The leading magazine for fleet decision-makers
August 2012
FLEETW RLD ARE DRIVERS REALLY DUMMIES? We investigate if they’re really as dangerous as claimed
inside Skoda bares its teeth Martin Burke on why fleet sales are rising
Driven BMW 3 Series Touring Skoda Rapid
SWOT Team returns Industry experts pitch new A-Class against rivals
fleetworld.co.uk
The leading magazine for fleet decision-makers
August 2012
FLEETW RLD ARE DRIVERS REALLY DUMMIES?
fleetworld.co.uk
We investigate if they’re really as dangerous as claimed
RECRUITMENT For the lastest recruitment vacancies, visit fleetworld.co.uk
inside Skoda bares its teeth Martin Burke on why fleet sales are rising
Driven
BMW 3 Series Touring Skoda Rapid
SWOT Team returns Industry experts pitch new A-Class against rivals
fleetworld.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
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Viewpoint
Contents
I was speaking to executives at Manheim and other used car experts recently, and there were some interesting, and conflicting discussions about the health of residual values over the rest of the year. Generally, as predicted, used values for fleet cars look likely to stay fairly high because there’s an acute shortage of stock, caused by the financial meltdown of 2008 when new car sales went into freefall. Interestingly too, Manheim is seeing a marked increase in the age and mileage of stock sold through its auctions. Less than a fifth of fleet cars sold fall into the three-year, 60,000-mile bracket that the industry uses as a benchmark. Instead the majority of cars are four to four and a half years-old, and 80,000 miles or so. It suggests that the fleet industry is now running cars longer as a matter of course, not as a reaction to wider financial woes. Also, there has been some evidence that carmakers are pushing stock into the UK due to the appalling economic situation in the Eurozone. More profit margin as a result of the exchange rate and a – relatively – healthier economy than other countries means they are shipping more cars here, which inevitably end up as pre-registrations. The industry became addicted to this false selling for many years and the surplus of nearly-new, delivery mileage cars caused all sort of problems for the used market, depressing values and even harming new car sales. Let’s hope it doesn’t reach those levels again. Of course, with the shortage of used cars, a burst of pre-reg cars appearing on dealer forecourts might not have the detrimental effect they once had, but it’s a situation that needs careful monitoring because the industry can’t get back into the habit, or we’ll be back to boom and bust again.
04 A month in fleet
Steve Moody Editor
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10 Fleet World Barometer Making sense of the eet surveys this month
14 Comment 20 MPG Marathon 2012 Sign up for the UK’s premier economy driving event in early October.
24 Driven Skoda Rapid // BMW 3 Series // Alfa MiTo // Porsche Boxster // SEAT Exeo.
30 A restart for biofuels BP reckons it has nally cracked the issues around biofuels, targeting a 2014 launch.
34 Crash fest dummies Are business motorists really as accident-prone as claimed?
38 At your service? Dealers, independents or fast-ts... you choose.
47 SWOT Team Mercedes-Benz A-Class and rivals come under the spotlight of the SWOT Team.
52 Fleet Academy 54 To buy or lease 56 Interview Martin Burke at Skoda.
58 Market Overview Daily Rental.
60 Fleet Update 65 VAN Fleet World Volkswagen Crafter // Contract Hire & Leasing
74 NUM8ER5 G4ME The eet month in gures.
20 38 56 70
Ford NEWS Innovative new Ford B-MAX sets standard THE innovative Ford B-MAX sets a new standard in its class for fuel economy and CO2 emissions with Ford’s latest petrol and diesel engines. The B-MAX with a 1.0-litre 120PS EcoBoost petrol engine emits just 114g/km of CO2, with fuel economy of 57.6mpg. Covering 12,000 miles could mean a saving of £387 a year on fuel alone, compared with B-MAX’s petrol rivals. When powered by a 1.6-litre TDCi engine the new B-MAX delivers 104g/km CO2 emissions and 70.6mpg. This compares with 119g/km CO2 from competing multi-activity vehicles on the market. The B-MAX 1.6-litre TDCi has been named best MPV in the Next Green Car Awards 2012, with the judges commending both its green credentials and the versatility of the Ford Easy Access Door System which provides unobstructed entry and exit with hinged front doors and sliding rear doors integrating the central body pillars. The website chose its award winners based on its own environmental green car rating, level of innovation, value, drive experience and design. As well as the 1.6-litre TDCi and 1.0-litre Ford EcoBoost petrol engines in 100PS and 120PS versions, a 1.4-litre Duratec petrol engine and 75PS 1.5-litre diesel unit are available. ECOnetic Technologies fitted as standard to all B-MAX models include electric power-assisted steering, gear shift indicator to highlight the most efficient gear changing points, and the Ford Eco Mode driver information system which helps drivers adopt a more economical driving style. Smart Regenerative Charging, which charges the battery at the most economical point in a journey, is also featured on the 1.0-litre EcoBoost and 1.5/1.6-litre TDCi engines.
EcoBoost: 1.0-litre performance to rival 1.6-litres THE multi award-winning 1.0-litre EcoBoost engine in the award-winning Ford Focus delivers performance to rival a traditional 1.6-litre engine with significantly improved fuel efficiency and class-leading CO2 emissions. The 100PS version delivers 58.9mpg and CO2 emissions of 109g/km. The 125PS model returns 56.5mpg, with CO2 emissions of 114g/km. Both the 100PS and 125PS versions of the engine qualify for zero vehicle excise duty in the first year and then £20 (100PS) and £30 (125PS) a year afterwards. Compared with the previous 1.6-litre 105PS and 125PS engines, this represents savings of £115 in year one and £95 and £85 respectively in subsequent years. The 1.0-litre EcoBoost engine launched earlier this year, which will be offered next in B-MAX and C-MAX, has already won awards including ‘International Engine of the Year’ from Engine Technology International magazine and the ‘Innovation Award’ in the 2012 Fleet World Honours.
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
inbrief Ford’s Easy Fuel proves a deterrent to petrol and diesel thieves Ford’s Easy Fuel system which prevents expensive misfuelling is also proving a deterrent to petrol and diesel thieves. Fuel thefts have increased by 25 per cent in the past year to a reported 4,500 cases in the UK annually. While Ford Easy Fuel – fitted as standard on Ford models including Fiesta, Focus and Mondeo – was designed to make refuelling simple and error-free, it also makes siphoning extremely difficult. Easy Fuel adds extra layers of security behind the external fuel filler opening. Easy Fuel’s spring-loaded flap is held closed by latches that can only be released by a standardsize fuel nozzle. When the proper nozzle is inserted into the filler neck, the latches release and the nozzle pushes the spring-loaded flap to the open position. When the nozzle is removed, the flap is automatically closed.
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 newsletter Fleet World Confidential... visit fleetworldsubscriptions.co.uk
CONFIDENTIAL
PRE-REGISTRATIONS THREATEN RESIDUAL VALUES The underlying weakness of the EU car market will threaten residual values, experts have claimed, if volume is forced into the UK market. With sales slow through much of Europe, and the exchange rate favouring the UK, experts are reporting an increase in pre-registration activity, where manufacturers and their dealer networks are having to take extra volume to make up for the shortfall elsewhere. According to Manheim, values in the manufacturer sector – where most pre-registration models appear in the used market – are still healthy thanks in part to the shortfall in the market for older, higher mileage vehicles. But the firm
has warned that an increase in volume throughout the rest of the year in cars only a few months old with little mileage will have a knock-on effect on fleet stock. Vertu Motors chairman, Paul Williams has already noted the changing trend. He said: ‘The market is witnessing increased levels of self-registration by UK dealers which is inflating registration data compared to sales levels. The group continues to follow a policy of not engaging in significant self-registration activity.’ Glass’s editor, Adrian Rushmore said that the act of preregistration would have a major effect on residual values, and warned against the practice with the used market currently in a fairly healthy state.
FLEETS EXTENDING CONTRACTS
REVEALED: NEW MAZDA6
Continuing challenging economic conditions mean that fleets are both extending existing company car contracts and taking out new leases for longer periods of time. According to Ogilvie Fleet sales and marketing director, Nick Hardy: ‘Existing company car contracts may be for 36 months but clients are not always confident enough in the economy to take out a new lease. Instead they are extending the contract period on existing vehicles. The rental adjustment typically delivers a ”double figure percentage” monthly saving if extended for 12 months.’
GOOGLE TO ENTER FLEET MARKET Internet giant Google is to enter the fleet market with a Google Maps product to manage field-based staff. The new Google Maps Coordinate service combines the power of Google's global mapping technologies with smartphones to help organisations assign jobs and deploy staff more efficiently. Daniel Chu, senior product manager at Google, said: ‘Coordinate has been designed to improve communication between businesses and their employees in the field. ‘As the number of mobile employees continues to grow, so does the need for a location sharing solution that works in real-time.’ Google cites research firm IDC’s report, which estimates that by 2015 there will be 1.3bn mobile workers across the globe, accounting for 37% of the total workforce. Google Maps Coordinate will cost businesses £10 per user per month, although that is an introductory price that lasts until September 1. The system will only work on a mobile phone or tablet device running Android 2.3 or higher. Chu added: ‘Any business can sign up for Coordinate. It is built to work seamlessly with the entire Google Enterprise Maps and Earth experience, and it comes with an API (a software interface) that can integrate with any of your existing systems.’
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Mazda has released first pictures of the new Mazda6, a car it hopes will reinvigorate its fleet offering. The new car will be fully unveiled at the Moscow Motor Show at the end of August, and features the full range of SKYACTIV technologies and new KODO ”Soul of Motion” design language. It will also be the first Mazda equipped with the company’s new brake energy regeneration, i-ELOOP. The new Mazda6 will stand as the flagship model for a new generation of Mazda products, with the firm claiming it will offer style, luxury feel and comfort, as well as responsive and agile driving and low CO2 emissions thanks to SKYACTIV.
ROAD DEATHS INCREASE: ARE GOVERNMENT CUTS TO BLAME? The Transport Select Committee and road safety organisations have voiced concerns that Government cuts may have contributed to the rise in road deaths. Last year saw the first rise in road deaths since 2003, with 1901 people killed, and Louise Ellman, chair of the Transport Committee, raised concerns that some local authorities are having to cut back on key road safety strategies. She said: ‘The Government’s strategy sets out to devolve decision making on road safety to local authorities but many authorities face a shortage of funding and the loss of many skilled road safety personnel.’ Kevin Clinton, head of road safety at RoSPA, added: ‘What the increase in road deaths and this report highlight is the need to review what is happening on road safety in this country, including what effects spending cuts and service reorganisation are having and how successful the Strategic Framework for Road Safety is being. ‘Although we are still in the early days of the framework, we are pleased to see that the Government is going to review it this year. It is important to identify whether the road safety strategy can be improved because, as the economy picks up in the coming years, road use will increase and we do not want to find ourselves in a situation in which road deaths and injuries are rising as a result.’
BMW PLANS THREE CYLINDER ENGINES BMW is developing a range of powerful, low-CO 2 threecylinder petrol and diesel engines for its core models. The manufacturer has already investigated consumer attitudes to smaller capacity engines, and said most found the sound and power delivery of three-cylinder engines appealing. BMW's first production three-cylinder engine, a 1.5-litre petrol unit with 220bhp, is destined for the i8 plug-in hybrid supercar and will be built at its Hams Hall factory near Birmingham alongside engines for its compact vehicles and MINIs. Future engine developments will be based on global taxation and emissions regulations, and BMW remains open-minded about its ongoing diesel/petrol sales split. Despite a shift towards diesel across Europe, and with petrol engines fitted to a small minority of its larger models, sales of the latest 1 Series are split almost 50/50 between the two fuels in Europe, slightly in favour of petrol engines and increasingly so, albeit slowly.
SUB-120G/KM CR-V TO BROADEN HONDA FLEET APPEAL The fourth generation Honda CR-V will be available with two-wheel drive and the same 1.6-litre diesel engine as the new Civic next year, bringing CO2 emissions under 120g/km, the manufacturer has confirmed. Deliveries will begin in December, with engines at launch comprising a 2.0-litre petrol and 2.2-litre diesel, both adapted from the engines in the outgoing car. With 7,000 of the 17,000 UK cars expected to be sold to corporate customers, Honda has brought CO2 emissions of the 2.2 diesel down from 174g/km to 149g/km for the manual, and 199g/km to 171g/km for the automatic gearbox.
CHOICE LISTS TIGHTENED TO CONTROL COSTS A general ”tightening up” of company car choice lists has taken place since the start of 2011, which means less choice for drivers as firms try to control costs. According to the latest quarterly Company Car Trends research from GE Capital’s Fleet Services division, an increasing number are using stricter criteria when it comes to deciding which models will be offered to employees – with the central thrust being on controlling costs and delivering value. Gary Killeen, Fleet Services commercial leader for GE Capital UK, said: ‘There has been a lot of interest among fleets in re-examining and tightening up their company car choice lists over the last year or longer, with employers using them as a direct means of meeting their key fleet objectives. ‘At the heart of this, and very much as a result of the on-going economic conditions, is a desire to reduce expenditure. This is seen in the increased interest in ”lower CO2 emissions”, ”maximum monthly rentals” and ”maximum engine capacity”.’ Killeen said that he expected to see fleets increasingly use their choice lists as a proactive means to further reduce costs and increase the productivity of their company cars as work tools.
August 2012
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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 newsletter Fleet World Confidential... visit fleetworldsubscriptions.co.uk
EU SERVICING RULE SPARKS KEY CLONING CRIMEWAVE The European Union’s ruling making it easier for independent dealers to service new vehicles has had an unforeseen effect in allowing criminals to clone keys faster. This new spate of vehicle crime involves thieves over-riding the vehicle’s immobiliser and connecting a laptop into the on-board diagnostics (OBD) socket to disable the alarm and reprogram a new key. Once the new key is cut, the thieves are able to return to the vehicle and unlock it and simply drive away. The crime is gaining more prevalence since EU rules came into force which must allow non-franchised dealers to be able to carry out repairs, because this has led to manufacturers making on-board diagnostics sockets more easily accessible. An East London-based fleet is one of many to have fallen victim: asbestos removal specialist Silverdell has turned to aftermarket security devices to secure its van fleet after four Ford Transits were stolen and two more had their catalytic convertors removed. To counter the problem, Silverdell has fitted coded boxes over the port, supplied by Assured Vehicle Specialists. It has also had clamps fitted over its catalytic convertors to deter thieves who steal the units because they contain precious metals such as platinum.
INBRIEF VERTU FLEET SALES INCREASE
>
Vertu Motors has announced a 12.2% increase in fleet and commercial volumes for the four-month period to June 30 – ahead of the same period last year. In an update to the City, the group announced that the like-for-like increase compared to a decline in fleet market registrations overall of 0.8%. Vertu Motors chairman, Paul Williams said: ‘The group has seen considerable growth in fleet and commercial volumes compared to a market fall of 0.8%.’
ADAM PICS RELEASED
NEW BVRLA GUIDE
Vauxhall has released its first pictures of the new Adam supermini. The Adam is a three-door, four-seater, and will be unveiled at this year’s Paris Motorshow, before appearing in UK showrooms early in 2013. The car will be available with a high degree of personalisation options, and will be launched in three trims: Jam, Glam and Slam. The Adam will be offered with three ecoFLEX four-cylinder petrol engines: a 70bhp 1.2-litre, and two 1.4-litre engines with either 87bhp or 100bhp.
The British Vehicle Rental and Leasing Association has published its new Guide to Vehicle Funding. Produced in association with Peugeot and Deloitte, the digital publication has been produced to help business decision-makers choose the most appropriate way of financing their vehicles. Incorporating all the tax changes made in the recent Budget, the guide helps readers compare the key features and accounting treatments of different funding methods including contract hire, finance lease, contract purchase, hire or lease purchase and outright purchase.
V FOR VICTORY AND VAUXHALL Team Vauxhall secured a slender victory over second-placed Audi in the Fleet World Cup of Gold, which was played at Bowood in July. Lee O'Connell (24 h’cap), Andy Chatwin (12) and Darren Phillips (8) played the most consistent golf over the challenging championship course in conditions that favoured straight hitting off the tee. Those who failed found punishing rough not unlike that Pictured left to right: Darren Phillips, Lee seen at The Open. In third place were the O’Connell, Ross Durkin and Andy Chatwin. cup holders from team Mazda who narrowly failed to retain the title. The individual prize on the day went to Fiat’s Jonny Miller who emulated his namesake with some fine play to come in just ahead of Keith Allen of ALD Automotive in the SEAT team. Longest drive was won by Jonathan Smith of Nissan while ”nearest the pin” was claimed by Mercedes-Benz’s rising lady golfing star, Sally Dennis.
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CONFIDENTIAL
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> TUSKER APPOINTS SINCLAIR AS CEO Contract hire provider and salary sacrifice specialist Tusker has appointed Mark Sinclair to the board as its first chief operating officer. Reporting to chief executive David Hosking, Sinclair joins the company after 12 years’ experience with multi-marque leasing company Alphabet, which is owned by BMW Group.
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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
PARKING RESEARCH AND ADVICE IN PARKING PATTERNS, AND THE MONEY MADE BY LOCAL AUTHORITIES:
16% parked elsewhere
4% in use In 2009/10, 7.1 million on-street penalty charge notices were issued, with a further 1.8 million tickets for off-street parking.
The average car spends >>>>>>> ...while: • 25% of vehicles are parked on-street overnight • 70% of all parking is for less than three hours • 90% of parking is for less than 8.5 hours
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In spite of most parking acts being of short duration, the pattern is dominated by workplace parking, for three reasons: a. travel to work is the most frequent reason for parking (outside London, 70% of people commute by car); b. with the minor exception of holiday parking, workplace parking has the greatest duration; and c. the starting time is more concentrated than that for other purposes.
80% parked at home
In terms of council finances, London boroughs make most of their current parking account surplus from onstreet parking, the total surplus amounting to 33% of their parking income. Outside London, the corresponding proportion is 39%, over 80% of which is derived from off-street parking. Source: RAC Foundation
MOBILITY SOLUTIONS
• 36% claimed limited time, budget and resources were cited as the biggest issues hindering the successful adoption of mobility solutions. • 33% said usability of the technology was a hindrance. • 23% claimed employee understanding of the rationale behind implementation caused the most problems. • 27% thought poor executive sponsorship and employee engagement were contributing to slow rates of adoption.
Jonathan Chevallier, strategic development director at Cognito said: ‘The results from this survey confirm that despite the wide availability of consumer mobility solutions, smartphones, apps and geo-location tools, there is still a lack of adoption across organisations of all sizes. ‘Organisations can address these barriers head on by considering the implementation of a mobility solution as a large enterprise project, with appropriate allocation of resource, time and change management for sustained, organisation-wide benefits.’
Source: Cognito
A SURVEY INTO BUSINESS ATTITUDES TO ALTERNATIVE MOBILITY SOLUTIONS:
EMISSIONS REDUCTION RESEARCH INTO THE EMISSIONS LEVELS OF CARS CHOSEN BY FLEETS. Average CO2 emissions of new company cars, according to ALD Automotive: • 166g/km in 2003 • 138g/km in 2011 • 127g/km in 2012 The research also found that environmentally friendly cars are being adopted by employers in record numbers and employees are travelling fewer miles as part of a continuing focus on the reduction of vehicle operating costs. Keith Allen, UK managing director at ALD Automotive, said: ‘It is evident from the analysis that UK businesses are really taking notice when it comes to reducing their CO2 emissions and mileage.’ Source: ALD Automotive
DRINK DRIVING A REPORT INTO ATTITUDES TOWARDS DRINK-DRIVING. • 80% of motorists say those who repeatedly drink drive should have their vehicles seized and sold or scrapped. • 50% think that this should also happen to drivers several times over the limit. • 66% want to see the drink-drive limit reduced. • 28% think there should be a zero-tolerance policy. • 57% think current prosecution levels are too weak. • 50% of respondents admit to having a drink while driving, within the current limit.
Source: IAM
IAM chief executive, Simon Best said: ‘The support is there for tougher treatment of drink drivers. Not only do the majority want a lower limit – they also want tougher punishment for those that break the law, especially the worst offenders who present the greatest danger to other road users, their passengers and themselves.’ • for the latest daily news from the fleet industry, visit www.fleetworld.co.uk
August 2012
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COMMENT
Getting to know you Curtis Hutchinson New car sales to SMEs are down. All the more reason for car brands to offer strong local business propositions through their dealer networks, says Motor Trader editor Curtis Hutchinson.
‘One area not performing strongly is the business market’ 14
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The new car registration figures for the first six months of the year highlighted some interesting trends impacting fleets and their choice of vehicles. While Ford's trusty Fiesta continues to dominate the registration figures (60,000 sales to date against Vauxhall's second-placed Corsa at 47,000 and the Focus in third at 44,000 units), there's a distinct upmarket move elsewhere in the top 10 list with BMW's 3 Series currently placed seventh and the C-Class at number 10. The Ford Mondeo, the erstwhile family car favourite, is nowhere to be seen in the top 10. Significantly, growing demand for diesel continues to see these cars creep ahead of petrol this year, despite the improvements made by carmakers in reducing the latter's C02 levels while improving their fuel consumption. One area not performing strongly is the business market – fleets running less than 25 cars. Registrations in this sector over the course of 2012 have dropped 17.5%. This falling demand would have been noted by car manufacturers some months ago, with many working behind the scenes to prop up this side of their business. Volkswagen, one of the UK's bigger fleet players, recently moved to shore up its local fleet business by launching a more focused leasing initiative aimed at enabling its dealers to service the specific funding needs of local business customers. This prompted me to see what smaller brands were doing to retain that important, but often overlooked, local link between dealers and car manufacturers. I first chatted to Steve Robertson, head of fleet and business sales at SEAT. The brand might share parentage with its Volkswagen stable mate, but its smaller size and lower aspirations has seen it deliver a perfectly good service for some time. ‘For the past three years we've been
improving our fleet specialist network; we have 19 dealers with specialist sales people conversant with the business market to improve sales to SMEs,’ he said. While all SEAT dealers can sell, service and fund fleet vehicles operated by SMEs, the specialist fleet dealerships also go one step further by prospecting. Each dealer's designated local fleet specialist goes out and about in their local area to get to know the local businesses and understand their fleet needs. ‘It's about proactively marketing the dealership to local firms and being active in local chambers of commerce, which is a great networking opportunity. It's all an extension of the old golf club ethos and getting known in the community,’ he said. The programme works with each designated dealer building close personal links with a growing number of local businesses. Mazda also offers a tailored service for its SME customers. While four designated fleet centres collectively handle around 50% of its fleet volume, the rest of the 140-strong network is encouraged to build relationships with SMEs, with each one able to provide contract hire and PCP funding to business customers. ‘There are significantly more SMEs than major corporations in the UK and as such they form a very important part of Mazda's fleet mix,’ said Steve Tomlinson, Mazda's head of fleet. ‘Of all the end user relationships we have, approximately 45% run fleets of fewer than 50 vehicles and deliver a significant proportion of our overall fleet mix. Engagement with SMEs is something that Mazda has worked very hard at over the last 24 months,’ he said. New car sales to small and medium sized businesses might be down nationally but the evidence suggests that manufacturers are pulling out the stops to get to know and better understand SMEs, and that has got to be welcome news for local businesses.
COMMENT
Moved by motor show and safety demos The Insider This month our tame fleet manager asks whether we do enough to teach drivers how to be safer on the road.
’You can’t stop the nut behind the wheel.’
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The Moving Motor Show, precursor to the Goodwood Festival of Speed, enabled me to fulfil an ambition to drive up the famous hill climb course. I thoroughly enjoyed my day out and would urge you to go, if you haven’t been before. A number of the old competition vehicles – an Opel Manta 400 still stirs the blood and the Vincent-engined sidecar was amazing – attending the festival were on view on the Thursday without the need to peer over the shoulders of a milling throng, and there was plenty else on offer to entertain, although I chickened out of the absailing on the Chevrolet stand. A shame then, that one young punter decided to furrow part of Lord March’s front garden by ignoring the advice of his experienced passenger, and flung someone else’s hot hatch into the straw bales, fortunately without serious injury to either party nor onlookers. This was supposed to be a sensible drive, for heavens’ sake, not a competition. Manufacturers made their cars available and put their staff at risk by sitting them alongside Dave Dodgem and offering free rein. Emulating the prodrivers in their Audi R8s wasn’t supposed to be on the agenda. It’s that old saying again: you can’t stop the nut behind the wheel. Recent figures from the Department For Transport showed UK road deaths and serious injuries both increased in 2011. The Road Safety Foundation believes previous years’ steady reductions in road deaths was largely due to improved passive safety in new vehicles, such as airbags and crumple zones, and that continuing to improve safety technology in cars is the way to go. Fleets are urged to lead the way by insisting our cars are fitted with items such as forward collision warning, lane departure warning, adaptive cruise control, and systems which do the braking for you. Never
mind the cost, because actually you can’t put a price on safety, we’re told. But there is a much cheaper way to reduce accidents and that is to get inside the head of the driver and start to change attitudes. Most full driving licence holders have one brain, two eyes and two ears, set in a head which has the ability to swivel through a good 180 degrees. They should have the ability to use each of those together to anticipate hazards, identify danger, and plan an appropriate reaction – at which point most accidents become avoidable. And I guess that’s why I applaud psychometric profiling of the kind offered by Dr Lisa Dorn at Cranfield, together with follow-up interventions delivered by a professional, or by trained staff at your own company, rather than a basic Highway Code related test and blanket on-road training across all employees. If you can intelligently discuss with a driver what makes him or her react in a particular way, there is an opportunity to sway their thinking and engender a safer culture where they take responsibility for their own actions and accept that it’s not OK to carry on into a situation where they were in the right, but are still going to come off worst; or dead. I once had the pleasure of attending a day at Robb Gravett’s Ultimate Car Control facility at Crowthorne. In the last exercise of the day, each of us was given a traffic cone. We were told a professional driver would drive a straight line at 50mph and at a particular point, brake as hard as he could. We had to place our cone along his route at the point where we thought he would come to a halt. It was very sobering to see the professional mow down a line of cones. We all need more education. I’m all for progress in technology but all that expense will continue to be wasted unless we can turn the nut behind the wheel before he is screwed.
ALD Automotive • Shell FuelSave 2012
Four Pillars Hotel > Cotswold Water Park Wednesday 3rd October – Thursday 4th October 2012 The MPG Marathon is the UK’s longest-running and best-known economy driving event. Featuring a wide range of cars and vans, the MPG Marathon is a demonstration of how both the vehicle itself, and the person behind the wheel, can make a massive difference to an organisation’s fuel costs and carbon emissions. Now in its twelfth year, the MPG Marathon generates a great deal of media coverage in regional, national and even international press and provides the perfect showcase for new technology and well-honed driving skills. Previous competitors include fleet managers, celebrities, academics, motoring journalists, professional drivers and senior figures in the automotive industry. This year, the MPG Marathon is taking place on the 3rd and 4th October, based at the Four Pillars Hotel in South Cerney, just outside Cirencester. Competitors will push for the best economy over two days, on a route covering around 380 miles of British countryside, including A and B roads and motorway driving. Day 1 takes drivers west into South Wales, while day 2 circumnavigates the Cotswolds and South Midlands. Vehicles are split into classes depending on CO2 emissions, with a maximum CO2 limit for passenger cars of 160g/km introduced this year for the first time. Awards are given for the most economical drivers, as well as the most efficient cars and vans. The winners will be awarded at a presentation held on the 10th October at the Royal Automobile Club in Pall Mall, London.
Meet the sponsors... AA
ALD Automotive
The organisation is keen to raise awareness of how risk assessment and practical driver training, which includes fuel efficiency training, can help businesses to save money through reduced fuel consumption as well as improved driver safety. AA Business Services will also be ensuring the integrity of the event by lending logistical and scrutineering support, and precision refuelling through its Fuel Assist service.
ALD Automotive is one of the UK's leading providers of vehicle funding and management solutions and manages over 73,000 vehicles. The ALD Automotive group is also the 2nd largest vehicle leasing operation in Europe and manages over 900,000 vehicles across 37 countries worldwide. As such we are, once again, delighted to organise the 2012 MPG Marathon. The event has proved to be an ideal fit with our own business strategy as it focuses on cost reduction, health and safety and environmental issues. These are the core issues at the forefront of our own and our customers’ thinking. Our support reflects the great importance we place on safer, smarter driving and our award winning risk management solutions – for company car drivers and the grey fleet alike, such as DriveSafe Solutions and ProFleet2 in-vehicle telematics – are testimony to this. It’s clear the MPG Marathon has gained a momentum of its own and is set to remain a key feature of the fleet motoring calendar.
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HOW DO WE MEASURE MPG? There are many devices, including factory-fitted items, which can measure fuel economy and many of them are very accurate. But for the sake of consistency, the MPG Marathon is based on a brim-to-brim measurement of how much fuel is used over the duration of the course. With modern fuel tanks coming in numerous shapes and sizes, each car’s tank is brimmed with fuel with one side jacked up to ensure that there is no air trapped anywhere inside the tank. Competitors can check fuel levels before the event, after which time the fuel cap is sealed for the duration to avoid en-route top-ups. Prizes will be awarded for the best overall fuel economy and the best percentage increase compared to the manufacturer’s figures, both in each vehicle class and overall for the event.
THE BENEFITS OF SMARTER DRIVING THE MPG MARATHON IS NOT JUST ABOUT IMPROVING FUEL ECONOMY. Reduced fuel costs Petrol and diesel prices have reached new records recently, and wasted fuel is no longer something businesses and private drivers can ignore. The MPG Marathon proves that not only is car choice important, but that correct driver training can help save substantial fuel costs, too. Reduced environmental impact Never have companies had a more apparent responsibility to do their bit to save the environment. No matter how big or small your fleet, greener driving means instant, cost-free reductions in carbon emissions, in turn helping to slash the environmental impact of day-to-day business. Reduced maintenance Gentle driving has benefits that go beyond simply reducing fuel consumption. Smoother drivers also cause less wear and tear on vehicles, meaning they spend less time off the road for maintenance and, in turn, cost less to run.
Energy Saving Trust
Shell FuelSave
The Energy Saving Trust (EST) is one of the UK's leading organisations working in the field to limit the effects of climate change. A social enterprise with charitable status, EST works in partnership with government, local authorities, third sector organisations and businesses. EST provides impartial advice to fleets to help them reduce fuel use and improve efficiency with benefits to both fleet finances and the environment. EST is delighted to support the 2012 MPG Marathon as a vital part of raising awareness of ecodriving techniques.
Shell FuelSave is proud to be the headline fuel sponsor of the 2012 MPG Marathon. Shell FuelSave Regular Unleaded and Shell FuelSave Regular Diesel are enriched with the Shell Efficiency Improver, designed to improve fuel economy from the very first drop, meaning you could benefit from this advanced fuel economy formula from the first time you fill up your vehicle. This fuel-efficient formula is designed to ignite and burn more effectively, helping to produce more efficient combustion in your engine. In addition to this, it is also designed to help prevent the build-up of deposits on fuel injectors, improving your engine's efficiency. This helps you get the most out of every drop of Shell FuelSave Regular Unleaded and Shell FuelSave Regular Diesel, saving you more fuel with every tank.
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ALD Automotive • Shell FuelSave 2012
Improved safety Eco-conscious driving is also safer. Erratic drivers don’t only use more fuel, they’re more prone to accidents, too. The MPG Marathon encourages gentle, considerate and smooth driving, contributing to a safer fleet, lower insurance costs and less chance of having cars out of action for repairs. Reduction in stress levels More relaxed driving also has benefits for employee health. Erratic driving causes stress levels to rise, which can affect concentration, make drivers tired and increase the risk of heart problems. Encourage drivers to slow down and take it easy on the road, and you’ll have a happier, healthier and more productive fleet.
TRANSPORT MINISTER TO PRESENT MPG MARATHON TROPHIES Transport minister, Norman Baker MP will be the guest of honour at the 2012 MPG Marathon trophy presentation lunch. The minister, who has considerable interest in a wide range of green driving initiatives, will present the prizes to the winners of the competition at the special event to be held at the Royal Automobile Club. MPG Marathon event organiser, Ross Durkin, said: ‘It will be a great honour to welcome Norman Baker as our guest of honour for the MPG Marathon awards presentation. His enthusiastic support for green transport initiatives in both the consumer and fleet sectors is well documented and we are delighted to receive his support for the 2012 MPG Marathon.’
TRACKER We are thrilled to be involved in the 2012 MPG Marathon. TRACKER has been leading the way in the field of vehicle tracking and telematics since 1993 and has over a million market leading security and award winning fleet management systems fitted to vehicles across the UK. Our expertise in monitoring and assessing vehicle usage and driver behaviour will come to the fore in this exciting partnership, with TRACKER Fleet delivering real-time information on each and every competitor performance. With our help, the industry can truly get behind the Marathon by following progress throughout the economy driving challenge. Whether it’s passenger cars, motorcycles, HGV’s, LCV’s and plant and construction equipment, we continue to lead the way in providing solutions that support the individual needs of today’s fleets irrespective of size or industry. Good luck to all the competitors, your supporters will be with you every inch of the way.
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HOW DO I ENTER? If you want to enter this year’s MPG Marathon, you can request a place by completing the registration form on the event website – www.mpgmarathon.com We give priority to entrants working for fleet companies and those with eco-driving experience, but there are plenty of opportunities for others to get involved. For more information on taking part in the MPG Marathon, go to www.mpgmarathon.com call 01727 739160 or email mpgmarathon@fleetworldgroup.co.uk
DRIVEN
Skoda Rapid The Rapid is solid, reliable and cheap. Everything a Skoda should be, says Steve Moody. SECTOR Compact hatch PRICE £12,500 – £18,500 (est) FUEL 72.4 – 48.3mpg CO2 99 – 134g/km In an ever-more cost conscious world, surely Skoda should be one of the first names on the sheet when fleets are forming choice lists? After all, the firm sticks rigidly to its low price proposition, even as other value brands have begun to price their cars more expensively. The new Rapid is a perfect case in point, and will start from under £13,000 when it goes on sale later in the year. Executives confirmed that the car, marginally smaller than the current Octavia externally, but with more space inside, will remain extremely price competitive in the face of escalating prices from most other manufacturers. The firm maintains that its position is to be a value, not fashion, proposition and so the new car will fit above Fabia and below Octavia. It recognises though that it has some work to do to explain its out-ofstep sizing to fleets. A Skoda executive told Fleet World: ‘Once the new Octavia is unveiled next year, it will all become clearer, because that car will increase in size, and so the range will make more sense. But until then, we will have to spend some time explaining how its fits in the market.’ The Rapid will come with two 1.2-litre petrol engines, a 1.4 TSI and a 1.6 diesel
with the Greenline version offering CO2 emissions below 100g/km and Stop/Start, brake energy recuperation and low rolling resistance tyres. Skoda has also hinted that base spec models will be better equipped than the current Octavia, while there are all the usual executive toys available such as Bluetooth, iPod connectivity, and the option of a DSG gearbox. The firm hopes to sell 6,000 units a year in the UK, a market which is showing record sales for the brand. We drove the diesel and the 1.2 TSI, both 104bhp, and both were adequate, although the petrol was noticeably less nose heavy. Even with such low power outputs, they could be kept skipping along happily, although drop off-boost below 1,500rpm in the diesel at your peril. It is likely that prices will climb to nearly £18,000 for the top spec diesel, but this puts it in a significantly cheaper price bracket than competitors such as the Kia cee’d and Hyundai i30. For that money, fleets will get a very solid, sensible car. The boot is huge, offering up around 550 litres of space, while there’s plenty of rear passenger room too. Up front, the driver is faced with a perfectly comfortable driving position and stock VW Group materials that are
on the workmanlike side. There aren’t too many flourishes in the cabin, and you might even call it dull, but everything is laid out logically and cleanly, and it’s all good honest fare. For a fleet looking for trusty, reliable, if unspectacular motoring, you won’t find many cars hitting that brief as ideally as the Rapid. The outside is a little more ambitious though. The Rapid is the first car to feature Skoda’s new design language, and it looks sharp and well-proportioned. In the UK, we’re not big fans of small saloons, and it does look like one even though it’s a hatch, so there’s another spot of communication the sales team will have to do. But that approach hasn’t been a deal breaker for the Octavia, so it shouldn’t be for this car, and once fleet buyers see the size of the boot, that should bring more than a few onside.
verdict The Rapid is not the most exciting car, but it could be the ideal one for fleets: a big boot, low price, strong running cost proposition and parsimonious engines. Positioning it in the choice list and getting drivers to understand where it sits sizewise will be the biggest job.
Skoda fleet boss, Martin Burke interviewed: see page 56. 24
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BMW 3 Series Touring It’s all the car you’ll ever need, and a little more just in case, says Alex Grant. SECTOR Compact executive PRICE £29,380 – £37,700 FUEL 44.5 – 60.1mpg CO2 124 – 159g/km Appealing to both head and heart, with an unusual combination of high performance, luxury and low running costs on offer, the 3 Series has become a key asset in BMW’s fleet portfolio and a tough package to match. But if the saloon didn’t manage to offer everything most drivers would need, the Touring arrives in the UK from September to fill in those last small gaps. Scandinavia may be Europe’s biggest market for the luxury estate car, but it’s a popular model in the UK, too. Previous generations of 3 Series Touring have accounted for around 20% of the total volume, and sales stick rigidly to that pattern usually until run-out. So BMW is predicting exactly the same for its latest version, expecting 8,500 UK buyers to choose the Touring in its first full year, a 21% share of 3 Series sales. With such a tried and tested formula to work from, there aren’t any real visual surprises here. Typically BMW in its understated masculinity, it’d be easy enough to mistake this for the 5 Series, at least from the back. But while the styling is entirely predictable, it’s right on target for a loyal fanbase. No risks taken, but no feet put wrong either. Touring models add £1,300-£1,400 to the price of a saloon, and in most cases push the car up a single BiK band, so the additional practicality adds little cost. Only three
powerplants will be available at launch – the 328i, 320d and 330d – and all come under 160g/km, and are even lower with the eight-speed automatic gearbox ensuring the most efficient shifts possible. In line with the saloon, a wider engine range will follow over its first 12 months, but UK buyers won’t get the EfficientDynamics version bound for Europe, which is a shame, and there are no plans for an ActiveHybrid 3 Touring. There’s also exactly the same range of trim levels, including the cosseting Luxury and Modern versions and the traditionally popular Sport and M-Sport with their aggressive body styling and large alloy wheels. There’s a familiar feeling of well-engineered practicality inside and out. The independently opening rear glass is carried forward from the outgoing car, and the whole tailgate now opens electronically for all models, with an optional touchless opening system activated by swinging a foot under the rear bumper. With a low loading lip, it’s easy to hustle large and heavy items into the back. Thoughtfulness continues inside, where BMW is one of the few manufacturers to include a storage space for the removed cargo blind under a flap at the back of the boot. The rear seat folds almost flat in three independent sections, released quickly, and the boot area is awash with hooks and lashing points
for cargo nets to keep loads secure. Nets and the telescopic boot divider can be stowed under the boot floor, which is optionally reversible to include a dirt-resistant section. Climate control, Bluetooth and USB connectivity, iDrive with a comprehensive trip computer, cruise control and ECO PRO fuel-saving modes are fitted to every model in the range, and all come with at least 17-inch alloy wheels. The obvious oversight is satellite navigation, which adds £1,550. Upping practicality hasn’t done any damage to its driver appeal, and although BMW only had the 328i petrol to test on the launch, the 3 Series Touring should be almost as much fun with its best-selling 320d engine. It’s a convincing double-act between being a long-legged motorway cruiser and tight, responsive sports car when the mood takes you, offering brilliant ride quality and plentiful grip and power.
verdict The 3 Series Touring offers very few surprises, but that’s by no means a bad thing. This takes the best bits of the latest saloon and adds incredibly well-executed practicality to the appeal for a small uplift in price and fuel consumption. A 320d ED model would be desirable though.
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Alfa Romeo MiTO TwinAir The two cylinder Alfa is great fun and has low emissions, says Steve Moody. SECTOR Supermini PRICE £14,150 – £15,350 FUEL 67.3mpg CO2 98g/km Want a funky, sporty little car with low CO2 emissions that’s great to drive? Want a stylish car that sounds like a manic lawnmower? The Alfa Romeo MiTO TwinAir is that car. The MiTO has finally got the brilliant two cylinder, 85bhp powerplant that was first introduced in the Fiat 500 and
the result is extremely characterful. With a CO2 output of just 98g/km and combined fuel economy of 67.3mpg, the Alfa MiTo TwinAir is the cleanest and most economical model in its class too. For business users, one of the main targets for the firm with the car, it sits in the lowest 10% BiK rate. Low CO2
Vauxhall Insignia BiTurbo Making long distances effortless, but not expensive, says Alex Grant. SECTOR Upper medium PRICE £27,120 – £33,320 FUEL 42.2 – 57.6mpg CO2 129 – 158g/km While the Mondeo grows its excellent EcoBoost petrol range, the Insignia now debuts a very interesting new diesel engine. Vauxhall has a split customer base for the Insignia, from the high volume end of the fleet market to the management-level user-chooser with its luxurious Elite, SRi
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and VX-Line trim levels. The BiTurbo diesel engine pitches for the latter, particularly BMW’s efficient, high-performance diesels, and is only available in the ranges bestequiped versions. Based on the familiar 2.0-litre CDTi engine, this uses two turbochargers to
motoring really shouldn’t be this much fun. It literally buzzes along, that powerplant punching its two pistons with glee. It’s not especially fast but such is the unique experience, wrapped in the MiTO’s rather attractive shell that the whole thing is a joy. And with Alfa’s DNA selector, which allows drivers to choose how the engine operates and responds, you can veer between settings that let the engine sip fuel at a ridiculously parsimonious rate with a leaden throttle, or fizz along with sharp acceleration and darty steering. TwinAir models will be available in two trim levels – Sprint and Distinctive – priced at £14,150 and £15,350 respectively. The Sprint trim level includes 16-inch sports alloy wheels, cruise control, front fog lights, manual climate control and Alfa’s Blue&Me system with Bluetooth and USB media system. The Distinctive trim level also benefits from standard premium features including 17-inch sports alloy wheels, red painted Brembo brake calipers, rear parking sensors and chrome/aluminium detailing. Alfa Romeo reckons that half the MiTO TwinAir will go to fleets and it’s not hard to see it being more successful than that: it’s an intoxicating brew that shows what can be done if innovation and intelligence combine.
offer lag-free performance throughout the rev range and 192bhp with 295lb.ft torque. But, by combining it with an eco mode, the BiTurbo is actually slightly more efficient than its less potent sibling – at a commendable 57.6mpg and 129g/km CO2. Figures most premium manufacturers can’t match, let alone its closest adversary the 198bhp Mondeo TDCi, which starts at 47.1mpg and 159g/km. It makes the Insignia smooth and effortless in almost any gear. There’s a strong surge of power, starting just over 1,500rpm, which carries on almost to the redline making this flexible enough to hold in high gears to save fuel but with the ability to quickly overtake large vehicles as needed. Efficient ”eco”, smooth ”Tour” and responsive ”Sport” driving modes mean it’s as simple to select a driving experience to suit the road conditions. All BiTurbo models gain FlexRide adaptive damping, usually a £790 option, and there’s a choice of front or four-wheel drive, automatic or manual gearboxes and hatchback or Sports Tourer estate on offer – all of which come under 160g/km CO2. Trimmed in leather and on the Insignia’s largest wheels, those switching from a luxury brand have only badge snobbery to overcome.
Porsche Boxster If you have the funds, it might well be time to opt out, says Steve Moody. SECTOR Sports car PRICE £37,589 – £45,384 FUEL 36.7mpg CO2 180g/km For the lucky few, it might just be time to opt out. For the new Porsche Boxster offers up an intoxicating brew of agility, performance, luxury and surprising robustness. The new version – priced from £37,589 for the standard car, and from £45,384 for the Boxster S – has an altogether more
ergonomic and comfortable cabin, made of very high quality materials, while it looks sharper and more masculine on the outside too, with lines taken from the GT supercar of a few years ago. It’s also up to 35kg lower in weight, with a 60mm longer wheelbase, widened track
SEAT Exeo ST Sport Tech 2.0 TDI CR A good car, but lacking claimed Spanish character, says Alex Grant. SECTOR Upper Medium PRICE £24,705 FUEL 56.5mpg CO2 132g/km SEAT has perhaps the most disjointed range of the Volkswagen Group family. Topped and tailed with lightly altered Volkswagens in the Mii and Alhambra, with the chiselled Ibiza and two generations old Leon and Altea in the middle, they’re not bad cars, but lack the clear
brand identity of nearest sibling Skoda. Exeo is no different. SEAT should really have furnished the D-segment with a sleek, chiselled saloon and Sport Tourer, but instead inherited a collection of solid but unremarkable-looking Audi parts and subtly facelifted them to fit the rest of
on the front and rear axles, and larger wheels and tyres which significantly enhance the performance of the new car by notably increasing its stability and agility. The new Porsche Boxster is also powered by a choice of charismatic flat-six engines with direct petrol injection. Mid-mounted, the unit fitted in the Boxster delivers 265bhp from 2.7-litres – 10 hp more than its larger capacity 2.9-litre predecessor – while the 3.4-litre engine of the Boxster S pounds out 315bhp, 5 hp more than before, but both are more torquey. Both models feature a manual six-speed gearbox as standard, with the seven-speed dual-clutch PDK available as an option, and both are a delight to drive. The standard Boxster doesn’t actually feel that fast, and certainly not low down in the rev range if you are used to big diesel engines pulling hard from a standstill, but they sing at the top end, where the beautifully weighted controls and precise gearbox make driving a delight. Remember that feeling? Of course, with the Boxster you should get rock-solid residual values. The early old ones have started to weaken at last as volume eventually takes it toll but this is a wonderful two seater for those with the freedom, and budget for sporty, top down business motoring.
the range. It was a cost-effective way to dip its toes into what’s becoming an increasingly tricky segment. Actually, it’s a good place to start. Audi got the year 2000 A4 very right and, after 12 years, it’s still up to task. Comfortable, fairly sporty and without the electromechanical power steering that’s blunting most vehicles in this sector. Exeo feels keener than it sounds; it’s quite a good drive. There are sacrifices, though. Interior quality is excellent, but features like the prominent cigarette lighter, obtrusive once-optional armrest, mechanical handbrake and iPod connection based on a CD changer remind you that this is an old car. It’s the same outside. Exeo looks too subtle, too Germanic, against SEAT’s latest crop and even the chevron-accented head and tail lamps can’t really hide it. But it’s understated and classy, at least, and the new 18-inch turbine alloy wheels suit it. None of these should be reasons to write it off, though. Exeo doesn’t exude sportiness or Spanish design flair, but it’s good to drive, very economical and incredibly comfortable too. View it as a keenly-priced A4, ignore the old bits and it’s a worthy, upmarket-feeling competitor in this sector.
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DRIVEN
quality standards make diesels a harder sell. But with a large petrol engine it’s a square peg in the round hole of CO2-taxed Europe. The problem it faces is BMW’s own brilliant, low-carbon, high performance diesel engines, against which this is more expensive, less efficient and higher in CO2
output than even the most powerful 330d. So don’t expect this to change the face of 3 Series sales in the UK – BMW predicts only 100 will find homes in its first full year. But it’s very clever. Technology lovers will adore the drivetrain, which switches between petrol and electric power imperceptibly around town and can coast on electric power at up to 100mph, which should boost motorway efficiency. On the launch, a little restraint and use of the Eco Pro driving mode resulted in around 40mpg, a figure most people would have been happy to get from a diesel 3 Series not so long ago. Efficiency is only half the story. This uses the same 3.0-litre twin-turbocharged engine as the 335i, combined with an electric motor to offer 335bhp delivered smoothly through its eight-speed gearbox. It’ll reach 62mph in 5.3 seconds and tops out at 155mph, which makes this the second fastest 3 Series behind the M3, yet it’s more efficient than the less powerful 335i. But it’s the lack of sacrifices that really impress. No blunting of handling due to extra weight, no CVT gearbox, no loss of boot spaces and all the same trim levels as the conventional saloon. Though this is very much a niche model, it’s an unusual route to affordable high performance for corporate drivers.
Peugeot 308 e-HDI EGC
Audi A6 BiTDI quattro S line
Citroën DS4 D-Sport HDI 160
Behind a softer, aluminium-lined snout, Peugeot’s refreshed 308 dropped below 100g/km last year – a must-have model in Europe’s most competitive segment. That new-found frugality is the result of e-HDI micro hybrid technology. Destined for 30% of UK models, it’s a keener-thanmost start/stop system and package of weight saving, resistance reducing measures here coupled with PSA’s electronically controlled manual gearbox to get emissions into double figures. But while the engine is peppy, refined and efficient, the sluggish gearchanges can make this frustrating to drive. A no-brainer for lower tax bills, but one which could put customers off at the test drive. AG
This twin-turbo 3.0-litre V6 diesel is the fastest A6 money can buy, but with CO 2 emissions above 160g/km, there’s every chance top-level user-choosers will ”settle” for the 156g/km, 245bhp singleturbo 3.0 TDI. But the £4,700 price increase adds up to more than just extra power: a sumptuous, luxurious executive saloon which also offers 62mph in just over five seconds, 308bhp and a massive torque, and yet gives no visual clues that the default four-cylinder 2.0 TDI isn’t lurking under the bonnet. It’ll give you a muscular growl from the twin exhaust pipes while accelerating too. Not as pleasing as a V6 petrol, but nearly as addictive. AG
DS3 and DS5 may be stealing the media limelight, but DS4 falls into the large and important C-segment and is plenty worthy of recognition. A lot of what’s here works well. DS4 rides firmly but the seats are comfortable and the dashboard solid and well designed. There’s ample rear head and legroom despite the raked roofline and the bodywork is muscular enough to muscle in on the best-looking coupes in its class, helped by the powerful and efficient diesel engine fitted here. Which begs the question, why raise the ride height? Better looks, handling and efficiency await a more conventional stance, and all are more desirable than sitting a few inches higher. AG
SECTOR Lower medium PRICE £18,945 FUEL 74.3mpg CO2 98g/km
SECTOR Executive PRICE £46,160 FUEL 44.1mpg CO2 169g/km
SECTOR Lower medium PRICE £22,945 FUEL 55.4mpg CO2 134g/km
BMW ActiveHybrid 3 A great low-carbon performance car, says Alex Grant, but fleets won’t buy them. SECTOR Compact executive PRICE £40,225 –£43,225 FUEL 47.9mpg CO2 139g/km
DRIVEN IN BRIEF
It must be hard for car manufacturers, trying to cater for ever-changing global demand as it gets steered by emissions standards and differing taxation. There’s no single solution, and the ActiveHybrid 3 is a victim of that. This is a car aimed at specific markets – namely Japan and North America where air
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DISCOVER NEW ASTRA TECH LINE
HIGH SPEC, LOW P11D Miles more fuel economy, much less impact on your pocket.
THE FEATURES STACK UP • Satellite navigation • DMB radio and cruise control • Bluetooth®, USB and aux-in connectivity • Air conditioning • 17-inch alloys
...AND SO DO THE FIGURES • 99g/km of CO2 • 76.3mpg (Combined cycle) • 13% Benefit-in-Kind* • £19,225 P11D • 100% WDA (first year)* Based on the New Astra hatchback Tech Line 1.7CDTi 16v (110PS) ecoFLEX Start/Stop
Now you can make a big impact on your drivers’ tax bills while they enjoy more of the features they want from a company car. That’s the beauty of New Astra Tech Line. Its low-emission, fuel-efficient ecoFLEX engines deliver genuine cost savings. And with so much high spec equipment as standard, the P11D value is kept agreeably low. So with New Astra Tech Line, more really is less.
Many more models are available; including New Astra Sports Tourer and a wide-range of engines. Book your FREE** 3 Day Test Drive today at www.3daytestdrive.co.uk or call 0870 240 4848†
VAUXHALL FLEET Call 0870 010 0651‡ | visit www.vauxhall.co.uk/fleet
Official Government Test Environmental Data. Fuel consumption figures mpg (litres/100km) and CO2 emissions (g/km). New Astra hatchback and Sports Tourer Tech Line range: Urban 65.7 (4.3)-28.2 (10.0), Extra-urban 83.1 (3.4)-50.4 (5.6), Combined 76.3 (3.7)-39.2 (7.2). CO2 emissions 169-99g/km. * = 2012-13 tax year. General Motors UK Limited does not offer tax advice and recommends that all Company Car Drivers consult their own accountant with regards to their particular tax position. ** = Excludes fuel and lubricants; congestion charges; parking and speeding fines and the £250 insurance excess (if applicable). 3 Day Test Drive vehicles are subject to availability and terms and conditions apply. Please refer to www.3daytestdrive.co.uk for full terms and conditions. Drivers must be 25 years or older and is available for Mainland UK only. † = Telephone lines are open Monday-Friday, 9.00am to 5.00pm excluding Bank Holidays. ‡ = Telephone lines are open Monday-Friday, 8.00am to 5.30pm excluding Bank Holidays. All calls may be recorded or monitored for quality and/or training purposes. All figures quoted correct at time of publication (July 2012) and refer to featured model only (New Astra hatchback Tech Line 1.7CDTi 16v (110PS) ecoFLEX Start/Stop (99g/km), all features quoted apply to full New Astra Tech Line range. Model shown features metallic paint, optional at extra cost. Vauxhall Lifetime Warranty covers lifetime ownership of first car owner, 100,000 mile limit, annual check required. The warranty excludes wear and tear and serviceable items and the vehicle must be serviced in accordance with the manufacturer’s servicing schedule to continue the Lifetime Warranty. Terms and conditions apply. Offer available to all Vauxhall passenger cars, (this offer does not apply to car-derived vans) registered from 1 August 2010.
FEATURE Biofuels
A RESTART FOR BIOFUELS? BP reckons that it has finally cracked the issues around biofuels and is in trials, with a 2014 launch in mind. Phil Curry investigates.
Biofuels make up around 3% of transport fuels worldwide, and by 2030, fuel giant BP expects this to increase to 9%.
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B
iofuels have had a rough ride over the past few years. They had been seen as a solution to the ever-growing issue of oil use, but tales of forests hacked down for crop land and animals displaced blotted their image. However, perhaps their time is to come again. Currently, biofuels make up around 3% of transport fuels worldwide, and by 2030, fuel giant BP expects this to increase to 9%. As a result, it has launched three new biofuels in time to trial them in 100 cars in BMW’s Olympic fleet, and it believes these more environmentally-friendly, sustainable products have a future. BP’s initiative, “biofuels done well” is intended to change the way biofuels are seen, and it is trialling cellulosic ethanol, biobutanol and sugar-to-diesel fuels. Each of these will be blended with regular fuel and work with standard engines, meaning there is no need to replace filters, or pumps, or change any component. Biofuels will be blended with regular petrol and diesel. They are created from biomass and agricultural waste products, and offer lower carbon alternatives to regular fuels. CELLULOSIC ETHANOL BP’s cellulosic ethanol is made from highenergy grasses, grown in the southern United States. The company has, over the last six years, acquired expertise in unlocking sugars to make fuels from these grasses. The plants are grown on low-grade land, and are able to be quickly harvested, producing four-times as many gallons of ethanol per hectare as tradition corn-based biofuels. This makes them sustainable, and environmentally friendly. The end result is a blended fuel with an octane level of 103, the company’s highest ever. BIOBUTANOL Biobutanol is BP’s “game changer”, a biofuel which offers lower carbon emissions and allows for drivers to travel further, achieving more miles-per-gallon than other biofuel blends. This too is made using extracted sugars, which are fermented using special microorganisms. It can be blended at higher concentrations than ethanol in gasoline, meaning drivers can use more of it, thus reducing emissions.
SUGAR TO DIESEL Sugar to diesel allows for plant sugars to be used to produce synthetic oils which can be mixed with diesel. Currently, the most well-known biofuels are those derived from vegetable oils, however, sugar-to-diesel allows for sugar cane to be harvested, crushed, and sugars extracted to make bio-oil, which is then converted to diesel. It can offer up to a 60% carbon reduction compared to regular fossil fuels. However, while being trialled, there are still challenges to be overcome before the fuels can go on sale in the UK. Manufacturing
needs to be fully established - something BP is working on with a new fuel processing plant in Louisiana. There are also EU policy challenges to overcome, which recommend the amount of ethanol which can be blended with petrol and diesel. However, BP estimate that cellulosic ethanol and biobutanol will be ready to sell by 2014, with sugar-todiesel taking longer due to manufacturing costs, with the need to reduce price before it hits the pumps. For fleet managers, they will add to a company’s image of being environmentally friendly, as well as improving the range per tank of vehicles.
Q&A WITH PHIL NEW, CEO OF BP BIOFUELS, AND JACKIE FIONDA, VP FUELS MARKETING AT BP. How important are biofuels? Phil New: We believe biofuels are very important. There is a need for carbon reduction and environmentally friendly methods of travel, and biofuel offers the only option that allows for this while retaining the level of automation that we are used to. No one solution will provide all the answers.
Why the decision to trial the fuels in the 2012 Olympic fleet? Phil New: The Olympics allow us to show that these fuels are not just the future, they are now. It’s a large showcase which we can use to show the world what is coming, and also what the fuels mean, being used in regular cars, and not modified in any way.
Biofuels has attracted controversy for not being as green as claimed. What are you doing differently? Phil New: BP is working on ”biofuels done well”. We believe they have to be sustainable, and affordable. Our technology programs are looking at how to create higher quality biofuels from sustainable grasses, rather than using food crops, as has been suggested in the past. Not only will our approach keep these crops for food, but our super energy grasses can be grown quickly and efficiently, producing more fuels over a year.
Apart from the obvious benefits, how else do biofuels aid vehicle engines? Jackie Fionda: The products we are trialling with the Olympic fleet are blended with BP Ultimate, which lubricates and cleans the engine as it works.
How does BP work with car manufacturers to ensure the fuels work with engines? Jackie Fionda: We work very closely with the car manufacturer industry to ensure that our fuels work with their engines. We’ve worked with BMW to ensure the fuels will work well and deliver the best performance. In terms of smaller engines, our biofuels can work well, producing a duel MPG gain with lower carbon emissions, such as the Ford Ecoboost 1.0-litre engine. They will require more from the fuels as they work harder.
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COVER STORY Accident Management
ARE DRIVERS REALLY DUMMIES? Latest figures suggest the accident rate for drivers is much higher than reported. But are business motorists really as bad as claimed? Steve Moody investigates.
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L
atest figures show that road deaths have increased for the first time in a decade, but the scale of serious injury might be under-reported, especially in work-related driving. Last year there were 1,901 deaths on UK roads, up 51 from 1,850 in 2010. Serious injuries rose by 513 from 24,510 to 25,023. But John Davidge, head of fleet technical at Cardinus Risk Management, believes these figures could be just the tip of the iceberg and that the real numbers are much higher. Davidge says: ‘We’re pretty sure we know about all the deaths on our roads but hospital figures alone reveal that there are injuries not reported to police, and therefore not in the stats. Despite all the hype about whiplash, there are genuine cases not felt until days later, which are seldom officially recorded.’ The Department for Transport reports 203,950 documented injuries on UK roads last year but Davidge thinks there could be more than three times that number. ‘An educated estimate is that there are around 700,000 injuries on UK roads yearly,’ he says. ‘Even the official figures underline that there’s no room for complacency at any level, but what none of the statistics measure is the individual level of grief attached to each of these incidents – potentially 700,000 families who have had lives changed, in some cases for ever.’ Meg Munn, Labour MP for Sheffield Heeley, questioned the Department for Transport figures on work-related road deaths and injuries, adding that accidents are not counted as workplace deaths and injuries, and that a full picture is not being provided. ‘We do not know enough about why and how people at work die on the road, or how many members of the public are killed by people who drive for a living,’ Ms Munn said. So what exactly is the level of accidents among company car drivers? And are they really as bad as claimed when it comes to driving standards and the number of crashes? Graham Hurdle, managing director of ETraining World, doesn’t believe that company car drivers are worse drivers than private ones – it’s just a contextual issue.
He explains: ‘Every company car driver is also a private motorist and no-one gets up on a Monday morning determined to be a worse driver during the week than they’ve been over the weekend. ‘What is different is the expectations surrounding company drivers during working hours, as this impacts their mindset, the pressure they are under, their decisions and ultimately their driving. ‘We talk constantly about driver error and attitude being the cause of accidents. Vehicles don’t crash on their own! We also explain to companies that their own culture, and the pressures and expectations they place on their drivers have an impact on their accident statistics. ‘This is less to do with whether company vehicle drivers are better or worse than private motorists and more to do with the factors influencing drivers when they are behind the wheel.’ Total Accident Management, which provides a range of accident management services to over 300,000 company motorists, has analysed its database of nearly 25,000 incidents and discovered just 6.36% of all accidents (1,071 cars) result in the car being designated as a total loss – a tiny fraction of the 450,000 accidentrelated write-offs recorded every year. This suggests that the vast majority of accidents company car drivers are having are smaller, less intensive ones. Interestingly though, there is a disparity between male and female business drivers. Out of all accidents recorded by Total involving women drivers, 36 out of every 100 accidents (36%) were deemed as their fault or partly their fault, while just over 44 out of 100 (44.5%) of accidents were nonfault. By comparison, nearly 41 out of every 100 incidents (40.9%) involving male drivers were proven as their fault or partly their fault, while just over 43 out of every 100 (43.1%) were non-fault. A separate survey of high mileage company car drivers, undertaken between April 2011 and May 2012, revealed that just over half of the recorded accidents (53%) took place in clear weather while accidents in adverse weather conditions, such as
An educated estimate is that there are around 700,000 injuries on UK roads every year
August 2012
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COVER STORY Accident Management
ARE DRIVERS REALLY DUMMIES? rain, snow and sleet accounted for just 4%. Most accidents were recorded on major A-roads (20%), with B-roads (11%) in second place and minor A-roads (9%) in third place. Only 2.27% of accidents were recorded on motorways, reinforcing their relative safety compared to A and B-roads. Nearly 10% of accidents happened in car parks, which are also likely to be the most costly to fix overall. Although vehicles are travelling at slower speeds, drivers have to deal with many other factors as well as maintaining their own concentration. When looking at accident circumstances, 17% involved a driver hitting a parked vehicle, while 15.2% were the result of a driver hitting a vehicle in the rear, and 11% involved a vehicle colliding with an object or property. Penny Stoolman, Total’s managing director, says: ‘Company motorists are professional drivers, some covering tens of thousands of miles on company business each year and generally their standards of driving are very good. But we do believe that regular assessments and driver training will benefit company car drivers, particularly when they are driving a car for the first time, as well as helping fleet managers bring down their accident rates and all associated costs.’ Martin Haggarty, managing director of Accident Claims Scotland, says that business drivers’ collision rates are significantly higher than private motorists, and in his experience, by a figure around 25-30% more. However, while many automatically assume this is a result of them being worse drivers, there are a number of factors that should be taken into account, he claims. ‘It is to be expected that someone who drives 15,000 miles in a year is more likely to be involved in an accident that someone who only drives 5,000 miles,’ Haggarty explains. ‘In addition, many business drivers face more challenging conditions, for example, they are often subjected to long periods of driving in the dark, and are on the road more frequently when rapidly changing weather conditions occur, which
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these scenarios and nod in frustrated agreement that all too many drivers do not care enough for their company vehicles. At E-Training World we recommend companies adopt a zero tolerance to any type of vehicle damage, however small.’ John Davidge of Cardinus Risk Management, says: ‘Clearly there is an increasing desire for more thorough investigations into fatal or serious work-related collisions. More-enlightened employers have longrealised that actively encouraging safety and requiring higher standards Business drivers often face more challenging conditions and spend more time on the road. from drivers leads to significant cost savings and a programme that pays for itself in many ways, and those business that do not understand the benefits and the advantages are missing out on opportunities.’ Sarah O'Sullivan, who runs NYK Group Europe’s fleet, doesn’t believe fleet drivers are dangerous as such. She says: ‘Overall, there are some pretty bad drivers around, but I also believe that employers are extremely aware of their duty of care towards company car drivers, in particular driving safety. ‘Many employers provide that this is the case, and of course, company advanced driving courses, driver handvehicles tend to be newer and better mainbooks and so on in an endeavour to get their tained in line with legal requirements.’ drivers to drive more safely and efficiently. Graham Hurdle disagrees: ‘A company And, the public can give feedback if they see car driver reverses his car into a post on a a bad fleet driver by way of signs saying “am stressful Monday and has to explain that he I driving well, if so call this number etc”. has slightly dented the bumper to his boss. ‘I think fleet driver perception is improvHis boss tells him not to worry and to let ing overall, probably since the introduction the fleet manager know who will sort it out. of all the Duty of Care obligations. At least, That driver feels no personal “pain” from I would like to think this is the case.’ what has happened. Hurdle says: ‘Behaviour tends to ‘In the evening, that same driver takes his change when it’s being watched. We also wife’s new car to the supermarket, and recommend engaging with many middle when he comes out of the store someone has managers. Ensuring middle managers opened their door and left a dent in the door. buy into the concept of zero tolerance, That driver is furious, concerned about how ask questions from their drivers as to much it will cost, then has the hassle of dealhow accidents happened, what had the ing with the insurers, sorting out the repair driver been doing, and referring the issue and suffering the pain of the excess. It plays formally to the fleet manager placing the on his mind for days and he vows never to driver under internal investigation, will park too close to anyone again. have an important impact on the process ‘Many fleet managers will recognise of accident reduction.’ can ultimately lead to more accidents. The collision rates are also influenced by the type of vehicle being driven, as larger commercial vehicles, often driven by fleets, will present far more challenging issues to a driver than a family hatchback. ‘Another factor to consider, and one that has frequently been argued, is that business drivers do not take as much care of the vehicle because they do not own it and consequently don’t have to pay for its upkeep and repair. However, we have found no evidence
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Fiat, the car brand with the lowest average CO² emissions in Europe†. Fuel consumption figures for the Fiat Punto TwinAir in mpg (l/100km): Urban 57.6 (4.9); Extra Urban 74.3 (3.8); Combined 67.3 (4.2). CO² emissions 98 g/km.*Under current DVLA regulations there is no charge for Vehicle Excise Duty in the first year of registration and every subsequent year. Vehicle Excise Duty rates are
reviewed annually by the government and are subject to change. Above rentals based on Punto TwinAir 3dr on Contract Hire payment profile of 3 rentals in advance (equivalent to £507) followed by 35 monthly rentals of £169. All rentals exclude VAT and maintenance. Based on 10,000 miles per annum. Excess mileage charges apply. Vehicles must be registered with Fiat Contract Hire before 30th September 2012. Offer subject to status, a guarantee and/or indemnity may be required. Fiat Contract Hire, 240 Bath Road, Slough, SL1 4DX. †Source: JATO Dynamics. Based on volume-weighted average CO² emissions (g/km) of the best selling brands in Europe, full year 2011.
FEATURE Fleet Maintenance
AT YOUR
SERVICE? Changes to European legislation has increased competition for fleet SMR work, with dealers, independent garages and fast fits all vying for your attention. But which is the best for you? Curtis Hutchinson reports.
S
ervice, maintenance and repair are expensive elements in the company car equation, but that does not mean they cannot be regularly reviewed by fleets seeking to improve cost efficiencies. An important factor in managing SMR costs is selecting where to go for servicing and repair jobs. The basic choice is between franchised main dealers or independently run garages. Here the issues of price, quality and expertise come into play. Both sectors have raised their games in recent years and the best of them can offer fleets excellent customer care packages at highly competitive prices. Franchised dealers enjoy the support and blessing of car manufacturers as both parties have invested heavily in their mutu-
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ally beneficial partnership. While they still dominate fleet SMR work, the independents, ranging from sole traders, regional and national groups to fast fit operators (see page 42), have gained a foothold. According to newly published SMR research from Trend Tracker, Castrol Professional Car Servicing & Repair Trend Tracker 2012 Update, the level of investment in hardware and skills made by the top-end independents is seriously challenging the supremacy of franchised workshops. ‘There has been a general expectation in the market over the last decade that the continued viability of independent garage workshops would be undermined by their limited capital investment base and by advances in vehicle technology. It was
Recent years have seen work traditionally conducted by main dealers being opened up to the independents
anticipated that the servicing and repair of modern vehicles might be beyond the capability of independent garages. This has not generally proved to be the case,’ says Trend Tracker consultant, Toby Procter. Furthermore, recent years have seen work traditionally conducted by main dealers being opened up to the independent sector as a result of European competition legislation ordering carmakers to make available technical information for repair jobs. Also under these rules carmaker warranties are deemed to be protected if independent repairers use manufacturer approved parts and servicing schedules are adhered to. While there's no doubting the professionalism of a growing breed of switchedon independents, fleets are still faced with
a quandary; do they buy on price and go down the independent route, or stick with franchised sites? It's not an easy question to answer as it is dependent on all manner of logistical, geographical and managerial considerations. Also, while franchised sites have been longcriticised for being expensive, a growing number of car brands are offering fleets fixed priced servicing in a bid to retain their custom. ‘There are upwards pressures on SMR costs in labour, parts and consumables and the difficulty facing fleet managers is to keep them under control,’ says Gary Killeen, GE Capital's UK fleet services commercial director. ‘The developments that have helped most noticeably over the last few years are initiatives from manufacturers designed to drive
August 2012
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FEATURE Fleet Maintenance
AT YOUR SERVICE? more fleet SMR business into franchised networks. Audi, Volkswagen and SEAT, among others, are all offering fixed price servicing, while various fleet national pricing programmes have also been introduced.’ Killeen believes franchised workshops have addressed the pricing issue, and even when they are more expensive might offer the best long term solution. ‘While it is still valid to debate the relative advantages of using franchised or independent garages, these recent initiatives have made the real cost of using the franchised network much more price competitive with major independents. Certainly, franchised dealers remain more expensive at face value but, thanks to factors such as the likelihood of goodwill claims through franchised dealers, the perceived negative effect on residual values of using independents and the overall quality of the driver and customer experience, this difference, we believe, disappears,’ he adds. Neville Briggs, managing director of CFC Solutions, agrees manufacturers have made a lot of headway in rolling out national fixed price servicing schemes, which some independents are now trying to emulate. ‘Fleet SMR in 2012 is not just about containing costs but making them as predictable as possible. Against an economic backdrop that continues to be uncertain there is a strong desire to insulate against unexpected spending and to ensure that everything stays within budget,’ he said. ‘Fleets are therefore showing a lot of interest in fixed price initiatives, such as menu pricing, which is becoming much more widespread in franchised dealers across a much larger number of jobs. Even among fleets that are buying more SMR from the independent sector, there is a move towards using fixed price servicing.’ Another issue impacting choice is the growing trend towards running cars longer than three years/60,000 miles as businesses aim to minimise their fleet expenses in the current economic climate. However, the downside of this is the fourth year exposes most cars to the potential of out of warranty
work and this will effect outright purchased and funded cars. Ogilvie Fleet, which manages more than 10,000 cars and vans, has noticed the average age of its vehicles has risen to 41 months. ‘As most warranties expire at the end of the third year total mileages will increase, thus the proportion of SMR in the total rental is increased. However, there is still a rental reduction overall as the residual value curve flattens,’ says Nick Hardy, sales and marketing director. Ogilvie Fleet’s policy is to only use franchised dealers for SMR work unless clients specifically request that independents are used. It believes franchised sites offer the best in terms of service and access to manufacturer data. It also maintains that independents do not offer significant savings. ‘We find that using franchised dealers results in manufacturers providing greater support for any out of warranty work if the need arises, better residual values are achieved and overall costs aren’t actually increased, as with independents longer job times generally outweigh any labour rate reductions. ‘Even if there is a saving of a few pounds we believe the customer experience of drivers and our clients is more important,’ says Hardy. This question of franchised sites having the monopoly on standards is challenged by the Fleet Support Group (FSG), the fleet management company which only recruits independent garages to provide SMR work in its national network of around 500 repairers. ‘We treat garages like we treat our customers, they are our partners in delivering a first rate service to clients. We started using independents virtually before any other fleet organisation because in our experience customer service is consistently to a high standard,’ says FSG chairman and founder, Geoffrey Bray. ‘I am not anti-franchised dealers; I am antibad service. Our independent network delivers excellent customer service at the right price without any up-selling,’ he adds. Bray claims his network offers SMR savings over franchised sites of between 20-30%. ‘Our promise to customers is that our
Fleet SMR in 2012 is not just about containing costs but making them as predictable as possible
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FEATURE Fleet Maintenance
AT YOUR SERVICE? network will not charge for unnecessary items. To deliver this objective we provide nationwide fixed price servicing and repairs. While cost savings remain at the crux of the debate there's also the important matter of resale values to consider, and whether a franchised dealer's stamp in a service book is actually worth more than an independent's. It's widely acknowledged that top of the range performance lines, notably Mercedes AMG and BMW M-series, need to stay in the franchised sector to reap the best returns, but what about more mainstream models? John Davies, chairman of the Vehicle Remarketing Association, which looks after the interests of used car sellers, dispels the
myth as he believes there's pretty much parity between the two. ‘Trade and consumer buyers will start by checking whether the car has a service history. Next they will check where it has been serviced and any supporting paperwork the car may have, such as servicing bills. ‘We believe that buyers will still pay a little more for a franchised dealer service history as they have extra peace of mind if it has been serviced by an own-brand dealer, and that its warranty is still intact if the car is less than three years old. ‘Otherwise if a standard car is out of warranty then a full service history, franchised or non franchised, shouldn't be an issue.’
THE FAST FIT ALTERNATIVE Big name national repair chains are an increasingly viable alternative to franchised workshops, especially with fast fit specialists, such as Kwik-Fit and National Tyres, offering specialist fleet services. Fleets are also being targeted by autocentre chains, notably Formula One and more recently Halfords, which has already has 260 sites. As one of the biggest independents serving the business sector, Kwik-Fit Fleet believes it offers a better service than franchised workshops. The company has invested heavily in fully trained mechanics and specialist equipment to offer manufacturer servicing across most of its 672 outlets. ‘We estimate that the average servicing cost is up to 20% less than at a franchised dealer,’ said Peter Lambert, Kwik-Fit's fleet director. ‘Overall it is difficult to find any work carried out on a company car or van that will be cheaper at a franchised dealer than at a fast-fit, which is why Kwik-Fit Fleet has seen its share of the corporate vehicle servicing market increase 35% last year.’ According to Lambert the chain is also upping its game in terms of the quality of its centres, with plans for 100 sites to be modernised annually until the network is completed at a cost of £20m a year. These are significant sums aimed at facilitating existing retail customers and wooing new corporate accounts.
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I am Giulietta. I am £289 per month,* business users only.
SAFETY
MODELS
A L FA T C T
Awarded a five-star Euro NCAP rating. The safest car in its class†.
Both the petrol 1.4 TB MultiAir 170 bhp ALFA TCT Lusso and the 2.0 diesel 170bhp ALFA TCT Lusso are available at £289 per month.
Dual-clutch semi automatic transmission allowing you to make smoother gear changes without losing acceleration.
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.
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@alfaromeouk
Model shown Alfa Giulietta 1.4 TB MultiAir 170 bhp ALFA TCT Lusso at £22,345 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 1.4 TB MultiAir 170 bhp ALFA TCT Lusso including Ghiaccio White special paint at £490 on Contract Hire payment profile of 3 rentals in advance (equivalent to £867) followed by 35
monthly rentals of £289. 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 September 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.
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MPG Marathon
SWOT TEAM
MERCEDES-BENZ A-CLASS v RIVALS
THE RIVALS AUDI A3
BMW 1 SERIES
VOLKSWAGEN GOLF
THE TEAM
Martin Ward (MW) Manufacturer Relationship Manager, CAP
Alan Senior (AS) Director, Vehicle Information Publishing
Mark Jowsey (MJ) Commercial director, KeeResources KwikCarCost
Andy Cutler (AC) UK Car Editor Forecast Values Glass’s
August 2012
47
SWOT TEAM This month the SWOT Team analyses the main strengths, weaknesses, opportunities and threats for the new MERCEDES-BENZ A-CLASS against its closest rivals. Here is what they have to say...
STRENGTHS
WEAKNESSES
MW The Golf has always had a huge following, and
MW Mercedes-Benz has to worry about the baggage carried from the previous A-Class and have to distance the new car from the old. The new A3 is a great car, but is it different enough to distinguish it from the last one? The 1 Series has gained more much needed interior room, and rear legroom is now very acceptable, but does anyone know about it? Understanding Volkswagen’s BlueMotion and BlueMotion Technology badging policy is a bit of a mystery to most. Despite the Golf having relatively high RVs compared to the majority of all other vehicles in C-Sector hatch, it doesn’t match the other three.
this is set to continue, so used values will remain high. The all-new A-Class is a huge improvement on the former one in terms of design and packaging, while the new A3 is an evolution, and not revolution, but the engine has improved, and quality has moved up yet again. The BMW 1 Series is a fleet favourite, and the EfficientDynamics package with its sub-100g/km figure makes it a good choice.
AS Audi’s new A3 comes with top drawer image and desirability plus quality, and since the model was first introduced back in 1996 the demand from both new and used buyers has been constant, helping the car enjoy strong residuals. The new A-Class brings a fresh and modern look to the brand: interior design and quality is vastly improved and passenger space is more generous, while the conventional driving position brings Mercedes in line with the competition. BMW running costs will be low with market leading CO2 outputs, while the Golf is about to be replaced, yet is still pretty strong in this company. MJ Finally Mercedes-Benz has a true competitor in this crucial sector, putting an affordable, distinctive car within reach of many corporate buyers. The new A3 is a very different car, not a facelift, with the latest Audi construction and engine technology helping deliver good CO2 and MPG improvements. Greater refinement plus more standard and optional equipment should protect its position. AC The BMW, Audi and Mercedes all have a more premium feel to them but the Volkswagen has excellent build quality, and they all have excellent residual values. Inside, I would say that the Audi just pinches it on interior quality while the BMW has the best drivetrain but isn’t the best looking of the bunch. All are similar with regards to space, with the Audi just shading boot size.
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AS Some would say the A3 looks too much like the previous model, and options are expensive. The original A Class launch was a disaster back in 1998 and it never really recovered, even with an all new (but similar profile) model launch in 2005. Should this one have got a new name? The 1 Series has never been a pretty car and the styling of this latest model does little to address this, while in this company the Golf just does not have the same image. MJ Existing A-Class customers may not be prospects for this car, so conquest sales are critical. There will be some expectatiuon management too: media concentration has been on AMG Sport cars, and lower trims such as this one look less exciting. Renault-sourced 108bhp 1.5 diesel may raise eyebrows, and availability is a slight concern. For the A3, the wait until the vital five-door Sportback arrives is a shame. The new car is much more different than it may appear – but it’s a difficult message to deliver. AC The purchase price can really start to get quite high on all of these vehicles when you begin adding some of the expensive options that are available – especially when you compare transaction prices against many of their mainstream rivals.
MERCEDES-BENZ A-CLASS
AUDI A3
BMW 3 SERIES
VOLKSWAGEN GOLF
OPPORTUNITIES
THREATS
MW Undoubtedly the new A-Class will steal business from the BMW and Audi. The new A3 with its improved quality and new high tech engines and systems will be worth waiting for, but CO2 needs to be a bit lower to compete with the BMW. The Golf will always find new customers, and will probably not pinch too many from the premium German manufacturers, but will just keep nibbling away at the non-premium C-segment carmakers by offering perceived higher quality car.
MW All these cars are all threats to each other, but there are others making appearances such as the Volvo V40 and Lexus CT200h, and no doubt there have been customers who have switched from highend A3 and 1-Series into a low-end Range Rover Evoque. The biggest threats for this quartet of high quality hatches is the fact that too many are being sold, and the worry is will there be too many used ones on the market over the coming years.
AS The A3 has truly made its mark in the evertougher and image-conscious fleet market. This latest model should help it to stay there for some time to come, with diesel models dominating sales. Many buyers may already have had one of the competitor cars, and with a generous standard specification and a wide variety of engines, A-Class may be just the change that they are looking for. The 1 Series is an appealing package both for employer and employee with lower than average running costs made better with strong residuals, while there is always somebody waiting to buy a used Golf.
MJ This is a great opportunity for Mercedes-Benz in a strong sector already full with a high volume of premium products – particularly Audi A3 and BMW 1 Series – but the A-Class should generate many new clients for the brand. A3 is a strong product and should satisfy existing A3 drivers and attract new ones, while the driving dynamics are a major positive that BMW has continued to capitalise on.
AC The opportunities are still big for these cars and that is one of the reasons Mercedes-Benz has remade the new A Class in this form. Each one has its own loyal following and similar running costs, and it will all come down to personal preference, but I am sure that the A-Class will take some new business away from the others because it’s a Merc and offers something new and different.
AS Threats are many, from downsizing to migrators into the non premium brands, while niche models contnue to attract company car drivers – for Audi the A1 and perhaps Q3 will win many orders. But us that a bad thing? For the Golf, pricing is crucial: it’s high enough now to compare with the premium brands and so it’s in danger of becoming a little too big for its own boots. MJ The oldest car in the group is still a strong offering and a safe bet, and although it is seen by many as a benchmark, Golf does not quite enough premium status alongside the rest of this group. New kid on the block A-Class faces serious competition from the all these cars, but further afield are the Lexus CT200h and the forthcoming Volvo V40 which means this is a battlefield – even without considering the volume brands. The potential rewards are huge, but won’t come easy.
AC I think that one of the main threats to these vehicles is volume: they are all pumping out masses of each model and there is a risk that these vehicles will start to devalue due to the supply of used examples being so readily available, and due to the rise in competition there could be greater discounts on new which again will affect used car values. There are also a number of excellent mainstream rivals to consider, and some people may not see the point of paying the extra for the badge when there are so many of them on the roads.
August 2012
49
SWOT TEAM
MERCEDES-BENZ A-CLASS v RIVALS
MERCEDES-BENZ A-CLASS
Mercedes-Benz A180 CDI BlueEfficiency SE 5dr OTR: £21,200 P11D: £21,145 Fuel: 74.3mpg CO2: 98g/km Residual value (3yr/60k): £8,300 (39%) BiK: 13% SMR: £1,856 Fuel costs: £4,996 Insurance: £2,205 Finance: £2,855 NI: £1,226 VED: £0 Cost per month: £723
AUDI A3
New Audi A3 2.0 TDI SE manual 3dr OTR: £21,505 P11D: £21,450 Fuel: 68.9mpg CO2: 106g/km Residual value (3yr/60k): £8,950 (42%) BiK: 15% SMR: £1,827 Fuel costs: £5,494 Insurance: £3,435 Finance: £2,896 NI: £1,421 VED: £40 Cost per month: £769
BMW 1 SERIES
BMW 116d EfficientDynamics 5dr OTR: £20,885 P11D: £20,830 Fuel: 74.3mpg CO2: 99g/km Residual value (3yr/60k): £9,500 (46%) BiK: 13% SMR: £1,732 Fuel costs: £4,996 Insurance: £2,550 Finance: £2,812 NI: £1,207 VED: £0 Cost per month: £686
VOLKSWAGEN GOLF
VW Golf Match BlueMotion 1.6 TDI 5dr OTR: £20,445 P11D: £20,390 Fuel: 68.9mpg CO2: 107g/km Residual value (3yr/60k): £7,325 (36%) BiK: 15% SMR: £1,395 Fuel costs: £5,494 Insurance: £2,880 Finance: £2,753 NI: £1,351 VED: £40 Cost per month: £751
THE VERDICT
Standard equipment: • Bluetooth, USB and auxiliary inputs • Half-Artico upholstery • Engine start/stop • 5.8-inch tablet-style display screen • Active bonnet, Collision Prevention Assist, Attention Assist Optional equipment: • Cruise control £260 • Park assist with Parktronic sensors £690 • Two-zone automatic climate control £530 • Metallic paint £570 • Becker Map Pilot satellite navigation £495
Standard equipment: • Bluetooth and USB connectivity, SD card slot and auxiliary input • Electrically retractable 5.8-inch colour display screen • Driver Information System with fuel-saving displays • Engine start/stop with energy recuperation • Multi-function steering wheel Optional equipment: • Cruise control £225 • Parking sensors (front and rear) £595 • Metallic paint £525 • Leather upholstery £1,115 • Satellite navigation £495
Standard equipment: • Bluetooth and USB connectivity with auxiliary input • Drive Performance Control – ECO Pro, Comfort, Sport and Sport+ modes • Engine start/stop with brake energy regeneration • Front fog lights • 6.5-inch display with iDrive controller Optional equipment: • Driver Comfort Package £500 • Metallic paint £515 • Leather upholstery £1,115 • Navigation System Business £1,550 • Park assist £225
Standard equipment: • Bluetooth and USB connectivity, six-disc CD changer with touch-screen • Front and rear parking sensors • Engine start/stop • DAB digital radio • Cruise control Optional equipment: • Metallic paint £495 • Leather upholstery £1,980 • Park assist £90 • Touch-screen satellite navigation £1,205 • Multi-function steering wheel £170
WITH its more conventional body shape, the A-Class finally gives Mercedes-Benz a tool set to steal buyers from the most established models in its sector, backed by high quality interiors, good looks and low CO2 engines. But it has the legacy of its unpopular predecessor to overcome and its lowest-emitting engine is sourced from Renault, which may put off some potential buyers. The A-Class also faces a crowded premium sector, joining newcomers such as the Lexus CT 200h and Volvo V40.
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Simple is lots of car brands under one roof.
Because we know you don’t want to shop all over the place for your vehicles, as well as offering the full range of Volkswagen Group vehicles, including Audi, ŠKODA and SEAT, we can also source any other vehicle you need. To find out more about our range of vehicles, call us on 0870 333 2229 or visit www.makingleasingsimple.co.uk today.
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Making leasing simple
MANAGEMENT Fleet Academy
Join the Telematics – a cost-benefit analysis (Ross Durkin, Publisher, Fleet World Group)
Fleet World magazine’s Fleet Academy is a forum where fleet consultants and professionals in possession of valuable information can impart it to a select audience of professional fleet decision-makers. At the heart of the Fleet Academy is a network of independent fleet industry experts whose work brings them into regular contact with end-user fleet managers and other organisations playing a key role in the fleet industry. These fleet experts provide a regular feed of information that is posted on the website forum in the form of discussion topics. Typical areas of interest include, but are not limited to: taxation, finance and accounting, legislation, environmental issues, fleet safety, insurance, fleet management, supply issues, security, etc. Fleet suppliers are permitted to respond to queries if it is felt that their response represents honest and impartial advice. This aspect of the service is strictly moderated in order to ensure that the quality of information provided remains of the highest standard. We have already attracted a strong network of fleet professionals, and our expert contributors have submitted a number of thought provoking discussion topics, a few of which are previewed to the right. We hope you will consider joining us in this exciting new venture into the world of fleet. To find out more about Fleet Academy and request membership, please visit:
www.fleetacademy.co.uk
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I recently listened to a presentation on the benefits of implementing telematics systems. It wasn’t given by a telematics provider so while the presenter was generally in favour of different tracking systems, the accusation of “you would say that, wouldn't you” could not be levelled... on this occasion. There’s no shortage of arguments in favour of telematics for large, commercial fleets, but I’d be interested
Nigel Trotman, Head of Strategic Consultancy, Alphabet GB replied... For today’s (and tomorrow’s) fleet manager, the word “telematics” requires some re-definition. It is no longer all about “where are you?” or “where have you been?”. More and more of the systems on the market also monitor how you drive – and this is where it is getting really interesting. If, as a fleet manager, I can add some equipment to the vehicle that helps to identify drivers exhibiting risky behaviour, or those with poor fuel efficiency, I am going to be interested. Add some relevant training as part of the package, and I can see real potential benefits.
Michael Baker, Chief Engineer – Commercial Vehicle and Off Highway, Ricardo replied... I have seen the introduction of technology have a positive effect on driver risk, fuel consumption and lifecycle costs, but these are only short lived, if not part of a wider strategy. The key to many of these systems is the ability to engage with the driver. Without the driver taking an active part in the process the benefits are minimised. As an industry we must work with telematics, but we must also strive to work out how best to use this technology in the most effective way.
debate...
in
ith w on iati c o ass
French breathalysers – one or two for the road? Edmund King, President, The AA to hear from any organisations that have successfully implemented systems into more traditional company car fleets. The evidence I’ve seen suggests that savings can be made from a reduction in unauthorised travel, improved fuel consumption and reduced wear and tear, but what does it all add up to?
T. Branch, Interim Fleet Manager, RSPCA replied... I have recently fitted telematics to the vast majority of the fleet, both LCV and company cars. The benefits go well beyond cost savings in fuel, accident cost and others generally used in business cases. It provides a continuous training aid for the driver and identifies those drivers at high risk or high risk drivers. Training can then be much better targeted to the individual driver and tailored to their skill needs. For private use, the unit is switched to a different mode so the individual’s privacy is protected. This also has the benefit of recording a driver’s private mileage, leaving much less room for discrepancies. It also provides an auditable trail which keeps HMRC happy and the organisation less open to investigation on tax payments. Personally, I don’t think it will be too long before manufacturers consider fitting basic telematics as standard.
Since new legislation came into effect on 1 July, UK drivers heading off to France have had to carry breathalysers so they can self-test for excess alcohol before getting behind the wheel after a drink. French law now requires all drivers to carry one breathalyser, marked with NF (French approved) on the box. Failure to do so will result in an €11 (£8.80) on the spot fine. Although any steps towards improving road safety should be applauded, self testing can be dangerous. The rate at which the body can process alcohol varies hugely from person to person, meaning that you can pass a self-test in the car park, and fail the police an hour later when blood-alcohol levels have peaked. It has been suggested that the kits could be more useful in ensuring drivers are safe the morning after a night of drinking, rather than directly after consuming alcohol. “Morning after” drink-driving can be a real issue for organisations where employees make work-related journeys, or regularly attend functions with clients. Do you think implementing a similar self-test system in the UK could help to ensure workers are safe to drive before getting behind the wheel? Would you consider adopting these kits as part of your fleet management strategy, or do you already have drink-driving policy in place?
Kevin McFeeley, Transport Manager, SMBC replied... Two things come to mind; Firstly, I think this is not going to solve the problem in France or any other country. There are too many loop holes in self-testing – the delay between self-testing and being stopped being the obvious one, having someone else blow for you, the occasional bad read... Secondly, you have to tip your hat to the French who will be manufacturing and selling these in their hundreds of thousands to not only the UK but I’m guessing just about anyone who transits France from any of their neighbouring countries. Whilst this is bringing attention to the overall problem, it’s not going to solve it and I personally do not see it forming part of a transport strategy within the UK. The real solution is driver awareness and much, much harsher penalties for breaking the drink drive law.
Dr. Will Murray, Research Director, IDS replied... Research and experience suggests that responses to drink driving in the at-work road safety sector should be risk-based. Where drink driving has the potential to be an issue, we think breathalysers (and alcohol ignition interlocks in vehicles) are important – along with clearly communicated, robust policy, rules, coaching and consequences.
August 2012
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FEATURE To buy or to lease? // Part 21
FUNDING METHODS WHAT WORKS BEST FOR YOUR FLEET...
This month Professor Colin Tourick looks at some alternative funding methods. Contract hire has been popular for decades but by the early 1980s it was apparent that it did not work for all businesses. Companies that were exempt or partially exempt for VAT purposes couldn’t recover some or all of the VAT charged on the lease rentals. Also, many companies didn’t use contract hire for their expensive vehicles because at that time there was a permanent corporation tax disallowance on rentals for ”expensive” cars. The contract hire industry responded by creating contract purchase.
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CONTRACT PURCHASE The concept is quite simple: by putting three agreements together a client could be given all of the advantages of contract hire without these VAT or corporation tax disadvantages. Those three agreements were: • A conditional sale or hire purchase agreement containing a lump-sum (”balloon”) payment at the end of the contract • A repurchase undertaking • A maintenance agreement Under the conditional sale or hire purchase agreement the client agreed to buy the
vehicle on deferred purchase terms (by paying instalments over a period of time). The repurchase undertaking said that the contract hire company would, at the client’s option, buy the vehicle back at the end of the contract for a pre-agreed fixed price. The maintenance agreement covered the standard maintenance items normally found in a maintenance-inclusive contract hire agreement. As the finance agreement was a purchase-type agreement, no VAT was chargeable on the payments and the
permanent tax disallowance on lease rentals did not apply. The maintenance agreement was separate so it was clear that the client could recover VAT on the maintenance payments. It is fair to say that this arrangement attracted the early attention of HM Revenue and Customs, as it denied Customs the VAT it might otherwise have expected to receive. There were a number of well-publicised cases where contract hire companies had to withdraw contract purchase agreements that were challenged by Customs and to reissue them after consultation with legal counsel. In 1995 there was a change in the VAT rules, and leasing companies were allowed to recover VAT when buying vehicles to lease to clients. Most other businesses remained unable to recover this input VAT. This change in the law led to a general reduction in contract hire rentals. This tilted the equation in favour of leasing and contract hire, thus adding another variable into the analysis fleet managers had to carry out when deciding which financial product to use to acquire their vehicles. The uncertainties of the early years of contract purchase are now long gone and it is now a common form of vehicle finance. Most lessors now combine the three agreements – conditional sale (or hire purchase), maintenance and buyback – into one document. Contract purchase is widely used by companies and is also the basis of a very popular method of consumer motor finance called personal contract purchase. Contract purchase is similar to contract hire but there are important differences. As the contract purchase contract is legally a conditional sale or hire purchase agreement under which you are buying the vehicle, it is an ”on balance sheet” product. The pre-agreed repurchase price that the supplier agrees to pay represents their estimate of the likely future value of the vehicle. This is called the guaranteed repurchase price, the guaranteed minimum purchase value or the guaranteed minimum future value (GMFV). The supplier takes the risk of whether you will sell the vehicle back to them and the market price of the vehicle if you do so. Contract purchase represents less than 5% of the fleet finance market, reflecting the fact that it is a niche product. Contract purchase gives you the option to buy or return the vehicle, as well as the tax advantages described above. It offers predictable costs and you only pay VAT on the maintenance element. As with outright purchase, contract
purchase is currently an ”on balance sheet” form of finance. You might also use contract purchase if you like the idea of having an option to either buy the vehicle or hand it back to the supplier at the end of the contract.
LOANS Many companies use loans to finance their vehicles. These are usually unsecured: that is, the lender cannot repossess and sell the vehicle if the borrower stops paying. So unless your business has high financial strength, the interest rate will be high to compensate for the fact that the lender lacks security. An exception to this is where the lender holds a debenture or charge – a registered security that gives them fixed and floating charges over specific assets owned by the borrower. A charge is a mortgage over property, a right you give a lender/lessor to deal with your assets in the event of your default. It is registered at Companies House and on your company’s register of charges. Charges give the lender security (i.e. rights) in your assets. The lender can take possession of those assets, control them and sell them if you fail to meet your obligations. Charges can be fixed, in which case they list the specific assets to which they relate, for instance, your fleet of vehicles. Or they can be floating, in which case they give the lender security over a general class of assets over which you have title, the nature of which changes over time (for example, debtors). If the lender has a fixed charge over an asset, any sale of the asset may be ineffective, and even if it is effective the buyer buys the asset subject to the charge. A floating charge becomes fixed when the borrower or hirer defaults on their obligations. There are lots of advantages to using loans. They are very widely available, can be obtained at fixed or variable interest rates and for short or long periods. You can use them to fund one asset or many. They are simple to administer and require no knowledge of lease accounting. Variable rate loans can usually be repaid without penalty. Loan interest is normally deductible as a business expense for corporation tax purposes. Having used the loan to buy your vehicles you can claim capital allowances. The downsides are that vehicles financed on loans have to be capitalised on your balance sheet and, importantly, when most companies borrow money to
buy a car they are unable to recover any input VAT tax on the purchase price.
BANK OVERDRAFT Bank overdrafts are the most widely used form of business finance in the UK. Most companies, including most cash-rich ones, have an overdraft facility. The operation of an overdraft could not be simpler. You agree an overdraft limit with your bank manager and then you deposit funds and draw cheques in the normal course of your business. Once every month or quarter you are charged interest on the amount of the overdraft that you have used, for the number of days you have used it. An overdraft is normally secured by a debenture. It is always provided as a variable rate interest product, the interest rate being quoted as a margin over the base rate of the bank that supplies it. Bank overdrafts are cheap to set up and, as you only pay for what you use, they are cheap to use. Many companies use overdrafts to fund their vehicles but it is probably not best practice to do so. Overdrafts are a type of working capital. That is, they provide you with cash to finance the trade cycle between buying goods and services to make your product, and being paid by your customer. If you use your overdraft to finance long term assets, such as vehicles, you will drain your company of its working capital. Conventional business thinking is that you should use short term money (loans, other short term borrowings, overdrafts) to finance the trade cycle and other shortheld assets. You should use longer term borrowings (leases, hire purchase, long term loans) to finance the acquisition of longer term assets (vehicles, plant and equipment, etc). Very long term assets, such as property, should be financed on very long term borrowings, such as mortgages or by issuing share capital. It is a truism, but companies don’t collapse because they make losses. They collapse because they don’t have the money to pay the wages at the end of the month. If you borrow money for the correct period, your company will not risk becoming starved for cash in the short term simply through having used up its short term funds to buy long term assets. Most overdrafts are offered as variable rate products. If you finance your vehicles on overdraft for three years you will be exposed to interest rate changes during that time. If rates rise, the actual cost of financing the vehicle may end up being much more than you had planned.
August 2012
55
INTERVIEW Martin Burke Skoda
Skoda bares its teeth The Czech brand is gunning for your fleet business, and has the products and services to get it, Martin Burke tells Steve Moody. Nice, cheery Skoda. Never too aggressive with their strategies, with inoffensive cars, and friendly, not too pushy, staff. Yeah, right. Skoda is a brand on the march, with ambitious growth plans in fleet, a raft of new products and programmes and a strong belief that its products offer fleets the perfect combination of cost, quality and consistency. It’s a message that seems to be getting through, as the brand grows while many others wither this year. As head of fleet sales Martin Burke points out: ‘Certainly for the brand, this has been the best ever start to a year: 28,000 units for the first six months, and the brand’s market share is at 2.7%. On the fleet size, we’re up to 2.4% share of the fleet market and 2,000 units ahead. In the fleet market that’s a significant shift with the fleet market overall slightly down, and Skoda is up 15%. ‘But we need to make sure we’re consistent, regardless of size. Where we’ve been really fortunate is that we’ve always carried a substantial order bank, which is at about 12,000 units at the moment, and that means we can trade in an orderly fashion, and not have to take short-term actions. The factory is happy, and so we can make the right decision, and not force the market. Although it is tough out there, and the market is going to be tough in the second half of the year – the leasing firms are saying that orders are down, and contract extensions are increasing. ‘The plan is that by 2015 Skodas’ market share in the UK would be at 3.5%, with seven car line-up, including a new derivative of Rapid and a new Yeti. ‘We’re on track to finish at 52,000 cars this year and by 2015 70,000-plus is realistically achievable.’ So why has Skoda been doing so well? Consistency, new intiatives and motivated staff who work well with fleets, he reckons. He says: ‘We pride ourselves on being serious about the way we go about business, but are unique and identifiable in the way we go out and see customers. In every meeting we take our full brand presentation to show where we sit in the market, and how the brand is developing. ‘We work with Kwikcarcost, so when we go out to fleet customers, we can give them independent analysis of the cost of their fleet, go into detail about all brands and we’re able to print that off. A lot of other brands ask for orders, we ask for business, which is a subtle difference and its adds value to show how our cars sit in terms of cost. It normally gets us a door open again. ‘Our guys feel in the fleet arena that it’s a voyage of discovery to show the breadth and depth, and they’re very passionate about that. We don’t take business for granted, but sometimes still have to challenge the old perceptions. That’s less of a challenge than it used to be, but it still exists. Skoda has a five year strategy in the UK, and growing fleet is a massive part of it. And having this strategy allows Burke and the team to show that they are in it for the longer term.
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‘Previously we had a national focus, and that will continue. For the first time the fleet sales team is now up to eight, and that again means you can knock on more doors,’ he says. ‘But there’s also a local focus too. ‘We’ve now got a Fit for Fleet retail initiative with 40 retailers dedicated to work with us, and particularly target SMEs. We’ve put a complete support package in place such as additional demonstrators and specific training, and we have a clear national strategy but it needs a number of the network to come along as well. ‘There are two now parts to what we do: Skoda Business Direct goes live in the middle of August, and puts Skoda finance packages right at the top of the Google web search engine, so that SMEs come back to ourselves, so we can drive local business contract hire through our retailers. It’s proactive, and delivers customers to our network. ‘There are lots of sub-25 businesses and it’s about finding ways to reach and access them, but is the retailer in the locality better suited to dealing with them? ‘We’ve also introduced Skoda Talk, which is a business company monitoring activity for Fit for Fleet. Rather than just mystery shopping, we monitor inbound and external activity to our retailers so we know how much footfall we are generating, and if we are driving enough interest. It also tells us if our retailers are doing enough for our customers.’ But it’s not just back office systems and new initiatives driving this growth: new products are vital too. Burke explains: ‘The job we have had is to change perceptions and get acceptability for the brand in the fleet market and we have made massive strides. If you look over the next 18 months we have a wave of new models and derivatives coming every six months. We’ve got Rapid in November followed by Octavia in April, and we’re very excited about that car from a fleet point of view. But then there’s refreshed Superb hatch and estate in June and then facelifted Yeti and Fabia. That means the whole range will have been freshened up. ‘What’s happened now with the introduction of Rapid is the introduction of the new face of Skoda, and the new sharper design language will open us up to new fleet customers. With the Rapid, it has size, space and value that is unbelievable for around a £13,00 starting price. ‘We need bums on seats so they understand the position of our cars, to understand that our products might be high on value but they are premium quality too, and I believe that is unique proposition. We’re not a low budget value brand and with the quality of cars that puts us in a slightly different bracket.’ As Burke illustrates, Skoda is no longer the quiet brand of the VW Group: it has the products, the plans, and the confidence to make a big mark in the market.
“We don’t take business for granted, but sometimes still have to challenge the old perceptions. That’s less of a challenge than it used to be, but it still exists.”
August 2012
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MARKET OVERVIEW Daily Rental
Alliance Asset Management
Arnold Clark Car & Van Rental
Alliance Corporate Rental provides cost-effective vehicle rental solutions to companies of any size, offering daily rental and flexilease from one day to 12 months and contract hire/leasing for longer term requirements. Alliance can provide vehicles of any type including cars, prestige and performance vehicles, minibuses, light commercials, 4x4, specialist and adapted vehicles through to refrigerated vans and 7.5t and above. With both a national supply network of over 1,500 locations and our own specialist fleet, Alliance operates on a UK-wide basis, ensuring access to the UK’s most extensive vehicle fleet, quality service, consultative approach and simple invoicing. All these services can be accessed through our easy-to-use online rental management system.
Arnold Clark Car & Van Rental is one of the UK’s largest, independently owned rental companies with over 40 years experience in the provision of long and short term tailor-made economical fleet solutions for corporate and retail clients. With access to a nationwide, multi-franchise fleet of over 55,000 vehicles in branches throughout the UK and close links with vehicle manufacturers, Arnold Clark Car & Van Rental offers extremely competitive rental rates on a range of the most up to date cars and vans. An on-line booking facility for both retail and corporate clientele is available and business users can also benefit from a dedicated on-line management reporting facility.
Contact: Riane Cooke sales@alliancerental.co.uk
Tel: 0844 4142998 www.fleetcentre.com
In the UK, Enterprise Rent-A-Car is the sole specialist in providing replacement vehicles and courtesy cars, which are relied upon in the event of an accident. Enterprise also offers daily and weekend rental for private or business use. Founded in 1957, Enterprise is headquartered in St. Louis and has more than 7,700 offices in the UK, Germany, Ireland, the United States and Canada. Enterprise, which started in the UK in 1994, has rapidly expanded and currently has over 370 locations across the UK & Ireland, with more than 3,400 staff. Three quarters of the UK population are within five miles of an Enterprise location. For more information about Enterprise, visit www.enterprise.co.uk.
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Tel: 0845 702 3946
Europcar Group UK
Enterprise Rent-A-Car
Contact: Tony Francis tony.francis@erac.com
Contact: Business Centre central.reservations@arnoldclark.co.uk www.arnoldclarkrental.com
Tel: 01784 221 300 www.enterprise.co.uk
Europcar Group UK provides access to the UK’s leading fleet of over 45,000 cars and vans, through its network of over 200 locations across the UK and a presence in 140 countries worldwide. We have a proven track record of innovation, great service delivery and a quality fleet. Europcar offers flexible short term and long term products to suit all business requirements - including delivery and collection, diesel only models, corporate loyalty programmes and a range of payment options. These services are supported by innovative online solutions to help businesses monitor and manage vehicle use and to support cost efficiencies, duty of care responsibilities and address environmental concerns.
Contact: Martin Fisher businesssolutions@europcar.com
Tel: 0871 384 0201 www.europcar.co.uk
Ford Rental
Nexus Vehicle Management Ltd.
Ford Rental is the UK’s largest Dealer Rental operator, celebrating 40 years of keeping customers on the road. With one of the youngest fleets of 14,000 vehicles, including the full range of latest Ford car and commercial vehicles, our flexible approach to Daily Rental means we are ideally placed to manage organisations short and long term rental requirements. We offer innovative approaches to daily rental, understanding that fleet is a high cost to any business and continuously deliver high levels of customer satisfaction. Furthermore our experience and product range enables us to respond to demands for low CO2 emission policies.
Nexus is the UK's leading provider of vehicle rental supply, management and software to end users and intermediaries across the fleet, corporate and public sector. We provide a fully managed rental service covering over 1,700 locations with access to approx. 400,000 vehicles nationally including 80,000 commercial vehicles. Nexus, through our unique IRIS software platform, provides customers with a revolutionary rental management solution, ensuring seamless delivery, advanced reporting, swift billing and exceptional customer service at competitive terms, each and every time. We are adept at sourcing precise specifications and bulk orders on standard, specialist and adapted vehicles.
Contact: Heidi Sayer info@fordrental.co.uk
Contact: Steve Beedle steve.beedle@nexusrental.co.uk
fleetworld.co.uk
Tel: 0844 826 1353 www.fordrental.co.uk
Tel: 07850 901519 www.nexusrental.co.uk
Do you offer an on-line management reporting facility?
Can a driver guarantee a specific make & model of car when booking?
Do you offer cars fitted with satellite navigation systems?
Do you charge a fee for non-cancelled bookings?
Do you charge excess mileage rates on pre-agreed contracts?
Do you offer hybrid & Electric Cars?
Do you offer an hourly rate for hire?
225k+ 1.5k+
Do you offer an on-line billing facility?
Alliance Asset Management
Do you offer a chauffeur drive service?
Service unavailable
Do you have a rapid check-in system?
-
Does a driver get given a proof of condition receipt on handing back their hire car?
Service provided
Do you offer a one-way rental facility?
How many vehicles does your company operate?
Key to services
How many rental locations does your company have?
FLEETW RLD
Yes
Yes
-
Arnold Clark Car & Van Rental
6.6k
33
-
-
-
No
Yes
-
Enterprise Rent-A-Car
55k
370
-
-
-
-
Yes
Yes
Europcar UK Group
45k
200
-
-
Yes
Yes
-
Ford Rental
14k
150+
-
-
Yes
Yes
-
Leasedrive Group
228k+
1.2k
-
No
Yes
Yes
-
Nexus Vehicle Management Ltd.
400k
1.7k
No
Yes
-
Sixt rent a car
26k
150
-
Yes
Yes
-
-
Sixt rent a car Sixt rent a car have built a strong reputation for offering the fleet industry flexible solutions, excellent choice, unparalleled rental flexibility, customer service excellence and pan-European coverage that gives access to one of Europe’s largest fleets. Sixt rent a car in the UK, together with its Partners, boasts a comprehensive car and commercial rental fleet of some 26,000 vehicles, ranging from saloon, estate and MPV cars to light vans, pick ups and dropside vehicles. Sixt is at the forefront of innovative technology and offers corporate customers their own personalised version of the Sixt iPhone, Blackberry and Android applications.
Contact: Per Voegerl per.voegerl@sixt.com www.sixt.co.uk
THE online resource for fleet decision-makers... internationalfleetworld.com
fleetworld.co.uk
Tel: 01246 506412
August 2012
59
FLEET UPDATE
This month Functional Tiguan leaves the fleet, while aesthetics please elsewhere.
Kia Optima 2 Tech 1.7 CRDi
Renault Grand Scenic dCi 110 EDC Auto
There’s been a steady drip-feed of good news stories surrounding the Optima globally. The latest buzz is its classwinning score in the JD Power Automotive Performance, Execution and Layout (APEAL) Study, which gets consumers to rank new cars based on their emotional appeal – style and performance – after 90 days of ownership. Strictly speaking Kia didn’t walk away with the top honours, because its mid-size accolade was shared with another car. But when you consider that it was tied for the lead with the new America-made Volkswagen Passat, Kia has every right to be very pleased with the result. European-market Optimas are, of course, a little different to their North American counterparts – softer interior plastics and the 1.7-litre CRDi engine being the key differences. With that in mind, it’d be interesting to see how it performs in a similar study on this side of the Atlantic, given that emotional appeal wasn’t a strong point for its predecessors. I’d argue that both factors are a plus for the car. Material quality isn’t as high as the European market Passat, but it’s not miles behind, and the 1.7 CRDi offers enough power and torque not to feel lethargic. Larger Kia models with the bigger four-cylinder engines have come on a long way, too, but they’re noticeably less lively and not significantly more refined than the equivalent diesel. And that’s not factoring in real-world efficiency. At 57.6mpg and with CO2 emissions of 128g/km the Optima isn’t class-leading on paper, but it’s proving no thirstier than some of its supposedly thriftier rivals. Those who have driven our Optima typically get between 50 and 53mpg. I’m still of the opinion that those migrating from the best in the segment wouldn’t feel short-changed by doing so. Kia got the rational appeal right with the Optima’s predecessors, but this is now a car you’d actually want to live with too.
There’s been some head-scratching in the Wallis household this month, as I tried to guess where, firstly, the radio antenna from the Grand Scenic had got to and, secondly, why the sat nav had stopped working. In the case of the antenna, I couldn’t work out if I hadn’t screwed it back in properly after a recent car wash or whether the local kids were taking advantage of summer holidays and lighter evenings to find their own entertainment. And in the case of the sat nav, I couldn’t fathom why it had stopped working – there had been a recent message saying that the subscription for the TomTom LIVE sat nav services were due for renewal but Renault had confirmed that it was still active. Happily, just as I was about to visit a local dealer to ask them to look at the sat nav and to order a new antenna, I found it on our front garden and with it screwed back in, the sat nav’s full functionality returned, cementing my suspicions that the antenna is essential to this. It’s been good to have it back – I’m pretty reliant on the TomTom LIVE now for everything from traffic jam updates and local speed limits to using the Google search to find the nearest Pizza Hut. It’s also been happy days of late as the British summer seems to have returned too, meaning that the Grand Scenic has seen much use in seven-seater guise for family days out. The only thing is that the nicer weather seems to bring out nicer behaviour in drivers and I’m sure I’m seeing a lot more people flash their lights to let me pull into or out of junctions first. The problem with this lies in the tardy first gear on the EDC semi-auto gearbox, as reported in our first article on the car. It takes a moment to get moving, during which the other driver has no doubt started to wonder whether I’ve actually seen them or if I’m just a bit slow-witted. I’m finding dark glasses helps…
Alex Grant
Natalie Wallis
OTR PRICE £21,695 POWER 134bhp @ 4,000rpm
OTR PRICE £22,300 POWER 108bhp @ 4,000rpm
TORQUE 239lb.ft @ 2,000-2,500rpm 0-62MPH 10.2 seconds
TORQUE 177lb.ft @ 1,750rpm 0-62MPH 13.3 seconds
TOP SPEED 125mph COMBINED MPG 57.6mpg
TOP SPEED 112mph COMBINED MPG 60.1mpg
CO2 128g/km (19% BiK)
CO2 124g/km (18% BiK)
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Volkswagen Tiguan Sport 2.0 TDI 4Motion Ross Durkin > Managing Director My first impression of the Tiguan was that it was functional rather than fun, with little in the way of driver involvement and a boot that would barely accommodate a set of golf clubs. Three months and 6,000 miles later I’m genuinely sad to see it go. It was extremely comfortable on long journeys with good visibility and reasonable fuel economy. In the last few weeks it also did a great job as a tow-car for a horse box. The simplicity with which the tow bar is installed represents the best of German engineering. From an indifferent start it got better and better.
Alex Grant > Motoring Editor Our Tiguan is built in the most popular UK spec, which includes 4Motion fourwheel drive despite a sector-wide trend towards low-carbon two-wheel drive models – a sign that those sizing up from a Golf are actually looking for more than just extra space.
For a high trim level, parking sensors are an obvious omission on our car. Though it’s a flat-backed, easily-judged shape, they’re very useful on such a bulky vehicle. Volkswagen has noticed, too, and MY13 Tiguan Sports come with parking sensors and park assist, which takes over the steering for tight spaces, as standard. A worthwhile upgrade.
Darren Brett > Sales Executive I had a few opportunities to drive the Tiguan, and it measures up well to what you’d expect from a Volkswagen. It’s a good looking car, smooth, quiet and efficient on long trips and the infotainment system is intuitive too. But that Germanic build ethos isn’t always a good thing. The interior is solid but uninspiring, and it’s not a car which ever feels much fun to drive, giving just enough performance not to feel sluggish. It doesn’t do anything wrong, but the Tiguan never really gets under your skin either.
FINAL REPORT Luke Wikner > Production Manager I actually quite like the ”under-the-radar” style of the Tiguan. Sure, it’s understated and less distinctive than, say, Kia’s Sportage or the more expensive Evoque but it is instantly recognisable as a VW which is no bad thing in these increasingly badge-conscious times. That said, the Tiguan has the inauspicious honour of being the first car to earn me a Penalty Charge Notice, for driving through a (confusing and poorly signposted) width restriction in Greater London...a time when I would have welcomed not being noticed. Comfort-wise, I travelled a fair few miles at the wheel of the Tiguan and found the driving position, performance and lack of wind-noise impressive. Driving to the TDI’s strengths – midrange torque and fine cruising ability, not to mention the Stop-Start technology in traffic, returned around 45mpg overall. Good for a chunky SUV with 4x4 credentials.
OTR PRICE £24,370 POWER 138bhp @ 4,200rpm TORQUE 236lb.ft @ 1,750-2,500rpm 0-62MPH 10 seconds TOP SPEED 120mph COMBINED MPG 53.3mpg CO2 139g/km (21% BiK)
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S E LLI N G
VRA warns of undeleted personal data in company cars The Vehicle Remarketing Association (VRA) has issued a best practice guide advising its members to ensure personal data is cleared from satellite navigation and Bluetooth phonebooks after a company car was traced back to the address of its previous driver by a subsequent owner. Identified as a ‘growing problem’ by the association, modern cars are increasingly factory-fitted with infotainment systems which store addresses, phone numbers and other personal data on a car’s hard drive. Responsibility ultimately lies with the driver to delete this data before handing the car back, but the VRA said this often doesn’t happen. Discussions held earlier this year had shown some members already had policies in place, but the VRA has advised that contracts and master hire agreements should instruct drivers to clear the memory before returning the car. The guide advises that this should be confirmed at the handover, and that all vehicles being remarketed should have a factory reset beforehand. John Davies, the VRA’s chairman, said: ‘We have yet to see major instances of any personal data being misused if it is inadvertently left on a car’s sat nav or in-car system, but this won’t be the case forever. If a driver’s phone has personal details of, for example, a politician or public figure and the sat nav includes details of how to find where they live, this could be a real security concern.’
UK Saab Broker aims to stabilise used vehicle values Saab Parts UK has launched a nationwide brokerage service aimed at stabilising residual values for fleets currently running Saabs and supplying its Approved Repairers with stock. Dealers and leasing companies disposing of Saab stock provide details to used car experts at the Saab Parts UK headquarters in Cranfield. These are then promoted to the company’s nationwide network of 88 Authorised Repairers, plus known buyers and specialists, who can bid on vehicles. Winning bidders are put in touch with the vendor directly within 24 hours, and Saab Parts UK charges a £100 commission to both parties. Although primarily set up for dealer part exchange stock, UK Saab Broker’s service can be tailored to leasing companies with multiple Saab vehicles to de-fleet. Corin Richards, managing director of Saab Parts UK, explained: ‘Following the demise of Saab at the end of last year there has been some uncertainty in the trade in how to value a Saab. This new service we are offering will remove any uncertainty that may remain in the Saab used car market, as we will provide a true market valuation to the Saab seller and find them an interested buyer from our national network of 88 service centres. ‘Our network of authorised repairers around the UK is always on the lookout for quality used Saabs and this new service will put buyers and sellers in touch with each other, thus ensuring that there is a consistent supply of Saabs on its forecourts available for customers to purchase.’ A wholly-owned subsidiary of Saab Automobile Parts AB, Saab Parts UK began trading in January offering ongoing aftersales packages and parts supply through a network of authorised UK repairers.
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HOT... Five-door superminis The market is downsizing en masse, so accomplished superminis with five-door practicality are sought after and petrol is the fuel of choice, says the VRA.
New cars with long lead times Audi Q3, A5 coupe and Range Rover Evoque are selling well used and being pushed by dealers, according to VIPDATA.
Premium brands The market remains especially buoyant for premium models, driven by demand from self-employed or business owners seeking prestige company cars, says BCA.
NOT... LCVs The worst of the summer slowdown is found in the light commercial sector, as decision-makers are on holiday. Sellers hoping for the best returns should wait until September, VIPDATA advises.
Nearly new stock Good deals on new cars are tempting consumers out of nearly new vehicles, according to the VRA.
Volkswagen Crafter Volkswagen’s largest commercial vehicle is a tough sell, with values below even non-standard body colours for the segment-leading Sprinter, says VIPDATA.
FLEETW RLD
SUPPLIER DIRECTORY
AUCTIONS & REMARKETING
ACCIDENT MANAGEMENT
DAILY RENTAL
FLEET MANAGEMENT SOFTWARE
RISK MANAGEMENT
BCA Tel: 0845 600 66 44 www.british-car-auctions.co.uk
Total Accident Management Tel: 0845 078 4157 www.totalaccman.co.uk
Leasedrive Rental Management Tel: 0844 579 8877 www.leasedrive.com
Jaama Tel: 0844 8484 333 www.jaama.co.uk
AA DriveTech Tel: 01256 495732 www.AAdrivetech.com/fleetsafe DriveTech
FAST-FITS & TYRES
DRIVER LICENCE CHECKING
ATS Euromaster Tel: 0870 066 3624 www.atseuromaster.co.uk
Jaama Tel: 0844 8484 333 www.jaama.co.uk
Full listings online at fleetworldgroup.co.uk
Europcar Tel: 01923 811250 www.europcar.co.uk
Bynx Tel: 01789 471600 www.bynx.com
IAM Drive & Survive Tel: 0870 120 2910 www.iamdriveandsurvive.co.uk
Enterprise Rent-A-Car Tel: 01784 221 300 www.enterprise.co.uk
Enterprise Software Tel: 0161 925 2400 www.essl.co.uk
RAC Risk Management Tel: 0870 606 2606
Budget Rent-a-Car Tel: 0844 5338 08701544 56 56 56 www.budget.co.uk
Drive Software Solutions Tel: 01438 317731 www.drivesoftwaresolutions.com
Roadmarque Tel: 0845 053 0331 www.roadmarque.com
Alliance Asset Management plc Tel: 01480 475000 www.fleetcentre.com
Mycompanyfleet Tel: 0845 077 7760 www.mycompanyfleet.co.uk
Peak Performance Tel: 01246 244200 www.peakperformance.net
Sofico Tel: 07815 601622 www.soficoservices.com
Cardinus Risk Management Tel: 01733 426015
www.racfleetriskmanagement.co.uk
VEHICLE DATA International Decision Systems Tel: 01256 302 000 www.idsdata.co.uk
CONTRACT HIRE, LEASING & FINANCE Alphabet (GB) Limited Tel: 0870 50 50 100 www.alphabet.co.uk
LeasePlan UK Ltd Tel: 0844 493 5810 www.leaseplan.co.uk
CBVC Vehicle Management Tel: 01283 509177 www.cbvc.co.uk
Tel: 0800 085 4128 www.lexautolease.co.uk
Lex Autolease
White Clarke Automotive Solutions Tel: 0870 787 2211
www.cardinusfleet.com
www.whiteclarkegroup.com
Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk
Leasedrive Tel: 01344 466 466 www.leasedrive.com
Arnold Clark Car and Van Rental Tel: 0845 702 3946
Zenith Tel: 0844 848 8091 www.zenith.co.uk
Arnold Clark Vehicle Management
Nexus Vehicle Management Ltd Tel: 0871 984 1947 www.nexusrental.co.uk
Volkswagen Group Leasing Tel: 0870 333 2229
Alliance Asset Management plc Tel: 01480 475000 www.fleetcentre.com
www.volkswagengroupleasing.co.uk
Tel: 0845 603 4590 www.acvm.co.uk
www.arnoldclarkrental.com
The leading magazine for fleet decision-makers
January 2012
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?
Stars of 2012 Featuring all the essential new cars launched this year
www.whiteclarkegroup.com
Full listings online at fleetworldgroup.co.uk
DriveSense Tel: 01628 581930 www.drivesense.co.uk
MAC GB Ltd Tel: 01745 828180 www.reduceroadrisk.com
For more information, please contact Tracy Howell on 01727 739160 or email tracy@fleetworldgroup.co.uk FUEL MANAGEMENT
Days Contract Hire Tel: 0845 296 4423 www.dayscontracthire.co.uk
White Clarke Group Tel: 01908 576 605
TELEMATICS & TRACKING
Venson Automotive Solutions Tel: 08444 99 1402 www.venson.com
Esso Fuel Cards Tel: 0800 626 672 www.essocard.com
TRACKER Network UK Limited Tel: 0845 602 3981 www.TRACKER.co.uk
Telogis Tel: 01344 747638 www.telogis.co.uk
The Fuelcard People Tel: 0844 870 9856 www.fleet-fuelsavings.co.uk
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
BP PLUS Fuel Cards Tel: 0845 603 0723 www.bpplus.co.uk
Shell Fuelcards Tel: 0800 7 31 31 37 www.shell.co.uk/euroshell
Trakm8 Tel: 01747 858 444 www.trakm8.com
Navman Wireless UK Ltd Tel: 0845 521 1188 www.navmanwireless.co.uk
driving towards lower fleet emissions
August 2012
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VAN
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FLEETW RLD August 2012
‘If you have high mileages and heavy loads, Crafter is certainly worth a closer look.’
August 2012
65
NEW COMBO
LOADS BIGGER. COMMERCIAL VEHICLES The Wheels of Business 777 mile range based on combined fuel economy of 58.9mpg (4.8 litres per 100km) and full fuel †Reference ‘Miles Better’ relates to distance per tank of up to 143 miles further than previous model.
• Class-leading payload up to 1000kg* • Miles better range of up to 777 miles† Call 0845 7400777 or visit www.vauxhall.co.uk/vans tank of 60 litres (13.2 gallons). *Reference ‘Loads Bigger’ relates to additional 1.01m3 max load volume more than previous model.
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 newsletter Fleet World Confidential... visit fleetworldsubscriptions.co.uk
TRANSIT CUSTOM PRICES REVEALED Ford has announced prices and specifications for its Transit Custom van. The 1 tonne-segment Custom, first seen at this year’s CV Show in Birmingham, will be available in 6.0m 3 short wheelbase and 6.8m3 long wheelbase versions. On the road prices start at £18,316 for the SWB 250 Base specification model, rising to £24,996 for the 330 SWB van in Limited trim. LWB models start at £23,454 for the 290 Base low roof, and climb to £24,766 for the 310 Limited LWB van. The company claims a class-leading width between the rear wheel arches of 1,390mm and says that the Transit Custom has the largest sliding side door opening in the sector for easy loading. The SWB model is capable of carrying three Europallets, with a 1m high load, something that cannot be achieved in the current SWB Transit. The vans are powered by Ford’s 2.2-litre Duratorq TDCi engine, available with 100hp and 310Nm of torque, 125hp and 350Nm, or with 155hp and 385Nm of torque. Ford promises fuel economy of up to 42.1mpg combined, with an average CO2 output of just 178g/km. Innovative features include a load-through hatch in the bulkhead to allow loads up to 3m in length in the SWB model. The Transit Custom also has an integrated roof rack system with three transverse bars that fold flat into recesses in the roof to improve fuel efficiency when not in use. The vans also come with repositionable tie-down hooks and fixing points on the body sides, to make the most of the versatile load bay. Ford will also offer double cab-in-van models, with a second row of seats behind the driver, on both SWB and LWB models. There are also full nine-seat Kombi models available, again on both short and long chassis, plus an eight-seat Tourneo people carrier.
CONFIDENTIAL
BODYBUILDERS JOIN FORCES WITH IVECO Iveco has announced partnership deals with bodybuilders Ingimex and Alloy Bodies, as part of its new DriveAway Options programme for the Daily van range. Iveco dealers will be able to offer fullybodied dropsides and tippers from Ingimex, with Luton bodies from Alloy Bodies, initially on the 3.5 tonne chassis and on larger models in the future. ‘We are reintroducing the DriveAway Options line-up following increasing demand from customers for a ready-bodied vehicle range, particularly in the light of impending Whole Vehicle Type Approval legislation,’ says Iveco product director Martin Flach. All DriveAway Options vehicles carry a comprehensive three-year warranty on both the chassis and the body.
STEED S AVAILABLE FOR JUST £1 Great Wall has launched a finance plan for its Steed S pick-up, allowing customers to secure a vehicle with a £1 deposit. The finance deal for the £13,998 Steed S includes a £1 deposit followed by 59 monthly payments of £285.06 and a final payment of £424.06. The plan is available to all business users through Great Wall’s 45 dealers around the UK.
ANGLIAN TO TRIAL WINTER VAN TYRES Anglian Water is to trial Michelin’s cold weather tyres on its van fleet this winter in an effort to improve safety and reliability for its workforce. The firm will use the tyre company’s Alpin Green X and Agilis Alpin tyres on 30 Vauxhall Combos and 40 Vivaros from October this year. ‘Part of our company’s ethos is to have the safest fleet, so we have decided to trial Michelin’s cold weather tyre range for its safety and performance qualities,’ says Anglian Water’s fleet maintenance manager John Harding. ‘Michelin cold weather tyres are not just snow and ice tyres as some people expect, and although winter 2011 was visibly milder than previous years, with less rain and snow, average temperatures were still below 7 °C which is when the cold weather tyres perform best.’
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DRIVEN
Words Dan Gilkes
specification MODEL
Volkswagen Crafter CR35 BlueMotion Technology BASIC PRICE £27,700 ENGINE 4-cyl/1,968cc FUEL INJECTION Common-rail POWER 163hp @ 3,600rpm TORQUE 400Nm @ 1,800rpm Weights (kg) GVW 3,500 KERB WEIGHT 2,105 PAYLOAD 1,395 MAX TRAILER WEIGHT 2,000 Dimensions (mm) LOAD SPACE LENGTH 3,265 LOAD SPACE WIDTH 1,780 LOAD BOX SIDE HEIGHT 1,940 WIDTH between wheel arches 1,350 LOAD HEIGHT (unladen) 670 LOAD VOLUME 11m3 Cost considerations FUEL TANK CAPACITY 75 litres COMBINED MPG 37.2mpg CO2 emissions 199g/km OIL CHANGE 2 yr/25,000 miles WARRANTY 3 yr/unlimited miles
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Volkswagen Crafter The last time we got behind the wheel of Volkswagen’s revitalised Crafter heavy van it was the fleet-friendly 109hp model. It provided a good drive and certainly had enough power for urban delivery use. But what if your needs run to longer journeys, or consistently heavier loads? The Crafter range includes four versions of VW’s Euro5/EEV rated 2.0 TDI engine, running from the 109hp model to this full-fat 163hp motor. Though only a 2.0-litre four-pot, the 163hp Crafter can call upon 400Nm of torque to keep things moving swiftly along. It is perhaps surprising then to find that, although this is the most powerful engine in the range, it can also be had with all the BlueMotion Technology trimmings. With BMT you get cruise control, a Start/Stop system with brake energy recuperation and a 3.923:1 rear axle ratio for unstressed cruising. The result, according to VW’s figures, is a medium wheelbase high-roof 3.5 tonner capable of delivering an average 37.2mpg, with just 199g/km of CO2. That’s a drop from 208g/km and a combined figure of 35.8mpg for the regular medium wheelbase high-roof with this engine, and all for a premium of just £300. More than that though, the 163hp BlueMotion Technology version is in fact the most economical Crafter in the range. All Crafters come well equipped, with ABS, EBD, ESP and an electronic differential lock (EDL) as part of the standard trim. Inside the cab you get the familiar hewn-from-granite interior, with a tall ride height providing excellent visibility. Our van came with the option of a reversing camera with 7” foldaway monitor on the dash (£1,160), which oddly incorporates reversing sensors too. Other goodies on our test van included 16” alloys (£480), electric heated mirrors (£190), a rubber load floor covering (£455), ply load lining (£330), a multi-function steering wheel (£240) and fabulous, but fabulously expensive
pearl effect Mistral blue paint (£1,195). Even without all of these options though, the basic price of £27,700 is certainly not at the economy end of the scale. However, the Crafter never felt anything but a premium product. VW may have raised a few eyebrows by going over completely to a two-litre four-cylinder engine in such a large van, particularly as you can go much bigger than our 11m3 medium wheelbase model. There should be no concerns about pulling power however, as the 163hp motor has plenty of low down torque and can easily move a van of this size. As with most VW products, servicing is dependent on use, with the van telling you when it requires an oil change, if you are using long life oils. The maximum mileage between dealer visits will be 18,000, or once every two years. You get three years of warranty, with unlimited mileage and three years of European roadside assistance too, providing peace of mind for those happy to stretch to the full service interval. At the working end of the van the Crafter comes with a huge sliding side door and full height rear doors, providing easy access for loading and unloading. In the cab the full height steel bulkhead is standard, helping to keep internal noise levels down and providing occupant safety from any movement in the load. As mentioned the Crafter can be had with a choice of engine outputs and most fleets won’t automatically head for the higher end of the market. But, thanks in part to BlueMotion Technology and the size of that engine, the operational costs of doing so may not be as high as you’d think.
verdict The 163hp Crafter may not be the first choice for many fleets, but if you have high mileages and heavy loads, it is certainly worth a closer look.
MARKET OVERVIEW Contract Hire, Finance & Leasing
Neva Consultants LLP
Alphabet
Neva offer free consultancy on all aspects of vehicle procurement for Cars & Light Commercial Vehicles and tailor a scheme to individual requirements be it Personal or Business Finance, including the whole spectrum that affects operation – fleet management, insurance services, fuel cards, accident management, short and mid-term vehicle rental and leasing service plans. In 2011 Neva Consultants launched their innovative and industry leading C-Fleet Management System. Building on their multifunder approach, C-Fleet allows clients to manage their entire fleet and grey fleet (cash allowance) from one system and offers a straightforward solution to managing occupational road risk.
Managing over 100,000 fleet vehicles, Alphabet are one of the largest and most well trusted providers of funding and management for mixed commercial vehicle fleets to UK businesses and public sector organisations. While many vehicle leasing companies claim to be able to meet your business’s every need, few can match the track record and experience of Alphabet when it comes to understanding your mixed fleet requirements. Our highly experienced team can guide you through the complex process of vehicle specification, preparation, maintenance and disposal – ensuring ‘best advice’ at every step of the way.
Contact: Steve Howell steveh@nevaplc.com
Contact: Dave Freeman dave.freeman@alphabetcarlease.co.uk www.alphabet.co.uk
Tel: 01825 720909 www.neva-consultants.com
ALD Automotive 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. A specialist VanLease division offers award winning products including ProFleet2 in-vehicle telematics and DriveSafe, a unique suite of risk management initiatives, just two of the innovative solutions offered as standard for commercial vehicle operators. ALD hold Investor in People, ISO 9001 and ISO 14001 accreditation. Contact: Mel Dawson mel.dawson@aldautomotive.com www.aldautomotive.co.uk
Tel: 0870 0011181
Tel: 07785 734713
Arnold Clark Vehicle Management 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: Calum Ewart calum.ewart@arnoldclark.co.uk
Tel: 0845 603 4590 www.acvm.co.uk
Pendragon Contracts Fleet Alliance Limited
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Fleet Alliance is a leading UK fleet management provider offering contract hire, leasing and a complete range of fleet solutions. We currently manage over 10,000 vehicles on behalf of corporate clients of all sizes. 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.
Pendragon Contracts provide a consultative, flexible and solutionsdriven 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: Grant Boardman grant.boardman@fleetalliance.co.uk www.fleetalliance.co.uk
Contact: John Given info@pendragon-contracts.co.uk www.pendragon-contracts.co.uk
fleetworld.co.uk
Tel: 0845 601 8407
Tel: 01332 292 777
VAN FLEETW RLD
Approximately how many commercial vehicles does your company operate?
Do you employ dedicated specialists to offer advice & guidance on LCV specification?
Do you offer non-maintenance contract hire on LCV’s?
Do you offer funding & maintenance for ancillary equipment fitted to the vehicle (tail lifts etc)?
Can you create bespoke return conditions for your LCV customers?
Do you offer pooling of excess and credit mileage?
Do you follow the BVRLA’s guidelines on Fair Wear & Tear for LCVs?
Do you offer packages that are based upon re-using bodywork or Interior equipment?
Do you offer guidance to clients on Duty of Care legislation?
Do you offer a design & build service for extensive bespoke conversions?
Do you offer and arrange long term vehicle evaluations (6 months duration)
Key to services
Alphabet
17.1k
-
ALD Automotive
4.3k+
4.2k+
-
-
-
Fleet Alliance Limited
2k
-
Leasedrive Group
7k
-
-
Neva Consultants LLP
2k
-
Pendragon Contracts
3k+
-
Venson Automotive Solutions Ltd
7.5k
Volkswagen Group Leasing
9.5k
Service provided
-
Service unavailable
Arnold Clark
Vehicle Management
Venson Automotive Solutions
Volkswagen Group Leasing
Venson is a hands-on fleet management specialist with a proven track record in reducing costs and increasing vehicle availability. It’s our level of experience, knowledge and service that allows us to give you the kind of impartial advice that has real financial returns whether your business is in the private, public, not-for-profit or emergency services sector. From sourcing the right commercial vehicles to funding, maintaining and delivering vehicle fit-outs, we handle every aspect and we don’t let our clients down. Get in touch and reserve a free fleet audit and drive your business in a new direction.
Volkswagen Group Leasing is a division of Volkswagen Group – one of the world’s leading automotive manufacturers. So as a finance company that’s also a vehicle manufacturer, we know the van market inside out. We understand that running a fleet of vehicles, no matter how big or small, can be complicated. That’s why as well as supplying a great range of LCV’s in every make and model, we also offer great quality fleet aftercare, which helps your fleet run smoothly. Our products and services include contract hire, daily rental, mini-lease, total outsourcing, vehicle maintenance and accident management.
Contact: Anneka Marwaha sales@venson.com www.venson.com
Contact: Phil Jones phil.jones@vwfs.co.uk www.volkswagengroupleasing.co.uk
Tel: 08444 99 1402
Tel: 01908 484576
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NUM8ER5 G4ME the fleet month in ďŹ gures
7,000 Predicted UK fleet sales for the new Honda CR-V in 2013, its first full year on sale, out of a total of 17,000 vehicles. A sub-120g/km 1.6 diesel will follow for the 2014 model year. SOURCE > Honda UK
10,000
127g/km
The number of subscription-free, pay-as-you-go public charging points planned for 2013 installation as part of the UK’s largest multi-manufacturer recharging network.
Average CO2 emissions for new company cars for the first six months of this year, compared to 138g/km for the same months during 2011.
SOURCE > Charge Your Car Ltd
SOURCE > ALD Automotive
105g/km CO2 emissions for the 148bhp 2.0 TDI engine in the new SEAT Leon SOURCE > SEAT
46% The percentage of live contracts placed between 1st July 2011 and 30th June 2012 which were for a period in excess of 36 months, compared to 25% of orders placed in 2009/10. SOURCE > Ogilvie Fleet
1,100 New jobs being created by Jaguar Land Rover at its Castle Bromwich site to support the launch of new models, including the XF Sportbrake. SOURCE > Jaguar Land Rover
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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
Alphabet (GB) Limited Tel: 0870 50 50 100 www.alphabet.co.uk
Sortimo Central Tel: 0121 511 2303 www.sortimo-central.com
Penny Hydraulics Tel: 01246 811475 www.pennyhydraulics.com
Mycompanyfleet Tel: 0845 077 7760 www.mycompanyfleet.co.uk
Full listings online at
LeasePlan UK Ltd Tel: 0844 493 5810 www.leaseplan.co.uk
Tevo Limited Tel: 01628 528034 www.tevo.eu.com
Ratcliff Palfinger Ltd Tel: 01707 382880 www.ratcliffpalfinger.co.uk
Bynx Tel: 01789 471600 www.bynx.com
Nexus Vehicle Management Ltd Tel: 0871 984 1947 www.nexusrental.co.uk
CBVC Vehicle Management Tel: 01283 509177 www.cbvc.co.uk
Bott Ltd Tel: 01530 410600 www.bott-group.com
DEL Equipment (UK) Ltd Tel: 01993 708811 www.del-uk.com
fleetworldgroup.co.uk
Avis Rent A Car Tel: 0844 544 5000 www.avis.co.uk
Arnold Clark Vehicle Management
Full listings online at
Tel: 0141 332 2626 www.acvm.co.uk
fleetworldgroup.co.uk
fleetworldgroup.co.uk DAILY RENTAL
Lex Autolease
Budget Rent-a-Car Tel: 0844 5338 08701544 56 56 56 www.budget.co.uk
Tel: 0800 085 4128 www.lexautolease.co.uk
FAST-FITS & TYRES
Volkswagen Group Leasing Tel: 0870 333 2229
ATS Euromaster Tel: 0121 325 8842 www.atseuromaster.co.uk
www.volkswagengroupleasing.co.uk
FUEL MANAGEMENT
Trakm8 Tel: 01747 858 444 www.trakm8.com
TOTALCARD Services Tel: 0800 147 148 www.total.co.uk
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
VEHICLE VENTILATION Flettner Ventilator Ltd Tel: 020 8200 2321 www.flettner.co.uk
HEALTH & SAFETY COMPLIANCE Handistep - Fleet Safety Tel: 01939 260707 www.handistep.com
RISK MANAGEMENT Venson Automotive Solutions Tel: 08444 99 1402 www.venson.com
VEHICLE DATA International Decision Systems Tel: 01256 302 000 www.idsdata.co.uk
Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk
ACCIDENT MANAGEMENT EV FLEET WORLD Tel: 01727 739160 www.evfleetworld.co.uk
Total Accident Management Tel: 0845 078 4157 www.totalaccman.co.uk
VAN
TELEMATICS & TRACKING
Full listings online at
fleetworldgroup.co.uk
FLEETW RLD January 2010
‘Doblo has always shown promise, now it looks as though it can deliver’ p46
Quartix Ltd Tel: 0870 013 6663 www.quartix.net
Tel: 0113 346 7705 Ctrack www.ctrack.co.uk TomTom Business Solutions Tel: 020 7255 9774 www.tomtom.com/business
VAN FLEETW RLD SUPPLIER DIRECTORY
January 2010
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For more information, please contact Tracy Howell on 01727 739160 or email tracy@fleetworldgroup.co.uk
Esso Fuel Cards Tel: 0800 626 672 www.essocard.com
Roadmarque Tel: 0845 053 0331 www.roadmarque.com
BP PLUS Fuel Cards Tel: 0845 603 0723 www.bpplus.co.uk
DriveSense Tel: 01628 581930 www.drivesense.co.uk
The Fuelcard People Tel: 0844 870 9856 www.fleet-fuelsavings.co.uk
IAM Drive & Survive Tel: 0870 120 2910 www.iamdriveandsurvive.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 August 2012
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