Fleet Van September 2012

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

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

MERCEDES EYES SECOND PLACE TRANSIT TRANSIT CUSTOM

New lightweight option impresses on first test

Steve Bridge on how the manufacturer plans to win fleet business

WHY VEHICLE CHECKS WILL SAVE LIVES

The van inspections your drivers need to make

ANGLIAN WATER’S EFFICIENCY DRIVE

Nigel Allen explains how in-house management makes his fleet ultra-efficient

Contact us Fleet News, Media House, Lynch Wood, Peterborough PE2 6EA. Email fleetnews@bauermedia.co.uk

Editorial Editor Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Deputy editor Simon Harris 01733 468308 simon.harris@bauermedia.co.uk Associate editor Trevor Gehlcken Contributors Mark Cartwright, John Charles, Louise Cole, 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 Project managers Leanne Patterson 01733 468332 Angela Price 01733 468338 Kerry Unwin 01733 468327 Telesales/recruitment b2brecruitment@bauermedia.co.uk 01733 468275/01733 468328 Events Event director Chris Lester Event manager Sandra Evitt 01733 468123 Event organiser Kate Howard 01733 468146 Publishing Managing director Tim Lucas 01733 468340 General manager Ian Richardson 01733 468555 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Printing: Headley Brothers Ltd, Kent © 2012 Bauer Consumer Media Ltd ISSN 0953-8526.

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CONTENTS 4 I Best practice: Vehicle funding The prevalent method of van funding remains outright purchase, but is this likely to change?

6 I Customer service: Iveco

LCVs get the same level of back-up as lorries.

9 I Compliance: Towing

Towing laws are soon to change again – make sure you know where you stand to stay within the law.

10 I Risk: Vehicle checklists

Implementing a policy of regular vehicle inspections can save cash – and lives.

13 I Remarketing: Condition

When to repair and what you can get away with when sending your vans to auction.

20 I Environment: NOx

New rules on nitrogen oxides could raise the costs of running a van fleet.

Fleet case study Anglian Water

Using his own wholelife costs for vehicle choice as well as having in-house management flexibility means Nigel Allen can say:

‘our fleet is the most cost-efficient it’s ever been’

22 I Cover feature Fleet case study: Anglian Water

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Nigel Allen explains why his fleet is the most cost-efficient it has ever been.

“We undertake our own warranty work and have parts delivered next day

by John charles he fleet operation is frequently the second biggest cost in an through Vauxhall Trade Club, which not only provides the most affordable organisation after employees, so when the pressure is on to save solution, but reduces downtime and all parts are supplied under warranty.”

Factors that are taken into account by Allen when calculating wholelife money it is essential to know that the most cost-effective vehicles costs are: budget price; estimated residual value utilising a combination of are being operated.

That is why fleet professionals such as Nigel Allen, Anglian data from vehicle information provider CAP and his own market intelligence; Water’s fleet manager, uses industry knowledge and expertise to compile his maintenance using own workshop costs and labour rates versus national averages; cost of common parts based on fleet history and the company’s own vehicle wholelife costs to ensure the operation’s optimum efficiency.

Choosing the most cost-effective vehicles for the van fleet is the first crucial accident management data; and manufacturers’ average fuel economy. decision in the fleet management process.

The cheapest vehicles to operate are those with the lowest wholelife costs cost are reviewed annually – not necessarily those with the lowest list price – over a fleet replacement “That gives us our wholelife costs on a per-vehicle basis utilising a combination of published data and our own real-world knowledge and experience,” cycle, which in Anglian Water’s case is 120,000 miles/five years.

However, in-house management flexibility and used van market accept- says Allen, fleet manager since 1997 and previously a workshop manager ance mean that vehicle replacement is driven more by mileage than age, with during his 34-year Anglian Water career. “We review costs annually and all figures are based on market testing. We then some of the organisation’s 1,200 light commercial actively monitor costs day by day and that means vehicles replaced at three years and a handful run we can react to any issue or vehicle problem before into a sixth year. it has any significant impact.”

Anglian Water, the largest water and wastewater For example, if a major vehicle mechanical service in England and Wales by geographic area, Company: Anglian Water problem materialises, the fleet team will investioperates a 95% Vauxhall van fleet embracing Corsa, Fleet manager: Nigel Allen gate and discuss the issue with the relevant manuCombo, Vivaro and Movano models.

Time in role: 15 years facturer in a bid to implement a solution to prevent The remainder of the fleet is composed of a wide LCV fleet size: 1,200 other vans on the fleet being similarly affected. cross-section of LCVs from other manufacturers LCV brands on fleets: Vauxhall, Renault, Allen believes that smaller fleets can also benefit which, in the main, Anglian Water has had on trial Mercedes-Benz from close relationships with manufacturers, and then opted to buy. They range from Renault Van replacement cycle: five years/ which helps keep costs under control.

Kangoos to a five-tonne Mercedes-Benz Sprinter.

120,000 miles “Fleets need to talk to manufacturers to enable “Our current fleet is the best, most cost-effective them to build up an understanding of what is solution we’ve ever had,” says Allen, who believes it required and they can then deliver. Too often fleets is vital to be aware of what is happening in the marketplace, which is why the company continues to work with other manu- aren’t sure what they want and they don’t understand what help and support is available from manufacturers. If fleets don’t know what they want then it facturers despite its long-term Vauxhall allegiance. is difficult for manufacturers to help.”

Not surprisingly, Allen believes some employers have been too quick in reduced wholelife costs “We borrow a vehicle for perhaps six months and put it through its paces in dispensing with fleet managers and effectively outsourcing the role to a the day-to-day work environment. We frequently end up buying the van as leasing and fleet management company.

“The major fleets are getting smarter in their operations, but smaller fleets long as it is fit for purpose and that then enables us to gather five years of often use third-party suppliers who have different objectives and that data on the vehicle for comparison purposes.”

Excluding fuel – the biggest single cost on any fleet outside of vehicle frequently costs them money,” he says.

Allen believes smaller fleets could group together and employ a fleet acquisition/depreciation – Allen has seen wholelife costs reduce in recent manager between them. He says: “A knowledgeable fleet manager could years as vehicle build quality and reliability improves.

Additionally, following the introduction by Vauxhall of its 100,000-mile life- use their experience to cost-effectively and efficiently manage two or three time car warranty in 2010, Allen negotiated a five-year warranty on Vauxhall fleets and I believe those companies would benefit significantly.”

As a member of the Freight Transport Association’s Utilities vans which replaced a previously agreed four-year warranty.

Anglian Water has seven workshops across its region, which stretches Group, Allen discusses key issues with his opposite numbers from the Humber north of Grimsby to the Thames estuary in the south, and from other organisations.

“We discuss data with each other and that helps to ensure from Buckinghamshire in the west to Lowestoft in the east.

Fact File

“if fleets don’t know what they want then it is difficult for manufacturers to help”

26 I Industry spotlight: Mercedes-Benz

Nigel Allen, Anglian Water

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The manufacturer is bucking the trend in a falling market with a 7.5% increase in sales.

28 I Van tests

Ford Transit Custom, Citroën Dispatch, Fiat Fiorino Adventure.

NEXT ISSUE – October First drive

Mercedes-Benz Citan – a new city van rival

Fleet case study

Why vehicle rental works for Kelly Group

Compliance

How to challenge parking fines – and win

F i r s t d r i v e F o r d Tr a n s i t C u s t o m

Custom built for British market Ford comes up with a completely new lightweight van What’s new? n Exhaust gas recirculation n Low rolling resistance tyres n Aerodynamic kit

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By Trevor Gehlcken he Transit may have been the biggest selling van in the UK by a mile since its launch in 1965, but of late the bosses at Ford have been increasingly concerned that there is a serious problem with the brand.

While all the other manufacturers have two separate panel van offerings in the 2.5-4.5 tonne sector (Vauxhall Vivaro/Movano, Mercedes-Benz Vito/Sprinter etc), the Transit straddles both weights.

And as the demands and expectations of fleet buyers become ever more complex, the Transit has begun struggling against an opposition that is evermore customer-focused.

This problem is about to be solved with the launch of the Transit’s sixth generation. In an extended roll-out that will last until late next year, Ford is putting a completely new lightweight Transit on sale this year and calling it the Transit Custom, while new heavier models will be revealed late this year, to be labelled pure Transit.

Explaining the logic behind this major new direction at the Transit Custom launch in Munich, Transit product manager David Petts told Fleet Van: “Our new Transit, which will go on sale mid-2013, will be mainly aimed at fleet buyers while the Transit Custom launched here is more for owner-drivers, although of course some fleets will still buy it.

“We are aiming to put more distinction between these two models. We need two different products to focus more keenly on each of these sectors and each model will have completely different brochures and a different dealer focus.

“Trying to sell everything under one umbrella just doesn’t work any more. The two sets of customers have very different needs.”

The Transit Custom revealed here looks entirely different from its predecessor. Gone are the rather chunky pedestrian looks of the Mk5, to be replaced by stylish curves and a truly car-like ride and handling package. In fact, everything but the engine, transmission and suspension has been replaced with new parts – and even those items carried over have been heavily modified.

Also at the launch was Ford of Britain managing director Mark Ovenden, who has taken over as the head of light commercial vehicles at the manufacturer.

He said: “We are proud that the new Transit has been designed and engineered in Britain, using the global might of Ford.

“This launch is the first instalment of two years of

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new product for us and the entire LCV range will be replaced by 2014.”

Ovenden said at present Transit sales volume beats the next four competitors combined and he believes the new model will turn the van into a global superbrand.

He said: “This new Transit has superb noise, vibration and harshness qualities and a car-like interior – it also retains the strength, durability and low cost of ownership that is expected of the Transit name. We’ve taken the best bits of the Transit and added to them.”

The residual value experts at CAP obviously agree.

They have already assessed the new vehicle and have awarded it a predicted value at three years/60,000 miles which is 10.5% higher than the old model.

So what’s new apart from the stylish exterior?

The Transit Custom weighs in at between 2.7 and 3.3 tonnes gross vehicle weight and comes in both long and short-wheelbase format. There will also be Tourneo minibus version (eight or nine seats) and later a highroof version.

It’s powered by Ford’s tried and trusted 2.2-litre common rail diesel powerplant and will be available in three outputs – 100bhp, 125bhp and 155bhp. Three trim levels will be on offer – base, Trend and Limited. Prices will range from £17,45 to £25,545 ex-VAT. At the business end, the new model features a classleading 6.0 cubic metres of loadspace (the Volkswagen Transporter offers 5.8 cu m) while the long-wheelbase version hikes this up to 6.8 cu m. The SWB version is the only van in its class able to carry three Euro pallets with a one-metre height and 8x4 sheets both horizontally and vertically.

There’s also class-leading width between wheelarches at 1,390mm and

The ingenious roof rack system folds away when not in use

Custom is powered by Ford’s trusted 2-.2-litre common rail diesel engine

Specification Gross vehicle weight (kg): 2,700-3,325 Power (bhp/rpm): 100-155/3,500 Torque (lb-ft/rpm): 228/1,300-284/1,600 Load volume (cu m): 6.0-6.8 Payload (kg): 871-1,200 Comb fuel economy (mpg): 40-9-42.2 CO2 emissions (g/km): 178-183 Price as tested (ex-VAT): £17,45-£25,545

Behind the wheel While the Transit’s qualities may be many and varied, it has generally been acknowledged among the experts that in its lighter format, some of its rivals are a fair bit ahead, especially in the ride and handling department.

The current Transit is pretty noisy in the cab, for example, and doesn’t hold the road as well as the rival Volkswagen Transporter which is generally held to be the leader in the sector.

But the guys at Ford are well-known for their rabbit-and-hat routine both in the car and van sectors and, having driven this vehicle for the first time, I can vouch that this is a van which will finally give the Volkswagen a good run for its money.

All the 30 or so journalists at the launch event came back full of glowing praise for this Transit Custom’s car-like driveability and its good looks.

All the test vans were in Limited spec, which means that they were specced with extras that most fleet drivers won’t have.

But the basics won’t change and these items are hard to find fault with.

Gone is the old Transit driver’s seat which I always complained about as having no lumbar support and with a hard ridge that stuck into my shoulder blades. In its place is a wonderfully supportive seat that hugs

the figure from the back of the knees to the neck.

Gone is the chunky old dash, to be replaced with something that is stylish and functional and looks suspiciously like the one that graces the Focus. There’s a large cup holder on each side just in the right places (not all vans have this) and a bottle bin for driver and passenger.

On our test vans, the back of the middle seat folded down to reveal a handy desk with two more cup holders, while there’s a pop-up cover in front of the driver which reveals another storage space complete with 12-volt take-off and USB port. This means you don’t have wires trailing all over the place if you want to plug in a sat-nav unit or mobile phone.

There’s even a sunglasses holder in the roof near the driver and two coat hooks at the back of the cab – nice touch.

On the outside, while I admired the Transit’s svelte lines, our test models had virtually no black plastic padding round the edges to prevent them from annoying knocks and scrapes. I took this up with the Ford designers and apparently the base model – which will be the big fleet seller – will thankfully contain such workaday bumpers. That should save a few pounds at the bodyshop.

Transit Custom has a stylish and functional dashboard The fold-down roof rack system works a treat, although of course this will be a paid-for item.

In the back, it is amazing how the designers have managed to squeeze in six cubic metres of cargo space.

Full marks to Ford for making the plastic load liner a standard fitment and I was also interested to note that the load-lashing eyes have migrated from the floor to the sides of the van, where they are much more useful. I’ve often queried the positioning of these items in the past and now most manufacturers are seeing sense in having them higher up.

But it was on firing up the 2.2-litre powerplant that the Transit Custom

revealed itself in its true glory. I can’t believe how much smoother, quieter and more refined it is than the old model. We tested both short and long-wheelbase models, both with a half-load on board and both featuring the 125bhp engine, and even on the hilly sections of our test route, the van never felt short of power.

My co-pilot and I never had to raise our voices to be heard (unlike in the old Transit) and with power steering weighted just how I like it (a little on the firm side so you can feel what’s going on between the tyres and the road) and with the slickest of slick gearchanges, we could for all the world have been driving a car that had been pumped up with steroids.

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B e n c h m a r k i n g b y t h e F TA Ve h i c l e f u n d i n g

Traditional funding still favoured by van fleets But more than half are ‘sweating the assets’ by keeping their vehicles longer

By Mark Cartwright, head of LCVs, FTA imes are tough for most van operators and while most attention is on the immediate costs of fuel, maintenance etc, there are still significant gains to be made by choosing the right methods of funding new vans for your company.

A recent survey by the FTA asked its van operators what they looked for when assessing the various options and where they saw the trends developing. In all, 57 operators running more than 12,000 vans responded, ranging from large to small and across all sectors of industry.

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What are they doing now?

The most prevalent method of funding purchases remains outright purchase, with almost twothirds of vans being purchased this way. Interestingly, there was no discernible difference in approach either across industry sectors – local authorities seem as likely to follow this route as, for example, civil engineering companies – or across the fleet sizes.

No prizes for guessing the next most popular way of financing new acquisitions, with straightforward leasing accounting for a further third of new arrivals.

Long–term hire (defined as over three months) accounts for around 6% of operators’ fleets, with short-term hire not surprisingly bringing up the rear, making up about 1% of an operator’s fleet on average.

Is this likely to change?

We asked operators to check out their crystal ball and predict for their own operations what the future held.

Interestingly in these difficult times, there does seem some movement away from external funding, with almost a third of respondents expecting to use cash reserves more often or internal finance to fund new purchases and only 13% anticipating using these methods less.

Nevertheless, external funding will continue to play a major role for many operators but even then the responses demonstrate a marginal drift from finance leasing towards contract hire, with 23% expecting to make more use of contract hire, compared to just 15% anticipating greater use of finance leasing.

The other irrefutable trend confirmed by the survey was that, in general, operators were keeping their vans longer and running them further. Some 57% of operators are keeping their vans longer – the average age of disposal remains at around 3.25 years – but more and more operators are now running vans past

Almost two-thirds of vans are outright-purchased

their fourth and even fifth birthdays.

Why is this? There is, of course, an attraction in ‘sweating the asset’ but, as any time-served transport manager will tell you, there is a point of diminishing return where the repair costs, time off-road and reliability issues make this unsustainable. However, several respondents said that, as with cars and trucks, vans are increasingly robust and can realistically be operated effectively longer than traditionally accepted.

For operators that use lease and long-term hire, what are the attractions and what do they expect from their providers?

We asked operators to score the attraction of the various benefits put forward by the lease providers on a scale of 1 to 5, with 1 being ‘of little interest’ and 5 being ‘of vital importance’.

The two greatest attractions identified were a reduction in maintenance costs (3.76 out of 5) and the lure of fixed monthly repayments (3.73 out of 5).

We similarly enquired what operators felt was important in their relationship with lease and finance providers and, overwhelmingly, it was clear that many operators valued operational support from their providers across the procurement process and into the ongoing operational role of the vehicles.

The top three demands of users were that their provider demonstrated expertise and knowledge in the van market to advise on the best vehicle and fitment choices (4.26 out of 5), their provider was able to provide a comprehensive aftersales support throughout the van’s operational life (4.24 out of 5) and, supporting Van Excellence’s call for a collaborative approach,

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that the provider was able to show expertise and knowledge in the operational environment and was able to pass on legislative and best practice advice (4.17 out of 5). It’s encouraging that several providers were among the early takers of the FTA’s Certificate of Excellence in Van Operation training which aims to provide both operators and providers with such awareness.

On the other side of the coin, what turns operators away from lease and contract hire?

Three stand-out reasons were offered. n A fear of high end-of-contract damage charges was a common concern, with several respondents commenting on the unrealistic standards being employed on ‘working vehicles’, along with an inconsistent approach in assessment. n A feeling that the base interest fees applied were not the most competitive and organisations had an opportunity to fund internally or via other sources at more competitive rates. This is perhaps a contributory factor in the move towards in-house options identified earlier. n A reluctance to enter into a long-term commitment, coupled with the difficulties and cost of extracting themselves from such deals.

So what can we draw from this operator’s eye view of funding options?

Clearly, operators are reacting to the economic situation. Many are actively investigating new ways of funding externally and internally, they’re expecting a collaborative and supportive approach from their providers and increasing the lifetime of their vans before replacing. n For more information on the FTA’s Van Excellence programme email info@vanexcellence.co.uk

VAN FLEET FUNDING TRENDS USE OF CONTRACT HIRE Using less: 30%

Using more: 23%

USE OF FINANCE LEASING Using more: 15% Using less: 38% No change: 46%

No change: 47%

USE OF DAILY RENTAL

USE OF HIRE PURCHASE

Using more: 20% Using less: 44%

Using less: 50%

No change: 50%

No change: 36%

USE OF BANK OR OTHER LOAN FINANCE0 Using more: 11%

USE OF CASH / INTERNAL FUNDING Using less: 13%

Using less: 42% No change: 47%

IN GENERAL, WE ARE KEEPING OUR VANS LONGER No: 11% No change: 30%

Using more: 32%

No change: 55%

IN GENERAL, OUR VANS ARE CHANGED AT A HIGHER MILEAGE No: 12% Yes: 44%

Yes: 57%

REASONS FOR CHOOSING CONTRACT HIRE/LEASE n Fixed monthly costs n To free up capital for use elsewhere n Fleet management support n Access to manufacturer discounts n Avoid risk on residual values n Reduced maintenance costs

No change: 42%

Survey responded to by 57 FTA van operators (12,164 vans) Make-up of ownership: n Owned – 61% n Leased – 30% n Long-term (3m+) hire – 6% n Short-term hire – 1%

EDITOR’S COLUMN Stephen Briers, editor, Fleet Van

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h, the Transit. Hasn’t everyone got a memory of this most venerable of panel vans? Whether it’s as a fleet vehicle, a house-mover or a short-term hire to get a new settee home, most people’s lives have in some way been touched by this ubiquitous vehicle.

While this level of brand awareness can’t be bought – not even in the pages of Fleet Van! – it does bring its own challenges. All rivals are gunning for your business while familiarity can breed, well, not quite contempt, but certainly a lack of desire.

“No-one has headed the pack for quite as long as Ford and the Transit” Market leaders are always there to be shot at, but no-one has headed the pack for quite as long as Ford and the Transit.

We gave you a sneak preview of the important next-generation Transit in our re-launch issue back in April but we’ve now driven it, or at least the smaller version of the van. Does it live up to expectations? Find out on p28-30.

Elsewhere in this issue, you can find out more about MercedesBenz’s aspirations to become the UK’s second largest selling van maker on the back of the new Citan (which will be reviewed in our October issue), as well as the latest analysis and best practice, including an insightful interview with Anglian Water fleet boss Nigel Allen on p22-24.

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Customer service Iveco

Heavyweight care for vans Iveco offers LCV fleets the same level of back-up which its lorry buyers receive

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By Trevor Gehlcken he build quality and reliability of light commercial vehicles has come on in such leaps and bounds in the past 20 years that it is becoming harder to create clear differentiation.

But what is not equal is the service that fleet buyers receive when something goes wrong or when something needs fixing.

Manufacturers which are allied to heavy truck makers can offer the kind of 24/7 service that just isn’t available anywhere else – and it’s a benefit that isn’t always appreciated by fleet operators.

Iveco UK’s new managing director Luca Sra is only too aware of this fact and he has launched a new mission to enlighten Britain’s van operators as to how they can stay on the road longer by choosing a van/truck maker rather than a van/ car builder.

Sra told Fleet Van: “Iveco is a very different firm from the one it was 20 years ago and we need to tell fleet buyers this.

“Our task is to exceed the levels of service that fleet operators expect and we are focusing on customer service, putting it at the very heart of everything we do.

“Our message is getting across as so far this year in a 3.5-tonne market down 6.9% our sales of the Daily are up 15%.”

So exactly what do van operators get out of allying themselves with a truck maker?

For starters, extended opening hours, into evenings and over weekends, is more common, which means vans can be serviced or repaired while they are not in use.

Iveco reckons that it offers something a little bit special when it comes to handling breakdowns.

Alan Coppin, Iveco UK’s customer care and technical services director, said: “Breakdown calls go to our centre in Turin and are answered by people who speak perfect English. Just in case of a problem the calls are monitored by our team in Cheshire, who can take over if necessary.

Managing director Luca Sra is putting servicing at the heart of everything Iveco does

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“Once a breakdown has been reported, an Iveco van carrying spares will be dispatched and on average will arrive in 52 minutes. Of all the breakdowns we attend, 81% are fixed by the roadside and are back in operation within two hours. Of those which have to be taken into the garage, 87% are back on the road within 24 hours.”

It is the fact that Iveco sends its own breakdown teams out that is important as some manufacturers that are allied to carmakers will dispatch an engineer from conventional breakdown services such as the AA and RAC, who are much more likely to have the vehicle towed to a garage for repairs as they don’t carry specialist parts.

Coppin told Fleet Van: “We have created a

“Our task is to exceed the level of service fleet operators expect”

Daily sales are up 15% in a shrinking market

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massive difference between us and other manufacturers in the service we offer customers. Vans are carrying valuable cargoes much of the time which need delivering on time.

“Our roadside assistance is best in class as we realise that fleet operators don’t just want their vehicles to be recovered – they want them working again – and that’s what we can do in the majority of cases.”

Key to maximising uptime for van operators is Iveco’s parts operation – and it has been investing a lot of money in it lately. Any parts ordered by dealers up until 9pm will be guaranteed to arrive by 8am the next day and the centre in Cheshire holds £10 million worth of spares, with 185 employees on site.

Iveco is also investing heavily in its apprenticeship and training schemes. A new training centre was opened in September 2011 at Winsford.

Kevan Woodier, Iveco’s training manager, is responsible for a team of four full-time trainers on-site who deliver training to more than 1,500 people.

He said: “This new facility takes our training capabilities to a whole new level. It reflects the importance Iveco places on delivering the highest standards of training to our own staff, dealers and customers.”

Training ranges from foundation level electrical and diagnostics courses to more advanced classes covering refrigerant handling and preventative maintenance techniques, as well as specialist courses for technicians servicing alternative-fuel and hybrid vehicles.

Sra added: “The thing van fleet buyers should bear in mind is that they get the same level of service as truck buyers – and that’s a boast few manufacturers in the UK can make.”

C o m p l i a n c e To w i n g

New laws cut towing weight for new drivers Towing regulations require careful adherence – and they are changing again in January next year

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By Louise Cole he laws governing which drivers are qualified to pull trailers behind cars or LCVs changed in 1997, meaning anyone passing their driving test since then needs a specific category B or BE entitlement.

On January 19, 2013, they will change again, limiting the weight new drivers can tow without a separate qualification.

Any trailer weighing more than 750kg with a combined vehicle and trailer weight of more than 3.5 tonnes will require a specific BE qualification. This is covered in the Motor Vehicles (Driving Licences) (Amendment) Regulations 2012 (no. 977).

All drivers who passed a car test before January 1, 1997, retain their existing entitlement to tow trailers until their licence expires. This means they are generally entitled to drive a vehicle and trailer combination up to 8.25 tonnes GVW. They also have entitlement to drive a minibus with a trailer over 750kgs GVW. The GVW for a rigid is set at homologation, according to manufacturer Ford, and “will be shown on a vehicle’s VIN plate. This is the total permissible all-up weight of a rigid vehicle – i.e. with body, payload, ancillaries, fuel, oil, water, driver and crew”. What it can tow will be laid down in the handbook.

It is worth refreshing your protocols on towing with small vehicles, as the penalties for running overweight, improperly licensed, or with an improperly secured load, can affect both your

driver with points, fines, and possible imprisonment, and find you liable as an employer under health and safety legislation. If you have an Operator’s Licence, breaches can also see you defending it in front of the Traffic Commissioner.

The penalties and rules surrounding safe weight limits of vehicles and trailers are laid out in the Road Vehicles (Construction and Use) Regulations 1986. The acceptable weight range is vehicle and load dependent so it is impossible to generalise – it is your responsibility to check the law and ensure compliance.

There are two sets of parameters you must take into account when fitting a trailer and load to an LCV: the manufacturer’s recommendations governing towing and the legal permissible weight.

You also need to pay careful attention to the distribution of the load. The SMMT says the load should be evenly distributed across all axles, with a very slight bias towards the front to keep the towing attachment stable.

Police say the most common offences they see are improperly distributed loads which can make the trailer unstable – and you can be prosecuted for overloading one axle even if the overall weight is fine.

You should also check Health and Safety Executive (HSE) guidance on proper load restraint; the safety of workers when manually loading (handballing); and ensure secure attachment of the trailer to the vehicle.

If you have any doubts about the weight of your vehicle and trailer you must go to a

O-licence laws In December 2011, Operator Licensing rules came into effect which means any trailer and vehicle combination exceeding 3.5 tonnes total weight requires an O-licence, provided it is used for hire and reward and not on the user’s own account (ie carrying your own goods or goods you will use).

Builders using trailers to clear waste from sites, for example, should double -check with VOSA as to whether the vehicles require an O-licence, as this waste removal could be construed as a pure freight journey.

Checklist n Do I need an O-licence? n Is the driver qualified? n Is the trailer and load suited to the vehicle according to manufacturer’s recommendations? n Is the load being properly distributed and safely secured, for transit as well as later unloading? n Is the vehicle and trailer under its maximum permissible weight? n Is the trailer weight legal overall and over each axle? weighbridge. If you are found to be overloaded on the way, it is an offence but, provided you were genuinely heading for the nearest weighbridge, this is often an adequate defence, according to SMMT. You also need to be aware of speed restrictions for towed trailers. Generally these are 50mph on a single carriageway road and 60mph on a dual carriageway. n For more details, see SMMT Towing and the Law: www.smmt.co.uk/reports-publications

fleetnews.co.uk/fleetvan September 2012 9

Risk Vehicle checklists

SAVE CASH – AND LIVES – WITH BASIC VAN CHECKS Introducing regular vehicle inspections can prevent serious problems from occuring

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vehicles and components anywhere around the

By Trevor Gehlcken f all the areas of van fleet management, country, either in real-time or recorded for later service, maintenance and repair is the transmission.

When vehicles are booked into Masterserve one that tends to be most easily garages for service and repair, a video link allows overlooked.

There are two basic problems. maintenance experts at FSG’s Chippenham headFirstly, many vans are used by different drivers, quarters to view live pictures via a broadband link.

When vehicle abuse is detected, fleet managers which in turn means that none of them feel obliged in charge of the damaged vehito carry out basic maintenance cles are informed and shown checks. the evidence.

The second challenge is that Fleet Support Group vans have, if anything, become chairman Geoffrey Bray said: too reliable and many now can “Masterview has highlighted travel 25,000 miles without numerous horror stories to needing to go into the garage fleet managers as to exactly for a service. what damage drivers are While this fact is a bonus for causing to company vans. fleets in terms of money saved, “On viewing the live pictures, it can lead to serious problems fleet managers are often horrias a lot can happen to the fied at the condition of some of vehicle in that time – brakes their vehicles. can wear out, oil can be used “They then use Masterview up – and if a major breakdown to police the situation. occurs, that money saved will “The technology comes into soon evaporate.

Geoffrey Bray, Fleet Support its own particularly when Worse still, an accident Group chairman vehicles are located away could occur, causing serious injuries – leading to even more financial stress and from where fleet managers can undertake their own vehicle inspections.” strain on the company.

As a result of the abuse uncovered, FSG has According to Fleet Support Group, the problem launched a new campaign called ‘Are Your of driver abuse is a major one.

The company’s nationwide network of Vehicles Fit For Purpose?’, which supports Masterserve garages are equipped with Master- the company’s RiskMaster work-related road view – a remote video inspection system that safety programme.

One way of avoiding driver abuse is to fit one of enables fleet managers to view the condition of

“Fleet managers are often horrified at the condition of some of their vehicles”

10 September 2012 fleetnews.co.uk/fleetvan

the new devices such as that offered by Trimble, which check the movement of vehicles on the road and report back to the fleet manager any instances of harsh braking, cornering and acceleration.

We can vouch for the efficiency of these systems, having tested one for a month and reported back in the May 2012 issue of Fleet Van. The only drawback is that the data takes time to collate, so if you have hundreds of drivers on your books you need to set tight parameters and KPIs to ensure you don’t spend all your time assessing the data.

Assuming that your drivers are a fairly responsible bunch of people and aren’t going out to deliberately wreck your vehicles, there is help at hand for the fleet manager in the form of computer software. Software specialist Jaama, for example, offers a system called Key2 Vehicle Management, which is specifically designed to help with the task of maintenance.

Martin Evans, Jaama’s sales and operations director, said: “Extending vehicle replacement cycles has become a trend in the economic downturn, but in many cases it could prove to be a false economy.

“As the age of a van increases, so do maintenance costs, particularly as they emerge out of comprehensive manufacturer warranty cover.

Keep SMR costs under control “It makes economic sense to ensure that service, maintenance and repair (SMR) costs are not rocketing out of control and overtaking a used vehicle’s residual value as vans move into their fourth and fifth year of operation when three years was often

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 come back to you in the event of a problem and pretend they didn’t know.

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: every Every time the tank is filled: n check Check oil level

the pre-recession norm,” he said. “To ensure that fleet decision-makers using our system can easily see at a glance whether SMR costs outweigh depreciation, a simple ‘red’ and ‘green’ forecasting graphic has been developed.”

The system not only stores data, but actively manages, monitors and analyses it automatically, with automated tolerance checks and notifications being carried out by the system.

Optimum time for vehicle replacement Evans added: “Fleet managers can graphically view exactly where vehicle costs move from a normal curve up to a spike via the ‘red’ and ‘green’ graphics and then identify the optimum age of the van when it should be defleeted.

“Fleet managers must also bear in mind that some van drivers are more likely to take extra care looking after a new vehicle than an older vehicle, which can also mean operating costs rise at a faster rate than before.”

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. 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

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 should be reported immediately as early attention can save a great deal of cash.

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 This means that in the event of an accident, the screen will pop out, meaning greater risk for the driver and passengers.

tYReS TYRES tyres Tyres tend to be neglected more than any other item on the van. close Close attention should be paid to them if they are to give good service. the The key to long tyre life is keeping them at the correct pressure – and this means a weekly check, along with a visual daily glance to make sure no foreign objects are embedded in them.

Peter Fairlie, group sales director of atS ATS euromaster, Euromaster, said: “tyres “Tyres have to work

cOnclUSiOn CONCLUSION vehicle Vehicle checking as outlined here is a relatively simple matter, but it may not be so easy to put this theory into practice. there There are two approaches – carrot or stick – and either may work for your fleet. the The stick may involve disciplinary action if procedures are not followed and the carrot may include a small bonus or prize for the best-performing drivers. in In our experience, the carrot always works better.

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R Re em ma a rr k ke e tt ii n ng g C Co on nd d ii tt ii o on n

Condition remains key to selling vans at auction Buyers Buyers are are keen keen to to puchase puchase good good stock stock but but damaged damaged vans vans get get left left on on the the side side

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By

By Trevor Trevor Gehlcken Gehlcken very very month month the the big big auction auction houses send out houses send out the the same same message: message: good-quality good-quality vans vans are are finding finding eager eager buyers buyers while while scruffy scruffy vehicles vehicles are are struggling to sell. struggling to sell.

That’s That’s hardly hardly surprising surprising really. really.

The majority of buyers The majority of buyers at at auction auction are are traders traders who who will will take take your your used used LCVs, LCVs, patch patch them them up up and and turn turn them them into into cash cash on on their their forecourts. forecourts.

They They are are experts experts and and know know exactly exactly how how much much each each piece piece of of damage damage will will cost cost to to fix. fix. IfIf it’s it’s too too much, much, they they will will not not be be able able to to make make aa profit profit so so their their hands hands will will remain remain firmly firmly in in their their pockets. pockets.

Light Light commercial commercial vehicle vehicle sales sales are are hugely hugely complicated complicated as, as, by by their their nature, nature, the the vehicles vehicles being being offered offered have have been been used used and and often often abused. abused.

If, If, for for example, example, your your business business involves involves delivering delivering flowers, flowers, the the vans vans you you offer offer at at auction auction are are likely likely to to be be pristine pristine apart apart from from maybe maybe the the odd odd spill spill of of water. water.

But But ifif you you run run aa building building firm, firm, your your vehicles vehicles are are likely likely to to be be worth worth little little more more than than scrap scrap value value at at the the end end of of their their fleet fleet lives lives and and you you would would be be wise wise to to factor factor this this into into your your contracts contracts when when going going out out looking looking for for business. business.

But But in in between between these these two two black black and and white white scenarios scenarios are are many many shades shades of of grey grey –– and and itit is is to to these these that that we we turn turn here. here.

Do Do you you patch patch up up your your vans vans before before selling selling them them – – and, and, if if so, so, how how far far do do you you go? go?

It’s It’s aa question question that that the the major major auction auction houses houses take take aa lot lot of of trouble trouble over over and and the the good good news news for for fleets fleets is is that that their their

Proper Proper preparation preparation and and presentation presentation are are key key to to getting getting top top price price at at auction auction advice advice comes comes free free as as part part of of the the selling selling package. package.

All All the the experts experts agree agree on on one one thing thing –– your your quest quest for for clean clean vans vans at at selling selling time time begins begins when when you you buy buy them. them. The The first first job job is is to to add add ply-lining ply-lining to to the the list list of of paid-for paid-for options. options. It It will will cost cost around around £200 £200 per per unit unit depending depending on on the the size size of the van but will add much of the van but will add much greater greater value value at at selling selling time time when when you you peel peel away the dirty wood to reveal away the dirty wood to reveal aa prispristine tine interior. interior.

It It will will also also prevent prevent reverse reverse dings dings –– damage damage caused caused by by loose loose cargo cargo floating floating around around in in the the back back (although, (although, of of course, course, everything everything should should be be securing securing fastened) fastened) which which knocks knocks lumps lumps out out from from the the inside. inside. This This can’t can’t be be mended mended cost-effectively. cost-effectively.

The The second second item item to to opt opt for for at at buying buying time time is is aa reversing reversing sensor sensor for for each each vehicle. vehicle. Again Again at at around around £200, £200, these these devices devices will will help help avoid avoid all all those those annoying annoying knocks knocks and and scrapes scrapes that that tend tend to to plague plague light light commercial commercial vehicles and make vehicles and make them them worth worth less less at at selling selling time. time.

The The sensors sensors will will invariably invariably pay pay for for themselves themselves during during the the van’s van’s fleet fleet life. life.

Sensors Sensors will will also also help help avoid avoid the the possibility possibility of of reversing reversing over over aa passing passing pedestrian, pedestrian, which which in in itself itself should should make make them them aa must-have must-have option. option.

BCA BCA UK UK business business development development manager manager –– commercial commercial vehicles vehicles Duncan Duncan Ward Ward said: said: “There “There is is aa real real shortage shortage of of good-quality, good-quality, ready-toready-toretail retail used used vans, vans, which which is is leading leading to to

fierce fierce competition competition and and generally generally rising rising values values for for the the best best examples. examples.

The The flip flip side side is is that that vans vans in in poor poor condition condition are are often often being being overlooked overlooked because because of of the the time time needed needed to to bring bring them them up up to to retail retail standard. standard.

“Proper “Proper preparation preparation and and good good presentation presentation are are vital vital ifif your your LCVs LCVs are are going going to to achieve achieve the the best best possible possible price price at at auction. auction. With With the the demand demand for for well-presented well-presented vans, vans, there there is is aa massive massive opportunity opportunity for for sellers.” sellers.”

Smart preparation Smart preparation –– the the process process of of bringing bringing vehicles vehicles back back to to ‘show‘showroom room condition’ condition’ through through paint paint techtechnology, nology, cold cold metal metal dent dent removal removal and and repairs repairs to to interior interior and and trim trim –– has has an an important important role. role.

fleetnews.co.uk/fleetvan fleetnews.co.uk/fleetvan September September 2012 2012 13 13

Remarketing Condition

UNDER THE HAMMER George Alexander, editor, Glass’s Guide to CVs Where both retail and trade values are not being adjusted to reflect actual condition, expensive mistakes will creep into any deal struck. No two commercial vehicles are the same, have covered the same distance or have identical interior/exterior condition – down to the depth of tyre tread. VED licence remaining should be taken into account together with major elements of mechanical soundness.

After considering these, and all other relevant factors, it soon becomes clear that two so-called ‘similar vehicles’ will often deserve very dissimilar values.

Glass’s Guide Condition is defined as the standard we set for any vehicle’s mechanical condition and the presentation of its bodywork. Although this is laid out in some detail, it is not intended to be a comprehensive check list. The numerous variations in condition that will be encountered can only be properly assessed by someone competent to determine the true state of a vehicle when working in a methodical manner.

“Too few operators appreciate that interior condition is important” So, despite acknowledging the shortcoming of any brief overview of what constitutes acceptable condition in terms of mechanical wear and tear or panel damage, the need to assess condition remains paramount.

We believe that to successfully use this Guide, it is crucial that you know how we describe vehicles conforming to our three trade standards.

It seems inexplicable that some use Guide values without placing that information into context; i.e. is it a part-exchange, repossession, auction disposal, finance deal, underwrite, fleet valuation etc. Accordingly, we would ask that you read ‘How to Use this Guide’ and always adjust Guide values for condition.

In addition to considering the exterior, too few operators appreciate that interior condition is at least as important.

As with most processes, the quality of what comes out is dependent upon the standard of the ingredients put in.

That is to say that a valuation for any used truck or van that is lifted from the pages of Glass’s Guide, and used without reference to condition or dealing circumstance, is an approach destined to lead to inaccuracies.

So if you are not adjusting for condition, the question has to be asked, why not?

14 September 2012 fleetnews.co.uk/fleetvan

Ward said: “This work can be left when the vehicle is technology helps sold, particularly if it is more than vendors maximise four years old. In the current returns by ensuring economic climate buyers are vehicles look their best when they looking to save money and if it helps are sold. Vendors are enjoying bring the price down a little, it is significant returns on their ‘prepara- more likely to sell.

Wright said: “A tatty ex-fire sertion investment’ and notable improvements in entry-to sale-ratio. vice 52-plate van that went through “Smart preparation is a valuable Shoreham recently showed how a tool provided vehicles are chosen buyer was prepared to pay more for carefully. For a 2010 model year van the vehicle because it had an at 10,000 miles in good condition, but immaculate service history, despite with a few small dents, Smart the exterior condition of the van.

“Buyers normally prefer to buy a prepared can be a cost-efficient white vehicle as they can usually choice for the vendor.”

However, the return on invest- repair the bodywork quite easily and cheaply with-out ment to bring a the use of an five or six-year-old, expensive paint 100,000-mile van, oven. without a straight “If a customer panel to its name, wants to buy the back to showroom vehicle with condition is likely to damage they can be less rewarding. sell it as seen or, if When deciding they want a pristine whether to repair vehicle, they can an LCV before repair it and sell it selling it, Shoreham for more money.

Vehicle Auctions Buying a slightly MD Alex Wright body-damaged says there are vehicle therefore several factors to gives the trader consider – the main Duncan Ward, BCA options to widen one is the age of the their buyer base. vehicle. Repairing “Buyers tend to value lifestyle any damage or faulty electronics on sub four-year-old vehicles will vehicles such as the Volkswagen Transporter, Mercedes-Benz Vito or dramatically increase their value.

The older the vehicle, the less Renault Trafic, higher than other important it becomes to repair. LCVs which they might use for work These vehicles are often treated like purposes only. As Transporters and workhorses and are being bought to Vitos often double up as a weekend adhere to legislation changes such companion, drivers prize these vans as the new London Low Emission much more and would be put off a vehicle if it had extensive damage.”

Zone regulations.

If the bodywork is damaged, it is important to note where the damage Optional extras is. Any extensive damage crossing Any vehicle with metallic paint will two or more panels should be greatly depreciate in value if there is repaired (irrespective of the van’s bodywork damage, as these panels age), as something like this might can be expensive to put a buyer off due to the repair repair, particularly if the van is more than costs after purchasing the vehicle.

Small dents and nicks to body- four years old.

“Smart Preparation is a valuable tool, provided vehicles are chosen carefully”

The older the vehicle, the less important a repair

R Re em m aa rr k ke e tt ii n ng g C C oo n n dd ii tt ii oo n n The The higher higher spec spec aa vehicle is, the vehicle is, the more more valuable valuable itit is is in in the the buyer’s buyer’s eyes, eyes, so so ensuring ensuring itit arrives arrives for for sale sale with with as as little little damage damage as as possible possible will will help help itit sell sell for for aa better better price. price.

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

A A good good clean clean interior interior will will help help generate generate aa better better price. price. A A buyer buyer will will often often take take the the interior interior condition condition into into consideration consideration when when secondsecondguessing guessing how how hard hard aa life life the the vehicle vehicle has has had. had. ItIt can can impact impact on on the the value value ifif itit looks looks dirty dirty and and untidy. untidy.

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

Take faulty engines Take faulty engines and and geargearboxes, boxes, for for example. example.

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

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

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

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

Manheim’s Manheim’s buyers buyers are are increasincreasingly reporting that repair ingly reporting that repair workworkshops shops are are getting getting busier, busier, while while retail retail van van sales sales remain remain steady, steady, suggesting suggesting condition condition is is generally generally worsening. worsening.

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

2006.

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

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

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

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

“This “This continual continual focus focus on on emisemis-

sions sions only only ever ever targets targets the the dirtier, dirtier, older end of the market – older end of the market – vans vans that that are aregenerally generallymore morethan than10 10years yearsold. old.

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

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

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Environment Nitrogen oxides

NOx:

PARTICULATE PROBLEMS FOR VAN OWNERS New legislation will focus on another emission which could raise the costs of running a van fleet

20 September 2012 fleetnews.co.uk/fleetvan

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By Alasdair Suttie hen the word ‘emissions’ is mentioned, most of us will think of carbon dioxide. It has become the measure of how clean or otherwise most vehicles are, but there’s another critically important exhaust gas that could have far further-reaching implications for van users. It is called NOx and refers to oxides of nitrogen.

The diesel engines used in the vast majority of vans create the ideal conditions for producing NOx. It is created when nitrogen present in the fuel mixes with air during the combustion cycle.

When NOx has been produced, it then exits through the exhaust into the atmosphere and is accompanied by particulate matter (PM), which is often visible as black soot.

What makes NOx emissions even more complex and dangerous is that they are formed of more than one gas. As well as nitrogen oxide, there is nitrogen dioxide and nitrous oxide, which is thought to account for 7% of the major contributors to greenhouse gases.

Nitrogen dioxide is very toxic and even small quantities in the air can cause serious respiratory problems. Particulate matter is another contributor to respiratory health problems and it is also thought to be carcinogenic.

All new vans registered from October 2009 are required to meet the Euro5 emissions standard that states the engine must not emit more than 180mg/km of NOx. With the Euro6 emissions standard of 80mg/km coming into force on September 1, 2015, for Class 1 vans, there are only three years for van operators to look at reducing their vehicles’ NOx emissions.

For particulate matter, Euro5 dictates a maximum of no more than 5mg/km, which is an 80% reduction on Euro4 limits, though Euro6 is unlikely to reduce this limit further (See July/ August Fleet Van for more on Euro legislation).

By more than halving the maximum permissible limit for NOx emissions, the European Union hopes to encourage van operators and

manufacturers into cleaner vehicles. As with all Legislation is already in place as part of such moves, however, there will be a cost London’s Low Emissions Zone (LEZ) to restrict attached and that is most likely to be passed on the use of vans that do not meet the required to the customer ordering a new van. standard. For the LEZ, this means vans that To reach the current standard, many van don’t meet the Euro4 emissions standard will makers use AdBlue to treat exhaust gases and pay a £250 fine for entering the zone, which remove NOx emissions from the tailpipe. covers almost all of London inside of the M25.

AdBlue is a urea additive that This fine rises to £500 if the works by chemically treating original penalty is not the exhaust gases with settled within 14 days and it ammonia. It reacts with the applies to all vans with a NOx to form harmless weight between 1.205 nitrogen and water vapour tonnes unladen and 3.5 that passes out of the tonnes gross vehicle weight. exhaust normally.

It must be remembered The downside to AdBlue the LEZ only measures PM is that it needs to be replenrather than NOx when ished, usually at normal assessing which vehicles service intervals, which are exempt from charges. contributes another cost.

Webb believes other Many believe AdBlue is cities will follow London’s only a medium-term soluexample with the Low tion to the problem of NOx Emissions Zone. emissions.

“It’s inevitable that LEZs John Webb, principal will spread to other cities as John Webb, Lex Autolease’s consultant for Lex Autothe same risks and probStrategic Fleet Consultancy lease’s Strategic Fleet lems exist in places such as Consultancy, said: “Hybrid Manchester, Birmingham power is a longer-term solution than AdBlue, and others as in London,” he said. but only if the price is right. There must also be “If the London model proves successful, the infrastructure to run hybrid vans, such as LEZs will appear in other cities shortly.” plug-in electric charging points, and the running However, Webb sounds a note of caution: costs must also be better than for diesel to “While we can measure original manufacturer attract fleets.” data concerning PM and NOx, we don’t have He said the message about NOx and PM has clear data from real operating cycles in the van a long way to go before it sinks into the majority market. Until we have this, we cannot make of van operators. accurate judgements.”

He said: “For most operators, NOx isn’t even One thing Web is certain of is the importance on the agenda. The Government could help with of considering NOx and PM emissions when raising awareness as the same needs to be choosing your next van. done for NOx and PM as happened for CO2. With He said: “The van market is some way behind government, the European Union and van the car market on this front. There are huge manufacturers pulling in the same direction, it challenges ahead to meet NOx and PM targets, is achievable and we need people to understand and this needs to be as widely understood as CO2 is now.” the health implications of NOx and PM.”

“There are huge challenges ahead to meet NOx and particulate matter targets”

What are the health effects of NOx and PM? Nitrogen oxides and particulate matter (PM) pose serious problems to health. PM can be seen as a smoggy haze over cities and this can aggravate the symptoms of asthma and those who suffer allergies. Damage to lung tissue and lung function are also linked to PM, leading to impaired respiratory systems and premature death in the worst cases. The small size of PM also means it gets deep into lung tissue, worsening conditions such as bronchitis and emphysema, and it’s also linked to incidences of cancer.

The increased risk of cancer for those exposed to PM is thought to be due to particulate matter absorbing an estimated 40 cancercausing chemicals present in diesel exhaust gases.

Even if you are not affected by these health issues, PM and NOx are also responsible for short-term health effects such as irritable eyes, nose and throat ,with hay fever-like symptoms that can cause nausea and coughing fits that can be a pre-cursor to asthma.

fleetnews.co.uk/fleetvan September 2012 21

“If fleets don’t know what they want then it is difficult for manufacturers to help” Nigel Allen, Anglian Water

Fleet case study Anglian Water

Using his own wholelife costs for vehicle choice as well as having in-house management flexibility means Nigel Allen can say:

‘OUR FLEET IS THE MOST COST-EFFICIENT IT’S EVER BEEN’

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“We undertake our own warranty work and have parts delivered next day

By John Charles he fleet operation is frequently the second biggest cost in an through Vauxhall Trade Club, which not only provides the most affordable organisation after employees, so when the pressure is on to save solution, but reduces downtime. All parts are supplied under warranty.”

Factors that are taken into account by Allen when calculating wholelife money it is essential to know that the most cost-effective vehicles costs are: budget price; estimated residual value utilising a combination of are being operated.

That is why fleet professionals such as Nigel Allen, Anglian data from vehicle information provider CAP and his own market intelligence; Water’s fleet manager, uses industry knowledge and expertise to compile his maintenance using own workshop costs and labour rates versus national averages; cost of common parts based on fleet history and the company’s own vehicle wholelife costs to ensure the operation’s optimum efficiency.

Choosing the most cost-effective vehicles for the van fleet is the first crucial accident management data; and manufacturers’ average fuel economy. decision in the fleet management process.

The cheapest vehicles to operate are those with the lowest wholelife costs Costs are reviewed annually – not necessarily those with the lowest list price – over a fleet replacement “That gives us our wholelife costs on a per-vehicle basis utilising a combination of published data and our own real-world knowledge and experience,” cycle, which in Anglian Water’s case is 120,000 miles/five years.

However, in-house management flexibility and used van market accept- says Allen, fleet manager since 1997 and previously a workshop manager ance mean that vehicle replacement is driven more by mileage than age, with during his 34-year Anglian Water career.

“We review costs annually and all figures are based some of the organisation’s 1,200 light commercial on market testing. We actively monitor costs day by vehicles replaced at three years while a handful run day and that means we can react to any issue into a sixth year. before it has any significant impact.”

Anglian Water, the largest water and wastewater For example, if a major vehicle mechanical service in England and Wales by geographic area, Company: Anglian Water problem materialises, the fleet team will investioperates a 95% Vauxhall van fleet embracing Corsa, Fleet manager: Nigel Allen gate and discuss the issue with the relevant manuCombo, Vivaro and Movano models.

Time in role: 15 years facturer in a bid to implement a solution to prevent The remainder of the fleet is composed of a wide LCV fleet size: 1,200 other vans on the fleet being similarly affected. cross-section of LCVs from other manufacturers LCV brands on fleets: Vauxhall, Renault, Allen believes that smaller fleets can also benefit which, in the main, Anglian Water has had on trial Mercedes-Benz from close relationships with manufacturers, and then opted to buy. They range from Renault Van replacement cycle: five years/ which helps keep costs under control.

Kangoos to a five-tonne Mercedes-Benz Sprinter.

120,000 miles “Fleets need to talk to manufacturers to enable “Our current fleet is the best, most cost-effective them to build up an understanding of what is solution we’ve ever had,” says Allen, who believes it required and they can then deliver. Too often fleets is vital to be aware of what is happening in the marketplace, which is why the company continues to work with other manu- aren’t sure what they want and they don’t understand what help and support is available from manufacturers. If fleets don’t know what they want then it facturers despite its long-term Vauxhall allegiance. is difficult for manufacturers to help.”

Not surprisingly, Allen believes some employers have been too quick in Reduced wholelife costs “We borrow a vehicle for perhaps six months and put it through its paces in dispensing with fleet managers and effectively outsourcing the role to a the day-to-day work environment. We frequently end up buying the van as leasing and fleet management company.

“The major fleets are getting smarter in their operations, but smaller fleets long as it is fit for purpose and that then enables us to gather five years of often use third-party suppliers who have different objectives and that data on the vehicle for comparison purposes.”

Excluding fuel – the biggest single cost on any fleet outside of vehicle frequently costs them money,” he says.

Allen believes smaller fleets could group together and employ a fleet acquisition/depreciation – Allen has seen wholelife costs reduce in recent manager between them. He says: “A knowledgeable fleet manager could years as vehicle build quality and reliability improves.

Additionally, following the introduction by Vauxhall of its 100,000-mile life- use their experience to cost-effectively and efficiently manage two or three time car warranty in 2010, Allen negotiated a five-year warranty on Vauxhall fleets and I believe those companies would benefit significantly.”

As a member of the Freight Transport Association’s Utilities vans which replaced a previously agreed four-year warranty.

Anglian Water has seven workshops across its region, which stretches Group, Allen discusses key issues with his opposite numbers from the Humber north of Grimsby to the Thames estuary in the south, and from other organisations.

“We discuss data with each other and that helps to ensure from Buckinghamshire in the west to Lowestoft in the east.

Fact File

fleetnews.co.uk/fleetvan September 2012 23

Fleet case study Anglian Water However, while fixtures and fittings may be enjoying an extended life, Allen does not believe van replacement cycles can be similarly doubled or tripled.

“Vans are more reliable and robust than in the past, but it is a question of what is remarketable,” he says. “120,000 miles remains the benchmark in the used van market and there is the cost benefit analysis to take account of in terms of vehicle reliability and repair costs versus residual value. Eight years is perhaps the optimum, but then it depends on mileage.”

With an eye continually on operating costs, Anglian Water is already utilising Vauxhall’s fuel-sipping, low-emission EcoFlex vans equipped with speed limiters. Together with the manufacturer, it is investigating having them equipped with rev limiters.

“Fuel costs are rising, but fitting speed limiters has helped limit budget increases and fitting rev limiters will further help keep costs in check,” he says. “Indications are that a 4% fuel saving will result.”

Operating petrol-engined vans has also been considA financial balancing act ered to cut costs. For example, when the price differential “We forecast residual values annually for budget between a litre of petrol and diesel reached 16p last year purposes, but quarterly we look at the market and see as pump prices soared, Anglian Water added a petrolwhat is happening in the auction halls. Taking account of engined Combo van to its all-diesel fleet. vehicle mileage and market conditions we then react Real-world operating conditions revealed that the accordingly. It is a financial balancing act between vehicle price difference needed to reach 18p to make the vehicle value, mileage and predicted maintenance costs so we financially viable – a figure not achieved – so the Combo remain within our budget forecasts.”

Nigel Allen, Anglian Water’s remains the only petrol-engined model on the fleet.

Aiding wholelife cost savings was behind Anglian fleet manager Meanwhile, Allen is reserving judgement as to whether Water’s 2006 decision to ask van storage solutions speelectric vans will be added. Although a £60 a month cialist Bott to fit new vans with shelving, work benches, hand washers and other equipment from defleeted vehicles. Today, many saving in fuel costs is being recorded from a ‘test’ Kangoo, that benefit is vans are equipped with second-generation fittings – and now the company cancelled out by battery rental costs. Additionally, the vehicle’s 75-mile van is considering a possible third-time reuse – with Allen saying: “We are range is a concern.

Allen says: “We are looking at a replacement cycle of eight to 10 years to making a 25% cost saving over two lifecycles.”

He believes Anglian Water was one of the first organisations to fit new vans make such a vehicle viable. If our data reveals that electric vans could be at with fittings and fixtures from de-fleeted vehicles and says it is a practice that least cost-neutral versus diesel then we would probably accommodate them in the fleet due to environmental benefits.” others fleet could learn from as they seek to reduce costs.

Vehicles may sometimes be stationary, but it is not a word that exists in Indeed, one item of equipment – jetting machines – has been ‘recycled’ Allen’s vocabulary as he pro-actively uses wholelife costs to manage budgets. since 1996, meaning that some are 16 years old. that I have a firm handle on fleet finances. If one fleet identifies a problem it could be that another already has a solution or we can take an issue to a manufacturer and get it resolved,” he says. “Everyone has the same aim, which is keeping costs under control, so it helps to work together.”

Over the years, Anglian Water has moved from purchasing to leasing vehicles and outsourced fleet and maintenance management, then brought it back in-house; now all vehicles are bought, managed and maintained in-house.

“We are definitely saving money; we are efficient and we are in control,” says Allen, highlighting the fact that the organisation has the flexibility to defleet vehicles as determined by market conditions and not by when a contract hire agreement ends, unless penalties are incurred.

“Fuel costs are rising, but fitting speed limiters has helped limit budget increases”

Nigel Allen: ‘We are efficient and in control’

24 September 2012 fleetnews.co.uk/fleetvan

MERCEDES GUNNING FOR SECOND PLACE Citan will help van maker’s next push after 7.5% increase in a falling market

M

By Stephen Briers ercedes-Benz has jumped two places in the van sales table this year, moving from seventh to fifth position after a 9% rise in registrations.

Market share has increased by more than one percentage point, from 6.85% to 8.02%, while sales are up from 11,037 to 11,874 – the largest increase of any van manufacturer bar Peugeot. And it has done all this with a model line-up of just two vans: Vito and Sprinter.

Such a restricted range puts Mercedes-Benz at a disadvantage with some fleets which are looking for solus supply to accommodate all their needs, particularly as they look to downsize into smaller vans.

Mercedes-Benz will address this issue with the launch of the Renault Kangoo-based Citan at the start of 2013. We caught up with van sales and marketing director Steve Bridge to ask: are you really looking to become the UK’s second biggest van seller?

Fleet Van: The Citan is an important model for Mercedes-Benz but you have chosen to collaborate with Renault. Is it simply a re-badged Kangoo?

Steve Bridge: It’s a three-year project with Renault and we have made significant changes, particularly to the suspension to make the driving experience more in keeping with the Vito and Sprinter. It’s not as soft and the seats are firmer. As well as changing the seats, the Citan has a different dash and instruments, our own safety systems and the fit and finish of the panel gap is improved.

The engines and transmission are shared with Renault. They are strong engines with low CO2 so there was no point in investing in our own engines.

We need this van to complement our range. We have customers that take all our products but also a Volkswagen Caddy or equivalent because we don’t have it. But they want to have a relationship with just one manufacturer.

FV: You will have a petrol engine as well as three diesels (75, 90 and 115). Do you believe fleets will consider petrol as an option?

SB: It’s all about the residual value and the pricing guides see petrol as the devil. We have had problems with DPF [diesel particulate filters] – every manufacturer has had to wrestle with it – and fleets need to educate their drivers on the regeneration cycle.

We have indicators on our vans that tell them when it is on this cycle; the issue comes if you repeatedly interrupt it. We are having fewer issues with our Euro5 engines.

FV: Your sales are up by 7.5% this year in a market that is down by 8%.

How is this being achieved?

SB: We amended some processes to change our year-end performance last year. So our finance schemes and campaigns continued into quarter one and two this year; we didn’t stop at the end of the year. This has borne fruit. We had a lot of momentum from Q3 and Q4 last year which gave us a strong order bank for this year.

We also put more focus on local fleet, although we also had some notable wins in national fleet. We are ahead by 1,300 year-on-year, which is ahead of our plan, and we targeting to end the year at this level ahead.

Fact File

Steve Bridge enjoyed some notable wins with national fleets

26 September 2012 fleetnews.co.uk/fleetvan

Company: Mercedes-Benz Van sales and marketing director: Steve Bridge Time in role: 6 years Sales (2012): 11,874 YTD (up 7.58%) Market share: 8.02% (2011: 6.85%) Key models: Vito, Sprinter, Citan (due 2013)

Industry spotlight Mercedes-Benz

FV: You have previously told us about your plans to become number two in the sales chart. Is this realistic?

SB: We do have ambitious growth plans. Stage one is at the end of 2012 if we achieve our aspirational target. Next year we will have the Citan and we are looking for a 4% share of an 80,000 segment [3,200 models].

We definitely want to be the second biggest. If we replicated our best practice across the brand in fleet and retail we would already be selling 44,000 a year without Citan [which would make it number one]. Vito is number one in retail, but not fleet; Sprinter is number one in fleet, but not retail. If we improved both we would double our annual sales.

There’s a huge marketplace and we need to increase our share of customers. We have a lot of Sprinter customers that don’t buy our medium van, for example. We haven’t enforced cross-deals but we have to be more capable of tailoring deals to a customer’s needs with basket pricing not individual pricing. We have some ideas to take a different approach to market, but that’s all I’m saying for now.

they get the right van. Are fleets ready for this consultative type approach?

Some are.

FV: What impact has the recession had on fleet operations?

SB: Companies are more careful and less gung-ho about changing their vehicles. They are informed and they understand the wholelife cost model. More of them understand maintenance and residual values. All this is what we’ve been selling on for years.

A lot of fleets are innovative; they know they have to change and they are asking if we can help. We are looking at the opportunities of new and used vans. Is it essential that fleets buy new? Not necessarily. We have to get them into the brand and that might be a used van. We would like to do more of that.

By 2016 we want to be selling more than one million units a year for new and used; we sold around 600,000 last year [580,000 used and 20,000 new]. Traffic growth is expected to increase by 40% over the next 20 years but we won’t get all that on Steve Bridge, Mercedes-Benz van the road. We have to play with the vehicles that we sales marketing director have now.

“By 2016 we want to be selling more than 1m units a year for new and used”

FV: Is part of the reason why you are launching Citan due to the trend for downsizing among fleet operators?

SB: We believe the small-medium-large van definitions need changing; the lines are blurred. We see customers optimising the size of vehicles they are operating but the worst at doing this are the large fleets.

They tend to keep the vans they have always had. But with CO2 legislation and road fund licence we will see the van landscape change dramatically.

We are planning for a consultative selling approach with our dealers to understand customers’ needs – i.e. what job do they do – to ensure

B

ridge is bullish and assured about Mercedes-Benz’s aspirations. He talks up the company’s propositions, but does so in the knowledge that it has the products to ‘walk the walk’. Fleet relationships play a central role in any success and new pricing initiatives plus a commitment to understanding and fulfilling customers’ needs – even helping those customers to understand their own needs – will help to pave the way for more solus-type partnerships.

With the UK van sector struggling to recover following the 2009 collapse, this approach could prove to be the key differentiating factor.

Mercedes is expecting to sell 3,200 Citans next year

fleetnews.co.uk/fleetvan September 2012 27

F i r s t d r i v e F o r d Tr a n s i t C u s t o m

Custom built for British market Ford comes up with a completely new lightweight van What’s new? n Stylish curves and car-like ride and handling n Improved fuel efficiency of 42.8mpg from 2.2 diesel n Class-leading loadspace and side door opening

T

By Trevor Gehlcken he Transit may have been the biggest selling van in the UK by a mile since its launch in 1965, but of late the bosses at Ford have been increasingly concerned that there is a serious problem with the brand.

While all the other manufacturers have two separate panel van offerings in the 2.5-4.5 tonne sector (Vauxhall Vivaro/Movano, Mercedes-Benz Vito/Sprinter etc), the Transit straddles both weights.

And as the demands and expectations of fleet buyers become ever more complex, the Transit has begun struggling against an opposition that is evermore customer-focused.

This problem is about to be solved with the launch of the sixth generation Transit. In an extended roll-out that will last until late next year, Ford is putting a new lightweight Transit on sale this year and calling it the Transit Custom, while new heavier models will be revealed late this year, to be labelled Transit.

Explaining the logic behind this major new direction at the Transit Custom launch in Munich, Transit product manager David Petts told Fleet Van: “Our new Transit, which will go on sale mid-2013, will be mainly aimed at fleet buyers while the Transit Custom launched here is more for owner-drivers, although of course some fleets will still buy it.

“We are aiming to put more distinction between these two models. We need two different products to focus more keenly on each of these sectors and each model will have completely different brochures and a different dealer focus.

“Trying to sell everything under one umbrella just doesn’t work any more. The two sets of customers have very different needs.”

The Transit Custom revealed here looks entirely different from its predecessor. Gone are the rather chunky pedestrian looks of the Mk5, to be replaced by stylish curves and a truly car-like ride and handling package. In fact, everything but the engine, transmission and suspension has been replaced with new parts – and even those items carried over have been heavily modified.

Also at the launch was Ford of Britain managing director Mark Ovenden, who has taken over as the head of light commercial vehicles following Steve Clary’s promotion to managing director of Ford Component Sales.

Ovenden said: “We are proud that the new Transit has been designed and engineered in Britain, using the global might of Ford.

28 September 2012 fleetnews.co.uk/fleetvan

“This launch is the first instalment of two years of new product for us and the entire LCV range will be replaced by 2014.”

Ovenden said Transit sales volume beats the next four competitors combined and he believes the new model will turn the van into a global superbrand.

“This new Transit has superb noise, vibration and harshness qualities and a car-like interior – it also retains the strength, durability and low cost of ownership that is expected of the Transit name,” he said. “We’ve taken the best bits of the Transit and added to them.”

The residual value experts at CAP obviously agree.

They have already assessed the new vehicle and have awarded it a predicted value at three years/60,000 miles of 36% for the 270 version, 11 percentage points higher than the outgoing equivalent 260 model.

So what’s new apart from the stylish exterior?

The Transit Custom weighs in at between 2.7 and 3.3 tonnes gvw and comes in long and short-wheelbase format. There will also be Tourneo minibus version (eight or nine seats) and, later, a high- roof version.

It’s powered by Ford’s tried and trusted 2.2-litre common rail diesel powerplant and will be available in three outputs – 100bhp, 125bhp and 155bhp. Three trim levels will be on offer: base, Trend and Limited. Prices will range from £17,450 to £25,545 ex-VAT. The new model features a class-leading 6.0 cubic metres of loadspace (the Volkswagen Transporter offers 5.8 cu m) while the long-wheelbase version hikes this up to 6.8 cu m. The SWB version is the only van in its class able to carry three Euro pallets with a one-metre height and 8x4 sheets horizontally and vertically.

Also class-leading is the width between

The ingenious roof rack system folds away when not in use

Custom is powered by Ford’s trusted 2-.2-litre common rail diesel engine

Specification Gross vehicle weight (kg): 2,700-3,325 Power (bhp/rpm): 100-155/3,500 Torque (lb-ft/rpm): 228/1,300-284/1,600 Load volume (cu m): 6.0-6.8 Payload (kg): 871-1,200 Comb fuel economy (mpg): 40.9-42.8 CO2 emissions (g/km): 178-183 Price (ex-VAT): £17,450-£25,545

Behind the wheel While the Transit’s qualities may be many and varied, it has generally been acknowledged among experts that in its lighter format, some of its rivals are a fair bit ahead, especially in the ride and handling department.

The current Transit is pretty noisy in the cab, for example, and doesn’t hold the road as well as the rival Volkswagen Transporter which is generally held to be the leader in the sector.

But the guys at Ford are well-known for their rabbit-and-hat routine both in the car and van sectors and, having driven this vehicle for the first time, I can vouch that this is a van which will finally give the Volkswagen a good run for its money.

All the 30 or so journalists at the launch event came back full of glowing praise for this Transit Custom’s car-like driveability and its good looks.

All the test vans were in Limited spec, which means that they were specced with extras that most fleet drivers won’t have.

But the basics won’t change and these items are hard to find fault with.

Gone is the old Transit driver’s seat which I always complained about as having no lumbar support and with a hard ridge that stuck into my shoulder blades. In its place is a wonderfully supportive seat that hugs

the figure from the back of the knees to the neck.

Gone is the chunky old dash, to be replaced with something that is stylish and functional and which draws its design cues from the Focus. There’s a large cup holder on each side just in the right places (not all vans have this) and a bottle bin for driver and passenger.

On our test vans, the back of the middle seat folded down to reveal a handy desk with two more cup holders, while there’s a pop-up cover in front of the driver which reveals another storage space complete with 12-volt socket and USB port.

This means you don’t have wires trailing all over the place if you want to plug in a sat-nav unit or mobile phone.

There’s even a sunglasses holder in the roof near the driver and two coat hooks at the back of the cab – nice touch.

On the outside, while I admired the Transit’s svelte lines, our test models had virtually no black plastic padding round the edges to prevent them from annoying knocks and scrapes. I took this up with the Ford designers and apparently the base model – which will be the big fleet seller – will thankfully contain such workaday bumpers. That should save a few pounds at the bodyshop.

Transit Custom has a stylish and functional dashboard The fold-down roof rack system works a treat, although of course this will be a paid-for item.

In the back, it is amazing how the designers have managed to squeeze in six cubic metres of cargo space.

Full marks to Ford for making the plastic load liner a standard fitment and I was also interested to note that the load-lashing eyes have migrated from the floor to the sides of the van, where they are much more useful. I’ve often queried the positioning of these items in the past and now most manufacturers are seeing sense in having them higher up.

But it was on firing up the 2.2-litre powerplant that the Transit Custom

revealed itself in its true glory. I can’t believe how much smoother, quieter and more refined it is than the old model.

We tested both short and long-wheelbase models, both with a half-load on board and both featuring the 125bhp engine, and even on the hilly sections of our test route, the van never felt short of power.

My co-pilot and I never had to raise our voices to be heard (unlike in the old Transit) and with power steering weighted just how I like it (a little on the firm side so you can feel what’s going on between the tyres and the road) and with the slickest of slick gearchanges, we could for all the world have been driving a car that had been pumped up with steroids.

fleetnews.co.uk/fleetvan September 2012 29

F i r s t d r i v e F o r d Tr a n s i t C u s t o m

wheelarches at 1,390mm and the side door opening at 1,320mm x 1,030mm. In addition there’s a standard bulkhead but with a hinged opening that allows loads to be poked through into a secure space under the cab floor, which means that items up to 3.4 metres long can be carried in the LWB version.

One improvement that drivers will find useful is the new ultra-bright LED loadspace lighting in the rear – most panel lighting is less than adequate at present.

There’s also an ingenious optional roof rack system that folds away flat when not being used.

Although the new Transit Custom was designed by Brits, it is being built at Kocaeli in Turkey, although some larger Transit versions next year are due to be built in Southampton. But the engines are designed and built at Dagenham, so there is still British input.

The three units have been tweaked so that more power is on offer than in the old Transit – and classleading fuel consumption is now available at 42.8mpg.

These tweaks included a punishing test regime equivalent to three million miles, including 250,000 on the road with actual fleet customers.

Exact specification for each variant is still sketchy but all models will, as in the old version, feature ESP as standard and a stop-start system.

Verdict

The Transit Custom is a triumph of form and function. We can’t praise it too highly and if its bigger brother is anywhere near as good, the Transit will cement its reputation as the fleet favourite.

30 September 2012 fleetnews.co.uk/fleetvan

Items up to 3.4 metres long can be carried in the LWB version

Custom comes in three different trims

There’s plenty of storage space in the cab

Advertisement feature

Seasonal factors see values stutter, but year-on-year values still rising

A

ccording to BCA’s latest Pulse Report, average used LCV values fell by £154 (3.6%) to £4,075 in August compared to July, although year-on-year figures remained ahead. Average age increased by a month to over 58 months while average mileage fell to 78,000.

Values increased in the dealer partexchange sector, but fell for fleet & lease and nearly-new vehicles. Performance against CAP average improved over the month by more than a point to 99%.

Year-on-year, August 2012 was marginally ahead of the same month in 2011 by just £19, although average age and average mileage had increased by 7.5% and 5.9% respectively.

Performance against CAP slipped by over four points, year-on-year.

Duncan Ward, BCA’s general manager – commercial vehicles, commented: “August is typically a weaker month for demand and that factor combined with a slight change in mix as more lower value P/X vans were sold saw values fall, month-on-month.

“However, little has changed in the wider marketplace. Buyer confidence remains fairly fragile and trade buyers are looking for a quick turnaround and often buying to order, rather than speculating on vehicles. This results in the very best retail vehicles often

“The market remains

short of good-quality used vans and this is set to continue”

Duncan Ward, BCA

making exceptional money, while vans in poor condition may struggle for attention.

“The market remains short of good quality, ready to retail used vans, and this is set to continue for some time to come.

“Writing in BCA’s 2012 Used Car Market Report, Professor Peter Cooke suggests there is a potential shortfall of some 375,000 firsttime used LCVs in the marketplace, as a result of the low new LCV volumes since the onset of the recession in 2008. The effects of this are already being felt but will hit hardest in 2013 and 2014 when replacement volumes reaching the used market from the fleet and lease sector will be exceptionally low.”

against Manufacturer Recommended Price was static at 30.58%, although average age rose slightly. August 2012 was £193 (4.1%) ahead of the same month last year – despite the average van being both older and higher mileage this year.

Fleet & lease

Nearly-new

Monthly values in the fleet & lease LCV sector fell back to £4,844 in August from £5,029 in July. It is the lowest value recorded for a year, highlighting that seasonal pressures still have a part to play and performance against CAP dropped by a point to 98.6%. Retained value

Nearly-new values fell by £234 to £10,984. 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 fell to 100.72%.

Ward added: “There is also little good news in the economy for the sole traders and small businesses who typically buy used LCVs. If business confidence is low, replacing the company van may become a very low priority and that will inevitably hit demand in the wider used market.”

He concluded: “We have been advising our sellers for some time to review their remarketing activity to ensure their vans are presented in the most saleable condition to meet the demand that is there. This message increases in importance as the usual volume uplift in September and October means buyers will have more choice than perhaps at any time this year.”

Used average values 2010-2012

Source: BCA

£5,000

£4,000

£3,000

July

June

Apl

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apl

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

Aug

£2,000

Part-exchange Part-exchange values recovered in August, improving by £81 to £2,784. CAP comparisons improved by over a point to 99.93% and have risen by over three points in the past two months. Year-on-year values remain well ahead, however, by £258 or 10.1%, with age and mileage both higher in 2012.

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

First drive Citroën Dispatch

Improved efficiency from stylish Dispatch Revised van offers better fuel economy and running costs

Behind the wheel

What’s new? n New Grip Control pack with ESC n Sat-nav and parking sensors now standard n Improved fuel efficiency at 42.2mpg

N

By Trevor Gehlcken ow that the Citroën Berlingo has grown to carry nearly four cubic metres of cargo, it has somewhat overshadowed the van on test here, the slightly larger Dispatch. It’s a shame as this van has a lot going for it in terms of stylish looks, car-like performance and low running costs.

The Dispatch has been giving sterling service to Britain’s van fleet operators since 1998 and was given a wash and brush-up for 2012 in a bid to keep it fresh.

At the front, the Dispatch has a new grille, door handles and mirrors and headlamps, while beneath the body is a fuel-saving aerodynamic panel. At the back there is now the option of a tailgate and there’s also a Grip Control pack which adds electronic stability control, traction control and Hill Start Assist, along with 16-inch Michelin Agilis tyres.

The Dispatch is offered in short and long wheelbases and with two roof heights – and there is a choice of panel van or six and nine-seater combi and crew van, plus a platform-cab for conversions.

Power is supplied by a 1.6-litre common tail turbodiesel with 90bhp or a 2.0-litre unit with 125bhp.

Our test vehicle is the fleetiest of these models – short wheelbase, with the lower-powered engine in Enterprise format – a spec which has been specifically aimed at fleet buyers with standard items such as twin

32 September 2012 fleetnews.co.uk/fleetvan

Dispatch comes with Trafficmaster as standard side-loading doors, air-conditioning, electric windows and electric/heated mirrors, rear parking sensors, steel bulkhead and a Bluetooth system. Sadly, ESC remains on the options list.

On the positive side, the Dispatch comes with a very natty Trafficmaster system as standard which acts as a sat-nav unit, a stolen vehicle tracking system and even a fleet management system if required. It also has a phone device in which drivers can speak directly with an operator at Trafficmaster HQ in case of an emergency or to answer any other query such as the whereabouts of the nearest Indian takeaway.

Fuel economy has been improved and now sits at 42.2mpg on the combined cycle. Price is £17,250 ex-VAT.

Verdict

A very stylish-looking vehicle with admirable driving characteristics and low running costs. Only the lack of standard ESC lets it down.

The great thing about the Citroën Dispatch is that while it’s a true commercial vehicle with a carrying capacity of five cubic metres, it drives just like a big car.

In the cab, while there isn’t a great deal of room for three adults, much has been made of what space there is and there are lots of handy little cubbyholes and even an overhead parcel shelf.

The seats are big and comfortable and, with an adjustable steering column, just about every size of driver should find a comfortable position.

In the rear, the double sliding doors make for easy loading while the rear door hinges unhook so they can be opened through 180º.

For operators who need more than five cubic metres, the long-wheelbase, high-roof version offers an extra 2cu m of cargo space.

Top marks to Citroën for making rear parking sensors a standard fitting but it’s a shame Citroën doesn’t make electronic stability control standard on all its vans.

The diesel powerplant fires up smoothly and quietly and the Dispatch is a joy to drive, with sharp handling and absorbent suspension.

The 90bhp unit proved up to the job – so much so that we can’t see why anyone would need to choose the higher-powered model unless carrying full loads uphill most of the time.

Specification Gross vehicle weight (kg): 2,661 Power (bhp/rpm): 90/4,000 Torque (lb-ft/rpm): 133/1,500 Load volume (cu m): 5.0 Payload (kg): 988 Comb fuel economy (mpg): 42.2 CO2 emissions (g/km): 177 Price as tested (ex-VAT): £17,250

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Read the latest issue If you missed the previous issue of Fleet Van, you can read it in full online. fleetnews.co.uk/fleetvan September 2012 33

First drive Fiat Fiorino Adventure

Behind the wheel

Fiorino tightens grip in small van sector Traction+ technology provides Fiat with extra off-road ability compared to rivals What’s new? n Electronic diff lock system increases traction n Increased ground clearance n 95bhp engine returns 65.7mpg

F

By Trevor Gehlcken our-wheel drive commercial vehicles are all well and good, but they do come at a price.

Not only are they pretty expensive to buy and maintain but rarely are they ever pushed to their full limits.

Most people who buy these vehicles simply want something that won’t get stuck in the mud and will scramble across rough ground, in which case the vehicle on test here – the Fiat Fiorino Adventure – will fit the bill nicely.

The front-wheel drive van features Traction+, which means an electronic diff lock system for improved grip in the mud, wet or snow. It works by detecting when a wheel is losing grip, and then adding traction to the other wheels, helping to force it through any sticky situation. The good news is that it takes no input from the driver to activate and also that the system doesn’t impact on fuel economy and running costs.

The Adventure also offers higher ground clearance, toughened suspension, 15-inch alloy wheels, extra

“It looks like a standard Fiorino that has been visiting the gym” 34 September 2012 fleetnews.co.uk/fleetvan

Fiorino offers a figure-hugging driver’s seat protection under the engine, sides and lower front bumper and roof bars.

In fact, this van looks a bit like a standard Fiorino that has been visiting the gym each day for a few weeks.

It weighs in at £12,395 ex-VAT as opposed to its standard brother at £10,945, but you get lots of extra kit for the money.

The 95bhp 1.3-litre diesel powerplant gives extra power over the smaller 75bhp engine, yet returns a creditable 65.7mpg on the combined cycle while emitting just 113g/km of CO2.

Part of this high fuel economy figure is down to a stop-start system which comes as standard and is reckoned to save around 16% on fuel in urban environments where this van is at its best.

Verdict

Why pay extra for four-wheel drive when you don’t really need it? This van fills a small niche but it does so with the utmost aplomb.

Here at Fleet Van we just love the Fiorino, which also appears as the Citroën Nemo and Peugeot Bipper.

It’s not only the cheeky looks and the immense practicality that we admire, but the Fiorino is fantastically comfortable with a figure-hugging driver’s seat, it’s smooth and quiet on the roads and handles nicely.

Add to that 65mpg capability and you have a strong proposition for any fleets which need small vans, although disappointingly our test week saw the fuel economy meter reading just 47.7mpg.

The puffed-up extras on the Adventure really make it stand out from its standard brother.

Our test model came in bright pillar box red and the jaunty roof rails and higher stance give it real presence.

The van is also liberally swathed in black plastic, which will help to prevent it from annoying knocks and scrapes during the course of its fleet life.

Our test model also came with the fold-down passenger seat which bumps up load volume to 2.8 cubic metres, although this turned out to be an option at £70.

There was also a dual sliding side door at £200 but we were pleased to note that electronic stability control comes as standard – it’s an option on other Fiorinos.

During our test week we managed to scramble across a couple of muddy fields and the Fiorino never felt like it was going to let us down.

We have previously tested this vehicle on a challenging off-road course and have been amazed at just how much it can do.

It obviously can’t match the outright grip of a four-wheel drive vehicle when the going gets tough, but for the majority of fleets that need a limited amount of off-road ability, the Fiorino should be a more than capable vehicle.

Specification Gross vehicle weight (kg): 1,700 Power (bhp/rpm): 95/4,000 Torque (lb-ft/rpm): 147/1,500 Load volume (cu m): 2.5 (2.8) Payload (kg): 660 Comb fuel economy (mpg): 65.7 CO2 emissions (g/km): 113 Price as tested (ex-VAT): £12,395

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