Fleet Van October

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

October 2012 fleetnews.co.uk/fleetvan £5 where sold

IS THIS THE VAN TO TAKE MERC TO NO2?

Citan fills vital gap in Mercedes-Benz van line-up; fleet demand expected to rise Case study: Kelly Group

Dermot Coughlan on why spot hire is a cost-effective option

Insight: Endorsements

Advice about how to challenge parking fines – and win

Insight: Hannover CV show

Key models from Ford, Peugeot and Citroën star

Contact us Fleet News, Media House, Lynch Wood, Peterborough PE2 6EA. Email fleetnews@bauermedia.co.uk 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 Mark Cartwright, John Charles, Alasdair Suttie, Chris Lowndes (photographs) Production Head of publishing Luke Neal Production editors Andrew Ryan Alan Salt Designer Charlotte Boon 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 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 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.

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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: The year ahead The use of speed limiters and action over fuel prices head most van operators’ wish lists

6 I Risk: SMR

The right service, maintenance and repair policy will minimise your vehicles’ risk

9 I Compliance: Endorsements

Parking law changes outlaw private clampers, but it’s not all good news for van operators.

10 I Environment: Fuel

Inefficiencies in van delivery fleets are costing money and wasting man hours.

15 I Remarketing: Best practice Market intelligence is key to successful remarketing.

16 I Fleet case study: Kelly Group ‘Spot hire is our most effective option,’ says operations director Dermot Coughlan.

18 I Industry spotlight: Volkswagen

Improved supplies of Amarok expected to lift Volkswagen’s market share.

26 I Hannover show

Van makers unveil new models at Europe’s largest commercial vehicle show.

28 I Cover feature First drive: Mercedes-Benz Citan Manufacturer targets No2 sales spot after launch of its first small van.

NEXT ISSUE – November Group test

Ford Ranger, Great Wall Steed, VW Amarok and Isuzu D-Max: find out which is best

Fleet case study

How Babcock launched a safe driver scheme

Remarketing

Why internet auctions boost re-sale values

fleetnews.co.uk/fleetvan October 2012 3

B e n c h m a r k i n g b y t h e F TA T h e y e a r a h e a d

Optimisation at heart of van fleet strategies The use of speed limiters and Government action over fuel prices head most operators’ wish lists

By Mark Cartwright, Jackson said: “Until there is a real cost-effective head of LCVs, Freight Transport Association solution it’s still a PR position with little benefit.” ith our ‘glorious’ summer a Rory Morgan, national logistics general fading memory and the promise manager at Iron Mountain, said: “We have just of a new year fast approaching the one electric vehicle and we will explore other we wondered what FTA’s van opportunities for electric LCVs with Renault operators’ outlook was for the being the best option at this moment we feel.” next 12 months and what their wishes would be It seems that for most van operators, 2013 is if they could lay their hands on the mythical likely to be more of the same. Most see little magic wand… change in their fleet size and mix although they We all know about the continuing doom and will continue to challenge the status quo to despondency around the economic outlook but identify greater fleet efficiencies – exactly what how’s that translating in terms of expectations you’d expect from a dynamic and responsive for fleet operators? fleet manager.

Interestingly, the majority of respondents reported that they expected the size of their van Let’s dust off the magic wand. We asked fleet fleets to remain the same (59%) or to grow (26%). managers for their thoughts…

Having said that, the increasing use of tech- We asked what initiatives they would like to nology is clearly starting to identify opportunities implement within their own fleet. to optimise vehicle strength within van fleets by The common themes are cost and safety and recognising greater efficiency. the common solutions identified “Investment into our distriburevolved around greater adoption tion network and our telematics of technology, including telemsystem means we have become atics, speed limiters and tracking. smarter at how we use our Respondents that expected Derek Boulton, EHS and transvehicle fleet, driving efficiencies their van fleet size to port manager at Invensys Rail, while maintaining service,” remain the same in 2013 said: “We operate 200 vans and confirmed Lee Jackson, fleet see the installation of speed manager at HSS Hire. limiters and proximity sensors as “We have identified opportunian important step in further ties to improve vehicle utilisation improving both the safety and since working with Masternaut,” efficiency of our business”. said Ian Leonard, group fleet Respondents that There are also a number of services manager at Speedy Hire. expected their van fleet fleets looking to reduce the risks How about the adoption of altersize to grow 2013 associated with the use of mobile natively fuelled vans? phones.

In the April 2012 edition of Fleet Van we reported “I have proposed an updated mobile phone that most of our operators were taking a ‘wait policy and recommended a blanket ban on and see’ approach before specifying electric all use while driving, including hands-free,” vans. This position remains with just one in 10 of said Morgan. operators expecting to take on EVs in 2013.

Public perception and the stigma of “white van

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59% 26%

“No responsible operator can justify their vehicles being used on company business exceeding the national speed limit” Ian Leonard, Speedy Hire 4 October 2012 fleetnews.co.uk/fleetvan

Crystal ball gazing time which show that only a few fleets might shrink, despite economic concerns

man” remains an area of concern for many operators. We asked what the van operating industries should be doing to improve the way vans are viewed in UK… Leonard summed the views of many operators: “Speed limit all vans to 70 mph. No responsible operator can possibly justify their vehicles being used on company business exceeding the national speed limit.”

Tim Bright, group transport manager at Paragon Laundry Group, added: “The use of speed limiters in vans will do more than anything else to improve public perception of vans and challenge the white van man stereotype.”

Chris Carver, head of logistics, Healthcare at Home, argued: “It must be recognised that vans are of just as much importance (if not more) to the economy as HGVs.” John Blakeley, of Clancy Docwra, agreed: “Van operators are not the bad guys.

“Vans are essential for the work we and many others carry out.

“We have been part of FTA’s Van Excellence programme since the very beginning because these are exactly the messages the scheme sends out to the public and Government.”

Not surprisingly, the Government finds itself on

EDITOR’S COLUMN Stephen Briers, editor, Fleet Van

W

e cover two big events in this month’s issue: the Hannover Commercial Vehicle show and the Fleet Van Summit.

One gives you a heads-up about the vans due to come to market over the next few months; the other provides insight and best practice for fleet operators in key areas of their business.

The big news at Hannover was the unveiling of the new full-size Transit (see page 26). It promises best-in-class load carrying, handling and performance but, while its Custom smaller sibling won admiration for its stylish car-like face, big brother is, well, a little ugly.

“The new full-size Ford Transit is, well, a little ugly” the receiving end of the magic wand with one four letter word dominating responses – FUEL! Rory Morgan summed views up with: “Fuel, fuel, fuel... do I need to elaborate?”

How else could the Government improve the lot of van operators?

“Have a minimum speed for motorways, more people are driving at 50mph which means HGV are using lane two more and causing clogging of the motorway network,” said Gary Clark, transport manager at Deborah Services.

Manufacturers were also encouraged to do more to support the needs of van fleet operators. A fleet director at a major UK fleet called

for “more commercial awareness within dealer networks. There are too many car dealers playing at being ‘van centres’”.

This was a view supported by Leonard: “Dealers should be open 24/7 and recognise the van operator for what he is: not a car operation.”

Vehicle specifications were also a target for the magic wand with a recurring demand for vans to be easier to speed limit or for a 70mph limit to be set as a default.

“Speed limiters should be set at 70mph as default and only a fully authorised certificate to increase allowed to accommodate blue light services,” said Morgan.

WHAT CONCLUSIONS CAN WE DRAW? There is an unquestionable desire across users to not only operate safely and efficiently but to be seen and recognised for doing so. There is a great underlying pride in the vital role van operations play in our day-to-day life and a demand for wider public and Government recognition of this.

Operators are stepping up to the plate with many demonstrable improvements across safety and efficiency by manufacturers, dealers, lease and hire providers and the Government all have their part to play.

As a global van, Ford has designed something to appeal to all markets, but perhaps the American one most of all. Hence the huge truck-like grille that dominates the front. An acquired taste, perhaps.

For those van fleets attending our Summit, safety and legislation were high on the agenda. Find out more on pages 20-23.

Elsewhere in this issue we find out why Kelly Communications puts rental at the core of its van fleet policy, while Volkswagen’s CV director Alex Smith outlines his strategy for 2013.

Let me know any issues you would like us to cover in future editions of Fleet Van by emailing me at stephen.briers@ bauermedia.co.uk

fleetnews.co.uk/fleetvan October 2012 5

R R ii ss k k S S ee rr vv ii cc ee ,, m m aa ii n n tt ee n n aa n n cc ee aa n n dd rr ee pp aa ii rr

SMR regime reduces risk Vans Vans which which are are not not properly properly maintained maintained pose pose aa hazard hazard to to drivers drivers and and pedestrians pedestrians

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By Trevor Gehlcken

By Trevorisk Gehlcken management and servicing, mainisk management servicing, tenance and repairand (SMR) at first mainseem tenance and repair (SMR)areas at firstofseem to be completely different fleet to be completely different oftie fleet management – but in fact areas the two in management – but in fact the two tie in together. together.

Vans which are not correctly maintained will Vansawhich areonly nottocorrectly maintained cause risk not their drivers, but alsowill to cause a risk not only to their drivers, also to anyone else who happens to get in but their way, anyone else happens getdrivers. in their way, whether it be who pedestrians or to other whether it betopedestrians or other drivers.

According the Vehicle and Operator Services According to thearound Vehicle50% and Operator Agency (VOSA), of panel Services vans at Agencytonnes (VOSA), around 50% of panel vansfirst at 3.0-3.5 gross vehicle weight fail their 3.0-3.5 tonnes gross vehicle weight fail their first MOT test.

MOT Onetest. of the problems is that with the advance of One of the problems is that with the advance of technology and quality, many vans require technology and quality, many vans require servicing only every 25,000 miles. In that time servicing 25,000 In fall thatbelow time brake padsonly can every wear out, tyre miles. tread can brake pads can wear out, tyre tread can fall below the legal limit and wiper blades can perish – all thewhich legalhave limit the andpotential wiper blades canaccidents. perish – all of to cause ofThe which have the potential to cause accidents. second problem is that many firms see The second is thatasmany see skipping routineproblem maintenance a wayfirms of saving skipping routine maintenance as a way of saving cash – even though there is a mass of evidence cash – even there is the a mass to prove that though this simply isn’t case.of evidence toWhatever prove thatthe thisreason, simply isn’t the the factcase. remains that Whatever the reason, the fact remains vehicle maintenance to ensure safety shouldthat be vehicle maintenance to ensure safety at the heart of any van fleet strategy. should be atDowntime the heart usually of any van fleetlosing strategy. means money – when means money – when a Downtime vehicle is inusually the garage it losing isn’t out on the road. a vehicle is in the garage it isn’t out on the Here, two manufacturers – Mercedes-Benzroad. and Here,–two manufacturers Mercedes-Benz and Iveco stand out above the– others because they Iveco – stand out above the others because they also sell trucks and therefore dealers offer levels also sell trucks and therefore dealers offer levels

Regular maintenance is vital to ensure vans remain roadworthy Regular maintenance is vital to ensure vans remain roadworthy

of service that the other van makers can’t match, of service thatservicing. the other van makers can’t match, such as 24/7 such as 24/7 servicing.

Mercedes-Benz has just launched a new online Mercedes-Benz just a newin online service adviser in has a bid to launched make booking and service adviser in a bid to make booking in and quotes on repair pricing easier. quotes on repair pricing easier.

It enables van owners to get a no-obligation It enables van ownersantoonline get abooking no-obligation quote and also complete at any quoteofand time thealso day.complete an online booking at any time day.

It isofofthe paramount importance for fleets that It issupplier of paramount importance foroffleets that their treats the SMR regime van fleets their supplier treats the SMR regime of van fleets differently to that of cars, according to Mark Wolfe, differently to that of cars, according to Mark Wolfe,

director customer service, fleet management and directorservices, customeratservice, fleet management and garage BT Fleet. garage services, at BT Fleet.

He said: “Expert management of an organisaHe said: “Expert management ofand an organisation’s van fleet can deliver huge cost efficiency tion’s van fleet can deliver huge cost and efficiency savings. savings.

“For some fleets, the implications of an SMR “For some fleets, SLAs the implications an SMR supplier not meeting could meanofdowntime supplier meeting could costs ofnot more thanSLAs £1,000 permean day,downtime so as a costs of more than £1,000that perfleet day,operators so as a minimum it is imperative minimum is imperative that fleet operators adhere to itthe manufacturer’s recommended adhere schedules.” to the manufacturer’s recommended service service schedules.”

How How to to tell tell if if your your vehicles vehicles are are not not getting getting the the best best treatment treatment Early warning signs include: Early signs include: n Highwarning maintenance spend n Increasing High maintenance n numberspend of garage visits n Lack Increasing number ofreplacement garage visitsvehicle n of or ineffective n Lack of or ineffective replacement arrangements in place to keep the vehicle business arrangements in place to keep theevents

operational during SMR Common business faults operational during events n occurring tooSMR frequently n Major Common faults occurring n component failures too frequently n Major component failures BT Fleet’s Mark Wolfe recommends that van BT Fleet’s should Mark Wolfe recommends operators ask themselves thethat van operators should ask themselves the following questions: following questions: n Are you getting value for money and can n Are you getting value for money and can

6 October 2012 fleetnews.co.uk/fleetvan 6 October 2012 fleetnews.co.uk/fleetvan

your current supplier demonstrate how much your current demonstrate how they aresupplier saving you?

Is much are saving you? with n yourthey supplier collaborating n Is your supplier collaborating with manufacturers and claiming back warranty manufacturers andyour claiming back costs on behalf?

How warranty costs on your behalf? n long are repairs taking?

Downtime n How long are repairs Downtime

can massively impact taking? business operations and can massively impact business operations

profitability What and profitability n proportion of repairs are they n What proportionout of repairs they sub-contracting to otherare suppliers?

Can sub-contracting out toservicing? other suppliers? n they offer mobile This can n Can they offer mobile servicing? This can significantly reduce downtime One significantly reduce downtime surefire way of keeping on the right One surefire way of keeping on the right

side of the law is to join the Freight Transport side of the law is to join the Freight Transport Association’s Van Excellence programme, Association’s Van Excellence programme, which was launched to raise standards in the whichcommercial was launched to raise standards in the light vehicle industry. light commercial vehicle industry.

Fleets which sign up don’t have to belong to Fleets which sign up don’t haveon to abelong the FTA, but will be given advice varietyto thetopics FTA, –but will be given advice on a variety of including servicing, maintenance of topics – including servicing, and repair – to help them gain maintenance their and repair of – to help themThe gainscheme their won Certificate Excellence.

Certificate of Excellence.

The scheme won the Best New Product or Service Award at the 2012 BestFleet New News Product or Service Award at the Awards. the 2012 Fleet News Awards. n Log on to www.vanexcellence.co.uk for n Log on to www.vanexcellence.co.uk for details details

Legislation Endorsements

Fighting parking tickets Rule changes outlaw private clampers, but it’s not all good news

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By Alasdair Suttie he outlawing of most vehicle clamping in England and Wales on October 1 was welcome news to thousands of van operators.

It means only the police and certain other agencies can clamp vehicles, usually for more serious offences than parking misdemeanours.

However, in abolishing clamping and with it many of the rogue clampers that have made drivers’ lives a misery, the change in law now allows private landowners to issue parking tickets they can then pursue using the DVLA (Driver and Vehicle Licensing Agency) database to send the fine to.

For fleet operators, this is yet another headache as the fine will be sent to the vehicle’s owner, who is not necessarily the person who was driving at the time.

Jeanette Miller, managing partner at Geoffrey Miller Solicitors and president of the Association of Motor Offence Lawyers, said:

“Landowners don’t have to prove who was driving, fine unreasonably, the first thing is to establish only who the vehicle is registered to. Most fleet who the ticket is from. This will be dictated by operators are aware they need to have a log of where you parked, on public or private land. who is driving and when. Otherwise, the van’s You must be clear about why you want to operator and not the driver appeal against the fine. If you would be obliged to pay the fine. feel the fine is unfair, estabCompanies need to have a plan lish why, whether it’s a faulty in place to make employees ticket machine, missing liable for any fines they incur.” signs or the number plate Van drivers are often more has been wrongly identified. liable to traffic wardens’ attenIf you’ve parked on a tions due to loading and public road, the appeals unloading in roads where there process should be explained is no convenient parking space. clearly on the ticket, which However, all is not lost as van will usually give you 14 days drivers and operators can chalto pay a reduced fine before Wolseley UK lenge parking tickets and the the cost doubles. You must spokesman success rate for overturning a appeal as quickly as possible parking fine is higher than you as the fine will be frozen at might think. Even though 6.8 million parking the reduced rate while you do so and charged tickets were issued in 2011, only one in four was at that lower rate if the appeal is unsuccessful. contested. And, of those, 39% were successful.

For fines issued on private land, the penalty If you feel you have been issued with a parking amount charged can be dramatically higher.

However, companies can only charge a penalty proportionate to the loss they claim to have incurred, now recommended at around £100 by the British Parking Association for its members. The days of £1,000 on-the-spot n Establish who has issued the parking fine fines are over, no matter what the signs say. n Take pictures of where your van is parked, any obscured or misleading signage, or The British Parking Association, which runs broken ticket machines the Parking on Private Land Appeals (POPLA) n Contest the ticket immediately service, said: “The driver or registered keeper n If the fine is upheld by a private parking company, appeal to POPLA (Parking on must challenge the fine directly with the Private Land Appeals) parking company that issued the fine. If the n If an appeal to POPLA fails, you can contest the ticket in court company upholds the fine, the driver or keeper must then be offered the right to appeal to the independent POPLA adjudication service.”

Edmund King, president of the AA, said: “If you’ve been issued with a ticket, check who has issued it and then take photos of where the car is parked, any signs that are not clear or visible, and photograph any ticket machines not working. Then appeal straight away.”

Miller points out that with private parking fines, the penalty ticket may not arrive for some days or weeks through the post.

She said: “This delay can make the ticket more difficult to contest. However, you should make your case as soon as possible.”

A spokesman for Wolseley UK said: ‘Many fleet operators simply accept parking fines as part and parcel of this industry.

“This needn’t be the case. With a large fleet, if we blindly paid every fine, it would cost a fortune. We assess every fine and challenge those we feel are unfair. In many cases, the appeal is successful and it costs nothing to challenge it.”

Challenging a parking fine can be time It’s important to consuming, but the cost saving to van drivers appeal a parking ticket as soon as possible and operators can be significant.

“It costs nothing to challenge a parking ticket”

TIPS FOR CHALLENGING A PARKING FINE

fleetnews.co.uk/fleetvan October 2012 9

Environment Fuel management

Fuel cards and technology will deliver diesel savings tOP TOP tiPS TIPS

the The maintenance of a vehicle falls generally into three areas – mechanics, tyres and windscreens – and all three need to have a basic set of rules laid out when it comes to improving the cost-effective running of your fleet. a A drivers’ handbook is a must. all All these rules should be clearly stated and drivers should sign to say that they have read and agree with its contents. that That way, drivers can’t comeofback you in the event of a Up to 60% van to deliveries problem andtheir pretend they didn’t know. fail to reach destination at the first attempt.

UndeR UNDER the THE bOnnet BONNET where Where a van is used by a single driver, checking for faults is a pretty straightforward affair. however, However, where many drivers use one vehicle, it’s imperative to make one person responsible for checks. even Even if this means paying that person a little bit extra, it’s a worthwhile exercise as your company can soon lose thousands of pounds if, say, an engine seizes up because no-one has bothered to check the oil level for the past year. checks Checks are fairly simple and shouldn’t take long:

harder if they are incorrectly inflated.

Under-inflation of 20% (around 6psi in many cases) can reduce tyre life by 20%, massively increasing running costs. “tyres “Tyres which are 20% under-inflated will increase fuel consumption by around 3%.” all All tyres begin to age and deteriorate when exposed to sunlight and atmosphere. tyres Tyres which are six years old should be inspected professionally as ageing can increase the risk of a tyre failure. and And it’s not just a matter of economics.

Fleets have a duty of care to make sure drivers are safe on the roads – and this includes tyres.

Inefficiencies in van delivery fleets are costing money and wasting man hours

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By Trevor Gehlcken recent survey into the home delivery market by Heriot-Watt University for environmental group Green Logistics revealed a staggering fact – up to 60% of van deliveries fail to reach their destination at the first attempt.

This high failure rate is mainly due to the recipient not being at home and no neighbours around to leave a parcel with. But other factors such as wrong labelling and driver mistakes also come into play. Whatever the reason, it is obvious that a lot of fuel and working hours are being wasted at a time when money has never been tighter.

Fuel is the second highest fleet cost of a vehicle after its initial purchase price, but many van fleet operators do very little to either rein in their fuel bills or attempt to optimise the routes their vehicles take.

Van operators have access to a range of services and equipment which can help monitor and manage fuel use.

As with any change in management style, when setting out on a new fuel management and route the pre-recession norm,” said.

“Tomust ensurebethat optimisation strategy, thehefirst step to fleet usingat our systemand canwhere easily look decision-makers at what you are doing present see at agoing glance whether SMR costs outweigh you are wrong. depreciation, simple ‘red’ and ‘g(and reen’reduce) forecasting The easiestaway to measure fuel graphic beenfuelcards developed.” usage ishas by using to buy diesel. That way The system notwhich only come storesfree, data,show but actively monthly reports, who is manages, monitors analyses it automatically, using the most fuel.and If driver A gets 35mpg from with automated tolerance checks andin notifications his van and driver B gets 30mpg a similar being carried out by the system. vehicle and travelling on similar roads, clearly action needs to be taken.

Optimum time forsave vehicle replacement Fuelcards also money at the pumps – up Evans added: managers canaccording graphically to 10p per litre“Fleet at motorway prices, to view exactly where vehicle costs move from a Steve Clarke, general manager at the Fuelcard normal upsays to a with spikefill-now-pay-later via the ‘red’ and ‘ginitiareen’ People.curve And he graphics and then identify the optimum age of the tives offered by fuelcards, a firm’s cashflow probvan it should lemswhen will be eased.be defleeted.

“Fleet said: managers must bearpump in mind that Clarke “Buying fuelalso at below prices, some are more likelypaperwork, to take extra withoutvan thedrivers traditional refuelling is care newbiggest vehicle benefit than anisolder reallylooking helpful,after butathe felt vehicle, which can also mean operating costs rise in cashflow. at“You a faster thanpay before.” buyrate cheaply, later, are not charged for

every Every time the tank is filled: n check Check oil level every Every 3,000 miles: n check Check fan belt n check Check hoses and cooling system n check Check brake fluid n check Check power steering fluid n check Check transmission fluid if necessary On top of this, obviously, if any other knocks, squeaks and rattles occur these credit and always know exactly where you stand.” should be reported immediately as early Another method of optimising fuel usage – and can savemore a great deal of cash. one attention which is becoming popular with UK van fleet operators – is the fitment of speed limiters. tYReS TYRES Fleet Van recently ran a test with a Volkswagen tyres to be neglected anyat Tyres tend Transporter fitted with a Cobramore speedthan limiter other item on the van. close Close attention 56mph.

We undertook a 260-mile test route and belimiter paid toremoved them if they to give thenshould had the and are did the same good service. route again.

The result was that we used a stagto long tyre lifetime is keeping The geringthe 37%key more fuel second round. them at theUK correct pressure – andAndrew this means a Cobra managing director Smith weekly check, along with a visual daily said: “Any light commercial vehicle that is regumake sure no foreign objects are larlyglance drivingtoon motorways, dual carriageways in them. and embedded A and B roads should see an impressive Peter Fairlie, group sales director of atS ATS reduction in fuel running costs.

The Fleet Van test euromaster, said: “tyres toawork Euromaster, “Tyres showed a 37% reduction in fuelhave use at restricted

10 October 2012 fleetnews.co.uk/fleetvan

windScReenS WINDSCREENS Of all the maintenance areas of a van, the windscreen should be the easiest to check. any Any chips in the windscreen should be reported immediately – a repair costs around £70, whereas a replacement can be anything up to £1,000. drivers Drivers should be instructed to check their screens every day – it only takes a second. it’s It’s worth doing as: n 99% of screen breakages start with a small chip n One in four vans are currently driving round with chips that could be repaired na A repair can only be carried out on recently chipped screens it It is worth warning against the dangers of opting for cheap windscreen replacements. Some 30% of the rigidity of modern vehicles is in the windscreen and cheap screens sometimes do not fit properly. this means in theeven eventby of an Thisbut 56mph, we that estimate setting the accident, the screen will pop out, meaning limiter at 70mph, operators will see a 15-20% greater risk for the driver and passengers. reduction in fuel use.”

The simple solution to optimising route schedcOnclUSiOn CONCLUSION uling is by fitting telematics systems to your vehivehicle checking outlined here iswhich a Vehicle cles. There are as plenty available offer relatively simple matter, but it anything from a basic sat-nav tomay stopnot yourbe drivers so easylost to put theoryfuel intotopractice. getting andthis wasting a full-blown fleet there are twosystem. approaches – carrot or stick There management – and either may work for your fleet. Solutions A recent survey

by TomTom Business the mayhow involve disciplinary The stickjust highlighted important promptaction deliveries ifare. procedures are not followed and the carrot may include a small bonusofor prize According to the study for the best-performing consumers, conducted drivers. by global in carrot always In our experience, research consultancytheTNS, more works than a better. quarter of respondents have

fleetnews.co.uk/fleetvan fleetnews.co.uk/fleetvan September 2012 11 11

Advertisement feature

Top reasons for fitting cold weather tyres I

n a tough economy, firms which minimise downtime and keep going in spite of freezing temperatures, snow and ice have a clear competitive advantage.

That’s the message from Peter Fairlie, group sales director at ATS Euromaster, which became the first tyre specialist to launch a dedicated cold weather tyre offer for UK fleets two years ago.

Fairlie explains: “No fleet manager can control what the winter weather will throw at them, but fitting cold weather tyres allows a company to limit its ability to hurt their bottom line.

“Every major fleet we fitted cold weather tyres for last year will be using them again this winter, without exception. And here are top five reasons why.”

Cool running Cold weather isn’t just about snow and ice.

For the last 50 years the UK’s average temperature during winter months has consistently been 7°C or below. Met Office data for 10 of the UK’s largest cities shows that between October 1, 2011 and March 31, 2012 temperatures dropped below 7°C during prime commuting hours on 147 separate days. And at Peter Fairlie these temperatures, the tread compound in normal tyres begins to harden, providing less grip.

Cold weather tyres are manufactured with

“Every major fleet we fitted cold weather tyres for last year will be using them again this winter, without exception” Peter Fairlie, group sales director, ATS Euromaster

more natural rubber and advanced silica compounds to minimise the hardening effect, giving extra grip and shorter stopping distances in cold, damp conditions.

Together with sophisticated multi-sipe tread patterns, they offer a performance guarantee that no summer tyre can equal.

Remember that, like commuters and business motorists, van drivers are most likely to be on the road in the early morning and evening, when the temperature is at its coldest, and that’s when they need cold weather tyres most.

Increased safety Fitting winter tyres will not only enhance your Duty of Care to staff, it will make your fleet safer on the road too. Industry experts in Holland studied 25,000 insurance claims and found a 32% increase in winter claims for vehicles fitted with summer tyres, and only a 12% increase for vehicles with cold weather tyres.

Enhanced mobility If your fleet is stationary when the snow is falling, you’re still paying the lease, rental or loan costs (or ‘opportunity loss’ on the capital), road tax, insurance, depreciation, roadside recovery and the driver’s employment costs. But goods aren’t being delivered, raw materials may not arrive, the services you offer are delayed, so invoicing and cash-flow will suffer.

No-one should venture out if the experts (police and motoring organisations) caution against it, but cold weather tyres make vehicles less vulnerable to bad weather. It’s why ATS Euromaster will be fitting winter

rubber to more than 25 major blue light fleets, plus some of the UKs largest home delivery and utility companies, this winter.

Maximum longevity Cold weather tyres don’t just grip better than regular summer tyres when the temperature drops, they last longer too.

During winter months, the wear on normal tyres increases, reducing overall tyre longevity by up to 20%. This in turn has a negative impact on tyre replacement costs.

No compromise Fitting cold weather tyres during winter months and standard ‘summer’ tyres when the temperatures rise give vans the best of both worlds. And it needn’t cost the earth, as you’re only causing wear to one set of tyres at a time. Total tyre wear doesn’t increase – and if there’s a slight cost to the purchase of tyres, fitting, and out-of-season storage in a tyre hotel, businesses can measure that against downtime following an accident, and improved tyre wear during the cold months.

The fact that cold weather tyres stop vehicles more effectively in cold weather is a measure of performance and should make companies less vulnerable to bad weather. They’ll help to keep you mobile and reduce the number of days when snow and ice keeps your drivers off the road.

To find out more, call 0845 618 0421 or visit www.atseuromaster.co.uk

Environment Fuel management experienced poor punctuality on a regular basis. Furthermore, 73% of those questioned say they are frequently kept in the dark about

delays.

Some 78% of consumers said they would be less likely to use a company again that failed to give precise or acceptable appointment time slots. A further third (34%) believe service standards (punctual deliveries and job attendance times) have deteriorated since the global economic downturn.

Thomas Schmidt, managing director, TomTom Business Solutions, said: “Fleet management technology has helped thousands of businesses realise significant efficiency gain, and in some cases, meet strict service level agreement targets.

“By boosting service and better managing expectations by communicating reliable ETAs, companies will minimise customer frustrations, culminating in a better experience for them and a strengthening of their business reputations.”

Telematics provider CMS SupaTrak, has worked with many van fleet customers who have seen the benefits of the technology – particularly when it is teamed with driver training.

Managing director Jason Airey said: “In today’s climate, every opportunity to save money is crucial. Yet van drivers could be wasting hundreds, if not thousands, of pounds by using fuel unnecessarily. This can be difficult to manage, but with a telematics system it is much easier to ensure vans are being driven with fuel efficiency in mind.”

CMS SupaTrak has developed the EcoTrak solution, a telematics system that establishes driver behaviour and characteristics that are in need of improvement including harsh braking, speeding, idling, over revving and excessive throttle use.”

To get the best results, this information is then used to deliver Driving EcoCoaching, where CMS SupaTrak’s expert team train drivers in fuelefficient driving techniques.

“Telematics systems provide fleet managers with critical real time data about vehicle and driver behaviour” Steve Blackburn, vice-president of Navman Wireless

The easiest way to measure (and reduce) fuel usage is by using fuelcards to buy diesel. That way monthly reports, which come free, are generated to show who is using the most fuel

“We have successfully completed an ECU reprogramming trial and achieved 10% efficiency savings” Duncan Webb, commercial director at BT Fleet Airey said: “While some drivers can be slightly apprehensive about the technology being introduced, CMS SupaTrak has been running the Driver EcoCoaching programme for many years and has found that all drivers, regardless of experience, can improve their driving style to become more fuel efficient – as well as safer, which is an added benefit of the driving training.”

The benefits of using telematics were also highlighted by Steve Blackburn, vice-president of Navman Wireless.

He said: “Telematics provides fleet managers with critical real time data about vehicle and driver behaviour, which empowers them to improve driver behaviour and vehicle performance.

“With this information businesses can make informed decisions to help reduce fuel consumption, extend equipment life, cut carbon emissions and improve driver safety, therefore keeping risks low, profits high and boosting a business’s green credentials.

“This, in turn, will help businesses to increase productivity, enhance the service they offer to ensure satisfied customers and also boost the efficiency of their fleet.”

Fleet management firm BT Fleet has taken the art of fuel saving one step further. The company has identified that a van’s fuel consumption can be reduced by reprogramming the engine control unit (ECU) from the manufacturer’s default settings to one more tailored to the types of journeys a van is used for.

Duncan Webb, commercial director at BT Fleet, said: “BT Fleet has successfully completed a trial with a cross-section of BT’s van fleet and achieved 10% efficiency savings, with no performance or safety issues. In addition, drivers have reported improved drivability and engine response.

“As engine control technology governs the way fuel is burnt as well as the amount of fuel consumed, our findings have projected a

TOP TIPS FOR FUEL-EFFICIENT DRIVING: n Plan your journey to avoid congestion areas and optimise multiple delivery trips. n Make sure the vehicle is regularly serviced and maintained. n Stick to speed limits: 70mph uses 9% more fuel than 60mph and 15% more than 50mph. Driving at 80mph uses 25% more than 70mph. n Ensure tyres are correctly inflated at all times to reduce wasted fuel and to ensure the van is safe to drive. n Don’t be idle – there is no reason for engines to be switched on when the vehicle isn’t moving, unless you are at a traffic light or stuck in a jam. If you are going to be stationary for more than one minute, switch off your engine. n Keep the vehicle moving smoothly and anticipate the road conditions ahead. By looking ahead and being observant, you can avoid harsh braking which increases wear and tear on the brakes and tyres and is dangerous. n Select the right gear and change up early to reduce fuel use. reduction in CO2 emissions of at least 25%.

“This has allowed BT to enhance its commitment to reducing its environmental impact, while making fuel cost savings for the long-term.

“The technology is fully transferable, which has prompted BT Fleet to develop plans to deploy it to other vehicle types, including specialist vehicles and cars.”

fleetnews.co.uk/fleetvan October 2012 13

Advertisement feature

Values rise in September as demand climbs in post-holiday period

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ccording to BCA’s latest Pulse Report, average used LCV values improved by £149 (3.6%) to £4,224 in September compared to August, although year-on-year figures lagged behind for the first time this year.

Average age fell slightly to just under 58 months while average mileage increased to nearly 79,000. Values increased in all three sectors, with the dealer part-exchange average values reaching record levels.

Performance against CAP average improved over the month by nearly two points to 100.7%.

Duncan Ward, BCA’s general manager – commercial vehicles, commented: “The market bounced back in September following the quieter summer period.

“Much of this improvement is seasonally driven as trade buying activity rises to meet the needs of small businesses who often look to change their vehicles in the autumn months.

“However, we are yet to see any significant uplift in vans from corporate fleet sources and demand is still outstripping supply which is keeping values firm. Trade buyers have to look further afield to secure the stock they need and BCA’s Live Online and Bid Now/Buy Now internet platforms

Trade buyers have to look further afield to secure the stock they need and BCA’s Live Online and Bid Now/Buy Now internet platforms are seeing plenty of activity are seeing plenty of activity.

“Many buyers are looking at older, higher mileage vehicles if they are in good condition and as a direct consequence we have seen values rise in the dealer P/X sector, while demand for the very few late year, low mileage LCVs remains intense.

Some astute rental operators are selling stock to take advantage of the demand in the sub-two year old van market and are reaping the rewards as a result. There is also interest in poorer condition vans if they are valued sensibly. Even so, we expect to see some pressure on values as volumes rise in the wholesale sector and retail demand softens in the run-up to the year end.”

“Many buyers are

looking at older higher mileage vehicles if they are in good condition”

Average used LCV values 2010-2012

Source: BCA

£5,000

£4,000

Monthly values in the fleet & lease LCV sector improved by £158 (3.2%) to £5,002 in September, while performance against CAP increased by more than a point to 99.9%.

Retained value against Manufacturer Recommended Price also improved by a point to 31.65%, with average age and mileage falling slightly. September 2012 was £39 (0.5%) behind the same month last year – with average age rising but mileage falling.

Part exchange Part-exchange values reached a new high in September, improving by £190 (6.8%) over the month to reach £2,974. CAP comparisons improved by nearly three points to 102.62% and have risen by six points in the past quarter, outperforming the fleet & lease sector. Year-on-year values remain well ahead by £221 or 8.0%, with age declining and mileage rising in 2012.

Nearly new

£3,000

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Duncan Ward, BCA

Fleet & lease

Nearly-new values improved to £12,006. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor. CAP performance increased by three points to 103.82%.

Europe’s No.1 vehicle remarketing company log on to www.british-car-auctions.co.uk or call 0844 875 3480

Remarketing Best practice

Market intelligence is key to successful remarketing Keeping up with changing trends means building relations with auction houses

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By John Charles uction halls are the stock exchanges for the remarketing of vehicles so it is essential that fleet operators ‘plug into’ marketplace intelligence and react as quickly as possible to changing commercial vehicle demand.

Vehicle leasing and fleet management company Alphabet sells 3,000 light commercial vehicles annually, ranging in size from car-derived vans to the largest panel vans as well as minibuses and a wide array of specialist vehicles operated by local authorities.

Although age and condition vary, virtually every vehicle is sold through auction giant BCA at the company’s Blackbushe, Measham and Belle Vue centres with BCA Live Online an additional, and vital, channel. Occasionally, Alphabet may utilise other auction outlets such as Fleet Auction Group or Shoreham Vehicle Auctions if it unexpectedly has vans to defleet.

“We are reactive to the marketplace, but the key is to react very quickly to ensure best prices are obtained,” said Duncan Metcalf, head of remarketing and logistics at Alphabet, which operates a risk fleet in excess of 100,000 vehicles, of which 16% are light commercials.

Metcalfe, who has 25 years of vehicle disposal knowledge, said: “I am learning all the time and it is very important to keep up with the moving market and tap into any new trends as they develop. Complacency must never develop.”

For example, in the build-up to the London 2012 Olympic Games, Alphabet received marketplace intelligence that rental companies were short of mini-buses in the south of England.

“We heard that the vehicles were making good money at BCA Blackbushe. I quickly got on the phone to my logistics department and we started to steer all minibuses due to be sold to the south.

“It underlines the importance of working with an auction company to ensure they perform a good job in promoting available vehicles so the

TOP TIPS n Vehicle presentation is important n Understand the market and react without blindly chasing RV guide prices n Listen to logical advice on vehicle mix, pricing and selling tactics n Rostrum representation at sales brings benefits n Work with your chosen remarketing company as a partner and foster a good centre management relationship

Duncan Metcalf: still learning after 25 years of vehicle disposals right buyers are attracted to the auction to get the other price guide, and other vendors and buyers. best bids.”

“Communication is key and although CAP puts The majority of vans are being used as a work a value on a vehicle it doesn’t mean it is right. The tool and that, said Metcalfe, must be taken into reaction of the buyers in the auction hall or the consideration at the point of disposal. bidding activity on-line is the real barometer and He said: “Of course we expect the customer market knowledge should be more important [fleet/driver] to look after the vehicle while in than a Red Book figure.” contract, but the chances are In addition to listening to that it will have a few more advice and acting on informabattle scars than an extion in relation to model mix, company car and a common pricing and selling tactics to sense approach must be obtain best price, Metcalfe, applied with regards to damage.” who ensures that he or one of For example, a wide range of his department colleagues valeting options are available attends every sale, said: from BCA, and Alphabet “Attendance at the sale by the applies them on a vehicle-byvendor is important. It is the vehicle basis. only real way of assessing the Metcalfe advised: “If the condition of the vehicles and Duncan Metcalf, paintwork is dull or if there is gauging the market.

Alphabet ghosting from the trade name “You are also able to talk to deletion, a body map (machine your peer group and find out operated polish) would certainly be of benefit to what is going on in the market. If, for some reason, enhance a vehicle’s overall appearance. As bids I am unable to attend, I use the BCA Live Online in the auction hall tend to increase in £50 increplatform to communicate live to the rostrum. This ments, this upgrade pays for itself in just one bid.” enables me to give immediate decisions on proviFleet managers should remove racking from sional bids from the comfort of my desk.” vehicles prior to sale with the kit being refitted to Metcalfe says it is critical to work in partnership new vans as they join the transport operation. with a remarketing company and foster good He said: “Racking does not add any value to a relations with their LCV management centre. vehicle and a fleet can almost certainly re-use it “It is important to keep up to speed with what and that will help to reduce operating costs.” is going on and the potential challenges ahead,” A vital market intelligence gathering exercise he said. for Metcalfe is meetings hosted by BCA with used “It is critical that both the vendor and the van experts from CAP, which publishes LCV price remarketing supplier are working together to guide Red Book, alongside representatives of deliver the right result.”

“The key is to react very quickly to ensure best prices”

fleetnews.co.uk/fleetvan October 2012 15

Supplementing its fleet with up to 400 rented vans brings flexibility and savings to Kelly Group

‘SPOT HIRE IS OUR MOST EFFECTIVE OPTION FOR VANS’

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By John Charles ehicle rental is seen by many fleets as a stop-gap transport solution, but not at Kelly Group where it plays a major role with an average 200-250 light commercial vehicles on hire at any one time.

The company typically spends more than £1 million a year on the spot hire of vans, which become a part of the company’s fleet for periods of time ranging from three days to three years.

Kelly Group, a telecommunications and utilities service provider which operates in industries as diverse as telecommunications, rail, metro, highways and brewery installation, uses spot hire to supplement its own fleet of 1,300 vehicles, of which some 85% are light commercial vehicles with the remainder company cars plus a handful of HGVs. The company outright purchases vehicles on its mainstream fleet with vans typically defleeted when four to five years old depending on the condition of vehicles, the buoyancy of the used LCV market and the duration of contracts on which vans are working.

Kelly Group operates a solus Ford light commercial vehicle fleet which

16 October 2012 fleetnews.co.uk/fleetvan

contains virtually every van produced by the ‘blue oval’ from the car-derived Fiesta van to a Transit 350 long wheelbase Crew Cab Tipper.

In addition to the more than 1,100 owned diesel light commercials on the company fleet, the number of vans on spot hire on the Kelly Group fleet can be as high as 400, depending on the duration of contracts.

Operations director Dermot Coughlan says: “The spot hire of vehicles provides the company with a cushion of vehicles which we like as we need to be flexible in terms of our ability to service contracts.”

Coughlan, operations director at Kelly Fleet Services since May 2009 and previously transport manager at the company for 21 years, oversees the fleet operation across the group’s six subsidiary companies: Kelly Communications, Kelly Integrated Transport Services, Kelly Telecoms, Kelly Fleet Services, Kelly Property and Kelly Leisure.

Major clients include BT Openreach and Virgin Media. Vans operating on contracts with those two organisations include some branded Kelly as well as others branded in the BT Openreach and Virgin Media liveries. It also has vans branded both Kelly and the name of the client.

Fleet case study Kelly Group

“Spot hire means that if we don’t need vehicles we simply send them back” Dermot Coughlan, Kelly Group These include contract location with Coughlan saying: “If vans are needed in a location where we don’t have a strong geographical presence, for example Northern Ireland or the east of Scotland, we would look to rent and ask the supplier to manage the vehicles for the duration of the contract.

“Similarly if the company wins a six-month contract and 50 vans are required we may well spot hire all vans for the duration of the project.”

Although operating a solus Ford owned fleet, vans on hire could carry the badge of a range of other manufacturers as determined by vehicle availability with ‘right size for the job’ being the key criteria.

Rented vans will almost invariably be supplied in ‘raw’ form - although some may arrive at Kelly Group equipped with roof racks and flashing beacons. The company prepares the vehicles with livery, racking and other specialist features in its central workshops in Dunstable, Bedfordshire.

Fact File

Company: Kelly Group Operations director: Dermot Coughlan Time in role: three years LCV fleet size: 1,100 LCV brands on fleets: Ford Van replacement cycle: four-five years With its own workshops and mobile vehicle repair and maintenance fleet, Kelly Group undertakes work on preparing both owned and rented vehicles for the road with appropriate livery and racking.

Kelly Group has six rental suppliers - Northgate Vehicle Hire; Burnt Tree Vehicle Rental; LCV Hire Solutions, a new business that acquired Reflex Vehicle Solutions earlier this year; SHB Hire; Hertz and most recently Hiregate Vehicle Rental.

The decision about which rental company to us is largely based on price.

However, the ‘quality of the product’ available, including vehicle specification and service levels – especially in relation to a vehicle breakdown – are key factors for Coughlan in the decision-making process.

“A lot of our work is time sensitive so we cannot afford to have vehicles off the road. We do operate our own mobile vehicle workshops, but it is essential that we also have support from our rental suppliers,” he says.

Whether or not to spot hire vehicles for a particular contract or to utilise the company’s core fleet of vehicles is a complex decision-making process determined by a variety of factors.

Flexibility and utilisation Maximum utilisation of the Kelly Group-owned fleet is critical for Coughlan which is critically one of the key reasons why he opts to use spot rental as a ‘permanent’ aspect of his fleet operation and not a stop-gap measure He says: “I don’t want vehicles standing idle because that costs money. Spot hire is by far the most effective way of supplementing our fleet with additional vehicles to meet the workload of the business. The flexibility that spot hire provides means that if we don’t need vehicles we simply send them back.”

The multi award-winning fleet decision-maker believes that in a challenging economic climate spot hire is an under utilised financial tool.

Coughlan, who saw the Kelly Group fleet named Van Fleet of the Year (500 plus vehicles) in the 2010 Fleet Van Awards and has won multiple Fleet News Awards most recently in 2011 when named UK Fleet of the Year, explains: “The key is vehicle usership. We don’t want to spend our own money on vans when we might only require for a contract lasting a few months and the money could be better used elsewhere in the Kelly Group business.

“Spot rental is a good tool. Many companies undertake project work. If those projects are short term and the business is unsure as to future workload then spot rental makes absolute financial sense.

“At the end of the project, vehicles are returned and you start again with none of the company’s own money tied up in vehicles that are being under utilised if buying outright or the business tied into penal vehicle leasing contracts.”

Rental means latest low emission vans The Kelly Group won an Energy Savings Trust Fleet Hero Award in 2010 and, more recently, became one of the first members of the Freight Transport Association’s Van Excellence programme – an industry-led initiative to raise standards and improve the image of the UK’s growing van sector.

Typically vehicles sourced from rental companies are amongst the newest on the roads and therefore powered by the very latest fuel-sipping, low emission engines and equipped with the most recent safety features.

Coughlan says: “Our own fleet of outright purchased vehicles is modern so it is also important that vehicles on spot hire fit the image Kelly Group is promoting. We don’t run old vehicles so we don’t expect to get old vehicles from hire companies.”

He adds: “The most cost effective way to run the Kelly Group fleet is in-house using our own money and spot hire provides by the far the most cost-effective option when we require additional vans.

“The difference in terms of cost between leasing and rental is not that much, but rental provides business flexibility which is not available with leasing. Meanwhile, for the size of fleet that Kelly operates coupled with the fact that we have our own maintenance workshop and bodyshop and mobile vehicle mechanics it makes sense to purchase our own vehicles.”

fleetnews.co.uk/fleetvan October 2012 17

SMITH CONFIDENT OF MORE VW SUCCESS Improved supplies of Amarok expected to lift Volkswagen’s market share

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By Stephen Briers fter two consecutive years of double-digit growth, Volkswagen Commercial Vehicles (VWCV) has seen a fairly flat 2012 so far – although its slight rise of 0.4% comfortably betters the industry’s 8% drop.

Reliability, driver satisfaction and strong aftersales support from the network of 71 commercial vehicle specialists have combined with a young model range recently enhanced by the van maker’s first move into the pick-up sector with the Amarok.

Alex Smith took over as director of commercial vehicles a year ago, replacing Simon Elliott, who moved to head up Volkswagen Group Ireland.

Since then, VWCV has moved into second spot in the sales table, behind Ford. It’s a continuation of the growth policies implemented by his predecessor: the question for Smith is how he builds upon this success.

Fleet News: Volkswagen has leapfrogged Vauxhall to become the UK’s second largest van seller. Was this a business objective?

Alex Smith: We don’t obsess about being number two; it’s about developing our business in a sustainable, predictable way. We looked at our share in each segment and put plans in place to achieve our growth aspirations.

Wherever that leaves us in the table is where it leaves us.

FN: So which parts of the market have you identified as offering the greatest potential for growth?

AS: SME fleets are a big market for Caddy and Transporter. But the large van segment is more dominated by larger fleet operators – this is where we weren’t making the penetration. This goes into the most commercial bit of

Fact File

Company: Volkswagen Commercial Vehicles Commercial vehicles director: Alex Smith Sales (YTD): 23,371 (up 0.41%) Market share: 12.49% (up 0.84%) Fleet sales YTD: 19,959 Key models: Caddy, Transporter, Crafter, Amarok

the commercial sector and where we see the potential for the Crafter. So we are putting more effort in here.

Fleets know about our product but they wanted us to prove our ability to meet their demands, for example roadside repairs and repairer geographic coverage. In the first half of this year, Crafter sales have increased by 30%.

In terms of scale, Crafter is still a significant opportunity – in panel vans, chassis cabs and conversions.

Our Transporter share of the market is more than 20% this year. Everyone knows that they are reliable vans and have high driver satisfaction but there was a perception that they are expensive and light on equipment. We needed to tackle this with wholelife costs, residual values and demonstrating that our equipment levels are competitive and also that SMR is competitive. We have made it clear that our vans are accessible to fleets.

FN: The van product lists are very complex compared to cars. What steps can you take to make them easier for customers to understand?

AS: We are making it clear to customers that our buying process is easy. It’s prevalent in cars with simple trim structures in our product line up. Now on Caddy and Transporter we have straightforward trim lines and a walk-up through the range rather than extensive options. We have bundled together common specifications and build in the value by charging less than all the options selected together. It simplifies the range for customers and gives them better value.

We are now evaluating this for Crafter. But there is so much specialisation demanded from customers which means fewer clear patterns on buying requirements.

There is also a trend towards higher basic equipment levels in commercial vehicles. We won’t see an increase in new model replacements but we will see more significant mid-life cycle updates on vans and also the step up with each new product will be fundamental.

Alex Smith: looking to penetrate large van segment

18 October 2012 fleetnews.co.uk/fleetvan

FN: Amarok has been in huge demand but there have been significant shortages in supply. How are you tackling this?

AS: We have just transferred European production for Amarok to Hannover to speed up deliveries. We have also introduced an eight-speed automatic – previously it was manual only. The introduction is concurrent with BlueMotion technology on Amarok. Fuel consumption and CO2 is slightly improved and we have increased power from 163bhp to 180bhp. We have still not seen

Industr y spotlight Volkswagen

The reliable Transporter has high driver satisfaction

the full potential of Amarok because of the product limitations Now we have more product we believe we can increase sales.

FN: Volkswagen offers BlueMotion across its range of cars. Do you plan to extend this technology to all your vans as well?

AS: We have BlueMotion Technology across our van range and we are now introducing pure BlueMotion. BlueMotion Technology will become the standard choice and we will also see take up of pure BlueMotion as our most efficient derivative in the range.

FN: There is a perception among fleets that franchised dealers are more expensive than independents for servicing and repairs. What are you doing about this?

AS: We are increasing transparency with national pricing structure for jobs.

Also, we have relaunched our service plans this year offering customers a choice of monthly, upfront or pay-on-demand plans which gives them cost predictability over the life of the vehicle. And with service intervals extending and all vans on variable intervals, fleets are entitled to a free of charge express visual check at our dealerships.

FN: Fleets have increased their replacement cycles since the initial recession. What pressures does this place on manufacturers?

AS: We see it as an opportunity. Yes, cycles have lengthened but we were less exposed because our vans are very reliable so we already appealed to fleets that had longer replacement cycles. We are winning business with fleets like BSkyB which wanted to go to a five-year cycle.

Our average cycle is just under four years but we have done a larger proportion on 36 months contract hire in the SME market. However, this is down to us being able to promote great 36-month contract hire rates. These rates have encouraged some fleets to move from outright purchase to contract hire.

further service elements that are commonplace in cars, such as timed appointments and first-time repair rates.

W

hat’s most significant about Volkswagen’s rise to second in the best sellers’ list is the fact that it has come with just three van models, and each has contributed.

Since 2007, Caddy’s share of the market has risen from 9.5% to more than 21%; Transporter has increased from 15.5% to more than 20%; and Crafter is up from just under 5% to 5.2%. Total share of the market has risen from 9% to 12.49% so far this year (15.17% in the fleet sector).

Despite Smith’s assertions that Volkswagen is not keeping too close a watch on its new position in the sales chart, it will face growing competition for business particularly from Mercedes-Benz which has ambitious growth aspirations of its own with next year’s arrival of the Citan.

However, with supplies of Amarok, the fourth model in the range, now flowing more freely, Volkswagen expects to take greater share of that market. And with its van centre network providing high levels of service and top quality aftersales support, Smith is confident that Volkswagen will continue to win more fleet business. n New Amarok Canyon at Hannover, p27 Caddy’s market share has increased from 9.5% in 2007 to more than 21%

FN: Do you cross-sell between cars and vans, and what lessons can your van operation take from the car division?

AS: There’s co-operation but it’s striking a balance between integrated solutions and specialisation. We also cross-sell across all the Volkswagen Group car brands [Audi, Skoda, Seat]. The strength in the car business is robust practices, especially on the service side. We have an opportunity to develop

fleetnews.co.uk/fleetvan October 2012 19

Fleet Van Summit

Headline sponsor

MAKING FLEETS FIT FOR PURPOSE

Expert advice on the hot issues affecting van fleet bosses at industry’s major conference

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By Trevor Gehlcken round 200 industry leaders and van fleet operators converged on Millbrook Proving Ground in Bedfordshire for the Fleet Van Summit – an event that has become the major conference in the LCV calendar.

A stunning array of speakers offered advice and opinions on some of the major issues of the day and delegates were also able to discuss their problems during various networking sessions.

Top bosses from headline sponsor Fiat Professional, including director Sebastiano Federigo, were also on hand to meet visitors and discuss their fleet needs.

Delegates were also able to browse the various stands manned by Hertz, Alphabet, TomTom Business Solutions, Nationwide Accident Repair, BT Fleet, AA DriveTech, Venson, GreenRoad, Opus Claim Solutions, National Accident Repair Group, Cenex, the Freight Transport Association, Ivor Searle, Selsia Vehicle Accident Centre, Ashwoods, TrakM8, Bott and TVS Supply Chain Solutions.

Stephen Briers, editor-in-chief of Fleet Van, said: “The Fleet Van Summit has been growing in importance since it was launched in 2008 and it has now become the major event in the van fleet calendar.

“This year’s event saw the strongest line-up ever and all the delegates went away with lots of ideas for improving their fleet operations.”

The theme of this year’s Summit was: “Are your vans fit for purpose?”.

Speakers covered issues such as delivering cost savings and efficiencies, learning about forthcoming legislation and gaining a useful insight into keeping drivers safe on the roads – all of which are aimed at helping UK light commercial vehicle fleets to run more effectively.

20 October 2012 fleetnews.co.uk/fleetvan

Van related health and safety legislation Jonathon Backhouse, director of transport law specialists Backhouse Jones Having a valid driving licence does not mean a driver is competent, delegates were warned by Jonathon Backhouse.

And though the driver was firstly responsible for the vehicle while on the road, the company could be prosecuted in the event of an accident.

He said: “The problem is that in many cases driving is not the main job of your staff – they may be plumbers, electricians or even sales people.

But your logo will be on the van and in the event of an accident it won’t look good for your firm.

“You must ask yourself: ‘are your drivers concentrating on driving and not on the job ahead or the worry of getting stuck in a traffic jam and missing a job?’.”

Backhouse also warned about the dangers of failing to check basic items like oil and brake fluid.

Some drivers, he pointed out, did not even know how to do this, and if a serious accident occurred because of lack of maintenance, the police would want to ascertain that drivers had been shown how to carry out these tasks.

Health issues also came under the spotlight.

Backhouse said: “Don’t ignore any health issues among your drivers. If an accident happens, you could be held responsible, especially if the driver has mentioned a health problem to you previously. Don’t put commercial interests before those of health and safety because the police will enquire into this in the event of a death crash.”

He also gave a warning about overloading vehicles. He gave an example of a company he had recently defended which bought a fleet of new vans without realising that they had lower payloads than their old vehicles. When VOSA pounced on the firm, it was discovered that more than half the vehicles were overloaded.

Backhouse stressed: “You must have a health and safety policy and you must act on it.”

Type approval legislation Tony Soper, principal engineer – homologation at Millbrook Proving Ground Fleet operators have been urged to watch out for big changes to vehicle type approval which are due to take effect on April 29 next year.

Until recently, any vehicles which had been converted had to be approved to UK construction and use regulations.

But since 2009, the EU has been rolling out a new set of rules which mean that all conversions, such as tippers, dropsides and box vans, will have comply to the extra regulations.

Vans up to 3.5 tonnes GVW come into this category next April.

But Tony Soper had a surprise for delegates.

He said: “In discussions we had have with the Vehicle Certification Agency (VCA) it is now clear that these new rules affect not only converted vehicles but also ply-lining, fridge and freezer units, additional seating, tow bars and internal racking.”

Soper said the cost of getting type approval under the new regulations was high and could take months to achieve, but he pointed out that in the main, responsibility for doing this lay with manufacturers, converters and dealers.

However, he warned delegates: “Fleet operators must establish that type approval has been obtained before signing any contract to buy vehicles that have been converted in any way whatsoever, even down to ply-lining in the rear.”

“There is nothing to fear from the Corporate Manslaughter Act if your health and safety systems are in place” Andrew Woolfall, Backhouse Jones

Reducing the size of your fleet David Bowen, managing director, BT Fleet Fleet operators who think it’s impossible to save on their costs need to completely change their mindsets, according to David Bowen.

And to prove it he demonstrated to delegates how his team had saved the BT fleet 10% of its costs in just a year, with even more savings on the way.

Bowen said: “We started to focus on downtime and costs, beginning with cutting back on multiple parts suppliers, improving garage efficiency and leveraging our buying power.

“But we soon realised that this alone wasn’t going to save anywhere near 10%. What was needed was fewer vehicles on the fleet being better utilised.”

Bowen set up a team of 12 people to report on how the vans were being used.

This report was completed in three months by using telematics data (after discussion with the relevant unions), analysing fuel spend and studying HR data.

He said: “As a result of our report, we have removed 2,400 vehicles from the fleet in 15 months and have achieved savings of £8.5 million.

“Efficiencies can be made by any size of fleet by using these methods. It doesn’t take a great investment but what you need is a change of mindset.

“Once you’ve done this, the savings will keep rolling in. It’s not easy but it can be done and is very worthwhile.”

Q&A – Fleets and the Corporate Manslaughter Act Andrew Woolfall, director of law firm Backhouse Jones Fleets operators who run efficient businesses have nothing to fear from the Corporate Manslaughter Act, says transport law expert Andrew Woolfall.

Woolfall was answering a query from a delegate in the Q&A session about the Act, which, despite being made law in 2007, has so far failed to bring to justice a single company in the transport industry.

The delegate asked if more prosecutions might be on the way.

Woolfall said: “There is nothing to fear from this act if your health and safety systems are in place as they should be.

“Proactive fleets which look ahead are unlikely to be affected.”

However, Woolfall warned that police were increasingly using telematics systems to study the behaviour of drivers in the event of a serious crash.

He said: “Telematics systems will show up the past driving history of a driver as well as what he or she was actually doing at the time of the crash and police are increasingly studying this information.

“However, it is very difficult to prove that a company was at fault in the event of a crash – the vast majority of accidents we deal with are as a result of driver error.”

Safety initiative benefits Rory Morgan, national logistics general manager, Iron Mountain The benefits of implementing a robust heath and safety policy were brought home to delegates

by Rory Morgan when he revealed that his fleet had saved £1.9 million in three years.

Morgan said: “We don’t have accidents – the dictionary definition of accidents is unintentional things that can’t be avoided – but in 99% of cases road accidents can be avoided.”

Iron Mountain employs 20,000 staff and has 3,500 company vehicles. In 2007, accidents cost the company £900,000. The new policy has seen this cost reduced to £500,000 in 2011.

Morgan said: “The first thing is to get staff to buy into the concept of safety.

“Once we had done this, we gave our people coaching on how to do it.

“Our objective was to reduce accidents and improve fuel efficiency – we have done both.”

The first move was to gather fuel data, then install telematics systems from GreenRoad and appoint a number of driver trainers.

Morgan said: “Telematics helps identify the worst drivers then they can get special training.

“We also aimed to win hearts and minds and we did that by engaging staff and rewarding good driving with vouchers to spend.”

Accidents at the firm are now down by 65% and £1.9 million has been saved over three years.

fleetnews.co.uk/fleetvan October 2012 21

Fleet Van Summit What’s on the horizon for van fleet operators?

Beverley Bell, senior traffic commissioner for Great Britain Swingeing new Government legislation against the van fleet industry to improve its image and reputation has been ruled out by Beverley Bell.

However, that doesn’t mean that fleet operators can rest easy. In a passionate plea to delegates, she urged them to raise their game and join schemes such as the Van Excellence programme organised by the Freight Transport Association in a bid to improve accident statistics and save cash.

Bell said: “The public image of van drivers is even worse than that of truck and bus drivers. We have seen a huge increase in the number of vans on the roads and in 2010, 50% of them failed their first MOT test. The test became more stringent in January so we are expecting that figure to be even higher soon.

“But is the Government going to introduce more regulations? No it is not. We are more interested in self-regulation and want to leave it

22 October 2012 fleetnews.co.uk/fleetvan

up to companies to act on their own behalf.”

Bell warned those fleets which run both vans and heavy goods vehicles, and therefore have an O-licence, that this licence could be revoked if vans are found to be defective.

She said: “VOSA will be taking a great interest in smaller vans and an O-licence could be revoked in the worst cases. The state of van fleets has very much gone up the agenda.”

Bell had particular praise for the FTA’s Van Excellence programme.

She said: “This programme is an excellent example of the industry seizing the initiative and running with it. It is self-regulation at its best and costs peanuts compared to the amount of money that can be saved.”

Bell had some timely advice for starting off a new safety policy: “A simple daily walk-round each vehicle by the driver is the foundation stone of any such policy. This way you’ll avoid many of the major problems that happen.

“Do simple things like this, along with focusing on health and safety and driver training, and you’ll reduce accident rates, get more deliveries done on time, lower your insurance bills and gain better profits.”

Changes to tachograph rules and driver vocational licences James Hookham, managing director – policy and communications at the Freight Transport Association (FTA) The UK Government may not be planning any new transport legislation but there are some scary rumblings coming from the EU in Brussels at present, according to James Hookham.

An EU White Paper on commercial vehicles has been published which recommends tachographs for vans down to 2.8 tonnes GVW rather than the present 3.5 tonnes Hookham said that while this paper was aspirational rather than a notice on intent, “these things have a habit of becoming reality”.

He added: “We need to keep an eye on this. It is wishy-washy at present, but when the Eurocrats actually move, there is very little anyone can do to stop them.

“There are claims that this will eventually get voted down, but we are not so sure.

“We are pretty confident it won’t get through,

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but it is a serious proposal and it’s a threat that hasn’t gone away.”

Hookham had some good news, however, on the alternative fuel front.

One of the problems with alternatively-fuelled vans, such as those powered by electricity or LPG, is that they weigh more because of the batteries and tanks, and therefore a 3.5-tonne van will be pushed over the limit so a tachograph needs to be fitted.

This effectively means that few fleets will buy them.

The FTA has been in discussion with the Department for Transport (DfT) asking that the tachograph limit for alternatively-fuelled vans should be raised to 3.9 tonnes.

He said: “Not only did we get a sympathetic hearing from the DfT but they have offered us more as well – this is the sort of Government I like!”

The DfT is also proposing an exemption from driver vocational licences up to 3.9 tonnes, no annual retest requirement, an exemption from drivers’ hours rules, use of rebated fuels and an exemption from the new Certificate of Professional Competence.

Are your drivers fit for purpose?

Dr Lisa Dorn, reader in driver behaviour at Cranfield University The importance of taking a behaviour-based approach to driver training was highlighted by Dr Lisa Dorn.

She said it was important to encourage a safety culture among all staff including senior management. Dorn said: “If managers aren’t implementing this culture properly, then it will have a negative impact on driver behaviour.”

She said there were three steps to take: identifying the risk, taking action and reviewing the result of that action.

And she recommended taking nine steps towards a better safety culture: n Set the targets you want to achieve n Make staff aware of the risk they face n Give information about the consequences of that risk e.g. by using mobile phones while on the move n Assess your drivers’ commitment to change n Provide the right support n Develop stress and time management strategies n Provide praise and encouragement n Monitor behaviour and review your goals n Develop a relapse prevention strategy Dorn also recommended that, in addition to online risk assessment, installing telematics and driver training, companies should set up group discussion workshops where staff could talk about their problems on the road and how they solved them.

“The state of van fleets has very much gone up the agenda” Beverley Bell, senior traffic commissioner for Great Britain

Managing driver behaviour Robert Lindsay, head of driver risk, Balfour Beatty Fleet Services The aim of of a zero harm culture in the company is well-known among fleet operators and Robert Lindsay gave delegates an update of how the campaign was progressing.

It was decided back in 2008 that the company, which employs 500,000 people globally, would aim for zero deaths, zero ruined lives and zero injuries to the public and Lindsay has been in charge of making this happen.

Lindsay has worked with the manufacturers to improve safety of vehicles in areas such as fitment of ESP, rear parking sensors, axle load indicators and tyre pressure indicators and all drivers had to undertake an online risk assessment, with bespoke training sessions for those who fail.

A telematics system has been fitted to vehicles and the firm is setting up a series of incentives such as a driver of the year competition.

Drivers must also read the company’s CV handbook. They are given a test afterwards.

While use of hands-free mobile phones has not been banned, drivers are told about the dangers of using them on the roads and there is a special website which staff can visit to sign up to a pledge not to use mobiles at all while on the move.

So far, said Lindsay, the various sectors of the company had reported accident reductions of up to 49%.

What happens once there has been an accident?

Doug Jenkins, risk management services practice leader at insurance company QBE European operations The dangers of failing to inform the insurance company quickly about an accident were brought home in force at the summit by Doug Jenkins.

He said too may fleet operators busied themselves with other tasks after an accident such as organising hire vehicles etc and he told delegates: “If there is one message to take home from this event which will save you cash it is this – get the crash information to your insurance company straight away.”

Jenkins said the danger of not doing so was that the innocent party would be contacted first by a credit hire company – which is not illegal – but if this happens, costs start soaring.

He said: “If the insurance company gets to the innocent party first, 50% of claims don’t have personal injury such as whiplash in them. Also if the credit hire company gets there first, suddenly parts to repair the innocent party’s vehicle aren’t available for weeks on end and hire charges start racking up.”

How do you spot and manage risks to drivers on site and how can you minimise them?

Andrew Wetters, of the workplace policy team at the Health & Safety Executive The risks of driving on the roads are well documented but fewer fleet operators consider the risks to drivers while onsite.

Andrew Wetters revealed that onsite accidents were the biggest killer in the workplace and drivers faced a significant risk.

He said: “Drivers face risk as soon as they leave their cabs and it is up to the fleet managers to make sure they are kept safe.”

The main risk identified by HSE were: n Falls from vehicles n Being hit by another vehicle n Being hit by a load Wetters said: “The shocking statistic we found was that in 40% of accidents, there had been no risk assessment at the site at all. And even where there was an assessment, it seems that the recommendations are ignored as soon as the management aren’t there to supervise.”

He had some expert advice for fleet operators to avoid such an accident happening: n Buy vans with good load area access n Retrofit specialist equipment such as hoists where necessary n Provide slip resistant footwear to staff n Supervise working practices at all times n Listen to ideas from workers and trade union safety reps

For details on upcoming Fleet News events, visit www.fleetnews.co.uk/events fleetnews.co.uk/fleetvan October 2012 23

IA A show Review

Hannover – the best bits Van makers unveil new models at Europe’s largest commercial vehicle show

Ford unveils new Transit Ford has made a commitment to renew its entire van range between now and 2014 – and this pledge included the separation of the current small and large Ford Transits.

The new smaller version – now called Transit Custom – was unveiled at the CV Show in Birmingham earlier this year and was reviewed in the September issue of Fleet Van. The larger version – simply labelled Transit – broke cover for the first time in Hannover and from the pictures it is clear that Ford is aiming at the American market with this model.

The grille looks like something from the F150 truck and when the new Transit goes on sale in the States it will be offered with the choice of diesel engine or 3.5-litre V6 petrol powerplant, something we definitely won’t see here.

Compared to the outgoing Transit, load volume has increased by around 10% model-for-model, with the largest Jumbo van now capable of swallowing 15.1 cubic metres of cargo.

In addition, an all-new Chassis Cab Super Jumbo derivative will enable five metre box bodies to be accommodated.

Transit Connect is being relaunched in 2013

Ford is clearly aiming at the American market with the new Transit

For Europe, the new Transit is powered by the latest 2.2-litre Duratorq TDCi diesel with a choice of three power ratings (100bhp, 125bhp and 155bhp), and a standard six-speed manual transmission.

Front-wheel drive, rear-wheel drive and allwheel drive versions will be available.

The range of bodystyles and derivatives includes van, double cab-in-van, kombi, kombi van and minibus models, plus chassis-cab and chassis cowl versions. Vans are available in three different lengths and two different roof heights with multiple gross vehicle mass options up to 4.7 tonnes.

Meanwhile, the smaller Transit Connect is being relaunched next year and visitors to the show got the first glimpse this new model.

With completely new looks to complement its bigger brothers, the new Connect promises to deliver best-in-class load carrying ability.

Features include a load-through hatch in the bulkhead and a fold-flat passenger seat enable long loads up to 3.0 metres (SWB) and 3.5 metres (LWB) to be carried.

Additional new features to boost everyday productivity include a dual passenger seat, so that three people can be carried in the cab.

The powertrain line-up in Europe includes the 1.6-litre Duratorq TDCi diesel with a choice of 75bhp, 95bhp and 115bhp versions, and a new 100bhp 1.0-litre EcoBoost petrol engine, plus a version of the 1.6-litre EcoBoost engine available with a six-speed automatic transmission.

Sprinter E-Cell showcases Mercedes-Benz’s electric technology Mercedes-Benz showcased how it is developing electric van technology by unveiling the Sprinter E-Cell prototype in Hannover alongside its new Citan compact van.

The Sprinter E-Cell prototype demonstrates the German brand’s intent to bring more electric vans to market two years after it launched the Vito E-Cell.

The company currently has 500 Vito E-Cell vans on the roads in Europe with nine in the UK. Its Sprinter E-Cell prototype is a chassis cab with 3.5t GVW with a maximum payload of 1,200kg, and aimed to gain feedback from potential customers.

The 95bhp van has a short-term peak output of 136bhp, and standard torque of 162lb-ft with a short-term peak of 199lb-ft.

A Mercedes-Benz spokesman said: “Just like every other Mercedes-Benz, the Sprinter E-Cell will be carefully prepared for practical use before it is launched.”

The van has a top speed of 50mph and is aimed at urban use, with a maximum range of around 85 miles.

26 October 2012 fleetnews.co.uk/fleetvan

New Amarok Canyon on sale next year Volkswagen may not have had any new models to reveal but there was no shortage of fresh variants on offer.

Visitors to the show got a first look the new Amarok Canyon, featuring special orange paintwork, extra lights, undercarriage guards, black wheel arches, Roca alloy wheels and special trimmings in the cab. The new model goes on sale next year.

There was also a new tough Caddy Cross on display, standing out in bright green paintwork and offering 17-inch alloy wheels, black body kit, silver roof rails, side strips and front and rear undercarriage guards to create an off-road look.

Caddy Cross has got an off-road look This model is due to go into production in early 2013 with a wide selection of engines, plus the option of 4Motion all-wheel drive.

Citroën and Peugeot show electric vans Both Citroën and Peugeot will be entering the electric van market next year with emissions-free versions of the Berlingo and Partner – and both vehicles were displayed for the first time at the show.

The two-part battery pack is installed under the vehicle’s flat load deck, so that the load compartment is identical to that found in the traditionally-powered models.

With a total battery capacity of 22.5kWh, the Electric Berlingo and Partner have a range of up to 106 miles.

The vans can be charged in two ways.

The normal charge mode lasts between six and 12 hours, depending on the available current, while the batteries can be charged to 80% of their capacity in just 30 minutes in quick-charge mode.

The Canyon will features Roca alloy wheels

Nissan’s shape of things to come Nissan is in electric mode, with a new batterypowered NV200.

Although still officially a concept vehicle, the e-NV200 gives a clear indication of the distinctive style and, more significantly, the technical make-up of the final production vehicle.

The e-NV200 will be able to harness the energy

stored in its battery to power electric tools and equipment up to 6,000 watts.

Thanks to packaging of the batteries under the load space floor – a location that also helps to lower the vehicle’s centre of gravity – e-NV200 maintains exactly the same carrying capacity as the conventional NV200.

StreetScooter comes with 75-mile range UK driveline technology specialist Xtrac has provided a new, low-cost transmission for the StreetScooter electric vehicle.

The van has been developed by the specialist vehicle manufacturer StreetScooter in Aachen, Germany, as a multi-functional light commercial vehicle for a variety of service industry and trade roles.

It has a power rating of 30-45kW (40-60bhp) generated by a lithium-ion battery and induction motor.

Maximum range is 75 miles and the maximum speed is 53mph.

fleetnews.co.uk/fleetvan October 2012 27

First drive Mercedes-Benz Citan

Citan fills gap in Mercedes range German’s first small van is based on Renault Kangoo Need to know n Citan targeted at urban environments n Diesel engines offer 75bhp, 90bhp or 110bhp n Load capacity up to 3.8 cubic metres

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By Trevor Gehlcken ercedes-Benz may be sitting at a healthy number five in the UK van sales charts, but it has always been hamstrung when it comes to improving its position further – it doesn’t offer a small van. And bearing in mind small vans make up 45% of the total European market, that’s some problem.

However, things are set to change when the Citan goes on sale in Britain in January 2013 and Steve Bridge, UK van sales and marketing director at Mercedes-Benz, is already confidently predicting that with a full range of vehicles on offer, the German manufacturer will be sitting at number two by 2016.

He said: “At present we don’t have a small van to sell and this puts us at a disadvantage as a lot of fleets want solus deals which include large and small vehicles.

“I predict that by 2016 we will take the No 2 slot behind Ford.”

It’s a brave boast but one which has a ring of truth about it. After all, in the world of fleet, many operators indeed want to sign big deals with a single manufacturer and at present they may be tempted to look elsewhere if they need a full range of vehicles.

Few vehicle makers have the deep pockets or inclination to design totally fresh vans and so Mercedes-

Benz looked for a partner to aid it with its launch into this new sector.

As the company already links up with Volkswagen to produce the Crafter, it would be natural to assume that it would simply rebadge the smaller Caddy.

But, rather surprisingly, Mercedes-Benz has decided to link up with Renault. The Citan, underneath, is none other than the Renault Kangoo, although admittedly heavily modified.

At the official launch in April, we questioned the bosses at Mercedes-Benz over this rather curious move but we came away with distinctly woolly answers.

We travelled to Copenhagen to drive the new van for the first time recently and in an interview with van marketing director Bernd Stegmann, he revealed more details.

Stegmann said: “It is true that allying ourselves more closely with Volkswagen would have been the obvious thing to do, but there are two main reasons why we did not. We do not believe that mirroring our two van ranges too closely is a good idea ultimately – we need to maintain distinct offerings if we are to both be successful. Also the Caddy is eight or nine years old now whereas the Kangoo is just three years old and we wanted a newer vehicle to sell.”

So did Stegmann think that buyers would be put off by seeing a three-pointed star on what is essentially a Renault product?

“Not in the least,” he said. “There are a lot of van ranges which are the same – Citroën, Peugeot and Fiat for example. But a lot of people who buy vans don’t even realise that they are basically the same as other Mercedes-Benz reckons that the Citan will help it secure more solus deals and take it to No 2 in the UK van market

Specification

The chunky dash looks as if it comes from a 44-tonne Actros

28 October 2012 fleetnews.co.uk/fleetvan

Gross vehicle weight (kg): 1,785-2,200 Power (bhp/rpm): 75/4,000-114/4,500 Torque (lb-ft/rpm): 132/1,750-3,000 to 177/1,750-2,750 Load volume (cu m): 2.4-3.8 Payload (kg): 490-810 Comb fuel economy (mpg): 56.49-65.69 CO2 emissions (g/km): 112-130 Prices (ex-VAT): tba

Behind the wheel Being an old cynic with many years behind me in the industry, I raised more than one eyebrow when Mercedes-Benz announced that it had got into bed with Renault to produce this new van.

Merc has always prided itself on being a premium manufacturer and – being blunt about it – Renault is not in that league.

However, my doubts were well and truly vanquished at our first test drive in Copenhagen, where a range of different models was on offer to drive.

The Citan is a curious mix of Gallic chic and brutal Teutonic practicality and although the two might not at first appear to sit well together, the whole lot actually looks rather funky.

You certainly won’t mistake the Citan for

a Renault with its massive three-pointed star on the front. At the end of the day Bernd Stegmann is right – most fleet buyers aren’t bothered who originally made their vehicles. What they want is value for money, reliability, low running costs and good residual values.

And there is no reason to suppose that the Citan won’t offer all these things.

Climbing aboard, this van could just as well be a brand new model, with figure hugging and very supportive seats and a massive chunky dash that look as though it came from a 44-tonne Actros.

One thing that hasn’t changed is that curious handbrake from the Kangoo that features something akin to a spade handle on the end. It’s annoying as it is right next

to the 12 volt power take-off so if you have a sat-nav unit plugged in, the wire gets all tangled up with the brake lever when you try to use it.

On the plus side there’s a handy overhead parcel shelf and two coffee cup holders in the centre console.

In the back Mercedes-Benz offers a choice of barn doors or tailgate at no extra cost and a plastic load liner is slated to be standard spec, along with two side sliding doors.

There are also 10 load lashing eyes (a record in the sector we reckon), including four on the sides of the van where they are most useful, in addition to six slotted in the floor.

It all feels pretty well screwed together,

although we did feel that the side sliding doors lacked that quality “thwunk” when slammed shut that emanates from the rival Volkswagen Caddy.

We tried long wheelbase versions in 75bhp and 110bhp guises and we reckon that the smaller engine is the fleet choice, especially if this van is to be used predominantly for urban use. Why would you need any more power?

It is on the road that the Germanic tweaks and twiddles come in to their own. This van handles and feels like no Kangoo we’ve ever tested.

It’s whisper quiet and has ideally balanced power steering, slick gearchanges and pin-sharp handling that makes it a sheer pleasure to drive.

fleetnews.co.uk/fleetvan October 2012 29

First drive Mercedes-Benz Citan

The three wheelbase models will have payloads of 490-810kg

models and anyway we have heavily modified the Citan from the original and we are convinced that buyers will be impressed. They come to us because they want a three-pointed star and that means quality and reliability – they will get both with Citan.”

What’s on offer The name Citan is derived from the two words “city” and “titan” and the van is built very much for the urban world. One thing that Mercedes-Benz dealers in the UK pride themselves on is the way in which they not only sell vans to fleet customers but also offer advice too, so no doubt anyone wanting vehicles for longer hauls will be steered towards the bigger Vito and Sprinter.

But the Citan will be offered in a wide range of variants. There are three wheelbases (Renault has stopped importing the short wheelbase Kangoo into the UK), four engines, including a petrol version, and a range of other options that should satisfy most fleet needs.

Bosses admitted that as they are entering a completely new sector, they are unsure as to which will be the biggest sellers so they have stressed that the range may be honed over the coming years. Our bet is that the petrol model will be deleted as few fleets opt for this nowadays, unless adapting vehicles to run on LPG. There is no news as yet as to whether or not Mercedes will offer an electric version to mirror the Kangoo ZE. The Citan will come off the Renault production line at Mauberge in northern France but at some stage, the

Figure hugging seats are very supportive

30 October 2012 fleetnews.co.uk/fleetvan

“A lot of fleets want solus deals which include large and small vehicles” Steve Bridge, Mercedes-Benz Merc versions will peel off in a different direction for the Germans to tweak and twiddle with. MercedesBenz staff will be on hand at the factory to make sure that all Citans come up to their exacting standards.

Gone is the front end of the Kangoo, to be replaced by a more Merc family look and gone too are the dashboard and seats, replaced by German items.

The engines are basically Renault ones – nothing wrong with that as they are all rock solid performers – but the engineers at Mercedes-Benz have made minor tweaks to make them more responsive and to offer better fuel consumption.

There have also been major changes to the suspension set-up to make the van better in the ride and handling department.

Diesel engines are all 1.5-litre units offering 75bhp, 90bhp and 110bhp, while the petrol engine is a 1.2-litre unit with 114bhp. The two lower-powered ones only will be available at launch time. The higher-powered diesel unit and petrol engine will be available later in the year.

Mercedes-Benz claims its adjustments to the engine mean class-leading fuel economy figures of up to 65.7mpg on the combined cycle.

The three wheelbase models will offer from 2.4 cubic metres to 3.8 cu m and payloads of 490-810kg.

There will also be a five-seat crew-cab version.

The Citan will also have 25,000 mile servicing intervals and a three-year unlimited mileage warranty, once again beating the opposition. Thanks to the fact that Mercedes-Benz also sells big trucks, Citan buyers will be able to take advantage of 24/7 servicing – something that the others, apart from Iveco, can’t match.

Final spec and prices have yet to be announced but standard specification is expected to be high. The Citan will come with Electronic Stability Control as standard, along with ABS and air-conditioning.

Verdict

We’re looking forward to a real power struggle in this sector next year as the Citan faces opposition from a brand new Ford Transit Connect, not to mention the new Vauxhall Vivaro/Renault Trafic plus the established Volkswagen Caddy, Citroën Berlingo, Peugeot Partner, Fiat Doblo Cargo, Vauxhall Combo et al. Let battle commence.

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F i r s t d r i v e F i at S c u d o 1. 6 C o mf o r t 9 0

Scudo gets the basics right Fiat’s mid-sized van is still cutting the mustard in 2012

The Scudo has a payload of 1,200kg

Need to know n Payload of 1,200kg n Twin side-doors standard n Optional electronic stability control

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By Trevor Gehlcken ost van ranges nowadays offer models with alloy wheels, super sat-nav systems, leather seats and airconditioning. And quite often the manufacturers try and give us journalists these vehicles to test, maybe hoping that the readers will be mistaken in believing that all that fancy stuff comes as standard further down.

But for fleet buyers, most want a basic vehicle which will do the job at the lowest price – and it is one of those bread and butter vans that we chose for this test.

The Fiat Scudo was first launched in 1997 and has since then been treated to various relaunches, nips and

tucks so it still cuts the fleet mustard in 2012.

A 163bhp model, which we tested some months back, is now available, but I few of those versions will make their way into UK fleets.

The more diminutively powered 90bhp tested here is the fleet choice and to be honest after driving it for a week I was left thinking that 90bhp is plenty for any business user. Admittedly, the Fleet Van offices are situated in the flatlands of the east Midlands and we didn’t try and climb any major hills during our test week, but even so this van will suit most fleet purposes down to a tee.

There are two wheelbases and roof heights on offer with the Scudo and our test model was the smallest of the range, but still offering a reasonable five cubic metres of cargo space and a payload of 1,200kg.

If the power on offer here isn’t enough, 130bhp and 163bhp versions are also available, although the price rises from the test model’s £16,345 ex-VAT to a maximum of £22,145.

Standard spec includes ABS, driver airbag, panelled bulkhead, two side sliding doors, remote controlled central locking and electric windows.

Sadly, electronic stability programme remains on the options list at £370 along with air conditioning at £590 and parking sensors at £150.

Verdict The Scudo has two side sliding doors

32 October 2012 fleetnews.co.uk/fleetvan

A cost-effective and very efficient fleet performer all round. However, the Scudo is about to have a rude awakening when the new Ford Transit Custom arrives to challenge it in January next year. That new contender is a stunner.

Behind the wheel Wedged in between the smaller Doblo Cargo and the large Ducato, the Scudo tends to get forgotten about.

That’s a shame as it’s a perky performer and delightful to drive.

In the cab, the seats are big and reasonably comfortable while the dash is stylish yet practical. There’s a pull-out coffee cup holder near the driver’s hand although, rather meanly, it is blanked off for the passenger.

An overhead parcel shelf will come in handy as there isn’t a great deal of storage space.

In the back, it’s top marks for the double standard sliding doors, although you don’t get a plastic load liner to keep your van in pristine condition in the business end.

However, there are eight load lashing eyes, including four where they are needed in the sides rather than in the floor and our van featured a handy 12-volt take-off in the rear – this comes at £70 extra with a set of side liners.

On the road, as expected, this van won’t exactly set the Tarmac alight but will make sure and steady progress as is required from an LCV. And once you are up to motorway speeds it fairly zips along.

Handling is nice and sharp and the Scudo features one of the slickest gearchanges in the business, all of which add up to a very pleasant driving experience.

“Once up to motorway speeds it fairly zips along” Specification Gross vehicle weight (kg): 2,661 Power (bhp/rpm): 90/4,000 Torque (lb-ft/rpm): 132/1,500 Load volume (cu m): 5.0 Payload (kg): 1,200 Comb fuel economy (mpg): 40.9 CO2 emissions (g/km): 182 Price as tested (ex-VAT): £16,345

Remarketing Condition The higher spec a vehicle is, the more valuable it is in the buyer’s eyes, so ensuring it arrives for sale with as little damage as possible will help it sell for a better price.

On the matter of spec, optional extras such as air conditioning or electric mirrors should be in working order, as these will cost the buyer more money to repair.

A good clean interior will help generate a better price. A buyer will often take the interior condition into consideration when secondguessing how hard a life the vehicle has had. It can impact on the value if it looks dirty and untidy.

At Manheim Auctions, James Davies, director of commercial vehicles, puts in a lot of time and effort analysing the market and assessing how much damage should be repaired. And it’s sometimes surprising what sells and what doesn’t.

Take faulty engines and gearboxes, for example.

Davies said: “Where it’s uneconomical to repair an older van – for example, if an engine or gearbox fails – the vehicle may be de-fleeted direct to auction by the ‘first life’

owner. Vendors are often surprised at the level of interest ‘non-runners’ can attract, if presented in the right way. For the entrepreneurial trader who has a network of used parts suppliers and access to lowerpriced components and hourly labour rates, this non-runner represents a potential profit opportunity.

“We actively encourage vendors to declare any mechanical faults, so that buyers can bid confidently knowing the likely repair costs.

Hiding behind ‘sold as seen’ is too risky for any vendor’s reputation.”

Manheim’s buyers are increasingly reporting that repair workshops are getting busier, while retail van sales remain steady, suggesting condition is generally worsening.

July auctions at Manheim saw average mileage on large panel vans reach 108,238 miles – the highest figure since its LCV Market Analysis began in 2006.

Mileage and usage of a van dictates length of service for subsequent owners – a high-mileage van in ‘first life’ is perfect for a ‘second life’ user who won’t be racking up thousands of miles each month.

Davies said: “The reality is that second life, as well as subsequent,

A ply-lining option from new will help an LCV’s value at auction owners need to look at the ‘sell or repair’ decision over the longer term and buying a newer van could offer greater benefits.

“In addition to fuel efficiency and environmental credentials, a final consideration for operating a newer van is legislation. In January, we saw owner-operators face a deadline in London to conform with the Low Emission Zone changes.

“This continual focus on emis-

sions only ever targets the dirtier, older end of the market – vans that are generally more than 10 years old.

“This is not a consideration for the ‘first life’ corporate owners, but is now a definite consideration for ‘second life’ owner operators as the likelihood of other LEZs cropping up across the UK is inevitable.

“Those that exist will become more stringent, as has been the case with trucks.”

Remarketing Condition The higher spec a vehicle is, the more valuable it is in the buyer’s eyes, so ensuring it arrives for sale with as little damage as possible will help it sell for a better price.

On the matter of spec, optional extras such as air conditioning or electric mirrors should be in working order, as these will cost the buyer more money to repair.

A good clean interior will help generate a better price. A buyer will often take the interior condition into consideration when secondguessing how hard a life the vehicle has had. It can impact on the value if it looks dirty and untidy.

At Manheim Auctions, James Davies, director of commercial vehicles, puts in a lot of time and effort analysing the market and assessing how much damage should be repaired. And it’s sometimes surprising what sells and what doesn’t.

Take faulty engines and gearboxes, for example.

Davies said: “Where it’s uneconomical to repair an older van – for example, if an engine or gearbox fails – the vehicle may be de-fleeted direct to auction by the ‘first life’

owner. Vendors are often surprised at the level of interest ‘non-runners’ can attract, if presented in the right way. For the entrepreneurial trader who has a network of used parts suppliers and access to lowerpriced components and hourly labour rates, this non-runner represents a potential profit opportunity.

“We actively encourage vendors to declare any mechanical faults, so that buyers can bid confidently knowing the likely repair costs.

Hiding behind ‘sold as seen’ is too risky for any vendor’s reputation.”

Manheim’s buyers are increasingly reporting that repair workshops are getting busier, while retail van sales remain steady, suggesting condition is generally worsening.

July auctions at Manheim saw average mileage on large panel vans reach 108,238 miles – the highest figure since its LCV Market Analysis began in 2006.

Mileage and usage of a van dictates length of service for subsequent owners – a high-mileage van in ‘first life’ is perfect for a ‘second life’ user who won’t be racking up thousands of miles each month.

Davies said: “The reality is that second life, as well as subsequent,

A ply-lining option from new will help an LCV’s value at auction owners need to look at the ‘sell or repair’ decision over the longer term and buying a newer van could offer greater benefits.

“In addition to fuel efficiency and environmental credentials, a final consideration for operating a newer van is legislation. In January, we saw owner-operators face a deadline in London to conform with the Low Emission Zone changes.

“This continual focus on emis-

sions only ever targets the dirtier, older end of the market – vans that are generally more than 10 years old.

“This is not a consideration for the ‘first life’ corporate owners, but is now a definite consideration for ‘second life’ owner operators as the likelihood of other LEZs cropping up across the UK is inevitable.

“Those that exist will become more stringent, as has been the case with trucks.”

fleetnews.co.uk/fleetvan September 2012 17

fleetnews.co.uk/fleetvan September 2012 17

Van Launch Maxi-Low

A lightweight solution New business comes up with a large van which won’t require a tachograph

T

By Trevor Gehlcken he seemingly endless rise in the popularity of online shopping has led to a corresponding increase in the demand for large vans to deliver goods ordered via the internet.

But,the problem with most high-cube commercial vehicles is that, if they are to nudge in under the magic 3.5-tonne barrier (thus avoiding the tachograph, the O-licence and CPC), their payloads are often severely restricted due to the weight of the body.

A group of businessmen, two from Leicester and one from Worthing in West Sussex, has formed a new company to try and solve the huge demand for larger delivery vans. They are confident they can now offer the delivery industry a solution to the old payload problem using hi-tech lightweight components.

The three firms involved are Doyle’s Auto Refinishing, Crouch Logistics – which delivers six-anda-half million parcels per year – and Creative Asset Finance. They have formed Maxi-Low UK and launched the Maxi-Low range of lightweight vehicle bodies.

40% greater payload over standard Luton Three basic models are available – the Maxi-Low Luton, Luton Multi-Drop with a walk-through cab and a multi-drop panel van conversion.

The Luton versions have a load capacity of 18.5 cubic metres and a class-leading payload of 1,520kg (1,420kg for Multi-Drop), with a lower rear step at 400mm. Six Euro pallets can be carried.

The new model offers in excess of 40% increased payload over a conventional Luton. The panel van conversion offers a payload of 887kg and includes a partition with sliding door, racking and shelving and a foldable passenger seat.

The new models are based on the Vauxhall Movano platform-cab and feature a 2.3-litre common rail turbodiesel powerplant with 125bhp which satisfies Euro5 CO2 legislation in respect of greener emissions. They are built at Doyle’s plant in Leicester.

The new Maxi-Low Luton has a cargo area of 18.5 cubic metres

Doyle’s owner Ady Doyle said: “We have been developing this van for the best part of three years. The secret is its lightweight plastic honeycomb body panels which we import. The honeycomb plastic is 100% recyclable.

“While we will be selling the van, all the servicing, maintenance and repair will be done through the Vauxhall dealership chain and all the vehicles will have a three-year warranty. We are also planning to have some demonstrators scattered throughout the Vauxhall dealer network.”

Doyle has been amazed at the interest shown so far. He said: “Some 250 have been ordered already and I would have been happy with that figure each year. But we are now looking at 500 units per year and possibly ramping this up to 1,000 if we see a demand.”

The range doesn’t end with these first models.

TV personality Mike Brewer reveals the new Maxi-Low Luton

34 October 2012 fleetnews.co.uk/fleetvan

“We are looking at 500 units a year, possibly ramping this up to 1,000” Ady Doyle, Maxi-Low UK Early next year, Maxi-Low will launch an even bigger model holding 20.5 cubic metres of cargo, while the firm is also building a giant 26 cubic metre body designed specially for use by cavity wall insulators who carry large but light loads.

Increased daily profit The launch of the new vehicles took place at the Heritage Motor Centre at Gaydon in Warwickshire and was hosted by TV motoring personality Mike Brewer, who dubbed the Maxi-Low: “What the industry has been waiting for.”

Brewer said: “This vehicle is a fundamental change of a well-proven design. It will allow users to make more profit per day because it will mean bigger loads can be carried and fewer vehicles will be needed on the fleet.

“Using a Vauxhall for the base vehicle is a great idea because there is a Vauxhall dealer on virtually every corner in the UK and the firm has a dedicated team of commercial vehicle specialists on hand to help fleet buyers with all aspects of running their vehicles. We reckon that using a Maxi-Low as opposed to a conventional Luton van will save approximately £5,200 per van per year.”

Prices of the vans may vary depending on how many vehicles are ordered.

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