fleetnews.co.uk/fleetvan December 2013/January 2014 7

ALL-NEW FORD TRANSIT CONNECT Load-through Bulkhead Many things make Transit Connect the backbone of business, like the ingenious Load-through Bulkhead or the fact that it won Van of the Year 2014.

However you look at it, nothing else helps you go further. ford.co.uk/transitconnect

Transit Connect – International Van of The Year 2014.

Fleet operations Rental

VAN RENTAL CAN BE YOUR FLEXIBLE FRIEND Pressure to cut costs and increase efficiency is making fleets think shorter-term

F

By John Challen or many operators who are trying to maximise their profits in a tough economic climate, the idea of flexible van rental is becoming very much a reality. Having the option of not signing up to a four-year deal for vehicles that might be surplus to requirements after just two is obviously appealing, not least from a financial point of view.

It is also a route companies that have widely varying workloads take, as well as many organisations that work in seasonal businesses.

With uncertainty over the length of work contracts, rising vehicle running costs and an ever-increasing turnover of new vehicles, rental companies have realised that the traditional long-term deals on offer to rental customers are not favoured by all.

A growing number of fleet managers find themselves welcoming alternatives to managing their vehicles.

“Most businesses experience peaks and troughs in demand, and rental is perfect for filling in the gaps during those peaks,” says Adrian Bewley, director of business rental UK and Ireland, Enterprise Rent-A-Car. “After all, it makes no sense for a company to operate 50 vans itself if 10 of them are in use only for three months of the year.

12-15k

typical mileage when long-term rental vehicles are returned

Below: Different sized rental vans can add short-term flexibility to a fleet

10 December 2013//January 2014 fleetnews.co.uk/fleetvan

“The 10 vans are an asset cost, a maintenance cost, an admin hassle and even a parking space problem for the time they’ll just be sitting idle.

“That’s why most businesses buy or lease only as many vans as they need all year-round, and use rental to supplement the periods of high demand.”

Enterprise’s products include Month Or More and Flex-ERent, where vans can be hired for a few weeks or longer, and can be handed back at any time without additional cost: for example, if the demand spike isn’t as great as was expected.

“It’s actually very rare for any van operator to have a constant fleet requirement all year round,” says Bewley.

“Irrespective of seasonal fluctuations, a utilities company might suddenly win a new 12-month project, or a construction firm might need five more vans for a couple of weeks because a deadline has been shifted.”

Neil Cunningham, general manager at Hertz UK and Europe, believes companies operating commercial fleets should consider a full-service plan from rentals as short as four weeks, as this will enable them to make savings compared with longer-term rentals.

“With no upfront fees or finance charges, these plans can help reduce the barriers associated with traditional fleet management,” he says.

“Embracing new technologies to drive efficiency and encourage responsible driver behaviour can have a big impact on a fleet manager’s bottom line” Neil Cunningham, Hertz UK

“Plus, by offering a 360° service, with benefits including breakdown assistance, insurance waivers and free valeting services, fleet managers can get an easy-to-manage, allinclusive package.”

The constant arrival of new technology that helps fleets reduce their own costs, as well as the impact on the environment, also plays its part in the way vehicles are acquired, believes Cunningham.

If a new model comes on to the market with systems that could potentially save a fleet money and improve efficiency, many operators want to experience the benefits as soon as they can, as opposed to waiting until the end of their contract, which could be years away.

“By using GPS to track real-time vehicle journeys, fleet managers can get more transparency than ever before, with real-time visibility of where vehicles are and where they are needed, while drivers can take the most efficient routes and avoid unnecessary fuel consumption,” he says.

Cunningham, however, highlights vehicle mileages as a determining factor when it comes to rental choices.

“Typically, long-term rental vehicles are swapped at between 12,000 and 15,000 miles, which can provide another key benefit to cost-conscious fleet managers, because newer vehicles are generally more fuel efficient, safer and less prone to mechanical problems,” he says.

“Again, this offers significant savings for commercial fleet managers as downtime for servicing, tyre replacement etc. can be kept to a minimum.

“Embracing new technologies and vehicle sharing systems to drive efficiency and encourage responsible driver behaviour can have a big impact on fleet managers’ bottom lines, ensuring their resources are well placed and generating maximum return on investment.”

Some rental vehicles will not reach anything near 12,000 miles with some fleets, and this short-term approach is popular with seasonal operators in the rental market.

“Christmas is one of the key periods of high seasonal demand for many companies,” says Bewley. “Retailers and parcel delivery companies, in particular, are likely to use rental to increase their fleet for a short period to cover the holiday rush.

“We’ve also seen demand from florists for more vehicles in the run-up to Valentine’s Day, and last year’s London Olympics saw a number of tourism-focused organisations in the south east needing additional vans to accommodate extra business.”

500

number of orders for flowers Cambridge Floral Designs can take on Valentine’s Day

Seasonal peaks in demand One Cambridge-based company – Cambridge Floral Designs – owns two florists shops and has recently partnered with Northgate following a rise in demand for its products.

Currently taking two vehicles from the rental company, it anticipated hiring more in peak periods for the business, such as Valentine’s Day, when the company can take up to 500 orders on the day itself in addition to its advanced orders.

Managing director Simon Freeman says the benefits of flexible hire speak for themselves.

“The floristry industry has seen a rise in activity throughout 2013, bringing with it logistical constraints as delivery demands increase,” he adds.

“This is a notoriously tricky area for florists, as the costs of operating a fleet for an independent business can have a large impact on the bottom line.

“As a result, I’ve been hesitant to purchase supplementary vehicles or enter into contract hire.

“The additional vehicle wrapping services on offer were further value and made the partnership the perfect solution.”

fleetnews.co.uk/fleetvan December 2013/January 2014 11

Fleet operations Rental

From its side, Northgate runs a completely flexible fleet, says Ian Smith, the company’s head of business and market development.

“Our vehicles might be available from one day to 48 months, but the majority of our work is based around offering flexible rental as an alternative to contract hire and outright purchase,” he says.

“People are looking at seasonality, or have won or lost contracts. Most want flexibility in fleets and don’t want to be paying early-termination charges or going to auctions to purchase vehicles.”

He adds: “A lot of people don’t want to be tied in for three years, either because they are a seasonal business, have uncertainty in their business cycle, or because they just want clean, new vehicles with their own livery.

“With our vans, they can have it as a new or used vehicle, with racking, tow-bars, or beacons. We are as flexible as the organisations that we deal with.”

Newer vehicles offer lower running costs As well as the aetheistic viewpoint, fleets are also keen to refresh vehicles more often to make savings.

“We understand that fleet managers are keen to replace their ageing fleet because newer vans are cleaner, more efficient and therefore offer reduced running costs,” says Smith.

“With a new vehicle on a flexible rental plan, they have better fuel economy, plus servicing and maintenance is taken care of: it is a hassle-free fleet.”

He says many customers opting for flexibility in their fleet are new businesses who are aiming to minimise risks.

“People don’t often know the best vehicle for the job, what payload they want or what racking or livery they are looking for, so they can take a vehicle with us and, if they find out they need a different model they can, for example, either downsize to a car-derived van or swap it for a bigger van.

“Most people can’t say they know what is going to happen in three years’ time, so flexibility works for them, particularly because there are no penalties.”

Alongside smaller start-up operations and SMEs, Smith says more of Northgate’s business is working with businesses with 100 or more vehicles on their fleet who are looking for extra flexibility.

“There are a lot of organisations, such as retail, who are

Above: The majority of Northgate’s work is based around offering flexible rental

into the golden quarter and there is massive demand for vehicles to meet customer requirements,” says Smith.

“Likewise, a lot of people win or lose contracts and they want to adjust the fleet accordingly.”

Morgan Sindall’s van fleet numbers 750 and, according to fleet manager Paul Taylor, up to 450 are run on a flexible rental contract.

Ranging from car-derived to 3.5-tonne vans, many are involved with maintenance, utility work, and travelling to and from construction sites.

“The main consideration for adopting a flexible rental fleet is our contract work,” says Taylor.

“Most of the work we have covers varying length contracts, so it is essential that we are able to flex the fleet when we need to.

“Because we are never 100% sure of what is going to happen with the contracts, and therefore the vehicles assigned to it, by taking this approach I’ve always got the chance to push [the vehicles] back to the rental company.”

While some of Taylor’s fleet is assigned for as long as 30 months, other vehicles only stay for six months.

“Our fleet is probably less flexible now than it used to be,” he says.

“If you’ve got a contract with some longevity in it, it makes sense to go down the purchase or leasing route and get the benefits of that method of acquisition.

“If we get a contract tomorrow for 100 vans for five years, I would look to purchase or finance lease them, as opposed to going for flexible rental.

“If you have a short-term contract, flexible rental is a sensible option and it has worked well for us in the past.

“You are effectively using someone else’s supply line and you don’t get issues such as vehicle lead times.”

“Most of the work we have covers varying length contracts, so it is essential that we are able to flex the fleet when we need to”

12 December 2013/January 2014 fleetnews.co.uk/fleetvan

Paul Taylor, Morgan Sindall

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Advertisement feature

BCA highlights potential sellers’ market for LCVs in 2014 N ew research from BCA suggests that the average used LCV reaching the wholesale sector will be older, and higher mileage yet average values may well continue to rise significantly in the years ahead.

With BCA reporting average values rising consistently during 2013 and rising demand expected as the economy starts to recover, 2014 could be another year of record price performance for used vans.

BCA’s general manager – commercial vehicles, Duncan Ward, commented: “Average values for used LCVs have been substantially higher this year, despite anecdotal reports suggesting that van retailers have been relatively quiet.

“However, the key factor driving the market is the supply of good retail quality stock – or rather the lack of it – and this means there is plenty of competition for the best examples reaching the market.

“Demand has been right across the board, from older higher mileage vans through to younger ex-fleet and lease vehicles, while the few late-plate light commercials on offer can make exceptional values.

“The end result has been record-breaking average values for fleet/lease and dealer P/X vehicles. As always, good condition is the key and vans with a nice specification and in an attractive retail colour are very desirable.”

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Nearly-new vans always attract a flurry of bidding Ward added: “Of course, good news for vendors means a more competitive marketplace for buyers and the outlook for 2014 is for more of the same. In fact, supply issues could actually worsen. There was a significant drop in new van sales between 2008 and 2009, and that will be reflected in the volume of used vans reaching the wholesale markets in 2014. This ‘used supply gap’ means the used light commercial

UK new LCV registrations 2000-2015 and supply gap

Thousands of units

300

Supply gap

250 200 150

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

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2001

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100 Source: BCA

vehicle sector may be short of stock for some time to come.”

In addition, the average age of LCVs on the country’s roads has climbed to 7.4 years, compared to 6.87 in 2007, reflecting that fewer new vans have been purchased to ‘freshen’ the UK’s commercial fleet.

The mix of used LCVs in the vehicle parc has also changed. The volume of older vehicles has risen significantly since 2007, with LCVs over nine years old now representing by far the largest percentage of the total.

“Our view is that the overall shortage of used product and the issues of supply versus demand will see a continuation of high conversions and higher selling prices in 2014, effectively meaning we are going to see more of what is best described as a ‘sellers’ market’.

“While this sounds like great news for corporate vendors, this situation must be approached rationally and sellers must continue to deliver on all the basics. The usual rules STILL apply and damage management, stock selection, pre-sale preparation, appraisal and sensible valuation remain as important as they ever were,” concluded Ward.

Europe’s No.1 vehicle remarketing company Log on to bca.co.uk or call 0844 875 3480

Remarketing Residual values

Rising values to hit ceiling in 2014, experts predict Increased new van registrations will increase supply into the used market

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By John Charles ext year could be the best that anyone can remember in terms of van residual values, according to George Alexander, chief editor, Glass’s Commercial Vehicle Guide.

He, like many experts, believes the used van price ceiling will be reached in 2014 and, while there will be no meltdown in values, increases

in new light commercial vehicle sales will start to release the pressure on ex-fleet and lease vehicle prices in mid-year.

CAP is also forecasting a “plateauing” of values on the strength of the economic recovery triggering rising demand for new vans that, in turn, will mean more used models returning to market.

The National Association of Motor Auction says that in the first quarter

“Demand will go up; supply will increase; stability will return to the market” Tim Cattlin, CAP Monitor

of 2014 there is “little to delay further price rises being posted for the most desireable used lots”, while for “harder used LCVs it would seem price levels are most likely to simply tread water which, in itself, would be a good result”.

Indeed, experts say that demand for well-specced and higher mileage vehicles in good condition will be high as traders and their customers struggle to justify the financial outlay required to fund the few late, low-mileage vans available.

But, as demand for new vans closely tracks the UK’s GDP (gross domestic product) curve, Tim Cattlin, CAP Monitor editor (CVs), said: “Demand will go up; used van supply will increase; therefore stability will return to the market in the latter half of 2014 and there will

be a slight fall off in prices.”

GDP is also the key determinant for Ben Newton, head of pricing at Lex Autolease. But he takes an opposing view on its impact on LCV residuals, arguing: “As GDP rises, so demand for new vehicles from corporates will increase and demand for used vehicles from SMEs will also rise. As a result, with the UK economy continuing to emerge from recession there will be a positive impact on residual values. Increasing GDP and a continuing shortage of used vehicles will cause prices to rise.”

The most pessimistic outlook came from James Davis, director of commercial vehicles at Manheim Remarketing, who believes that during the course

UK new LCV registrations 2000-2015 and supply gap

Source: BCA

fleetnews.co.uk/fleetvan December 2013/January 2014 17

Remarketing Residual values

UNDER THE HAMMER George Alexander, chief editor, Glass’s Commercial Vehicle Guide Throughout 2013, the marketplace delivered a consistently strong message highlighting that demand for used light commercial vehicles has been in rude health. In addition to this positive message, the average age and mileage of LCVs being sold has finally started to fall from a high point reached over the autumn. This is very encouraging and will lead many to ask ‘can things get any better?’

The answer depends largely on whether you’re selling or buying; some traders might be asking whether things can get any worse. For vendors, with used stock in such short supply, the pressing need will be to maximise returns from fewer LCVs. Further, what vans and pick-ups are released into the market will be significantly older, harder used and with more miles. The consequence for buyers is that they might be asked to pay more for less.

“The one-sided character of LCV remarketing should swing back into equilibrium” Prospects for the first half of 2014 are encouraging. Any effort taken in speculating as to just how long these buoyant market conditions are likely to prevail should be redirected toward implementing actions that ensure they are long lived.

Buyers have proven steadfast in their desire to mop-up used light commercial vehicles. Now, both retail and trade buyers find themselves having to scurry about in order to acquire LCVs that not so long ago would have been passed over as being below par.

Accordingly, vendors would be best advised to tread carefully when anticipating what the market can bear and set reserve prices at sensible levels that permit market sentiment to drive the process.

With registrations of new LCVs growing, it’s reasonable to surmise that by mid-year, the supply of quality used stock generated by these new sales will have increased.

At that point, the currently one-sided character of LCV remarketing should swing back into equilibrium or possibly towards becoming a buyer’s market.

Hopefully, if all play their part and act in ways that promote market stability, then demand for used LCVs will continue to grow. Therefore, this could drive LCV prices to fresh highs, which dependent on your point of view will either be a good or a bad thing.

18 December 2013/January 2014 fleetnews.co.uk/fleetvan

of the year values could dip by up to 10%.

He said: “Competition for all used LCVs has not been this fierce in a long time. Panel vans remain very popular at auction yet, with a record number of them being more than 60 months old, this analysis needs to be accompanied by a word of warning. Rising van prices can’t continue indefinitely.

“Despite the seasonal bounce back in average selling price during the autumn, we’re seeing a record proportion of older, higher-mileage vans coming to auction in recent weeks. Couple this with the fact that stock levels remain low at present, and it’s easy to see why prices are strong right now.

“Putting this into context, the average price of a van at auction in September was £4,253, an increase of around 5% from the previous month, which is remarkable.

“This artificial high cannot continue and I expect values to realign by as much as 10% in the first half of 2014.

Market forces can’t be ignored and these strong values will not continue indefinitely, as we will inevitably reach a natural tipping point.”

Auction giant BCA believes that the outlook into 2014 is “at best more of the same” with Duncan Ward, general manager – commercial vehicles, forecasting that supply into the used market could worsen.

He said: “There was a significant drop in new van sales between 2008 and 2009, and that will be reflected in the volume of used vans reaching the wholesale markets in 2014.”

In fact, the used LCV stock shortage could remain for some time, according to Professor Peter Cooke, writing in the 2013 BCA Used Car Market Report.

He highlighted that a ‘used LCV supply gap’ had opened up over the past few years (see graph, page 17) and, assuming that historically supply and demand were in broad equilibrium, there was a potential shortage of younger used LCVs in the region of 300,000 units, which would take several years to flush through the system.

Professor Cooke said: “While the exact size of the LCV used supply

gap may be open to discussion, the fact it exists and cannot be filled quickly is significant. There is no way used vehicles can be conjured up overnight.”

Ward added: “With stock remaining in very short supply and with the prospect of retail demand for used LCVs increasing alongside the generally improving broader economic picture, the market could experience a double whammy of rising demand and falling supplies.

“Our view is that the overall shortage of used product and the issues of supply versus demand will see a continuation of high conversions and higher selling prices in 2014, effectively meaning we are going to see more of what is best described as a ‘sellers market’.

“While this sounds like great news for vendors, the situation must be approached rationally and sellers

“Competition for all used LCVs has not been this fierce in a long time” James Davis, Manheim remarketing

BCA warns that supply of vans into the used market could worsen must continue to deliver on all the a steep reduction in van registrations four years ago. He suggests basics. The usual rules still apply and damage management, prethat the vans most in demand will sale preparation, appraisal and be those with the best internal specification, saying: “Items like sensible valuation remain as important as they ever were.” sat-nav and air conditioning are Alex Wright, managing director of holding their original value well as LCV drivers seek a more car-like Shoreham Vehicle Auctions, experience.” believes a price ceiling may already Meanwhile, Alexander believes have been reached. that there could be a He said: “We cannot re-balancing of the see them going much age at which some higher unless they are vans are defleeted. on vehicles that are in average vale of vans Values for late-plate, very short supply. In sold at BCA in low-mileage vans 2014 there will be a September 2013 should be soaring, but shortage of unique Alexander said: “Many vehicles which could dealers remain reluclead to a spike in tant to take on too prices.” much of this stock at a He predicts that niche average vale of vans time when business vehicles such as Lutons sold at BCA in confidence is fragile.” will be in “extremely September 2012 He believes first small supply”, but also owners would be well in demand as sectors advised to extend ownership of the UK economy such as periods, particularly as the latest construction grow. Consequently, generation of vans and pick-ups are Wright said: “This is where we could built to a high standard and capable start to see the unpredictable result of giving reliable service over a of higher prices.” prolonged period to a high mileage.

James Hopkins, LeasePlan’s The strength of demand for head of remarketing, also believes almost every ‘clean’ LCV – despite used LCV values will continue to an average increase in age and remain strong next year with supply mileage by seven months and 5,120 continuing to be tight – the legacy of

£5,128

£4,224

YEAR-ON-YEAR TABLE: ALL VANS SOLD AT BCA All vans Avg age (mnths) Avg mileage Avg value Sale vs CAP Sept 2012 57.93 78,805 £4,224 100.72% Sept 2013 59.33 80,217 £5,158 105.19% Source: BCA miles respectively over the past 12 months – has shone a light on previously accepted best-practice and questions the wisdom of always operating vans on short cycle.

Alexander said: “There will always be some fleets that short cycle, but there will be some businesses that have the right vehicle in harness, specced specifically for them,, that have learned over the past three or four years that there is merit in running a van for longer.

“The used market will then respond positively and there will not be a glut of late year vehicles that no one wants.”

The view that higher value vehicles are proving tough to sell is shared by CAP which says: “Most makes and models up to the £2,500 mark appear to be selling easily while the late-plate higher value entries seemed to struggle with many selling provisionally, if at all.

“Close analysis of sales results

clearly indicate a strengthening of demand for vehicles in the sub-£3,000 price band while those in the higher price bands appear to be weakening. Anecdotal evidence suggests that potential retail buyers are still having difficulty obtaining funding for higher-value vehicles.”

Cattlin said: “Dealers are seeing their margins being eroded. They are paying premium values for stock and customers are not prepared to pay that price.”

Alexander added: “With lacklustre sales of new LCVs over the past few years, there is little hope that plenty of desirable late year lots will be appearing at an auction.

“Therefore, the most attractive used stock will remain in extremely short supply and continue to command prices that often squeeze dealers’ margins to breaking point.

“This necessitates that older, higher mileage vans must be remarketed to their full potential.”

fleetnews.co.uk/fleetvan December 2013/January 2014 19

Environment Electric vans

ELECTRIC VANS: ARE THEY THE FUTURE FOR LCV OPERATORS? Industry opinion divided on whether technology can overcome issues

T

By Trevor Gehlcken he principle of electric vans as an alternative for some applications in fleets is a sound one – zero tailpipe emissions, low running costs and silent operations for night-time work.

The reality, however, is somewhat different.

Despite the Government offering various incentives to fleets which buy into electric vans and promises of more and more charging points throughout the UK, the vast majority of van operators are still wary of explororing the technology.

According to the Society of Motor Manufacturers and Traders, just 1,022 have been registered so far this year, compared to a total market of 227,427 for vans up to 3.5 tonnes gross vehicle weight.

So with these facts in mind, is electric power ever going to be a credible alternative – or will this green form of

BELOW: The Emerald T-001 hybrid van has returned 232mpg fuel economy in tests

transport end up as just another dead end in the road for alternatives to the internal combustion engine?

The answer to this question very much depends on who you ask. Manufacturers such as Renault, which has invested millions of pounds into launching new electric vehicles, give an upbeat answer – and so do experts at CENEX, the Centre of Excellence for Low Carbon and Fuel Cell Technologies, although it must be remembered that both have a very particular axe to grind in this area.

Turn to the residual value experts at CAP and Glass’s and a very different story emerges. They see electric power as an unknown quantity and, at auction, such vehicles often fail to sell on to second owners.

John Watts, senior editor commercial vehicles at CAP, said at the recent Fleet Van Summit: “Never has so much been spent by so many to sell so few.”

So, why have so many fleets ignored the benefits of electric vans and what can be done to persuade them to encourage their take-up?

Renault is very much in the forefront of electric technology, having launched the Kangoo ZE electric van in 2011.

Ben Fletcher, product manager, electric vehicles at Renault UK, says: “Electric technology represents the best option for several reasons – it offers the greatest performance per pound in terms of CO2 reduction, gives an impressive driving experience, especially in terms of comfort and refinement, and the infrastructure to support it is the easiest to put in place.

“It’s hard to think of a street or building that doesn’t already have an electricity supply running under or to it already.

“For all those reasons, electric vehicles have many things going for them which make them a practical and economical alternative to diesel vehicles and the best route forward to meet environmental commitments for the future.”

So what can manufacturers do to help alleviate fears

Emerald hybrid offers payload of 1,400kg and 232mpg The problem with new technology is that before long it becomes old hat as fresh ideas come to the fore.

It seems likely that until the range problems of electric vans can be overcome, these vehicles are destined to remain a very small niche in the LCV market.

But waiting in the wings are a new set of hybrid vehicles that, while not exactly promising zero tailpipe emissions, offer

much more in the way of environmental friendliness than any conventional diesel ever will.

And as long as front-end prices can be kept at a reasonable level, UK fleets may well opt for such vehicles.

The main contender at present is the Emerald T-001, which was designed in Britain and will be built in the USA. It is due to go on sale in 2014.

The Emerald is unique in the

20 December 2013/January 2014 fleetnews.co.uk/fleetvan

world of LCVs. It runs on an electric motor, which is supplemented by a small diesel engine when the power gets low, thus solving the range problem that dogs fullelectric vans.

But the difference between this and other hybrids is that the diesel motor doesn’t power the wheels – it is purely there to top up the battery.

It kicks in when battery power

gets down to 25% and turns itself off again when the battery is restored.

It simply thrums away at 2,000rpm in the background and no driver input is required.

So far in tests, the van has returned 232mpg and travelled more than 400 miles on a sixgallon tank of fuel, while emitting just 31.4g/km of CO2.

Payload is 1,400kg and load volume is 5.2 cubic metres.

Renault has made a huge investment in electric vans with the Kangoo ZE among potential buyers? Fletcher says: “The important point is to make sure that prospective customers have easy access to the information they want – and that it’s easy to find.

“We’ve done a lot of work on our website to help answer questions quickly and easily and the dealer network has been thoroughly trained in order to help them deal with queries efficiently.

“However, for me, the best thing that can be done is to get people behind the wheel of the vehicles so they can experience them for themselves. We can give as many numbers as possible, but that’s when people can see just how capable the technology is and what a great opportunity it really presents for them and their business.”

Nissan is due to launch an electric version of the NV200 next year. Barry Beeston, Nissan corporate sales director, says: “We have chosen to invest heavily in electric technology because we feel one of the best ways to address the problem of pollution is simply not to produce any tailpipe emissions at all.

“Major fleet customers have already tested our e-NV200 van all over the world and they’ve seen the benefits, both in terms of corporate social responsibility and greatly reduced running and maintenance costs. Company van drivers have also fed back how smooth and quiet the e-NV200 is, which is important when it is being used as a daily business vehicle, often in built-up areas.”

Beeston believes the major reason for the relatively slow take-up of electric vans has not been the vehicles themselves, but the lack of infrastructure.

1,022

electric vans have been registered so far this year

227,477

vans (3.5-tonne gvw) have been registered so far this year

Nissan’s e-NV200 electric van is due to be launched next year

However, with British Gas now offering free residential charging point installations, businesses and the public in general are becoming more educated and confident about EV technology.

Beeston says: “This, coupled with the further rollout of rapid chargers, means buyers can be confident of always being able to find a local and fast charge point. The future is bright for electric vans.”

It is perhaps a telling sign of the huge investment needed or, at least, a reliable and well-funded partner that Ford, the UK’s largest seller of vans, does not offer an electric alternative after the demise of the Azure Dynamics Transit Connect Electric.

Phil Hollins, Ford of Britain’s fleet director, says: “As the UK infrastructure and overall understanding of electric vehicles improves, there is more interest in electric vehicles than ever before.

“Ford concentrates on offering our customers the choice between the most fuel-efficient petrol, diesel and electrified powertrains, recognising that until battery technology improves, it is unlikely to tick all the boxes for a fleet buyer.

“Currently, Ford does not have any plans to introduce an electric van into the market as it remains a niche, immature market which we will watch for future growth and development.”

At Hitachi Capital Commercial Vehicle Solutions, Steve Winter, who works closely with British Gas as an engineer, says: “The take-up of electric vans has been slow for a couple of reasons. Firstly, having tested the available vehicles, the performance and range can be massively affected by factors including payload available and ability to heat the vehicle. Furthermore, loadspace can be compromised versus internal combustion engine vans, making them inappropriate for some operators as working vehicles.

“The development of electric vans from the ground up will address these concerns as they will have been been designed specifically as an EV rather than adapting an older chassis.

“In addition, the charging network infrastructure has not been widely available. However, this is changing with more home and commercial charging points being installed nationwide on a weekly basis by our partners Centrica.

“A more expansive and faster charge network is essential to making these vehicles viable for daily usage.”

fleetnews.co.uk/fleetvan December 2013/January 2014 21

Fleet case study Medequip

IMPORTANCE OF AN OPEN-BOOK RELATIONSHIP Medequip uses strong relationships to meet its requirements and get the best for its fleet

G

By John Charles overnment policy to deliver more health care and services into people’s homes coupled with an increasingly ageing population is triggering continuous expansion for one business, which has seen its fleet increase by 20% this year.

A focus on putting the convenience of patients first and moving a wide range of services towards them, while reducing so-called ‘bed blocking’ in hospitals, means that Medequip currently makes 500,000 home visits and moves around one million items of equipment a year.

However, both figures are set to rise significantly with the Government calling on local councils to help health and social care organisations to work together to meet people’s needs – including children’s paediatric services – which it says are often catered for better at home rather than in hospital or another institution.

Medequip, working out of 15 depots, requires specially-equipped vans selected on a wholelife cost basis to service its present 41 contracts.

It currently has 302 vans, 98% of which are Ford Transit long wheelbase high roof models supplemented by Luton Transits and Transit Connects.

Hopes are high that the company will win at least three significant new contracts that could collectively see a further 50 to 60 vans added to the fleet and turnover rise from £92 million last year to more than £130m.

Working with the NHS, social services and national charities, Medequip provides medical, mobility, sensory, housing adaptations, hoisting and lifting equipment to assist people to remain independent in their own homes.

For the past eight years, it has worked with

“I am continually studying the market to see what is being developed and the benefits that might accrue to the fleet” Colin Wells, Medequip

Hitachi Capital Commercial Vehicle Solutions to deliver its vans and fleet management requirements to enable the company to carry out its work in storing, servicing, delivering and recycling homecare medical equipment.

This year Medequip added 54 specially-modified vans to its fleet after winning new contracts with Birmingham City Council and Staffordshire County Council and Stoke-on-Trent City Council.

The contracts were in areas of the country where the company had no infrastructure, employees, depots or vehicles. With 10 weeks for 54 vans to be ordered, modified and supplied – 14 weeks is invariably the lead time norm – the stops were pulled out.

Client loyalty has key role to play Medequip fleet manager Colin Wells said the key to the company’s fleet partners – Ford and Hitachi Capital – meeting the tight contract requirements was client loyalty and an ‘open-book’ relationship.

“Ford was able to deliver the vehicles and Hitachi Capital managed the modification process so the contract could be started on time,” he says.

“What was achieved was phenomenal and unprecedented by volume, but is down to the partnership we have.”

In an industry when some fleet managers swap suppliers to save a couple of pounds, Wells highlighted an example of how loyalty pays.

He says: “The current Transit model that is the staple of our fleet is being discontinued and the replacement will not be available until Q2 next year. If we are successful in winning new contracts, Ford has promised to scour the country to find vehicle chassis to meet our requirements.

That is about relationships.”

Although Wells regularly surveys the market to ensure optimum vehicle selection is maintained, he is confident the relationship with Ford means the manufacturer will meet its promise and, critically, the new model will deliver engine stopstart, low CO2 emissions and performance versus payload benefits that meet the company’s environmental agenda.

“Reducing our carbon footprint is of paramount importance and the van fleet we have is as ‘green’ as it can be while also meeting our businesses requirements. Electric vehicles are very expensive and, operationally, are currently not a viable proposition,” he says.

22 December 2013/January 2014 fleetnews.co.uk/fleetvan

98% of Medequip’s 302-strong van fleet are Ford Transit long wheelbase high roof models Further advancing Medequip’s carbon footprintcutting agenda – as well as its occupational road risk management focus – is the fitting of tracking to all vehicles.

A new system means that in the future a raft of additional information will be available linked not only to vehicle routing and journey planning, but to fuel usage and driver behaviour behind the wheel with actions including acceleration, braking, cornering and vehicle idling all measured.

The tracking technology also interfaces with Medequip’s fuel card system so that a van must be on a forecourt for refuelling to occur. The system means fuel fraud is impossible.

The recording of such driver behaviour data underlines Medequip’s duty of care focus that includes driver licence validation, vehicle inspections and all new drivers undergoing five examinations before they take to the road: an online risk assessment, safe vehicle loading and unloading linked to best practice initiatives produced by the Freight Transport Association (FTA) and two vehicle inspection tests, also linked to FTA best practice.

Meanwhile, Medequip is presently identifying a ‘driver champion’ at each of its 15 depots to act as Wells’s ‘eyes and ears’ in terms of ensuring best practice is followed by drivers on the road and any vehicle defects are highlighted.

Wells says: “I manage the whole fleet, but at each depot we have an employee at supervisor level with the authority to take action if any issues identified are below the standards we set.”

Next year Medequip is looking to join the FTAmanaged Van Excellence scheme. Wells says: “We are part of the ‘white van man’ community, but the regime we operate on a day-to-day basis is more compliant than that recommended by the FTA and required by VOSA (Vehicle and Operator Services Agency) for HGVs.” Medequip believes its ability to demonstrate such strict compliance in the unregulated light van sector has been crucial in helping it win new contracts.

Vans are operated on five-year/100,000-mile contracts. However, in the pursuit of flexibility and to reflect operational changes that may be required when servicing business contracts, the company is investigating the policy of three-year deals with the option to extend terms or return vehicles as required, thus avoiding unwanted vehicle syndrome, which can prove expensive.

Each van added to the Medequip fleet undergoes major modification prior to introduction, which is a process that has been refined over the years and is under constant review as new solutions and techniques are brought to market.

Colin Wells: ‘reducing our carbon footprint is of paramount importance’ Rob Lindsay, BBFS driver risk manager: ‘telematics has had a very positive effect on the way people drive’

Ensuring vans are fit-for-purpose A time-intensive process involving multiple suppliers, the modifications, in addition to vehicle tracking, include: n Reversing cameras, audible reversing bleepers and parking sensors fitted to reduce parking damage and increase safety around the vans in urban areas. n Driver recording cameras installed to ensure accurate accident reporting and increase quality of driving. n Speed limiters to ensure vans are driven as fuel efficiently as possible: critical when the company’s diesel bill will be more than £1m this year.

The rear of the van is then kitted out with a composite spray lining to a very precise specification which seals the inside of the vehicle, eliminating dirt traps and creating a hard-wearing hygienic surface.

Once the spray lining has set, load securing rails are attached to the walls to ensure safe transport of products and a dividing plastic curtain is fixed to separate the clean from the contaminated products. Finally, vehicles are liveried.

Medequip is not following the trend adopted by some fleets of re-using added features in new vehicles when vans are defleeted.

The specialist operational requirements of the vans mean that vehicle downtime must be kept to a minimum so planned and unplanned service, maintenance and repair work is carried out either by mobile mechanics at Medequip’s depots or nearby garages out of hours.

“I am continually studying the market to see what is being developed and the benefits that might accrue to the fleet,” says Wells.

“But we have our preferred suppliers. We have strong relationships with those suppliers built up over the years. I want them to have an acceptable margin, but we operate an open book policy with Hitachi Capital and together we can achieve the best for Medequip.”

fleetnews.co.uk/fleetvan December 2013/January 2014 23

Spotlight Ford

‘YOU HAVE TO WORK HARD TO STAY AT THE TOP’ Phil Hollins on why Ford continues to lead the UK’s van market

T

By Trevor Gehlcken he problem with being king of the castle is that there is always someone trying to take your crown.

In the case of Ford, which has been the leader of the light commercial vehicle sector in the UK for 47 years, the past few years have seen an increasing number of incredibly good vans launched by its rivals who are all eager to take a bigger slice of the fleet cake.

To counter this, Ford has launched the biggest van programme in its history, which will see it replace its entire range with new models within a space of two years.

At a cost of billions of pounds, the manufacturer is in the process of launching 25 new car and van models from 2011-2015.

So why has such a massive investment been made?

“Ford has led the UK commercial vehicle market with the Transit for more than 47 years and the plan is to stay at the top,” says Phil Hollins, Ford of Great Britain fleet director.

“This latest investment will see the complete redesign of the CV range by 2014, introducing cutting-edge products with best-in-class practicality, efficiency and driving dynamics and all at a competitive price for our customers.

“Our global ‘One Ford’ strategy is also key and making vehicles available worldwide where applicable has led to concurrent Transit two-tonne launches in Europe and the US.” Ford’s efforts so far have paid off. The new Transit Custom was named International Van of the Year in 2013, the Transit Connect won the title for 2014 and the Ranger was crowned Fleet Van commercial vehicle of the year last year.

Hollins says: “We are absolutely delighted with the response to the newest additions to the CV range – the Transit Custom and new Transit Connect – especially winning back-to-back International Van of the Year awards.

“The awards have rewarded Ford’s R&D teams based at Dunton Technical Centre in the UK for thousands of hours spent with van drivers, fleet managers and sales

Transit Connect is the 2014 International Van of the Year

staff to discover which vehicle features are most desired by customers.

“The invaluable feedback gained together with Ford’s highly-skilled design and engineering teams have combined to deliver new products which are superb in both form and function.

“We couldn’t have asked for a better start in the UK, with the Transit Custom having sold more than 10,000 units so far this year.”

Ford does not actually build vans in the UK any more, but that doesn’t mean that Britain is left out of the manufacturing process.

Hollins says: “Ford of Britain employs nearly 14,000 people in the UK and supports a further 80,000 jobs around the country.

“Manufacturing plants in Dagenham and Bridgend produce more than 1.5 million engines a year, powering Ford cars and commercial vehicles globally, and joint venture Getrag-Ford in Halewood produce more than 500,000 transmissions a year.

“The Dunton Technical Centre in Essex is the European Centre of Excellence for powertrain and for commercial vehicles, with 3,500 highly-skilled designers, engineers and support staff responsible for the brilliant new Transit family.”

New Transit launched in 2014 While the models launched so far are important, the big one comes next year when the new large Transit goes on sale.

Hollins says: “Both Ford staff and customers are all very excited at the arrival of the new Transit. The new model will once again raise the bar in the segment, offering best-inclass fuel economy and loadspace, which are the two main criteria for customers buying this size of van.

“The vehicle has undergone longer and harder durability testing that any previous Ford vehicle, to make sure that it’s fit for purpose and remains Britain’s most reliable van. As well as the panel van, there will be Transit chassis cab and tipper variants available, further extending our product range for fleet buyers.”

New Transit will be unveiled at the CV Show in April 2014.

Next year also witnesses the launch of a new Courier, which will fit in between Connect and Fiesta Van. At present, Ford does not have a contender in this sector.

“Currently Ford dominates the car-derived van segment with Fiesta Van, taking almost 60% of sales for the year-todate, and expects significant share growth in the small van segment with the introduction of the new Transit Connect next year,” says Hollins.

“There was an opportunity for Ford to enter into a new segment to create some competition with rivals and the new Transit Courier is the perfect van for businesses looking for a downsized vehicle with very low running costs. It will arrive in the sub-compact van segment next year, offering

24 December 2013/January 2014 fleetnews.co.uk/fleetvan

10,000 number of Transit Customs sold in UK so far this year

21.5%

Ford’s current share of the CV market in the UK

“Ford continues to invest in the design and engineering of commercial vehicle products. We only have ambitions to grow” Phil Hollins, Ford

customers 10% more space than its closest competitors with the dependability which comes with the Transit brand.”

This year Vauxhall lost its No2 slot in the van sales charts to Volkswagen, which is creeping ever close to Ford as the year progresses. So how worried is Hollins that the German rival could eventually catch up with Ford?

“It’s true that when you’re at the top, you have to work extra hard to stay there,” he says.

“Importantly, Ford continues to invest in the design and engineering of commercial vehicle products, demonstrated by the introduction of four new vans in just two years.

“Ford’s share of the CV market in the UK is currently more than a fifth at 21.5% and with the introduction of these new best-in-class vehicles, we only have ambitions to grow.

“Ford expects a growth of global industry CV sales by 4.8 million during the next few years to 21m units annually by 2017, and with our global products we plan to be a large part of that growth.”

Why does Hollins think Ford has led the market for so long? “One of the key reasons is the trust and reliability of the Transit,” he says.

“As voted in the FN50 [Fleet News’s listing of the UK’s 50 largest contract hire and leasing companies] survey for the past two years, Ford manufactures the most reliable vans and a reliable van will reduce a fleet’s wholelife costs.

“As well as offering reliable products at competitive prices, Ford has always been accessible to its customers.

“Ford continues to operate the largest dealer network in the country with more than 530 dealerships spread out from coast to coast, and is launching 100 specialist Transit Centres by the end of next year.”

Phil Hollins: overseeing a multi-billion investment in new models

Improved fuel economy and CO2 emissions Ford has certainly taken a great deal of trouble to make its vans both environmentally-friendly (with the launch of a range of Econetic models) and safe (electronic stability control, is standard across all models).

Hollins said: “Ford Econetic models exist to offer fleet buyers the best fuel economy, with the lowest emissions.

“The new Transit Custom Econetic is powered by Dagenham’s new 2.2-litre Duratorq diesel engine which offers best-in-class fuel economy of 46.3mpg and CO2 emissions of just 162g/km.

“Many fleets will take environmental impact into account but often fuel economy figures and wholelife costs are the key purchase considerations for the majority.”

He adds: “Safety is Ford’s number one priority. We have a history of leading in safety, being the first manufacturer to make ESP standard on all Transit vans in 2007 and, prior to that, ABS in 2003.

“The new Transit Custom achieved a segment-first five-star Euro NCAP rating last year and with the introduction of Active City Stop on new Connect we continue to raise the bar.”

fleetnews.co.uk/fleetvan December 2013/January 2014 25

D r i v e n F o r d Tr a n s i t C u s t o m To u r n e o L 2 2 . 2 T D C i

Transit Tourneo is based on a long wheelbase Transit Custom

Three vehicles for the price of one Nine-seat Tourneo is an extremely versatile vehicle Need to know n 155hp with fuel-saving technology n Combines space with passenger comfort n Passenger seats can be removed

T

By Trevor Gehlcken he new Ford Transit Custom has already won numerous awards since its launch this year for its superb build quality compared to the old small Transit and the guys at Dunton in Essex have been busily rolling out new variants to cater for every possible business taste.

This model, the Tourneo, offers nine seats – and that’s nine seats with plenty of legroom, not for nine contortionists with their legs wrapped round their necks.

It’s based on a long wheelbase Transit Custom so shouldn’t be short on room, but we still can’t quite work out how Ford managed to get so much space in such a relatively small vehicle.

I reckon it must have been in touch with Dr Who’s Tardis designer.

Even with all the seats up, this van has a load volume of 2.5 cubic metres – nearly as much as is offered in the smaller Transit Connect.

However, this model is not cheap. In fact, with all the extras that were loaded on, it weighed in at £29,400 (excluding VAT).

On the plus side, you get an awful lot for your

money. The Tourneo comes with twin sliding side doors, carpets throughout, front and rear parking sensors, cruise control, alloy wheels, body-coloured bumpers and a host of other equipment that you rarely see on a standard panel van.

As with all Ford vans, the Tourneo gets electronic stability control (ESC) as standard.

The practicality comes from the fact that you can remove all the seats, so this could be a van one day, an upmarket minibus for transporting executives another and a mixture of the two on yet another day – kind of like three vehicles rolled into one.

Under the bonnet is Ford’s familiar 2.2-litre TDCi turbodiesel unit which offers a lively 155bhp and 284lb-ft of torque.

This van carries an Econetic badge, which means it features various technology such as auto stopstart and a 70mph speed limiter to improve fuel economy.

The official figure is an impressive 43.5mpg on the combined cycle.

However, if you load this vehicle up with passengers or make free use of all that horsepower on offer, that figure is likely to suffer dramatically.

Verdict

Ford’s new mid-size panel van is destined for great things. And with variants like this on offer, even more fleets will now find a use for it.

26 December 2013/January 2014 fleetnews.co.uk/fleetvan

Behind the wheel We’ve already raved about the new Transit Custom in previous issues of Fleet Van. Build quality is a quantum leap forward over the old Transit and general smoothness, ride and handling are excellent.

But the Tourneo is something else.

With its full-length carpeting and quiet engine, it’s more like driving a large MPV than a van.

We were also amazed at how much legroom there is.

Middle seat passengers can almost stretch their legs right out, while there’s also more than enough room in the third row.

And with all the seats being removable, some fleets could well replace a van and a car with this single vehicle.

However, to get those seats out is nigh on impossible for one person.

It’s a two-man job – and then you have to find somewhere to store them. Putting the seats back in is even trickier.

We were particularly impressed with the rear parking camera.

When the van is put in reverse, part of the rear-view mirror becomes a little display showing what’s behind.

Unfortunately it was part of a premium visibility pack which comes at £1,182, meaning it would need to prevent a few accidents before it paid for itself.

All seats provide plenty of legroom

Specification Gross vehicle weight (kg): 3,000 Power (bhp/rpm): 155/3,500 Torque (lb-ft/rpm): 284/1,600 Load volume (cu m): 2.5-6.8 Payload (kg): 902 Comb fuel economy (mpg): 43.5 CO2 emissions (g/km): 172 Price (excl-VAT): £29,400

Dr i ven F iat S cudo Crew v an L 2 13 0 Comfor t

Scudo crewvan Xpxpx impressed pxpxpxpxp with xpx its style, grace andxpxp practicality xpxpx xp xp xpx px xp px xp xpxp xpxp

Crewvan puts Fiat in with the in-crowd Full bulkhead gives occupants a safer, upmarket cabin Need to know n Crewvan offers seating for five n Cargo capacity of 3.6cu m n Fuel economy of 40.4mpg on combined cycle

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By Trevor Gehlcken rewvans seem to be the latest ‘in’ thing in the LCV market at present, with most of the major manufacturers now offering models with extra seating.

It’s not difficult to see why they are so popular – the idea of being able to carry five people yet also a good load of cargo is a tempting one as it could actually mean buying one van instead of two.

The Fiat Scudo is the latest model to offer a crewvan variant, but this vehicle differs slightly from others we have tested lately in that it has a full bulkhead with a window between the rear seats and the load area.

The downside of this is that you can’t take the rear seats out as with some other models to increase the loadspace. But it does mean that the cab feels more upmarket as well as quieter, as there is less sound intrusion from the load area. It also offers more protection against loads in the back.

For those who want a more utilitarian set-up with removable seats, there is a Kombi version available which fills this need.

Our test model is the long wheelbase version, which weighs in at £20,595 ex-VAT. This has seating for five and also a reasonable cargo volume of 3.6 cubic metres in the back.

There’s also a short wheelbase variant available at £19,795, but obviously there isn’t as much room in the smaller model.

Under the bonnet is a PSA 2.0-litre common rail turbodiesel engine badged Multijet to fit in with the Fiat family of engines. It offers 130bhp and 236lb-ft of torque, and returns official fuel economy of 40.4mpg on the combined cycle.

Verdict The cabin has a fully-adjustable driving seat and plenty of storage compartments

The Scudo is a good-looking van which won’t disappoint. This version is a great way of moving around both cargo and people at the same time and with around 40mpg on the cards, it will put a smile on the finance director’s face too.

Behind the wheel The Scudo is one of those vans that has rather hidden its light under a bushel for many years.

You see plenty of them about on the roads – along with its twin brothers the Citroën Dispatch and Peugeot Expert – but they very rarely seem to win the plaudits they deserve.

It’s a pity, as while this van doesn’t shine in any one area, it doesn’t do anything badly either – and this version impressed us with its style, grace and practicality during our test week.

There’s an overhead parcel shelf and a coffee cup holder for the driver and various other storage compartments.

The crewvan also features a wipe-clean plastic floor, which is handy if passengers happen to have muddy boots.

The solid bulkhead means that passengers in the rear seat have restricted legroom and anyone more than six feet tall will have trouble getting comfortable.

In the rear, there are six load lashing eyes and our van was fully ply-lined, which is a must in the Fleet Van book of LCV management as it means that it will be pristine in the back when it comes to remarketing, a sure way to improve residuals.

Our van also had reversing sensors fitted at £150, which are well worth the extra cost.

As well as reducing reversing incidents, they also help to boost residual values.

Electronic stability control is available as a £370 option.

The engine fires up smoothly and quietly. Progress is adequate and cornering feels safe.

There’s certainly no shortage of power, even with the vehicle fully loaded.

Specification Gross vehicle weight (kg): 2,880 Power (bhp/rpm): 130/4,000 Torque (lb-ft/rpm): 236/2,000 Load volume (cu m): 3.6 Payload (kg): 1,067 Comb fuel economy (mpg): 40.4 CO2 emissions (g/km): 183 Price (ex-VAT): £20,595

fleetnews.co.uk/fleetvan December 2013/January 2014 27

Dr i ven Citroën Rel ay e-HDi 13 0

Eco Relay tuned for increased efficiency New variant delivers improved economy and lower CO2 Need to know n Engine tuned for economy boost to 39.2mpg n Upgraded Trafficmaster system features 4.5-inch colour screen

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By Trevor Gehlcken he economy may well be travelling in an upward trajectory at present, but most van fleet operators are still felling the financial pinch.

In an effort to ease the burden, various manufacturers are rushing to market with eco models offering improved fuel economy and lower CO2 emissions –­and Citroën is no exception.

The “e” in the e-HDI part of the model name on test here signifies that various modifications have been effected to the engine to achieve a few more miles out of each litre of fuel.

In the case of this model, a stop-start system helps increase the official fuel economy figure to a respectable 39.2mpg.

This Relay variant is the smallest in the model range, offering a loadspace of 8cu m and payload of 1,140kg.

“A stop-start system helps increase fuel economy to 39.2mpg”

Cab gives a commanding view of the road It offers as standard ABS, driver’s airbag, a ladder frame bulkhead behind the driver’s seat, electric windows and an MP3-compatible CD player.

There is also a unique Trafficmaster sat-nav and stolen tracking device which has been upgraded to feature a larger colour screen. Electronic stability control is available as an option.

Our test model was fitted with the Enterprise pack, which adds air-conditioning, Bluetooth connectivity, rear parking sensors and a full steel bulkhead to the standard specification at an extra cost of £900.

The van’s ex-VAT price is £19,860.

Verdict

The Relay is a delight to drive and now an even more cost-effective package in this efficient format. A win-win situation for both drivers and fleet operators

Behind the wheel I’ve driven many of these vans since they were launched – in all three formats from Citroën, Peugeot (Boxer) and Fiat (Ducato) – and each time we get one on test, I am impressed at just how practical, comfortable and drivable it is.

It’s a big step up into the cab, which gives a commanding view of the road ahead, and the seats are as comfortable as in any van I’ve tested, hugging the figure from neck to knees and giving firm support to the back.

There’s also a height adjustment on the driver’s seat and adjustable steering column so just about everyone should find a comfortable position.

There is plenty of in-cab storage, including an overhead shelf, and the back of the middle seat folds down to make a handy desk. There’s also a pop-up A4 document holder on top of the dash.

The free Trafficmaster unit is a far cry from the original mono screen versions.

These have been upgraded in size to a 4.5-inch colour screen.

As some manufacturers charge up to £1,000 for a built-in sat-nav system, that’s not a bad freebie in anyone’s books.

It includes a call-up facility where drivers can speak via the unit directly to a member of staff at Trafficmaster headquarters to find out information such as the direction of the nearest filling station.

On the road, the Relay is a delight to drive with an ultra-light clutch, nicely-weighted power steering and a very tight turning circle for urban deliveries.

Being an eco model we were expecting a dearth of power, but with 130bhp on tap there’s no shortage of oomph, even on the hills with a load on board.

Specification

Relay has an ultra-light clutch and nicely-weighted steering

28 December 2013/January 2014 fleetnews.co.uk/fleetvan

Gross vehicle weight (kg): 3,000 Power (bhp/rpm): 130/3,500 Torque (lb-ft/rpm): 236/2,000 Load volume (cu m): 8.0 Payload (kg): 1,140 Comb fuel economy (mpg): 39.2 CO2 emissions (g/km): 189 Price (ex-VAT): £19,860

Driven Vauxhall Movano 4x4

Movano 4x4 ready for the rough stuff Vauxhall van undercuts key rival by around £10,000 Need to know n Models will be made to order n Prices around £2,000 more than standard vans n Official combined fuel economy of 30.1mpg

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By Trevor Gehlcken auxhall’s latest sales strategy involves a dramatic increase in the number of off-the-shelf conversions being made available to fleet buyers.

We have already seen the launch of the Combo crewvan this year and the first examples of the macho Movano 4x4 are starting to arrive in the UK as the manufacturer aims to fill as many niches in the market as possible.

While this vehicle isn’t expected to sell in large numbers, certain fleets such as utilities, emergency services, builders and foresters will find it useful as it is one of the few large vans on the market which will cut it in the rough.

It joins the Mercedes-Benz Sprinter, Volkswagen Crafter, Iveco Daily and Ford Transit in offering four-wheel drive options.

The off-road system is made by German specialist Oberaigner and the Movanos will be converted at the factory at Laage in Germany.

Models will be made to order, which will mean a lead time of six to eight weeks, and the system will be available on all rear-wheel drive Movanos, including chassis-cabs. Prices will be around £2,000 more than standard models.

The Movano 4x4 is powered by the strongest

High and low ratios are selected by a push button on the dashboard engine in the range – a 2.3-litre common rail turbodiesel offering 150bhp and 258lb-ft of torque.

The official combined fuel economy figure is 30.1mpg.

Four-wheel drive high and low ratios are selected by a push button on the dashboard and four-wheel drive high can be selected at speeds up to 15mph.

The vehicle sits 65mm higher than regular models and features twin rear wheels.

Electronic stability control (this is switched off automatically in four-wheel drive mode) is standard across the range, while a driver airbag, ABS and a headlamp control levelling system are also fitted. Options include a Plus Pack of air-conditioning, trip computer, rear parking sensors and alarm at £1,400 and metallic paint at £440.

Verdict

Another great addition to the Vauxhall range and one which will delight certain fleet buyers.

Front-end price is likely to be a major factor in this van’s success as most rivals cost a lot more.

Behind the wheel The Movano may not quite match up to the out-and-out ruggedness of the Mercedes-Benz Sprinter and Iveco Daily, but its capabilities will be adequate for the typical UK fleet.

Also in its favour is the price, as if you want the Sprinter 4x4 it will cost you a tad over £38,000 – £10,000 more than the Movano.

You certainly won’t mistake this van for its standard brothers. As can be seen from the pictures, it sits much higher and on twin rear wheels – and it’s quite a climb up into the cab. That extra height means that the van has an impressive amount of ground clearance.

On the main road, driving to the off-road section, the drivetrain underneath produced a lot of noise and the cab was by no means quiet and refined. The suspension was rock hard too, although as this van wasn’t built for motorway cruising we won’t mark it down for that.

The seats are certainly big and comfortable – they are one of the Movano’s big plus points.

Entering our first green lane we pressed the button on the dash to engage four-wheel drive and the van’s dynamics became much more rough and tough.

ESC is automatically switched off – and to let you know that it isn’t working, the van emits a beep every few seconds. Damned annoying, in fact, but then again most drivers won’t be 4x4 experts so maybe it’s a necessary evil.

As we got to the toughest part of the course we selected 4WD low and despite lots of mud, puddles and dirt, the Movano never felt as though it wouldn’t cope. The fact that maximum torque comes from as low as 1,250rpm makes this engine feel even more powerful than it is – as it was, we never managed to push the van past its capabilities.

Specification

Movano 4x4 offers 65mm more ground clearance than standard models

Gross vehicle weight (kg): 3,500 Power (bhp/rpm): 150/3,500 Torque (lb-ft/rpm): 258/1,250-2,500 Load volume (cu m): 12.4 Payload (kg): 1,530 Comb fuel economy (mpg): 30.1 CO2 emissions (g/km): 232 Price (ex-VAT): £28,313

fleetnews.co.uk/fleetvan December 2013/January 2014 29

L o n g - t e r m t e s t Va u x h a l l C o m b o 1. 6 CD T i

Frugality is order of the day Combo combines low running costs with practicality in an impressive package Need to know n Combo shares vehicle architecture with Fiat Doblo n Full bulkhead reduces noise levels in cab n Fuel economy of 52.3mpg; CO2 of 141g/km

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By Trevor Gehlcken here has been a mix of sadness and elation at the Fleet Van offices of late. The sadness revolves around the fact that we’ve just lost our Renault Trafic Sport long-termer, which proved to be a capable and willing workhorse during its year with us.

But the elation comes from the arrival of our new longtermer, the Vauxhall Combo 1.6CDTi. For those who don’t understand what the excitement is all about, let me explain.

The Combo, under its Griffin logos, shares its architecture with the Fiat Doblo Cargo – a van so good that it was named fleet van of the year by Fleet Van in 2010 when it was first launched.

We can’t praise it highly enough. Build quality is way ahead of the old Combo – up, in fact, with the sectorleading Volkswagen Caddy – and its ride and handling characteristics are exemplary, which means that we are going to have a whole lot of fun driving it over the coming months.

The Combo won’t win any prizes on the small van catwalk – it’s rather ugly – but in the world of fleet, who cares about looks?

Practicality and frugality of running costs are more the order of the day, and the Combo offers both in spades.

Our test vehicle weighs in at £15,800 and is the long wheelbase model, which means that it’s pretty big for a small van, offering a loadspace of four cubic metres.

Specification Gross vehicle weight (kg): 2,350 Power (bhp/rpm): 105/4,000 Torque (lb-ft/rpm): 214/1,500 Load volume (cu m): 4.0 Payload (kg): 1,000 Comb fuel economy (mpg): 52.3 CO2 emissions (g/km): 141 Price as tested (ex-VAT): £15,800

“Practicality and frugality of running costs are the order of the day, and the Combo offers both in spades”

There’s a full bulkhead behind the seats for improved safety (it also keeps noise levels in the cab down to a minimum), and under the bonnet is a 1.6-litre turbodiesel powerplant offering 105bhp and 214lb-ft of torque, which translates into a lively performance on the road.

The official combined fuel economy figure is 52.3mpg and it will be interesting to see during the next six months whether we can get anywhere near that figure in realworld driving.

Once you load a van and drive up and down a few hills, it’s amazing how fuel economy can really suffer.

On the plus side, our van has ABS as standard, electric windows and air-conditioning as an option at £590.

On the downside there is no electronic stability control, which is standard on many of the Combo’s rivals, such as the Caddy, the Mercedes-Benz Citan and the new Ford Transit Connect.

There are also no electric heated mirrors and no reversing sensors.

Many of the vans we test nowadays have these handy sensors fitted and, believe me, once you get used to them, you don’t want to do without.

So far it’s early days for our new van, but first impressions are good.

Both driver’s seat and steering column adjust for reach and height, which means that all sizes of driver will manage to find a comfortable position.

The engine is proving meaty in the extreme – so lively that we’d probably recommend the smaller 1.3-litre unit with 90bhp as an acceptable choice for the majoroity of fleet purposes.

You don’t want drivers having too much power under their right foot, do you?

With lots of snow and cold weather promised this winter we have loaded our van up with scrapers, cloths and de-icer in readiness.

Long wheelbase Combo has a loadspace of 4cu m

30 December 2013/January 2014 fleetnews.co.uk/fleetvan

Van running costs

4x4 double cabs

A low front-end price keeps Great Wall Steed’s running costs down

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By Trevor Gehlcken ouble-cab pick-ups have had mixed fortunes, surging in popularity around 10 years ago as company car drivers sought to minimise BIK tax by choosing a commercial vehicle.

Back then they were taxed on a flat rate of £500 a year.

Since then the rate has been raised to £3,000 and they are not chosen in such large numbers by drivers who would otherwise have chosen a car.

Over the years, manufacturers have made great strides in improving quality, comfort and power levels.

In fact, most of today’s offerings have a much-improved ride, along with macho looks and a fair turn of speed.

This means that along with the van fleet operators who choose these vehicles for business purposes, there is also a good sprinkling of estate agents, solicitors and the like who choose them in a bid to avoid swingeing benefit-in-kind tax bills. It’s still much cheaper to have a truck than a car as a company vehicle.

Such is the popularity of 4x4 double-cabs among second users that most models command healthy residual values, although these will suffer badly if the trucks on offer have been badly treated.

The evergreen offerings in this sector are the Nissan Navara, Mitsubishi L200 and Toyota Hilux, all of which have been around now for a few years. Last year, the Ford Ranger was relaunched, along with a new contender in the form of the Volkswagen Amarok, the German manufacturer’s first foray into this sector.

We have also recently seen the arrival of the Isuzu D-Max, a muchimproved version of the old Rodeo, and the Chinese Great Wall Steed.

The only way to judge these trucks fairly against each other is to look at the pence per mile running costs and you’ll find these on our own website – www.fleetnews.co.uk/vans.

For this month’s comparison we have chosen a three-year/60,000mile lifecycle and the models selected are all midrange contenders.

“There is a good sprinkling of estate agents and solicitors who choose double cabs to avoid swingeing benefit-in-kind tax” Our analysis shows a convincing pence per mile win for the Toyota Hilux, thanks to a combination of relatively low front-end price and excellent fuel economy.

The need to judge a vehicle’s performance on running costs rather than front-end price is aptly demonstrated by the figures for the Great Wall Steed, Despite the fact that it is some £3,710 cheaper to buy than its nearest rival, it only comes second in the running costs table, thanks to worse fuel economy. It nudges in just ahead of the Isuzu D-Max and Ford Ranger.

Out on a limb and last in the table is the ageing Mitsubishi L200, which suffers from a relatively high front-end cost and high service, maintenance and repair costs.

Toyota’s Hilux was a convincing winner in this month’s comparison

RUNNING COST COMPARISON (3YR/60,000 MILES)

Toyota Hilux 4wd 2.5D-4D 144 Great Wall Steed 4wd 2.0TD 143 Isuzu D-Max 4wd 2.5TD 163 Yukon Ford Ranger 4wd 2.2TDCi 150 Volkswagen Amarok 2.0TDI 180 Trendline Nissan Navara 4wdS 2.5dCi 190 Acenta Mitsubishi L200 2.5Di-D 175 Warrior

List price (£) 19,770 15,723 19,974 19,653 22,195 19,433 20,324

Power (bhp) 144 143 163 150 180 190 175

Torque (lb-ft) 253 310 295 277 295 332 295

Load vol (cu m) - - - - - - -

GVW (kg) 3,040 2,835 3,050 3,200 3,170 3,210 2,920

Payload (kg) 1,045 1,000 3,500 1,152 3,000 2,600 2,700

CO2 (g/km) 194 220 194 206 211 222 208

Fuel economy (mpg) 38.7 34.0 38.2 36.2 35.3 33.6 35.8

Fuel cost (ppm) 16.48 18.75 16.69 17.61 18.06 18.98 17.81

Depr (ppm) 19.99 18.79 21.54 20.71 21.74 21.89 22.14

SMR (ppm) 4.16 4.74 4.25 4.49 4.25 4.34 6.48

Total (ppm) 40.62 42.28 42.48 42.81 44.05 45.21 46.42

Source: KeeResources

For more van running costs, visit www.fleetnews.co.uk/vans fleetnews.co.uk/fleetvan December 2013/January 2014 31