Fleet World February 2012

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The leading magazine for fleet decision-makers February 2012

DIARY DATE

FLEETW RLD

18/4/2012 Visit evfleetshow.co.uk for more information and to register for the event

Idle Fantasy Are stop-start systems all they are cracked up to be?

driving towards lower fleet emissions

In the driving seat How SEAT aims to be a fleet favourite

THE

SUB

FLEET

Is it time to super-downsize to less than 100g/km per car? fleetworldgroup.co.uk



The leading magazine for fleet decision-makers February 2012

DIARY DATE

FLEETW RLD

18/4/2012 Visit evfleetshow.co.uk for more information and to register for the event

Idle Fantasy Are stop-start systems all they are cracked up to be?

driving towards lower fleet emissions

fleetworldgroup.co.uk

In the driving seat

RECRUITMENT

How SEAT aims to be a fleet favourite

THE

SUB

For the lastest recruitment vacancies, visit fleetworldgroup.co.uk

FLEET Is it time to super-downsize to less than 100g/km per car? fleetworldgroup.co.uk

Publisher Ross Durkin ross@eetworldgroup.co.uk Editor Steve Moody steve@fleetworldgroup.co.uk Deputy Editor Natalie Wallis natalie@eetworldgroup.co.uk Motoring Editor Alex Grant alex@eetworldgroup.co.uk 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 Production Manager Luke Wikner luke@eetworldgroup.co.uk Designers Tina Ries tina@eetworldgroup.co.uk Samantha Hargreaves sam@eetworldgroup.co.uk Internet Editor Luke Durkin durks@eetworldgroup.co.uk

Published by Stag Publications Ltd, 18 Alban Park, Hateld Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email fw@eetworldgroup.co.uk web eetworldgroup.co.uk

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Viewpoint

Contents

BMW, Vauxhall, Volvo, Renault, Citroen, Nissan, Lexus, Peugeot and Toyota. These are just some of the manufacturers already signed up to the EV & Low CO2 Fleet Show 2012, with more to come and a multitude of suppliers and speakers exhibiting and attending. No doubt the lure of Silverstone’s new Wing is one reason for the high number of exhibitors, but the main factor is that low CO2 cars – and by that we mean cars of 100g/km or lower – are increasingly the currency by which fleets will operate. That’s why in this issue, we ask the question ‘Can you run a fleet with average CO2 emissions of 100g/km?’, and try to find the answer. Because there are now lots of viable cars at or below that figure, and not just stripped out, tiny ecoboxes either. How do you think your business would operate with such a target in place? There are dozens of superminis under that figure, there are electric cars for specific job needs, higher mileage drivers might be in a BMW 1 Series or Vauxhall Astra, executives in Amperas, Prius, 3 Series or later in the year, the new E-class Hybrid. From that perspective, averaging 100g/km seems a realistic proposition. So at the show this year, we will be launching The 100 Club, an annual report which reveals the 100 greenest fleets in the UK, rated by the average CO2 of vehicles purchased in the previous 12 months. At some point, we believe fleets will start achieving a 100g/km average. How many will hit the gold standard in our first report?

04 A month in fleet 10 Fleet World Barometer Making sense of the surveys... Analysing the latest research from the world of eet

14 Comment 20 Driven BMW ActiveHybrid5 // Volkswagen CC // Alfa Romeo Giulietta // Mazda6 // BMW 320d.

24 The importance of being idle Should eets be switching off in trafc? Alex Grant investigates.

30 Sub-100g/km fleet... Dream or reality? Looking at the possibilities of making savings without compromises.

38 EV & Low CO2 Fleet Show 2012 More information about the show in April...

40 Market Overview Telematics & Tracking.

42 In the driving seat Steve Robertson of SEAT talks to Steve Moody about the rm’s ambitious growth plans.

44 Selling 46 Fleet Update The latest developments from the FW Fleet.

51 VAN Fleet World Latest News // Mercedes-Benz Unimog // Ford Transit ECOnetic // Fuel Management.

62 To Buy or Lease Early termination of contract hire agreements. Pt 2.

66 NUM8ER5 G4ME The eet month in figures...

®

To subscribe to Fleet World visit: www.eetworldsubscriptions.co.uk

20 24 42 58

Certified circulation Jan – Dec 2011 19,619

Steve Moody Editor

February 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 magazine Fleet World Confidential... visit fleetworldsubscriptions.co.uk

CONFIDENTIAL

LOMBARD VEHICLE MANAGEMENT TO CLOSE Leasing giant Lombard Vehicle Management is to close, parent company Royal Bank of Scotland has announced. The firm’s fleet will be wound down over the next few years, with any new contracts and vehicles being whitelabelled by ALD Automotive, which has entered into a five-year agreement with the launch date scheduled for around June/July this year. Lombard’s fleet numbers around 70,000, and ALD expects to write around 30,000 new cars over that period on the back of this deal. It is thought around 100 employees will be affected by the decision, with a spokesman saying that for those not opting for voluntary redundancy, efforts will be made to relocate them within other parts of the business. Current con-

tracts will be managed by LVM while it is being run down. An RBS spokesman said: ‘Having to cut jobs is the most difficult part of our work to rebuild RBS. The decision to close Lombard Vehicle Management was a difficult one but is a necessary step in our plan to de-risk and re-focus RBS, making the bank safer and stronger. We will do all we can to support our staff, offer redeployment opportunities wherever possible, and keep compulsory redundancies to an absolute minimum.’ In 2009 at the height of the banking crisis, it was decided the fleet leasing arm of RBS was ‘non-core’ and as such, was put up for sale. Rumours in the industry suggested that much of LVM’s business was heavily price-led and

not especially profitable. As a result, finding a buyer proved difficult, and ultimately impossible. The branding for the new ALD-run operation is still to be announced. Managing Director of ALD Automotive, Keith Allen, said: ‘We're delighted that RBS and Lombard have chosen ALD to provide contract hire and fleet management solutions for Lombard. The new proposition will have access to all the vehicle leasing business generated through RBS banking and Lombard relationships, reinforcing the success of the multi-sales channel strategy we have adopted to grow our business and driving the business further forward to become a top three player within the UK leasing industry.’

VOLVO OUTLINES AMBITIOUS FLEET GROWTH PLANS

EV GRANT CONFIRMED AND VAN INCENTIVE LAUNCHED The Government has confirmed the Plug-In Car Grant will continue, and has added a new 20% discounts of up to £8,000 for ultra-low carbon van. For vans to qualify, they must emit less than 75g/km CO2 and offer at least a 60 mile electric range (10 miles for plug-in hybrids) with a top speed of 50mph or more. Vehicle manufacturers must apply for the vans to be eligible. The first deadline for applications was the 31st January. To assure fleet buyers, the vans must have a minimum of a three year, 60,000 mile warranty on the drivetrain, with a five year guarantee on the battery (or proof of high performance lasting over three years). Transport Minister Norman Baker said: ‘Car buyers have had a year to take advantage of our grant and now it’s time for van buyers to get their chance to go electric. This is great news for businesses given the lower running costs of these vehicles – fleet buyers tell us that this is one of the most important factor influencing their decision on what to buy.’

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Volvo is planning a 17% growth in corporate sales during 2012, backed by new products, lower emissions and continued restructuring of its fleet team. The carmaker achieved a 20% global sales increase to 449,225 during 2011, and is aiming for 800,000 units by 2020. In the UK, dealer business sales increased 8.5% last year, with a 21% increase in orders during the final quarter compared to 2010. Volvo Car UK’s corporate operations manager Selwyn Cooper said the company was re-thinking the way it spoke to fleet customers. A new fleet marketing manager has just been appointed, and a manager concentrating on wholelife costs will be announced in the coming weeks, working with contract hire and leasing companies and residual value setters. The initiative will also be backed by a major product offensive. This year, the manufacturer will launch the 49g/km V60 Plug-in Hybrid and a V40 five-door premium C-segment hatchback in Europe.


Ford NEWS Mondeo Zetec Business Edition

THE exciting new Mondeo Zetec Business Edition has joined the award-winning Ford Mondeo range and it has been launched with fleets firmly in mind. Based on the popular Mondeo Zetec, but with eye-catching exterior cues and additional high-tech features, the Mondeo Zetec Business Edition’s specification includes: • 17-inch alloy wheels with lock nuts • Front and rear parking sensors • Front and rear carpet mats • Colour touch-screen navigation • Power folding door mirrors system with USB connectivity • Front door scuff plates • LED daytime running lights • Privacy glass There are six powertrain choices for the Mondeo Zetec Business Edition, which is available as a five-door or estate, with the estate standard specification including black finish roof rails. The 115PS 1.6-litre TDCi Econetic with Auto-Start-Stop and six-speed manual transmission, has CO2 emissions of just 114g/km, which puts it below the important 115gm/km threshold which is so important for company car drivers. The 140PS and 163PS versions of Ford’s 2.0-litre TDCi engine have a choice of six-speed manual or six-speed PowerShift automatic transmission. The 160PS 1.6-litre EcoBoost petrol engine has six-speed manual transmission and Auto-Start-Stop which help both fuel economy and CO2 emissions. In fact the Auto-Start-Stop system can reduce fuel consumption and CO2 emissions by as much as 5% in mixed driving conditions. In an urban environment and in heavy traffic with frequent stops, the savings could increase to as much as 10%.

Mondeo: WhatCar? best family car 2012 THE Ford Mondeo 1.6 TDCi 115PS Zetec has been declared Britain’s best family car by What Car?, with the Mondeo 2.0 TDCi 140PS Zetec winning the accolade as best estate. It was a repeat of the car's double success at the What Car? Awards last year and also in 2009. What Car? editor-in-chief, Chas Hallett, said: "The Ford Mondeo has plenty of fresh rivals, but it’s such a strong package that it picks up two more awards this year, for best estate car and top family car…this is still a great allround package, either as a hatchback or an estate." Standard specification of the Mondeo Zetec includes alloy wheels, advanced Bluetooth® hands-free and voice control system, cruise control, adjustable speed limiter, Quick Clear heated windscreen, leather trimmed steering wheel and gear knob, electronic stability programme with traction control and Emergency Brake Assist, electrically operated and heated door mirrors with integral indicators and Thatcham approved alarm. • Fitted with auto start-stop as standard, the 1.6-litre TDCi engine returns over 65mpg and emits only 114g/km CO2.

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 Fleet sales up 27% in 2011 FORD Fleet had a very successful 2011, with net fleet sales up 27 per cent compared to 2010. That success has continued into 2012, with some important orders to kick off the year. Global insurance company Allianz is buying nearly 900 cars predominantly for its field-based engineer surveyors in a new three-year deal. The company will buy 290 cars a year, 250 of them Focus Zetec and Titanium 1.6-litre TDCi estates. Chewing gum and confectionery manufacturer Wrigleys has also ordered Ford Mondeo Zetec estates for its sales force, with the entire 125-vehicle order delivered in the first quarter this year. Kier Fleet Services, which operates 2,000 cars and 2,000 commercial vehicles, has renewed its CV supply deal for another three years and will also be acquiring Ford cars as part of a multibadge agreement. E.ON Group is another important customer to renew its supply deal for another three years, and is expected to take 250 Transits and 300 cars – a mix of Focus and Mondeo – each year for its 2,500-vehicle fleet. Ford fleet director Kevin Griffin said: “Growing net fleet sales is a vital element of the Ford of Britain plan. The results in 2011 were a significant step in the right direction and one which we plan to build on in 2012. Winning the business of these four important customers is a great start to the year.”


A MONTH IN FLEET A skip through the key news and events since the last issue of Fleet World. Sign up to our FREE digital magazine Fleet World Confidential... visit fleetworldsubscriptions.co.uk

CONFIDENTIAL

WHIPLASH CLAIMS THE CAUSE OF INSURANCE HIKES SAYS TRANSPORT SELECT COMMITTEE A committee of MPs has called for referral fees to be banned and for whiplash claims to be more thoroughly investigated in a bid to cut the cost of insurance. The Transport Select Committee has said it wants claimants to provide more proof that they have suffered a whiplash injury, wants insurers to be banned

from selling customer information and from receiving referral fees for this data. Louise Ellman, chair of the Transport Committee, said: ‘Insurers, solicitors and claims management companies have themselves driven up the cost of motor premiums by encouraging people caught up in road accidents they did not cause

FLEET SUPPORT GROUP SOLD TO US FLEET MANAGEMENT GIANT Fleet Support Group has been sold to ARI, the second largest vehicle fleet management organisation in North America, for an undisclosed sum. Britain’s largest fleet management company will join the ARI family of companies, in a move its new owner says will lead to further global expansion. There will be no change in the FSG’s management structure or staff positions as a result of the acquisition. FSG chairman and founder Geoffrey Bray said: ‘It is the start of an exciting new era for the company, its staff and its customers. Both FSG and ARI are privately-owned family businesses and have a similar ethos.’ ARI president Carl Ortell added: ‘This acquisition is another vital step as we continue to expand the scope of our services and our geographical reach. Everyone at ARI is extremely excited about the opportunities that lie ahead of us in the European market.’

to claim for personal injury, car hire, and other legal costs. ‘The insurance industry must abandon sharp practices that push up premiums such as passing drivers' personal data to other parties or taking secretive referral fees from solicitors, garages and car hire firms.’

GOVERNMENT HALVES FLEET COSTS The Government has nearly halved the cost of its car fleet by introducing a car pool scheme. The secretary of state for Transport, Justine Greening, announced a 44% reduction in costs with a large number of cars assigned to nonCabinet ministers defleeted. Run by the Government Car and Dispatch Agency (GCDA), the fleet of allocated cars across all Government departments was reduced from 78 to 13 last year. Spend for the period 1 April 2010 – 31 March 2011 was £3.8m. In 2009-10 the spend was £6.7m. Greening added: ‘To reduce the cost of the Government Car Service to taxpayers, the Ministerial Car Pool was introduced in September 2010 and, from that date, replaced the allocated service for non-Cabinet Ministers in line with the Ministerial Code published in May 2010.’

EUROPCAR LAUNCHES BY-THE-HOUR RENTAL Europcar, has launched hourly car and van hire by the hour, a move it claims is a UK first for a rental firm. The service starts at at £10 an hour for car hire and £11 an hour for van hire, with a minimum of two hour hire up to a maximum of eight on Monday to Friday check-outs only and only Monday to Wednesday for Central London check-outs. Ken McCall, managing director, Europcar UK Group said the new product is in response to the pressure on business finances.

VOLKSWAGEN TO LAUNCH DIESEL HYBRID Volkswagen is developing a diesel hybrid powertrain for Europe, with the newly facelifted and more upmarket CC earmarked as the first recipient rather than the next-generation Passat, engineers confirmed. The CC hybrid’s low emission diesel-electric hybrid system would have to at least compete, if not better, Peugeot’s offering, which means CO2 emissions around the 100g/km mark, if not lower, if mated to a lower-power engine than the one used in the French cars. Volkswagen wouldn’t confirm which unit would be used or a schedule for launch. European buyers will get their first electric powertrain with the up! Blue-e-motion, which arrives in Continental markets at the end of 2013 ahead of an early 2014 UK launch. Shortly afterwards, the manufacturer will launch the all-electric Golf Blue-e-motion in the UK, allowing it to compete against the forthcoming Ford Focus Electric.

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10 YEARS OF

LOOK LIKE THE MD. THINK LIKE THE FD.

CAR OF THE DECADE

JAGUAR XF

THE NEW 52.3 MPG XF 2.2 LITRE DIESEL.

With eight speed automatic transmission, HDD satellite navigation, DAB radio, half leather and xenon headlamps as standard.

REMARKABLE VALUE FROM £399 PER MONTH* »»THE NEW XF 2.2 DIESEL HAS ARRIVED. TO BOOK A TEST DRIVE OR FIND OUT MORE VISIT www.jaguar.co.uk/corporatesales

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OFFICIAL FUEL ECONOMY FIGURES FOR THE XF 2.2 DIESEL IN MPG (L/100KM): URBAN 42.8 MPG (6.6); EXTRA URBAN 58.9 (4.8); COMBINED 52.3 (5.4). CO2 EMISSIONS 149 G/KM. MODEL SHOWN IS THE XF 2.2 DIESEL SE. *Business Users Only. Based on a 36 month agreement on the model shown, standard specification, a mileage of 10,000 miles per annum (30,000 miles in total), non-maintained. Initial payment in advance of 3 months rentals + VAT followed by 35 monthly rentals at rental shown + VAT. May be subject to further charges depending on the condition/ mileage when vehicle returned. Finance subject to status. Guarantees/indemnities may be required. This promotion cannot be used together with other manufacturer’s promotions and is subject to availability at participating dealers only for new vehicles ordered by 31st March 2012, or while stocks last. Certain categories of business user may be excluded. Jaguar Contract Hire is a trading style of Lex Autolease, Heathside Park, Heathside Park Road, Stockport SK3 0RB. Written quotations are available on request. All details are correct at time of publication and are subject to change without notice.


Lean vs Mean.

With outstanding efficiency and unrivalled driving dynamics, the new BMW 3 Series Saloon is already breaking new records in its class. The new range of turbocharged engines deliver figures as impressive as 163hp and 0-62mph in just 8 seconds, with emissions from just 109g/km (even with optional automatic transmission) and fuel economy up to 68.9mpg*, giving them the endurance of a marathon runner and the power of a sprinter. Meaning we really do leave the competition behind.

For further information visit www.bmw.co.uk/bmw3seriessaloon or call 0800 777 113.

JOY WINS. THE NEW BMW 3 SERIES.

Official fuel economy figures for the new BMW 3 Series Saloon: Urban 27.7 – 56.5 mpg (10.2 – 5.0 ltr/100 km). Extra Urban 46.3 – 80.7 mpg (6.1 – 3.5 ltr/100 km). Combined 35.8 – 68.9 mpg (7.9 – 4.1 ltr/100 km). CO2 emissions 186 – 109 g/km. *Combined mpg based on BMW 320d ED model. BMW EfficientDynamics reduces BMW emissions without compromising performance developments and is standard across the model range.


BMW Corporate Sales

bmwcorporate.co.uk Tel: 0800 777 113

The Ultimate Driving Machine


Making sense of the surveys in association with

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...

EYESIGHT A SURVEY FINDS LITTLE CHECKING OF MOTORISTS' EYESIGHT, OR KNOWLEDGE OF IF IT IS AFFECTING THEIR DRIVING FOR WORK. 54% said they worry some of their employees may be driving when their eyesight is not good enough to do so.

91% think it is very important that their employees who drive in the course of their work have their eyes tested.

65% of fleet managers identified the legal requirement of having to be able to read a number plate at 20.5 metres.

38% have a policy in place to test the eyesight of occupational drivers.

Jim Lythgow, director of strategic alliances at Specsavers Corporate Eyecare, said: ‘Far from reducing the standards for drivers’ eyesight, we are keen for the Government to implement fuller testing procedures. Source: Specsavers

ELECTRIC VEHICLES A REPORT ON LONDON’S PROGRESS IN IMPLEMENTING AND PROMOTING AN ELECTRIC VEHICLE NETWORK. • 2,313 electric vehicles currently in London. • 2% of the way towards the London mayor’s goal of 100,000 on the streets ”as soon as possible”. • 400 charge points across London compared to the target of 1,300 by next year and original target of 25,000 by 2015. • There are also fewer than 50 EVs in the Greater London Authority (GLA) fleet compared to the Mayor’s aim of 1,000 by 2015.

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Murad Qureshi, London Assembly Environment Committee chair said: ‘Currently progress is slow and we are concerned that it could take many years before we see any environmental benefits from the Mayor’s ambitious plans. ‘If the Mayor wants to encourage more Londoners to drive electric vehicles, he must demonstrate that the charging network is adequate.’ Source: London Assembly


RURAL ROADS RESEARCH INTO THE DANGERS OF RURAL ROADS REVEALS A DISPROPORTIONATELY HIGH LEVEL OF FATALITIES: 18%

Rural fatal and serious casualties

motorways and dual carriageway.

Rural DEATH ON ROAD TYPES 82% single carriageway roads

MoT

England

Scotland

38%

25% 62%

Urban Wales 24%

75%

76%

IAM chief executive Simon Best called for learner drivers to spend more time on rural roads: ‘The minister recently announced young drivers would be allowed to use motorways when accompanied by an instructor, but it is single carriageway A-roads where the real problem lies.’ Source: Institute of Advanced Motorists

A REPORT BY THE DEPARTMENT FOR TRANSPORT AND VOSA ON THE MoT SYSTEM.

There are 35 million MOT tests conducted at 21,000 authorised premises across Great Britain every year. • 27.7% of vehicles tested in 2010-2011 had one or more car defects that were either missed by MOT test centres or incorrectly assessed. • 12.4% of cars were being incorrectly assessed. • £1.5bn: the cost to motorists of the test. • 6,500 garages self-regulate their customer service through the Motor Codes Ltd Code on Service and Repair.

Transport Secretary Justine Greening said: ‘Our garages are crucial to ensuring that Britain’s roads continue to be among the safest in the world. Most are doing good work but the latest data shows that there is room for improvement.’

• 1,000 garages have been accredited with the BSI Kitemark scheme for automotive services.

CONGESTION A STUDY FINDS HOW MUCH WORKING TIME IS LOST THROUGH CONGESTION. > 100 million lost working days every year for the more than 18 million workers who commute by car. > 58 working weeks of employees’ lives spent not moving in traffic on their daily commute. > The average round trip commute of 28 miles takes 41 minutes, with 12 minutes lost every day in jams and delays. > 63% of workers use their car on at least four of five days in the working week. > 14% of commuters car-share Tim Bailey, head of safety at Continental Tyres said: ‘Planners and government need to recognise that the morning and evening rush-hour is going to be a feature of life in Britain for some time to come. ‘For the economy as a whole it means lost productivity and increased emissions, so it remains a key issue to tackle.’ Source: Continental Tyres

• for the latest daily news from the fleet industry, visit www.fleetworldgroup.co.uk

February 2012

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COMMENT

Can I keep under the ton? The Insider This month, our tame fleet manager is toying with the idea of a sub-100g/km fleet

‘ To make really big savings, we need to be bold’

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I keep receiving emails telling me that the interest on my savings won’t keep pace with inflation. As if I needed reminding. At home and at work, we are always trying to find ways of making our money go further, to keep up with rising costs, and business fuel spend is probably one of the trickiest areas to keep under control. Recently I coerced our reluctant fuel card provider into an improved deal, only to fill up at the pumps today and find that the price of diesel has leapt up another tuppence a litre. Now that might have something to do with supply and demand, as an oil refinery goes bankrupt (whoever heard of that before?) or it may just be the continuing trend, but it has wiped out my fiercely won saving before we’ve even started to enjoy it. Back at the office, I send out further reminders about unnecessary journeys, a lighter right foot, request that the idlers idle less, and wish I could get approval for the telematics system we so badly need installed to help us with all this. The latest systems focus on reporting harsh movements, be that acceleration, deceleration or cornering. The feedback from the system shows what interventions are needed to teach employees to drive more economically, i.e. mostly slower and smoother, and thus reduce the likelihood of accidents as well as saving fuel. Of course, knowing the system is on board should also make the drivers temper their driving. From what I hear, it won’t be long before fleet insurers insist companies must have suitable telematics installed before they will insure anyway, but we need something now. But this is all just fettling around the edges. To make really big savings, we need to be bold, and specify cars of less than

100g/km of CO2. And this is becoming a reality as the range of available cars is increasing all the time. We could probably run two-thirds of our own fleet on such vehicles, replacing existing vehicles which have CO2 around the 135 mark. And if I can get that policy through we would pretty much halve our company car NI bill, as well as paying no road tax. But by far the biggest saving would be on fuel, given the correlation between low CO2 and improved miles per gallon. If we used cars which achieved even 60 mpg instead of 50, 100 cars running 25,000 miles each a year would net us a saving of £53,000 at today’s prices. In fact, using the savings available in each area of cost, the average saving per car per annum ought to be in the order of £800 – a very substantial figure across a fleet in the hundreds. That’s taking into account nil road tax, savings on fuel and employer’s National Insurance. And the majority of our drivers would halve their company car tax bill too. We already reduce our CO2 maximum each year across all job grades. Whilst the current UK taxation system encourages reductions, given the current range of sub-100 cars, we could now push those CO2 rates down even further. That is, if only those occupying the higher grades and setting the final version of the car policy didn’t keep the figures unnecessarily high, just so that they can get the car they want, rather than allowing us to specify cars which would do the job. So perhaps my plan of attack should be to argue for a 100g/km ceiling at the lower grades and prove the savings that way. And then maybe, given most of us believe one should lead from the top, I’ll get agreement to a sub-100g/km fleet. Whose company is this anyway?



COMMENT

Navigating the tracking industry Andy Walters Beware of suppliers persuading customers to raise credit finance for their own cashflow needs, claims Andy Walters, managing director of Quartix.

‘Lease contracts are a debt obligation’ 16

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With the possibility of another recession and credit squeeze on the horizon, it is important that fleet managers and finance directors understand what happened in the tracking industry in the last recession: the use of lease finance contracts to fund tracking systems was the main cause of business failure for a number of suppliers. Customers of these companies were left with long-term finance obligations to third party financial institutions as a consequence. Lease contracts are a debt obligation: few customers seem to realise this, but they are effectively a debt obligation, taken on and underwritten by the customer, in order that the supplier can get paid out immediately. For example, if a customer signs a five-year lease deal for vehicle tracking on 50 vehicles at £25 per month, that amounts to an obligation to pay the bank (or other finance house) a total of £75,000. There is normally no way out of this if the tracking supplier founders, as the debt contract is generally with a separate institution. Lease finance was OK to start with, when vehicle tracking was in its infancy, as it had a valid role to play: systems often cost as much as £1,000 each, and so this kind of credit facility could spread payments over the life of the hardware – typically five years. This started to go wrong when some tracking companies started to include the value of service charges into the lease contract value as well: this allowed them to double the amount of the payout, which could be used to boost cashflow, revenues and profits in the short term. The net result was that, when the downturn came, the money to support customers was spent and suppliers went under, leaving their customers with the debt obligation. I am aware of several companies who were left with debts of at least £75,000, and one which had committed almost a quarter of a million. But

no fleet manager wants to go public with this kind of mistake, and council taxpayers would get upset if they knew about it. The recession had a double-impact on the tracking companies using lease finance in this way: the flow of new prospects dried up as the building and construction sector suffered, and it became almost impossible to find credit for new deals. With some tracking firms their finances were unfathomable, using the practice of declaring the whole value and profit from a five year contract within a month or so of its inception, and it was clearly flawed – revenues, costs and profits clearly needed to be spread over the life of the contract, to ensure that customers would be properly supported. Several major suppliers (not including the ones which went under) decided therefore that they had to restate their finances in this way, and this generally amounted to many millions of pounds, and in one case it was substantially more. Restatement of finances makes it virtually impossible to understand how the company is trading: revenues that have been declared in previous years are deducted from those years and then added back in again to future years, despite the fact that, in many cases, the cash has long been spent. In short, customers would be ill-advised to take the P&L of a supplier as the basis for signing a third party finance obligation. You wouldn't sign a five-year deal for a mobile phone contract, so why do it for tracking? Tracking systems are now sold for less than £300. Some companies may argue that their systems are worth more than that, but when it comes to the crunch, all competitors will be under that price if they want the business. Any supplier who cannot sell a tracking system for less than that is either inefficient or not using current technology.



COMMENT

Prepare to be charmed Curtis Hutchinson With fleets increasingly important to dealers, Motor Trader editor Curtis Hutchinson reckons you should expect keen new suitors.

‘Last year more new cars were sold to fleets than private buyers’ 18

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It may not have happened yet. But it will. As a decision-maker you are likely to be on the receiving end of a charm offensive. And who will be making these overtures? Some of your more switched-on, proactive and hungry local franchised dealers. The reason behind this attentiveness is simple. Last year more new cars were sold to fleets than private buyers. Previously the split had been fairly even but as the economy slid and fragile consumer confidence was shaken retail buyers stayed out of the market. So what does all this mean for fleet buyers? Potentially it's good news for those who source cars or servicing work from local main dealers. Last year was pretty brutal for most car dealers with the average site just about breaking even. As a result many went back to their business plans to identify ways of maximising underperforming revenue streams, especially in light of what will be an even tougher market for new car sales this year. By now dealers who found their fleet businesses wanting will have identified ways of improving their propositions. These are the ones who will be going full out to win and retain your company car business. Many dealers provide local businesses with excellent service and support all the way from acquisition and funding through to maintenance and disposal. For small family-run dealers this is bread and butter business with owners often knowing their fleet customers by name. Bigger groups are also seeing the benefits of nurturing closer ties with local fleets and providing a top-notch service. Marshall Motors is one of the top 10 dealer groups in the country, and its boss Daksh Gupta recently told me just how important fleet sales are to his business. ‘There has been an upside in our new fleet car

volumes. Dependent on the brand, you have to sell three to five corporate vehicles to equal the profitability you make from a retail vehicle. Our year-on-year volumes in fleet have increased quite dramatically that’s because we made a strategic decision three years ago to aggressively go after that marketplace,’ he said. It's not only new car sales that have been impacted by the downturn – it's also servicing and repair work. Dealers are dependent on cars, especially those under warranty, for servicing work. However with competitive services and prices being offered by independents, especially the growing number of national operators, which now includes Halfords, targeting fleet work, they have to work even harder for the business. This might sound like a cynical exercise in captive marketing but the better players know they cannot afford to just make short term gains. Any dealer not prepared to provide fleet clients with extremely high levels of customer service will not deserve to retain it. Although it's easy to knock car dealers, because, let's face it, who hasn't had a bad experience, the professionalism of the trade is on the rise. Dealers have made significant investments in training and increasingly look to non automotive retailers to benchmark their customer service standards; Waitrose, Amazon and Apple stores are the most frequently cited standard bearers. There's a lot of talk in the industry about how customer service levels have been addressed. Bad experiences can now be documented and instantly transmitted by disgruntled customers from dealer reception areas via Twitter and Facebook as social media become a potent platform for checks and balances. Customer service standards are improving and you could become a beneficiary. Prepare to be charmed!



DRIVEN

BMW ActiveHybrid5 BMW’s first hybrid is high performance, and not especially green. Matt Joy finds out what’s going on. SECTOR Large executive PRICE TBC FUEL 44.1mpg CO2 144g/km With Efficient Dynamics, BMW has stolen an advantage on its premium rivals with impressively low fuel consumption and emissions figures almost regardless of engine capacity and output. Yet it has taken until 2012 for its first hybrid model to reach the UK (the ActiveHybrid7 sold only in mainland Europe) in the form of this petrol-electric 5 Series. This month the ActiveHybrid5 goes on sale in the UK, priced at £46,860 and with a comprehensive specification as standard. From the outside it looks like any other 5 Series – save for the rather unsightly badge on the C-pillar and some unique 18inch alloy wheels – but is still one of the sharper-looking offerings in the class. BMW says the ActiveHybrid5 is a cleaner alternative to the 535i and the figures back this up. It uses the same 304bhp 3.0-litre TwinPower turbocharged engine with a 53bhp electric motor sandwiched in the housing for the standard eight-speed transmission, giving a total output of 335bhp and 331lb.ft of torque through the rear wheels. With a 2.4-mile pure EV mode at speeds up to 37mph, it does this while returning combined figures of 144g/km and 44.1mpg. There's very little from the driver's seat to indicate that this is a hybrid except for the modified instrument panel which dis-

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plays battery charge and ”range boost” to show how much range has been added by the system’s efforts. The ActiveHybrid5 starts in silence and on a gentle throttle slips straight into EV mode. How the petrol engine kicks in depends on the vehicle settings; BMW's Driving Experience Control has the same EcoPro mode as the 520d EfficientDynamics, which sets all systems for maximum efficiency including electrical convenience systems and the powertrain. In this mode it takes a more determined squeeze of the accelerator to kick the petrol engine into life, but once activated the acceleration is as brisk as the sub six-second 062mph time would suggest. Another useful feature is the ability to switch the engine off on the overrun and decouple from the transmission at speeds up to 100mph. Driven with efficiency in mind the ActiveHybrid5 is a fuss-free and relaxing experience. The eight-speed transmission is impressive and the switch between power sources is seamless and unobtrusive. Freewheeling at motorway speeds is an odd experience but clearly helps to boost the overall economy. With everything switched into Sport mode the ActiveHybrid5 feels barely different from any other powerful 5 Series; the acceleration is rapid and effort-

less and despite the extra weight (the battery pack is mounted in the boot) it feels agile – how it copes on the low-friction standard tyres will have to wait for a UK drive. Christian Schwarz, manager of the ActiveHybrid5 project told us this system will appear in the new 3 Series. However, there are few other plans for it. He said: ‘This system is too big for the 1 Series, and there are no plans for an X3 or X5 version as the overall weight with four wheel drive would not result in satisfactory performance. The ActiveHybrid system will only appear with this six-cylinder petrol engine; the intention is to offer the dynamics of the 535i without compromises – it drives like a regular BMW rather than an electric car with strong engine braking. Sadly there will be no Touring version of the ActiveHybrid5; the luggage compartment would be too compromised.’

verdict

The 5 works well as a high-performance hybrid, but EfficientDynamics models have shown people want low emissions with some degree of performance. So this seems an oddly-positioned niche car rather than a must-have, especially with the a 109g/km diesel-electric E-Class hybrid on the way.


DRIVEN

Volkswagen CC Volkswagen’s move upmarket goes further than ditching the Passat badge, reckons Alex Grant. SECTOR Upper medium PRICE £24,200 – £30,100 FUEL 36.2 – 60.1mpg CO2 125 – 182g/km It’s not so long ago that the idea of a coupe version of the Passat would have sounded like a complete misnomer. Though the four previous generations were unquestionably well-built, comfortable and reliable family carriers, Volkswagen’s saloon had never been a car that really turned heads. And then the first CC model arrived in 2008, and things changed. Styled with more fluidity than the rest of the range, it was very well received. Ironically, having done such a good job of holding its own, it was only ever a matter of time before it got brought in line. Though it sounds like a predominantly private-sector buy, its real success has been in fleet. Some 82.5% of the outgoing car’s sales were in the corporate sector, almost identical to the 83.5% of saloon and 83.9% of estate models. The difference is, it undoubtedly netted plenty of image-conscious drivers who wouldn’t otherwise have considered a Passat. But even Volkswagen admits this did present it with a problem of identity. Whereas the Scirocco has its own niche within the range, instead of being badged as a Golf Coupe, the Passat CC felt closely linked to the common Passat. Yet, like the Scirocco, there was visually very little similarity. This has been rectified with the new

car, which is now simply badged CC – as the old model was in North America and South Africa. The Passat badge, meanwhile, is saved for the more utilitarian standard car and its forthcoming AllTrack soft off-road sibling. Although now more serious looking, there is more Phaeton than Passat in the new car’s styling thanks to the thick-slatted grille and straight-cut front and rear lights. Though it’s not quite as distinctive as the old car’s there’s a neat subtlety to the overall look that retains its desirability, and is a well-executed attempt at moving the car upmarket. The launch test route included a brief drive through Monaco, and amid the high-rise hotels, stretch limousines and designer handbags the CC felt totally at home. Where the family resemblance comes through most is inside. The dashboard is lifted straight from the saloon, but with better designed door cards and higher quality trim inserts it still has that high class feel. Supportive leather seats and a high level of standard equipment – now including a touchscreen sat nav unit with DAB radio and Bluetooth – all contribute too. This is to say nothing for the options list, which includes clever headlamps that automatically adjust to avoid dazzling oncoming traffic but without dipping

completely, heated and cooled seats and the same low-speed accident avoidance system as the up! city car. But perhaps the best bits that it brings across from the saloon are its choice of engines. There are no 1.6-litre diesels, but the familiar 2.0-litre units are carried across. In 138bhp form, this allows the CC to nudge just over 60mpg, while the 168bhp unit has a noticeably wider power band than the old version. Both emit less than 130g/km of CO 2, at 125 and 129g/km respectively, and are available with a DSG gearbox which now features steering wheel paddles for the first time – an odd omission from its predecessor. So, like the Scirocco, the CC now feels like a model in its own right. A car which no longer needs the Passat name to place itself, and one which provides an affordable upmarket option for fleets.

verdict

The outgoing model was an unexpected corporate powerhouse for tying that Passat dependability and efficiency into a sharperdriving and better looking coupe. This refresh does little to deviate, simply taking the concept further upmarket rather than revolutionising a formula that already works well.

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DRIVEN

Alfa Romeo Giulietta TCT Dual-clutch auto adds up to tax savings, but at what cost? Alex Grant investigates. SECTOR Lower Medium PRICE From £24,800 FUEL 54.3 – 62.8mpg CO2 119 – 121g/km Carbon-based taxation is driving rapid decline in CO2 emissions at the moment, and in turn resulting in some impressive factory figures from carmakers that could only have been fictitious until recently. Certainly Alfa Romeo’s new six-speed, twin-clutch transmission (TCT), which is now

available in the Giulietta, sounds this way. Fitted only to the 170bhp petrol and diesel engines, it uses Stop & Start to help bring emissions down, and works with the D.N.A. dynamic control switch to allow drivers to be as economical or enthusiastic as they want. So huge are the CO2 reductions, that Alfa

expects as many as 20-25% of the 6,500 predicted UK Giulietta sales this year to be fitted with this gearbox. Good going in a market where manuals have traditionally fared better. For the diesel, TCT reduces CO2 emissions from 124g/km to 119g/km with fuel economy up to 62.8mpg. Gear changes are impeccably smooth, too, barely noticeable when cruising and kick-down is swift enough to not to require a pre-emptive tap of the steering paddles. But the extra 15kg up front does add to the already nose-heavy diesel Giulietta. It’s the 1.4-litre turbo petrol that really sounds like the work of witchcraft though. Fuel economy here is best-in-class for a petrol engine at 54.3mpg, while CO2 emissions at 121g/km are 13g/km lower than the manual and 3g/km lower than the 104bhp VAG TSI engine. There is a trade-off, though. The gearbox keeps the engine under 2,500rpm in normal driving, way out of its power band. And though smooth for cruising, the gearbox ends up scrabbling through a couple of gears before it finds enough power for rapid acceleration. Not a deal-breaker but it does make the petrol feel more lethargic than the diesel. But at £1,350 over the manual, it’s an attractive way to get diesel-like emissions without paying the higher cost of upgrading to an oil-burner.

Mazda6 Business Line

DRIVEN IN BRIEF

BMW 320d Sport It’s easy to forget, given that BMW is now renowned for diesel engines, that it was one of the last premium brands to offer an oil-burner in the UK. Not that this has held it back. The 320d is likely to be the most popular engine in the new 3 Series line-up, and even more so with the addition of the forthcoming EfficientDynamics version. Smooth and responsive to drive, the twin-turbo diesel gives an impressive turn of speed that makes it almost as entertaining as the new four-cylinder petrols. Which is no mean feat considering the refinement and fuel economy on offer – 61.4mpg and 120g/km CO2 for the manual and an even more impressive 62.8mpg and

119g/km for the slightly less involving eight-speed automatic. The rest of the packaging is no less impressive. Aggressive to look at and beautifully made, it offers a driving experience that’s peerless in its class, but while it’s flawlessly balanced and sure-footed through corners, the sports-car handling doesn’t ruin the ride. Even on 18-inch wheels and with Sport mode switched on it’s still plenty comfortable enough for long-distance cruising. BMW’s compact executive carrier has long stood for best-in class dynamics, and excellent diesel engines have only broadened its appeal. The corporate sector has never had it so good. AG

SECTOR Compact Executive PRICE £18,130 (P11D) FUEL 55.4mpg CO2 133g/km

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The Mazda6 may be one of the oldest in its class, but still offers one of the sharpest drives. And, even with a replacement in the pipeline, the Business Line trim proves it still has a trick up its sleeve, taking the options out of a corporate purchase by packaging the basic fleet ingredients into a single, keenly-priced variant. It gives drivers TomTom’s excellent satellite navigation with Bluetooth, a reasonably frugal but plenty powerful enough 128bhp 2.2-litre diesel engine, with a spoiler and 17-inch wheels to add to its visual appeal. It’s not staggeringly highly specced but has all the most useful boxes ticked for a life on the road. AG SECTOR Upper Medium PRICE £18,130 (P11D) FUEL 55.4mpg CO2 133g/km


who says you can’t manufacture The Fiat 500 TwinAir was born to perform, and has been awarded the International Engine of the Year. It gives you more torque at lower revs with fewer emissions. It even gets ▲ you out of paying road tax . So it may be a superstar, but it’s keeping its wheels firmly on the ground.

a star

CO2 95 g/km • Mpg 68.9 • BIK 10% fiat 500 twinair from just £159 per month for business users Email fiat.fleet@fiat.co.uk or call us on 08446 623 648 for more info.

TWINAIR

superstar as standard facebook.com/FiatUK

fiat.co.uk

Fiat, the car brand with the lowest average CO2 emissions in Europe†. Fiat 500 TwinAir, the lowest CO2 emission petrol car engine in the world*. Fuel consumption for Fiat 500 TwinAir in mpg (l/100km): Urban 57.6 (4.9); Extra Urban 76.3 (3.7); Combined 68.9 (4.1). CO2 emissions 95 g/km. Above rentals based on Fiat 500 TwinAir on Contract Hire payment profile of 3 rentals in advance (equivalent to £477) followed by 35 monthly rentals of £159. 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 31st March 2012. Offer subject to status, a guarantee and/or indemnity may be required. Offer correct at time of going to press and may be varied or withdrawn at any time. Subject to availability. Fiat Contract Hire, 240 Bath Road, Slough, SL1 4DX. ▲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. †Source: JATO Dynamics. Based on Volume-weighted average CO2 emissions (g/km) of the best selling brands in Europe, year 2010. *According to NEDC standard.


FEATURE Emissions

THE IMPORTANCE

OF BEING IDLE With London Mayor Boris Johnson proposing big fines for idling, Alex Grant asks if fleets should consider advising drivers to switch off when stuck in traffic, or will they be doing more harm than good?

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C

laiming pollution from idling contributes to the 4,300 premature deaths in London each year, the capital’s Mayor Boris Johnson has revealed plans to increase the penalties levied against drivers who leave their engines ticking over in traffic. Should these come into effect, London will become a no-idling zone, with offenders hit by a £120 fine for leaving the engine running for more than 60 seconds. But if doing so both reduces harmful emissions and cuts costs from wasted fuel, is avoiding idling an example set by London that fleets UK-wide should be following? The No Idling campaign itself is nothing new – the City of London Corporation made the announcement last March that it was planning to make the capital a no-idling zone, and was working with the Mayor to do so. But while Boris Johnson said 2002 road traffic regulations allowed local authorities to issue fines to drivers who allow their cars to idle unnecessarily, he added that the ruling needed to be tightened up. In his Clean Air Strategy, issued last month, he commented: ‘It is problematic to define “unnecessarily” and the penalty charge is fixed at £20, which is too low to be a powerful disincentive. The £20 penalty for idling compares unfavourably with the £120 penalty charge issued for parking offences. The Mayor urges the Government to increase the penalty charge for idling offences, so that it is in line with that for parking offences.’ But while the Mayor demonises idling, even manufacturer-fitted stop/start systems do not always switch off the engine while stopped in traffic. Furthermore, the majority of cars on the roads are fitted with conventional starter motor systems which are not designed to be used repeatedly. So is it always a good idea to switch off when stationary? Jo Hudson, corporate communications director at Bosch, which makes the majority of factory-fit stop/start systems, explained that the way its technology works was not directly comparable to switching off manually. Such systems are fitted with an uprated starter motor and a battery designed to cope both with the load of repeatedly cranking the engine and to operate at lower states of charge. Battery

You could get to work with a cold engine still on warm-up dependent on your drive cycle, so switching on and off repeatedly would use more fuel and your emissions would be much higher

charge, cabin and oil temperatures are also monitored and factored into the car’s ‘decision’ to stop or not. ‘If a driver stopped and started the engine manually, these checks would not take place and they would not know whether the battery had sufficient charge to restart the engine. In addition, there is the consideration of ancillaries. In turning the engine off, a driver may also end up turning off electrical devices such as headlights, posing a safety risk,’ she added. There’s a further question too. Just how much fuel would you save by repeatedly switching the engine off? Getting definitive fuel consumption figures for idling and restarting is difficult, and hard to test scientifically. As well as environmental factors, fuel consumption at idle depends on the engine and the alternator load from auxiliary systems. Cranking an engine also places a heavy load on the battery – visible on conventional starter motors because lights tend to dim on startup – which varies depending on the vehicle and the number of on-board systems running. So while Bosch claims a 5% improvement in fuel economy on the NEDC fuel efficiency test cycle, it’s difficult to work out how this would compare to switching the engine on and off using traditional starter motor technology. If there are any results for the real world difference between stop/start fitted cars and those without it, they are a closely guarded secret by the industry. It makes you wonder why. One engineer, who has worked for motor manufacturers but didn’t want to be named, told Fleet World: ‘It’s not a simple problem. You could get to work with a cold engine still on warm-up dependent on your drive cycle, so switching on and off repeatedly would use more fuel and your emissions would be much higher. The idea that it’s beneficial for an idling period of more than 60 seconds is purely circumstantial and can’t be a cross-generalisation. ‘Plus in a non stop/start car without direct injection it takes longer to restart, which is

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MORE ADM

LESS EMISSIONS

EXPECT BIG THINGS. The mighty MINI Countryman delivers four-doors, five-seats, optional four-wheel drive and a boot that really measures up. With low emissions and impressive mpg the MINI Countryman can take your fleet into the big time. For more information, please visit www.mini.co.uk/corporate or call 0800 777 113. Official fuel economy figures for the MINI Countryman range: Urban 27.4-60.1mpg (10.3-4.7l/100km). Extra Urban 45.6-67.3mpg


MISSIONS

mini COUNTRYMAN

(6.2-4.2l/100km). Combined 36.7-64.2mpg (7.7-4.4l/100km). CO2 emissions 180-115g/km.


FEATURE Emissions

THE IMPORTANCE

OF BEING IDLE potentially a problem for emergency vehicles moving through traffic all with their engines off. And for sure component life will be significantly shorter.’ Repeatedly switching the engine off can also play havoc with tracking systems. Clive Girling, marketing director at Tracker, said modern telematics systems pick up electrical noise from the alternator to detect when the engine is running. This allows data to be gathered only when the car is using fuel, showing accurate idling data and ignoring times when the ignition is running to keep onboard systems running – such as when the driver is stopped for lunch and listening to the radio. However, if drivers are turning their engines on and off repeatedly in traffic, the data can be affected. ‘It has an impact and as is always the

case there is no simple answer,’ Girling explained. ‘It means for us we have to provide the option to set up a minute delay before it records it as a stop, and anything under a minute won’t be recorded. Because it’s fairly new we don’t have a lot of customers with the issue. We give customers the ability to decide for themselves.’ Although idling can be a needless waste of fuel, it’s difficult to give a definitive answer as to when it’s more efficient for the engine to be switched off. Cars with stop/start systems make a complex set of decisions and use uprated components to cope with repeated cranking – factors which would be impossible for a driver to judge. As such, fleets should consider their advice to drivers carefully, rather than taking such a broad-brush approach to idling.

THE ELECTRONIC DECISION-MAKING PROCESS Stop/start systems don’t simply turn off whenever the engine is left to idle. Instead, the process is based on a number of factors. Audi’s system, for example, requires the following conditions to be satisfied: • The engine has reached a minimum operating temperature. • The climate control system has reached the set cabin temperature or the windscreen is not being defrosted. If the interior temperature rises or falls after the engine has switched off, it will restart automatically.

• The exterior temperature isn’t too hot or too cold.

THE MAYOR’S ARGUMENT AGAINST IDLING As part of its No Idling campaign, the City of London Corporation published the results of research which it said support switching off in traffic. The findings argued: Modern batteries require less running time than their predecessors, and aren’t reliant on the engine running to maintain charge It takes up to an hour for engines to cool down, so turning off won’t cause cabin temperatures to drop if the fans are left running. Idling does not maintain catalytic converter temperatures, and though these are most efficient when hot, they retain heat for 25 minutes after the engine is turned off

• The battery charge is sufficient – if it drops below a set level while switched off or on-board systems require increased power, the engine will restart automatically.

• The steering wheel isn’t close to full lock and the car isn’t in reverse gear. • The driver’s door must be closed, with driver’s seatbelt buckled. • The car must have travelled 4mph+ since it last stopped. • The car must not be towing a trailer. • The car must not be on a steep gradient.

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If all drivers in Central London switched off when stopped for over a minute, it would reduce annual PM10 particulate emissions – which can cause heart disease, asthma and lung cancer – equivalent to the volume emitted by driving the equivalent of the distance a return journey to the moon.


DISCOVER

A WORLD OF DIFFERENCE P11D PRICE LIST

VEHICLE WHOLE LIFE COST CALCULATOR

TOOLBOX AMPERA

APP

ECOFLEX CARS

BENEFIT-IN-KIND CALCULATOR

FUEL COST CALCULATOR

INSIGNIA

FLEET WHOLE LIFE COST CALCULATOR

PROUD SPONSOR

ASTRA GTC

KNOWLEDGE

PEACE OF MIND

ECOFLEX VANS

SPECIAL OFFERS

3 DAY TEST DRIVE

SERVICE & SUPPORT

NO.1 FOR FLEET

LEASING RATE LOOK-UP

THE BEST OF BRITISH

CO 2 BAND LISTINGS

See the difference, feel the buzz. The excitement keeps building at Vauxhall. In 2011, we achieved the position of No.1 Fleet Manufacturer and were named No.1 Website by Business Car Magazine. We also expanded our top-selling, lower emission ecoFLEX range and launched Toolbox and RoadTrip. We could go on. And we will. 2012 – watch out, here we come.

VAUXHALL FLEET Call 0870 010 0651* or visit www.vauxhall.co.uk/fleet Official Government Test Environmental Data. Fuel consumption figures mpg (litres/100km) and CO2 emissions (g/km). ecoFLEX range: Urban – from 43.5 (6.5) to 67.3 (4.2), Extra-urban – from 61.4 (4.6) to 91.1 (3.1), Combined – from 53.3 (5.3) to 80.7 (3.5). CO2 emissions from 139 to 94g/km. *Telephone lines are open Monday-Friday, 8.00am to 5.30pm excluding Bank Holidays. Calls may be recorded or monitored for quality and/or training purposes. 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. 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.


COVER STORY Sub-100g/km Fleet

THE SUB-100 FLEET DREAM OR REALITY? Could you be running your fleet at an average of 100g/km of CO2, and so make savings without making compromises? Steve Moody and Alex Grant investigate.

THE LOWEST OF THE LOW OUR PICK OF THE CLEANEST CARS IN THEIR SECTORS...

City car: Volkswagen up! Bluemotion (95g/km) The city car segment is petrol-dominated, with no shortage of sub-100g/km vehicles and a handful of battery electric models joining the market. However, for practicality and cost it’s the Volkswagen up! and its mechanically identical siblings from Škoda and SEAT that make the most sense for fleets. In Bluemotion form, the up! emits 95g/km and is the most distinctive looking of the three. It falls into the second lowest insurance group and has a desirable badge which means strong residuals, while practicality will be boosted by the forthcoming five-door model.

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OTHER OPTIONS • • • • • • • • • • • • • •

Citroën C-Zero (0g/km) Citroën C1 (99g/km) Fiat 500 TwinAir (95g/km) Fiat Panda TwinAir (95g/km) Ford Ka (99g/km) Hyundai i10 Blue (99g/km) Mitsubishi i-MiEV (0g/km) Peugeot iOn (0g/km) Peugeot 107 (99g/km) Renault Twizy (0g/km) SEAT Mii Ecomotive (97g/km) Škoda Citigo (97g/km) Smart fortwo cdi (86g/km) Toyota iQ (99g/km)


Fleet Academy: Tax Implications of a sub-100 g/km car There is now a plethora of cars with emissions figures of 100g/km or less, and the list grows longer seemingly every month as manufacturers find more ways of dipping cars below this magical mark. But the reality of sub100g/km is that it’s not just hair-shirt motoring, wheezing about in tiny little city cars unfit for a working life. Increasingly every model range has a car with double digit CO2 figures, and even larger models are seeing efficiency specials somewhere around this mark. It might seem an arbitrary target, but if the vast majority of your cars are below the 100g/km figure, there are a number of financial benefits, as our Fleet Academy experts explain...

Peter Minchinton, Manager – Employment Solutions, RSM Tenon

Alastair Kendrick, Taxation Director, MacIntyre Hudson LLP

From April 2012 there are a number of changes in the way low and zero emission cars are taxed. For businesses the rules remain the same and you can claim 100% first year allowances on capital expenditure on a car provided that: • the car is “unused and not second hand”, and is first registered on or after 17 April 2002; • it is an electric car, or • a car with CO2 emissions of not more than 110gm/km. • the expenditure is incurred between 17 April 2002 and 31 March 2013. For employees, apart from normal petrol and diesel cars over 100 gm/km, cars are in three categories. Sub 100 g/km cars. Where the CO2 figures are between 1-75 gm/km, the BIK percentage is 5%. For 76-99 it is 10%. There is a 3% supplement for diesel cars. Category E covers what were solely electric cars but has been extended to all zero emission cars. The BIK is 0% up to 2014/15 after which it becomes 9%. Category A covers all the hybrid cars and those that were categories P, H, B, C and G. The BIK is 5%.

Leaving aside the question from a duty of care point of view over whether a low emission car is “fit for purpose” there are significant tax breaks. The position for electrics cars means that no taxable benefit arises on the vehicle with that pledge being from April 2010 for a five year period. The news on other cars with low emissions (sub 100) is more fluid. At present, subject to the emission level being below 100 then the benefit is limited to 10% this year but the rates do move, meaning a car with 100g/km emissions in 2012/13 pays 11% and 12% in 2013/14. The rates for later years are to be announced and there is speculation there may be a significant increase. So while there is a clear position over the taxation of electric cars, that is not the case in the medium to long-term with traditionally-powered vehicles, and those now going into a three-year contract do so with some uncertainty of the taxation in the back-end of the contract. But having sounded a note of caution, the scale of the benefit does mean an employer can provide what is an attractive benefit without the taxation of this spoiling the offering.

Supermini: Kia Rio EcoDynamics (85g/km) The majority of sub-100g/km cars in the supermini segment are diesel-powered, but innovative petrol cars such as the two-cylinder TwinAir engine due for the Fiat Punto and Alfa Romeo MiTo, supercharged Micra DIG-S and forthcoming Yaris hybrid are options for particulateconcerned fleets. But this is a core segment, and one where fleet-wide emissions can be brought down with the best in class. In this case, it’s the 85g/km new Kia Rio. Stylish and affordable, it’s also possible to buy the better-equipped Air version and 2 trim in sub-100g/km form.

OTHER OPTIONS • • • • • • • • • • • • • • • • • • • • •

Alfa Romeo MTO 1.3 JTDm-2 85bhp (95g/km) Audi A1 1.6 TDI (99g/km) Chevrolet Aveo 1.3 VCDi (95-99g/km) Chrysler Ypsilon 1.3 M-Jet (99g/km) Chrysler Ypsilon 0.9 TwinAir SE auto (97g/km) Citroën C3 eHDI 70 Airdream EGS VTR+ (87g/km) Citroën DS3 1.6 HDi 90 Airdream (95-98g/km) Fiat Punto Evo TwinAir (98g/km) Ford Fiesta Econetic 1.6 TDCi (95g/km) Hyundai i20 Blue 1.4 CRDi (98g/km) Kia Rio 1 Air (94g/km) 2 CRDi (99g/km) MINI One D and Cooper D (99g/km) Nissan Micra DIG-S (95g/km) Peugeot 208 (from 87g/km) Renault Clio dCi 88 (94g/km) Renault ZOE (0g/km) SEAT Ibiza EcoMotive (92g/km) Skoda Fabia Greenline II (89g/km) Toyota Yaris HSD (TBC) Vauxhall Corsa 1.3 CDTi Ecoflex (94g/km) VW Polo Bluemotion (91g/km)

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MAKE THE PERFECT ADDITION TO YOUR FLEET TODAY WITH THE VOLVO V60 AND S60 DRIVe • Whole life costs as low as 53.61p/mile*

• As many as 972 miles from a single tank**

• Up to 65.7 mpg**

• Benefit in kind contributions from £51.11/month†

T 08457 300 140 Fuel consumption figures for the Volvo S60/V60 DRIVe in mpg (l/100 km): Urban 54.3 (5.2) to 57.7 (4.9), Extra Urban 67.3 (4.2) to 72.4 (3.9), Combined 62.8 (4.5) to 65.7 (4.3). CO2 emissions 119 g/km to 114 g/km.


YOUR VOLVO DRIVe

THE EASIEST BUSINESS CASE YOU’LL MAKE

Adding the Volvo S60 and V60 DRIVe to your fleet could be one of the shrewdest decisions you’ll ever make as a fleet decision-maker. Not only do we beat rivals Audi (A4 2.0 TDIe SE: 58.97p/mile*) and BMW (320d ED: 59.97p/mile*) on whole life costs, but we offer significantly shorter delivery lead-times, too.

While from your drivers’ point of view, these cars deliver outstanding efficiency without compromising on looks, comfort, equipment levels or performance. Particularly as the Volvo S60 and V60 DRIVe are now available as automatics – giving similar mpg to manual cars and no increase in CO2 emissions. Call your Volvo Business Specialist or visit our website to fi nd out more.

VOLVOCARS.CO.UK * Based on 36 months, 60,000 miles. Source: KWIKcarcost January 2012. ** Official fuel figures for the Volvo S60 DRIVe. Based on a combined cycle. † Based on 2011/12 benefit in kind tax rates for the Volvo S60 DRIVe ES for a 20% taxpayer.


COVER STORY Sub-100g/km Fleet

Premium mid-size hatchback: Lexus CT 200h (98g/km) Launched into a diesel-dominated market, Lexus’s compact hybrid has performed well, with over half of all sales last year going into this one model. Offering a power output that almost matches 2.0-litre diesel models, but with CO2 emissions lower than rivals’ entrylevel 1.6-litre diesels, Lexus claims tax and fuel savings of over £2,500 in a three-year life cycle as one of its major selling points. The first examples of the more aggressive-looking FSport version arrived in showrooms last month, featuring revised suspension settings and a sports styling pack inside and out to up its appeal. OTHER OPTIONS

Mid-size hatchback: Renault Megane dCi 110 Stop and Start (90g/km) The mid-size hatchback class is one of the most competitive on emissions, with most mainstream manufacturers offering a sub-100g/km model. Conventionally powered vehicles are all diesel powered, while petrol options include two Toyota hybrids and GM’s innovative rangeextended electric cars. But while the C-Segment includes very capable pure electric cars, this is a sector where long-range cruising is a desirable feature and volumes are high enough to make ultra-low CO2 models an advantage for reducing range-wide emissions. Renault’s forthcoming Megane will feature a revised dCi 110 diesel with start/stop at 90g/km, with the option to buy estate and coupe versions alongside the hatch.

• • • •

Audi A3 1.6 TDI 3dr (99g/km) BMW 116d EfficientDynamics (99g/km) Lexus CT 200h (98g/km) Volvo C30/S40/V50 DRIVe (99g/km)

OTHER OPTIONS • • • • • • • •

Chevrolet Volt (40g/km) Citroën C4 1.6 eHDI 110 EGS VTR+ (98g/km) Ford Focus Electric (0g/km) Honda Insight (96g/km) Honda Civic 1.6 diesel (TBC) Hyundai i30 1.6 CRDi Blue Drive (97g/km) Kia Cee’d 1.6 CRDi (TBC) Nissan LEAF (0g/km)

CASE STUDIES

• • • • • • • •

Renault Fluence Z.E. (0g/km) SEAT Leon Ecomotive (99g/km) Toyota Auris Hybrid (89/93g/km) Toyota Prius (89/92g/km) Toyota Prius Plug-in (49g/km) Vauxhall Astra ecoFlex (99g/km) Vauxhall Ampera (40g/km) VW Golf Bluemotion (99g/km)

GOING UNDER THE TON: FLEETS WHO HAVE MADE THE LEAP...

E.ON

CAMPS INTERNATIONAL

Around 340 home energy advisors working for energy firm E.ON are driving Ford Fiesta 1.6-litre TDCi ECOnetics, which have CO2 emissions of 95g/km. Contract hired from Lex Autolease, the vehicles are expected to cover an average of 20,000 miles a year, including personal and business use. E.ON has recently changed its fleet car replacement period from three to four years. Nina Hughes, Fleet Development Manager, Business Services, says: ‘We have had good feedback from the drivers of our Ford Fiestas, and the lower CO2 emissions of the Fiesta ECOnetic will help us deliver on our lower emissions policy as well as providing reduced fuel consumption. ‘As a company we have an overall fleet CO2 reduction target of 40 per cent by the year 2020, having achieved reductions exceeding 10 per cent a year, since 2008. We are expecting these Ford cars to further help in achieving our goal.’

An award-winning ethical travel company, Camps International has added a dozen SEAT Ecomotive models, with emissions of 99g/km or less, to its UK vehicle fleet. Camps International offers a range of gap year volunteering experiences and school expeditions at locations across East Africa, South East Asia and Latin America, and the 11 Leon E Ecomotive models and one Ibiza E Ecomotive will be used by the Hampshire-based company’s UK sales team as they travel to schools and colleges liaising with young people and organisations interested in all manner of life-changing travel options. Camps International says the SEATs have helped it to slash its fuel costs while members of the sales team have also made significant tax savings.

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COMMENT Is the 100g/km fleet a reality – or will it be soon? Nigel Underdown, Head Of Transport Advice, Energy Saving Trust

Upper-medium car: Peugeot 508 (99-109g/km) Downsized efficient diesel engines have brought a rapid decline in the average CO2 emissions of the D-Segment, with many of the mainstream manufacturers offering sub120g/km models. It means long-distance cruisers don’t have to affect average emissions too heavily. The lowest emission vehicles in the segment are the 109g/km Volkswagen Passat Bluemotion and Peugeot 508 eHDI micro-hybrid. But it’s the Germanic new 508 which offers the broader spectrum of low-CO2 models, with the dieselelectric HYbrid4 powertrain returning 99g/km in the saloon due next year, and 109g/km in the rugged-looking RXH. OTHER OPTIONS • • • • • • •

Ford Mondeo 1.6 TDCi Eco (114g/km) Hyundai i40 1.7 CRDi Blue Drive (113g/km) Peugeot 508 e-HDI (109g/km) RXH (109g/km) HYbrid4 (99g/km) Škoda Superb Greenline II (119g/km) Toyota Avensis WHICH ONE (119g/km) Vauxhall Insignia 2.0 CDTi ecoFLEX (116g/km) Volkswagen Passat Bluemotion (109g/km)

Premium family car: BMW 320d ED (109g/km) In the outgoing 3 Series, the 320d EfficientDynamics has helped make BMW almost the default option for the corporate sector, proving that matching the best-in-segment mainstream models didn’t have to mean sacrificing performance, luxury or an upmarket badge. The new 320d EfficientDynamics raises the bar further, cutting emissions to 109g/km and offering the automatic gearbox 40% of buyers of the old model said they wanted, without an uplift in CO2. Low tax has made this an attainable model for plenty of fleets who had never considered BMW before, the carmaker has said. OTHER OPTIONS • • • • •

Audi A4 2.0 TDIe 136PS (112g/km) Citroën DS5 Hybrid4 (99g/km) Mercedes C220CDI BlueEfficiency (117g/km) Volvo S60 DRIVe (114g/km) Volvo V60 PHEV (49g/km)

Of course it’s possible to achieve a fleet average of 100g/km of CO2 now. At the latest count there are 180 vehicles of less than 100g you can order today. Sprinkle in a few EVs at zero (okay, ignoring the upstream emissions) and that should leave some slack for the odd MPV and still allow you to achieve an average of 100g or less. But is it a sensible ambition for the average fleet manager? No – at least, not as an aspiration in isolation from other key considerations. Sure there is an impressive crop of 99g/km and lower cars which many income-squeezed drivers are increasingly drawn to. They’re finding that lower tax and cheaper private motoring don’t come with that many restrictions in terms of creature comforts and performance. And lower Employers NI should help the business too. But steering drivers towards more efficient vehicles needs to take account of more than just the tax bill and that’s why measuring success simply on the quoted combined CO2 has its pitfalls. Firstly, many of the advances in vehicle technology impact most in urban driving. That stop-start system which helped to score a magic 99g/km on the combinedcycle will do little for your national sales manager driving long distances on the motorways. Similarly, the smallengined hybrid cruising at 70mph will perform much less well than a bigger diesel. Most of us know that in real life motoring the official mpg is very hard to achieve but research in the Netherlands has concluded that the variance between combined and real life mpg increases as vehicle CO2 decreases. Choosing a car that’s fit for purpose is more likely to do what it says on the label in terms of CO2 than a low carbon car that’s put to work on the wrong job. It’s understandable that CO2 is front-of-mind in many fleet decisions but, tax issues apart, what really matters is how much fuel is burnt and how many miles are driven and at what overall running cost. Tackle driver behaviour in terms of driving style and unnecessary mileage and that will deliver much bigger fuel savings than focusing purely on achieving a 100g/km average. But back to the question - will we see the 100g fleet? For certain types of fleet, I think it’s almost a reality now. And, yes I think we will and the reason I’m optimistic is because average new car CO2 emissions are heading inexorably downwards and will continue to do so as European regulations tighten. But my advice would be don’t pursue the 100g/km target too single-mindedly. It’s horses-for-courses; electric vehicles for mainly urban use, hybrids for mixed operations while not ruling out the trusty low carbon diesel for your motorway cruisers.

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COVER STORY Sub-100g/km Fleet

MPV: Toyota Prius+ (99g/km) Sub-120g/km MPVs, with five and seven seats, are beginning to enter the market with Renault’s Grand Scenic leading the segment’s conventionally-powered models with the 105g/km dCi 110 diesel launching in the 2012 model. But it’s Toyota which will push the segment forward the most this year with the Prius+. Part of the carmaker’s expanding hybrid family, it’s the first time a seven-seat car will be offered with emissions of under 100g/km, meaning MPV practicality no longer has to add thirsty vehicles to the fleet. OTHER OPTIONS • • • • •

Ford C-Max 1.6 TDCi (119g/km) Renault Grand Scenic dCi 110 (105g/km) SEAT Altea XL Ecomotive (119g/km) Vauxhall Meriva 1.3 CDTi Ecoflex (119g/km) Vauxhall Zafira Tourer ES 2.0 CDTi (119g/km)

Crossover/small SUV: Mazda CX-5 (119g/km) Even the traditional “gas guzzler” SUV segment is no longer a drain on the average CO2 figure, with crossovers now offering car-like fuel economy in two-wheel drive form and Peugeot’s 3008 HYbrid4 offering the only four wheel drive option under 120g/km. The most innovative here, though, is the forthcoming Mazda CX-5. Featuring the new Skyactiv Technology package, the body and chassis structure are engineered to be as light as possible, while the manual gearbox and 2.2-litre diesel engine return 119g/km and Euro 6 compliance without exhaust after-treatment – unique in this segment. OTHER OPTIONS • • • •

BMW X1 sDrive20d EfficientDynamics (119g/km) Nissan Qashqai 1.6 dCi Start/Stop (119g/km) Peugeot 3008 HYbrid4 (99-104g/km) Škoda Yeti Greenline (119g/km)

HOW LOW CAN YOU GO? THE SUB-50G/KM FLEET Electromobility has introduced the possibility to cut CO2 emissions still further, with a handful of models now coming in under 50g/km. But is it possible to construct a fleet from the lowest emitting vehicles? CITY CARS Traditionally a bread and butter segment for electric cars, the city car segment has near mechanically identical battery-electric offerings from Mitsubishi, Citroën and Peugeot. Renault’s futuristic Twizy twoseater will also launch this summer. SUPERMINIS A production version of the battery-electric Renault ZOE will launch this summer, and is designed from the ground up to run on electricity. It offers a 100-mile range and 80bhp electric motor, while the carmaker’s battery leasing scheme is claimed to result in equivalent pricing to a conventional diesel car. LOWER MEDIUM Nissan’s award-winning LEAF has proved electric cars don’t have to be small, and will be joined by the electric Renault Fluence and Ford Focus within 18 months. Those seeking long-distance cruising ability will get the option of the 40g/km Vauxhall Ampera and Chevrolet Volt, which offer a 50-mile range and petrol engine to top up battery power. Toyota’s Plug-in Prius also falls just under the 50g/km target. UPPER MEDIUM The Volvo V60 Plug-in Hybrid offers a unique proposition in the upper medium segment, combining power and luxury with 49g/km CO2 emissions and 148mpg fuel economy thanks to its 30-mile electric range. But that technology doesn’t come cheap.

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NAVARA

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nissan.co.uk/navara

*BUSINESS USERS ONLY. Contract Hire is available subject to status and conditions on eligible vehicles registered between 03/01/2012 and 31/03/2012. Guarantees and Indemnities may be required. Example based on 12+35 profile, 10,000 miles per annum on a non-maintained contract. Further charges may be made subject to mileage and condition. Excess mileage will be charged at 6.4 pence per mile (excluding VAT). RAC cover, vehicle excise duty and 3 year/60,000 mile warranty included. Contract Hire Finance provided by Nissan Business Finance, a trading style of Arval UK Limited, Windmill Hill, Swindon SN5 6PE. †550Nm of torque refers to Outlaw model only, available from £29,937 exc. VAT. Models shown are for illustration purposes only. Models subject to availability. Prices correct at the time of going to print. Nissan Motor (GB) Limited, The Rivers Office Park, Denham Way, Rickmansworth, Hertfordshire WD3 9YS.


sponsored by

in association with

driving towards lower fleet emissions The Electric Vehicle & Low CO2 Fleet Show 2012 is a one-day event at brand new Silverstone Wing, providing fleet decision makers and other fleet industry executives with information, advice and guidance on low emission strategies. Organised by Fleet World magazine in association with the British Vehicle Rental & Leasing Association, the event provides a platform from which motor manufacturers, fleet service companies, infrastructure suppliers and others can explain their products, services and emission control initiatives.

• • •

• CASE STUDY - De-carbonising the fleet >

Director, Willmott Dixon • Future developments in electric vehicle

drivetrain and battery technology > Alex Stewart, Senior Consultant, Element Energy.

• Test drive the latest petrol-electric hybrids, diesel-electric

SEMINAR PROGRAMME costs and operational requirements of electric vehicles > Paul Nieuwenhuis, Director, Centre for Automotive Industry Research, Cardiff University

• Operating

hybrids, fuel-cell hybrids and electric range-extenders, as well as the latest low-emission petrol and diesel engine vehicles Discuss future drivetrain strategies with leading fleet motor manufacturers Find out more about low-emission light commercial vehicles Talk to charging point suppliers and infrastructure providers Discuss low-carbon vehicle supply with leasing providers

• Developing the business case for EVs >

Nigel Underdown, Head of Transport, EST and Robin Haycock from The Climate Group. • Question

Time-style debate > panel discussion chaired by BVRLA Chief Executive, John Lewis.

WHERE & WHEN? THE SILVERSTONE WING WEDNESDAY 18 TH APRIL 2012


DIARY DATE 18/4/2012 RIDE & DRIVE Test driving of electric, hybrid and other low-CO2 vehicles will take place on the Stowe Circuit, a separate infield circuit with its own facilities situated a few minutes away from the Silverstone Wing. There will be provision for visitors to book provisional test drives in advance direct with the relevant motor manufacturer, though all bookings will be at the manufacturer’s discretion.

for more information and to register... evfleetshow.co.uk

COPSE CORNER

SILVERSTONE THE STOWE CIRCUIT

WOODCOTE CORNER

NATIONAL PITS STRAIGHT BROOKLANDS CORNER

WELLINGTON STRAIGHT LUFFIELD CORNER

MAGGOTTS CORNER AINTREE CORNER VILLAGE CORNER BECKETTS CORNER

ABBEY INTERNATIONAL PITS STRAIGHT

“The Show will feature a wide range of low-emission vehicles which will be available for test driving on the Stowe Circuit.”

THE LOOP FARM CURVE

CHAPEL CURVE

HANGAR STRAIGHT CLUB CORNER

VALE

STOWE CORNER

EXHIBITION SPACE For further information on exhibiting at the Show please visit the 'EXHIBITORS' section of the website or contact anne@fleetworldgroup.co.uk

t +44 (0)1727 739160 e evfleetshow@fleetworldgroup.co.uk w evfleetshow.co.uk


MARKET OVERVIEW Telematics and Tracking

Aeromark

Ctrack

Aeromark Optimatics is the UK’s leading fully integrated telematics, scheduling, service management and optimisation system used by many service and logistics companies. Optimatics technology is manufactured in the UK by Aeromark and offers a complete solution including call centre and PDA software, dynamic planning, vehicle tracking and KPI analysis. Delivered as a Software as a Service (SaaS) single platform and integrated by design, Optimatics is modular and offers a seamless roadmap for future requirements. Based on a continuous improvement programme and agile platform the solution supports business changes in-line with customer demand and unlike many systems, software upgrades are included.

Ctrack provides advanced vehicle and plant tracking and telemetry solutions that deliver immediate benefits and financial returns resulting from the ability to better manage a fleet operation. These tracking tools provide added visibility and control that comes from knowing the exact locations and status of vehicles in real-time. Suitable for fleets of all sizes, Ctrack delivers real advantage by reducing fuel consumption; validating overtime claims; eliminating unauthorised out-of-hours vehicle use; monitoring driver behaviour; achieving more jobs per employee; enhancing service levels; supporting environmental compliance; and increasing protection against vehicle theft. Ctrack is part of DigiCore Holdings, a global company listed on the Johannesburg Stock Exchange with more than 570,000 tracking systems fitted in 50 countries across five continents.

Contact: Caroline Russon sales@aeromark.co.uk

Tel: 0845 330 5757 www.aeromark.co.uk

Contact: Sapna Vadgama sapna.vadgama@ctrack.co.uk

Tel: 01932 358 529 www.ctrack.co.uk

Quartix Founded in 2001, Quartix has grown to become one of the UK’s most respected vehicle tracking providers. Today, more than 3,500 customers across a wide range of sectors – including government organisations, housing associations, construction, hospital trusts, the emergency services, SMEs and large British brands – use the online service, with the company’s unique, own-design tracking unit. Quartix currently install over 2,000 systems per month in the UK and Mainland Europe. The comprehensive Quartix system is available through simple 3 month and 12 month contract options together with outright purchase options. With over 50% of sales coming from repeat business and customer referrals the Quartix name is synonymous with quality, reliability and service.

Contact: Nia Williams Nia.Williams@quartix.net

Satmo Award winning Satmo vehicle tracking has been specifically developed in the UK for anyone wanting to gain back control of their fleet using GPS to track the vehicles position. Satmo believe in the importance of live tracking, and have combined every aspect of today’s demanding competitive market to give our customers the edge against their competition. From dynamic job reports to real time delivery scheduling, Satmo offers a true fleet management solution tailormade for any company. We have recently formed a strategic partnership with ‘whatgas.com’ to be able to identify the cheapest fuel within a 5 mile radius of a vehicle at just a click of a button through our tracking site. This feature is so unique to the tracking industry that we have a patent pending on the software.

Contact: Fiona Vant Tel: 01274 587748 sales@satmo.co.uk www.satmo.co.uk

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Tel: 0870 0136663 www.quartix.net

Navman Wireless Navman Wireless ignited the vehicle tracking revolution by making real time fleet monitoring accessible to all using the power of the internet and GPRS, then reinvented the industry with the game changing M-Nav, the industry¹s first combined fleet tracking, messaging and satellite navigation system. Navman Wireless continues to lead the vehicle tracking evolution with its Online AVL vehicle tracking technology, has reinvented driver performance monitoring with its CANbus Engine Management system and has recently introduced Essential, Fleet+ and Complete, products defining the future of tracking.

Contact: Sales Team sales@navmanwireless.co.uk

CMS Supatrak

Tel: 0845 521 1133 www.navmanwireless.co.uk

Telogis

CMS SupaTrak provides real time vehicle tracking, mobile working and fuel saving solutions to help organisations reduce their operating costs, lower their carbon emissions and promote safer driving. All our solutions are web based, allowing our customers to log into their account from anywhere and at any time and the reporting suite enables our customers to access their fleet information on demand or schedule reports to be run automatically. Established in 1993, CMS SupaTrak has developed and delivered solutions across all sectors,including Transport and Logistics, Service, Local Authority, Waste Management and Passenger Transport. We have considerable fleet expertise with sector specific solutions deployed across many blue chip companies including Veolia, Yusen Logistics, Biffa, Kier and SITA UK.

Telogis® is the premium provider of Location-Based-Services to enterprises across the globe. Telogis’ scalable, Software as a Service (“SaaS”) platform helps enterprises, business owners and fleet managers optimise business operations and manage their global workforce effectively through GPS location technology. Telogis solutions enable companies to maximise the efficiency of their mobile assets through industryleading tracking and scheduling applications, allowing both mobile and officebased staff to streamline operations, maximise productivity and minimise fuel and staffing costs. Telogis’ products and services are used and distributed in over 60 countries worldwide. To learn more visit www.telogis.com.

Contact: Alex Harper Tel: 08444 774 870 sales@supatrak.com www.supatrak.com

Contact: Sergio Barata Tel: +44 (0) 1344 747638 Sergio.Barata@Telogis.com www.Telogis.co.uk


Is it possible to export data from your system to other back office systems?

Can the device installed in the vehicle be updated ‘over the air’?

Do you provide web services for third party integration?

What is the minimum lease/contract period for the device installed in the vehicle? (in months)

What is the minimum airtime/communications period? (in months)

Ctrack

Can the police locate the stolen vehicle using your system?

Crystal Ball

Does your system have a stolen vehicle location facility?

Aeromark Ltd

Can the system recognise and report on different drivers of the vehicle?

Service unavailable

Does the system accept inputs from ancillary equipment such as panic alarms?

-

Does your system have the facility to send alerts by text message in the event of a security alert?

Service provided

Does your system allow the geographical “ring fencing” of particular locations?

Is there any software or mapping required on the customers PC?

Key to services

Is your system internet based?

FLEETW RLD

No

36

36

No

-

-

3

3

Server & internet option

Yes

-

Flexible

Flexible

Enigma Vehicle Systems

No

3

3

Navman Wireless

Yes

12

12

Quartix Limited

No

3

1

Satmo

No

12

12

CMS Supatrak

Yes

3

3

Telogis

Yes

12

Flexible

TomTom Business Solutions

No

12

24

TRACKER Network UK Limited

No

3

3

Trakm8

No

-

1

1

Trimble MRM

No

-

12

12

TomTom Business Solutions TomTom Business Solutions is the fastest growing telematics company in Europe. It helps over 15,000 customers with over 185,000 vehicles maximise efficiency and improve profit margins in 22 countries across the globe. So whether you have trucks, vans or cars there is an affordable solution for you. TomTom Business Solutions helps maintain control of vehicles and drivers, whilst cutting cost, improving productivity, boosting customer service, complying with legislation and reducing carbon footprint through driver behaviour monitoring. This helps you run greener, safer and more efficient vehicles. With job dispatch and smart technology such as HD traffic we get the right driver to the right job on time, ensuring they are safe and driving efficiently. The insight and visibility enabled by TomTom’s technology has an impact on productivity and the bottom line, which means a great return on investment.

Contact: Sales Team Tel: 0207 2559774 uk.business@tomtom.com www.tomtom.com/business

TRACKER Network UK Limited

Trakm8

TRACKER is the UK's number one supplier of vehicle tracking services, with over a million systems installed to date. Established in 1993, TRACKER’s award winning fleet tracking systems help companies meet the challenges facing them today. TRACKER Fleet incorporates groundbreaking, patented technology, providing important cost-saving benefits, not just for the short-term by identifying fuel inefficiency, but also longer-term by providing valuable insights into driver and business behaviour. TRACKER remains committed to developing solutions that anticipate and respond to the changing dynamics of the marketplace. Our long history in supplying telematics means businesses can be assured we will be here tomorrow.

Trakm8 designs and manufactures complete fleet management solutions and pride themselves on their ability to tailor products precisely to a customer’s fleet management, reporting or informational requirement. One of Trakm8’s key features is their ability to connect to the vehicle CANbus. This enables a wide range of accurate information to be extracted such as fuel usage, CO2 emissions and driver behaviour. Trakm8 works with companies to assist with fuel saving and optimisation strategies by using their latest technology and reporting methods to aid fleet managers in promoting economic, fuel efficient and safe driving practices. Trakm8 have proven results with many prolific customers in this area.

Contact: TRACKER Central Sales Team Tel: 01895 455045 enquiries@TRACKER.co.uk www.TRACKER.co.uk

Contact: Paul Wilson Tel: 01747 858 444 info@trakm8.com www.trakm8.com

February 2012

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INTERVIEW Steve Robertson SEAT

In the driving seat SEAT’s new Head of Fleet and Business Sales, Steve Robertson, tells Steve Moody the firm has ambitious growth plans. It’s a good time to go and have a chat with people that run visits a dealer, the Fleet Customer Commitment sets out exactly fleet departments at car manufacturers. With retail sales how customers should expect to be dealt with. depressed, almost every brand is throwing its weight behind its As part of the commitment, the firm is introducing a new corporate sales teams, and that means more resource, more pricing structure to help fleet operators stay in control of funding, more people. maintenance budgeting, where there will be maximum labour Of course, some have been doing this for a while, not just in the rates, plus a price guarantee on costs such as oil and MoTs. last few months, with SEAT being a particular case in point. A And SEAT now also boasts a specialist Aftersales team couple of years ago, its then-fleet boss Nick Andrews set in place dedicated to fleet customers. Those firms operating a major a series of changes that would turn the Spanish brand from one fleet that includes SEAT can deal with Aftersales account heavily dependent on retail to one with a more balanced portfolio. manager Perry Clarke who provides a link direct to SEAT head Having left last year to take on the Mercedes-Benz job, office and gives advice, support and assistance on all aspects of Andrews was swiftly replaced by Steve Robertson who spent six servicing and maintenance. years as head of marketing at SEAT and cut his teeth as an area Robertson explains the thinking behind the Fleet Customer fleet sales manger for Rover years ago, making him seem an easy Commitment: ‘I firmly believe that this excellent new 12-point fit for the job. charter reinforces our growing reputation as a company that is, Robertson’s task is less simple though, because SEAT has set simply, easy to do business with. itself some very stringent goals, which at its heart includes the ‘Making sure we treat our fleet customers as individuals, and target of being a “fleet manufacturer of choice”. tailoring our service and support to meet their specific needs, is It sounds a nebulous concept, but Robertson is quick to flesh vital if we are to build on our successful fleet performance thus far. out what will constitute succeeding in that endeavour. ‘I’m convinced the new Fleet Customer Commitment is ‘We had a record market share last year selling 36,000 units another important step for SEAT. in total, with fleet accounting for more than half. That’s three ‘We’ve had some significant wins over the past year or so, years growth in succession and we are up 21% with a 1.9% with the likes of Centrica and Babcock, but we need to improve share in all fleet channels,’ he says. our visibility still further, and so we’ve now also got a fleet ‘We’re looking to grow in all fleet channels again, and as part of business centre, based in Swindon that provide back-up for the that we’ve doubled the size of the fleet team, which I think shows fleet team. our commitment to the fleet market. ‘But I want to see our team out there in their areas talking to ‘But what it really comes down to is that we’re looking to create fleets: it’s their personal responsibility to seek out the a point of difference, so that when people deal with SEAT they opportunities and see clients as often as needed. are getting truly exceptional service. One thing that businesses As with any Volkswagen Group brand, the products keep really don’t want is hassle: they want an efficient, useful rolling in too. And these new cars will give SEAT even more relationship with their suppliers that helps them to do business differentiation from Audi, Skoda and Volkswagen. better. If there are problems, then it is up to us to come up with Next up is the new Ibiza, or at least a significantly reworked solutions, react quickly, respond to queries and get proposals to version of the current one, while Mii is being introduced too. customers fast, and ensure we aren’t tied up in bureaucracy.’ Later in the year, the new Leon might even get a motor show Easy to say, harder to do, but a recent announcement perhaps airing as well. explains more clearly how this might work at practical level. The Exeo has been a real success for the brand Robertson adds. A new programme ensures every Fleet Service Partner in ‘It has given us an offering in a sector we weren’t in and it the Spanish brand’s has allowed us to go to fleets we wouldn’t SEAT’s Business Sales Team network of UK dealers have otherwise been able to talk to, adheres to 12 fleet because we know have an offering in each customer service and of the key sectors. repair standards. ‘We need to position SEAT as a stand From providing clear, alone brand in the Volkswagen Group. upfront pricing to SEAT’s brand values are design driven, and delivering guaranteed that what sets us apart from other VW response times and Group brands, as our customers tend to be even ensuring each younger. We have significant growth fleet customer vehicle ambitions. With our current market share gets a free wash and at 2%, that means there’s plenty of vacuum each time it business to go at out there.’

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“Making sure we treat our fleet customers as individuals, and tailoring our service and support to meet their specific needs, is vital�

February 2012

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S E LLI N G

Family and luxury cars making strong returns Family cars and top end luxury models have been making strong returns so far this year reports online auction and remarketing company G3 remarketing. However, the widely expected trend in downsizing is continuing but according to G3 it is not so much the cost of motoring, but releasing cash that is driving the change. Tom Marley, Head of Operations for G3 remarketing said: ‘We are currently experiencing the highest unemployment since 1996. In real terms, income per household dropped 3.5% (average of 1.4% wage increases with a CPI of 5%). It therefore could be argued that the contributing factor for the downsizing is the rise in cost of motoring. Or is it the fact that people are downsizing to realise cash. The harsh reality is that a car for most households is a necessity rather than a luxury item. ‘With Christmas having come and gone and credit card debt rising and becoming a regular way/only option to make mortgage payments, then is downsizing of their car the only real option? It would appear so.’ Sales of smaller family or cars with better mpg are extremely strong, more so this year than many others we have experienced says G3 remarketing, which predicts this will be the case for the majority of the year with prices staying strong in the auction business. In what could be argued as a contrast to this Marley said there is still a strong market for luxury used vehicles in affluent households. G3 believe this is due to ‘keeping up with the Joneses’ – an important factor, and they have the disposable income to make the large purchases.

Premium brands still performing Premium brand cars and ready-to-retail stock are the highlights in auction halls during the first weeks of 2012. Used car experts VIPDATA said there are ‘lots of cars to choose from, but that plenty of the offerings are substandard. A dwindling number of cars that require no preparation are the ones in demand and values are strong. ‘Whilst concentrating on restocking their empty forecourts, dealers are paying high prices for the relatively small number of ready-to-retail cars out there.’ It said, however, there are some buyers trying to avoid the inflated prices by buying a car with a fault and taking a risk with it: ‘An engine management light or a damaged wing could spell trouble. On the other hand it could be the way to make a serious profit with a quick fix.‘ Premium brand cars are still selling well, VIPDATA added: ‘You would think that image and snobbery would be taking a back seat in these times of austerity? Not with the great British used car buying public. Even if we are struggling financially, we are not prepared to show this to the neighbours! The prestige side of mid and large cars such as 3 and 5 Series and A4 and A6 are currently enjoying renewed success as a used car. They must be the right colour, specification and have a full dealer service history to make top money though. A Mondeo or Insignia isn’t creating such interest even when no preparation is needed.’ Values remain fairly static Audi A6 Avant throughout most of the sectors, VIPDATA noted, but added: ‘Down are the usual raft of undesirables such as old generation Citroen C5, Peugeot 406/407, Renault Laguna and most of the oldschool Kia/Hyundai or anything that is expensive to tax.’

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HOT... 4x4s It has snowed, and so buyers thoughts turn to driving all four of their wheels again.

Prestige saloons and hatchbacks Do used BMW and Audi executive offerings ever lose popularity? Even austerity can’t dampen demand.

Superminis Despite hugely increased volumes of them hitting the market, prices are up 15% on this time last year, says Manheim.

NOT... February The new year optimism has worn off, and everyone is holding off for the new plate activity in March.

Consumer demand Used car buyers are still cautious about parting with their money, but fortunately prices are being kept high by low stock levels.

Mondeo/Insignia The “squeezed middle” in motoring terms are the big volume D-sector cars such as Mondeo and Insignia, which continue to have it tough.


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FLEET UPDATE

This month New Jag, new Kia, new Volkswagen and new baby added to the FW Fleet.

Audi A6 Avant 2.0 TDI SE manual

Kia Optima 2 Tech 1.7 CRDi

It’s snowed! At last, I thought as I drew back the curtains, my family of winter tyred cars can take to the deep and crisp and even roads and I can sail past all those slipping stragglers in their summer rubber. Unfortunately, the snow proved to be a dusting, long gone on the tarmac, and so the A6 Avant, and XC90 have yet to hit the white stuff in their grippy tyres. But even so, with temperatures peaking at just above zero, it has been noticeable how well the Continentals on the Volvo perform. It’s a car that rips tyres up and chews them out, but with the Contis there’s a lot less wheelspin when pulling away from standstill with the wheel turned. The Audi is on Dunlops, which are less impressive. Once they warm up, a squirminess is noticeable, especially on motorways. It’s not enough to make it feel unnerving, but the A6 doesn’t feel as planted as it did on its summer tyres. Otherwise, the A6 is chugging along nicely without being spectacularly great fun to live with. It looks great, and the space in the rear is larger than the old one, a fact I have noticed because my kids struggle to kick the rear of my seat, which at least keeps me calmer. That said, if I was choosing one as a company car, I’d have the Multitronic version rather than the manual we have on test. For a paltry uplift in CO2, life is so much easier, and it would have the effect of calming down the infernal stop-start system, which is keener to stop than a 1970s British Leyland workforce, when you’re in first gear at very slow speeds. A few times it has appeared to have stalled while I’m trundling at a couple of miles an hour, only to reignite when it realised we weren’t coming to halt. There’s a solution though: I must drive faster!

The trouble with hotly-anticipated cars is they’re often not quite up to expectations once you actually get behind the wheel. And, having been eager to try Kia’s pin-sharp Optima since I saw the first press photos, and even more so having had a brief drive of the hybrid version in Korea recently, I was expecting big things from our latest long-termer. I’m glad to say it’s held up well. Ours is the mid-spec 2 ”Tech” trim, and comes with all the basic ingredients to make a great fleet workhorse. Satellite navigation, Bluetooth, cruise control and comfortable heated half-leather seats are all welcome, as is its impressive Infinity audio system. The styling moves things on from the slick Sportage, with neat details like the orange slice-like reflectors in the headlamps and rear lights that follow the top of the boot, while the window line gives it a silhouette similar to a stretched coupe. From the indistinctive Magentis, the Kia’s D-segment offering has become one of the prettiest in its class. Impressed with the exterior, I was glad to find a similarly well styled interior with a notable lack of shiny Korean plastics. Ignoring the slightly baggy seat bolster leather and chrome door handles, the Optima is on a par with European rivals. The main surprise is finding a narrow saloon boot opening where most would offer a much more practical hatchback. But overall impressions are positive. The Optima isn’t quite up to the Mondeo’s driving experience, but its frugal 1.7-litre diesel is lively in ways that belie its on-paper performance figures and the styling makes most of its rivals look a bit staid. Kia deserves to do just as well with this as the Sportage, provided it can get noticed against more established rivals.

Alex Grant

Steve Moody OTR PRICE £32,100 POWER 175bhp @ 4,200rpm

OTR PRICE £21,695 POWER 134bhp @ 4,000rpm

TORQUE 280lb.ft @ 1,750-2,500rpm 0-62MPH 9.0 seconds

TORQUE 239lb.ft @ 2,000-2,500rpm 0-62MPH 10.2 seconds

TOP SPEED 138mph COMBINED MPG 56.5mpg

TOP SPEED 125mph COMBINED MPG 57.6mpg

CO2 132g/km (19% BiK)

CO2 128g/km (19% BiK)

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Jaguar XF 2.2 Diesel Portfolio

Before launching into my first report on our new longtermer I have to come clean and admit that I’ve always had a soft spot for Jaguar cars. Whether it’s because Inspector Morse (my all-time favourite detective) drove one, I’m not sure. Maybe it’s just the great British heritage that I can’t overcome. Either way, when Fleet World editor Steve Moody mentioned that we had a new XF 2.2D coming I wasn’t slow in stepping forward. The XF made a huge impression when it first arrived in concept form around five years ago, but its 3.0-litre diesel engine was unable to challenge smaller, highly acclaimed units from Mercedes, BMW and Audi and in many fleets the XF was rather left on the shelf. However, the arrival of a 188bhp, 2.2-litre diesel engine has put a new spring in the cat’s step and if our first impressions are anything to go by, those whose company car entitlement stretches this far are going to be quite enchanted by the prospect. A £43,050 price tag for our long-termer (plus nearly £4,000 of extras) and a 23% BIK rating in 2012-13 mean the XF 2.2D is scarcely a cheap option, but I suspect that most executives will feel it is money well spent when they get behind the wheel. The cabin is beautifully finished and while the instrument and control layout is not the most intuitive in the world, it is soon mastered and the newcomer feels at home behind the wheel. We’ve not had the car long enough to make a formal pronouncement, but first impressions suggest that this is going to be a hard one to give back.

Ford Mondeo Zetec 1.6 EcoBoost If familiarity breeds contempt, then living with the Mondeo has not been the source of much discontent, so far. It is undoubtedly a large car, but with parking sensors front and rear, as well as good heated and electrically adjustable door mirrors, placing the car and manoeuvring it is not that difficult. Tight manoeuvring on my drive is fairly commonplace, but has not defeated me yet. Surprisingly, the most irritating thing the Mondeo has to offer is the difficulty of finding the steering/ignition lock in the dark. I’ve driven plenty of cars with an illuminated ring around the lock and owned a first generation Mondeo estate, which had a useful torch built into the key fob, in the days before a button on the fob unlocked the doors. But for a £20,000-plus car to leave its driver fumbling in the dark to find the ignition lock doesn’t seem well thought out, particularly as it has ”puddle lamps” set into the door mirrors to light the way to the car. Is it a triumph of accountancy over function? I wasn’t at the Detroit Show in January for the unveiling of the new Ford Fusion – which will be the next incarnation of the Mondeo when it arrives here, probably next year. It will be interesting to see if Ford has made the lock any easier to find after sunset. Otherwise, I always look forward to getting behind the wheel. Cruise control and speed limiter do their bit to keep me out of court, the excellent sat nav guides me where I want to go, with a choice of routes, and the ride and handling are excellent.

John Kendall

Ross Durkin OTR PRICE £43,050 POWER 188bhp @ 3500rpm

OTR PRICE £20,845 POWER 160bhp @ 5,750rpm

TORQUE 332lb.ft @ 2000rpm 0-62MPH 8.0 seconds

TORQUE 117lb.ft @ 4,000rpm 0-62MPH 9.6 seconds

TOP SPEED 140mph COMBINED MPG 52.3mpg

TOP SPEED 130mph COMBINED MPG 44.1mpg

CO2 149g/km (23% BIK in 2012-13)

CO2 149g/km (19% BiK)

February 2012

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FLEET UPDATE

Renault Grand Scenic dCi 110 EDC Auto With a new member of the Wallis household having arrived since the last issue of Fleet World, the Grand Scenic is now really coming into its own, providing the perfect transport for a growing family. And with further trips around the country planned so that family and friends can meet the new arrival, its driveability and adaptability will be further put to the test in the coming weeks. However, just on paper alone its practical skills are pronounced. Apparently there’s a total of 40 stowage points around the cabin and while I’ve not exactly stopped and counted them, you do seem to discover a new cubby everywhere you look. Thanks to the new arrival, the chilled glovebox could find a new vocation for housing baby milk and the underseat drawers are likely to become homes for the usual infant paraphernalia. Meanwhile the CDs are fast being turfed out of the roomy sliding centre stack to make way for other, more essential items and the 702 litres of boot space are being called into use for our versatile but voluminous pram and other essential baggage. One thing that I’m not finding so useful though is the keycard – that’s not due to any inherent problems with the Renault one, but rather due to the fact that I’m far happier with a conventional key. The automatic unlocking only works if you’ve not manually plipped it on leaving the vehicle and as a compulsive plipper I’m far too obsessed with security to do that. So I’ve lost track of the times I’ve stood outside the Grand Scenic, particularly in car parks, madly rooting through my bag and pockets to find the keycard, not helped by the fact that it’s black and seems to have chameleon-like abilities. I dare say there’s a fair amount of ”baby brain” involved in that though.

Natalie Wallis

Volkswagen Tiguan Sport 2.0 TDi

Part of the trick fuel-saving BlueMotion technology onboard our Tiguan Sport 2.0 TDI is the automatic stop-start function, and this month’s feature on Mayor Boris wanting to charge for over-idling (see page 24) has made me study the system’s habits and its benefits like never before. Having subjected the car to more stationary urban commuting than I’d have liked, I feel pretty well placed to gauge when the stop-start wants to stop, when it wants to start up again, and when it’s just not interested at all. As Alex Grant mentioned in the feature (you really should have read it!) all sorts of parameters have to be met. But you won’t often know what they are: while it is pretty satisfying sitting nose-to-tail with your engine off, and feeling ecosmug about driving a chunky, capable, frugal 4x4 in an urban environment, it’s also quite frustrating when the engine then cuts in again, for various undefined reasons. In the Tiguan’s defence, all stop-start systems perform in a similar way, and the mitigating circumstances have to include the near baltic conditions the UK has suffered of late, where a heater fed by a warm engine is essential. Even so, despite the BiK-friendly 5g/km CO2 reduction auto stop-start gives just by being there, I’m not sure how much fuel it would save on a daily basis. It can also be slightly counter-intuitive to economy-driving techniques which rely on maintaining momentum, rather than aiming to stop as soon as possible, so you can go into sleep mode. Talking of economy though, the Tiguan’s impressive 53.3mpg combined figure is certainly possible, though achieving this requires a little concentration and perhaps less than the five inches of snow we encountered recently. The Tiguan shone here, as any self-respecting 4x4 SUV should, and adds refinement, comfort, a sensibly-shaped practical boot and a healthy dose of understatement to the mix.

Luke Wikner OTR PRICE £22,300 POWER 108bhp @ 4,000rpm

OTR PRICE £24,370 POWER 138bhp @ 4,200rpm

TORQUE 177lb.ft @ 1,750rpm 0-62MPH 13.3 seconds

TORQUE 236lb.ft @ 1,750-2,500rpm 0-62MPH 10.0 seconds

TOP SPEED 112mph COMBINED MPG 60.1mpg

TOP SPEED 120mph COMBINED MPG 53.3mpg

CO2 124g/km (18% BiK)

CO2 139g/km (21% BiK)

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FUEL MANAGEMENT

Fuel for thought... Keith Allen Keith Allen, Managing Director of ALD Automotive, considers the effect on fleet budgets of rising fuel costs, and the risks faced by those who let them go unchecked.

“ Claims for journeys that don’t qualify as business mileage are not unknown”

t 0870 0011181 e ukinfo@aldautomotive.com w www.aldautomotive.co.uk

advertisement feature

According to the AA’s latest fuel report, average petrol and diesel prices are within a whisker of the record prices recorded last May and if current unrest in the Middle East continues there are few who would bet against a year of further price hikes and unbudgeted costs for fleet operators and company car drivers alike. Fuel is widely accepted as the second highest cost for fleets after depreciation. However, whereas in most organisations there is little that individual drivers can do to affect the resale value of their car beyond keeping it in good condition and having it regularly serviced, the same cannot be said of company fuel bills. In the case of a company paying for all fuel through a fuel card system, the bill for a company car driver covering 30,000 business miles a year at 45mpg will be £4,306 (at £1.42 per litre). The same driver achieving just 40mpg would cost their employer an extra £539 – more than £100 for each mile-per-gallon. Conversely, achieving 50mpg in the same car would save the employer the same £539 a year. Purchasing fuel at more expensive outlets such as motorway services could easily add a further £200 a year. Fleets operating a “pay-and-reclaim” system based on fixed mileage rates protect themselves from the vagaries of drivers with a heavy right foot, but then face the task of checking the accuracy of business mileage claims. Few indeed are the company reps who underestimate their business mileage, while

claims for journeys that don’t qualify as business mileage are not unknown. But possibly the greatest risk – in the form of a visit from the local tax inspector – is that faced by fleets with poor internal management systems. Accurate recording of individual journey start and finish points and periodic checking by management of both the mileage claimed and the validity of the trip are essential if an organisation is to pass inspection. And the industry abounds with stories of the penalties faced by those who have failed. Fortunately, many of the UK’s larger fleets either already have a robust management system in place, or have plans to introduce one in the near future. A survey of UK Financial Directors carried out by YouGov on behalf of ALD Automotive reveals that almost two thirds of UK businesses employing between 500 and 999 employees will be reviewing their fuel reclaims process in 2012. These latest findings suggest that companies are now taking the threat of prosecution by HMRC more seriously and are recognising that inaccurate or fraudulent business mileage claims can have a major impact on cost control and fleet budgeting. With HMRC cracking down on companies who aren’t able to provide auditable records it’s in the interest of every business to ensure that employees driving on work-related journeys file accurate mileage reports and appropriate online systems are put in place to manage this area. Not only will it reduce the risk of the employer and employee being liable to action, but experience also suggests that significant savings can also be achieved in fuel cost. For organisations looking to mitigate their risk, it is recommended that they should have a robust process in place, and telematics is one such solution available to fleet managers. ALD’s award-winning, ProFleet2 service automatically records all business journey data online, with drivers no longer needing to fill out individual mileage logs, ensuring complete accuracy of recorded mileage.

February 2012

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FLEETW RLD

SUPPLIER DIRECTORY

AUCTIONS & REMARKETING

ACCIDENT MANAGEMENT

RISK MANAGEMENT

DAILY RENTAL

FLEET MANAGEMENT SOFTWARE

BCA Tel: 0845 600 66 44 www.british-car-auctions.co.uk

Total Accident Management Tel: 0845 078 4157 www.totalaccman.co.uk

IAM Drive & Survive Tel: 0870 120 2910 www.iamdriveandsurvive.co.uk

Enterprise Rent-A-Car Tel: 01784 221 300 www.enterprise.co.uk

Bynx Tel: 01789 471600 www.bynx.com

VEHICLE DATA

ELECTRIC VEHICLES

International Decision Systems Tel: 01256 302 000 www.idsdata.co.uk

EV FLEET WORLD Tel: 01727 739160 www.evfleetworld.co.uk

RAC Risk Management Tel: 0870 606 2606 www.racfleetriskmanagement.co.uk

Budget Rent-a-Car Tel: 0844 5338 08701544 56 56 56 www.budget.co.uk

Chevin Fleet Solutions Tel: 0800 093 6606 www.chevinfleet.co.uk

Roadmarque Tel: 0845 053 0331 www.roadmarque.com

Alliance Asset Management plc Tel: 01480 475000 www.fleetcentre.com

Enterprise Software Tel: 0161 925 2400 www.essl.co.uk

DRIVER LICENCE CHECKING

FAST-FITS & TYRES

Jaama Tel: 0844 8484 333 www.jaama.co.uk

ATS Euromaster Tel: 0121 325 8842 www.atseuromaster.co.uk

Peak Performance Tel: 01246 244200 www.peakperformance.net

LeasePlan UK Ltd Tel: 0844 493 5810 www.leaseplan.co.uk

Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk

Full listings online at

CBVC Vehicle Management Tel: 01283 509177 www.cbvc.co.uk

fleetworldgroup.co.uk

Arnold Clark Vehicle Management

Tel: 0845 603 4590 www.acvm.co.uk

Drive Software Solutions Tel: 01438 317731 www.drivesoftwaresolutions.com

www.whiteclarkegroup.com

CONTRACT HIRE, LEASING & FINANCE Alphabet (GB) Limited Tel: 0870 50 50 100 www.alphabet.co.uk

White Clarke Automotive Solutions Tel: 0870 787 2211

Cardinus Risk Management Tel: 01733 426015

Arnold Clark Car and Van Rental Tel: 0845 702 3946

www.cardinusfleet.com

www.arnoldclarkrental.com

cfc solutions Tel: 0121 717 7444 www.cfcsolutions.co.uk

MAC GB Ltd Tel: 01745 828180 www.reduceroadrisk.com

Nexus Vehicle Rental Tel: 01133 460 469 www.nexusrental.co.uk

Mycompanyfleet Tel: 0845 077 7760 www.mycompanyfleet.co.uk

AA DriveTech Tel: 01256 495732

Leasedrive Rental Management Tel: 0844 579 8877 www.leasedrive.com

www.AAdrivetech.com/fleetsafe

White Clarke Group Tel: 01908 576 605 www.whiteclarkegroup.com

DriveTech

Volkswagen Group Leasing Tel: 0870 333 2229 www.volkswagengroupleasing.co.uk

Days Contract Hire Tel: 0845 296 4423 www.dayscontracthire.co.uk

Alliance Asset Management plc Tel: 01480 475000 www.fleetcentre.com

Venson Automotive Solutions Tel: 08444 99 1402 www.venson.com

Professional Driver Services Tel: 0871 200 2217 www.pdsuk.co.uk

Europcar Tel: 01923 811250 www.europcar.co.uk

Jaama Tel: 0844 8484 333 www.jaama.co.uk

For more information, please contact Tracy Howell on 01727 739160 or email tracy@fleetworldgroup.co.uk TELEMATICS & TRACKING

Leasedrive Tel: 01344 466 466 www.leasedrive.com

ALD Automotive Tel: 0870 0011181 www.aldautomotive.co.uk

Full listings online at fleetworldgroup.co.uk

Trakm8 Tel: 01747 858 444 www.trakm8.com

Navman Wireless UK Ltd Tel: 0845 521 1188 www.navmanwireless.co.uk

FUEL MANAGEMENT

50

Esso Fuel Cards Tel: 0800 626 672 www.essocard.com

Shell Fuelcards Tel: 0800 7 31 31 37 www.shell.co.uk/euroshell

BP PLUS Fuel Cards Tel: 0845 603 0723 www.bpplus.co.uk

TomTom Business Solutions Tel: 020 7255 9774 www.tomtom.com/business

Quartix Ltd Tel: 0870 013 6663 www.quartix.net

The Fuelcard Company Tel: 0845 073 0873 www.fuelcards.co.uk

The Fuelcard People Tel: 0844 870 9856 www.fleet-fuelsavings.co.uk

TOTALCARD Services Tel: 0800 147 148 www.total.co.uk

TRACKER Network UK Limited Tel: 0845 602 3981 www.TRACKER.co.uk

MiX Telematics Tel: 0121 717 5385 www.mixtelematics.co.uk

fleetworldgroup.co.uk


THE NV400 CHANGING THE FACE OF VANS


EATS MORE DRINKS LESS

The NV400. Nothing else looks like it – or works like it. Three heights and four lengths deliver a range of cargo volumes from 8m3 to 17m3 – enough to hold five Euro pallets. Four gross vehicle weights go from 2.8 to 4.5t. What’s more, it does it all with class-leading running costs – including a combined MPG of 35.4mpg. Are you ready for change?


VAN

fleetworldgroup.co.uk

FLEETW RLD February 2012

Unimog remains one of the ultimate off-road trucks.

February 2012

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A MONTH IN FLEET A skip through the key news and events since the last issue of VAN Fleet World. Edited by John Kendall. Sign up to our FREE digital magazine Fleet World Confidential... visit fleetworldsubscriptions.co.uk

NOT ENOUGH ECO-DRIVING TRAINING FOR FLEETS SAYS TOMTOM According to research commissioned by TomTom Business Solutions most fleets do not offer formal training to improve driving style, despite rising fuel prices. TomTom’s research suggests that 54 per cent of companies have not introduced such training and 35 per cent do not offer fuel saving tips even though 83 per cent think their staff are guilty of speeding. ‘Heavy acceleration, braking and excessive speed have the biggest negative impact on fuel economy and it is important employees are made aware of the knock-on effects caused by bad driving habits’, Giles Margerison, director UK & Ireland for TomTom Business Solutions says.

CONFIDENTIAL

FORD TOPS 2011 LCV MARKET Ford again topped light commercial vehicle registrations under 3,500kg gross vehicle weight last year. The company’s total of 70,226 was up 18.1 per cent on 2010, with a light CV market share of 27.0 per cent for 2011. This means the Transit was the best selling commercial vehicle in the UK for the 46th consecutive year. Transit sales increased from 46,300 in 2010 to 56,363, responsible for 80.3 per cent of Ford light CV sales last year. Vauxhall held on to second place, with 33,514 registrations – up 22.3 per cent on 2010. Volkswagen kept the number three slot, with 31,716 registrations, up 23.36 per cent on 2010, while Mercedes held fourth position, despite a 3.4 per cent fall in registrations to 19,495. Renault moved up to fifth place, with a 12.4 per cent rise to 19,382. A few registrations separated Mercedes, Renault and Peugeot, with Peugeot posting an 18.0 per cent rise to 19,328. Like Mercedes, Citroen took a tumble, registering a 4.4 per cent drop to 17,275. Nissan returned the biggest percentage increase with a 74.4 per cent rise to 10,854. Toyota posted a 26.8 per cent rise to 8,391. In tenth place, Fiat was up 16.5 per cent to 8,130. Overall, light CV sales up to 3,500kg GVW rose 16.7 per cent for the year to 260,153.

CITROEN AND PEUGEOT REVISE LIGHTER RANGES Citroen and Peugeot have introduced revisions to their lighter model ranges; the Citroen Berlingo and Dispatch and Peugeot Partner and Expert. For the Berlingo and Partner, this means a wider grille than before and revised headlamps. Indicators are now external to the headlamp and optional static cornering lights can be fitted to the lower section of the grille, integrated with the fog lamps. HDi and e-HDi models are available with a fixed speed limiter with a choice of four pre-set speeds. HDi 75-powered models offer reduced CO2 emissions, down from 136g/km to 133g/km. HDi 90 models now emit 138g/km instead of 140g/km. The Dispatch and Expert gain similar frontal treatment. Options now include hill-start assist and the same fixed speed limiter as that offered with the smaller models. Grip control, available earlier with the Berlingo and Partner is now also available with Dispatch and Expert, offering four settings to deal with a range of conditions: normal, all-terrain, snow or sand. Tyre pressure monitoring is also available. Aerodynamic panels beneath the van and optimised battery charging help to cut CO2 emissions. 1.6-litre HDi models now emit 177g/km instead of 182g/km and for 2.0-litre 125PS HDi models the reduction is from 179g/km to 168g/km. A six-speed automatic gearbox will be available with the 2.0-litre HDi 163PS engine. The new models are due on sale by the beginning of April.

BERLINGO FIRST AND PARTNER ORIGIN REACH THE END OF THE ROAD The revisions to the Citroen Berlingo and Peugeot Partner have signalled the end of the road for the original models, the Berlingo First and Partner Origin, which continued with a limited range of models after the new Berlingo and Partner models were introduced in 2008. West country-based Mill Autoquip has taken delivery of 21 Citroën Berlingo Firsts, among the last available. They were supplied through Citroen dealers Hawkins Motors and PC Tonkin in Cornwall and will join the company’s 140-strong fleet making up to 50 drops a day from the company’s 17 depots across Cornwall, Devon and Somerset.

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MERCEDES-BENZ ANNOUNCES THE CITAN Mercedes-Benz is entering the UK’s high-cube van market for the first time with an all-new model called the Citan based on the Renault Kangoo platform. It will make its public debut in September at the IAA Hanover Commercial Vehicle Show in Germany and is scheduled to appear in British Mercedes van and truck dealerships during the first quarter of 2013. Citan – the name is apparently derived from a combination of City and Titan – will rival models such as Vauxhall’s new Combo and Citroen’s Berlingo. One of the fruits of a wider joint venture between Daimler, Mercedes-Benz’s parent company, and Renault, Citan employs Renault diesel engines but a cab interior designed by Mercedes. The front of the vehicle is styled differently to Kangoo’s with a different grille, bonnet, bumper and different headlamps, and a number of other components, including selected body components, are unique to Citan. ‘The seats, steering and suspension tuning are all pure Mercedes,’ said worldwide head of Mercedes-Benz’s light commercial vehicle operation, Volker Mornhinweg. Citan will be assembled on the same production line as Kangoo at Renault’s Maubeuge plant in France and will be offered with three overall lengths, one roof height and two gross weights. Using Kangoo’s dimensions as a rough guide – at the time of writing Mercedes was being coy about releasing technical details – that will give it a load cube of up to 4.0m3 and a payload capacity of up to 800kg depending on the model selected. ESP will be fitted as standard across the range. The line-up will include a low-CO2 model marketed under the BlueEfficiency banner and an electric model is in the pipeline. Renault already produces the electric Kangoo Van Z.E while Mercedes has developed the battery-driven Vito E-CELL. Citan will be produced with Renault petrol engines as well as diesels, as a compact crew bus and with rear passenger seating plus a separate cargo area at the back.

VIEW FROM THE TOP Steve Bridge, Mercedes-Benz Mercedes-Benz intends to be number two in the UK van market by 2016 according to van sales and marketing director, Steve Bridge. ‘By that stage we should be no more than 8,000 to 10,000 registrations behind Ford, the market leader,’ he predicted. Achieving that goal will mean catapulting Mercedes from its 2011 number four slot and placing it ahead of Vauxhall and Volkswagen, last year’s number two and number three players respectively, but Bridge remains undaunted by the challenge. Aiding Mercedes-Benz’s sales growth, he pointed out, will be the new Citan high-cube van. ‘We expect it to take 5% of its target market,’ Bridge said. He added that Citan will enable Mercedes to offer a wide range of commercial vehicles, from high-cube vans to 44tonners, to fleet operators who want to do a deal with a single supplier. Around 70% of sales will be to fleets he pre-

dicted, and the ability to satisfy customers who wish to buy on a solus basis with virtually all their requirements – ‘something we’ve not been able to do before,’ he remarked – should boost registrations of Vito and Sprinter. Bridge added, however, that some Vito operators may take the opportunity to trade down to the largest Citan model. Citan will be marketed as a premium van, and buyers may question whether Renault’s quality levels will match the aspirations of Mercedes customers. Bridge insisted, however, that steps taken by Mercedes – they include detailed work on the electrical system – will ensure that the quality standards demanded by the German manufacturer are achieved. A team of Mercedes engineers will inspect Citans as they roll off the end of the assembly line, and in the UK the newcomer will carry the same warranty as Vito and Sprinter. ‘Citan will be more expensive than Kangoo so far as frontend price is concerned, but the holding cost will be better,’ he promised. ‘Our aim is to ensure that this is reflected in the contract hire rates that are quoted.’

February 2012

53


VAN OPERATIONS Contract Hire

Pendragon set for 2012 expansion A relaunched product for SMEs is part of the company's strategy to build on its 2011 growth. 2011 was another good year for light CV registrations, with the market for vehicles up to 3,500kg continuing the growth trend that began in the second quarter of 2010. 2011 registrations for vehicles with gross weights up to 3,500kg grew by 16.7 per cent compared with 2010 and much of that growth was assisted by contract hire. With the Government offering assistance to small businesses, we spoke to Pendragon Contracts managing director Neal Francis about light CV business in 2011 and his hopes for 2012. ‘Our van fleet has been expanding for the last two years already’, he told VFW, ‘If you take our year-on-year figures, then last year our van fleet increased by 22 per cent. We would expect it to grow by a similar, if not larger amount this year, because we will have a greater focus on our corporate client base among existing customers and those we are probably pretty close to capturing.’ Pendragon Contracts van fleet stands at around 3,700 and of these around 700 are light vans, 1,700 are medium vans and around 1,400 large panel vans. Neal Francis expects this pattern to continue into 2012, ‘More and more people are saying it’s better to have a large van than to be taking two small ones. So when people have looked at their business, they’ve gone for one large van and probably sacrificed two smaller ones, given what their workload is, or what they expect their activities to be moving forward.’ Mr Francis acknowledges that lenders have not necessarily wanted to get involved in financing business with small to medium enterprises. The Government picked up on the problem in the Autumn Statement last year, in launching the National Loan Guarantee Scheme, offering government support for up to £20bn in loan guarantees for small businesses and the Business Finance Partnership designed to deliver an additional £1bn. Pendragon will be re-launching finance packages for SMEs, which will include funding for partner-

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ships, local businesses and trades people. The ”Basel III” regulations announced in 2010 will increase the costs associated with lending money. This in turn is likely to increase the costs associated with leasing and finance for vehicle fleets and we asked Neal Francis what impact he thinks it is likely to have, ‘I think there’s a bigger picture’, he said, ‘While those considerations are important, the bigger picture within businesses at the moment is to have cash and capital on their balance sheet. So whilst there are slight differences in implications between what we do today and what we are going to have to do tomorrow, we don’t see any marked downturn in relation to the financing of fleets, whether that’s cars or vans. It’s a necessary evil in the endemic culture and the way we operate businesses in the UK.’ As Mr. Francis pointed out, tying up capital in purchasing vehicles is not necessarily viewed positively by investors or the broader financial community. At Volkswagen’s round-table press event at the end of last year, many of the fleet management and finance companies represented made it clear that they believe the medium to longer-term future will be for vehicles powered by diesel engines. Electric power was not viewed as a viable alternative at the moment. What about customer

demand? ‘We’re not seeing a massive demand for electric vans’, says Neal Francis, ‘Being brutally honest, we would like to see some evidence of how they perform before we as a business would go into that new technology with both feet. So we are being somewhat guarded until the product is proven and the economics get substantially better. Having said that, we do see niches in the market where we would expect that proposition to be quite attractive, once those two fundamentals are overcome.’ Although van registrations for January 2012 have dipped, most forecasters are expecting the growth trend to continue in 2012. How does Pendragon expect business to develop this year? ‘We’re not in the position we were in 2008-9, where a lot of people opted out and extended vehicles for a considerable period of time’, says Mr Francis, ‘People are running vehicles for slightly longer periods, but they are replacing them, so we see the market being relatively steady, I don’t think it’s going to take off and go mad. Equally, the people that have typically run vehicles for a considerably longer period have been local businesses, where finance hasn’t be as available as it previously was. There is evidence that there will be more capital available in that sector this year.’ Neal Francis, managing director, Pendragon Contracts


MOVANO

NO JOB TOO BIG Big, strong and versatile enough to handle any task. Movano is designed for tough business conditions. With more flexibility and choice than ever before, there’s No Job Too Big for Movano. • 4 vehicle lengths, 3 roof heights • Payload up to 2500kg, towing capacity up to 3 tonnes • FWD, RWD or twin-rear wheel RWD

COMMERCIAL VEHICLES The Wheels of Business


For more information visit www.vauxhall.co.uk/vans


DRIVEN

Words Dan Gilkes

specification MODEL Unimog U4000 BASIC PRICE £90,000 ENGINE 4-cyl/4,800cc FUEL INJECTION Direct injection POWER 218PS @ 2,200rpm TORQUE 810Nm @ 1,160-1,620rpm Weights (kg) GVW 7,500-10,000 Dimensions (mm) POSSIBLE BODY LENGTH 4,600 Cost considerations FUEL TANK CAPACITY 160 litres

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Mercedes-Benz Unimog U4000 The colour scheme and blue lights applied to our test vehicle should give some idea as to the type of customer that the Unimog division of Mercedes-Benz is used to dealing with. Fire departments, local authorities, utilities and construction users make up the majority of customers, each with very specific operations that require the big Unimog’s rather unusual combination of abilities. The Unimog has, since 1948, been charged with carrying a bewildering array of implements and attachments across almost any terrain. It is not so much a Swiss army knife in itself, more the handle into which owners can insert snow ploughs and blowers, hedge trimmers and flail mowers, cranes and pole grabs, access platforms and of course fire fighting equipment. There are three main ranges of Unimog, with the U4000/U5000 being the largest. Gross weights range from 7.5-10 tonnes, but the Unimog is about more than base carrying capacity. Using a flexible ladder-type chassis with tubular cross members ensures rigidity on the road. However, when off-road this design provides incredible flexibility. At one point on our off-road route, the cab and rear body were moving in completely different directions, as the axles followed the terrain beneath. What was perhaps more surprising about our drive in the U4000 was not its legendary off-road capability, but more its on-road driving manners. The last time I drove a Unimog it had a forest of gear levers sprouting from the centre of the cab, permitting a wide range of gear options to be selected. In the U4000, the driver simply has to deal with a Telligent electronic gearlever, similar to that found in Mercedes road-going trucks. Nudge it forward for an upshift, back for a downshift. You can even set it to automatically change gear for you if you prefer. Underneath it

all, the shift lever controls an automated synchromesh gearbox, which in standard form provides eight forward gears and six reverse gears. If that’s not enough, then a further eight speeds are available for working or off-road use. There are still plenty of additional switches in the Unimog cab of course, providing cross-axle and inter-axle differential locks that ensure the big Merc can pull through almost anything. To the right of the steering wheel there is an engine brake lever, also familiar to anyone who has driven a Merc truck recently, that offers two positions. The second click will bring the heavy truck almost to a halt, even on steep descents, allowing you to keep clear of the service brakes for maximum control in the mud. The crew cab on the Unimog offers comfortable seating for up to seven, with plenty of storage space. And like everything else about the Unimog, there are a host of available options. The cab can be extended by 120mm and the cab roof can be raised by 120mm too. Then if getting out the doors is likely to be a problem, you can also opt for a roof hatch. The view out is good, given the ride height, and you can easily keep pace with traffic around town. The big Unimog even makes a reasonable motorway companion, with only a bit of extra road noise from those heavy-duty tyres. But it is off-road where the truck excels of course, and here things remain very much unchanged. If you need to get to otherwise inaccessible locations, with personnel or equipment, there are few better ways to achieve your goal.

verdict The Mercedes Unimog remains one of the ultimate off-road trucks, providing unrivalled offroad capabilities. The big news now though, is that on-road manners are greatly improved too.



DRIVEN

Ford Transit ECOnetic

Words Dan Gilkes

specification MODEL Transit T350 LWB ECOnetic BASIC PRICE £25,420 ENGINE 4-cyl/2,198cc FUEL INJECTION POWER TORQUE Weights (kg)

Common-rail 125PS @ 3,500rpm 330Nm @ 1,350rpm

GVW KERB WEIGHT PAYLOAD MAX TRAILER WEIGHT Dimensions (mm) LOAD SPACE LENGTH LOAD SPACE WIDTH LOAD SPACE HEIGHT WIDTH between wheel arches LOAD HEIGHT (unladen) LOAD VOLUME

3,500 1,924 1,576 2,000 3,399 1,762 1,745 1,390 594 10.45m3

Cost considerations FUEL TANK CAPACITY 103 litres COMBINED MPG 39.8mpg CO2 emissions 189g/km OIL CHANGE 1 year/20,000 miles WARRANTY 3 yr/100,000 mile

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The intermittent wiper unit, which is presumably mounted behind the dash on the passenger side, makes an annoyingly audible clicking sound each time the wiper is activated. This is not so much a comment on my OCD, as recognition of the incredibly low levels of noise in the 2012 Transit’s cab. Depending on which bit of the LCV market you look at, Ford’s venerable Transit captured 30-40% of the UK market last year. That means more than one in three medium to heavy vans wore the blue oval, a remarkable result. Ford’s engineers therefore change the Transit at their peril – this is one update that they can’t afford to get wrong. Fortunately the move to Euro 5 engines across the board for 2012 has done little to dent the Transit’s wellearned reputation, and much to further it. You can of course still choose from numerous wheelbases, body heights and engine outputs. You also get to choose which set of wheels you want the power transmitted through. For most that means front wheel drive, even in a longer wheelbase 3.5-tonne van like our test vehicle. It results in a lower load floor, surefooted handling and lower fuel consumption. That’s particularly true in our ECOnetic model, the first time the technology has been available on a long wheelbase Transit. You get 125PS from the 2.2-litre Duratorq TDCi motor, with a healthy 330Nm of torque. You also get six speeds as standard now in the manual box. Perhaps more importantly, the van comes with Start/Stop technology, combined with regenerative charging, resulting in a combined fuel figure of 39.8mpg, which we managed to get surprisingly close to. You also get a speed limiter, set at 70mph and a host of acronym– laden electronic driver aids, the most important being ESP. However somewhat oddly, the limiter is part of the Start/Stop package. Turn

that off, with a switch on the dash, and you also cancel the limiter, allowing heavy-footed cruising and spoiling the undeniably fine fuel consumption figures. The 2.2-litre TDCi engine is used in both front and rear drive Transits now and it’s a fine unit, offering plenty of get up and go, without too much audible intrusion into the cab. The Start/Stop system wasn’t the most active that we’ve come across, though it did cut the engine a few times while waiting at the lights. Other than that it is all familiar Transit fare, which is all good with us. The excellent Quickclear heated windscreen is standard now – good news in the current frosty weather – and all 2012 Transits come with daytime driving lights and a lightly revised grille. Again nothing to worry fleets there, it just makes it easier to spot a 2012 model when the time comes to run it through the auction lanes. The ECOnetic Transit isn’t the lowest priced model in the range, our test van starts at £25,420, but it does come reasonably well equipped. At the launch late last year Ford compared the 125PS LWB model that you see here against the previous generation 115PS T350. It claimed that fuel savings alone would amount to around £3,239 over a four-year, 80,000-mile period. Add in improved performance and comfort, plus longer 20,000 mile service intervals, and the ECOnetic Transit makes a compelling case for itself. Now if they could just do something about that wiper repeater.

verdict The LWB ECOnetic Transit has been launched in answer to customer demand for a larger van with the low emission, high economy running gear. It certainly ticks a lot of fleet buyer boxes.



FEATURE To buy or to lease? // Part 15

BREAKING UP IS HARD TO DO More of the maths involved in early termination of contract hire agreements. By Professor Colin Tourick.

Last month we looked at the main ways in which contract hire early termination figures are calculated: percentage of future rentals and sliding scales based on time of the early termination, and actual cost. This month we will look at the annuity and the ”sum of the digits” methods. These are mainly used to calculate the early termination amounts for hire purchase, finance lease and other agreements (where your rentals/repayments are designed to fully pay out the lessor’s/lender’s investment) as opposed to contract hire arrangements (where the supplier has to sell the car to recover their investment in full).

THE ANNUITY METHOD Most people know how a repayment mortgage works. You borrow a sum of money over a long period and make monthly repayments that only change if market interest rates change. By the end of the contract the mortgage has been fully repaid. At the end of the first year the mortgage statement arrives and you are horrified to see that, of the thousands of pounds you paid during the year, most went to repay interest and this left only a tiny amount to repay the capital borrowed. The lender provides the reassuring explanation; ‘Don’t worry, we have not made a mistake, this is perfectly normal, you owe more in the early years so most of the repayment is interest but in later years this will reverse and most of your repayment will be capital.’ The same principle works with any hire purchase agreement, conditional sale, contract purchase or finance lease agreement. In the early months the repayments are mainly interest, in the later months mainly capital. Here is an example (Table 1). A vehicle costs £10,000. The three-year hire purchase agreement calls for thirtysix equal monthly repayments, each payable at the start of the month, the first

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being made on delivery of the vehicle. The interest rate is 12% per annum nominal, which equates to 1% per month. The repayments are £328.85 per month. This calculation (which was produced using the Goal Seek function in Excel), is called an annuity or an actuarial calculation. Note how the interest amount is higher in early months, lower in later months. The fact that repayments are split between interest and capital is an economic fact of life and occurs regardless of the way the funder chooses to record the loan or lease in their books. An early termination will usually leave a balance outstanding in the funder’s books that is larger than the thencurrent value of the vehicle being

financed. The only exceptions are where you have paid a large initial deposit, or the vehicle has retained its value remarkably well, or a combination of the two. This means that the amount the funder needs to charge you simply to break even on an early termination may come as a surprise to you.

THE SUM OF THE DIGITS METHOD Clearly, the average borrower needs a simple method to help them work out how much interest is due each month. If they could work this out they could calculate the proportion of each payment goes to reduce the capital balance and there-

Table 1 Month 1 2 3 4 5 6 7 8 9 10

Opening Balance £10,000.00 £9,767.86 £9,533.39 £9,296.58 £9,057.41 £8,815.84 £8,571.85 £8,325.43 £8,076.54 £7,825.16

27 28 29 30 31 32 33 34 35 36

£3,145.83 £2,845.14 £2,541.45 £2,234.72 £1,924.93 £1,612.03 £1,296.01 £976.83 £654.45 £328.85

Payment Interest £328.85 £96.71 £328.85 £94.39 £328.85 £92.05 £328.85 £89.68 £328.85 £87.29 £328.85 £84.87 £328.85 £82.43 £328.85 £79.97 £328.85 £77.48 £328.85 £74.96 And so on until... £328.85 £28.17 £328.85 £25.16 £328.85 £22.13 £328.85 £19.06 £328.85 £15.96 £328.85 £12.83 £328.85 £9.67 £328.85 £6.48 £328.85 £3.26 £328.85 £0.00

Capital £232.14 £234.46 £236.81 £239.18 £241.57 £243.98 £246.42 £248.89 £251.38 £253.89 £300.68 £303.69 £306.73 £309.80 £312.89 £316.02 £319.18 £322.37 £325.60 £328.85

Closing Balance £9,767.86 £9,533.39 £9,296.58 £9,057.41 £8,815.84 £8,571.85 £8,325.43 £8,076.54 £7,825.16 £7,571.27 £2,845.14 £2,541.45 £2,234.72 £1,924.93 £1,612.03 £1,296.01 £976.83 £654.45 £328.85 £0.00


Table 2 Payment No. 1 2 3 4 5 6 7 8 9 10

Table 3 Calculation 36 ÷ 666 x £1,838.76 = 35 ÷ 666 x £1,838.76 = 34 ÷ 666 x £1,838.76 = 33 ÷ 666 x £1,838.76 = 32 ÷ 666 x £1,838.76 = 31 ÷ 666 x £1,838.76 = 30 ÷ 666 x £1,838.76 = 29 ÷ 666 x £1,838.76 = 28 ÷ 666 x £1,838.76 = 27 ÷ 666 x £1,838.76 =

£ 99.39 96.63 93.87 91.11 88.35 85.59 82.83 80.07 77.31 74.54

Payment No. 1 2 3 4 5 6 7 8 9 10

10 ÷ 666 x £1,838.76 = 9 ÷ 666 x £1,838.76 = 8 ÷ 666 x £1,838.76 = 7 ÷ 666 x £1,838.76 = 6 ÷ 666 x £1,838.76 = 5 ÷ 666 x £1,838.76 = 4 ÷ 666 x £1,838.76 = 3 ÷ 666 x £1,838.76 = 2 ÷ 666 x £1,838.76 = 1÷ 666 x £1,838.76 =

fore the outstanding balance they have to pay on early termination. You can’t work out annuity balances using mental arithmetic and most people don’t have financial calculators. Therefore a simplified calculation method was required and the one that has developed over the years is called the sum of the digits method (it is also called the Rule of 78). It works as a good substitute for the more complex (but more accurate) actuarial calculation. Under the sum of the digits method, rather than charging interest on the balance outstanding each month, the whole interest charge for the contract is spreads across the life of the agreement using a weighting system. Once again, it’s best to illustrate this with an example and we will use the same facts as before. The client borrowed £10,000 and has to repay £328.85 x 36, that is, a total of £11,838.76. Therefore the interest they are paying totals £1,838.76. Now we will do something strange and add up 1 + 2 + 3 + 4 and so on up to 36. The sum of numbers one to 36 is 666 (which some may find a little spooky). The first payment repays £99.39 of interest under the Rule of 78. That’s calculated as 36 ÷ 666 x £1,838.76. The second payment repays slightly less: 35 ÷ 666 x £1,838.76, that is, £96.36. The full schedule for this example is shown in the Table 2 (above left). Compare the actuarial calculation with the Rule of 78 calculation and you will note that the latter gives us a pretty close approximation of the more accurate actuarial figures. The difference is shown in Table 3. To determine a Rule of 78 early termination figure, we use the Rule of 78 inter-

Rule of 78 £99.39 £96.63 £93.87 £91.11 £88.35 £85.59 £82.83 £80.07 £77.31 £74.54

Difference £2.68 £2.24 £1.83 £1.43 £1.06 £0.72 £0.40 £0.10 -£0.17 -£0.42

And so on until...

And so on until...

27 28 29 30 31 32 33 34 35 36

Actuarial £96.71 £94.39 £92.05 £89.68 £87.29 £84.87 £82.43 £79.97 £77.48 £74.96

27.61 24.85 22.09 19.33 16.57 13.80 11.04 8.28 5.52 2.76

27 28 29 30 31 32 33 34 35 36

est figures to replace the balances shown in Table 1 thus: Table 4 (below). So under Rule of 78, the balances at the end of each month are pretty similar to those calculated using the actuarial method. The Rule of 78 gets its name from the fact that it represents the sum of the numbers from one to 12. So, in calculating a Rule of 78 settlement in a one-year contract, the denominator in the formula would be 78, not 666. (I believe the expression ‘Rule of 78’ was first coined in

£28.17 £25.16 £22.13 £19.06 £15.96 £12.83 £9.67 £6.48 £3.26 £0.00

£27.61 £24.85 £22.09 £19.33 £16.57 £13.80 £11.04 £8.28 £5.52 £2.76

-£0.56 -£0.31 -£0.04 £0.27 £0.60 £0.97 £1.37 £1.80 £2.27 £2.76

the 1930s. One-year hire purchase agreements were the norm then). Your actual contract may say that one, two or more months’ interest must be added to the rule of 78 figure when calculating the actual settlement amount. If you decide to hand back the vehicle (and if the lessor agrees to take it back and sell it), these early termination settlement amounts will be reduced by the actual or projected sale proceeds of the vehicle.

Table 4 Payment No.

Opening Balance

Payment

Rule of 78 Interest

Capital Repayment

Closing Balance

1

£10,000.00

£328.85

£99.39

£229.46

£9,770.54

2

£9,770.54

£328.85

£96.63

£232.22

£9,538.31

3

£9,538.31

£328.85

£93.87

£234.98

£9,303.33

4

£9,303.33

£328.85

£91.11

£237.74

5

£9,065.59

£328.85

£88.35

£240.51

£9,065.59 £8,825.08

6

£8,825.08

£328.85

£85.59

£243.27

£8,581.81

7

£8,581.81

£328.85

£82.83

£246.03

£8,335.79

8

£8,335.79

£328.85

£80.07

£248.79

£8,087.00

9

£8,087.00

£328.85

£77.31

£251.55

£7,835.45

10

£7,835.45

£328.85

£74.54

£254.31

£7,581.14

And so on until... 27

£3,136.69

£328.85

£27.61

£301.25

£2,835.45

28

£2,835.45

£328.85

£24.85

£304.01

£2,531.44

29

£2,531.44

£328.85

£22.09

£306.77

£2,224.67

30

£2,224.67

£328.85

£19.33

£309.53

£1,915.14

31

£1,915.14

£328.85

£16.57

£312.29

£1,602.86

32

£1,602.86

£328.85

£13.80

£315.05

£1,287.81

33

£1,287.81

£328.85

£11.04

£317.81

£969.99

34

£969.99

£328.85

£8.28

£320.57

£649.42

35

£649.42

£328.85

£5.52

£323.33

£326.09

36

£326.09

£328.85

£2.76

£326.09

£0.00

February 2012

63


VAN

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Do you offer a chip and pin security system?

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Do you offer a non-pump price agreement?

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Can customers pay for alternative fuels, such as natural gas or electric using your cards?

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The Fuelcard Company As one of the largest commercial fuel card resellers in the UK, The Fuelcard Company enjoys partnerships with most large fuelling networks including Shell, Esso, Texaco and Keyfuels, this means we have a total of over 6,000 UK sites where our cards are accepted. As experts in our field, we have a wealth of experience in delivering tailored and competitive solutions to better manage business fleets of all sizes. In addition to our first-class customer service, our online account management allows access to all your account transactions 24 hours, 7 days a week.

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Tel: 0844 870 9856 www.thefuelcardpeople.co.uk


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CONTRACT HIRE, LEASING & FINANCE

RACKING SYSTEMS

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BCA Tel: 0845 600 66 44 www.british-car-auctions.co.uk

LeasePlan UK Ltd Tel: 0844 493 5810 www.leaseplan.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

DAILY RENTAL

CBVC Vehicle Management Tel: 01283 509177 www.cbvc.co.uk

Tevo Limited Tel: 01628 528034 www.tevo.eu.com

Ratcliff Palfinger Ltd Tel: 01707 382880 www.ratcliffpalfinger.co.uk

Chevin Fleet Solutions Tel: 01773 821992 www.chevinfleet.co.uk

Arnold Clark Vehicle Management

Bott Ltd Tel: 01530 410600 www.bott-group.com

DEL Equipment (UK) Ltd Tel: 01993 708811 www.del-uk.com

Bynx Tel: 01789 471600 www.bynx.com

HEALTH & SAFETY COMPLIANCE

cfc solutions Tel: 0121 717 7444 www.cfcsolutions.co.uk

Nexus Vehicle Rental Tel: 01133 460 469 www.nexusrental.co.uk

Avis Rent A Car Tel: 0844 544 5000 www.avis.co.uk

Budget Rent-a-Car Tel: 0844 5338 08701544 56 56 56 www.budget.co.uk

Tel: 0141 332 2626 www.acvm.co.uk

Volkswagen Group Leasing Tel: 0870 333 2229 www.volkswagengroupleasing.co.uk

VAN FLEETW RLD

SUPPLIER DIRECTORY

ACCIDENT MANAGEMENT Total Accident Management Tel: 0845 078 4157 www.totalaccman.co.uk

VEHICLE DATA International Decision Systems Tel: 01256 302 000 www.idsdata.co.uk

FAST-FITS & TYRES

Venson Automotive Solutions Tel: 08444 99 1402 www.venson.com

ALD Automotive Tel: 0870 0011181 www.aldautomotive.co.uk

Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk

Alphabet (GB) Limited Tel: 0870 50 50 100 www.alphabet.co.uk

ATS Euromaster Tel: 0121 325 8842 www.atseuromaster.co.uk

Incorporated into every issue of VAN Fleet World Magazine and interactive online at fleetworldgroup.co.uk

www.pdsuk.co.uk

Roadmarque Tel: 0845 053 0331 www.roadmarque.com

Flettner Ventilator Ltd Tel: 020 8200 2321 www.flettner.co.uk

MiX Telematics Tel: 0121 717 5385 www.mixtelematics.co.uk

Cost includes a rotating monthly listing in SUPPLIER DIRECTORY in VAN Fleet World. PLUS... Full listing on fleetworldgroup.co.uk

TomTom Business Solutions Tel: 020 7255 9774 www.tomtom.com/business

The Fuelcard People Tel: 0844 870 9856 www.fleet-fuelsavings.co.uk

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

Quartix Ltd Tel: 0870 013 6663 www.quartix.net

Esso Fuel Cards Tel: 0800 626 672 www.essocard.com

Email link to sales contact

Full listings online at

Professional Driver Services Tel: 0871 200 2217

TELEMATICS & TRACKING

FUEL MANAGEMENT

Full-colour company logo

fleetworldgroup.co.uk

IAM Drive & Survive Tel: 0870 120 2910 www.iamdriveandsurvive.co.uk

VEHICLE VENTILATION

£400 flat rate for the year

Website link to homepage

RISK MANAGEMENT

Handistep - Fleet Safety Tel: 01939 260707 www.handistep.com

VAN

fleetworldgroup.co.uk

FLEETW RLD January 2010

For further information on this unique opportunity to reach the UK’s premier LCV fleet decisionmakers, please call Tracy Howell on 01727 739160 or email tracy@fleetworldgroup.co.uk

‘Doblo has always shown promise, now it looks as though it can deliver’ p46

January 2010

43

Tel: 0113 346 7705 Ctrack www.ctrack.co.uk

BP PLUS Fuel Cards Tel: 0845 603 0723 www.bpplus.co.uk

Full listings online at fleetworldgroup.co.uk

February 2012

65


NUM8ER5 G4ME the fleet month in figures

£31.5k

The starting price for the new fleet-focused Jaguar XF SE Business model. SOURCE > Jaguar

£8,000 The maximum discount for ultra-low carbon vans in the EV Grant scheme. SOURCE > Department for Transport

11.6% The percentage reduction of traffic police numbers in the last five years. SOURCE > Brake

140k

The number of Berlingos sold in the UK during its 15 year lifespan. SOURCE > Citroen

€225m 66

fleetworldgroup.co.uk

LeasePlan’s 2011 profits – a 13% increase on 2010. SOURCE > Leaseplan

1.0-litre The size of the new 125bhp, 109g/km Ecoboost turbo petrol engine on sale in the Focus next month. SOURCE > Ford

10 The starting price in £s for Europcar’s new by-the-hour car rental service. SOURCE > Europcar


DOES TOUGH FEELS SMOOTH

It’s hard to miss the NV400’s tough appearance. A 4x4 inspired grille and Nissan’s balanced angle strut make it feel more like an SUV than a van. Get inside, however, and you’ll find car-like levels of comfort – including extra legroom, wider and longer seats, Bluetooth phone integration, parking sensors, the lot. There’s no need to rough it any more.


MORE ANSWERS LESS HASSLE

The NV400 is available in 20 different versions, based on dimensions and cargo capacity. Add to that low running costs and 25,000 mile service intervals and you’re sure to spend more of your time on the road and less time off it.

Discover the difference for yourself. Visit www.nissan.co.uk/nv400 to ďŹ nd out more.




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