The leading magazine for fleet decision-makers
April 2012
FLEETW RLD Curious about George? ISSU E
003
ONLI N NOW E
A new interactive online fleet EV experience
All the fleet Budget analysis you’ll need
Driven
See p47 inside
Peugeot 208, revised Megane and 109g/km E-Class
10 YEARS OLD How the CO2 tax has changed fleet forever
fleetworldgroup.co.uk
THE MADNESS OF CHANCELLOR GEORGE? Is Osborne’s Budget going to hit fleets too hard? All the analysis and reaction - pages 26-34
The leading magazine for fleet decision-makers
April 2012
FLEETW RLD Curious about George? ISSUE
003
ONLIN NOW E
All the fleet Budget analysis you’ll need
A new interactive online fleet EV experience
fleetworldgroup.co.uk
Driven
See p47 inside
RECRUITMENT
Peugeot 208, revised Megane and 109g/km E-Class
For the lastest recruitment vacancies, visit fleetworldgroup.co.uk
10 YEARS OLD How the CO2 tax has changed fleet forever
fleetworldgroup.co.uk
Publisher Ross Durkin ross@eetworldgroup.co.uk Editor Steve Moody steve@fleetworldgroup.co.uk Deputy Editor Natalie Wallis natalie@eetworldgroup.co.uk Motoring Editor Alex Grant alex@eetworldgroup.co.uk Editorial Assistant Katie Beck katie@eetworldgroup.co.uk VFW Editor John Kendall john@eetworldgroup.co.uk Sales Director Anne Dopson anne@eetworldgroup.co.uk Sales Executive Darren Brett darren@eetworldgroup.co.uk Circulation Manager Tracy Howell tracy@eetworldgroup.co.uk Head of Production Luke Wikner luke@eetworldgroup.co.uk Designers Tina Ries tina@eetworldgroup.co.uk Samantha Hargreaves sam@eetworldgroup.co.uk Internet Editor Luke Durkin durks@eetworldgroup.co.uk
Published by Stag Publications Ltd, 18 Alban Park, Hateld Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email fw@eetworldgroup.co.uk web eetworldgroup.co.uk
STAG Publications
Viewpoint
Contents
Has there ever been a month like the last one for discussions about efficiency, fuel consumption and CO2 figures? What with the fuel panic, the myriad of tax tightening in the budget, petrol prices and the launch of all sorts of clever hybrid and low emission cars (have at look at our new interactive online magazine EV Fleet World via fleetworldsubscriptions.co.uk, for the latest development), perhaps only April 2002 could beat it for CO2 chatter. That’s because in that month, the new emissions-based BiK tax system came in. Before that date, it seems like we were living in the dark ages. I remember ploughing through booklets trying to ascertain CO2 figures, receiving countless updates from manufacturers over innacurate lists they had published, and confusion over wheel sizes, specifications and how they affected emissions. 10 years on, the Government has been thinking about CO2 too, and the recent Budget illustrates that the industry and carmakers have caught the Treasury a bit cold. Such has been the pace of technological change, and such has been the fleet market’s hunger for low emission cars, that the Government has had to rebalance its tax take, by considerably tightening its legislation. Some people say it’s the end of company cars. Utter rubbish. The tax system and company car drivers have always played a cat and mouse game, with one or the other at times ahead, before the other acts and claws back the advantage. In this issue, we look at how the CO2 tax has changed fleet and what will happen in the future. Whatever it will be, it will no doubt be exciting, controversial and innovative. Enjoy.
04 A month in fleet 12 Fleet World Barometer The latest research from the world of eet.
16 Comment 18 Driven Peugeot 208 // Renault Megane // Audi A1 // Vauxhall Ampera // Mercedes-Benz E300 Hybrid.
26 The Budget briefing Everything you need to know about the Chancellor’s Budget and how it might affect you.
35 A winter’s tale Should eets t winter tyres? We draw conclusions from our own experiences this year.
36 10 years on How CO2 emissions have changed the eet landscape for good.
42 In the city Alphabet’s new method of corporate mobility...
44 A learning curve Nissan’s eet boss James Douglas explains how the LEAF is opening new doors.
47 EV Fleet World 52 To buy or lease 54 Selling 58 Market Overview Contract Hire & Leasing.
60 Fleet update 65 VAN Fleet World New Combo // DFSK Loadhopper // Telematics.
74 NUM8ER5 G4ME
®
To subscribe to Fleet World visit: www.eetworldsubscriptions.co.uk
18 26 44 70
Certified circulation Jan – Dec 2011 19,619
Steve Moody Editor
April 2012
03
A MONTH IN FLEET A skip through the key news and events since the last issue of Fleet World. Sign up to our FREE digital magazine Fleet World Confidential... visit fleetworldsubscriptions.co.uk
CONFIDENTIAL
HERTZ OFFERS NEW OFFICE POOL CAR… Need a rental car quickly? Give Hertz a call and book in a £212,000 McLaren MP4-12C supercar, featuring a 3.8-litre V8 twin turbo engine, which produces 592bhp, now offered for hire through its partnership with Première Velocity. The daily rate is £1134.30, with an excess mileage charge of £5 per mile, but for rentals over 28 days this drops to only £906.30.
NEW BOSS SAYS JLR MUST BE BETTER IN FLEET
CAP NOT FOR SALE, FIRM CLAIMS
Jaguar Land Rover’s new boss has admitted the firm has got to be more consistent in the fleet market to win business. With two new entry-level models set to open the door for more corporate sales at Jaguar Land Rover, managing director Jeremy Hicks has been looking at how the firm can perform better in fleet. The firm has just introduced a lower-powered version of the existing 2.2-litre four-cylinder diesel in the XF saloon, while a front-wheel drive version of the Range Rover Evoque using a detuned diesel unit is available to order now. Hicks said: ‘We need to focus on the corporate market, which we haven’t been doing significantly. We’re working on what that means, and it has got to be credible.’ Hicks has ruled out a combined fleet sales approach from the two brands, suggesting that the two brands have to stand on their own two feet, although there may be ”synergies in a dual approach”. He also revealed that the XF would not be offered with a manual gearbox option to lower emissions further. ‘We need to have a consistent corporate sales programme for Jaguar, such as having cars in certain dealers and a dedicated person on site to offer demonstrations and information. The dealer network wants that sort of thing,’ he continued.
Vehicle information provider CAP has brushed off reports that it is up for sale, insisting it is ”business as usual”. The Leeds-based company is understood to be up for sale for a figure in the region of £150 million and an ”interested party” is already circling. CAP is owned by Guardian Media Group and private equity company Apax Partners. According to reports, the company is set to appoint bank Moelis to handle any potential sale. The news coincides with a name change for CAP’s parent company, from Emap to Top Right Group. CAP communication manager Mike Hind said: ‘Under private equity ownership, a business is technically ”up for sale” if the right price is offered at almost any point. ‘We’re used to stories like this and they never divert us from the job in hand.’
WORKPLACE LEVY LAUNCHED, BUT DOWN ON FUNDS Nottingham's Workplace Parking Levy, which came into force this month, will not raise as much money as expected, officials have admitted. The charge means businesses with 11 spaces or more will have to pay £288 a year for each, rising to £380 by 2015. But the city council has said fewer spaces have been found to be chargeable than expected, meaning it will raise £8m rather than £10m. Employers have licensed 45,500 spaces at more than 3,000 premises around the city. The city council said it still expected to meet its target over the 23-year period of the levy, generating an average of £14m a year for alternative transports systems.
04
fleetworldgroup.co.uk
Ford NEWS
inbrief
“Pharmavan” unveiled
Mondeo Business Edition lowers emissions Running a Mondeo Zetec Business Edition 2.0-litre TDCi with six-speed manual transmission built after 2 April this year will be even better news for fleets: the 140 and 163PS versions of the engine have both been recalibrated to emit 129g/km of CO2 instead of 139g/km. It means that the effects of upward changes to the taxable percentages of P11D values will be felt less by Mondeo drivers than by anyone driving a competitor vehicle which has not been recalibrated. The Mondeo Zetec Business Edition, which is based on the Mondeo Zetec but with additional high-tech features, is available as a five-door or estate. It has 17-inch alloy wheels; colour touch-screen navigation system with USB connectivity; LED daytime running lights; privacy glass; front and rear parking sensors; front and rear carpet mats; power folding door mirrors; front door scuff plates. Options include a driver assistance pack with seven smart technologies, including: Lane Departure Warning, Driver Alert and Traffic Sign Recognition. Mondeo has won a CarBuyer Car of the Year award, judged on running costs, safety, performance, owner satisfaction, reliability and comfort. It was described as “one of the best motorway cruisers in the business.”
New B-MAX offers advanced technology THE new Ford B-MAX combines unique design, unrivalled economy and among the most advanced small car technology in Europe, together with class-leading fuel economy and the lowest CO2 emissions for both petrol and diesel engines. The B-MAX’s Ford Easy Access Door System (pictured right) provides unobstructed entry and exit with hinged front doors and sliding rear doors integrating the central body pillars. The innovative B-MAX is the first European car to offer New Ford B-MAX SYNC, Ford’s voice-activated, in-car connectivity system featuring Emergency Assistance, and is the first vehicle in its segment with Active City Stop. Engines include the three-cylinder 1.0-litre Ford EcoBoost petrol engine, in 100PS and 120PS versions. Equipped with the Ford Auto-Start-Stop system as standard, the 120PS EcoBoost achieves class-leading CO2 emissions of 114g/km and fuel consumption of 57.6mpg. Two Duratorq TDCi diesel engines each offer best-inclass fuel efficiency. The 95PS 1.6-litre engine delivers CO2 emissions of 104g/km and fuel consumption of 70.6mpg.
For further information on any vehicle in the Ford range please contact the Ford Business Centre on 08457 23 23 23, email info@fordfleet.co.uk, or visit www.ford.co.uk/fordfleet
Ford News Feature // 05
Ford’s commitment to its fleet customers means working closely with them to deliver the exact vehicle specification to meet their operational needs. The “Pharmavan” is a modified Transit developed in association with AAH Pharmaceuticals, the UK’s leading distributor of pharmaceuticals and healthcare products, which has taken delivery of 270 Ford models to add to its 800-strong van fleet. It keeps sensitive pharmaceuticals at the correct temperature during delivery, using an air-conditioned load area in a Ford Transit 300 LWB. Geoff Wright, head of AAH corporate services, said: “Most pharmaceutical products have to be kept at a steady ambient temperature. Using a fully refrigerated vehicle with dual compartments for this role comes at a high price, including increased fuel consumption, running costs and CO2 emissions. “When the temperature in the Pharmavan’s load bay dips below 10 deg C, the heat kicks in. When it nears 25 degrees, air-conditioning brings the temperature down. The system is only in use when required, making it extremely costefficient and easy to operate.”
A MONTH IN FLEET A skip through the key news and events since the last issue of Fleet World. Sign up to our FREE digital magazine Fleet World Confidential... visit fleetworldsubscriptions.co.uk
CONFIDENTIAL
AGE OF BIG BANK PRICE-DRIVEN LEASING OVER, FIRM CLAIMS With banks retreating from the leasing sector to concentrate on core activities, it will dilute the ‘relentless downward pressure on prices’, according to the managing director of Motiva Group. Actions, such as the decision of the Royal Bank of Scotland to pull out of the leasing market, gives smaller, independent players more chance to grow, the Stoke-on-Trent-based rental, leasing and fleet management firm claimed. Managing director Peter Davenport said: ‘Lombard and RBS have been looking for a buyer for Lombard Vehicle Management (LVM) for about three years without much success. ‘I think that’s partly because LVM was so price-driven, which meant it ran at profits that weren’t attractive
to potential buyers – especially in this climate. ‘As banks retrench to what they see as their core offer, their relentless downward pressure on prices becomes diluted. ‘Price will always be a critical factor, and competition will continue to be fierce, but over the next few years I can see there being a bit more leeway to sell on value rather than just price. ‘Anything that independents can do to retain or grow margin is a help in a downturn, and as long as we combine that with services and products that genuinely add value for the customer then everyone benefits.’ Motiva operates a fleet of more than 4,000 vehicles and has access to a rental fleet numbering in excess of 25,000 vehicles.
PSA REVEALS ADDITIONS TO NEW THREE-CYLINDER ENGINE FAMILY Peugeot has announced it will grow its new family of three-cylinder engines to include an optional start/stop system next year, bringing all petrol units under 100g/km, with a turbocharged version to follow shortly afterwards. Developed in-house, and not shared with any other manufacturers, PSA's new three-cylinder petrol and diesel engines debut on the Peugeot 208, which is an average of 110kg lighter than the 207 it replaces from June. The first 99g/km 1.0 and 104g/km 1.2-litre petrol units will be available from September. Start/stop will be introduced as an option on the 1.2 starting in early 2013, bringing CO2 emissions down to 95g/km, but will not be offered on the 1.0-litre petrol engine. All of the car's e-HDI diesel units are fitted with start/stop.
QUARTIX BREAKS RECORDS Quartix sold and installed a record number of telematics systems in 2011 and is forecasting further strong growth in 2012. Just under 20,000 vehicle tracking systems were supplied in 2011 – an increase of 125% over 2010 – and brought the total number of systems installed by Quartix to more than 50,000. As a result, pre-tax profit increased by 10% to £1.8 million. Managing director Andy Walters said: ‘Telematics is entering its most exciting phase yet as the technology becomes more widely deployed in the commercial market and as it gains rapid acceptance in the private insurance sector.’
ProFleet2 One day, everyone will expect to have this information
08
fleetworldgroup.co.uk
BMW OLYMPIC FLEET OFF AND RUNNING
INBRIEF
BMW has delivered the first 40 vehicles for the Olympic and Paralympic Games fleet. The newly-liveried vehicles will form part of the full fleet which will be used by the London organisers. The fleet consists of electric, diesel, and hybrid cars, as well as a range of motorcycles and bicycles. The firm is also hoping that the vast majority of cars will be Euro 6 compliant – two years before the standard is enforced. Tim Abbott, managing director of BMW UK, said: ‘BMW’s Olympic fleet needs to be varied to deal with the complex operational demands of the Games time effort. We were selected as a partner based on our ability to provide such a diverse fleet that could achieve the challenging emissions threshold as set by LOCOG. ‘The Games fleet will include our class leading efficient diesels, hybrids, electric vehicles and even bicycles. We are extremely proud for our cars to be involved in the London 2012 Games and are excited about seeing them in full service this summer in these eye-catching designs.’ Among the first cars that have now arrived are the 520d EfficientDynamics and the 320d EfficientDynamics, both of which will be active throughout the course of the Games.
HOWKINS EXPANDS ROLE Vauxhall/Opel has added responsibility for European fleet accounts to the role taken up by Vauxhall’s former head of fleet sales, Maurice Howkins. Howkins, relinquished the role of Fleet Sales director at Vauxhall last year, and moved into a customerfacing role overseeing the company’s largest UK fleet accounts. Now he has been appointed European Corporate Sales director in a move that sees him establishing close links with some of Opel’s largest European prospects, and working with the major leasing companies across Europe.
>
STEWART FOR SKODA Alasdair Stewart has been appointed Skoda UK Brand director, effective from May 1 2012. Alasdair succeeds Robert Hazelwood, who will move to Volkswagen Passenger Cars as Brand director, also on May 1.
>
Sally Dennis has been appointed as National Fleet Sales manager at Mercedes-Benz. Sally has been tasked with managing the strategic accounts, with fleets of over 300 vehicles for key blue chip brands, as well as strengthening the relationship between Mercedes-Benz and the contract hire and leasing industry.
KIA LOOKS TO IMPROVE FLEET CUSTOMER CARE Kia is trialling a new initiative among its dealers to improve the way company car drivers are treated, including paying them bonuses if feedback indicates a positive experience. As part of Kia’s aim to be regarded as a serious fleet player, it wants all its dealers to embrace visits from company car drivers and offer a welcoming, first class service to them. The initiative is currently operating with the new Optima D-segment saloon, although Kia may expand the initiative to other models if it proves successful. John Hargreaves, Kia’s head of fleet and remarketing, explained: ‘We want to ensure that when a company car driver comes into a dealership, they will be extremely well looked after, even if they are not going to buy a car from that dealer. In the past, company car drivers may have been met with a frosty reception. ‘We will pay a dealer a reward for treating the customer properly, such as offering them a test drive and presenting the vehicle well.’ Hargreaves will receive feedback from customers who will be canvassed on their experience, allowing a reward payment to be made if all criteria have been met by the dealer.
DENNIS JOINS MERC
>
TELOGIS CORRECTION In February’s FW, we incorrectly stated that software and mapping were required for Telogis’ telematics solutions. Telogis is a cloudbased company, so no software is required on its customers’ PCs. For more information on Telogis, please visit www.Telogis.co.uk
April 2012
09
Making sense of the surveys
We've pulled together the pertinent points from the myriad of research done in the fleet industry this month to give you a clearer view of what's really going on...
in association with
SMARTPHONE USE INVESTIGATION INTO THE USE OF SMARTPHONES AND SOCIAL NETWORKING WHILE DRIVING As many as 8% of drivers are using smartphones at the wheel and some are even announcing it proudly on twitter, according to road safety charity the IAM. This is equivalent to 3.5 million licence holders. The IAM’s six of the worst dangerous driving tweets: @bellyki Here lies Isobel. She perished while simultaneously eating a whole packet of Percy Pigs, driving down the M3 and tweeting about it. @sacksy1 If I’m ever in an accident while driving and tweeting and you're the first person to arrive on the scene, grab my phone and press ”Send.” @GSpace7 Multi-tasking: Driving, Tweeting & Brushing my hair. I do it. If I die remember me like John Lennon. @A_Ishaq who said guys can’t multi-task... tweeting @ watching match n driving wow lol @tchudson Im driving, tweeting, smoking, talking and listening to @BBCR1 Ill listen to it via the #beats when I stop breaking the law. Safe! @Beckstah You wouldn't think I was actually driving on the motorway the amount I’ve been tweeting. Better concentrate on the road. Good day, twitter
12
fleetworldgroup.co.uk
IAM research shows that using smartphones for social networking while driving is more dangerous than drink driving or being high on cannabis. It slows reaction times by up to 37%. Source: IAM
STATE OF THE NETWORK RESEARCH INTO THE FUNDING AND MAINTENANCE OF THE UK ROAD NETWORK Alan Mackenzie, Chairman of the Asphalt Industry Alliance said: ‘These disastrous figures result from decades of underfunding and enforced short-term planning, frustrating the efforts of local authority highways engineers to carry out the preventative work which they know has needed to be done.’
• 1.7 million potholes in England & Wales • Nearly £800 million annual funding shortfall - England & Wales • £5.3 million per authority annual highway maintenance shortfall (average in England)
Source: Asphalt Industry Alliance
• One in five roads with residual life of less than five years • 11 years to clear backlog (in England) • 10% increase in public complaints • Nearly £10 billion – estimated ”one-off” cost to get roads back into reasonable condition Source: Chargemaster
ACFO A SURVEY ON SALARY SACRIFICE TAKE-UP AMONG BUSINESSES 20.4% No interest in such a scheme.
26.4% Considering analysing the viability of car salary sacrifice.
20.3% Have a salary sacrifice scheme in place.
32.7% Currently evaluating a scheme.
ACFO chairman Julie Jenner said: ‘There has been a great deal of talk and media coverage of salary sacrifice schemes as a major development in the UK fleet market and, not surprisingly, providers talk up the market and suggest that take-up has exceeded expectations. ‘However, our survey reveals that take-up would appear to be significantly below that indicated by many of the providers of such schemes.’ Source: ACFO
ACCIDENTS RESEARCH INTO WHEN INSURANCE CLAIMS HAPPEN • Moving forward 25% • Not known 18% • While parked 40% • Reversing 10% • Stationary 7% Andy Cuerden from Interactive Driving Systems said: ‘We believe that all drivers must exercise greater care when reversing/backing, especially fleet drivers visiting customer sites and homes as part of their daily activities’. ‘Because of the relatively low impact speed, many people don’t regard reversing/backing as a significant hazard. However, reversing/backing and slow speed manoeuvring incidents make up a large proportion of fleet collision costs and risks’. Source: Interactive Driving Systems
• for the latest daily news from the fleet industry, visit www.fleetworldgroup.co.uk
April 2012
13
COMMENT
Camels, cars and CO2 The Insider Our tame fleet manager ponders how things have changed since CO2-based BiK tax was introduced a decade ago.
‘ The CO2 system removed the incentive to drive extra miles.’
14
fleetworldgroup.co.uk
In the old days, one’s wealth was dictated by the number of cows or camels one owned. Today’s drivers still focus on the perceived number of horses under the bonnet though, rather than understanding that carmakers have indeed made less into more. I’m finding it difficult to convince drivers that yesterday’s 2.0 litre performance is today’s 1.6. But in fact the easiest way to persuade any company car driver to downsize is to make them aware of the current taxation system. Now in its tenth year, and several incarnations on from the original, this must surely be the fleet manager’s favourite iteration in recent decades. I like the current taxation system because really the hard work is done for us fleet managers. Instead of focusing on the amount of mileage to be driven in a year, or how low one can get the P11D value, there is a direct correlation between efficiency and taxable benefit. It’s easy for drivers to understand how they can reduce their tax through sensible choices and easy for us to report on. The previous system relied upon driving additional business mileage to reduce one’s tax burden – 2,501 or more in a year to pay at 25% instead of 35%, and more than 18,000 to get the rate down to 15%. So a fleet manager trying to reduce company fuel and other running costs was up against it as the driver was more intent of getting into a lesser tax band by driving further. Despite denials that people would wantonly drive huge additional mileage, I certainly saw evidence of it in previous fleets I looked after and I recall one finance director who gleefully submitted a business mileage of exactly 2,502 miles each year, with the appropriate back up to support it. Not that the 2,502 claimants were the real worry, compared with those racking up 18,000 miles a year. But the effort involved
in reporting all these mileages was much more difficult than submitting a simple published CO2 value, once we had adopted revised payroll software. The CO2 system removed the incentive to drive extra miles as well as being more environmentally friendly and, I suppose, to an extent reduced congestion – not that I noticed. In 2002 when the 15% threshold was 165g/km, our fleet’s average was 190. Today, the current fleet’s figure is 135, pretty much the national average but a significant reduction over ten years. When the CO2 idea was mooted we had sufficient pre-warning to educate drivers who were able to start ordering lower emission vehicles prior to the start of the regime, and I recall that for most of our fleet, drivers actually enjoyed a reduction in company car tax over the previous scheme, so that was a positive straight away. For those who didn’t want a low CO2 car, and where the option was available, the answer was to switch to a cash allowance and buy a private car. We did see quite an increase in the grey fleet which brought its own headaches in turn. Responsibility for the employee was still there but without the same controls as for a company car, so new solutions had to be sought in that area. Of course another side effect of the CO2 regime was the massive switchover to diesel from petrol, the downside being the 3% tax penalty and widening the pence per litre cost differential between the two main fuels. Further back, I seem to recall there was a taxation system combining engine size and list price of the car, replacing an even older system where buyers got the purchase price as low as possible to reduce taxable benefit. Tax officers must have shaken their heads at the creative purchase prices submitted for cars in those days. I must be older than I thought.
I am Giulietta. If you are going to talk about me,
TEST ME.
From £249 per month,* business users only.
SAFETY
A L FA D. N . A .
EFFICIENCY
Awarded a prestigious five-star Euro NCAP rating. The safest car in its class†.
Unique Alfa D.N.A. driving switch with 3 driving modes – Dynamic, Natural, and All-weather to suit all conditions.
The Alfa Giulietta 1.6 JTDM-2 105 bhp Lusso: 64.2 mpg and CO2 114 g/km
V I S I T W W W . A L FA R O M E O. C O. U K / C O R P O R AT E O R C A L L 0 8 4 4 6 6 2 3 6 2 8 F O R M O R E I N F O R M AT I O N . W I T H O U T H E A R T W E W O U L D B E M E R E M A C H I N E S.
alfaromeouk
@alfaromeouk
Model shown Alfa Giulietta 1.6 JTDM-2 105 bhp Lusso at £20,440 OTR including Ghiaccio White special paint at £490 including VAT. Range of official fuel consumption figures for the Alfa Giulietta range: Urban 26.2 – 53.3 mpg (10.8 – 5.3 I/100km); Extra Urban 48.7 – 76.3 mpg (5.8 – 3.7 I/100km); Combined 37.2 – 64.2 mpg (7.6 – 4.4 I/100km). CO2 emissions 177 – 114 g/km. †Source Euro NCAP rating. *Above rental based on Alfa Giulietta 1.6 JTDM-2 105 bhp Lusso including Ghiaccio White special paint at £490 on Contract Hire payment profile of 3 rentals in advance (equivalent to £747) followed by 35
monthly rentals of £249. Rentals shown above exclude VAT and maintenance. Rentals are subject to VAT at statutory rate based on 10,000 miles per annum. Excess mileage charges apply. Vehicles must be registered with Alfa Romeo Contract Hire by 30th June 2012. Offer subject to status. A guarantee/indemnity may be required. Offer correct at time of going to press and may be varied or withdrawn at any time. Subject to availability. Alfa Romeo Contract Hire, 240 Bath Road, Slough SL1 4DX.
COMMENT
Independents’ day? Curtis Hutchinson When it comes to SMR you have a choice between franchised and independent workshops, says Motor Trader editor Curtis Hutchinson.
‘Cost control became at the very heart of most businesses.’ 16
fleetworldgroup.co.uk
One of the few positives to emerge from the economic downturn is a greater appreciation of value for money. Rewind four years and, with the possible exception of bankers and politicians, cost control became at the very heart of most businesses. Indeed the fleet management sector has long prided itself with the sourcing of vehicles according to their whole life costs. Today those finely honed skills are exactly what's needed to make it through these straitened times. As a fleet boss one of your major expenses is SMR. Garage time is expensive, inconvenient and takes your drivers off the road. So maybe it's time to consider the two main options available to you: franchised workshops at your local main dealers, or independent garages. Firstly let’s clear up some myths. Your new cars do not need to be serviced or repaired in franchised workshops to safeguard their warranties. Times have changed, so, thanks to the EU, have the rules and regulations. The best independents should be able to prove to you that they can repair to the same standards as their franchised counterparts and use bona fide original parts to safeguard manufacturer warranties. Indeed many of them have provided excellent fleet service for some years by investing heavily in the necessary equipment and technician training. So just how good are the cost savings? I put that question to Gary Killeen, Fleet Services Commercial Leader at GE Capital UK, the fleet management specialist. He’s noticed a growing trend towards fleets using independents, attracted by their high standards, low labour rates and ability to source parts cheaper than franchised dealers. ‘It could mean a typical £30,000 saving based on a 500 vehicle fleet covering an average 10,000 business miles per annum,’ he said. There is, of course, a caveat. While franchised dealer workshops share a degree of
consistency, thanks to the massive investment by car manufacturers and their retailers, independents can be a disparate bunch ranging from under the arch sole traders to high profile national networks. This is where it is important to check out credentials. The starting point here is accreditation from Motor Codes (www.motorcodes.co.uk) who regulates and enforces the Service and Repair Code, a national scheme, with teeth, which currently oversees 6,600 approved independent and franchised garages. The national chains have also sharpened up their offerings to go beyond fast fit consumables to get a piece of the fleet action. Probably the best known name here is Kwik Fit Fleet which has significantly grown its share of fleet servicing and MoT work as vehicles cycles get extended. Another equally well known national brand actively targeting SME fleet work is Halfords, with its chain of 250 Autocentres. The business has grown rapidly after recently buying the Nationwide Autocentre chain and plans to have 400 outlets in 2015. The Fleet Support Group uses a network of 500 independent garages, all vetted and monitored, to offer fleets nationwide fixed price vehicle servicing. Choice is not a problem. Finally, it's worth considering that a manufacturer's stamp in service books is no longer a gilt edged guarantee of higher residuals, unless the cars in question have premium badges. That’s the view of Tim Hudson, vice chairman of the National Association of Motor Auctions, and he should know as he runs his own auction business. ‘What is essential is that company cars and vans have a documented service history across their fleet life to ensure top residual values are potentially achievable,‘ he said. When it comes to sourcing your SMR needs, it's a buyer's market and you're holding the purse strings.
inspired offers
INFINITI M35 HYBRID STRONG FIGURES DRIVE THIS CAR (Such as 0-62mph in 5.5 seconds, 40.9 MPG, 364 PS, 159 g/km of CO2, BIK Tax Band 22%*)
The Infiniti M35 Hybrid is the most powerful model in the Infiniti M range. It’s also the most efficient, which makes it the perfect vehicle for the fleet and business market. This is luxury and efficiency without compromise.
To arrange a demonstrator, or to request contact from Infiniti Fleet call 0800 285 1711, or email infiniti.fleet@infiniti.eu
Cars are available in limited numbers for immediate delivery.
infiniti.co.uk/m/hybrid
NOW AVAILABLE FROM
Infinitieurope 0800 285 1711
PER MONTH (EXCL VAT)
*Tax year 2012/2013. **BUSINESS USERS ONLY. All prices exclude VAT. Prices valid subject to no change in manufacturer prices, residual values or interest rates. Contract Hire is available subject to status and conditions on eligible vehicles ordered before the 30th April 2012. Guarantees and Indemnities may be required. All examples based on 3+35 profile 10,000 miles per annum on a non-maintained contract. Further charges may be made subject to mileage and condition. Excess mileage will be charged at 2.3 pence per mile (excluding VAT). Subject to vehicle being returned within mileage and in good condition. Additional rentals in advance may be required. Contract Hire Finance provided by Arval UK Limited, Windmill Hill, Swindon SN5 6PE. Models shown for illustration purposes only. Information correct at time of going to print and subject to change without notice.
Model displayed: Infiniti M35 Hybrid. Official fuel economy figures for the Infiniti M35 Hybrid in mpg (l/100 km): urban 31.4 (9.0), extra urban 50.4 (5.6), combined 40.9 (6.9). CO2 emissions: 159 g/km.
DRIVEN
Peugeot 208 Has Peugeot reincarnated a legend with the 208? Alex Grant finds out. SECTOR Supermini PRICE TBC FUEL 48.7 – 83.0mpg CO2 87 – 135g/km Since the 205 of 1983, Peugeot’s 200 Series has become a backbone of its range, with their mix of chic French styling, brawny hot hatches and affordability drawing in a huge spectrum of buyers. Such is the success of the carmaker’s B-segment offering that at 7.8m sales not only is the 206 the biggest selling Peugeot ever made, but it’s one of the ten best-selling cars in the world. The 207 lost a little of that momentum, chubbier, not as pretty as its predecessor, and without the GTI halo. But its replacement, the 208, looks well positioned to breathe some energy back into the series – with production set to be ramped back up to 206 levels. It has big boots to fill. But it sounds promising. It’s shorter than the old car and an average of 110kg lighter, good for reclaiming some 205-esque agility and adding to a range where all diesels and, once the start/stop system is introduced next year, two petrols come under 100g/km. It’s also far better styled than the 207. There’s a little of the previous generations’ DNA carried forward into its silhouette, but the short bonnet and upright nose give it cute, compact proportions. Ultimately it’ll come down to individual taste but, against less adventurous rivals, the neatly creased body lines and sculpted ”spine” over the bonnet and roof give it a real sense of identity.
18
fleetworldgroup.co.uk
This extends inside, where the cabin is spacious and now close to the 508 with a huge glovebox and new touch-screen infotainment system. More intuitive than the 508’s, it will gain useful app downloads during 2013, similar to the system offered in the new Yaris. It’s the driving position that really impresses though. The dials are perched on the top of the dashboard, just below eye height, which allows the thick-rimmed small oval steering wheel to sit low without obscuring the view of the dials. It’s a layout which makes the 208 feel sporty from the off. But for all that promise, the 208 doesn’t quite deliver when it comes to driving – it’s not as agile as a Fiesta and, despite sharp and direct steering responses from the small wheel, the car has a tendency to squeal its low rolling resistance tyres while cornering and often ends up pushing wide. This isn’t helped by some of the engine options. The three-cylinder petrol engines won’t be available from launch in the UK, and the 120bhp 1.6-litre unit feels a generation behind the latest turbocharged downsized units found in rivals. It needs to be worked hard, lacks a sixth gear and sounds unrefined under load. There’s better news elsewhere though. The 1.2-litre three-cylinder petrol is great – ultimately slower but with a much punchier
power delivery. With the start/stop system it’ll drop to 95g/km, this is the one to have. The torquey 1.6-litre e-HDI diesel is fun too, and while it can’t sharpen the handling it does at least make the car entertainingly willing to chuck around. And even the 87g/km 1.4-litre e-HDI with its electronically controlled manual gearbox outclasses the big petrol – the ponderous gear changes could be overlooked for its 78.4mpg urban economy and convenience of losing the clutch pedal in congested areas. So a 205 this isn’t – but then neither was the 206, and that sold in its millions despite a plasticky interior, wooly handling and offset pedals and steering wheel. The 208 builds on the 207’s improvements and packages them in a sharper bodyshell. With low running costs to complete the picture, ultimately it doesn’t really matter that it’s not the best drive in its segment.
verdict Peugeot has injected some style and excitement back into its B-segment offering with the 208, and with female buyers targeted it’s become an affordable and stylish car. But drivers expecting the weight reduction to evoke memories of the nimble 205 will find the driving experience a little lacking.
THIS CHANGES EVERYTHING NEW CITROËN DS5 WILL REDEFINE THE D-SECTOR WHEN IT GOES ON SALE THIS MONTH. FIND OUT WHY INSIDE...
NEW CITRO Ë
N DS
5 THE REFIN ED, R EDEFI NED Mark
“VERY S PUSHE TYLISH, DS 5 HAS D CITR O Ë N UP DESIR A B ILITY S THE CHRIS JOYCE CALE” , OPE RATIO N
ing th DS Lin e third add it e appro , New Citr ion to Citro o a ën’s ën D ch t histor y of th o the prem S5 offers critically a ccl a iu e techn ology classic DS m executiv fresh and m aimed mode e car, with s odern l e tunni ng de but incorp voking the o sign a nd en rating new ginee ering.
S DIR E FLEET CTOR, HIRE LTD
“CI DOWN TROËN HAV EL TH OTHE E GAUNTL AID R MAN ET TO TO TR UFACTURE Y AND R WITH COME S ANYT UP HING TED S AKYI, S FLEET IMILAR MAN ” AGER
, TUB E LINE S LTD
“NEW DS5 QUAL PROVIDES ITY TH THE A T CI HAVE WORK TROËN ED HA TO DE RD LIVER” ADAM SLAD E,
“DS5
VEH RELAT IONS ICLE SUPP HIP E LY LEASE XECUTIVE , PLAN UK LT D
OFFER SA FROM CHANGE TH DULLBUT-F E USUAL UNCT OFFER I N G S FRO IONAL OTHE MS R MAN UFACT OME URERS ALAN ” SENIO R, VIP DATA “TO S AY IS AN DS5 IS DIFF E UNDE RSTAT RENT EMEN T” MART IN
WARD , CAP
DYNAMIC PERFORMANCE An executive car should offer the perfect balance of performance and serene long distance comfort. New Citroën DS5 satisfies with a range of powerful, yet efficient, drivetrains comprising of three HDi diesels, including one with Citroën’s e-HDi micro-hybrid system, and a THP 200 turbocharged petrol. All units return CO2 emissions of under 160g/km, with the efficient e-HDi 110 boasting an ultra-low 114g/km figure.
STYLE New Citroën DS5 is an icon of exclusivity and refinement, blending flowing coupe-esque lines with the assertive on-road presence and practicality of a large sportwagon. At each corner, muscular wheel arches give the car a wide, aggressive stance and wrap around intricately designed alloy wheels. And that intricate design continues inside, where the DS Line’s trademark watchstrap style seats come trimmed in fine grain Club leather. In keeping with its aviation-inspired style, DStyle and DSport models also feature a Cockpit roof with switches arranged on twin centre consoles, one set low and one above the driver’s head and a 3-part glass roof with electric sunblinds.
INTELLIGENT DESIGN Although New Citroën DS5’s cabin offers a driving position worthy of a Gran Turismo Coupé, this isn’t a car that compromises on practicality. There’s a sizeable 468-litre boot, space for five adults in comfort and four full size doors offering hatchback practicality. Every inch of its interior is designed to be as user-friendly as possible. The twin centre consoles allow each function to be given its own button, putting the driver in full control without needing to cycle through menus. Important dashboard read-outs are projected, in colour, onto the head-up display, and the options list includes a 10-speaker Denon audio system and on-board WiFi among its technological marvels.
SAFETY New Citroën DS5’s technological innovation goes beyond its generous level of standard equipment. The model boasts a full five star Euro NCAP crash test safety rating, and was awarded a 97% score for its Safety Assist systems by the independent agency. This first class safety package includes lane departure warning, automatic high beam to give the clearest view of the road ahead and Citroën eTouch, which gives emergency assistance and support 24 hours a day, seven days a week.
CITROËN BUSINESS FEATURE
DIESEL HYBRID TECHNOLOGY THAT WORKS... CITROËN CONTINUES TO LEAD THE WAY IN INNOVATIVE TECHNOLOGY. FROM THE LATEST e-HDI ENGINES TO THE EFFICIENT 3-CYLINDER PETROL, QUALITY, RELIABILITY AND INNOVATION RUN THROUGH THE DNA OF CITROËN’S MODEL RANGE... AND NOWHERE IS THIS MORE EVIDENT THAN THE GAME-CHANGING NEW CITROËN DS5. AVAILABLE with the world-first diesel-electric hybrid system – Hybrid4 – offering refined cruising, zero emission urban driving and stunning 200hp performance, New DS5 combines the best of both worlds: an ultra-efficient HDi diesel engine alongside an electric motor for added performance or zeroemission driving. Powered by a 2.0-litre 163hp HDi diesel engine and a 37hp electric motor, the Hybrid4 powertrain offers a potential 74.4mpg, while emmiting just 99g/km of CO2, yet gives company car drivers 200hp performance when they need it. With the diesel engine powering the front wheels, and the electric motor the rear wheels. New DS5 offers a four-wheel drive mode, for added traction when required. A state of the art drive-by-wire Power Train Management Unit can determine the best use of the two motors to maximise fuel efficiency, switching from all-electric, to alldiesel, or a combination of the two. Cleverly, when the driver lifts off the accelerator, the battery of the electric motor recharges ensuring a ready supply of clean power when needed. This groundbreaking technology, offering up to 30% better economy, also uses all of Citroën’s proven fuel saving measures including Stop & Start, to further limit emissions.
DS5 HYBRID4 IN DETAIL BATTERY PACK ELECTRIC MOTOR (REAR-WHEEL DRIVE)
POWERTRAIN MANAGEMENT UNIT
GEAR REDUCER
. BRILLIANTLY 6-SPEED AUTOMATED CLUTCH MANUAL GEARBOX DIESEL ENGINE HDi 160 (FRONT-WHEEL DRIVE)
LOWER EMISSIONS ELECTRIC All-electric C-Zero (pictured below) was one of the first cars to qualify for the Government’s £5,000 electric car grant. It also qualifies for zero-rated VED and business drivers will pay no BIK tax. C-Zero also promises range of up to 93 miles. HDi FOR those who cover greater distances, Citroën’s range includes 9 models with CO2 emissions lower than 100g/km. e-HDi CITROËN’S e-HDi micro-hybrid technology combines an efficient diesel engine with regenerative charging to reclaim energy lost in braking. DIESEL HYBRID NEW Citroën DS5 features Hybrid4 – the world’s first diesel-electric hybrid powertrain.
POWER FLOW
STOP&START SYSTEM
HYBRID4 BENEFITS
HYBRID4 DRIVING MODES
No 3% benefit-in-kind uplift applied to conventional diesel models, meaning a BiK tax rate of only 10%.
AUTO: Automatically switches between the diesel engine and the electric motor to optimise fuel consumption.
With emissions of 99g/km, New Citroën DS5 Hybrid4 incurs no VED, London Congestion Charge, and 100% Writing Down Allowance.
ZEV (ZERO EMISSION VEHICLE): When driving less than 60km/h (37.5 mph), it only uses the electric motor.
In urban electric-only mode, DS5 Hybrid4 is silent and has zero tailpipe emissions.
4 WHEEL DRIVE: To enable optimum traction, the front wheels are powered by the combustion engine and the rear wheels by the electric motor. This is ideal for difficult terrains with low grip (deep snow, mud, sand etc).
High performance with excellent driveability. Simplicity of use and adaptability through four operating modes: ZEV (Zero Emission Vehicle), Four-wheel drive, Auto and Sport.
SPORT: For a quicker response and speed, it uses the electric motor together with the combustion engine ("boost" effect). Acceleration, overtaking and change in speed also becomes more dynamic. CITROËN BUSINESS FEATURE
ENHANCING DS LINE COMING from a long ancestry of design-led Citroën models, the aircraft-inspired New Citroën DS5 executive car is the third addition to the desirable DS Line, and offers a powerful mix of performance and technology. With form closely following function, New DS5 enhances the existing DS3 supermini and DS4 high-stance 5-door coupé models in the stunning DS Line. New DS5 engine choices include a 200hp turbo petrol, efficient 115 and 163hp HDi diesel units and the revolutionary Hybrid4 diesel-electric powertrain, with CO2 emissions from just 99g/km.
CITROËN DS3. The first in the DS line, DS3 makes use of dynamic design, impressive performance and huge potential for personalisation. The immediate desirability from the innovative styling and finish options is only increased with the e-HDi models keeping emissions figures in sub-100g/km territory.
CITROËN DS4. New Citroën DS4 proves there's no contradiction between sporty and purposeful, elegant and curvaceous. Starting with a spark of innovation, uniquely non-conformist, it mixes urban prescence with coupé grace, luxurious quality with smart flexibility.
CITROËN DS5. New Citroën DS5’s advanced Hybrid4 technology combines a 163hp diesel engine with a 37hp electric motor, delivering 200hp, four-wheel drive capability, emission-free electric power for the city and an acceleration boost function for the open road with CO2 emissions from just 99g/km.
FOR MORE INFORMATION, CALL US ON 08457 940 940 OR EMAIL FLEET@CITROENCONNECT.CO.UK
DRIVEN
Renault Megane Updated Megane’s better value and looks make it a strong fleet package, says Alex Grant. SECTOR Lower medium PRICE £16,275 – £26,025 FUEL 34.4 – 80.7mpg CO2 90 – 190g/km Renault’s growing electric vehicle range might be stealing the limelight, but the changes are just as important, if not moreso elsewhere in its UK product offering. Fresh from a massive cull last December, the remaining parts of Renault’s range are being rapidly updated to emphasise the brand’s ‘‘va-va-voom” character, and the Megane is the latest to come under the knife. Though not as revolutionary as the likes of the Twizy, it has a vital role to play in Renault’s range. Megane is the carmaker’s biggest-selling car, and the outgoing model has had a job on its hands reclaiming the trust lost by its reliability-plagued predecessor, a car frequently found listed as a top offender for warranty-related faults. Thankfully for Renault it’s performed well. The carmaker claims a 40% reduction in first year reliability issues compared to the old car, and there’s a noticeable improvement in materials throughout. That’s a good basis for netting buyer interest, but prioritising quality cost its much-needed distinctiveness, held back further by competitive but ultimately unremarkable fuel consumption figures. These are both issues solved here. Renault has updated the styling with a few subtle panel changes, and the end result is a car that’s become much more modern and stylish in line with the rest of the segment.
There’s also a well-equipped entry-level trim to bring the start price down. But the most notable cost reductions come from under the bonnet. The refresh introduces the first of Renault’s downsized petrols, the 1.2-litre TCe 115, which replaces the less powerful 1.6 16v in the outgoing car. Rivals may have beaten Renault to the post, but this is a capable offering. At 53.3mpg it offers a 700-mile range, emitting 119g/km CO2, which should make a competitive alternative to a more expensive diesel. Though it lacks the low-down pull of Ford’s 1.0 EcoBoost Focus, it’s lively at high revs and doesn’t sound strained when it gets there. Also new is the 1.6-litre dCi 130, introduced in the Scenic last year. It’s a great fit in the smaller car, too, purring through the revs with almost no clatter and offering petrol-like progressive power delivery from under 2,000rpm. Fuel economy is impressive at 70.6mpg, while CO2 emissions of 104g/km put a wide margin between this and similarly-powered rivals. But the headline-grabber here is the revised 1.5-litre dCi 110, which now shrinks to a class-leading 80.7mpg and 90g/km regardless of body style, in turn resulting in a 1,060mile range – the highest of any car on sale. Predictably, Renault sees the associated cost-savings making this a big-seller in the fleet segment, where the engine is expect-
ed to be fitted to 55% of cars. The only cost is refinement – this isn’t the noisiest diesel on sale, but it predictably feels a generation behind the dCi 130 in terms of power delivery and engine clatter. It corners well, too. Behind the brilliant Renaultsport cars, it’s easy to forget how well the standard car holds the road. Ride quality is good, the brakes and steering feel suitably mechanical and the front wheels respond confidently to driver inputs. The range-topping GT Line hatchback and sport tourer also gain Coupe-derived suspension settings, resulting in even better handling. Now backed by Renault4+, the four-year roadside assistance, servicing, finance and warranty package as a sign of its quality, Megane has a lot going for it beyond the practical reasons to buy. Ironically, it’s actually likely to be cheap enough to give Renault’s own electric vehicles a run for their money.
verdict The outgoing Megane had plenty to offer, but perhaps didn’t shout about it loudly enough. Its replacement boasts best-in-segment economy, improved quality and more upto-date styling with an attractive warranty and assistance programme. This should make it stand out against a tough pack.
April 2011
19
DRIVEN
Mercedes-Benz E300 BlueTEC Hybrid Mercedes-Benz should be onto a winner with its low-CO2 E-Class, says Alex Grant. SECTOR Executive PRICE £43,000 – £46,000 (TBC) FUEL 67.3mpg CO2 109g/km The executive segment will become crowded with hybrids over the next 12 months. It’s an area traditionally dominated by Lexus and, more recently in the UK, Infiniti. But now the German luxury brands are coming in with new models there’s plenty of choice entering the UK market. Traditionally, though, the business case for hybrids has been harder to understand. Lexus and Infiniti set out their stalls based on global demands, particularly for regions such as the United States and Japan where a focus on air quality has made hybrids the vehicles of choice. In Europe, where CO2 is the tax yardstick, big petrol engines with expensive hybrids will usually come second best to an efficient diesel engine, as the latter makes financial sense in this class. Mercedes-Benz may have been the last to announce its entry into the hybrid arena, but it’s taken the cleverest approach to doing so. Under the bonnet of the E-Class is a compact, modular hybrid system which requires no body modifications to fit, can be scaled up to give more power, is adaptable to work with plug-in hybrid technology and most importantly fits both diesel and petrol engines. As a result, the E-Class Hybrid is available as a saloon and estate, and comes with two different powertrains. The E400 Hybrid is powered by a petrol engine and aimed at
20
fleetworldgroup.co.uk
traditional hybrid-loving markets. But Europe will get the E300 BlueTEC Hybrid, with a 202bhp 2.2-litre diesel engine, a unique proposition in its class and making this the most efficient executive car on sale, at 67.3mpg with CO2 emissions of 109g/km. The tax advantages go even further in the UK. Not only does it offer the lowest emissions in its segment, for now, but until April 2016 it avoids the 3% diesel BiK surcharge applied to most low-CO2 models, which should cover up some of the additional price. Keeping the battery small and reducing the need for body modifications means it’s also reasonably cost-effective to produce. UK prices haven’t been announced yet, but in Germany the hybrid system adds around £3,000 to the price compared to an equivalent E-Class. In theory, this should place it between an E300 CDI and E350 CDI when it goes on sale later this year. Hybrid technology fits the executive class perfectly. At startup, the E-Class whispers along using the compact motor sandwiched into a 65mm space between the engine and transmission, and it can undertake most low-speed manoeuvring and low-load acceleration on electricity. In heavy traffic, it works a little like a stop/start system, albeit one which shuts the engine off more regularly and before the car has come to a full stop.
The system comes into its own at high speeds, offering smooth, brisk acceleration assisted by the electric motor. It’s also surprisingly easy to put the car into its ”sailing” mode by lifting off the throttle slightly, deactivating and decoupling the engine for silent electric-powered motorway cruising at up to 100mph. The only thing that’s noticeable from behind the wheel is the increase in resistance as the motor switches to become a generator, which feels like someone brushing the brake pedal very lightly. So from a position where BMW and Audi have been able to offer lower-carbon alternatives to Mercedes-Benz’s luxurious executive carrier, the three-pointed star has come back to steal a lead over its rivals with this impeccably well-thought out hybrid. If UK pricing is as well considered, this could be the first hybrid executive car to make real financial sense for fleets.
verdict Mercedes-Benz has engineered its modular hybrid system so well that it’s surprising none of its rivals offer something similar. This will offer considerably lower ownership costs compared to its closest hybrid rivals, but the carmaker needs to ensure pricing doesn’t offset its tax advantages too heavily.
Elite Sponsor of the Northampton Saints
Smart Partnership
Quality.
Service.
Value.
In tough economic times, it’s important to choose your business partners wisely. At Hankook, we understand your need for proven quality and long-lasting performance from a tyre. That’s what Hankook delivers. Combine that with our proactive service and you now have a formula for unbeatable value. Hankook, better tyres from a better tyre company; that’s what drives our confidence in our work.
Experience unrivaled comfort during high-speed driving
Experience premium handling and exceptional performance on wet and dry roads
The Cutting Edge Technology Ultra-High Performance Tyre
Hankook Tyre U.K. Ltd. Fawsley Drive, Heartlands Business Park Daventry, Northamptonshire NN11 8UG, U.K. Tel : 01327 304 100 Fax : 01327 304 110
hankooktyresuk.co.uk
DRIVEN
Vauxhall Ampera Alex Grant finds out how the European Car of the Year stacks up on UK roads. SECTOR Lower medium PRICE From £29,995 – £33,995* FUEL 235.4mpg CO2 29g/km It may have been launched, launched, and launched again, but Ampera is finally in the UK, which means a chance to see how the revolutionary range-extended electric vehicle performs on our unique road network. At just shy of £30,000 for the entry-level
model, ranging to £34,000 for the top of the range model, that high-tech drivetrain doesn’t come cheap. But that’s likely to be the only real barrier to ownership for most, because it does everything so well. For a start, it looks great. That coupe-like silhouette wraps around a well-finished,
futuristic interior that seats four in comfort with room for luggage. Vauxhall decided losing a seat to slot the battery into the centre console was less of a sacrifice than shedding boot space, and it’s a sensible choice. Mounting the battery that low also results in incredibly stable, sporty, handling. Ride quality – set slightly firmer than the Volt – is solid, but plenty soft enough to avoid pothole-induced backache, and even with all the weight it’s carrying it takes a lead foot to make it squirm through corners. It’s a good platform for that drivetrain. Ampera’s torquey electric motor means this belies its lukewarm performance figures, accelerating violently from a standing start on the way to a 100mph top speed. The only downside is a noticeable dip in full throttle torque when the battery is low and the range-extending petrol engine is running. But the 1.4-litre unit itself, which boosts power and tops up the battery through a generator, is barely audible despite revving irrelatively to the car’s speed. Vauxhall is targeting a realistic 2,500 to 3,000 sales in its first two years, with 80% going to fleets. Though it’s a step change from conventional power, until range goes up for pure EVs and infrastructure grows for hydrogen fuel cells, this could be the most desirable, practical solution going. *after £5,000 grant
Audi A1 Sportback Could the A1 tempt those looking to drop a dress size? Steve Moody finds out. SECTOR Supermini PRICE From £13,980 – £21,270 FUEL 47.9 – 74.3mpg CO2 99 – 139g/km There’s always a lot of talk of company car drivers downsizing, but at what point do they decide to stick rather than twist? Dropping from a big saloon to hatch is obviously a fairly well trodden path, but from hatch to supermini? I’m not so sure. There are too many compromises involved, especially
22
fleetworldgroup.co.uk
for drivers doing a decent amount of business mileage. Perhaps only the MINI has proved a genuine downsizing option in this regard. However, the new A1 Sportback should make those with a mind to go minimal think on. With its five doors, refined and well-proven engines, classy Audi styling
and good build quality it could prove a useful downsizing proposition. The A1 Sportback range will initially feature three TFSI petrol engines and one TDI diesel producing between 86bhp and 185bhp, and will be joined in the summer by a fifth engine – the 2.0-litre TDI with 143bhp. But we drove the 122bhp petrol and 105bhp diesel, and the diesel is easily the best of the two for a company car driver: lower emissions, quiet, more urgent and long legged on the motorway. Luggage compartment capacity for the five-door is on a par with the three-door A1, while it is marginally bigger too, by a matter of millimeters, and can seat five, not four. It also gets a contrasting colour roof that the three-door doesn’t. Features common to the SE, Sport and S-Line options include alloy wheels, remote central locking, air conditioning, electric windows and mirrors, split folding rear seat and a six-speaker single CD Concert audio system and a 6.5-inch retractable display. The 99g/km 105 diesel costs just over £15,000 on-the-road, which in these days where the price of a family hatch will easily bust through the 20 grand barrier, means this looks decent value from a downsizers perspective, but fairly expensive (but not prohibitively so) from a supermini.
G IN RT ES PO UD RE CL E IN TYL -S ER IV DR
Real-Time Vehicle Tracking
*
• 12 month contract • FREE installation • On-site warranty • Exceptional service • Driver Style Reporting Suite * Then £22.90 per month after the first three months.
0870 013 6663 enquiries@quartix.net www.quartix.net
THE NEW BMW 116d EFFICIENT DYNAMICS
99G/KM.
THE NEW B EFFICIENT D
109G/
bmw. Still the one to b The one and only BMW EfficientDynamics range is really setting the pace in the corporate market. The 116d EfficientDynamics, for example, delivers up to 800 miles on a single tank of fuel, while emitting just 99g/km of COâ‚‚ for a 100% Congestion Charge discount. With personal bests like this, there are no medals for guessing why BMW was chosen as Official Automotive Partner for the London 2012 Olympic and Paralympic Games. Our fleet of almost 4,000 EfficientDynamics vehicles, hybrids, electric vehicles and motorcycles comfortably beat the average CO2 target of 120g/km set by the organising committee. For more information on the unbeatable BMW range, please visit www.bmwcorporate.co.uk or call us on 0800 777 113.
a winning fleet supplier.
Official fuel economy figures for the BMW EfficientDynamics range: Urban 50.4-62.4mpg (5.6-4.4l/100km). Extra Urban 68.9-83.1 (4.1-3.4l/100km). Combined 62.8-74.3 (4.5-3.8l/100km). CO2 emissions 119-99g/km. BMW EfficientDynamics reduces BMW emissions without compromising performance developments and is standard across the model range.
BMW 320d DYNAMICS
G/KM.
beat.
BMW Corporate Sales
bmwcorporate.co.uk Tel: 0800 777 113
THE NEW BMW 520d EFFICIENT DYNAMICS
119G/KM.
The Ultimate Driving Machine
FEATURE Budget Briefing
THE BUDGET
BRIEFING Everything you need to know about the Chancellor’s Budget – and how it might affect your fleet. By Alex Grant and Steve Moody. Five-year Benefit-in-Kind bandings revealed The Government has laid out its five-year plan for Benefit in Kind taxation, with the tax exemption for ultra low-emission cars abolished and 2% per year increases to follow from April 2015. It means drivers of cars emitting up to 94g/km or less will pay 13% for petrol engines or 16% for diesel, including zeroemission vehicles, up to a maximum of 37% for the most polluting models compared to the current 35% limit. But despite tax increases across the board, some have welcomed the Government’s clear picture of the next five years. ‘The emissions-based company car tax system has been a little too successful, resulting in a larger than expected fall in tax revenues. So it is no surprise that the Chancellor is continuing to incentivise further cuts in emissions by lowering the tax thresholds,’ said BVRLA chief executive John Lewis. ‘We applaud the Government’s decision to listen to our calls and give employers and company car drivers a clear five-year signposting of future company car tax rates, which will enable them to choose a new, lower emission vehicle – lowering their tax bill at the same time.’ Richard Schooling, chief executive of Alphabet added: ‘The move from making 1% to 2% increases in the annual rate of company car BIK from 2015 sounds significant but, for a higher rate taxpayer driving a £22,000, 130g/km CO2 diesel, it will only add £1.50 a week to their BIK bill.’
26
fleetworldgroup.co.uk
Diesel BiK surcharge abolished from 2016 The 3% benefit in kind surcharge for diesel engines will be dropped in April 2016, bringing banding into parity with petrol counterparts. It means low-carbon diesel engines will be taxed the same as petrol, in line with VED which was reformed during 2009 and following repeated calls to close the tax gap. The diesel-dominated eet sector has welcomed the decision, as it will reduce the price disadvantage for some of the lowest CO2-emitting vehicles. The surcharge was originally introduced in response to the high content of harmful emissions from diesel engines compared to an equally eďŹƒcient petrol engine, but European standards have forced manufacturers to bring these down signiďŹ cantly over the last decade. Euro 6, which comes into force in 2014, only sets stricter targets for diesel engines.
The Government has laid out its fiveyear plan for BiK, with the tax exemption for ultra low-emission cars abolished and 2% per year increases from April 2015.
April 2012
27
FEATURE Budget Briefing
THE BUDGET
BRIEFING Lease rental restriction drops to 130g/km From April 2013, the CO2 emissions threshold for lease rental restrictions will drop from 160g/km to 130g/km, the Chancellor confirmed. New cars with CO2 emissions of 160g/km or less are eligible for 100% of their lease payments to be offset against corporation tax. For new cars with emissions above this threshold, businesses can offset only 85%, and it may have an effect on how businesses fund their fleets. BVRLA chief executive John Lewis wants to see the tax removed. He said: ‘The continuing application of the Lease Rental Restriction acts as nothing more than a double emissions tax on our industry. We will be vigorously lobbying to have this unfair fleet tax removed as we did with the 3% diesel supplement for company cars.’ ACFO chairman Julie Jenner said the change may affect how fleets source their fleets. She said: ‘Far-reaching changes from April 2013 will have a similar impact with 130g/km of CO2 becoming the de facto benchmark for company cars instead of the current level of 160g/km. Additionally, the Chancellor’s decision not to extend 100% first year capital allowances on low emission cars to leased models may well see some fleets reconsider their options in relation to these vehicles. ‘However, detailed financial modelling will have to be undertaken to calculate the impact of such changes.’
Capital allowance adjustment will cause industry changes The leasing industry says it will adapt and change to the new lower capital allowance threshold announced in the Budget that sees a drop from the current 160g/km to 130g/km in 2013. The introduction of the previous
28
fleetworldgroup.co.uk
level in 2009 created a glass ceiling for fleet cars, due to the added cost of writing down the depreciation of cars over 160g/km. Given only a year’s notice, and a considerable drop in the threshold, the industry has a short time to adapt. But eventually it will, John Lewis, chief executive of the BVRLA, reckoned: ‘The Chancellor’s enthusiastic efforts to drive down emissions-based capital allowances for company cars could be a step too far, too soon. ‘The fleet sector is the only part of the new vehicle market that is still growing at the moment. It will adapt to the new tax regime as it always does, but these ambitious targets could bring a temporary stall to the market as businesses re-evaluate their fleet policies. ‘The fleet industry coped with the introduction of the 160g/km capital allowance threshold when it was introduced in April 2009 and it will cope with these ambitious new emissions targets.’ Although it is unlikely to affect monthly rental costs massively, if as before fleets use the 130g/km as an ordering benchmark, then manufacturers will have to adapt production and delivery schedules to reflect increased demand for cars below that threshold.’ However, Gary Killeen, Fleet Services Commercial Leader for GE Capital UK was less upbeat, adding: ‘This move is really quite significant. It will mean that cars of above 130g/km will have reduced tax relief for employers who operate company car fleets – typically £8-£12 per month on an average leased fleet car or an annual £500 reduction for an outright purchased vehicle. ‘Clearly, these represent substantial cost increases and will, in many cases, effectively price models with more than 130g/km out of the market, especially for mainstream fleet use. It will also especially hit outright purchase fleets, adding to the relative attractiveness of leasing in many cases.’
FEATURE Budget Briefing
THE BUDGET
BRIEFING
What the change means for leasing...
Capital Allowances – not much Budget cheer for fleets says Professor Colin Tourick Anyone listening to the Chancellor’s Budget speech will have been encouraged then confused by the difference between the high words and the actual details. He said ‘To encourage fuel efficient fleets, we will extend the 100 per cent first year capital allowance for low emission business cars’. ‘Great!,’ I thought. ‘The 100% first year allowance is available for cars emitting up to 110g/km. I wonder how much he's extended it to? 120g/km? 130g/km?’ Imagine my disappointment then when I dug into the detailed announcements and realised he was planning to reduce the threshold from 110g/km to 95g/km, and remove it from leasing companies completely. The word 'extend' related to the period when 100 FYAs will be available - it will continue to 31 March 2015, two years later than planned. Which of course is good news, just not the news I thought he was announcing. This was just about his only good news on capital allowances. Removing 100% FYAs from leasing companies will increase the cost of those cars for their clients and do no good at all for the EV market, which had already been struggling to take off. But the impact on the leasing industry will only be marginal. Few businesses lease large numbers of cars emitting less than 95g/km. However, if yours does it would be worthwhile re-evaluating whether to lease, buy or HP these cars in future, perhaps using a leasing company’s fleet management service to help you operate the fleet effectively. I was surprised to see the Chancellor announce a sharp reduction (160g/km to 130g/km) in the CO2 threshold above which businesses get capital allowances at the regular 18% rate, rather than the ‘special’ 8% rate. 18% and 8% are rates low by historic standards, and regardless of the cut-off threshold between them it’s clear you don’t get a lot of tax allowance for buying a company car. These low rates also exacerbate the ‘pooling’ problem: in many cases, companies won’t get their full allocation of capital allowances until long after their cars have been sold: 10 or 20 years in some cases. Overall, the changes in the capital allowance rules will be costly for fleets. The Treasury expects these measures to raise £575m over the next five years. But you can avoid losing out from these changes by simply ensuring that your drivers choose cars emitting ever-lower amounts of CO2.
BUDGET BITES
Details of the other announcements...
Class 1A NICs: For 2012/13 the percentage for the calculation of employers’ Class 1A National Insurance Contributions remains at 13.8%. Approved Mileage Allowance Payments (AMAPs) rates remain at 45p/mile for the first 10,000 business miles, and at 25p/mile for business mileage over 10,000. Vehicle Excise Duty rates rise in line with the Retail Price Index in 2012/13, applicable from April 1, 2012.
30
fleetworldgroup.co.uk
Car fuel benefit charge (FBC): From 6 April 2012, the FBC multiplier for cars will increase from £18,800 to £20,200, and will increase by 2% above the RPI in 2013-14. The Government commits to pre-announcing the FBC multiplier one year ahead. For all the tax tables and calculations of how the Budget could affect your fleet, visit www.fleetworldgroup.co.uk
Say
hello
to
our
new
brand!
We're recruiting! As we continue to ourish and grow we're looking for fresh, new talent to join us in all departments. If you want to work somewhere you can truly make a dierence, simply email us your CV and covering letter to careeropportunities@tuskerdirect.com quoting ref: NBFW03
FOR A POWERFUL, LOW EMISSION FLEET • Up to 50.4 mpg on a combined cycle
• Impressive 215 bhp D5 engine
• CO2 from just 149 g/km with All-Wheel Drive
• All-Wheel Drive or Two-Wheel Drive options
• BIK contributions from only 23%* Fuel consumption figures for the Volvo XC range in mpg (l/100 km): Urban 18.6 (15.2) to 43.5 (6.5), Extra Urban 34.9 (8.1) to 58.9 (4.8), Combined 26.4 (10.7) to 51.4 (5.5). CO2 emissions 249 g/km to 144 g/km.
YOUR VOLVO XC RANGE
low bik. HIGH BHP.
It’s not difficult to see why the Volvo XC60 and XC70 have quickly become two of our most popular and business-friendly cars. Low emissions and impressive fuel efficiency keep your fleet economic. All-Wheel Drive performance, practical space and muscular style keep your drivers ahead of the crowd. Benefit in kind contributions of only 23%* keep your fleet within your drivers’ budgets. And, when you add the commanding presence of the Volvo XC90 – you really can keep everyone happy. Call your Volvo Business Specialist to request an appointment today.
CALL 08457 300 140 OR VISIT WWW.VOLVOCARS.CO.UK TO FIND OUT MORE COMPANY CAR DRIVER INFO: Benefit in kind rates for the 2012/2013 tax year on the Volvo XC range are from 22% to 35%. By way of example, company car tax payable being £105.28 to £251.65 per month for a 20% taxpayer and £210.56 to £503.30 per month for a 40% taxpayer. Monthly amounts are a guide only. Final car tax payable may be lower or higher and will depend on other factors including final list price of car with accessories and options and any employee capital contributions or payments made towards private use. Excludes private fuel. Advice should be taken. * 2012/2013 tax year
FEATURE Budget Briefing
Budget confirms 3p per litre fuel price rise for August Despite record prices at the pumps already this year, plans to increase fuel duty by 3.02 pence per litre in August will still go ahead it was announced, with VAT meaning this adds around £1.81 to the cost of filling a 50-litre tank. The decision has been heavily criticised by the fleet industry, who argue that scrapping the price hike would have helped recession-hit businesses to cut transport costs. Recent independent research by the Centre for Economics and Business Research suggested a 2.5 pence per litre cut in fuel duty would create 175,000 new jobs, amounting to a 0.33% boost in UK GDP. Martin Brown, managing director of FleetAlliance, said: ‘We can see no justification for this further rise in fuel excise duty and believe that the Government has actually missed an opportunity to cut duty as a stimulus to the economy. ‘This latest announcement by the Chancellor is likely to lead to further reductions in business travel and may promote the use of techniques such as conference calls or video conferencing, as companies cut back on all non-essential travel.’
THE INDUSTRY VIEW ”TODAY was a golden opportunity for the Chancellor to reach out to British business by scrapping the planned fuel duty increase. Instead, their decision strikes a bitter blow right into the heart of the economy. When will the Chancellor realise that the country cannot get back on its feet if the cost of fuel is continually dragging businesses and motorists back down?” Ian Stuart, group managing director, ATS Euromaster ”THIS is clearly a Budget for business and employment that is likely to stimulate growth for many of the fleet industry’s customers. However, the Chancellor’s enthusiastic efforts to drive down emissions-based capital allowances for company cars could be a step too far, too soon. ‘The fleet sector will adapt to the new tax regime as it always does, but these ambitious targets could bring a temporary stall to the market as businesses re-evaluate their fleet policies.” John Lewis, chief executive, BVRLA
34
fleetworldgroup.co.uk
”THE proposals for greater investment in UK businesses are a welcome development. Tax cuts and credit-easing will be a significant help to many businesses at a time when the UK economy remains fragile. From our own experience and what we hear from our clients, we are optimistic that 2012 will, on balance, bring greater confidence to the SME sector.” David Brennan, managing director, LeasePlan ”THE Government estimates the changes along with the amendments to the capital allowance and tax relief rules will lead to an increase in the tax take in excess of £600 million on company cars. This means that businesses should seriously consider the carbon foot print of their fleet in order to control costs.” Mike Moore, director, Deloitte automotive team ”FUTURE changes in company car tax rates and capital allowances will drive fleet managers and drivers into lower emission cars at a faster rate. ACFO had called for the duty increase not to go ahead as, with fuel prices already at record levels, the rise will further impact on business costs.” Julie Jenner, chairman, ACFO
TOYOTA & LEXUS FLEET SERVICES
Desirability
Reliability Sustainability Affordability Rangeability Serviceability
Looking for a partner with abilities that drive success?
toyotalexusfleet.co.uk
Take a closer look at ours . . .
Whatever the business you’re in, you need partners with the ability to help drive your success. Here at Toyota and Lexus Fleet Services, we understand your requirements and are dedicated to providing vehicles and services sure to exceed the expectations of even the most demanding company or driver.
Whether you’re looking for luxury, versatility or performance, we have the ability to provide an unprecedented range of the most desirable, efficient and cost-effective vehicles in the market - and our dedicated Business Centre Network is specifically designed and equipped to meet the needs of business customers.
Turn the page and discover how our unique range of abilities can help you, your drivers and your business to reduce costs and enjoy exceptional service, without compromising on style, performance or choice.
TOYOTA & LEXUS FLEET SERVICES
Desirability
Reliability Sustainability Affordability Rangeability Serviceability
The new Toyota GT86. Stunning to behold, exhilarating to drive. Available July 2012.
toyotalexusfleet.co.uk
The new Lexus CT 200h. The world’s first full hybrid luxury compact. Book your test drive on 0844 701 6186.
. . . they’re all brilliant
Sustainability
Affordability
Unique, energy-efficient vehicles that offer unmatched financial
What’s good for the planet is good for your pocket. No other range
benefits, whilst reducing the environmental cost of motoring.
matches our ultra-low total cost of ownership positioning.
s World’s No. 1 Green Brand – Interbrand Global Ranking 2011
s Unrivalled company tax benefits and driver benefit in kind s Class-leading operating costs s 100% write down allowance on many models s Unparalleled fuel efficiency throughout
s Future-proof investment against NOx and particulates taxes s World leader in clean, fuel efficient hybrid technologies s Europe’s lowest fleet-wide CO2 output – EC and EEA analysis
Find out more about how our abilities can help drive your business success. Ca
Desirability
Reliability
We make cars that people love to drive – not surprising when you
People choose Toyota and Lexus because our cars demonstrate
consider our two world class marques.
reliability they can bank on.
s Stylish, innovative and dynamic in appearance and performance s Capable, reliable, efficient and cost effective s Quiet, clean, comfortable and in-tune with environmental concerns s Safe, secure, superbly finished and generously equipped
s Multiple No 1 positions in Sewells Fleet Operator Attitude Survey s Lexus No. 1 in JD Power satisfaction survey 11 years in succession s 5 years 100,000 mile, fully transferable Toyota Warranty s Auto Express Manufacturer of the Decade
t for business
Rangeability
Serviceability
Our extensive range offers the most all-inclusive, one-stop business
Our Business Customer Charter guarantees leading after-sales and
driving solution. Everything you’ll ever need in one place.
support services, tailored to exceed the needs of business drivers.
s Choice of 26 models catering for all business requirements
s Over 100 dedicated Business Centres nationwide s Capped prices for all services, parts and labour – transparency s Free collection, free delivery, complementary valeting s Industry leading parts availability – keeping you mobile
s 6 superb new models being launched in the next 12 months s 6 petrol full hybrids offering extraordinary financial benefits s Proven quality, safety and reliability throughout
all 0844 701 6186 or visit our website today.
FEATURE Winter Tyres
SM I've been really impressed with the winter tyres I've run. The Continentals on my XC90 have proved tremendously capable, very grippy and haven't affected the already poor fuel economy. On Fleet World's A6 Avant long termer, it snowed heavily one night when I was 100 miles from home yet I cruised back while everyone else slithered about. I'd definitely recommend fitting winters to anyone – it's just a case of budgeting for two sets of tyres in the first year – after that the cost evens itself out. AG Well, I think this year's mild winter will be a deal-breaker for a lot of fleets considering cold-weather tyres. After two really harsh winters, the media started hyping the necessity to fit appropriate tyres as far back as the beginning of the autumn, warning drivers not to take a chance and get stranded. But those who did invest would have found only a handful of days where they'd really notice the benefits. Unlike most of northern Europe, where cold snowy winters are almost guaranteed, it's so difficult to predict what the UK weather will do. This can make cold weather tyres a hard sell, and it's likely to be an even harder sell this year.
A WINTER’S TALE Steve Moody and Alex Grant have driven numerous cars with winter tyres on this year, and now they have some conclusions about whether fleets should fit them.
SM The thing is with winter tyres, it's hard to fully understand the benefits: they work better at under seven degrees, not just in snow, which means drivers will have more traction and grip, and stop quicker when its cold. So they may never know when winter tyres prevented
them smashing into the back of the car in front. To not fit them because the weather was a bit warmer than usual this year is a bit like saying “I've never needed to use airbags, so I don't think I'll bother having them on my next car”. AG A lot of it depends on the user, though. I spent the two harshest winters driving my Passat around in deep snow, and that had summer tyres fitted. With gentle throttle inputs, increasing my stopping distances and reducing my speed I didn’t have any problems with the reduced grip. SM Ah, but you’re obviously a fine driver. Not everyone is as skilled as you! AG I wouldn’t say that. It’s not ideal, but driving on the wrong tyres takes concentration and forces the driver to consider every move. A fleet driver training expert told me they’d rather have drivers allowing for the poor conditions than have a load of cars on expensive tyres being driven on the assumption that they had as much grip as they’d have in dry conditions. It’s not a position I’d considered before, but I can see why some would say that. SM I’m not sure that position stacks up from a duty of care perspective… AG Maybe not, but too much confidence can be a bad thing. SM Absolutely. Oddly winter tyres can have an effect on other drivers too: when I was driving in a fairly
snowy dual carriageway lane on winters, with loads of grip, I became aware that other people started following and keeping the same speed as me even thought they were probably on normal tyres (I guess they assumed I'd driven there, so they could) which meant I had to slow down, otherwise they would have slid into my car at the next roundabout. That was an unexpected consequence. AG They’re certainly confidence-inspiring when the weather really turns. The Fleet World Peugeot 508 long-termer ran winter tyres from the beginning of November, but I didn’t get any time with the car until February – ironically the weekend where it started snowing. Obviously it wasn’t quite as grippy as a car in dry conditions, but the Michelin Pilot Alpins allowed for close to normal driving without the need to carefully nurse it out of snow-covered side roads such as my estate. It’s a difference I came to appreciate more when I had a short-term loan of a different 508 on all-weather tyres the week after – less snowfall and the car was far more difficult to manage. Those who did invest this year would have had no complaints about the difference it made to their cars’ ability to get around. SM Ability to get around is the vital thing: these tyres are vital for rearwheel drive fleet cars I believe. In business you need to get to places – not doing so costs money. So why wouldn’t you invest, if there are no cost implications other than initial increased capital outlay?
Ability to get around is the vital thing: these tyres are vital for rear-wheel drive fleet cars I believe
AG Actually, I was so impressed that I decided to get a set of the same tyres for my wife’s BMW Z4. This struggles with even the slightest snowfall, so I’m predicting a real transformation once the Alpins are fitted next winter. With a powerful or rear-drive car, drivers should see the benefits earlier than they would in a front wheel drive car like the 508. And the 320d EfficientDynamics is bringing performance and rear-wheel drive into a price scale previously dominated by front wheel drive models. There will be a fair few new-to-BMW drivers who won’t be aware that this is quite a different experience when grip is reduced, and who would see a real benefit with winter tyres. Most of BMW’s own press fleet switches to winter wheels in late autumn, which I think says it all. SM Quite. So we’re in agreement that winter tyres are generally a good thing? AG For fleets which really want to make sure their drivers can get about safely, absolutely yes.
April 2012
35
COVER STORY CO2 BIK Taxation
10 YEARS ON HAS CO2 CHANGED FLEET FOREVER?
A decade ago this month, CO2 taxation signalled a revolution in the way fleets were run. Emissions levels have dropped, but have we progressed as much as we think? Stewart Whyte investigates.
36
fleetworldgroup.co.uk
I
n today’s fleet market, and to a lesser extent the overall car market, CO2 rules just about everything: the initial VED and possible first-year registration fee, subsequent years VED, corporation tax levels and of course company car tax. Yet it can be hard to recall that just 12 years ago, the industry hardly recognised the term, and CO2 had no real place in the vehicle selection process. The upheaval of 2002, the introduction of the BiK system based on carbon dioxide emissions changed all of that – irrevocably. But where did the CO2 tax system come from? The UK policies fundamentally changed as a direct result of the UK commitments made, ironically by “Two-Jags” John Prescott, at the Kyoto Summit in 1997. Throughout 1998 Government departments led by HM Treasury, headed by Gordon Brown as Chancellor, explored all the then-current tax elements and considered how they could be changed to be influenced by – indeed dependent on – a CO2 based tax system. Initial results were announced in the 1999 Budget with a bare outline of intent: both VED and BIK would become linked to the CO2 emission levels of the car. There were all sorts of considerations about vans as well – that proved a step too far at that time. Consultation was launched to move BIK from a three-band variation on the P11D price (introduced in 1994; band thresholds based on business mileage in the year) to a 21-band system based on 5g/km increments of the CO2 rating. Interestingly, the 21 bands spanned exactly the same range of percentages-oflist-price – 35% for the “biggest benefit”, 15% for the “smallest benefit” – so it was relatively easy to map the changes – once the industry had access to the CO2 ratings. That proved to be a struggle. Back then, focus on compliance with the EU Directive on availability of environmental performance was scant. Manufacturers generally published fuel consumption figures – but not the CO2 data. Catalogue information generally ignored this data. Dealerships generally held fuel consumption figures although most showroom sales people seemed reluctant to provide the information to potential clients – fleet or retail. The Association of Car Fleet Operators began a campaign to ensure that the data
was readily available. Looking back from today’s perspective, it is funny and astonishing to think that most manufacturers were reluctant to comply with the legal requirement (and had been for some time) because of fears of non-competitiveness of their models. Even by late 2000/ early 2001 – with the new CO2-based VED system effective from March 2001 – some were dragging their heels and providing data only “on request”. Once the VED system had settled down things got better – although many fleets failed to act, through failure to realise that the new system would affect all fleet cars in use by the change-date – not just new ones bought later. Quite a few managing directors had severe shocks in the wallet, having bought kit like Jaguars and Range Rovers just before the new BIK rules came into force. Undoubtedly part of the problem was that the UK led the whole world in these initiatives – and to some extent still does in the degree of CO2 integration into all aspects of vehicle taxation. With most of the big decisions about new drivetrain technologies in the European market made in European cities, there was a failure by some to recognise the extent of change in the UK fleet market. That started to change rapidly as the sales figures changed under the influence of the smarter fleet operators who recognised the impact not just on the drivers through the benefit-in-kind tax charges – but the cost to the employer through the corresponding Class 1A NIC charges. Suddenly, not only was there better access to CO2 data – but R&D on engine performance was greatly accelerated. Of course much of this was the result of other EU countries starting to think along similar lines to the UK for taxation streams – with the twin objectives of reducing emissions from transport and raising revenues. So just a decade later, the CO2 rating of new cars is now one of the most important aspects of any new model – often released before the initial pricelist. With direct influence over initial and subsequent Vehicle Excise Duty rates, corporation tax effects, driver taxation and related employer NIC, the changes begun in 1998 and enacted in 2002 have changed the shape of the market probably even beyond the wildest dreams of the early taxation and political “inventors” of the systems.
FLEET INFLUENCE OF CO2: ON FLEET OPERATORS Most fleets now have some recognition of CO2 thresholds in their policies. Some of this is for driver taxation, some for corporation tax rates. But the shape of the fleet market has changed significantly over recent years. Diesel has increased its overall penetration from a few bold all-diesel pioneers to now some 65 – 70% of all new fleet cars (and around 45% in the overall market). That’s because in broad terms a diesel will have lower CO2 and therefore tax burden than an equivalent petrol engine – but let’s not ignore the huge improvements in all aspects of engine technologies and refinements which focused on diesels across Europe.
ON COMPANY CAR DRIVERS Driver intentions have changed considerably. There is certainly a much greater (if not quite total) recognition that the CO2 rating will impact on driver cost – but there is lots of evidence that the CO2 figure is taken in isolation, and not as a means to measure the actual taxation cost of any particular vehicle. So instead of doing the full calculation (list price times percentage based on CO2) drivers often look only at the CO2 – and ignore list price factors (and obviously the actual fuel consumption values). But this had led to a very considerable downsizing of the overall new-vehicle selection process.
It is astonishing to think that most manufacturers were reluctant to comply with the legal CO2 requirement because of fears of noncompetitiveness of models.
April 2012
37
ONE CROSSOVER, FOUR 4 wheel traction
electric
4WD Mode
ZEV Mode
Diesel engine in the front, electric motor in the back, both drive trains operate at full power in this mode to provide maximum traction to all wheels for all driving conditions.
In Zero Emissions Vehicle mode (ZEV), the 3008 Diesel HYbrid4’s electric motor kicks in with emission free power – ideal for short journeys and driving around town.
3008 diesel HYbrid4.
Combined fuel consumption (L/100 km): from 74 4 (3.8) to 70.6 (4.0) . CO2 emissions (g/km): from 99 to 104. *For 40% tax payers on 99g model.
PEUGEOT
3008 DIESEL HYbrid4
DRIVING EXPERIENCES.
peugeot.co.uk/fleethybrid4
200 bhp
diesel hybrid
Sport Mode
Auto Mode
The combined diesel and electric drivetrains work together, improving responsiveness and giving your drivers the enjoyment of the full 200bhp, with CO2 emissions from only 99g/km.
This mode automatically selects the most efficient combination of diesel and electric power delivering up to 74 mpg. The HYbrid4 engine means that drivers won’t incur the 3% BIK Diesel surcharge.
BIK ONLY ÂŁ90 PER MONTH*
COVER STORY CO2 BIK Taxation
10 YEARS ON HAS CO2 CHANGED FLEET FOREVER? FLEET INFLUENCE OF CO2: ON MANUFACTURERS & THE MARKET Once manufacturers realised the advantages to sales of getting behind lower CO2, they have done amazing things. Of course, EU-level regulation and the individual tax systems have helped. All the volume/fleet makes now offer some form of “Eco” system almost at sub-brand levels. Huge investment in R&D and new production facilities have lowered the overall CO2 ratings hugely: across Western Europe the market average has fallen from 172 g/km (2000) to 146 g/km (2010). In the UK over the same period, the figures are 185 g/km to 144 g/km. These improvements come from a range of different factors: • Tighter engine management through advanced ECUs • Improving fuel qualities • Different gearing • Lower weight (despite additional safety and comfort items) • Stop/ start technologies Pending legislation aims to get the corporate average down under 140g/km within the next year or two – and most manufacturers seem quietly confident they can achieve this (although they don’t always advertise that view to the regulators.) As well as these changes, the shape of the market has altered significantly. Sales of larger cars are down and of smaller cars considerably up (although all within a smaller overall annual market). So the cars (and to some extent vans) are considerably more refined than before, yet deliver much better fuel consumption – or do they? Across the same period, the tested (for the Eurostandard Type Approval system) national average fuel consumption for petrol cars in UK has improved from 34.6mpg to 44mpg, a 27% improvement. For diesels, the figures are 44.9mpg to 52.1mpg, a 16% improvement. Overall these represent an improvement of around 17%. However, across the same period, total road fuel use (petrol and diesel – cars and light goods only) has only declined by 1.6 m tonnes per annum, from 36.5 million tonnes in 2000 to 34.9 in 2011. During that period road traffic has increased by around 10%, according to DfT figures. So the figures don’t quite add up.
40
fleetworldgroup.co.uk
IMPLICATIONS: HEAD IN THE SAND? Even though we may pat ourselves on the back for the on-paper reduction of CO2 levels, what appears to be happening is the failure of the delivered consumption promise, because actual fuel consumptions, and therefore actual CO2 reductions, are not improving as much as they could. It is widely accepted that the actual performance on the road is around 15% worse than the ‘combined’ figures from the official tests, and that of course varies widely according to traffic, weather and geography, but that underachievement seems to be getting worse. It is also widely recognised that too few fleets actually monitor the detailed fuel consumption achieved by their car/driver combinations. Even with the significant increase in use of fuel cards with all the monitoring and control potential, only a minority of fleet managers actually measure and monitor the detailed figures – and even today, some fleets barely try to control the overall costs. There is a growing concern that manufacturers, government and fleet operators are actually just relying on ‘new technologies’ to improve their positions. Here in the UK, and much of Europe, the industry is going mad throwing money at all kinds of R&D (both in-vehicle and back-office technologies), the very best of which will still take at least one whole cycle to become remotely effective – yet there is very little on optimising what is already in operation. By ignoring the vital aspects of policy, corporate expectations, occasional disciplinary action, and proper, effective measurement and monitoring of fuel volume and costs today, we fail to prepare the ground to exploit future technologies properly. A driver who refuses to be told to drive leaner, in a business that doesn’t think it can manage and improve delivered fuel performance, seems quite unlikely to get anything like the best out of any new-technology vehicle next time round. Perhaps even worse, he or she might try to drive it to get the same on-theroad performance – taking these technologies out of their optimum performance window and totally negating the potential benefits. And then, when someone does a quick measurement of mpg, it’s not much better, so “all that technology and expense was a waste of time,” undermining the core objectives of the strategy. This requirement to improve how, and how well we manage fuel has a direct and linear implication for CO2 emissions to the environment. Despite the technology-based improvements, we’re actually not making as much progress as the headline figures might show. Is it time for a re-think?
The CO2 emissions market average has fallen from 185g/km in 2002 to 144g/km now.
BIK TAX: IT’S THE FUTURE Industry experts predict what will happen in the next 10 years The Government may retain an emissions-based company car tax structure, but introduce a system that takes into account other exhaust gas pollutants and not just CO2. Having taken into account carbon monoxides (CO), oxides of nitrogen (NOx), particles and hydrocarbons as well as CO2, a numerical figure could be produced linked to a car’s overall emissions and then directly related to a percentage of a car’s list price as now. If telematics systems are to become standard in all cars at a future date, we could move to a mileage-based tax system.
Once the tipping point is reached whereby the UK motor industry is supported by drivers in green vehicles, taxation will rise back up to maximise revenue and ease congestion, potentially by forms of “vehicle usage” tax. Taxation on low emission vehicles is understandably low at present. But ultimately the taxation stick will reappear over the next decade once the current agenda is met. Company car taxation is a fine balancing act. With the corporate sector contributing so importantly to new vehicle registrations, no Chancellor will wish to damage that side of the economy.
Steve Whitmarsh, managing director Run Your Fleet
Stuart Menzies, Commercial Director, Interactive Fleet Management
We anticipate that manufacturers will keep ahead of the BiK trend by producing more efficient, lower emitting and high powered cars, encouraged by the taxation, emission targets and financial penalties already placed on them by European law. Alternative fuel technologies such as hybrids will increase in popularity, with hydrogen fuel cell technology a possibility; although as with electric cars a lot will depend on the cost and infrastructure.
Unfortunately, the changes after 2015 onwards are a real step change – especially the decision to get rid of special rates for drivers of ultra-low carbon company cars. The first 10 years of the CO2 system proved beyond doubt that worthwhile company car tax incentives change behaviours, cut costs and pollution and support business. Turning the screw on fleet drivers for another £350 million a year on top of the £1 billion-plus they already pay risks pushing them back into older, more polluting, less safe private cars.
Ian Hughes, Commercial Director, Zenith
Richard Schooling, Chief Executive, Alphabet
Progression of reduced CO2 emissions across the decade MODEL
MY 2000
MY 2007
MY 2012
152g/km
153g/km
109g/km
143g/km
137g/km
89g/km
180g/km
138g/km
99g/km
143g/km
143g/km
99g/km
BMW 3 SERIES
FORD FOCUS
VAUXHALL ASTRA
VW GOLF
April 2012
41
FEATURE Fleet mobility
IN THE CITY Alphabet claims it is pioneering a new method of business mobility and car use. Steve Moody went along for a look. First impressions of Alphabet’s new AlphaCity car sharing scheme is that it is just a very posh pool car scheme. Basically, a firm leases a car (or however many they might need) from Alphabet, which is set-up with access and start-up via an electronic booking and entry system. Workers registered on the programme can then book the car during office hours, with the rental charge, whatever the rate a company might set that at, sent to the relevant cost centre. Employees can also hire the car outside office hours, as long as they pay market rate rental prices (to avoid benefit-in-kind issues). By encouraging this, firms could claw back the monthly leasing cost of the car after a few hour rentals and make the scheme effectively cost neutral. So back to my first reaction: a posh pool car scheme. To an extent, Richard Schooling, Chief Executive of Alphabet, agrees, but says there is more to it than that. ‘AlphaCity will offer our customers increased flexibility, freedom and cost-effectiveness,’ he says. ‘Whenever we have raised the concept in discussions, our customers have been hugely enthusiastic about its potential to meet the mobility needs of their non-company-car drivers. ‘We’ve made AlphaCity as painless and productive as possible for customers. They simply lease the cars, provide parking spaces, tell their staff about the scheme, with guidance from Alphabet, and let us do the rest. ‘The cars are aspirational. The experience of using AlphaCity is fun and high-tech. And the membership aspect fosters a feeling of
42
fleetworldgroup.co.uk
shared responsibility that mitigates against colleagues returning cars late, dirty or without fuel. AlphaCity isn’t just a new way of delivering mobility, it helps employers drive desired behaviours. ‘For the employee, it’s like joining a car club that’s exclusive to people working for their company. They get a membership card that also operates the car’s keyless entry system and, when they need to make a journey, they reserve an AlphaCity car in advance on our booking system via the Internet or mobile website.’ The AlphaCity platform enables Alphabet to monitor and record the vehicles’ usage and create reports and itemised invoices for customers broken down by cost centre, if requested. It also overcomes the familiar drawbacks of pool cars around control of the keys, a perennial problem, and also very cleverly controls the condition of the car. The screen fitted to the MINI (or X1 or 1 Series, also available on the scheme) asks you a series of questions before you start off about the condition of the car, both internally and externally. So who will use the scheme? Schooling believes that it suits best larger companies with more than one site, probably with urban locations where employees don’t drive to work, and firms that have technology or environmentalism as key drivers of their business. Essentially, it’s a hybrid between pool cars, rental and car clubs, using technology to make the system work. To make the product a success, Alphabet will have to consult
with interested potential client to ensure they understand how much they already spend on pool cars, rental and taxis, but with the opportunity to brand the cars as well for local advertising, you can see how forward thinking businesses could well find a role for Alphacity.
The leasing model: How Alphacity works... AlphaCity is believed to be the first corporate car sharing scheme in Europe to operate on a leasing model. Customers lease the cars on a normal full maintenance monthly rental plus a service charge for the AlphaCity elements (reservation facility, in-vehicle solution, vehicle cleaning etc.). Customers thus ‘own’ their AlphaCity cars and can therefore offer their staff assured mobility around the clock. All AlphaCity cars are BMW and MINI models. The primary reason for choosing BMW products is because they incorporate a proven factory-fitted telematics and communication platform – BMW ConnctedDrive/MINI Connected. This gives Alphabet reliable control over drivers’ access to AlphaCity cars as well as the facility to record each use, and manage utilisation as appropriate.
Stay on the move with a well connected partner. No surprises - it’s Siemens. siemens.co.uk/traffic
UK businesses are increasingly choosing electric vehicles to deliver environmental benefits; improved air quality, lower emissions and reduced noise pollution. But the support infrastructure brings new challenges - the need for available, safe, high voltage and intelligent charging units. Siemens is already working with large and small customers around the world with a charging solution that is based
on four key components; industry leading fast-charging technology, incisive back-office management software, a wide support network and comprehensive service packages. All are tailored to your specific needs and managed to ensure maximum system availability and safety. And we may charge a lot - but we’re not expensive. Call us today on 01202 782649 or visit our website.
Answers for mobility.
INTERVIEW James Douglas Nissan GB
A learning curve Spearheading the electric vehicle market has reinvigorated Nissan GB’s fleet presence and James Douglas, head of corporate sales, says it has opened some unexpected new doors. By Alex Grant. Nissan broke new ground last year when it brought its first electric vehicle, the LEAF, to the UK. Though rivals were already offering electric cars, the LEAF’s blend of practicality and unchallenging ownership experience has made it a figurehead of electromobility since. The last 12 months have been a steep learning curve for Nissan GB, and the LEAF’s ability to defy its predicted sales figures have been marked, as the company’s head of corporate sales, James Douglas, admits. Fleets approached with more caution than expected, which drove an unusual introductory market. ‘At launch a lot of the early adopters were private individuals, so the launch order bank was quite heavily skewed towards retail, almost 80%, but we’ve seen over the year of the car’s life that revert back to a more traditional 50:50 split,’ he says. ‘Whenever you launch a new vehicle, my experience of fleet sales is that it is a ramp up. Qashqai has been phenomenally successful for us, but we didn’t start with the level of sales we have now. We saw a significant ramp up through the first year and then a continual rise thereafter. I think in fleet certainly that’s what we’re experiencing with LEAF.’ Early fleet adopters weren’t quite as expected either. Douglas says Nissan GB focussed its attention on those based in large urban areas, but the reality has been first year sales spread across the entire country. Although cost benefits are greatest in areas such as London, fleets which have taken it on to date have done so to fulfil corporate needs and desires for which geographic location hasn’t been a deciding factor. Early adopters cover almost the full spectrum of businesses, apart from one: ‘I guess the one exception is central Government. It’s probably the only area of the market where we haven’t managed to sell any,’ says Douglas. ‘I’m not sure why. We’ve sought opportunities and local government have been very engaged, but central Government have yet to step forward. I don’t think there’s any structural reason why not, I think we haven’t got around to finding the right person yet.’ But despite positive first steps, challenges remain. Awareness, largely through huge media exposure, is high, but the number of customers who have tried the technology first hand isn’t. And it’s here where fleets have a large role to play. A small number – limited by resale capacity at dealers – have gone into daily rentals. And though the majority of LEAF fleet sales are to company car drivers, a disproportionately high number have gone into pool car fleets. This has the dual benefit of giving companies the chance to invest in a single car and get multiple opinions, but also gets more drivers behind the wheel. ‘There’s no doubt that there are compromises for some people in terms of owning and operating a LEAF in their life,
44
fleetworldgroup.co.uk
and I think people understand that. What they don’t understand is what the scale of those compromises might be. And I think for some people there perhaps isn’t a compromise. I think unless we’re able to give people the opportunity to see the car then it’ll be difficult for them to understand that,’ explains Douglas. A lot of the problem comes from a shortage of cars. All LEAFs are built in Japan, which limits supply, and volumes were limited by the earthquake and tsunami last year. In early 2013, Nissan will localise production around the world, including building European models in Sunderland, increasing the availability of UK stock and allowing the carmaker an adequate demonstrator fleet. In the meantime, Nissan GB is planning substantial investment in its network to prepare for the ‘Euro LEAF’. From 32 electric vehicle specialist dealers, over 150 will be trained and equipped by the end of 2012. By the end of the fiscal year, Nissan GB’s entire dealer network will be ready to sell and service the car. In turn, this will allow extra capacity for the carmaker to sell its ex-rental vehicles. Douglas explains: ‘The plan is in the first half of this year we’ll get a car at every dealership in the network so people can sit in and try the vehicle within the dealer’s demo fleet. Obviously we have to link that up with training our dealers from an aftersales perspective, but as those dealers are trained and develop we’ll be giving them a car that they can show people and test and evaluate for themselves.‘ But perhaps the big surprise for Nissan is the LEAF’s effectiveness as a halo car, putting the firm back on the radar with fleets it wasn’t previously dealing with, in turn helping to sell other models. British Gas, which partnered with Nissan to offer charging points for retail and business users, bought almost no vehicles from the manufacturer until recently. The relationship developed through the LEAF has resulted in it adding Nissan cars and vans to its fleet, and it is also trialling an electric version of the e-NV200 electric commercial vehicle from its headquarters in Staines as part of ongoing development. Douglas puts this down to the LEAF highlighting recent improvements in Nissan’s range-wide emissions: ‘If you look at our lineup over the last five or ten years we haven’t had the lowest CO2 lineup in the country. That has improved immensely over the last 12 or 24 months, and LEAF is the ticket to get us to talk to people,’ he says. ‘We’re a 4.5% market player and a top seven fleet manufacturer – that just about gives us a place at the table. But some of the larger organisations can organise quite a closed shop, especially if they’re spending enormous amounts of money, and LEAF has the power to open the door for us.’
“If you look at our lineup over the last five or ten years we haven’t had the lowest CO2 lineup in the country”
April 2012
45
TELEMATICS
Time for a fresh look at the telematics opportunity Mel Dawson Latest advances in telematics mean that the technology has evolved from a ‘nice to have’ to a ‘must have’ component of effective fleet management. Mel Dawson, sales director of ALD Automotive, looks at the rise of the telematics proposition and the advanced benefits it can bring to fleets.
“ It is important fleets have a clear policy on how to deal with issues involved with telematics”
t 0870 0011181 e ukinfo@aldautomotive.com w www.aldautomotive.co.uk
46
April 2012
It may be a relative newcomer to the world of fleet but the telematics system has come a long way in recent years. From its more humble beginning as a way of tracking vehicles – and in the case of ALD Automotive’s ProFleet2 solution a way of reminding drivers to service their vehicles on time – the basic black box has evolved into an all-encompassing fleet management solution that can offer companies a way of cutting fleet operating costs, enhancing their CSR, assisting with legislative compliance and improving business efficiency. As a result the latest generation of telematics systems – including the newly enhanced ProFleet2 – are at the heart of effective fleet management. Fleets are increasingly recognising that the technology can provide an innovative and cost-effective solution. Concerns once existed over the costs involved, but these have come down in recent years and it is imperative to consider the reduction in operating costs that can be achieved. And although the most complex products won’t suit every business, our 10-step list here shows that if firms do their homework, they can benefit from a telematics system that offers a bespoke insight into their fleet running. Some fleets have also been cautious about how to implement such “black box technology” due to employees’ suspicions of how it will be used. While it is important that fleets have a clear policy on how to deal with the issues involved with telematics and the Data Protection Act, systems such as ALD Automotive’s ProFleet2 can help here through the use of driver consent controls. Meanwhile, personal benefits including mileage capture to help with expense claims - and the ability to prove when and where they were if needed - can soon turn the most sceptical of drivers around. With all that in mind, perhaps it’s time to take a fresh look at the telematics opportunity to ensure that your firm is not missing out on the extensive opportunities it conveys.
10 STEPS TO TELEMATICS ROI 1. Review the market Not all telematics systems are the same – some focus on vehicle tracking; others offer wider fleet management and information capabilities to reduce risk and cost. Ensure yours is future proof.
2. Choose real fuel data Using averaged manufacturers data to calculate MPG is inaccurate as it ignores the effects of driver behaviour. Real MPG data enables you to change poor driving habits and save money.
3. Educate drivers League table data including their vehicle shows drivers the impact on fuel consumption from harsh acceleration and braking, excessive idling and short trips.
4. Show drivers how it will help them Besides helping them reduce their own personal risk, telematics makes drivers’ jobs easier, particularly when compiling mileage claims.
5. Select an easy use system Comprehensive driver / manager reporting isn’t difficult with a simple yet intuitive system. Request a detailed demo and check it is simple to operate.
6. Seek consent Alleviate any privacy objections by choosing a system with built-in consent options. Telematics can be set to log all journeys or business mileage only.
7. Customise to suit your business Be clear on what your business needs to achieve from telematics data, and then choose a system with the flexible options to achieve best fit.
8. Reduce fuel costs Telematics is proven to reduce fuel costs. These come down when mileage is captured accurately; unnecessary or private journeys are eliminated; and driving behaviour improves.
9. Make economic driving habits attractive Drivers love healthy competition and by encouraging it positively using telematics data and league tables it is possible to gain real momentum to improve driver behaviour.
10. Achieve accurate and auditable mileage capture Taking the guesswork out of mileage capture for business and private journeys ensures fuel costs are accurate and taxation obligations are clear and undisputed across the fleet.
advertisement feature
A whole new online interactive experience! Designed specifically for the web, EV Fleet World is a dynamic all-new, interactive digital magazine. Subscribe for free at fleetworldsubscriptions.co.uk to receive your monthly issue, direct to your inbox.
Issue 003
in association with
EV NEWS PORSCHE PLUG-IN HYBRID DUE IN 2013 FIRST FLEET ORDERS FOR TESLA MODELS
ROAD TEST
E
U ISS
3 00NLINE O
W
NO
RENAULT FLUENCE Z.E.
T ER ght P EX insi V eE et fle m th try fro dus in C MI e A N iv DY ract nt e e int cont s EV new &
DIGITAL MAGAZINES FOR THE 21st CENTURY
evfleetworld.co.uk
DIGITAL MAGAZINES FOR THE 21st CENTURY
EVNEWS EV Fleet World is an exciting new publication which bring you all the latest EV news...
ROADTESTS
... alongside interactive road test reports on the latest electric cars and vans...
”EV Fleet World is excellent. Another superb publication from Fleet World Group.”
”EV Fleet World is a must-read for anyone who works in fleet.”
JOHN BRADLEY, FLEET MANAGER, HAMPSHIRE CONSTABULARY
LEIGH STIFF, FLEET MANAGER, K R HANNAFORD & CO
INDETAIL ... as well as more detailed explanations of how some of the clever technology works...
NEWEVMODELS
... and all the new models due to be launched in the next 12 months. And much, much more!
Subscribe NOW at fleetworldsubscriptions.co.uk and get the EV Fleet World digital interactive experience every month, direct to your inbox.
FEATURE To buy or to lease? // Part 17
MORE ABOUT INTEREST RATES
Professor Colin Tourick on the varying types of interest rates available to fleets. In an earlier article in this series we looked at different types of interest rate: simple, flat, compound, nominal true and annual percentage rate (APR). Those names are just labels – different ways of describing interest rates. So if you are being charged £1,000 interest for borrowing £15,000 over three years, that £1,000 might be described as A% simple interest or B% flat or C% compound or D% APR. Those labels don’t tell you how the lender will calculate the actual amount of interest they are going to charge you, which we look at this month.
FIXED v VARIABLE In most UK leases and hire purchase agreements, your payments remain static regardless of changes in market
52
fleetworldgroup.co.uk
interest rates. So they are ”fixed rate” transactions. If on the other hand you funded your cars by using, say, your bank overdraft, where the interest charge varies with market interest rates (in this case bank base rates), you will have funded them at variable rate or floating rate. Most financial products, including hire purchase and leases, can be offered at fixed or variable rates. With a fixed rate deal you know how much you need to pay over the lease period, so you have no ”interest rate risk”. Choose a variable rate contract instead and you take the full market interest rate risk, though you may be happy to do this if you think market interest rates are likely to fall. Fixed rate contracts are easy to administer and they make planning
simple. With variable rates you’ll never be sure how much you have to pay and you will have to check every charge because it will differ from the previous one. Before deciding whether to go for a fixed or variable deal, consider the replacement pattern of your fleet. If most of your vehicles are due to be replaced soon and you think interest rates are likely to fall in future, it makes sense to go for a variable rate deal. However, if your replacements will be spread fairly evenly over the next few years and you opt for fixed rate contracts, the fixed rates you pay will average out to be the same as the average of the interest rates across that period anyway, so you might as well opt for a fixed rate and keep the admin simpler.
If you do opt for a variable rate deal, the amount you pay will rise or fall with market interest rates over the life of the contract. The contract will specify a benchmark to use in the variable rate calculation, perhaps bank base rate, Finance House Base Rate or London Interbank Offered Rate. There is no one ”bank base rate”. Every bank publishes its own base rate. Clearing banks tend to move theirs in unison, but some smaller banks have higher base rates, reflecting their higher borrowing costs. So your variable rate contract will need to specify which bank’s base rate is to be used.
LIBOR LIBOR is the benchmark rate used by banks to borrow money from each other. If a major bank borrows from another major bank, it pays LIBOR plus a small margin. LIBOR moves frequently, often several times a minute, so your LIBORbased finance agreement needs to be very specific about how and when that LIBOR rate is to be calculated. It is not unusual to see agreements referring to ”LIBOR quoted at 10.00 a.m.”. To add to the complexity there are different Sterling LIBOR rates for different periods, e.g. ”overnight”, ”onemonth”, ”three-month” and so on. If your finance agreement calls the interest rate to be set and adjusted quarterly, it is likely that the three-month LIBOR rate will be used, as this will equal to the lender’s borrowing costs for that period.
FINANCE HOUSE BASE RATE (FHBR) FHBR is the average of three-month Sterling LIBOR rates in the money market over the previous eight weeks, rounded up to the next half point. It is published monthly by the Finance & Leasing Association (FLA) and is shown on their website www.fla.org.uk. So, for example, your vehicle finance hire purchase agreement might be priced at ”FHBR +3%”. The agreement will be very specific about how movements in will affect your repayments. As LIBOR is a nominal rate, so is FHBR. It is worthwhile considering here the difference between base rates and long term interest rates. Bank base rates reflect short term money market considerations and can change frequently according to macroeconomic pressures, e.g. changes in levels of government spending, concerns about the exchange rate, the inflation outlook, etc.
LONGER TERM INTEREST RATES Longer term interest rates, for example
one-year LIBOR, reflect what lenders and borrowers think market rates will be doing in the longer term. If they think that short term interest rates are low and are likely to rise, long term rates today will be higher than short term rates. Over the years I’ve heard many fleet managers ask why their lease rates haven’t fallen immediately after bank base rates have come down. A leasing company offering you a fixed rate deal over three years will normally borrow this money over three years to lock-in their cost of money over that period. Three year money cost will often be quite different from short term money costs, so there is no direct relationship between bank base rates and the lessor’s cost of funds. So if bank base rates rise or fall by, say, 1% there is no particular reason to expect leasing rates to rise or fall by 1%. If you enter into a variable rate lease, the lender will normally calculate your payments by using the fixed capital with variable interest method or the fixed rentals with annual adjustment method. I’ve also seen contracts where all the adjustments for interest rate movements have been done at the end of the contract, but this is rare.
FIXED CAPITAL WITH VARIABLE INTEREST RATE If you have a fixed capital with variable interest rate contract, you will make a fixed monthly capital repayment throughout the contract, as well as a monthly or quarterly interest payment based on the then-current market interest rates. An example may help here. The example ignores VAT and assumes that no balloon rental applies. For example, you agree to enter into a 3 year finance lease on a £36,000 vehicle at FHBR +4%. You will make thirty-six monthly payments in advance of £1,000. In addition, at the end of every month, you will pay interest. During the first month you owed £36,000 - £1,000 = £35,000. FHBR for that month was 2%, so FHBR + 4% equals 6% per annum, or 0.5% per month. As 0.5% x £35,000 equals £175, you pay £175 interest at the end of the first month at the same time as you make the second capital repayment of £1,000.
FIXED RENTALS WITH ANNUAL ADJUSTMENT If you have a fixed rentals with annual adjustment contract, the rental is calculated at the start of the contract, based on then-current market interest rates, and you will pay this throughout the lease. At the end of each year, the lessor
will calculate an annual adjustment to bring the amount you have paid into line with the actual performance of an interest rate index during the year. This is sometimes called the ”notional” basis. So for example, using the details in the example above, let’s assume you pay £1,150 per month for thirty-six months. If FHBR fell gradually during the year you will have paid more by the end of the year than was necessary. In the background the lessor would be tracking the amount overpaid and at the end of the year they would repay it to you. If FHBR had risen, you would have underpaid and would be charged the difference. As market interest rates fluctuate all the time, in some months you may owe money to the lessor and in others they may owe you, but the annual adjustment saves admin for both parties.
A & B FACTORS Next we will look at A & B Factors, which will mainly be of interest to you if you work for a leasing company. Lessors usually borrow to fund their activities. Large lessors, particularly bank-owned ones, get funds from their parent group and are told the cost. Smaller lessors use bank funding (back-to-back or undisclosed agency) on a deal-by-deal basis, paying a monthly amount and a terminal balloon amount equal to the expected residual value of the car. They may be financing hundred of cars each month, so it is not practical for them to ask the bank to quote the repayment required on each car. So a practical problem arises; how does the contract hire company know, on a carby-car basis, how much it will cost to finance the vehicles it buys? They could also quote the amount that would be repayable for each £1,000 financed. However, if two cars cost the same amount and had different residual values, the bank would need different balloon payments and would therefore expect different monthly rentals. Every make and model of car has a different expected residual value, and these change over time. The banks solve this problem by producing rate charts showing A and B factors (sometimes called Positive and Negative factors). The capital cost is multiplied by the A factor as step 1 of the repayment calculation. Residual value/balloon rental is multiplied by the B factor as step 2 of the repayment calculation. The result of step 2 is deducted from the result of step 1 and the net result is the monthly repayment that should be made to the bank.
April 2012
53
S E LLI N G
Tesco Cars closes order books Tesco Cars has closed after just 12 months of trading, blaming difficulties in vehicle supply. It had plans to offer 3,000 units – mostly ex-fleet stock – for sale each week, and managing director Douglas Rotberg told Fleet World last year that it had met its early sales forecasts. Announcing the closure, the firm said it was refunding the £99 handing fee taken for pre-orders, and was not accepting new customers. Vehicles with a set handover or delivery date will still be delivered to existing customers, and warranties will continue to be honoured by The Warranty Group. A spokesperson for Tesco told Fleet World: ‘We had a good customer response, it was very positive, but supply early on was difficult and Tesco wanted to deliver the best range for customers. Over time that would have improved, but right now it was important for us to focus on our core business, and that’s where we’ll be for some time.’ Set up in partnership with Carsite, and rebranding the company’s existing website, all vehicles sold through its Tesco Cars website were offered with an HPI check and RAC inspection. Tesco Cars is the third major online retailer to close in recent years having tried to cut out the “middle man” in vehicle sales. Autoquake went into administration after five years last March, just as Tesco entered the market, while former RBS subsidiary Jamjar.com closed for new orders in 2009.
High demand and low supply benefits premium values Stylish low-carbon newcomers to the premium SUV segment are faring well this month according to experts, with the Audi Q3 and Range Rover Evoque showing strong residual values as a result of limited supply and high demand. Richard Crosthwaite, prestige Audi Q3 car editor at Glass’s Guide, said: ‘It is not unreasonable to expect used asking prices to be “full up retail” for the first six months on the Q3 and to remain “best in class” for another 12 months after that, so long as supply remains sensible. ‘Pick of the crop for RV performance will be the 2.0d 140bhp models, especially with the recently announced inclusion of quattro on this base engine.’ But Q3’s strong performance has hurt sales of its closest rival. Crosthwaite said the BMW X1 has lost 4% of its value for the last two months, having stayed stable since its launch two years ago. Surprisingly, it has yet to affect demand for the larger Q5, which faces competition from relatively new BMW X3 and the Range Rover Evoque. Instead, Evoque and Q5 remain as the two strongest performers in their segment. Supply shortage is also pushing up values of compact executive vehicles, according to Manheim. Average values climbed 3.6% during March, while volumes declined from 14% to 10% of the total. Fleet and lease values are also high – BCA reports these are at their highest since January 2011, while Manheim says values were up 1.8% in February, caused by low supply of stock.
54
fleetworldgroup.co.uk
HOT... MINI The entire MINI range, except the Clubman and Countryman, are enjoying strong residual values despite ample supply of vehicles.
MPVs Traditionally a slow area of the market, MPVs enjoyed a resurgence last month, with values up 7.4% according to Manheim.
Motability Motability cars are in high demand as customers seek reliable sources of stock, pushing prices up.
NOT... Duty rise Rising fuel prices and the Budget are hurting demand and values for petrol-powered luxury cars and SUVs.
Compact MPVs Compact MPVs have yet to find a selling point against five-door hatchbacks, causing a cut in prices to make stock move.
Jaguar XJ It’s one of the most daring in its segment, but XJ is suffering due to high volumes, in turn caused by a lack of alternatives, and is now selling for less than the Audi A8.
advertisement feature
OPTIMA THE FINAL PIECE OF KIA’S FLEET PUZZLE 011 was a landmark year for Kia, as the continued range-wide product offensive contributed to global sales topping 2.4 million for the first time – figures which put the carmaker a step closer to its target of becoming one of the world’s ten biggest carmakers by the end of this year. The latest addition to the range is the desirable Optima, a coupe-like DSegment saloon built for the business user. Offering a stylish alternative to the segment’s mainstream models, it features Kia’s latest award-winning design language, with a prominent ‘tiger nose’ grille and a sophisticated, upmarket feel that extends from the driver-focused dashboard to its sleek body lines. Available now, the range starts at a
2
competitive £19,595, with four wellequipped trim levels to make it an easy addition to fleet choice lists. All are powered by Kia’s proven 134bhp 1.7-litre CRDi engine with the latest EcoDynamics fuel-saving technology (on manual transmissions) and CO2 emissions starting at 128g/km, while useful features such as Bluetooth, air conditioning and cruise control are included as standard. Like the rest of the Kia range, the appeal for fleets couldn’t be simpler. Aiming to make life as easy as possible, Optima is available for
It’s no wonder Kia is becoming the carmaker of choice for UK fleets
convenient seven-day test drives and comes backed by an industry-leading seven year, 100,000 mile bumper-tobumper warranty. Not only is it a sign that Kia believes in the long-term reliability of its products, but this fullytransferrable warranty has helped boost residual values too. And to make sure drivers are kept moving, a year’s KIAssist roadside assistance is included as standard. Optima joins a range that has enjoyed massive fleet success recently, with a 56% uplift in UK sales last year as more drivers found out just what makes our cars so appealing. Offering a range that caters for all needs, from city cars to large SUVs, it’s no wonder Kia is becoming the carmaker of choice for many UK fleets.
Contact the Kia Business Centre t 0845 121 0833 w kia.co.uk/fleet
MARKET OVERVIEW Contract Hire & Leasing
ALD Automotive
Arnold Clark Vehicle Management
The ALD Automotive group is the second largest vehicle leasing operation in Europe and manages over 900,000 vehicles across 37 countries worldwide. Within the UK ALD is widely recognised as one of the industry’s leading service providers, with a proven portfolio of award winning products for major plc’s, small businesses and individual drivers alike. With a reputation for delivering proactive and innovative vehicle management services, ALD has developed award winning risk management products such as DriveSafe and ProFleet2 in-vehicle telematics, complementing an established suite of online applications branded ‘threesixty’. ALD hold Investor in People, ISO 9001 and ISO 14001 accreditation.
Arnold Clark Vehicle Management is one of the UK's premier vehicle leasing companies. We’re a family run business – small enough to deliver a uniquely personal experience, yet big enough to deliver the professional fleet management you need. We are the largest dealer-based leasing company in the country and we have a characteristic no-nonsense business style. Because we're totally independent, you can always rely on us to provide unbiased advice. We've helped corporate clients, small businesses and government departments realise genuine savings and improvements in productivity. We listen, and we'd welcome the chance to work with you.
Contact: Mel Dawson mel.dawson@aldautomotive.com www.aldautomotive.co.uk
Tel: 0870 00 111 81
Days Contract Hire is a company with a proud history of service excellence and or providing discerning clients with carefully tailored bespoke packages. Whether it be the private or public sector we like to conduct business on a personal level, finding out the needs of the business as well as the drivers. Days can provide trusted advice based on our in-depth knowledge finding the most cost effective solution whatever the fleet size.
Tel: 0845 296 4423 www.dayscontracthire.co.uk
Grosvenor Contracts Leasing Limited is the UK’s largest independent contract hire and leasing provider, with over 30 years in the fleet market. As a contract hire and fleet management specialist, the company offers all aspects of vehicle funding and management services, including contract hire, finance lease, Salary Sacrifice, daily rental and Easi-Lease (Grosvenor’s short term hire product) incorporating a new two-tier pricing structure, accident management, fuel cards, risk management, grey fleet management, consultancy and policy advice and all of the services you would expect from a leading contract hire and fleet management provider.
56
fleetworldgroup.co.uk
Fleet Alliance is a leading UK fleet management provider, offering contract hire, leasing and a complete range of fleet solutions products. We are a UK fleet solutions provider, managing over 10,000 vehicles on behalf of corporate clients. We deliver a complete fleet solution via our market-leading Fleet 360 model which provides the best combination of advice, products, competitive pricing and outstanding service.
Contact: Grant Boardman grant.boardman@fleetalliance.co.uk www.fleetalliance.co.uk
Tel: 0845 601 8407
Inchcape
Grosvenor Contracts Leasing Limited
Contact: Mary Dopson sales@contracts.co.uk
Tel: 0845 603 4590
Fleet Alliance Limited
Days Contract Hire
Contact: Sharon Crocker contracthire@days.co.uk
Contact: Calum Ewart calum.ewart@arnoldclark.co.uk www.acvm.co.uk
Tel: 01536 536536 www.grosvenor-contracts.co.uk
Inchcape Fleet Solutions, part of Inchcape Group, the international automotive services supplier, is a unique provider of fleet management, contract hire and personal contract motoring services to major UK bluechip companies. Being independent of any manufacturer or banking institution means they provide truly impartial advice best suited to their customers’ needs. Inchcape Fleet Solutions commitment to ‘quality of service’ places an emphasis on building long-term relationships with their customers, suppliers and employees. Their extensive experience within the automotive services market ensures that they are value driven, focused and efficient. They use innovative and award winning ‘client extranet’ technology to deliver on-line fleet management solutions for customer fleets and their drivers.
Contact: Marc Garrett contactus@ifs.inchcape.co.uk www.ifs.inchcape.co.uk
Tel: 08433 161 555
Approximately how many vehicles does your company operate?
Will you provide a bespoke Internet/Intranet site for major clients?
Do you offer an open disclosure/profit sharing option?
Do you offer bespoke total cost of ownership?
Do you offer integrated telematics solutions?
Do you offer an ECOS / ECOP scheme?
Do you have a dedicated phone-based facility for small fleets?
Do you offer an online solution for managing a grey fleet?
Do you offer a dedicated account management team?
Do you offer a salary sacrifice scheme?
Do you offer pooled mileage as standard?
Do you offer a fleet management option for non-funded vehicles?
FLEETW RLD
ALD Automotive
73k
Arnold Clark Vehicle Management
41k
-
-
-
Days Contract Hire
8.7
-
-
-
-
Fleet Alliance Limited
10k
-
-
-
Grosvenor
9.5k
-
-
Inchcape
46k
-
Leasedrive Group
40k
-
-
Pendragon Contracts
12.5k
-
Venson Automotive Solutions Limited
11.5k
-
Volkswagen Group Leasing
49k
-
-
-
-
Zenith
36k
-
Key to services
Service provided
-
Service unavailable
Pendragon Contracts Pendragon Contracts provide a consultative, flexible and solutions-driven approach tailored to every corporate customer’s individual needs. We can provide consultancy on Whole Life Costs resulting in considerable savings for our clients. Our products and services include contract hire, salary sacrifice car schemes, discounted vehicle supply, online vehicle fleet management, vehicle recovery, risk management, accident management, tyre provision, glass replacement, fuel provision, daily hire and telematics.
Contact: John Given Tel: 01332 292 777 john.given@pendragon.uk.com www.pendragon-contracts.co.uk
Venson Automotive Solutions Limited Independent Venson Automotive Solutions provides a diverse portfolio of services – traditional company vehicle funding and fleet management to accident management, vehicle equip-for-service, workshop and body shop management - to companies and organisations within the public, private, not-for-profit and emergency service sectors. Its fleet solutions are believed to be unique in the industry as they are delivered through Venson’s own operations across the UK and not third party providers. Venson believes in true partnership and treats each of its customers as if they are the only customer. Testimony to this is the customer retention rate of over 98%.
Contact: Alan McCleave sales@venson.com
Tel: 08444 99 1402 www.venson.com
Volkswagen Group Leasing Yes we deal with finance, with fleets, with leasing. But we're also more than that. We're the fleet company that has a different way of doing things. We're not just about the numbers and giving customers what they expect – we're about giving them more than they expect. We're about super-quick response times, providing every make and model of vehicle and customer service that doesn't just tick boxes, but creates a whole new customer experience. It's our unique range of products and services that makes us better than the norm. Because sometimes it's being different that makes all the difference.
Contact: Tim Johnson vglenquiries@vwfs.co.uk
Tel: 0870 333 2229 www.volkswagengroupleasing.co.uk
April 2012
57
FLEET UPDATE
This month Our Optima gets in a scrape and will the Budget help the petrol Mondeo’s fleet position?
Kia Optima 2 Tech 1.7 CRDi
Ford Mondeo Zetec 1.6 EcoBoost
The Optima has been a popular addition to the Fleet World long-term list with almost all staffers now having had some time behind the wheel. And I have to echo their praises. It’s a fantastic car. At the top of the list is the way it looks. Kia has really improved its family styling, and the Optima looks great against rivals. This can be a conservative part of the market against the stylish latest offerings in the MPV and crossovers segments, and Kia has done well to make it stand out. This means it’s very capable of turning heads. I’ve had a few people stop me in traffic to ask what it is, and one man out walking said he was glad to see Kia had brought it to Europe at last, as he’d seen plenty while working in Korea. It’s talents are not just skin deep. The Optima uses very little fuel, it’s incredibly comfortable and luxuriously specced for motorway miles and feels very solid and safe at high speeds. Tech models, such as ours, get a clear reversing camera with a feed to the satellite navigation unit, which is also very useful. Unfortunately while it’s been good at saving us from our own mistakes, it’s had a bit of bad luck caused by another road-user this month. On a narrow road near the Fleet World office, an oncoming driver misjudged the space available and drove into our Optima. Thankfully it was a low-speed bump so nobody was injured and the damage is superficial, with scuff marks down both driver’s doors and the rear wing. So it won’t be long before the car is back to its former glory, but until then it’s looking rather sorry for itself.
Anne Dopson
With the Budget behind us and another tax year about to dawn, it seems appropriate to consider what the tax man would extract from a company car driver choosing this Mondeo as a company car and then make the comparison that other drivers might make between it and the otherwise identically specced 1.6 TDCi diesel model. For convenience, I’ve dropped the results, using the HMRC online BIK tax calculator, into the table below. I’ve assumed that the car is available for the whole of the 2012/13 tax year, that the employee makes no capital contributions or payments towards private use, but pays for private fuel. Cost
1.6 Ecoboost
1.6 TDCi
Car benefit charge
£4,169
£3,527
Tax liability (20%)
£833.80
£705.40
Tax liability (40%)
£1,667.60
£1,410.80
Either way, the TDCi diesel shows a tax advantage, although we should factor in other considerations too. There is a £1,200 difference in purchase price for a start, £20,845 for the Ecoboost compared with £22,045 for the diesel. Add fuel costs too, based on 20,000 miles a year and the official EU combined figures, with fuel at £1.40 for petrol and £1.46 for diesel, that would cost some £2,164.50 or £1,515.15 a year respectively, so although the diesel still appears to have the edge on fuel cost, the price difference would have a bearing on leasing costs. To put that to the test, I called up both models using the Ford Retail Group’s online leasing calculator. A Mondeo Ecoboost estate would cost £275.06 (ex-VAT) per month on a 36 month, 15,000 mile per year lease with maintenance, or £286.40 (ex-VAT) for the TDCi equivalent. £11 per month might be neither here nor there, although the fuel cost works out at around £54 per month less for the diesel. It doesn’t stack up as a strong case for the Ecoboost model, but it’s not the ”No-Brainer” for diesel that it would have been a few years ago.
John Kendall OTR PRICE £21,695 POWER 134bhp @ 4,000rpm
OTR PRICE £20,845 POWER 160bhp @ 5,750rpm
TORQUE 239lb.ft @ 2,000-2,500rpm 0-62MPH 10.2 seconds
TORQUE 117lb.ft @ 4,000rpm 0-62MPH 9.6 seconds
TOP SPEED 125mph COMBINED MPG 57.6mpg
TOP SPEED 130mph COMBINED MPG 44.1mpg
CO2 128g/km (19% BiK)
CO2 149g/km (19% BiK)
58
fleetworldgroup.co.uk
Jaguar XF 2.2 Diesel Portfolio When the Car of the Year judges sit down to pontificate over which gleaming new model will take the crown, they have to take into account any number of factors – engineering, emissions, driver appeal, etc. A simpler but arguably more user-friendly gauge I have devised over the years is the extent to which the man in the street comments, looks or stares. Our XF long-termer had to pay an unexpected visit to the local fast-fit centre recently, courtesy of a three-inch nail (how do nails which are lying on the ground manage to penetrate a tyre at 90 degrees?). Like most tyre bays it was staffed by youngish lads who know a thing or two about cars and it is fair to say that the XF proved to be more interesting to most of them than replacing rubber. Several other customers joined in and I found myself hurriedly trying to recall the technical data in the (mercifully succinct) press pack. Power, torque, drivetrain configuration, handling… the lot! Motoring journalists can get a bit blasé about the cars they are test driving and it can be a bit trying when a posse forms around a new car, bent on finding out every scrap of information. In Strasbourg I had to abandon a VX220 turbo for 10 minutes to allow a party of Japanese tourists to examine every minute detail. In Germany I crossed the Rhine by ferry in one of the first production Vectras and was besieged for 20 minutes by inquisitive engineers. To me, what it says is that interest in cars is as strong as it ever was. And interest in the XF remains high as the design approaches its fifth birthday. That hopefully translates into strong demand for the car in the secondhand market and good resale values for fleet operators. It is often said that manufacturers and dealers don’t just sell a car once – they sell it two or three times. In the case of the XF, I could have sold it 10 times.
Ross Durkin
Renault Grand Scenic dCi 110 EDC Auto
The trouble with leaving longer than the usual two years between having kids is that you don’t realise until the new one comes along how much easier your life had previously been. In my household that means that time is at a premium these days. And that’s how come I know just how quickly I can convert the Grand Scenic from five-seater to seven-seater mode and vice versa. Over the last few weeks, sudden changes of plan calling for the MPV’s extra seats have led to some impromptu and speedy, conversions of the car. So as a result, I now know that I can clear out all the stuff in the boot, pull the third-row seats up, adjust all three rows to optimise legroom, put in the kids’ car seats and put all my paraphernalia in the leftover boot space, all in the grand sum of four minutes. Such quick conversions have meant that I’ve been able to argue the case for using one car instead of two on several occasions now. And it’s certainly keeping me fit – who needs the gym? It’s as a result of the aforementioned racing around that I’ve now got over my OCD about not locking the car manually and am happily relying on the keycard’s automatic locking. It’s not until you have no free hands that you realise just how useful automatic locking is. However, it would help my paranoia if the wing mirrors folded in when the car locks like they do when you manually plip it. And in terms of day-to-day practicality I remain very happy with the Grand Scenic. The only gripe I’ve found lately is with the diesel fuel filler. It’s designed so you can’t misfuel – handy but it seems impossible for me to pull the nozzle out without spilling fuel down the side. So given the heinous price of fuel – and concerns over the paintwork – it’s the one thing I take some time over, no matter how much the kids are screaming!
Natalie Wallis OTR PRICE £32,100 POWER 175bhp @ 4,200rpm
OTR PRICE £22,300 POWER 108bhp @ 4,000rpm
TORQUE 280lb.ft @ 1,750-2,500rpm 0-62MPH 9.0 seconds
TORQUE 177lb.ft @ 1,750rpm 0-62MPH 13.3 seconds
TOP SPEED 138mph COMBINED MPG 56.5mpg
TOP SPEED 112mph COMBINED MPG 60.1mpg
CO2 132g/km (19% BiK)
CO2 124g/km (18% BiK)
April 2012
59
FLEET UPDATE
Audi A6 Avant 2.0 TDI SE manual
I’ve had a couple of discussions with those nice people at Audi recently about the brand, and where it currently sits. For I remember the previous A6, when it was launched, was viewed as being a rung below BMW and Mercedes-Benz in terms of image and desirability. Certainly leasing companies and the residual value guides priced it in that way. Probably the Avant version got closer to its 5 Series and E-Class competitors than the saloon, but nevertheless there was still a difference in most buyers’ minds. Not so any more. Audi's growth has been incredible, and its new UK MD Martin Sander told me the other week that he thinks 150,000 units a year is achievable, a benchmark that would show how far the brand has come. And that’s reflected in the predicted residual values of the current cars. For entry level estates, our A6 long termer, the 520d SE and E220CDI SE have pretty much the same on-the-road price, and exactly the same three-year/60,000 mile RV prediction, at 35% of the value new, according to CAP. Pence-per-mile wise, they are all exactly the same too, and 51ppm. There’s almost nothing in it in tax terms either. However, going forward the CO2 emissions in this sector are beginning to get daft, albeit mainly for saloon cars, with the 520d ED at 119, and the new E-Class hybrid offering 109. Of the three though, I would choose the BMW first as it’s better to drive and more comfortable, with the Audi a close second. The Mercedes-Benz is a nicer car when specced little higher, with an auto box. But it’s a great choice to have. The fact that Audi is on a par with the other two is an incredible achievement. Don’t forget no other brand has managed to get to their level – and Jaguar, Lexus, Alfa Romeo, Volvo and others have all tried with varying degrees of success – and it’s less than 20 years since Audi set out on this journey. I wonder if Audi will pull ahead over the next decade?
Volkswagen Tiguan Sport 2.0 TDI 4Motion First impressions count for a lot in the motoring industry. Good or bad, the things drivers notice first tend to be the bits they like or loathe the most, so it’s always interesting for me personally to take note of what strikes me when I get into a car. In the Tiguan, it sounds cliché to say, but it’s a fantastic feeling of class-above build quality. And that’s just as well, because the compact SUV or crossover segment is pretty crowded, and it’s becoming increasingly hard to stand out. Certainly Volkswagen’s small SUV does nothing to offend. It’s wearing its subtle facelift well, and though there’s a lot of unembellished rhino-skin plastic inside, you get the feeling that it’s going to be just as rattle-free at the end of its time on fleet as it does when it arrives. That same feeling extends to the driving experience. The ubiquitous 2.0-litre diesel in 138bhp form isn’t a unit that sets fingers tingling, but it’s smooth, quiet and efficient and suitably effortless at motorway speeds, which is exactly what you want in a car like this. Add in the reassurance of winter-proof 4Motion four wheel drive, car-like ride and handling, a positive and mechanical gearchange and steering that’s on the money in terms of weighting and it stacks up well. Negative points involve hole-picking. Sport trim, the most popular in the UK, doesn’t come with parking sensors as standard. It’s a feature I hadn’t thought to option when we specced the car last year, and though it’s not a dealbreaker for me, but other staffers have lamented their absence. Also at the back, boot space is good and benefits from a square rear end, but isn’t particularly wide, which can make it fiddly to get large loads (a set of winter tyres in my case) inside.
Alex Grant
Steve Moody OTR PRICE £32,100 POWER 175bhp @ 4,200rpm
OTR PRICE £24,370 POWER 138bhp @ 4,200rpm
TORQUE 280lb.ft @ 1,750-2,500rpm 0-62MPH 9.0 seconds
TORQUE 236lb.ft @ 1,750-2,500rpm 0-62MPH 10 seconds
TOP SPEED 138mph COMBINED MPG 56.5mpg
TOP SPEED 120mph COMBINED MPG 53.3mpg
CO2 132g/km (19% BiK)
CO2 139g/km (21% BiK)
60
fleetworldgroup.co.uk
FLEETW RLD
SUPPLIER DIRECTORY
AUCTIONS & REMARKETING
ACCIDENT MANAGEMENT
RISK MANAGEMENT
DAILY RENTAL
FLEET MANAGEMENT SOFTWARE
BCA Tel: 0845 600 66 44 www.british-car-auctions.co.uk
Total Accident Management Tel: 0845 078 4157 www.totalaccman.co.uk
Roadmarque Tel: 0845 053 0331 www.roadmarque.com
Alliance Asset Management plc Tel: 01480 475000 www.fleetcentre.com
Drive Software Solutions Tel: 01438 317731
VEHICLE DATA
ELECTRIC VEHICLES
International Decision Systems Tel: 01256 302 000 www.idsdata.co.uk
EV FLEET WORLD Tel: 01727 739160 www.evfleetworld.co.uk
Peak Performance Tel: 01246 244200 www.peakperformance.net
DRIVER LICENCE CHECKING
FAST-FITS & TYRES
Jaama Tel: 0844 8484 333 www.jaama.co.uk
ATS Euromaster Tel: 0121 325 8842 www.atseuromaster.co.uk
White Clarke Automotive Solutions Tel: 0870 787 2211
www.drivesoftwaresolutions.com
cfc solutions Tel: 0121 717 7444 www.cfcsolutions.co.uk
www.whiteclarkegroup.com
Cardinus Risk Management Tel: 01733 426015
Arnold Clark Car and Van Rental Tel: 0845 702 3946
www.cardinusfleet.com
www.arnoldclarkrental.com
MAC GB Ltd Tel: 01745 828180 www.reduceroadrisk.com
Nexus Vehicle Management Ltd Tel: 0871 984 1947 www.nexusrental.co.uk
AA DriveTech Tel: 01256 495732
Leasedrive Rental Management Tel: 0844 579 8877 www.leasedrive.com
Jaama Tel: 0844 8484 333 www.jaama.co.uk
Bynx Tel: 01789 471600 www.bynx.com
Mycompanyfleet Tel: 0845 077 7760 www.mycompanyfleet.co.uk
White Clarke Group Tel: 01908 576 605 www.whiteclarkegroup.com
CONTRACT HIRE, LEASING & FINANCE CBVC Vehicle Management Tel: 01283 509177 www.cbvc.co.uk
Arnold Clark Vehicle Management
Tel: 0845 603 4590 www.acvm.co.uk
www.AAdrivetech.com/fleetsafe DriveTech
Alliance Asset Management plc Tel: 01480 475000 www.fleetcentre.com
Professional Driver Services Tel: 0871 200 2217 www.pdsuk.co.uk
Europcar Tel: 01923 811250 www.europcar.co.uk
Days Contract Hire Tel: 0845 296 4423 www.dayscontracthire.co.uk
Venson Automotive Solutions Tel: 08444 99 1402 www.venson.com
IAM Drive & Survive Tel: 0870 120 2910 www.iamdriveandsurvive.co.uk
Enterprise Rent-A-Car Tel: 01784 221 300 www.enterprise.co.uk
Chevin Fleet Solutions Tel: 0800 093 6606 www.chevinfleet.co.uk
Alphabet (GB) Limited Tel: 0870 50 50 100 www.alphabet.co.uk
LeasePlan UK Ltd Tel: 0844 493 5810 www.leaseplan.co.uk
RAC Risk Management Tel: 0870 606 2606
Budget Rent-a-Car Tel: 0844 5338 08701544 56 56 56 www.budget.co.uk
Enterprise Software Tel: 0161 925 2400 www.essl.co.uk
Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk
Leasedrive Tel: 01344 466 466 www.leasedrive.com
Volkswagen Group Leasing Tel: 0870 333 2229 www.volkswagengroupleasing.co.uk
www.racfleetriskmanagement.co.uk
For more information, please contact Tracy Howell on 01727 739160 or email tracy@fleetworldgroup.co.uk FUEL MANAGEMENT
Full listings online at fleetworldgroup.co.uk The leading magazine for fleet decision-makers
January 2012
TELEMATICS & TRACKING
The Fuelcard People Tel: 0844 870 9856 www.fleet-fuelsavings.co.uk
TOTALCARD Services Tel: 0800 147 148 www.total.co.uk
TRACKER Network UK Limited Tel: 0845 602 3981 www.TRACKER.co.uk
Telogis Tel: 01344 747638 www.telogis.co.uk
Shell Fuelcards Tel: 0800 7 31 31 37 www.shell.co.uk/euroshell
BP PLUS Fuel Cards Tel: 0845 603 0723 www.bpplus.co.uk
Trakm8 Tel: 01747 858 444 www.trakm8.com
Navman Wireless UK Ltd Tel: 0845 521 1188 www.navmanwireless.co.uk
Esso Fuel Cards Tel: 0800 626 672 www.essocard.com
The Fuelcard Company Tel: 0845 073 0873 www.fuelcards.co.uk
TomTom Business Solutions Tel: 020 7255 9774 www.tomtom.com/business
Quartix Ltd Tel: 0870 013 6663 www.quartix.net
DIARY DATE
FLEETW RLD
18/4/2012 Visit evfleetshow.co.uk for more information and to register for the event
inside Seoul Searching
Leasing trends
Hyundai plans major fleet push
Is the contract hire industry due more change?
driving towards lower fleet emissions
Stars of 2012 Featuring all the essential new cars launched this year
fleetworldgroup.co.uk
April 2012
61
VAN
fleetworldgroup.co.uk
FLEETW RLD April 2012
‘Car-like to drive and a range of efficient diesels add to New Combo’s attractions.’
April 2012
63
A MONTH IN FLEET A skip through the key news and events since the last issue of VAN Fleet World. Edited by John Kendall. Sign up to our FREE digital magazine Fleet World Confidential... visit fleetworldsubscriptions.co.uk
CONFIDENTIAL
INCENTIVES NEEDED FOR EVs
FITNESS FIRST GOES SOLUS WITH CITROEN
The British Vehicle Rental and Leasing Association (BVRLA) says that Government and van manufacturers are going to have to introduce long-term incentives and price cuts if they hope to create a sustainable market for ultra-low emission vans. The remarks come in the wake of a report commissioned by the Department for Transport examining the market potential for ultra-low emission van technologies. The report found that the current cost of ownership for pure EV large vans is more than 50% higher than a diesel-engined equivalent. It says that 10% is the maximum cost of ownership premium that van operators are willing to accept, with many unwilling to pay any additional amount. ‘This well researched report is a massive wake-up call for electric van makers and Government,’ said BVRLA chief executive John Lewis. ‘The Government has put its money where its mouth is by delivering the Plug-in Van Grant and other tax incentives, but it needs to give operators confidence that these will be more than short-term measures. ‘And van makers must join the party. Rather than relying on government grants to discount their vehicles, they need to produce some serious price cuts. Their current business model doesn’t work,’ he said.
Health and fitness operator Fitness First has moved to a completely Citroen fleet, with the addition of 23 Euro5 Berlingo vans. The vans will be used by maintenance technicians, travelling between 150 Fitness First and Klick Fitness gyms across the UK. Supplied by Fleethire, the vans are custom racked and lined, with a vice that slides out of the rear door on a support beam, providing a stable work station for cutting and drilling. The vans are being operated on a 48-month/80,000-mile Fleethire with maintenance contract hire agreement. ‘Our move to an all-Citroen LCV fleet reflects our satisfaction with Citroen and Fleethire,’ says Glyn Allen, head of contracts at Fitness First. ‘Fitness First is actively engaged in reducing its energy consumption and carbon emissions. Our new Berlingo vans meet the company’s demanding environmental, operational and financial requirements.’
track and save Our latest research has found that amongst fleets using vehicle tracking: G
More than two thirds have reduced fuel consumption by an average of 8.6%
G
Over half have reduced overtime payments by an average of 15.3%
G
More than a third have reduced communication costs by an average of 13.3%
Other benefits included reduced insurance premiums, administration costs, fleet size and head count. Contact Ctrack to find out what our intelligent solutions can save for you. www.ctrack.co.uk info@ctrack.co.uk
0845 055 8555
A MONTH IN FLEET A skip through the key news and events since the last issue of VAN Fleet World. Edited by John Kendall. Sign up to our FREE digital magazine Fleet World Confidential... visit fleetworldsubscriptions.co.uk
FIESTAVAN GOES LOW
IVECO DAILY FOR TNT
Ford has updated its FiestaVan, resulting in a drop in CO2 emissions of 12% to just 87g/km, and improving the fuel economy to 85.6mpg (EU combined). The FiestaVan ECOnetic, which costs from £12,215, uses Auto-Start-Stop, revised gear ratios, smart regenerative charging, and an EcoMode. It also comes with an improved efficiency cooling fan, alternator and air conditioning, plus a revised 94bhp 1.6TDCi engine. In addition the ECOnetic van gets low rolling resistance tyres, an aero pack, a variable flow oil pump and a shift indicator light.
Delivery company TNT Express has added 10 Iveco Daily 50C15 light trucks to its fleet. The 5.2 tonne chassis are supplied with Cartwright dry freight box bodies and TNT is trialling the vans as a lightweight alternative to traditional 7.5 tonne trucks. The 10 Dailys will operate six days a week for the next five years, covering around 30,000 miles per year. The trucks are powered by a Euro5 3.0 litre diesel engine delivering 144bhp and 258lb.ft of torque. ESP9 is standard on all new Daily models, incorporating a range of electronic driver aids. ‘Our depots in Bradford and Nottingham will be putting this initial batch of 10 Dailys through their paces on demanding pick-up and delivery routes, where each vehicle will make around 100 collections and deliveries per day,’ says national engineering manager Steve Davis. ‘Despite its smaller size we’re achieving a competitive payload capacity of up to 2.1 tonnes.’
OLYMPICS DISRUPTION Fleet managers have been warned that the Olympic Games and Paralympic Games will cause disruption on the roads around London and other venues around the country throughout JulySeptember. Speaking at an Olympic Seminar, held at Ford’s Brentwood headquarters, Ian Wainwright of Transport for London warned that the Government would like to reduce non-Olympic travel by up to 30% during the Games. He suggested that fleets should practice the 4Rs – reduce, reschedule, re-route and revise travel. Certainly advanced planning will be essential, with more than 800,000 spectators and 55,000 athletes organisers and members of the press travelling to and from Olympic venues every day. Fleets were also reminded that thousands of short-term rental vehicles will have already been booked, making short-term hire options limited or possibly completely unavailable. ‘There are less than 140 days to go until the opening ceremony and doing nothing is not an option for fleet chiefs,’ said Julie Jenner, ACFO chairman. ‘However, anecdotal evidence suggests that many employers have under estimated the impact that the Olympics and Paralympics will have on their businesses. ‘Whether it is staff travelling to and from offices, goods being delivered or collected, or meetings and appointments being held there will be disruption.’
66
CONFIDENTIAL
fleetworldgroup.co.uk
SKY’S THE LIMIT FOR VAUXHALL VIVAROS Belfast-based Fleet Financial has delivered 70 customised Vauxhall Vivaro vans to Sierra Support Services, working as part of Sky TV’s installation and service team. Wrapped in Sky’s familiar Simpsons and Sky HD liveries, the £2million fleet will cover all of Northern Ireland. Each of the Vivaro’s is powered by the 113bhp version of the 2.0CDTi engine. The vans have been supplied with shelving, roof racking and graphics in a three-year deal. ‘Rather than supply a number of different makes and model of van, we were able to deliver 70 identical vehicles, a vital selling point,’ says Jim Humphreys, of Fleet Financials. ‘We’re confident of the vans’ capabilities, the servicing costs and the lack of down time through reliability issues.’
ISUZU D-MAX PRICES ANNOUNCED Isuzu UK has announced prices for the D-Max pick-up that will be launched at this year’s CV Show. The Euro 5 compliant truck, available in both 4x2 and 4x4 models, will go on sale from June. Prices start at £14,499 (CVOTR) for the single cab 4x2, rising to £21,499 for the top of the range Utah specification 4x4 double cab. All D-Max models are powered by a 2.5-litre twin-turbo diesel engine delivering 161bhp and 400Nm of torque. Drive is transmitted through either a six-speed manual or a five-speed automatic transmission with shift on the fly four-wheel drive capability. The Isuzu has a carrying capacity in excess of 1 tonne and a 3 tonne towing capability. Specifications are high, with even the basic 4x2 single cab model having air conditioning, daytime running lights, electric windows and front, side and curtain airbags.
35% MORE AFFORDABLE THAN A DIESEL*. TIME TO SWITCH.
With diesel prices at an all-time high, isn’t it time you switched? The 100% electric Renault Kangoo Van Z.E. is now eligible for the new Plug-in-Van government grant, meaning prices start from just £13,592 excluding VAT and On The Road charges. And with lower running costs, zero road tax and exemption from the Congestion Charge, it’s up to 35% more affordable to own than an equivalent diesel van (10% if you operate outside London). Oh, did we mention it’s also International Van of the Year and What Van? Van of the Year 2012? To find out more, visit renault.co.uk/kangooze or visit your local dealer.
DRIVE THE CHANGE Business users only *Saving is based on 4 years and 10,000 miles per year. For full details of saving calculation please refer to renault.co.uk/kangooze Battery hire cost for 4 years and 10,000 miles per annum at £67 per month (excluding VAT). Official range of 106 miles according to the NEDC combined cycle. From price, after 20% Plug in Van grant deduction, starts from £13,592 plus VAT, delivery (£595) and first registration fee (£55). Vehicles are covered by a warranty package for up to 48 months. The first 2 years are unlimited mileage, followed by a further 2 years up to 100,000 miles. Please see the warranty terms and conditions (renault.co.uk/warranty) for further details. Servicing offer covers cars for 4 years or 48,000 miles and vans (excluding the Debut range) for 4 years or 80,000 miles, whichever comes first. Services must be carried out in line with the manufacturer’s minimum maintenance programme requirements and servicing intervals, and can only be carried out at a Renault Approved outlet. Renault Assistance Roadside Cover is provided in association with the AA. Cover from month 0 to 36 includes assistance at the roadside and home, national recovery, onward travel and European cover. Cover from month 37 to 48 includes Roadside and Homestart (including a local tow to an authorised Renault dealer). The provider of this cover is the Automobile Association Limited. For Finance, guarantees and indemnities may be required. You must be at least 18 and a UK resident (excluding the Isle of Man and Channel Islands) to apply. Finance provided by RCI Financial Services Limited, PO Box 149, Watford WD17 1FJ. Available at participating dealers only. Not available in conjunction with any other schemes or finance offers, please check with your local dealer for information. Offers are available to retail and business customers (but exclude fleet customers with own terms), and are valid on new vehicles, at point of new vehicle registration, when ordered from 1st February 2012 until further notice. Visit renault.co.uk/4plus
MOVANO
NO JOB TOO BIG Big, strong and versatile enough to handle any task. Movano is designed for tough business conditions. With more flexibility and choice than ever before, there’s No Job Too Big for Movano. • 4 vehicle lengths, 3 roof heights • Payload up to 2500kg, towing capacity up to 3 tonnes • FWD, RWD or twin-rear wheel RWD
COMMERCIAL VEHICLES The Wheels of Business
For more information visit www.vauxhall.co.uk/vans
DRIVEN
Vauxhall Combo
Words Dan Gilkes
specification MODEL BASIC PRICE ENGINE FUEL INJECTION POWER TORQUE
Vauxhall Combo £13,855 4-cyl/1,248cc Common-rail 89bhp @ 4,000rpm 148lb.ft @ 1,500rpm
Weights (kg) GVW
2,020
KERB WEIGHT PAYLOAD
1,270 750
MAX TRAILER WEIGHT Dimensions (mm) LOAD SPACE LENGTH LOAD SPACE WIDTH
1,000
LOAD SPACE HEIGHT WIDTH between wheel arches
1,305 1,230
LOAD HEIGHT (unladen) LOAD VOLUME
545 3.4m3
1,820 1,714
Cost considerations FUEL TANK CAPACITY 60 litres COMBINED MPG 56.6mpg CO2 emissions 133g/km OIL CHANGE 1 yr/21,000 miles WARRANTY 2 or 3 yr/60,000 miles or 1 yr unlimited
70
fleetworldgroup.co.uk
GM announced that the replacement Vauxhall Combo would be based on the Fiat Doblo light CV range last year. The two companies have a history of collaboration, although that unravelled a few years ago. Indeed the Doblo and Combo have shared the jointly developed Fiat/GM 1.3-litre diesel for some time. Like the Doblo, the latest Combo is available with two wheelbase lengths, two heights, gross weights of 2,000kg and 2,300kg and four diesel engine options. Long wheelbase L2 models offer load volume capacity of up to 4.2m3, with up to 3.4m3 available for short wheelbase L1 standard roof H1 models. High roof H2 L1 models offer up to 4.0m3 of load space, a L2H2 model is not available. L1 models are available with a rear roof flap allowing long loads such as ladders or pipes to be carried. Payload ranges between 750kg and 1,000kg, the highest payload available in its class. It also offers a towing capacity between 1,000kg and 1,500kg. All engines are equipped with automatic engine stop and start. The entry-level engine is the jointly developed GM/Fiat 1.3-litre common rail diesel producing 89bhp, and this is expected to be the best seller in the short wheelbase model. There is also a 89bhp variant of the 1.6-litre common rail diesel, but this is only equipped with an automated fivespeed gearbox. Opt for the 1.6-litre 105PS engine or range-topping 2.0-litre 135PS engine and six-speeds are standard. Choose the ecoFLEX 1.3-litre for fuel consumption between 57.6mpg/129g/km CO2 and 58.9mpg/126g/km CO2. All Combos will only need servicing every 21,000 miles. Standard kit includes electric windows, electric power steering, central locking and a steel front bulkhead. Vauxhall hopes to introduce a combi variant later on. Not surprisingly, the load space is identical to the Fiat Doblo and since Fiat has
maximised the available space by providing a large squared off body, arguably at the expense of looks for the vehicle, the Combo offers a good range of loadspace options. With that, the payload available is the greatest in class at 1,000kg, comparable with many vans one size larger, but in the footprint of a vehicle that you could easily fit on your drive. That spaciousness also extends to the cab. Larger drivers won’t feel they are sitting in a tight space, which can be a trade-off for vans in this class with a standard full height steel bulkhead. The wide body gives plenty of space around the driving position and the bulkhead does not restrict seat movement either, even tall drivers should find they are well provided for. Inevitably it will be the lower powered 1.3 and 1.6-litre engines that will be the choice for fleet managers, rather than the range topping 2.0-litre 133bhp variant. The 1.3-litre engine has been around long enough to have proved itself and 89bhp will provide all the power needed for most operators. The 1.6-litre 104bhp variant is a good compromise for those running at higher weights, since it can still deliver acceptable fuel consumption. One of the advantages of the full height bulkhead is that noise levels in the cab are low and drivers are not subjected to the inevitable levels of noise that would come with an open cab. Then there are the safety issues. A full steel bulkhead will protect the cab occupants far better against inadequately secured loads shifting in an emergency. There’s much to like about the new Combo from a driver and fleet manager’s perspective.
verdict A large body and high payload capacity help to make the latest Combo a flexible fleet van. It is also car-like to drive and a range of efficient diesels add to the attractions.
DRIVEN
DFSK Loadhopper
Words Dan Gilkes
specification MODEL Loadhopper single cab dropside BASIC PRICE £6,999 ENGINE FUEL INJECTION POWER TORQUE
1.3 litre 16V petrol Petrol injection 76bhp @ 6,000rpm 75lb.ft @ 3,000rpm
Weights (kg) GVW
1,865
KERB WEIGHT PAYLOAD
958 907
MAX TRAILER WEIGHT Dimensions (mm)
600
LOAD SPACE LENGTH 2,240 LOAD SPACE WIDTH 1,420 Cost considerations FUEL TANK CAPACITY 40 litres COMBINED MPG 36mpg CO2 emissions 184g/km OIL CHANGE 1 yr/9,000 miles WARRANTY 3 yr/60,000 miles
With a number of Chinese vehicle manufacturers starting to arrive in the UK, light commercial vehicles are very much in the sights of at least one company. The Loadhopper range of minivans is produced by DFSK, a joint venture between Dongfeng Motor and Sokon. Loadhopper vehicles are imported and distributed in the UK and Ireland by Vestatec Automotive Distribution. The company is headed up by former Mitsubishi UK boss Jim Tyrrell, so the company is well placed to make progress in the UK market. Vestatec is currently building a substantial dealer network, with 31 of a planned 40 outlets already signed up, with the intention of selling 5,000 minivans a year by 2016. By 2020, the company plans for sales to rise to around 20,000 vehicles a year. There is a four-model range of Loadhopper minivans initially, including a panel van, a single cab dropside pick-up, a double cab pick-up and a tipper. All Loadhopper models are powered by a 1.3-litre 16V petrol engine delivering 76bhp. They drive through a five-speed manual gearbox to the rear wheels and return a claimed 36mpg with 184g/km CO2 emissions. The UK has traditionally been a reasonable market for the minivan concept, with 6-7,000 Suzukis, Bedfords and Daihatsus sold in 2005. However, the market has dropped away and Loadhopper has the sector pretty much to itself at present. Is there a demand for small low priced vans in the UK? The single cab dropside sells for £6,999 plus the VAT, the van costs £7,999 and the tipper is £9,999. The double cab will also cost £9,999, but as it cannot carry 1 tonne, there is no opportunity to reclaim VAT on this model. The single cab can carry 907kg, while the van offers a payload of 548kg. The tipper takes up to 665kg and the double cab 740kg. The Loadhopper van has a load volume of 3.2m3.
The only option from the factory at present is silver metallic paint, although other colours will be available in the future. In the UK dealers will be able to provide an approved alarm, audio upgrades, alloy wheels, load liners and floor mats. The compact Loadhopper van comes with twin sliding side doors and a rear hatch, while the tipper has three-way tipping as part of the standard package. The company is also looking at a number of additional body conversions, including an access platform and a hot/cold sandwich delivery body. Box bodies with or without fridges can be supplied for chassis cabs. The vehicles come with a two-year unlimited, or three-year/60,000 mile warranty, plus one year of roadside assistance. Customers can sign up to a Loadhopper Care Plan, for £400 plus VAT, which provides all maintenance and roadside assistance for three years. An initial service is carried out at 1,000 miles or two months, followed by service intervals of 9,000 miles/12 months. Inside the compact cab there is central locking, electric windows, fog lamps and a stereo. The little Loadhopper is reasonably quick away from the lights and will happily run around an industrial estate or through town with the traffic. It’s not quite as comfortable on the open road though, running out of energy before it troubles the speed limit. But few customers are going to buy a Loadhopper as a long distance carrier.
verdict With a starting price of £6,999, the Loadhopper costs 10% less than a Suzuki Carry did when it left the UK market in 2006. If you need compact transport on a budget, it has few equals.
April 2012
71
MARKET OVERVIEW Telematics & Tracking
Ctrack Ctrack provides advanced vehicle and plant tracking and telemetry solutions that deliver immediate benefits and financial returns resulting from the ability to better manage a fleet operation. These tracking tools provide added visibility and control that comes from knowing the exact locations and status of vehicles in real-time. Suitable for fleets of all sizes, Ctrack delivers real advantage by reducing fuel consumption; validating overtime claims; eliminating unauthorised out-of-hours vehicle use; monitoring driver behaviour; achieving more jobs per employee; enhancing service levels; supporting environmental compliance; and increasing protection against vehicle theft. Ctrack is part of DigiCore Holdings, a global company listed on the Johannesburg Stock Exchange with more than 600,000 tracking systems fitted in 50 countries across five continents.
Contact: Sapna Vadgama sapna.vadgama@ctrack.co.uk
Isotrak Limited Isotrak offer best-in-class vehicle tracking and telematics solutions, focusing on optimising transport efficiency as part of overall business performance. Our management dashboard (available on iPad, iPhone, Windows Mobile, Android and RIM mobile devices) delivers vital information in an easy to read format, giving managers the control they need to deal with issues within their logistics operations. Customers like Skanska, The Royal Mail, ASDA and Sainsbury’s realise substantial cash savings, reduced accident rates, improved security, reduced emissions, and improved customer services amongst other benefits.
Contact: Len Mifsud len.mifsud@isotrak.com
Tel: 01908 540700 www.isotrak.com
Tel: 01932 358 529 www.ctrack.co.uk
Telogis Rock-solid foundation. Reputation to match.
Navman Wireless Navman Wireless ignited the vehicle tracking revolution by making real time fleet monitoring accessible to all using the power of the internet and GPRS, then reinvented the industry with the game changing M-Nav, the industry’s first combined fleet tracking, messaging and satellite navigation system. Navman Wireless continues to lead the vehicle tracking evolution with its Online AVL technology, has reinvented driver performance monitoring with its Smart Telematics system and has recently introduced Essential, Fleet+ and Complete, products defining the future of tracking.
Contact: Sales Team info@navmanwireless.co.uk
Tel: 0845 521 1133 www.navmanwireless.co.uk
Telogis® is the premium provider of Location-Based-Services to enterprises across the globe. Telogis’ scalable, Software as a Service (“SaaS”) platform helps enterprises, business owners and fleet managers optimise business operations and manage their global workforce effectively through GPS location technology. Telogis solutions enable companies to maximise the efficiency of their mobile assets through industry-leading tracking and scheduling applications, allowing both mobile and office-based staff to streamline operations, maximise productivity and minimise fuel and staffing costs. Telogis’ products and services are used and distributed in over 60 countries worldwide. To learn more visit www.telogis.com.
Contact: Sergio Barata Sergio.Barata@Telogis.com
Tel: +44 (0) 1344 747638 www.Telogis.co.uk
TRACKER Network UK Limited TRACKER is the UK's number one supplier of vehicle tracking services. With over 1 million units installed, TRACKER continues to demonstrate innovation and its commitment to pioneering the fleet telematics market. TRACKER, recently unveiled a groundbreaking new technology that reports the most accurate vehicle idling data available. Patented by TRACKER, this technology helps businesses to significantly improve fuel efficiency and further reduce fleet operating costs. TRACKER’s telematics offering provides important costsaving benefits, not just by identifying fuel inefficiency, but also long-term benefits by providing valuable insights into driver and business behaviour. TRACKER telematics enable: • Increased operational efficiency • Driver behaviour monitoring • Good customer service • Better understanding of vehicle usage
Tel: 0845 604 6092 enquiries@TRACKER.co.uk
72
fleetworldgroup.co.uk
www.TRACKER.co.uk
TomTom Business Solutions TomTom Business Solutions is the fastest growing telematics company in Europe. It helps over 15,000 customers with over 180,000 vehicles maximise efficiency. So whether you have trucks, vans or cars there is an affordable solution for you. TomTom Business Solutions gives you the visibility you need to maintain control of your vehicles and drivers, whilst cutting cost, improving productivity, boosting customer service, complying with legislation and reducing carbon footprint through monitoring driver behaviour. This helps you run greener, safer and more efficient vehicles, and gives you a great return on investment.
Contact: Sales Team uk.business@tomtom.com wwww.tomtom.com/business
Tel: 0207 2559774
Is it possible to fit sensors to load area doors to detect unauthorised cargo area access? Does your system have the facility to send alerts by text message in the event of a security alert? Does your system alert the controller if vehicles stray from their pre-set route? Can the Police locate the stolen vehicle using your system? Is it possible to immobilise a vehicle via your system? Does your system offer two- way communication/job dispatch facility? Does your system offer driver behaviour analysis? Does your management software offer real-time accurate arrival times? Does your management software offer dashboard reporting? Does your system take live & real time information direct from the vehicle’s onboard management system such as idle time & RPM? Do you provide web services for third party integration?
Key to services
Does your system allow the geographical "ring fencing" of particular locations?
VAN FLEETW RLD
Aeromark Ltd
Crystal Ball Ltd
Ctrack
Enigma Vehicle Systems
Isotrak Limited
Navman Wireless
Telogis
TRACKER Network UK Limited
TomTom Business Solutions
Service provided
Service unavailable
For all your daily fleet needs, visit...
internationalfleetworld.com
fleetworldgroup.co.uk
evfleetworld.co.uk
April 2012
73
NUM8ER5 G4ME the fleet month in figures
79g/km
15 pence
Emissions of the new Yaris Hybrid. SOURCE > Toyota
30
£8,100
The cost of fuel per litre drivers with underinflated tyres could be wasting.
The average price of cars sold online to trade buyers, equivalent to 104% of CAP Clean.
The number of EV chargers Nissan is offering to the winning city of its ‘Big Turn On’ competition.
SOURCE > GT Radial Tyres
SOURCE > Autorola
SOURCE > Nissan
1,000 The number of new jobs being created by Jaguar Land Rover at its Halewood Operations manufacturing facility. SOURCE > JLR
£14,000,000 The record value of the 1,000 BMWs sold in one day at Manheim Auctions, Colchester – the biggest day ever. SOURCE > BCA
74
fleetworldgroup.co.uk
VAN
SUPPLIER DIRECTORY
FLEETW RLD AUCTIONS & REMARKETING
CONTRACT HIRE, LEASING & FINANCE
RACKING SYSTEMS
TAIL LIFTS
FLEET MANAGEMENT SOFTWARE
BCA Tel: 0845 600 66 44 www.british-car-auctions.co.uk
Arnold Clark Vehicle Management
Tel: 0141 332 2626 www.acvm.co.uk
Bott Ltd Tel: 01530 410600 www.bott-group.com
DEL Equipment (UK) Ltd Tel: 01993 708811 www.del-uk.com
Bynx Tel: 01789 471600 www.bynx.com
Full listings online at
Volkswagen Group Leasing Tel: 0870 333 2229 www.volkswagengroupleasing.co.uk
Sortimo Central Tel: 0121 511 2303 www.sortimo-central.com
Penny Hydraulics Tel: 01246 811475 www.pennyhydraulics.com
cfc solutions Tel: 0121 717 7444 www.cfcsolutions.co.uk
Budget Rent-a-Car Tel: 0844 5338 08701544 56 56 56 www.budget.co.uk
Venson Automotive Solutions Tel: 08444 99 1402 www.venson.com
Tevo Limited Tel: 01628 528034 www.tevo.eu.com
Ratcliff Palfinger Ltd Tel: 01707 382880 www.ratcliffpalfinger.co.uk
Mycompanyfleet Tel: 0845 077 7760 www.mycompanyfleet.co.uk
Nexus Vehicle Management Ltd Tel: 0871 984 1947 www.nexusrental.co.uk
Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk
fleetworldgroup.co.uk DAILY RENTAL
Avis Rent A Car Tel: 0844 544 5000 www.avis.co.uk
Alphabet (GB) Limited Tel: 0870 50 50 100 www.alphabet.co.uk
FAST-FITS & TYRES
LeasePlan UK Ltd Tel: 0844 493 5810 www.leaseplan.co.uk
ATS Euromaster Tel: 0121 325 8842 www.atseuromaster.co.uk
Full listings online at fleetworldgroup.co.uk TELEMATICS & TRACKING
FUEL MANAGEMENT
TRACKER Network UK Limited Tel: 0845 602 3981 www.TRACKER.co.uk
Shell Fuelcards Tel: 0800 7 31 31 37 www.shell.co.uk/euroshell
Quartix Ltd Tel: 0870 013 6663 www.quartix.net
Esso Fuel Cards Tel: 0800 626 672 www.essocard.com
VEHICLE VENTILATION Flettner Ventilator Ltd Tel: 020 8200 2321 www.flettner.co.uk
ELECTRIC VEHICLES EV FLEET WORLD Tel: 01727 739160 www.evfleetworld.co.uk
RISK MANAGEMENT CBVC Vehicle Management Tel: 01283 509177 www.cbvc.co.uk
VEHICLE DATA International Decision Systems Tel: 01256 302 000 www.idsdata.co.uk
Full listings online at fleetworldgroup.co.uk
ACCIDENT MANAGEMENT
HEALTH & SAFETY COMPLIANCE
Total Accident Management Tel: 0845 078 4157 www.totalaccman.co.uk
Handistep - Fleet Safety Tel: 01939 260707 www.handistep.com
VAN
fleetworldgroup.co.uk
FLEETW RLD January 2010
‘Doblo has always shown promise, now it looks as though it can deliver’ p46
BP PLUS Fuel Cards Tel: 0845 603 0723 www.bpplus.co.uk
Roadmarque Tel: 0845 053 0331 www.roadmarque.com
TomTom Business Solutions Tel: 020 7255 9774 www.tomtom.com/business
The Fuelcard People Tel: 0844 870 9856 www.fleet-fuelsavings.co.uk
IAM Drive & Survive Tel: 0870 120 2910 www.iamdriveandsurvive.co.uk
Trakm8 Tel: 01747 858 444 www.trakm8.com
TOTALCARD Services Tel: 0800 147 148 www.total.co.uk
Professional Driver Services Tel: 0871 200 2217
Tel: 0113 346 7705 Ctrack www.ctrack.co.uk
VAN FLEETW RLD SUPPLIER DIRECTORY
January 2010
43
For more information, please contact Tracy Howell on 01727 739160 or email tracy@fleetworldgroup.co.uk
www.pdsuk.co.uk
Incorporated into every issue of VAN Fleet World and interactive online at www.fleetworldgroup.co.uk £400 flat rate for the year. Cost includes a rotating monthly listing in SUPPLIER DIRECTORY in VAN Fleet World. PLUS... • Full listing on fleetworldgroup.co.uk • Email link to sales contact • Website link to homepage • Full-colour company logo April 2012
75
One day, everyone will expect to have this information Whether you work in Fleet, Finance or in HR, having access to accurate and timely data allows you to make informed decisions quickly and easily, saving you both time and money. With ProFleet2 telematics by your side, not only will you be alerted to key events to reduce cost, risk and your carbon footprint, but benchmarking fleet performance becomes an effortless task. And with in-built driver consent you can rest assured your employees will be kept on-side too. Partnerships that work. Contact us today and ask for a free trial* rhys.harrhy@aldautomotive.com
* Terms and conditions apply
www.profleet2.com