FleetVan B E S T P R A C T I C E F O R B R I T A I N ’ S L I G H T V A N O P E R A T O R S July/August 2012 fleetnews.co.uk/fleetvan £5 where sold
GREEN CREDENTIALS AT A PRICE
Fuel savings, but Vivaro Ecoflex has £1,100 premium
ARE YOU THE BEST IN FLEET?
Fleet Van Awards 2012 will recognise top fleets, vans and suppliers – enter now
LEASEPLAN CUTS RISK FOR FLEETS
Mark Lovett on reducing downtime and maximising efficiency
AUTOGLASS COSTS AT AN 11-YEAR LOW
Fleet manager Ged Raymond on how technology and pay-on-use maintenance saved £71,000 last year
Contact us Fleet News, Media House, Lynch Wood, Peterborough PE2 6EA. Email fleetnews@bauermedia.co.uk
Editorial Editor 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 Mark Cartwright, John Charles, Alasdair Suttie, Chris Lowndes (photographs) Production Acting head of publishing Luke Neal Production editors Andrew Ryan Alan Salt Advertising Commercial director Sarah Crown 01733 468320 B2B commercial manager Sheryl Graham 01733 468256 Account managers Lucy Herbert 01733 468800 Heidi Rogers 01733 468269 Lisa Turner 01733 468345 Marcus Woods 01733 468269 Business development manager Stuart Wakeling 01733 468342 Project managers Leanne Patterson 01733 468332 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 Publishing Managing director Tim Lucas 01733 468340 General manager Ian Richardson 01733 468555 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Printing: Headley Brothers Ltd, Kent © 2012 Bauer Consumer Media Ltd ISSN 0953-8526. No part of this magazine may be reproduced in any form without the written permission of the publisher. You can purchase words or pictures for your own publications. Phone 01733 465982 or email syndication@bauermedia.co.uk. Fleet News will not accept responsibility for unsolicited material. Editor cannot accept responsibility for statements by advertisers and contributors whose views do not represent those of the publisher. Member of the Audit Bureau of Circulation Copyright: Bauer Consumer Media Ltd
CONTENTS 4 I Best practice: Road risk management
Keeping a log of collisions and near misses is important to effectively manage road risk.
6 I Fleet Van Awards
Search begins to find the UK’s safest van fleets.
8 I Compliance: Van Excellence
FTA initiative will improve efficiency and help van fleets achieve self-regulation.
10 I Risk: accidents
A change of mindset is needed to reduce the number of incidents involving your vehicles.
15 I Environment: Euro6
NOx emissions are at heart of new legislation which arrives in 2015.
16 I Remarketing: Specification and equipment
Choose the right added features to maximise value at de-fleeting time.
20 I Cover feature Fleet case study: Autoglass
Software, telematics and pay-on-use maintenance helps Ged Raymond keep operating costs low.
26 I Industry spotlight: LeasePlan
Head of commercial vehicles Mark Lovett is looking to win van fleet business.
28 I Van tests
Citroën Berlingo, Vauxhall Vivaro Ecoflex, Ford Transit long-termer.
NEXT ISSUE – September First drive
Mercedes-Benz Citan – a new city van rival
Legislation
Operating weights – know your limits
Risk
Vehicle inspections – your driver checklist
fleetnews.co.uk/fleetvan July/August 2012 3
B e n c h m a r k i n g b y t h e F TA Ro a d r i s k m a n a g e m e nt
Measuring incidents is first step to cutting costs A log of collisions and near misses is important to effectively manage road risk Reporting near misses can prove invaluable in identifying risk hot-spots
By Mark Cartwright, head of LCVs, FTA ecently-released Government statistics revealed that, for the first time in nearly a decade, the number of deaths on UK roads increased last year, reinforcing the need for van operators to have robust processes to manage their operational road risk. It’s against this background that FTA’s Van Excellence programme sought the views of operators on how they minimised risk, what kind of changes they’d made and, crucially, what had produced the best results. Not surprisingly, all respondents had processes to record their on-road collisions with most citing well-established procedures to capture the facts around the incident, including driver interviews. Less encouragingly, however, was that only around 20% had processes to identify near misses and even then there was concern that the level of reporting was patchy. Despite the large number of respondents admitting to having little knowledge of how many near misses their LCV fleet was involved in, there is wide acceptance that
R
the analysis of this information can be invaluable in identifying risk hot-spots whether these be specific geographical locations, types of journey or even individual drivers. One fleet manager, who asked to remain anonymous, admitted: “In hindsight we should have identified an unsafe practice across a number of our drivers which, although poor road design contributed, could have averted a serious life-changing collision.” Why is road risk management so important? The obvious (and correct) answer is that it is simply unacceptable to expose employees, colleagues and members of the public to the risk of death or injury as a result of your business’s activities. And, if that wasn’t enough on it’s own, the cost impact of collisions must surely get the attention of any business in these difficult times. Last month’s article looked at the cost of having vans off the road for repair etc. and concluded that many businesses didn’t know the financial impact or greatly under-estimated it. It would seem the same is true with the real cost of collisions. Research by HSE during the 1990s identified
“Requiring drivers to report accidents and near-misses is crucial”
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that the below the water line ‘iceberg’ costs can be eight to 36 times greater than those visible ‘above the water’. There has since been much debate about the reality of these figures, but even if the figure is ‘just’ three to four times more than the ‘above the water’ costs, it could have a significant effect on finances as these costs come straight off the bottom line. Let’s say, for example, that your business’s return on sale is 5% and your real collision costs last year were £50,000.To recoup those costs you’d need to generate a further £1 million of sales. A few years ago, Nestle worked out that it needed to sell an extra 235 million Kit-Kats to cover its Europe-wide collision costs. What can be done to better manage road risk? As always, the starting point is to measure and analyse. Look at your drivers’ working days and identify the areas of risk. A major civil engineering company identified that the most dangerous thing its high-voltage jointers did was driving the van to and from the job, not working with 120,000 volts. Requiring drivers to report accidents and, importantly, near misses is crucial. Several respondents talked about the benefits of creating a ‘blame-free’ culture to encourage a more open dialogue with drivers. The use of schemes to reward drivers for good
EDITOR’S COLUMN
Do you measure risk incidents? On-the-road collisions On-the-road near misses On-site collisions On-site near misses Incidents involving on-board equipment
88%
21% 17%
33%
71%
I
Stephen Briers, editor, Fleet Van
t’s an impressive performance if a fleet can say that its operating costs are lower than they were 11 years ago, taking inflation into account. That’s the position Autoglass is in. Obsessive poring over data provided by software and telematics, tightly-monitored relationships with suppliers it can trust, plus a pay-as-you-use maintenance agreement, are ensuring the company keeps its fleet costs under control.
Are the number of incidents rising or falling? On-the-road collisions On-the-road near misses On-site collisions On-site near misses Incidents involving on-board equipment
Rising 19% 0 6% 0 0
Stay same 33% 83% 41% 75% 86%
Falling 48% 17% 53% 25% 14%
If you measure incidents, do you benchmark... Across your business Yes 79% No, but we’d like to 5% No 16%
Within your sector Across different sectors 35% 13% 18% 25% 47% 63%
“Raymond is still making radical changes, even after 34 years”
Do you use telematic/driver behaviour technology to aid with managing down risk? Yes Sometimes No
11%
39% 50%
behaviours while penalising those involved with undertake and then putting together the right blameworthy incidents was also found to be driver training package”. helpful, provided systems were strong enough to “We work in a high-risk industry,” says Steve identify non-reported incidents. Haigh, group transport manager at Lexia More and more operators are turning to telem- Solutions. “We understand the risks inherent in atics to help: more than half of our survey our demolition and asbestos removal businesses, respondents are using the technology on at least but we also recognise the significant risks our part of their fleet. drivers deal with each day getting too and from Most were favourable when their jobs. It’s important to us that asked about their experience we encourage the correct behavalthough the impact of data overiours and have found the use of load and, as one respondent put driver training and risk assessKit Kat sales needed it, the extra workload in discipliments to be very useful.” to cover Nestle’s naries were (sadly) an unforeThe impact of any collision can Euro-wide collision costs seen side effect. be life changing. It can have Speed limiters, rev limiters, serious implications to your busi‘Well Driven?’ (and similar) ness’s finances and to its reputaschemes and reversing sensors tion. The stress and mental are all cost-effective measures, anguish cannot be underplayed of fleets had processes for with speed and rev limiting and, if culpable, the threat of legal monitoring near misses also having significant fuel proceedings can hang over indieconomy benefits. viduals for years. The use of driver training and comprehensive There are many tried and tested ways of risk assessments can be beneficial. measuring, managing and reducing occupational Kevin Shepherd runs more than 500 vans for road risk – can you afford not to take it seriously? Southern Water and reports “significant improve- n For more information on the FTA’s Van Excellence ments in our road risk profile have been achieved programme email info@vanexcellence.co.uk or turn by better understanding the work our drivers to page 8 to get the fleet perspective.
235m 20%
Fleet manager Ged Raymond has been in the job for 34 years, plenty of time, perhaps, to get in a comfort zone which can breed complacency. But he’s still making radical changes to the fleet, keeping ahead of the latest changes in technology which can boost efficiency and effectiveness. When a company relies on its vans as heavily as Autoglass, this is essential. See p20 for more. In this issue of Fleet Van we put the spotlight on cutting accidents. We also look at how choosing the right options on your vans can make a real difference when it comes to selling them – it makes fascinating reading. Your next issue of Fleet Van will be delivered with the September 27 issue of Fleet News. n Correction Van drivers who receive free fuel pay an annual charge of £550, not £500 as stated in June’s Fleet Van.
fleetnews.co.uk/fleetvan July/August 2012 5
News Fleet Van Awards
ENTRY DEADLINE September 28 2012
Search begins for the UK’s safest van fleets
T
By Stephen Briers he Fleet Van Awards 2012 are open for entries. Now in their fifth year, the Fleet Van Awards are the benchmark awards for the light commercial vehicle industry, with trophies for manufacturers, fleet operators and suppliers. The fleet awards focus on safety, awarding trophies to those van operators that display an obsession for keeping their drivers safe and their vehicles accident-free. The van categories compare vehicles across a number of core fleet criteria, including payload, safety, technology, running costs, fuel efficiency/ CO2 emissions, reliability, aftersales service and back-up offered by the dealer network. They also include the driver appeal in terms of comfort and performance. The four supplier categories are open to all companies supplying products and services to van fleets: they reward great service and innovation.
Judging panel FLEET SAFETY CHAMPIONS n Stephen Briers, Fleet News/Fleet Van editor n John Maslen, Sewells brand director n Mark Cartwright, Freight Transport Association head of LCVs MANUFACTURER CATEGORIES n Stephen Briers n Simon Harris, Fleet News/Fleet Van deputy editor n Trevor Gehlcken, Fleet Van associate editor n Alastair Houston, East Midlands Vehicle Hire managing director n George Alexander, Glass’s chief commercial vehicle editor n Ken Brown, CAP LCV editor n Mark Lovett, LeasePlan head of commercial vehicles SUPPLIER CATEGORIES n Judges tbc
Categories FLEET SAFETY CHAMPIONS Large public sector fleet (more than 500) Winner 2011: Environment Agency Small public sector fleet (up to 500) Winner 2011: NHS Blood and Transplant Large private sector fleet (more than 500) Winner 2011: Mitie Group Small private sector fleet (up to 500) Winner 2011: Iron Mountain Innovation in fleet safety Winner 2011: AAH Pharmaceuticals Driver management initiative of the year Winner 2011: Bethell Construction Fleet safety champion of the year (private) Winner 2011: Balfour Beatty Plant & Fleet Services Fleet safety champion of the year (public) Winner 2011: South Central Ambulance Service
Small van of the year Winner 2011: Volkswagen Caddy
SUPPLIER CATEGORIES Van leasing and fleet management company of the year Winner 2011: Hitachi Capital Commercial Vehicle Services
Medium van of the year Winner 2011: Volkswagen Transporter
Van rental company of the year Winner 2011: Europcar
Pick-up of the year Winner 2011: Mitsubishi L200
Van supplier of the year Winner 2011: ATS Euromaster
Van of the year Winner 2011: Volkswagen Transporter
Van fleet safety award Winner 2011: Kwik-Fit Fleet
MANUFACTURER CATEGORIES Green manufacturer of the year New category
VANS CATEGORIES City van of the year Winner 2011: Peugeot Bipper
Fleet Van manufacturer of the year Winner 2011: Ford
Large van of the year Winner 2011: Mercedes-Benz Sprinter
For more details or an entry form (fleets and suppliers only), please contact Kate Howard on 01733 468146 or email kate.howard@bauermedia.co.uk 6 July/August 2012 fleetnews.co.uk/fleetvan
Sponsored by
Compliance Van Excellence
Raising the standard FTA initiative will improve efficiency and help van fleets achieve self-regulation
A
By Stephen Briers lmost 30 fleets have become members of the Freight Transport Association’s Van Excellence programme. Each has its own motives for undergoing the audit process although one common theme exists: to prove they adhere to a benchmark standard of quality. However, there are myriad benefits to being a Van Excellence fleet and it is important for the industry to back the initiative – it was, after all, set up by fleets for fleets and it has the support of transport minister Mike Penning. At worst, it will provide best practice tips that will improve efficiency; at best it will persuade the Government not to impose the type of legislative requirements on the van sector as truck operators face – principally CPC and O-Licence. “It is a distinct possibility that legislation similar to that in place for HGVs could be implemented for vans,” AAH Pharmaceuticals head of corporate services Geoff Wright told Fleet News last year. “If we don’t regulate then it will be regulated for us – and that might be in a way that is not economically sustainable or operationally viable for a lot of companies. We need self-regulation.” Wright believes the basic Van Excellence audit will be sufficient to raise standards and improve most fleet operators’ businesses. “The idea is to have a level of regulation that means something as a standard, but which is also achievable by smaller fleets,” he said. “It’s about people signing up. We want operators
to do something about safety, legality and van fleets when he highlighted the lack of the environment. If they do, they will have a defined legislation regarding health and safety. more economical fleet and we will create an envi“We have strict maintenance programmes in ronment where vans are seen in a far more posi- place for our vans but for many the only checks tive light.” they have are when the vehicle The biggest challenge most has its MOT,” he said. fleets, particularly the smaller “The code is about educating ones, will face on the road to Van fleets to increase their awareExcellence will be administration ness and improve standards.” – keeping records up to date, Van Excellence has two accurate reporting, meeting streams: vehicle-related underservicing requirements and takings (roadworthiness, safety, addressing defects. working environment, standards) Members of Van Excellence and driver-related undertakings anticipate a number of benefits. In (licensing, behaviour, compliance, addition to better maintained vehicompetence and training). cles and safer drivers, they expect Bigger fleets could play a signifto reduce accidents, lower insuricant role in ensuring the code is ance premiums, reduce fuel implemented by smaller van consumption and achieve higher operators, countering a concern re-sale values. that Van Excellence will only They also point out that the code appeal to the larger, more profesoffers positive PR (the Van Excelsionally-run companies. lence ‘tick’ will be displayed on the “We can force their hand,” said back of vans) which could lead to Revell. “It is up to the companies business wins. that adopt the code to insist that Geoff Wright, head of Wright added: “Van Excellence their suppliers and contractors corporate services, should be viewed as a benefit to sign up as well.” AAH Pharmaceuticals the operator, not an overly With an annual fee of £495, arduous control mechanism. If you do it right, it covering the admin and half-day audit, Wakefield will save you money.” Housing Association fleet manager Rick Young put Mike Revell, group director of transport at the case best: “You don’t have to throw millions of Clancy Group, underlined the concerns of many pounds at this – it’s all achievable.”
“If we don’t regulate, then it will be regulated for us”
Pass or fail? The audit trail which can lead to Van Excellence The Van Excellence audit takes up to three hours to complete. The first step is for the assessor to select a sample of vehicles and drivers from the records to check for compliance versus the systems
that the company has in place. The principle is to check that the fleet is doing what its processes say it does. This includes areas such as verification of vehicle maintenance and driver training compliance. It takes 20-30 minutes to go through the initial records, questioning the project manager
8 July/August 2012 fleetnews.co.uk/fleetvan
for evidence of the processes. Then it’s a case of going through the Van Excellence report questions which includes topics like pre-use checking of vehicles, fault rectification, and maintenance cycles. It covers everything from vehicle (such as SMR, tyre maintenance, inspections and defect reporting)
to driver (including training and licence checks). At the end of the process, the fleet is given the decision – pass or fail. This is confirmed a few days later through a full report. If the company failed the initial audit, the report would also detail the areas that require further action.
Risk Van accidents
Reducing accidents A change of mindset is needed if you are to reduce the risk of an accident involving your staff and vehicles
D
By Trevor Gehlcken espite the admirable work over the years by safety groups such as RoSPA and RoadSafe, evidence points to the fact that for many van fleet operators, road accidents are accepted as an unavoidable part of life. In fact, we have first-hand knowledge of this. Not long ago, the brother of a Fleet News staff member was given a van driving job at a delivery company and – despite never having driven a commercial vehicle before – he was handed the keys to a brand new Vauxhall Vivaro. Sure enough within a month he had pranged the van and was then threatened with the sack for having done so. The firm concerned didn’t seem to accept any kind of responsibility for the accident. When the cost of accidents is put into perspective it makes for some frightening statistics. Across Europe, 35,000 people a year are killed on the roads and for each death, four people are permanently disabled and 10 people injured. The cost of accidents is reckoned to be £110 billion per year. An accident isn’t simply a prang – there are invariably a number of additional consequences. For starters a delivery may be late and valuable business lost. The van itself will have to be repaired, which means it won’t be working for you and earning its keep. If your vans have specialist
equipment in them, you can’t just phone up a rental firm for a replacement either. Then if a staff member is injured, he or she will be off work recovering and costing your business money while you hire other (probably inexperienced) staff. If your accident involves injury to third parties and their vehicles, another whole world of problems opens as you and your insurance company deal with claims against you. Lastly, have you considered that your injured staff member may sue you and your company for failing to ensure their safety? If an ambulance-chasing lawyer came knocking and asked why you hadn’t offered your driver a training session, or why you had failed to maintain your vehicles correctly, or declined to fit optional safety extras such as electronic stability control, could you provide suitable justification? Probably not. Launching a new safety strategy in a bid to reduce accidents means a change of mindset first of all. Thinking safety in every aspect of van fleet management will automatically lead on to a number of ideas that will help. For example if you have a yard, just look at it and make a mental note of the number of areas where an accident could take place – a dodgy pile of crates that could fall on someone, a patch of oil that could slip someone up and cause a back injury.
Across Europe, 35,000 people a year are killed on the roads and for each death, four are permanently disabled and 10 people are injured. 10 July/August 2012 fleetnews.co.uk/fleetvan
Better safety = fewer accidents: Key areas to consider Optional extras – to buy or not to buy? Bulkheads Ensure that your vans have them fitted to stop cargo in the rear flying forwards and hurting driver and passengers in the event of an accident. Most panel vans nowadays have bulkheads fitted as standard, but many smaller vehicles have them as a paidfor option which should not be skimped upon. Parking sensors For around £200 per vehicle they will help avoid the problem of minor knocks and scrapes and will undoubtedly pay for themselves over and over again during the life of the vehicle. It is worth reminding drivers though that they only work at ground level and won’t detect such objects as overhanging garage doors. ESC By far the most important option to choose in the view of Fleet Van is electronic stability control (ESC).
This system has been dubbed the most important safety invention since the seatbelt and despite the fact that it will become law on all vans from 2014, most manufacturers still list it as a paid-for option. Ford, Mercedes-Benz, Volkswagen and Iveco include it as standard. If you buy from other manufacturers we recommend strongly that you negotiate to get it included. The wonderful thing about ESC – a system which works to correct sideways skids – is that it works without any input whatsoever from the driver. We’d also recommend sending your drivers on a course to learn how to use ABS brakes, for anecdotal evidence suggests that most drivers don’t understand what they do and how they should be used in an emergency.
Bulkheads are key to driver safety and should not be skimped on
The problem with added extras that improve safety is that you will never be able to quantify them. For example if you pay £400 extra for ESC on a vehicle and it prevents a driver from having an accident that would have cost £2,000, you are effectively saving £1,600. But a driver is hardly likely to rush in and tell you that he nearly pranged his vehicle. Therefore it is important before embarking on a new accident reduction strategy to actually measure your fleet’s crash rates before taking measures. If you are saving money when the bigger picture emerges a year or two later, you can confidently answer any questions from top management about why the unit cost of vehicles is apparently more it used to be.
Loading
Accidents not only occur on the roads, but in yards and other delivery points too. If drivers injure themselves while loading their vans, they could be off work for weeks, leaving you short of staff. The maximum recommended weight for anyone to carry at work is 25kg for a male and 15kg for a woman. If your business involves heavier loads, then consider fitting a hoist, such as those offered by Penny Hydraulics. These are bolted on to the vehicle and fold away neatly when not in use
Ensure that your vans are maintained properly for maximum safety
Maintenance
With service intervals nudging 25,000 miles in some cases, there has never been a more important time to focus on van maintenance. While servicing schedules may be this long, crucial safety items such as brakes are likely to need attention before then. With some vans being used by several people, the tendency is for drivers to assume someone else will check on safety items so it’s important that every driver completes a ‘walk-round’ safety check before getting in the van. Get them to complete a form and carry out spot checks to ensure the inspections are being done. Tyres should be given a visual
check every day and a proper inflation check each week as underinflation could make the vehicle unstable and so cause a crash. Brakes should also be given a visual check weekly and any problems reported to the fleet manager for attention.
Training courses can be invaluable – but don’t expect miracles
Training
Driver training sessions such as those offered under the SAFED scheme are invaluable, but don’t expect miracles. Although the one-day courses will teach your drivers to operate more safely and more fuel-efficiently, you need to change your drivers’ mindset for
Drug driving is becoming a big problem – make sure it doesn’t affect your staff
complete success – and that won’t happen after just one training session. Consider regular followup courses and tackle driver culture through elearning and coaching.
Obeying the law
Installing a telematics system in your vans will help control dangerous driving by employees
The obvious way to reduce accidents is by making sure that your drivers stick to the law and don’t indulge in such practices as speeding and talking on mobile phones while on the road. As you can’t actually see your drivers most of the time, this may be easier said than done, but at the very least you should produce a drivers’ handbook outlining what you expect from your drivers and the consequences of failing to come up to your expectations. One way of incentivising staff is by making a chart showing which drivers suffer the fewest accidents. At the end of the year there should be a prize or prizes so that they have a goal to aim for. If that prize is big enough, just watch your accident rates fall.
Telematics
If you have problems with erratic and dangerous drivers on your
fleet, one good way of tackling the issue is by installing a telematics system. There are many different ones on the market which will give you any amount of information about your staff when they are out on the roads and will pick up speed-ing, excessive cornering and heavy braking. If drivers baulk at having a ‘spy in the cab’, you may point out to them that it is your duty to protect them on the roads. And the vans are a company asset that need to be lookd after. Involve drivers from the start and they will accept it. Evidence from telematics firms suggests that fleets which use telematics will see massive savings in costs through having fewer accidents.
Drink and drugs
If you are over 50 you probably count drink-driving as a bigger problem than drug-driving, but drugs is a growing problem in the workplace among younger people. Cannabis, amphetamines and cocaine are increasingly used and stay in the bloodstream to affect driving performance days after they were
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Risk Van accidents
taken. Whatever drug has been used, all are illegal and can cause accidents in exactly the same way as alcohol – and efforts must be made to clamp down on such practices. An RAC survey of more than 1,000 people found a rise from 5% to 9% among 17-24 year olds who admitted to driving under the influence of illegal drugs during the last year. The research follows hot on the heels of a Government announcement that drug driving will be tackled and police will be given roadside “drugalysers”. The drugalyser works by analysing a saliva sample. Drivers who fail the initial roadside test will be taken to a police station and tested with a more sophisticated machine. Penalties include up to six months in prison and fines up to £5,000.
Fleet Van awards
Tackling drug-driving at work is a difficult problem as most staff would baulk at being given a swab test before being allowed behind the wheel of their vehicles. Some fleets introduced a drugs amnesty allowing drivers to come forward for help without fear of reprisals. After that period, anyone found using drugs faces disciplinary action. Your drugs policy should be outlined in the driver’s handbook. You can choose to either offer support to those caught using drugs or take immediate disciplinary action. Keep a general watch for the demeanour of staff. Anyone abusing drugs or alcohol will probably show negative signs at work. If you suspect a driver, a friendly private chat is the best way of finding out the truth.
Don’t forget we give a safety award each year at the Fleet Van Awards, so feel free to enter. Visit www.fleetnews.co.uk/fleetvan
Hoists like this one from Penny Hydraulics will help prevent drivers from suffering back strain
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Environment Emissions regulations
Time to plan for arrival of Euro6 NOx emissions are at heart of new legislation which arrives in 2015
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By Alisdair Suttie missions regulations can be an exhausting topic, long before you get down to what comes out of the tail pipe. Unravelling EU legislation governing emissions, both present and future, takes some work, but understanding it is vital to van operators’ planning. The first thing to note is that Euro emissions legislation does not include CO2 emissions in its calculations. While CO2 is an important consideration for governments and van users alike, it’s the other harmful chemicals that are measured. From the outset of Euro1 in 1992, the measurements have covered oxides of nitrogen (NOx), hydrocarbons (HC), carbon monoxide (CO) and particulate matter (PM). Particulates are commonly referred to as soot and vans have wrongly shouldered much of the burden of disapproval of the stereotypical belching diesel exhaust. As vans registered from 1 October 2006 have had
to meet Euro 4 standards, they have been much cleaner, especially when you consider it takes 35 Euro 4-compliant vans to produce the same volume of particulates as one pre-Euro1 vehicle. Every van registered from October 2009 onwards has had to meet the current Euro5 standard which states the maximum limits of NOx that are permissible. This is set to change for Class 1 vans in September 2015 with the Euro6 standard. Class 2 and 3 vans have an extra 12 months’ grace before they have to comply with new NOx limits that are more than half the present limits. Particulates and hydrocarbon limits will remain the same for Euro6 as they are for Euro5. While this offers some solace for van manufacturers, it still means finding solutions to lower NOx exhaust
emissions. There is also the incentive of financial benefits from some governments for early adopters of cleaner vans to fleets. Engineering a whole new engine is not practical for many van manufacturers, so we’re likely to see wider adoption of Ad Blue, also known as Diesel Exhaust Fluid (DEF), which works by Selective Catalytic Reduction. This process injects the DEF into the hot exhaust where ammonia in the liquid reacts with the harmful NOx to form nitrogen and water vapour that are safe to leave the exhaust. This form of catalytic treatment is common in large trucks and some passenger cars. However, Simon Chapman, Chief Economist for the Freight Transport Association, warns: “Manufacturers are still likely to be in the development phase for these vehicles. However, if the FTA’s experience with trucks is anything to go by the solution of greater use of exhaust gas recirculation and selective catalytic reduction will result in higher vehicle purchase costs.’ For many van operators, the cost of ignoring impending Euro6 legislation will be too great to leave to chance. The London Low Emissions Zone (LEZ), which covers almost the whole of the capital within the M25, already charges a penalty of £250 per day for any vehicle that does not meet its emissions standards, which was set at Euro4 from January this year. The fine doubles if not settled within 14 days. It applies to all vans with a weight between 1.205 tonnes unladen and 3.5 tonnes gross vehicle weight. Van owners must register their vehicle as being compliant. Compliant vehicles not registered with Transport for London will be fined. While getting to grips with Euro emissions legislation can be difficult, it’s a subject worth grappling with as it affects all van operators and will have an ever larger part to play in how much it costs to buy and run a van.
“For many the cost of ignoring Euro6 legislation will be too great to leave to chance”
Compliant vans which aren’t registered with Transport for London face a fine of £250
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Remarketing Specification and equipment
Choose the right equipment to maximise resale values But age and condition of vans will affect how much is retained by added features
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By Trevor Gehlcken hen it comes to buying new vehicles, most van fleet operators, unsurprisingly, opt for base spec models. After all, with money tight it seems the most costeffective way of running a commercial vehicle fleet. But what seems cost-effective at buying time is not necessarily costeffective at selling time as anyone who attends one of the many UK van auctions will attest. As vehicles come into the halls, eager buyers will be looking to purchase vehicles that will sell easily to second users. And increasingly those second-users are expecting comforts such as air-conditioning, a good quality sound system and even built-in sat-nav. It’s all a matter of assessing wholelife costs when buying new vans – and fleet operators would do
well to heed the words of the auction is quite probable, it will cost more to experts or risk losing a fair chunk of have resprayed with a metallic finish, money in a vehicle’s lifetime. so this will have to be factored in. When it comes to looking at added A problem also arises when extras in detail, looking at rear some curious parking sensors, anomalies start to which appear as an appear. option on just about Take metallic all van price lists. paint for example. (Fleet Van believes Few, if any, fleet they should be operators would standard fit). choose this option, Parking sensors which nor-mally will add around costs around £300. £200 to the cost of But according to the your van new and experts, a van with will, according to metallic paint will the experts, add fetch up to £500 about £50 to the Alex Wright , Shoreham value at auction – more than a flatVehicle Auctions finished van at making a net loss of auction. £150. But those As ever with number-crunching sensors will probably save you exercises, the equation is not quite hundreds of pounds in damage that simple. If your van with metallic repair costs over the fleet life of paint is scraped and scuffed, which the vehicle.
Vehicles that will benefit most from spec are the more ‘lifestyle’ vans
The problem here is if you are asked by your bosses to justify the expense of adding parking sensors. Their benefits are nigh on impossible to quantify: your drivers are unlikely to tell you about their near misses. Sadly, safety extras do not seem to add value to used vans, whereas cosmetic options such as alloys wheels and metallic paint do. Duncan Ward, BCA’s UK business development manager – commercial vehicles, said: “When you are offering upwards of 400 vans, you really notice how the buyers gravitate towards the best presented, well-specified vehicles. “If you are a professional buyer for retail, you know that certain vehicles will stand out in adverts and on the forecourt and you want those on your shopping list. In a similar fashion, end-users buying at auction will seek out the best
In-built sat-navs are important when it comes to selling a van
16 July/August 2012 fleetnews.co.uk/fleetvan
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Used van values fall in June Fragile buyer confidence reflects tough economic conditions
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verage used LCV values in June fell to their lowest point since last August. Month-onmonth values fell across the board by £199 (4.5%) to £4,171, with average age rising slightly and mileage falling. There were value falls in all three main sectors of fleet and lease, partexchange and nearly-new and CAP performance declined by half a point to 97.7%. Year-on-year, June 2012 was ahead by £31 (less than 1%) compared to the same month in 2011, despite the average age climbing by over six months (up 13%) and average mileage increasing by 7,500 (up 11%). Performance against CAP slipped year-onyear, but only by a quarter of a point. Duncan Ward, BCA’s general manager – commercial vehicles, commented: “The market tends to slow down in the early summer and we have also had a short-term hangover from the Jubilee double bank holiday. “In fact, June brought a much-needed reality check to the used commercial sector. There was almost an expectation from vendors that dealers will continue to pay ever higher prices for older, higher mileage vans because stock is short in supply.
BCA is advising sellers to review their remarketing activity to ensure their vans are presented in the most saleable condition “However, buyer confidence in the wholesale market is quite fragile and there is an increasing reluctance to buy poorer condition or excessively travelled vans because of the investment required to get these vehicles ready for retail. “In many ways the trade buyer is being squeezed from above and below. Competition for stock has forced prices up, while the retail customer – the small business or sole trader – wants even more van for their money when they walk on to a forecourt. “The dearth of stock has kept values high as economic confidence is still reported to be flatlining. According to the CBI, retail activity is subdued and uncertainty over the economic outlook is putting a brake on spending across the whole consumer sector.
‘There is an increasing
reluctance to buy poor condition or excessively travelled vans’ Duncan Ward, BCA
Fleet & lease used values 2010-2012
£6,000
Source: BCA
£5,000
£4,000
June
Apl
May
Mar
Jan
Feb
Dec
Oct
Nov
Sep
Jul
Aug
Jun
Apl
May
Mar
Jan
Feb
Dec
Oct
Nov
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Jul
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£2,000
Jun
£3,000
May
“Small businesses are being particularly hard hit as they have no excess to trim back, so cost-cutting often takes the form of deferring expenditure – and if a replacement van was on the agenda for 2012, maybe that will be reviewed and postponed for another 12 months.” Ward added: “We have been advising our sellers for some time to review their remarketing activity to ensure their vans are presented in the most saleable condition. “Vehicles must be appraised sensibly and methodically and valued in line with market sentiment. Pre-sale preparation and presentation is important and all the documentation and service histories should be present when vans are sold.” Fleet and lease Unsurprisingly, values in the fleet and lease LCV sector declined from May’s 24-month high, falling by £148 (2.9%) to £4,965. Performance against CAP dropped by around a quarter of a point to 97.8% over the month, while retained value against manufacturer recommended price over 44 months and 70,000 miles was 31.68%, down a point on last month. The year-on-year figures again highlight the value growth across the fleet and lease sector. June 2012 was £352 (7.6%) ahead of the same month last year – despite the average van being two months older and 7,000 miles higher this year.
Europe’s No.1 vehicle remarketing company log on to www.british-car-auctions.co.uk or call 0844 875 3480
Remarketing Specification and equipment
UNDER THE HAMMER Alex Wright, MD of Shoreham Vehicle Auctions An integral communications solution needs to be the next piece of technology adopted as standard by van makers. Manufacturers who ignore operators’ growing appetite to communicate with drivers and their customers directly from the vehicle could suffer from reduced sales and residual values in the long term. More and more van operators are looking to install communications equipment into the van cabins to help them run their business while on the move. Offering integrated satellite navigation or an in-cab phone charge point is not enough. Van operators need technology like in-built docking stations or adaptive cradles for a range of communication equipment that adhere to stringent manufacturer safety guidelines. iPhones, for example, are used for so much more than just making calls – they double up as a sat-nav system, as GPS positioning devices, as well as enabling the driver to safely make calls and stay in touch with the office via email. When 4G hits these shores it is anticipated that smart phones will become an ever more integral part of a van driver’s day-to-day working kit.
“Smart phones will become an ever more integral part of a van driver’s working kit” Offering a more flexible factory-built solution to accommodate these communication devices will immediately translate into additional sales. Vans with these options tend to make more money when it comes to selling them used in three or four years’ time. Vans fitted with sat-nav systems have commanded a slight increase in used values, but nothing that meets the initial investment. Some manufacturers, such as Nissan, are now providing sat-nav as standard, but to future proof their vehicles on all levels, van makers must look at operator requirements in a far broader fashion. Many operators purchase the base vehicle and then fit their own communications kit, often involving extra cost and time before a van goes into operation, as well as new wiring and installations being added to the vehicle’s factory-fitted finish. At the end of the vehicle’s life the kit has to be taken out at a further cost. An integral dash mounted comms system would address these issues. Van technology now has to move on and we are confident that operators would work with the industry to help make this a reality. Anything a manufacturer can implement to make an operator’s life easier and help develop their business without incurring huge costs will certainly put them at an advantage.
18 July/August 2012 fleetnews.co.uk/fleetvan
vehicles they can buy “Air conditioning will increase the with the budget they’ve value of smaller vans, especially if got – and if a van with they are dark in colour and are fitted twin side loading with a bulkhead, but can be more of doors, a bulkhead and air-con is on a burden in large white vans with no offer, that will be the one they bid for bulkhead, as the system has to work if the alternatives are basic models.” hard to cool a large space, conseAccording to BCA, the best long- quently eating precious fuel.” term value extra is interior ply-lining Vehicles that benefit most from – used buyers expect it and it spec, according to Wright, are the protects against ‘inside-out’ damage. high ‘lifestyle’ vans such as the VolkAll sizes of vans benefit from this swagen Transporter, Mercedes‘extra’. In terms of added value, ply- Benz Vito and Renault Trafic. lining might add only £100 or so, but Reversing sensors, air-condithe real benefit is that the van is tioning, colour-coded bumpers and much more likely to be in a more cruise control all change their value. saleable condition after three or four Wright said: “Whether alloy wheels years’ hard work. An otherwise add value to a van is down to clean van valued at £5,000 could personal taste. Quality alloys can easily lose up to look good and £1,500 if its side reduce the weight panels are extenof a van, which sively blemished for a commercial from inside-out operator means damage. they can carry a BCA also suggheavier load. ests that sideOn the downside, Alex Wright, Shoreham loading doors are damaged alloys Vehicle Auctions as essential for can be expensive the smaller car-sized vans as they to repair. Another consideration is are for 3.5-tonne vans. steel wheels, which can look just as Alex Wright, managing director of smart with wheel trims, but are Shoreham Vehicle Auctions, said more practical to repair and replace.” speccing a vehicle correctly will help Metallic paint sells better on it sell more quickly, and keeping the younger, sub four-year-old vans age of the vehicle and the target with little wear and tear, according audience in mind are key when to Wright, but it can make repairs deciding what will increase its value more costly. at the point of sale. He said: “Someone looking to buy The age of a vehicle will often an eight-year-old Ford Transit with determine whether it is worth spec- a damaged panel will favour the cing or not. While spec works well white over the silver van, as the cost on newer vehicles, it can be detri- of repairing or replacing the panel mental to older vehicles, as the will be more than the van is worth. replacement, repair and mainte- On a three-year-old Renault Kangoo, nance of new technologies can cost however, the buyer is more likely to more than the vehicle is worth. favour the silver over the white van. Wright said: “Additional spec on “Built-in sat-navs and in-cab white vans over six years old is not phone charge points are important, generally necessary. but operators looking to maximise “Younger vans will sell better with the value of their vehicles when spec. Sub five-year-old large panel selling them on should also look at vans should always be fitted with in-built docking stations or adaptive electric wing mirrors, as these are cradles for a range of communicamuch sought after. tion equipment.”
“Younger vans will sell better with spec”
Ply-lining is said to be the best added-value extra
Ged Raymond: ‘Our vehicle maintenance costs are reducing and that is amazing’
Fleet case study Autoglass
Software, telematics and a pay-on-use contract help Ged Raymond’s...
MAINTENANCE COSTS FALL TO 11-YEAR LOW
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By John Charles “FSG figures show that our vehicle maintenance costs are reducing if ed Raymond has seen many radical changes in the industry during inflation is taken into account and that is amazing,” says Raymond. “Pence his 34 years as fleet manager at Autoglass, but throughout that per mile figures are the most accurate mechanism for monitoring individual time his management principles for operating an efficient, safe and vehicle costs.” economic fleet remain the same. A future development could see ARI (Automotive Resources International), Minimising cost and limiting vehicle downtime are critical for which acquired FSG late last year, working with Belron outside the UK. Autoglass, the UK’s leading vehicle glass repair and replacement company “We are interested to hear what it has to offer,” he admits. serving more than 1.1 million motorists each year – 24 hours a day, seven While Raymond acknowledges that the most significant change during his days a week, 365 days a year. fleet manager career has been improved vehicle quality and reliability, he When Raymond moved into the fleet manager hot seat in 1978, Autoglass says technology has played a key role in enabling him and his three fleet operated a UK fleet of 315 vehicles. department colleagues to minimise cost and downtime. Today the fleet numbers more than 1,800 light “We used to keep a ledger recording all details of the commercial vehicles and 200 company cars. fleet with some information recorded in pen and some Around 1,600 are driven by Autoglass employees in pencil. It was very difficult to keep track of vehicles. with the remainder used by staff employed at “We have been computerised for the past 20 years sister companies Autostore, which offers same-day and we know absolutely everything about every vehicle, vehicle repairs, and replacement glass distribution driver, journey and operating costs.” company Laddaw. In addition to being in charge of the UK fleet, Raymond Telematics programme has a second role as the group fleet manager for “I don’t know how we did it before, but we coped. Autoglass parent company Belron, which has its global However, we couldn’t have such a system today,” he headquarters in Egham, Surrey. adds. “We record the same information, but everything Last year in that role he negotiated a global threeis much quicker, checks can be carried out much more year deal with Ford for near-exclusive supply of vans, efficiently and we have access to an instant audit with an option to extend to five years. trail of information that ensures our duty of care During the first three years of the contract Belron, compliance responsibilities are met and the focus on which is the world’s leading vehicle glass repair and cost is maintained.” Ged Raymond replacement company and operates in 34 countries, The company is currently embarking on a major Autoglass fleet manager including much of Europe, North America, Russia and telematics programme that, by the end of the year, will China, will acquire 12,000 new vans. see every driver/vehicle equipped with a PDA (personal In the UK, Autoglass already operates a 90% solus Ford van fleet covering digital assistant or palmtop computer). Transit 260 and 280 models, Transit Connect 230 models and Fiesta vans. It will communicate to technicians details of their next job and location and Additionally, due to the requirement for some specialist vehicles, a few provide navigation assistance. Additionally, customers will sign the PDA to Mercedes-Benz, Renault and Vauxhall vans are also on the fleet. acknowledge completion of work. Autoglass has also – in partnership with a specialist supplier ‘Ecodrive’ Reducing maintenance costs developed in-vehicle technology that is being fitted to vans to both record All vehicles are on contract hire and are replaced after four years/110,000 vehicle data and impart best practice driving advice to employees. miles. Pay-on-use maintenance is outsourced to long-time partners Arval “Our vans are already restricted to 70mph, but the technology will verbally and Fleet Support Group (FSG), with the latter responsible for an increasing tell drivers, for example, when to change gear, and advise them what speed share of the fleet over an 18-year partnership. they are travelling,” says Raymond. More than 50% of the light commercial vehicle fleet is maintained by FSG “The information recorded will help reduce service, maintenance and and pence per mile data reveals that operating costs are 2.57ppm per van repair (SMR) bills as well as fuel costs because we will know how each vehicle today compared with 2.46ppm in July 2001 when the fleet management is being driven and can then act on the data.” specialist began recording information in its current format. Such technology will further help Raymond to ensure he Taking inflation at 2.5% per annum into account, it equates to a total saving achieves his number one objective of operating an ‘efficient, safe last year of £71,316 in maintenance costs on the 900 Autoglass vans currently and economic fleet’. on FSG’s books. He says: “Vehicle must be fit-for-purpose, safe as far as
“We have been computerised for 20 years and we know everything about every vehicle”
fleetnews.co.uk/fleetvan July/August 2012 21
Fleet case study Autoglass our drivers and the general public are concerned, efficient and easy to repair at sensible cost.” With cost minimisation at the forefront of his mind, Raymond believes it is crucial to keep contract hire and maintenance charges separate. “Fleets that lease with maintenance are paying a fixed rate for work from day one when vehicles are new and servicing and repairs should not be required. Opting for pay-on-use maintenance means that we only pay for work when it is required,” he says. Company: Autoglass
Fact File
replacement vehicle when the repair takes perhaps two or three hours. That is how knowledge and experience can be used.” Raymond celebrates his 65th birthday in August, but intends to continue to run the fleet for at least another couple of years. In the meantime, Sebastian Sharpe has been learning the business as assistant fleet manager having been recruited four years ago. The Autoglass fleet department is completed by Richard Willmoth and Julie Miller.
Planning for the future Perhaps not surprisingly Raymond has strong views on the job of the fleet manager and believes Fleet manager: Ged Raymond Minimising SMR costs at de-fleet organisations running 300 or more vehicles need a Time in role: 34 years Raymond is particularly conscious that SMR costs specialist in the role. Fleet size: 2,000 (1,800 LCVs, 200 cars) are kept to an absolute minimum when vehicles are He says: “The role of the fleet manager could be LCV brands on fleets: Ford, Mercedes-Benz, close to de-fleet time. under-valued. Too many employers are outsourcing Renault, Vauxhall “Some organisations will fit an expensive battery fleet-related functions and believe that will take Van replacement cycle: four years/ with a five-year warranty when the vehicle is going away problems. 110,000 miles to be de-fleeted in three months time. We only want “But outsourcing costs money and someone a battery with a one-year warranty, which will save in-house with a certain amount of fleet knowledge us money,” he says. is required to manage suppliers. The role of the “We go through all invoices to make sure we are happy with what we are fleet manager in any business is an important one and that is why we are paying for. In real terms our costs are coming down and that is due to planning for the future. improved vehicle quality and reliability, the level of information that we have “We are saving money each day in association with our suppliers because on each vehicle enabling tight cost management by ourselves and suppliers we tap into their knowledge and expertise and leverage their business relaand the trust we have in place with FSG as well as Arval.” tionships, but we also monitor exactly what is going on so we pay the right Illustrating his point that vehicle downtime is also minimised, he says: “If price for the right product and the work carried out. Handing the fleet over a van has a damaged bumper it can still operate. It doesn’t need to be off the to a third party is more expensive, so the Autoglass fleet department exists road for a week with all the additional administration and costs relating to a to save money and ensure the business operates a safe and efficient fleet.”
The Autoglass fleet team (from left): Sebastian Sharpe, Richard Willmoth, Julie Miller and Ged Raymond
22 July/August 2012 fleetnews.co.uk/fleetvan
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Tyre longevity is top p Michelin launches new Agilis+ in response to consumer demands A European study has revealed that longevity, damage resistance, braking performance and wet grip are the most desired tyre features for van users, prompting Michelin to launch its next generation Agilis+ tyre. A van survey by GfK, one of the world’s largest market research companies, found that 41 per cent of van users believe longevity is the most important requirement for a tyre, while 12 per cent said robustness is the most essential factor. Braking distance was listed by a further 12 per cent of van users as the main priority, followed by wet grip and fuel efficiency. As a result, Michelin has combined its expertise of longevity and durability and its knowledge of safety and fuel saving to create the new Agilis+ van tyre.
Steve Dolby, Product Marketing Manager for Michelin, said: “It is easy to understand why van users have placed these factors as priorities for their tyres, and whereas with some tyres they may have to compromise one factor for another, now a balance of performance is available from one tyre. “Most vans are used for business use, so obviously a tyre’s whole life cost is an important issue for operators, but they are also becoming more aware of the safety and environmental aspects of their tyre’s performance. “The two significant areas in which the Michelin Agilis+ has improved compared to its predecessor are wet grip and fuel efficiency, but we’ve maintained the excellent tyre life and robustness of the well-respected original Michelin Agilis range. “The tyre makes use of truck tyre technology, in particular its sidewall rubber compounds are derived directly from truck tyres due to their
abrasion resistance. Combine this with kerbing protectors in eight zones around the tyre sidewall, and the tyre has excellent resistance to damage in urban environments.” The tread is made from a new compound made with a full silica mix, which reduces the heat generation within the rubber when the vehicle is moving, thereby reducing tyre rolling resistance and improving the vehicle’s fuel efficiency. Compared to the first generation Michelin Agilis, the new design can save up to 150 litres of fuel over 43,000 miles and the improved wet grip reduces stopping distance by two metres.* From November 2012, a European tyre labelling system comes into place meaning that new tyres will have to be provided with performance ratings on wet grip, fuel efficiency and exterior noise. The information will be provided on a label similar to that already in use for “white goods” and is aimed at allowing consumers to make a more informed choice when buying new tyres. In the new tyre labelling categories, the Michelin Agilis+ has achieved a C class in fuel efficiency and a B class in wet
grip, with an external noise level of 70 dB complying with future stricter noise limits, and Dolby says Michelin is very pleased with the results. “Considering the concerns of van users that have been
“Drivers need long-lasting tyres for the motorways but also damage resistant tyres for use in the city, so we’ve designed the Agilis+ to deal with both extremes.” Steve Dolby
ent feature
riority for van drivers
Steve Dolby, Product Marketing Manager for Michelin
revealed in the survey, it is clear that a good overall performance is needed for a tyre. We’re very satisfied with the tyre labelling ratings of the Agilis+ and we think it’s at a very competitive level in all categories. However, it should be noted that tyre labelling does not cover all areas of tyre performance. For example longevity, a key requirement of van users and a strong point of the new range, is not on the label.
“The fuel efficiency scale is very tight and achieving a very good C class in this category means that it is in the “green zone” in the top section of the scale contributing to fuel saving. “The new Michelin Agilis+ achieves a B class in the wet grip category in a G to A scale, meaning that the new tyre provides excellent performance on wet roads for good levels of safety.” As well as attaining excellent
Email: michelin-contact@uk.michelin.com Telephone: 0845 3661590 Visit: www.michelin.co.uk
ratings in the tyre labelling categories, the Michelin Agilis+ is also designed to provide excellent all round performance in a range of operating conditions to meet modern driving habits, according to Dolby. “Vans are often used for many different jobs in very different locations. Drivers need longlasting tyres for the motorways but also damage resistant tyres
for use in the city, so we’ve designed the Agilis+ to deal with both extremes.” The new Michelin Agilis+ will replace the majority of the previous Agilis range and is available in rim diameters from 14” to 16” and section widths from 185 to 235mm from July 2012. *Based on independent wet braking (60 to 20 km/h) and rolling resistance tests carried out by TÜV SÜD in 2012.
Industry spotlight LeasePlan
CUTTING THE RISK FOR Head of commercial vehicles Mark Lovett is looking to win van fleet business How long have you been in your current job? Eighteen months. What does your work involve? The development of LeasePlan’s commercial vehicle strategy, heading up our specialist commercial vehicle team, and through improving our customer service propositions, growing our funded commercial vehicle fleet. What are the benefits of leasing vans over outright purchase? There is less risk to the operator – leasing vehicles means off balance sheet funding and a known fixed monthly cost of van fleet operations. Leasing also minimises the amount of administrative burdens that running a van fleet requires. There is also the support and reliability that leasing offers and the ability for operators to use their cash for other business critical investments while the cost of the vans on a monthly lease doesn’t eat into those funds. Why do more than half the UK van operators still buy vehicles outright? Many (particularly smaller) van operators are unaware of the advantages of leasing and don’t believe it’s a viable option for operators other than large corporate fleets. Others see leasing as hire purchase and don’t think it’s suitable for their business. Where the benefits of leasing are not sold correctly, operators have a perception that there is a high risk of end-of-contract damage charges, and hold the view that it’s better to own their van, and ‘run it into the ground’ which is a false economy!
all service documentation is electronically stored. With UPtime, the van fleet operator no longer needs to worry about when a vehicle’s next service or scheduled event is due, they don’t have to book vehicles in and they don’t need to chase to find out when the vehicle will be ready. Many fleets are now looking to leasing companies as business advisers. Why is this happening and what type of advice and support is being sought? Running a fleet of commercial vehicles is a complex task and becoming even more so, particularly in the light of increasing legislation, duty-of-care obligations and compliance management. For many operators, van fleet management is something that has to be done as a result of using their vans as business tools. In recent years, the role of a traditional fleet manager has disappeared in many large companies. Consequently, we’ve seen more HR managers and procurement teams becoming responsible for van fleets, but it is not their core business activity, whereas it is ours. So the leasing providers are being tasked with providing these companies with all the information needed to run an efficient and compliant van fleet.
“Owning a van and running it into the ground is a false economy”
You launched a new product at the CV Show. How much does it cost and what are its potential savings? UPtime is our innovative product for commercial vehicle fleets. It maximises vehicle uptime, reducing downtime and costs associated with downtime. Dependent on fleet size and profile, UPtime is available for less than £30 per month.
What makes this product different from others? Where UPtime differentiates LeasePlan from our competitors is in the way that it provides a genuine and credible pro-active approach to VOR (vehicle off road) management. Using telematics data, we capture the vehicle mileage every 24 hours and then plan each service, inspection or other scheduled event around the operator’s working patterns. Using UPtime, our service repairer network that supports the product applies an HGV approach to LCV maintenance; examples being the ability to book a vehicle in for repairs for hourly slots rather than losing a vehicle for a whole day. From the moment a vehicle arrives in the workshop, it is progress chased until completion and
Fact File Name: Mark Lovett
Job title: Head of commercial vehicles Brief career description: Commercial vehicle director – Lex Corporate/Lex Autolease (2008-2010) Commercial vehicle sales & marketing manager – Nissan Motor GB Ltd (2006-2008) Commercial vehicle fleet sales manager – Renault UK Ltd (2003-2006) Brand Manager, commercial vehicles – Renault UK Ltd (2000-2003) LCV roles and sales roles – Renault UK Ltd (1988-2000) Dealership sales roles (1984-1988) Favourite film: Educating Rita Favourite book: Not Dead Enough Favourite holiday destination: Greek Islands
26 July/August 2012 fleetnews.co.uk/fleetvan
How many vans does LeasePlan hope to have? We have more than 34,000 vans on our fleet, and a Business Plan to significantly grow that volume over the next three years.
It looks as though the double dip recession is going to go on for a while. During the first dip we saw companies extending replacing cycles – what impact do you expect this second dip to have? As the economy remains unpredictable we are seeing that many van fleets have to do something to keep their vehicles reliable and able to do the required job. Ongoing contract extension isn’t necessarily the viable option if the vehicle contract has already been previously extended. This is where a leasing provider can become a true trusted adviser and provide expertise on the most cost-effective solution. We are also seeing some customers, who have survived the first wave of recession, investing in their vehicle fleet, recognising that their business model has been strong enough to survive the harshest of economic times and now ready to grow their business. Some fleets operate five- or six-year replacement cycles which they say reduces costs, but others replace every three years to take advantage of technology advances on safety and fuel efficiency. What advice do you give on how long to keep vans? Part of the LeasePlan consultative sales approach is to fully qualify our clients’ and prospects’ van fleet needs. As a result of such detailed qualification, we consider the type of use and fleet profile, in order to come up with the most cost-effective solution for a business application. In some instances and markets, a five- or six-year replacement cycle would be recommended, in others, a three- or four-year cycle would be most efficient. Our current average contract term on commercial vehicles is just under four years. What is your own opinion of electric vans as fleet alternatives, how many does LeasePlan have on its books and what do you think their future in fleet will be? We currently have a small number of electric vans on our fleet (and some electric cars too). Of late, we’ve seen the Renault
OR FLEET OPERATORS Kangoo van rise in popularity as an electric option. We always ensure that an operator’s vehicle usage is thoroughly qualified before recommending an electric vehicle. Many fleets initially express an interest in running electric vans as an answer to reducing their carbon footprint, reducing fuel costs and ticking certain corporate ‘green boxes’. However, we always stress that an electric vehicle may look good on paper, but the full practicalities of running them, especially the infrastructure support have to be considered before committing to them on the fleet. Where, then, do you see the future of commercial vehicles lying? In the short term, I see the future fuel of choice for the majority of van fleet operators will remain diesel. Some smaller vans are reverting to petrol of course, but as for true alternative fuels, there are so many external factors
at play, including of course, government grants, taxes and infrastructure that to predict the long term future is very subjective! How do you see the van leasing sector in 10 years’ time? We see van leasing continuing to be a viable method of vehicle acquisition and management. We predict that the market will develop further as more van fleet operators are educated on the advantages of leasing. We envisage less leasing companies as more are bought out or merged with others. We believe that the leasing provider of choice will be the one that demonstrates its understanding of the van fleet being a true commercial vehicle fleet and offering customer service propositions such as UPtime to respond to those operator’s challenges. With the right understanding of the van fleet market, leasing will become a more attractive offering to the van operator.
Mark Lovett: sees fewer leasing companies in the future as a result of buy-outs and mergers
fleetnews.co.uk/fleetvan July/August 2012 27
First drive Vauxhall Vivaro Ecoflex
Green credentials come at a price Impressive performer, but Vivaro Ecoflex is £1,100 extra
The Vivaro Ecoflex comes with a variety of fuel-enhancing gadgets
What’s new? n Exhaust gas recirculation n Low rolling resistance tyres n Aerodynamic kit
T
By Trevor Gehlcken hey’ve been commonplace on cars for a few years, but the eco badge has only recently started to migrate across to vans. Vauxhall is the latest with the Vivaro Ecoflex, which is just one of a string of cars and vans from the company now bearing this moniker. The Vivaro Ecoflex comes with a variety of gadgets to enhance fuel economy, including a light on the dash informing the driver when to change up or down gears at the most fuel-efficient moment. Curiously, though, it doesn’t include a stop-start device, which is an obvious way to cut fuel use and CO2 emissions. In urban driving situations, stop-start is reckoned to save around 16% on fuel. Our van didn’t have rear parking sensors either, which I really miss after getting used to them on the Ford Transit which I have on a long-term loan (see our comparison on the opposite page). These gripes apart, the Vivaro Ecoflex is an impressive performer, offering a fuel economy figure of 40.9mpg and CO2 emissions of 180g/km. Based on the short-wheelbase standard-roof model, it has subtle specification changes that Vauxhall reckons could lead to fuel savings of more than £800 over a three-year operating cycle, and £1,100 over four
28 July/August 2012 fleetnews.co.uk/fleetvan
A light on the dash tells the driver when to change gear years, compared to the 198g/km/37.6mpg standard version. With a 90-litre fuel tank, the van is capable of more than 800 miles on one tank of fuel. Changes from the standard model also include exhaust gas recirculation cooling and optimised gear ratios, justifying the Ecoflex tag. It also features improved thermal management, low rolling resistance tyres and an aerodynamic kit. The starting price is £19,948 ex-VAT against £18,843 for the entry-level standard van. However, our test model was fitted with electronic stability control which comes at an extra £400, air-con at £630 and other extras, which took the price to £21,873.
Verdict
A great van with impressive green credentials. The Ecoflex costs £1,100 more than its standard brother, although this is mitigated by the potential fuel savings over four years.
Behind the wheel This van originally appeared as the Renault Trafic way back in 2001 so you could be forgiven for thinking it’s getting long in the tooth. Don’t believe a bit of it. It’s a tribute to the designers that, at 11 years of age, it still looks and drives as well against the opposition as it did on day one. The Vivaro is among the best vans to drive because its seats are supportive and comfortable, its road manners impeccable and its driving dynamics superb. And now it has the additional appeal of improved fuel efficiency. The Vivaro has guaranteed its place as one of my all-time favourites. Our test van had two single seats rather than the usual bench affair, which went down very well with my passenger, who often complains about the state of those hard benches. The 2.0-litre diesel powerplant fires up smoothly while the van really does excel with its smooth gearchanges, nicely-weighted power steering and slick handling. With just 90bhp on tap, the Ecoflex takes a while to get going at lower speeds but, then again, if you want power above frugality, you aren’t going to choose this van in the first place. There will invariably be a price to pay for maximum fuel economy – and that price here is a rather lazy progress up the road. Rowing around the gears doesn’t really help either, so eventually I gave up trying to squeeze out an extra drop of power and instead sat back to enjoy the driving experience in the knowledge that I was both helping to save the planet and saving myself some cash at the same time. Mind you, once wound up to motorway speeds the Ecoflex is an effortless cruiser.
Specification Gross vehicle weight (kg): 2,770 Power (bhp/rpm): 90/3,500 Torque (lb-ft/rpm): 177/1,500 Load volume (cu m): 5.3 Payload (kg): 1,100 Comb fuel economy (mpg): 40.9 CO2 emissions (g/km): 180 Price as tested (ex-VAT): £21,873
L o n g - t e r m t e s t F o r d Tr a n s i t E c o n e t i c
Transit wins hands down We pitch the Econetic against Vauxhall’s new Vivaro Ecoflex rival
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By Trevor Gehlcken he arrival of a direct competitor to our longterm Ford Transit gave me an opportunity to put them head-to-head. And Ford will be pleased to hear that after a good deal of headscratching, number-crunching and general searching through press packs, the Transit Econetic stands up pretty well against this rival – the Vauxhall Vivaro Ecoflex. Direct comparisons are often nigh on impossible between two vans. You have to weigh up standard specification on each vehicle against its price. And, as each has a list of options as long as your arm, it’s a difficult job. Then there is the comparison of different engine power, cargo volumes and payloads. And, of course, what we can’t factor into the equation are any discounts you, the fleet buyer, may be able to negotiate. But I think I’ve got it pretty much
weighed up and our Transit comes out a clear winner. Both vehicles weigh in at 2.8 tonnes gross vehicle weight but while Vivaro and Transit have the same payload (around 1,100kg), Transit beats Vivaro on load volume (6.5 cubic metres against 5.3). The Vauxhall offers 90bhp to the Transit’s 100bhp, but the price of the Vivaro at £19,100 undercuts the Transit at £19,445 (ex-VAT). Turning to standard specification, things start to get interesting. Despite a slightly higher price, the Transit has electronic stability control as standard which immediately puts it higher in my estimation. It’s a £400 option on the Vauxhall. It’s a must-have accessory for any safety-conscious fleet operator and I don’t understand why manufacturers don’t all follow Ford’s lead and make it standard across the industry. It will be a legal requirement in Britain from October 2014, but apart from
Transit has a standard stop-start device; Ford reckons fuel savings of up to 16% are possible
Ford, Mercedes-Benz, Volkswagen and Iveco, all the other manufacturers charge for ESC on certain models. The other item my Transit has that the Vivaro doesn’t is a standard stop-start device which cuts the engine when idling at traffic lights and roadworks. If you drive your vans round town, Ford reckons fuel savings of up to 16% are possible. Other noticeable gaps in the Vivaro proposition include a passenger airbag and rear parking sensors. These are available as options at £250 and £200 respectively. When it comes to fuel economy, the Transit notches up another win. The Vivaro’s official combined figure is 40.9mpg while the Transit returns 43.3mpg. It might not sound a lot on paper, but it equates to an extra 109 gallons of fuel over 80,000 miles. At current prices that’s an additional cost of £700 per van. The Transit’s CO2 figure is lower than the Vivavo’s too – 170g/km to 180g/km. However, the Vivaro’s driver’s seat is more comfortable than the Transit’s and the Vivaro nudges ahead on general ride and handling.
The Vivaro has more space in the cab area generally, with noticeably more legroom. So, while drivers may edge towards the Vivaro, if it’s figures alone you are crunching, the Transit wins hands down. And talking of figures, our Transit’s fuel economy is gradually nudging up as the miles pile on and the engine loosens up. The official figure of 43.9mpg is still a little way off but we have managed to top 40mpg in the past month. The van has been with us now for six months and so far we haven’t had to add a single drop of oil, a puff of air in the tyres or even a squirt of liquid in the radiator or windscreen washer bottle. That’s not a bad tally in 6,000 miles of hard driving.
Specification Gross vehicle weight (kg): 2,800 Power (bhp/rpm): 100/3,500 Torque (lb-ft/rpm): 228/1,800 Load volume (cu m): 6.5 Payload (kg): 1,097 Comb fuel economy (mpg): 43.5 CO2 emissions (g/km): 173 Price as tested (ex-VAT): £24,594
The figures stack up on our long-term Transit Econetic
fleetnews.co.uk/fleetvan July/August 2012 29
F i r s t d r i v e C i t r o ë n B e r l i n g o e - H D I A i r d r e a m L1 6 2 5 L X
New version is better than ever The stylish Berlingo is now even more cost-effective
The only vehicle in the sector to offer free sat-nav and vehicle tracking
What’s new? n Standard stop-start system n Improved fuel efficiency n Micro-hybrid starter-generator
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By Trevor Gehlcken he Citroën Berlingo broke the small van mould in 1995, being the first small LCV to be built from scratch as a commercial vehicle. Other rivals at the time were cars with van bodies added. Since then this van has sold by the bucketload and has metamorphosed over the years into the handsome beast pictured on this page. The arrival of the smaller Nemo in 2008 saw the Berlingo grow in size and now this van has two unique features – it is the only small van to offer three seats in the front (along with its twin, the Peugeot Partner) and the only vehicle in the sector to offer a free Trafficmaster sat-nav and stolen tracking system. Now another set of tweaks has further improved the costeffectiveness and stylishness of the Berlingo. The underbonnet changes are the items in which fleet managers will be most interested. New Euro Vcompliant engines offer better fuel economy and lower CO2 emissions and the model on test here, the e-HDI, returns a healthy 57.6mpg on the urban cycle while emitting 129g/km of CO2. The e-HDI moniker means that this model features fuel-saving devices such as stop-start, which uses a micro-hybrid starter-generator for smooth restarting
30 July/August 2012 fleetnews.co.uk/fleetvan
and a regenerative braking system which recovers and stores energy that would otherwise be lost. Our short-wheelbase version offers 3.3 cubic metres of space but the test model had one of those clever fold-down passengers seats that increases the volume to 3.7 cubic metres, a standard fitting on LX models. Other standard goodies include ABS brakes, remote central locking and electric/heated mirrors. Sadly only on the options list, unlike its rival the Ford Transit Connect, is electronic stability control, which adds £250 to the standard £13,465 (ex-VAT). Other options include air-con at £600, rear parking sensors at £190 and metallic paint at £315.
Verdict
The Citroën Berlingo was already a cracking little van and is now even better with all these fuel-savings extras, which can only further enhance its fleet credentials. LEFT: The only small van to offer three seats in the front
Behind the wheel Can there ever have been a more ubiquitous van than the Berlingo? You can hardly go down any street in the UK without meeting one. Of course, the model on test here is a very different animal from the original one (which you still see out and about quite a bit) and we all really like its styling and practicality. Despite the Berlingo boasting an official fuel economy figure of 57.6mpg, the reading on the dash never went above 49.5mpg during our test week. Mind you, this is probably because most of our driving was on major roads and motorways, so the useful (and fuel-efficient) stop-start system hardly ever cut in – as it would in the official mpg test. When it did, what a smooth startup it achieves, especially against rivals which simply use the starter motor. On a couple of occasions in traffic I mistakenly thought it hadn’t fired up at all. General ride and handling are superb, with nicely weighted power steering. The 90bhp 1.6-litre diesel powerplant feels lively in the extreme as max torque comes at a very low 1,500rpm. One problem for me, though was a lack of legroom in the cab, caused by the mesh bulkhead being placed a little too near the front. The metal mesh as opposed to solid metal also allows quite a bit of noise from the rear to intrude into the cab. Citroën deserve praise for giving away the Trafficmaster system. It works easily and brilliantly and acts as much more than a sat-nav unit. It warns of speed cameras ahead, acts as a stolen vehicle tracking system and, by hitting an icon on the touchscreen, you can actually talk to someone live at Trafficmaster HQ in Oxfordshire and ask for anything from help in an accident to the location of your nearest Indian takeaway!
Specification Gross vehicle weight (kg): 1,990 Power (bhp/rpm): 90/4,000 Torque (lb-ft/rpm): 159/1,500 Load volume (cu m): 3.3 (3.7 Payload (kg): 670 Comb fuel economy (mpg): 56.7 CO2 emissions (g/km): 129 Price as tested (ex-VAT): £13,465
Tuesday 16 October 2012 Heritage Motor Centre, Gaydon Grey Fleet Management
Accident Prevention
• Understand the cost and risk of your grey fleet - and what you need to do about it
• The three keys to crash reduction – reduce all incidents by focusing on the driver, vehicle and journey
• New options to replace the grey fleet • Case study – how one fleet successfully made the change
• Expert guidance on key elements of accident prevention - driver training, tracking, incentivising drivers, regular vehicle checking, inspections and licence checking
Duty of Care
• Using technology to drive safety improvements – best practice ideas for introducing new systems
• How a duty of care solution can reduce the number and severity of accidents • Why safety policies will cut fuel use and vehicle emissions • Quick ways to reduce your fleet costs through improved driver skills and behaviour
Funding • Facing the future of funding – overview of funding choices that could benefit your business
Fleet Software
• Blueprint for better fleet finances – how to choose the best funding option for your business
• Use fleet software to identify savings on the 3 largest fleet costs: fuel, accidents and maintenance
• Adding value – how to adopt a partnership approach for a more effective fleet
• Case studies - how innovative thinking can have a real impact • Software strategies to help you manage risk and grey fleet
Accident Management • Crash course – understanding the timeline and consequences of accidents • How to minimise downtime and manage costs following collisions • Critical actions you must take following incidents
Telematics / Journey management • Telematics briefing – keeping up-to-date with trends that can help your business • How this can improve safety, efficiency and cost aspects for your business • Telematics on the frontline – how technology is saving money and improving every day
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