February 2014
FLEETW RLD All that matters in the world of fleet
Seven heaven
Brilliant new Grand C4 Picasso tested
Plus...
10 ways to get better contract hire
New Qashqai
SWOTed & Driven... We put Nissan’s new fleet contender through its paces
face to face with the fleet industry
9th April 2014 See page 32
RVs 2014 On the up... ...or heading down?
fleetworld.co.uk
The E-Class. CO2 from 109g /km.*
A Daimler Brand
The numbers work.
Official government fuel consumption figures in mpg ( litres per 100km) for the new E- Class range: urban 20.3 (13.9 ) –68.9 (4.1), comparison purposes and actual performance will depend on driving style, road conditions and other non-technical factors. *Model featured is a new E 300 BlueTec Hybrid SE Saloon at £40,525.00 on-the-road including be available. Price correct at time of going to print 01/14.
extra urban 36.2 (7.8) –70.6 (4.0), combined 28.3 (10.0) –68.9 (4.1). CO2 emissions: 234 –109 g/km. Official EU-regulated test data are provided for automatic transmission and optional metallic paint at £645.00 (OTR price includes VAT, delivery, 12 months’ Road Fund Licence, number plates, first registration fee and fuel). Some combinations of features/options may not
contents 28
Fleet on fleet: Brad Wilkie, commercial manager of Kelway’s 160 cars
February 2014
34
Behind the wheel of Citroën’s brilliant Grand C4 Picasso
FLEETW RLD All that matters in the world of fleet
Seven heaven
Brilliant new Grand C4 Picasso tested face to face with the fleet industry
Plus...
10 ways to get better contract hire
New Qashqai
SWOTed & Driven... We put Nissan’s new fleet contender through its paces
9th April 2014 See page 32
RVs 2014 On the up... ...or heading down?
fleetworld.co.uk
Managing Editor Ross Durkin ross@fleetworldgroup.co.uk Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk Editor Steve Moody steve@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk
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Features Editor Katie Beck katie@fleetworldgroup.co.uk VFW Editor Dan Gilkes dan@fleetworldgroup.co.uk
Sign up for the exciting 2014 Fleet Show at Silverstone on 9th April by visiting thefleetshow.co.uk
Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executive Darren Brett darren@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk
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Spotlight on the svelte new Mercedes-Benz C-Class
Head of Production Luke Wikner luke@fleetworldgroup.co.uk
10 steps in piecing together contract hire
Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk
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What 2014 will mean for fleet residual values...
VAN FLEETW RLD
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New Transit, Euro 6 Sprinter, Latest News, Fleet Academy, Contract Hire.
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To subscribe to Fleet World visit: www.fleetworldsubscriptions.co.uk Certified circulation Jan – Dec 2012 17,724
Ford NEWS
inbrief
Mondeo and S-MAX mean business
Ford Focus starts 2014 in fleet lead THE Ford Focus has started 2014 as Britain’s best selling fleet car, outselling everything else in the fleet sector in 2013. Ford recently produced the one millionth current generation Focus in Europe; since the first generation Focus was launched in 1998, 12 million have been sold worldwide, including 1.63 million in Britain. Among the latest models to join the Focus line-up are the Focus Zetec Navigator, Titanium Navigator and Titanium X Navigator. The Focus Zetec Navigator has standard Ford DAB Navigation system, which includes Ford SYNC with Emergency Assistance. In addition to the standard Zetec specification, Focus Zetec Navigator also has new five-spoke alloy wheels, premium TFT cluster screen and premium centre console with Z-shaped handbrake. Zetec Navigator and Titanium X Navigator have six powertrain combinations, while Titanium Navigator has eight; all three models are available with Ford’s award-winning 1.0-litre EcoBoost petrol engine, with five-speed transmission in 100PS versions and six-speed manual in 125PS. The powertrain choice in Titanium X Navigator includes the 182PS 1.6-litre EcoBoost petrol engine with six-speed manual transmission and 163PS 2.0litre TDCi with PowerShift. The 100PS version of the 1.0-litre EcoBoost is the same engine fitted to the recently-announced Focus Edge model which has become the first family-sized petrol car in its segment to offer CO2 emissions below 100g/km. Its 99g/km emissions mean BIK taxation at just 11% in the current year and 12% in 2014/15.
New B-MAX Titanium X unveiled A new premium B-MAX Titanium X is now available to order, with a luxury specification which includes alloy wheels, partial leather heated seats, Ford KeyFree system, panorama roof and rear privacy glass. Changes to B-MAX Zetec and Titanium models include a reduction in recommended retail price and the standardisation of Ford SYNC across Zetec models, further adding to the array of smart technologies featured on the car. The ingenious Ford SYNC lets the driver control music and make and receive hands-free mobile phone calls simply by using voice, enabling hands to be kept on the wheel and eyes on the road. Changes to B-MAX Titanium include improvements to the standard 16-inch alloy wheels to make regular cleaning easier, and a new no-cost option 5spoke alloy wheel.
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
Benefit-in-kind tax is now the most influential factor in car choice for 39% of drivers, against 14% a year ago, according to a survey by ALD Automotive. Ford has been working hard to reduce emissions across its large car range, improving fuel economy and reducing BIK for company car drivers of Mondeo, S-MAX and Galaxy. Reducing the Mondeo 1.6 TDCi 115PS engine’s CO2 emissions from 112g/km to 109g/km has cut BIK taxation by £7 a month - £84 a year - for a higher rate taxpayer. The improvement also means £10 less in annual VED after the first year and an improvement in combined fuel economy from 65.7 to 67.3mpg. Improvements to the Mondeo 2.0-litre TDCi 140PS powertrain in the Mondeo Titanium X Business Edition mean a cut in CO2 from 149g/km to 136g/km, improvement in combined fuel economy from 47.1 to 49.6mpg, and £204 a year BIK tax saving for a higher rate taxpayer. The same engine in S-MAX and Galaxy now emits 149g/km of CO2, from 159g/km, meaning a £221 annual reduction in BIK taxation for a higher rate taxpayer.
fleetreview This month, editor Steve Moody ponders the corporate manslaughter question, the increase of mobile device usage and uninsured drivers... and how we can make your fleet news better.
Do you know what constitutes death by dangerous driving? I’ve always held the belief that the whole corporate manslaughter threat for fleets has been overplayed, and it would seem that after many years of pretty much nothing happening that seems to be the case. However, that doesn’t mean that prosecutors are going soft. While it might not be that businesses are being found responsible for the actions of their drivers, those drivers certainly are. A recent white paper by insurers Allianz reported that death by dangerous, or careless, driving offences has the second highest rate of conviction by trial jury, behind child offences. Its report found that half of drivers and fleet managers didn’t know what constitutes dangerous driving or what the sentences are – as high as 14 years in the most serious cases. One of the biggest issues, as always, is electronic equipment, and it seems the courts are coming down like a tonne of bricks on anyone who has a crash and is distracted. I spoke to a police officer the other week and she reckoned that the instances of people texting, emailing, ringing, Facebooking, Twittering or even using the web while driving are on the rise, and the authorities are taking an increasingly dim view of it. In short, they’re sick of having to pull dead bodies from cars because other road users couldn’t wait to message somebody when they came to a stop. So while it might not be you in the dock, perhaps once again, it’s worth demanding that drivers lock their
06 / fleetworld.co.uk
phones, iPads and the like in the boot. I know they’re a huge temptation to have a peek at, but so many lives are being ruined as a result of them.
Don’t miss out on all the latest daily news! Visit fleetworld.co.uk
The scourge of non-insurance On the subject of accidents, it might be a good idea to remind your drivers to avoid hitting private cars if they can. Recent research found that 10% of all private cars are uninsured – that’s about 2.5 million vehicles. Pre-recession, insurance levels were at almost 100%, but now hover at 91%, with the rising cost of insurance apparently a key factor. Rubbish: there is no excuse. Non-insurance causes no end of hassle, cost and stress to law-abiding drivers and companies. If you can’t afford it, don’t drive – get the bus. Simple solution: every time an uninsured driver is caught, crush their car. face to face with the fleet industry
News on our website As a monthly magazine, we carry most of our news in daily emails, on Twitter and on our website. It’s the way people want their news content nowadays. Fleetworld.co.uk has been developed and re-designed extensively over the years since its first appearance in 1999, and now we are asking for your help in guiding us on the way forward, though a brief online questionnaire, which you can find at www.fleetworldsurvey.co.uk/fw01. Your views really are important to us and if you can find the five minutes it will take to complete the survey we will be eternally grateful.
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Take part in our website survey now!!
s er le ch ilab line ou va on eV w a er d no or to
£17 will service the most important equipment in your fleet The drivers’ eyes
At Specsavers we know how important the safety of your drivers is to you. So, just like their vehicles get an MOT, we can make sure their eyesight is legal and roadworthy too, and not a risk to themselves or other road users. With the brand new online vouchers from Specsavers, we believe the best value corporate eyecare scheme is now the easiest too. Now you can simply order and pay for eVouchers online and email them direct to your staff, saving you all time and paperwork. What’s more, you’ll automatically get detailed feedback on whoever’s redeemed an eVoucher, such as their retest dates, at no extra charge. For just £17, your drivers can have a thorough professional eye test at a Specsavers store. Or for only £35, they can have an eye test plus a pair of glasses from our £45 range, or a £45 discount towards other ranges. It’s peace of mind for both you and them.
To find out more, call 0115 933 0800, email uk.corporateeyecare@specsavers.com or visit us at specsavers.co.uk/corporate
Conditions apply. See brochures for details. ©2013 Specsavers. All rights reserved.
inbusiness
HgCapital acquires majority stake in Zenith P
rivate equity firm HgCapital has acquired a majority stake in Leeds-based Zenith Vehicle Contracts just two months after buying 80% of the Leasedrive Group. The latest deal sees HgCapital take over the majority investment in Zenith from Morgan Stanley Global Private Equity (MSPE) and is subject to regulatory approvals. Tim Buchan, chief executive officer, commented: ‘We thank MSPE for their contribution and are pleased to welcome HgCapital as our new partner. We look forward to working together on our long-term strategy of continued investment in product and system developments.’ Zenith’s chairman Andrew Cope will be stepping down from his post, but will remain an investor in the new group. The Zenith Board continues to be led by Tim Buchan and Mark Phillips alongside the existing management team plus the addition of HgCapital’s Andrew Land, Nick Turner and Simon Cottle. Terms of the transaction were not disclosed.
Government to drive ULEV take-up under Go Ultra Low Deputy Prime Minister Nick Clegg has announced a new scheme that will see the Government highlight the benefits of Ultra Low Emission Vehicles (ULEVs). Dubbed Go Ultra Low, the campaign will use £9.3m to fund hundreds more charging points across the country, including 140 new rapid chargepoints. The Government has also committed to invest £5m to introduce electric vehicles across government and wider public sector fleets this year. And a new website, www.GoUltraLow.com, has been launched promote the benefits of ULEVs and match visitors up with the ultra low emission vehicle that’s right for them. Meanwhile grants of £2.9m will be awarded to public sector organisations to install more than 450 charge points. And a new website has been set up to promote the benefits of ULEVs. Nick Clegg said: ‘Electric cars are one of the most promising of our green industries and we want to secure the UK’s position as a global leader in both the production and adoption of these vehicles.’
Fleets to save millions as logbooks & tax discs go online Fleet operators are set to significantly save time and money with the announcement of more changes intended to cut red tape. Unveiled by Roads Minister Stephen Hammond, the changes include confirmation of the Autumn Statement announcement that the paper tax disc will be axed, saving business and taxpayers around £14m each year. In addition, drivers and fleets will now be able to make changes to address and vehicle details for vehicle tax online. From 2015, fleets will be able to request V5C electronic vehicle registration documents when they need them, rather than having to store paper copies, saving companies around £3m each year. And fleets and drivers will no longer need to return the insurance certificate if a policy is cancelled mid-term, saving business £29m each year. Finally, drivers will no longer need a paper counterpart to their driving licence, saving an estimated £8m each year.
08 / fleetworld.co.uk
fleetweet a few soundbites from a month in fleet
@steve_cars (Steve Walker, site editor, Auto Express)
The UK builds more cars than France for the first time since 1996. It all bodes well for the #WorldCup
@ D4N_J0NE5 (Dan Jones, CV press officer, Ford UK)
Ford European commercial vehicle sales rose last year, with sales up 6.3% and market share of 9.2% – highest level since 2007
@SMMT (Official Twitter account of the SMMT)
GDP rises 0.7% in last quarter of 2013. Good news for UK economy. UK car registrations up 10.8% over same period
@richardaucock (Richard Aucock, managing director, Motoring Research)
Looking for a sign that Jaguar is growing fast? Castle Bromwich made 40% more cars last year than 2012
@SteveFowler (Steve Fowler, editor, Auto Express)
Great news on UK car manufacturing – up 3.1% to sixyear high. Congrats to all who work in the industry. #proudtobeBritish
@NickGibbs (Nick Gibbs, freelance motoring journalist)
One Qashqai comes off the Sunderland line every minute. Nissan reckons it'll build and sell as many as the old car, despite no seven-seater
@HenryJFoy (Henry Foy, journalist, Financial Times)
Global car industry spending more on R&D than ever before. Driven by competition from tech industry
BAROMETER Making sense of the surveys
We’ve pulled together the pertinent points from the myriad of research done in the fleet industry this month to give you a clearer view of what’s really going on...
BiK Benefit-in-Kind (BiK) tax is now the most influential factor when it comes to choosing a new company car, according to research carried out by ALD Automotive. In a survey of 1,000 fleet drivers, 39% classed BiK tax as the most influential factor in the decision-making process (14% in 2012). 25% said car specification was the most important issue (no change over 2012). 17% pinpointed fuel economy of the vehicle as most influential factor (22% in 2012). Commenting on the significant rise in BiK’s influence, Helen Fisk, AutoSolutions manager at ALD Automotive, highlighted the changes to BiK announced in the 2013 Budget as a turning point. All low-emission cars are now no longer exempt from company car tax and the maximum threshold has increased from 35% to 37%.
Fisk explained: ‘Following the Budget we've seen BiK propelled to the top of the list of drivers' priorities as they look more carefully at their opportunities to minimise their exposure. It's clear that drivers are planning for future rises by selecting vehicles with low enough emissions to last a typical three-year agreement period. ‘Interestingly, it seems fuel economy is becoming less of an issue for drivers. This could be because drivers have become immune to higher fuel prices and are, therefore, switching to fuel efficient models with a lower BiK rate.’ Source: ALD Automotive
road safety Conducted as part of a campaign by Brake to raise awareness of the dangers of driving when tired, a new survey by Direct Line reveals that drivers taking “micro-sleeps” or “head nods” at the wheel could be a worryingly common occurrence. 31% of drivers surveyed admitted “head-nodding” at the wheel – 45% of male drivers and 22% of female drivers. 7% admitted actually falling asleep at the wheel – 14% of male drivers and 2% of female drivers. 49% of drivers admitted driving after less than five hours' sleep – not nearly enough for safe driving. Brake added that many drivers aren't aware that if you “head nod” you have momentarily fallen asleep, putting yourself and others in a huge amount of danger. Micro-sleeps can last from anywhere between two to 30 seconds. The road safety charity highlighted that tired driving kills at least 300 people on UK roads every year – although the actual figure could be much higher as driver tiredness can be hard to prove as the cause of an accident.
12 / fleetworld.co.uk
Source:Direct Line
tax discs In response to the announcement that paper tax discs are to be abolished from October 2014, the AA conducted a Populous poll about members’ attitudes to the change. 65% of the AA members surveyed responded that they were wary other drivers will simply not renew their tax, and take a chance on being caught. 2% admitted to being tempted not to renew their own vehicle tax, thinking that they might be able to get around the new system. 47% said they were concerned that without a paper tax disc to remind them, they will be more likely to forget to renew their vehicle tax on time.
Source: The AA
From October, motorists will have the option to pay for their vehicle excise duty by monthly direct debit. Drivers who are not online will be able to tax their car in person at a post office or by phone. Commenting on the abolishment of the paper disc, a Treasury spokesman said: ‘This is a visual symbol of how we are moving government into the modern age and making dealing with government more hassle free.’
vehicle servicing Brake is urging fleet managers to ensure vehicles are safe and road worthy, and mechanics are properly trained after data from its newlyreleased report reveals that vehicle defects contributed to 2,125 crashes in 2011. 63% of fleet managers surveyed said they outsource all vehicle servicing and repair work. Just 52% of companies using outsourced maintenance ensured mechanics' qualifications were checked and verified in the past year. Only 23% of companies provide regular training for in-house mechanics.
Source: Brake
All fleets running larger vehicles required visual-checks at least daily, but 18% of fleets running smaller vehicles did not require any pre-drive checks to be carried out. Laura Woods, research and information officer for Brake, said: ‘This report has highlighted worrying gaps in some fleets' management of vehicle risks. Brake urges fleet managers to make use of the advice in this report, and other resources available through the Fleet Safety Forum, to ensure they are not putting their drivers and other road users at risk by allowing dangerous vehicles on the roads.’
for the latest daily news from the fleet industry, visit fleetworld.co.uk fleetworld.co.uk / 13
inbusiness
Alternative thinking Mitsubishi has previously dabbled with fleet, but now it plans to attract local businesses, reports Curtis Hutchinson, editor of Motor Trader.
O
f all the brands impacted by the downturn, Mitsubishi could argue a convincing case for having one of the most miserable and long-lasting experiences. Sales across its car and pickup ranges are currently tracking at around a third of what they were five years ago. but last year it turned a corner to become the fastest-growing car brand in the UK (after Lotus). The Cirencester-based importer does not intend to stop there as it plans to maximise on a series of new products from Japan to dramatically grow, with its sights on doubling its total sales to 30,000 within the next five years. The brand in the UK was virtually running on empty during the darkest days of the downturn when it was hit by the double whammy of the collapse of credit and an exchange rate which saw the yen tumble from 250 to just 120 against the pound. This meant that Mitsubishi in Japan absorbed significant costs on each car it exported to the UK. Fortunately a long-term view prevailed, the yen rallied and the parent began investing in product development. The results speak for themselves. The brand rebooted itself here and turned a corner in 2013, with car sales up by 38%. Mitsubishi’s strengths have traditionally been in the retail sector with 108 dealers serving mostly out of city and rural locations. However, to facilitate its planned growth it plans to expand to 130 showrooms, with representation in and around some of the major metropolitan areas. It also plans to grow its share of the fleet market beyond its mainstay of one-man bands and the emergency services. Lance Bradley, Mitsubishi’s UK managing director, sees an opportunity to grow fleet business using one of the brand's traditional assets: dealers with a strong local name. ‘Our dealers are really good at retail sales and our fleet department are good at serving bigger fleets; there is an opportunity in the middle where there are local businesses that run 20 vehicles which we are not capturing.’ Mitsubishi, with its eclectic line-up, will only ever appeal to certain businesses. While its high standing in the 4x4 sector, with cars and pickups, is deserved, it is
16 / fleetworld.co.uk
also an established player in the electric market, with the small i-MiEV being one of the first generation of EVs. This year it builds on its green credentials with the launch of the Outlander PHEV, a plug-in hybrid SUV which claims to have a range of 32 miles before the petrol engine kicks in. Its small Mirage fills Well-equipped 4x4s are a useful urban niche but its highproving popular following performance Evo is sadly on recent floods, says BCA. hold. Not quite something for everyone but certainly something for user-choosers with an CAP has raised RVs for the eye on individuality. entire range, led by the CX-5, Before the brand gets serious which is now at 46%. about local fleet its dealers will need to recruit additional sales staff, especially as many laid off staff during the downturn, who can build up long-term relationships with businesses. The move will certainly Sector-wide seasonal dip is mark a cultural shift for the particularly affecting premium brand and its network. models, says VIPDATA. ‘We’ve never been good at local fleet and it’s an area you have to do properly. A company Typically a high performer, running 20 vehicles does not high costs are hurting its think of itself as a fleet; they don't popularity, says Glass’s. have a fleet manager or a fleet policy. You have to deal with them differently. It’s not particularly complicated, you just have to make it really easy for them.’ Bradley wants his dealers to be able to go into these businesses and offer a one-stop shop from sourcing and funding, through to servicing and disposal. ‘If you’re able to offer that sort of service then they are likely to say yes. Our network is very capable of doing that, we’ve just never really got our act together to deliver it.’ Bradley and his team are working on the fine detail of its local fleet plan and plans to launch it to its dealers in March. It's still early days but Bradley’s plan is a clear statement of intent and reflects a new confidence as Mitsubishi rediscovers its mojo.
4x4s
Mazdas
HOT NOT
Convertibles
Renault Espace
Conception : Chaïkana - Crédits photos : Thinkstock
37 COUNTRIES 1 GLOBAL COMMITMENT 1 million thanks!
www.aldautomotive.com
inbusiness
Camera shy? It seems drivers are increasingly happy to be monitored, says The Insider.
T
hey say a picture is worth a thousand words. These days most of us have a camera on our phones and Google “got-a-digit-in-every-pie” offers one set on a thin headband which allows the wearer to take pictures and to see data on a tiny screen held just above, and to one side of, the right eye. It is not the first of its kind, but Google hope its Glass will be the first that lots of people want to wear. I guess some find it helpful to record where they last put their keys, or even the children. I was talking to a friend who recently lived and worked for three years in Russia, where he says nearly everyone has a front-facing dashboard camera in their car, to help combat disputes with the police and settle insurance claims. Having watched the recent Russian road trip mini series on BBC2, showing some shocking in-car camera footage of incredibly reckless driving, I can see why. Yet in Austria the cameras are banned, with the threat of a €10,000 fine for use. But I foresee these cameras will soon be trending more widely in UK car fleets, in the continuing effort to combat insurance scams. The current batch of in-car cameras vary in sophistication and price, and importantly, the length of time that data is retained, but typically have a 170 degree wide angle lens and record data which is stored on an SD card. Some can plot position by GPS and others also record vehicle speed and braking forces. I guess you get what you pay for. You can choose to hardwire them to the vehicle or just plug in and switch them between vehicles as required.
FIN fleet in numbers
18 / fleetworld.co.uk
Interestingly, so far drivers have jumped at the opportunity to have a camera installed, on the basis that it highlights other drivers’ shortcomings. We are good at that – complaining about poor judgement by the late brakers, the middle lane hoggers, and the swerving cyclists. What people maybe haven’t clocked is that the detail could equally well be used to prove where they were at fault too. When they do, an unintended consequence may be a rise in careful driving by the enduser. On my own fleet, perhaps that would have cut down the five people who drove into an inanimate object in the last three months, even if it would also take a rear-facing camera to cure the five who similarly reversed into something in the same period. However, as a fleet manager, if I receive a phone call from an irate member of the public claiming one of my drivers has transgressed, do I automatically have the right to view and use the footage from the camera we installed, or do I need to get a signed declaration from employees allowing us to do so? Who else would have the right to scrutinise the data – presumably the police, the courts, and insurers? Will the police confiscate the card from the camera at the scene of the accident, as they may a mobile phone? If our driver is in the right, he will be only too happy for his data to be released to the relevant authority and that is where, over time, we may make insurance savings. It will cut the number of 50/50 settlements, and reduce the time taken to settle claims, if photographic evidence proves conclusive. And of course it’s said the camera never lies.
84% £5,000
Rise in Mazda fleet sales over the first nine months of the current financial year, helped by SKYACTIV technology.
Plug-in Car Grant saving granted by OLEV off new Mitsubishi Outlander Plug-in Hybrid Electric Vehicle (PHEV).
SOURCE: Mazda
SOURCE: Mitsubishi
inbusiness
Volkswagen drops diesel-powered Polo BlueMotion for 2014 facelift Volkswagen has revealed details of the refreshed Polo range, which will include new petrol and diesel engines. Available to order from April ahead of summer deliveries, the new cars are marked out by subtle changes to exterior and interior styling, with most of the upgrades taking place under the skin. New petrol engines comprise two three-cylinder engines, from the up! city car, with 59 or 74bhp, which also form the basis of the first petrol-powered Polo BlueMotion. This uses a turbocharged 1.0-litre petrol engine with 89bhp, returning 68.9mpg with CO2 emissions of 94g/km and with an expected price drop compared to its diesel predecessor. Within the diesel range, two new three-cylinder 1.4 TDI engines with 74 and 89bhp will replace the outgoing 1.2 and 1.6 TDIs, and in the UK there will be no diesel BlueMotion in the new car. Additional technology includes a new electromechanical steering system and Automatic Post Collision Brake.
trading places
in
in
out
Isotrak appoints sales and marketing director as part of expansion Vehicle tracking and telematics provider Isotrak has announced the appointment of Jason Price as sales and marketing director in the UK. The Milton Keynes-based company is expanding overseas having launched in North America last year and is also expanding into new markets as demand for telematics grows in areas such as the utilities and service industry.
Volkswagen Group Leasing adds to public sector sales team Volkswagen Group Leasing has appointed Phil Dorman as an account manager – public sector. Dorman will be managing accounts in the north of the UK, from Birmingham up into Scotland. He will be responsible for winning new accounts and retaining existing customers through the Government Procurement Service framework.
Honda’s Lee Wheeler to step down from role Honda has announced that Lee Wheeler, manager of corporate operations, is leaving the firm after nearly 10 years to take up a global role at Santander Consumer, a division of Santander Bank. The carmaker added that his successor will be announced in due course.
20 / fleetworld.co.uk
inbusiness
Q &A
Callum Gibson joined FLEETCOR UK as managing director in January 2013, shortly after it had acquired fuel card giant Allstar. With 20 years of experience in the credit card industry, he's bringing new ideas to an extablished sector. What were your priorities when you joined FLEETCOR? FLEETCOR UK has three customer facing brands: Allstar, Keyfuels and The Fuel Card Company. The key driver for me was to understand what do those brands stand for, what their customers need and want and how we support that. What I saw when we came in was, within this continued economic downturn and the emergence of some competition, a demand from customers to control drivers and how they spend. This was a big learning for me; giving someone a fuel card really puts the control in their hands – they will fuel where is convenient for them. Of the research we did, 60% of drivers didn’t know how much they paid for fuel. If you’re managing a fleet you want to have greater control over that. You recently launched a new payment platform, Global FleetNet, how does this benefit customers? Allstar has been the UK market for a significant period of time, and for a long period only sold one product. What we’ve now got is segmentation and we will have three different product sets going forward. One is an entry-level product set, a supermarket card which enables someone with a smaller business that is looking to get access to a fuel network but to manage costs very tightly as well. Allstar, the mid-range product, gives a customer access to over 8,000 merchants and fuel sites across the UK and gives them consolidated reporting. We’ve also established Allstar Premier, which combines the Allstar network coverage with a product that gives customers the ability to take wholesale pricing where the sites overlap with our Allstar sites. At the same time we’re developing some enhancements to allow fleet managers, business owners and CFOs to take better control over their spend on fuel. We have signed an agreement with Visa to enable our card to be Chip and PIN and to have the latest fraud controls, and the value this gives to customers is it allows them to set controls at either a programme or driver level.
22 / fleetworld.co.uk
How do you see the product evolving? People who buy vehicles through leasing companies will have the opportunity to take the SMR package on the back of that. A significant number don’t do that – they fund it themselves. So what we’re doing is using our buying power to negotiate better-than market rates for our customer base. When I think about fuel cards, they were seen as a payment mechanism for a fuel product. However with technology today we can think more broadly around that, we can think around workforce mobility. Our partnership with Visa enables us to get into different areas such as car parking, tolls, we can then apply train tickets – there’s no reason why we can’t build those onto the card. Were there any problems migrating from Arval’s systems after the FLEETCOR buyout? We had a business embedded on Arval platforms, so we had to do a system migration and unfortunately we had some issues. At no point did the payments network not operate, however some customers were finding it difficult to understand or get their reports. The key learning is we could’ve spent more time getting customers up to speed with how the system operates and the way their reports will change. It wasn’t that we weren’t giving them the info, but it was in a different place. What are you planning for 2014? Our focus will still very much be on fuel and anything that’s adjacent. We’ll obviously do what we can and bring (the SMR product) to market quickly as possible but it’ll be more of a development phase. The challenging environment is still pervasive. I know we often see the press talking about green shoots in the economy, but what I’ve seen is businesses are still being very conscious about how they can manage their cost base, how they can be more efficient and more productive. I think that’s one of the things that the economic cycle will leave as quite a long-lasting mechanism. I don’t think we’ll be frivolous for a long period of time.
LOOKS LIKE IT SHOULDN’T BE ON YOUR LIST.
THE NEW 129 G/KM XF R-SPORT. It’s natural to think that the Jaguar XF R-Sport shouldn’t be on your choice list. Think again. The XF 2.2 Diesel 163PS R-Sport with 8-speed automatic transmission delivers 129 g/km CO2 and sits perfectly within the 18% Write Down Allowance. And with an on the road price of £33,995*, isn’t it time you put the Jaguar XF R-Sport at the top of your list? To book an extended test drive contact our Fleet Sales Specialist team on 0845 366 0342. WWW.JAGUAR.CO.UK/FLEET
HOW ALIVE ARE YOU? Official fuel economy figures for the XF 14MY range in MPG (l/100km): Urban 16.7–48.7 (16.9–5.8). Extra Urban 32.8–64.2 (8.6–4.4). Combined 24.4–57.7 (11.6–4.9). CO2 Emissions 270–129 g/km. The figures provided are as a result of official manufacturer’s tests in accordance with EU legislation. A vehicle’s actual fuel consumption may differ from that achieved in such tests and these figures are for comparative purposes only. *On the road price is the manufacturer’s Recommended Retail Price, plus First Registration Fee and Delivery Pack. Vehicle shown is an XF R-Sport with metallic paint and 18" dealer fit accessory wheels.
WANT TO IMPROVE YOUR GOLF? NEW PEUGEOT 308
Data provided by KWIKcarcost New Peugeot 308 1.6 BlueHDi Active
Volkswagen Golf MK 7 BlueMotion 1.6 TDi
82g/km
85g/km
BIK at 40%
£83
£92
P11D Value
£19,040
£21,215
(combined drive cycle)
MPG
91.1
88.3
BHP
120
110
CO2
One look at its impressive numbers tells you exactly how the New 308 stacks up against the Volkswagen Golf. But what you don’t get from the figures is just how dynamic the driving experience feels. Or how sleek the new interior looks, with its unique Peugeot i-Cockpit featuring a 9.7” touchscreen with satellite navigation+ and smaller steering wheel – for more intuitive handling. If you want to see how the New 308 compares to the competition, with independent data provided by KWIKcarcost, visit peugeotcompare.co.uk. You can also find out more by visiting business.peugeot.co.uk/New308 or calling 02476 884 644 for more information. Official Fuel Consumption in mpg (l/100km) and CO2 emissions (g/km) for the 308 Range are: Urban 35.8 (7.9) –80.7
MPG figures are achieved under official EU test conditions, intended as a guide for comparative purposes only, and may not reflect actual on-the-road driving conditions. Model shown is
NEW PEUGEOT 308
business.peugeot.co.uk /New308
(3.5), Extra Urban 61.4 (4.6) – 97.4 (2.9), Combined 48.7 (5.8) - 91.1 (3.1) and CO2 134-82 (g/km).
a 308 Feline with 18” Saphir alloy wheels. +9.7” touchscreen and satellite navigation available on Active level and above. Data shown in the table is independently provided by KWIKcarcost.
inbusiness
What I’ve learnt Richard Schooling, CEO at corporate mobility specialist Alphabet, on the evolving business requirement to get people from A to B. Car ownership is no longer the be-all and end-all Historically, your car signalled perceived personal status and conferred a degree of authority, ie the more expensive the car, the more important you must be. However, this is changing and, with schemes like AlphaCity, it can now be a far more attractive proposition for some business drivers to borrow a pool vehicle for specific journeys, rather than running a company car full-time. The future of car usage, and indeed business travel as a whole, is flexible, with people able to bring together an integrated mix of transport solutions to make moving from A to B as efficient as possible. EVs are finally becoming viable Support for electric vehicles (EVs) from global car makers has reached a crucial tipping point, with the involvement of mainstream manufacturers helping to support credibility and drive interest in the sector. The introduction of practical and desirable EV models at realistic prices from respected and trusted automotive brands means that the adoption of EVs could more than double in the UK over the next three years. There is still a way to go in terms of charging infrastructure; however, many of the traditional barriers are falling. Connected businesses require connected vehicles Telematics has come a long way in recent years. The concept of the “connected car”, which is equipped with on-board wireless internet access, is fast becoming the norm. The recent international consumer electronics tradeshow, CES 2014, has shown some incredibly exciting and innovative tools to provide high speed on-board connec-
FIN fleet in numbers
The market needs strong players focused on the future Over the past two years, the fleet market has changed shape dramatically as a result of players dropping out or consolidating. Indeed, there have been a number of new names in the industry league tables, while the established market-leaders have shown solid growth despite the recession. Looking forward, there will need to be a period of stability while the market adjusts to the new status quo. This is the perfect opportunity for fleet managers to take advantage of the raft of the new customer service initiatives and innovative products being launched. You now need to work across multiple markets When it comes to business mobility, an increasingly connected world requires an increasingly integrated travel solution. It is vital, therefore, that organisations are able to work with suppliers which also offer international capabilities. This means providing innovative pan-European products and solutions which help customers achieve their business goals across multiple markets. It isn’t just about cars and vans. You need to deliver connected, integrated, international solutions to support organisations to take complete control of their business mobility, whether in one country or multiple markets.
Over 50% 1.8% Rise in true fleet sales for the refreshed Vauxhall Insignia in the second half of 2013 over the first half. SOURCE: Vauxhall
26 / fleetworld.co.uk
tion to streaming entertainment, information on surrounding traffic conditions and mobile devices which feature dashboard controls. Over the next five years, it is likely that every car manufacturer will start to embed telematics on every vehicle, as the cost comes down dramatically. Indeed, for the new generation of self-driving cars, embedded telematics will be crucial.
Year-on-year drop in new car registrations in the EU in 2013 – an improvement on the 8.2% fall recorded the previous year. SOURCE: ACEA
renault.co.uk
RENAULT CLIO
Renault Clio, inspired by love (the love of saving a few pounds). Renault Clio Dynamique MediaNav delivers a combined mpg of up to 83.1 and CO2 emissions of 90g/km. So you’ve no excuse for not going that extra mile to close the deal. Talking of closing deals, did we mention its touchscreen navigation, cruise control with speed limiter and Bluetooth and iPod connectivity?
Visit renault.co.uk/business or call the Renault Business Team on 0800 040 7344.
Model shown is a Clio Dynamique S MediaNav. The official consumption figures in mpg (I/100km) for the Renault Clio core range are: Urban 40.4 (7) – 78.5 (3.6); Extra Urban 60.1 (4.7) – 94.2 (3.0); Combined 51.4 (5.5) – 88.3 (3.2). The official CO 2 emissions for the range are 127-83g/km. EU Directive and Regulation 692/2008 test environment figures. Fuel consumption and CO 2 may vary according to driving styles, road conditions and other factors.
Warranty applies to new vehicles up to a period of 4 years or 100,000 miles, whichever comes first (first 2 years unlimited mileage). Renault Assistance Roadside Cover is provided in association with the AA. Cover from months 0 to 36 includes assistance at the roadside and at home, national recovery, onward travel and European cover. Cover from months 37 to 48 includes Roadside and Homestart (including a local tow to an authorised Renault dealer). The provider of this cover is the Automobile Association Limited. Please refer to participating dealer for details.
inbusiness
fleetonfleet Brad Wilkie, commercial manager, Kelway Fleet size 160 cars You have a wide remit – was fleet part of the job originally? Where does your fleet experience come from? My remit is to be responsible for facilities, car fleet and supplier management. My role started 11 years ago in procurement and only in the last three years did facilities and fleet tag on. I recall the conversation, standing by the coffee machine, as the owner walked up to me: ‘Morning, I really think you need to take over facilities, what with your commercial experience.’ ‘Ok.’ And that was it, 20-plus global locations, car fleet and my main role at the time, to manage our supplier relations and commercial agreements of around £180 million of spend. My previous experience of facilities and car fleet – nothing! But I like to think that applying sensible logic and my commercial confidence to most challenges meant half of the task would be achievable. Kelway is clearly a fast-moving business. That must bring some challenges in setting a fleet policy that’s also flexible enough to cope with the ongoing needs of the business? When I started at the business we were turning over £12m. This year we are on target for £500m. That brings its challenges with policy setting, albeit we are only just about to launch our second revision. I think it’s important to ensure legal compliance along with a realistic user guide that people actually can reference when needed. With a 24-hour operation and our engineers being on call, the importance of getting the policy right is a serious matter. My car fleet manager has put a lot of time and effort into making this a policy that is both relevant and compliant. Given what Kelway does, how much of your fleet activity is carried out online? We use a number of online tools for car rental, insurance management and fuel usage. But our internal comms to car fleet is managed through a specific mailbox. When we first took on car fleet we had around 150
28 / fleetworld.co.uk
inbound emails a week. We now get around 15. That’s down to process improvement, good communication and of course an excellent team! In your role, relationship management with internal and external stakeholders is obviously key. I presume you have a very structured approach to this? I think with any business of our size there is the inevitable need for structure and a measured approach. I think what makes our business unique is that in many ways we operate like the £12m business of 11 years ago. What are the two biggest fleet issues for you presently? If you asked me over a year ago my two biggest issues were fuel management and standardising our fleet vehicles. We carried out a tender for both preferred lease partner and vehicle manufacturer and from there defined four levels of spec. Standardising this has helped with the reallocation of cars, and allowed us to work with one preferred partner who provides significant value on a controlled commercial basis. From a fuel management side, one partner in particular has proven invaluable, demonstrating excellent service and significant savings by policing our staff on their fuel usage as well as making sure our monthly mileage submissions are fully HMRC-compliant. What’s your best advice for maintaining cost control on fleet? My best advice to anyone running a fleet is firstly to understand the reality of what the business is trying to achieve with its fleet, as well as to fully understand the areas of expenditure and operational load. For us, that meant changing the vehicles and standardising a spec to defuse the issue of people wanting a particular car. Second to this was finding an excellent value lease partner. Managing fuel costs using a third partner was also a big win. I would say we have a slick fleet operation that is fully compliant, with a robust underlying policy to mitigate business risks and save costs.
MOKKA TECH LINE
CO2 120g/km† FROM
BiK 19%* FROM
COMBINED
MPG 62.8mpg† UP TO
With so much high spec equipment as standard including satellite navigation, Bluetooth®, dual-zone electronic climate control and DMB radio, coupled with a low P11D – more really is less.
FROM
P11 DREAM
P11D £15,769
Pre-book your FREE** 3 Day Test Drive at www.vauxhallfleet.co.uk/testdrive or call 0870 240 4848
VAUXHALL FLEET Call 0870 010 0651 | visit www.vauxhall.co.uk/fleet
Official Government Test Environmental Data. Fuel consumption figures mpg (litres/100km) and CO 2 emissions (g/km). Mokka Tech Line: Urban – 32.5 (8.7)-52.3 (5.4). Extra-urban – 49.6 (5.7)-70.6 (4.0). Combined – 41.5 (6.8)62.8 (4.5). CO 2 emissions 158-120g/km. † = Offi cial EU-regulated test data are provided for comparison purposes and actual performance will depend on driving style, road conditions and other non-technical factors. * = 2013-14 tax year. General Motors UK Limited, trading as Vauxhall Motors, does not offer tax advice and recommends that all Company Car Drivers consult their own accountant with regards to their particular tax position. ** = Excludes fuel and lubricants; congestion charges; parking and speeding fi nes and the £250 insurance excess (if applicable). 3 Day Test Drive vehicles are subject to availability and terms and conditions apply. Please refer to www.3daytestdrive.co.uk for full terms and conditions. Drivers must be 25 years or older and is available for Mainland UK only. All fi gures quoted correct at time of publication (February 2014).
g fleet e k
Bosch Indego
EyeFi Mobi A fast-access SD card with a trick up its sleeve; via a built-in WiFi connection it can instantly transfer images from a digital camera to an iOS or Android device for easy sharing and constant backups. Setup is as simple as pairing the card with a free app, and multiple smartphones and tablets can be connected at once. Price: £41.99–£71.99 from en.eyefi.com
Bosch’s first robotic lawnmower is cleverer than most. After a 15minute setup, it memorises the lawn and plots the most efficient route around the grass, avoiding obstacles as it goes. The battery lasts 50 minutes, it deposits the finely cut grass pieces as fertiliser and alters its route each time to avoid damaging any parts of the lawn. Price: £1,299 from B&Q
Christopher Ward C900 World Timer London-based watchmaker Christopher Ward has reinvented the dual time-zone display to be as easy as possible to use. Using Swiss made internals, both the local and global hour hands use a 24-hour scale, and the local time zone is displayed as a three-letter airport code in a window at the 12 o’clock position. There’s a full list on the back for easy reference. Price: £1,575 from christopherward.co.uk
Parrot Zikmu Solo Penned by renowned French designer Philippe Starck, this stylish wireless speaker simulates stereo sound from a single unit. There are three flat panel speakers and a subwoofer inside the case, which is available in white or black, and music can be streamed via Bluetooth and WiFi or a line-in cable. Parrot also has an Android and iOS app to remotely tweak its settings. Price: £699 at www.parrot.com/uk
apps of the month
Everplaces
Directr for Business
Sunrise Calendar
As sociable as you want it to be, Everplaces is a free memory tool which allows you to tag your favourite haunts or new discoveries on a map. Once there, you can store tips to get the best out of a visit and share them with friends and other users, or you can keep your map personal and use it as your own unique travel guide. Price: Free from iTunes Store
With video and social media weaving tighter into businesses’ everyday lives, this simple app lets you create and edit short high-definition videos on a storyboard-like interface. Ideal for product demos, tours, interviews or event profiles, the completed project can be uploaded to all the usual social media platforms from the app. Price: Free from iTunes Store
Not what it sounds like, Sunrise integrates with Google and iTunes calendars and simplifies the iPhone’s Apple-supplied app. Instruct it to add events as you’d say it, such as ‘meeting tomorrow at 9.30am’ and it’ll do the rest, backing up as you use it, providing weather forecasts for your location and synchronising with LinkedIn. Price: Free from iTunes Store
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Less fuel in. More miles out. Go further with the new Honda engine.
CR-V 1.6 Diesel
Civic 1.6 Diesel
Civic Tourer 1.6 Diesel
• Low fuel costs 62.8 mpg
• Low fuel costs 78.5 mpg
• Low fuel costs 74.3 mpg
• 119 g/km CO2
• 94 g/km CO2
• 9 9 g/km CO2
• Band C VED
• Zero VED
• Zero VED
• BIK rate from 18%
• BIK rate from 13%
• BIK rate from 14%
• Two wheel drive
• Insurance group from 15E
• Insurance group from 15E
honda.co.uk/corporate Fuel consumption figures for the Honda range in mpg (l/100km): Urban Cycle 23.2 – 70.6 (12.2 – 4.0), Extra Urban 40.4 – 85.6 (7.0 – 3.3), Combined 32.5 – 78.5 (8.7 – 3.6). CO2 emissions 201 – 94g/km. Fuel consumption figures sourced from official EU-regulated laboratory test results, are provided for comparison purposes and may not reflect real-life driving experience. Models shown for illustrative purposes: Civic 1.6 i-DTEC S in optional White Orchid Pearl, CR-V 1.6 i-DTEC S in optional Passion Red Pearl and Civic Tourer 1.6 i-DTEC SR in optional Twilight Blue Metallic.
Powered by
WEDNESDAY 9TH APRIL 2014 SILVERSTONE CIRCUIT, NORTHANTS face to face with the fleet industry
...
visit y l p m i s how,
es h t r o f r o registe
k u . o c . w o h s t e e l ww.thef
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”Many congratulations on setting up a great day at Silverstone. Very professional. Both informative and enjoyable.”
”A great day, thank you for organising it, some clear decisions made. The day culminated in driving the Jaguar F Type V8 S around the international circuit simply awesome!” Nigel Boyle, Administration & Technical Director PD Hook
Terry Harvey Head of Group Tax Hitachi Capital
TS
EMEN L E W O SH
• indoor exhibition area • track driving experience • off-road driving experience • NEW technology demo area • conference & seminar area • NEW eco-driving hub
”Face to face meetings and networking with like-minded peers still have a vital role to play in the fleet market, where relationships count for so much.” Jerry Ramsdale, Fleet Show organiser
The different elements will provide senior fleet decision makers with an informative, innovative and interesting day at Silverstone’s worldclass circuits, allowing them to make informed business decisions. It’s all about bringing together fleet operators who share a commitment and passion for fleet.
TEND? T A Y H W
”The Fleet Show was a great mix of driving, seminars and networking with manufacturers and fleet managers alike.Well worth a day out of the office.” Liz Hollands, ACFO director and former fleet manager at DTZ
2014! R O F NEW IENCE R E P X E 4x4
The event has developed into the UK fleet industry’s most important one-day event, with virtually every major fleet manufacturer represented, alongside a huge range of fleet service providers. Don’t miss out... ”We managed to talk to different suppliers that we would not normally have had exposure to and the experience of driving around the circuit was fantastic and made the day.”
thefleetshow.co.uk @theFleetShow
Rob Betts Managing Director The Document House Ltd
Citroën Grand C4 Picasso Citroën’s seven-seater has never made better use of its compact footprint, says Alex Grant. SECTOR MPV PRICE £19,200–£27,855 FUEL 44.8–74.3mpg CO2 98–148g/km
w
ith all the industry talk of downsizing, it may surprise you to hear that it’s the seven-seat member of the C4 Picasso family which sells best in the UK. Three-quarters of British buyers chose the larger model in the last generation – an exact reverse of most European markets – and while the popularity of the new five-seater is tipping the balance back the other way, this is predicted to remain the volume seller in its latest guise. The new C4 Picasso has enjoyed a generational advance based on PSA’s new modular platform, which cuts weight, allows the wheels to be pushed out to the corners for better handling and mounts seats and drivetrain lower to bring the centre of gravity closer to the road allowing a lower roofline and improvements in aerodynamics too. As an added advantage, it’s allowed Citroën to be much more clever with the packaging of the larger model. Previous Grand C4 Picassos shared their wheelbase with the five-seat version, but there’s an extra 55mm between the axles this time around. So while the body is only 7mm longer than its predecessor, there’s more space inside. forming a completely flat 2.75-metre load area from the That 55mm growth might not sound like much, but it dashboard to the tailgate. Converting people mover to makes a big difference. It allows room for bigger rear Ikea-friendly wardrobe carrier takes less than a minute. doors, and boosts interior flexibility. Move The extra third-row legroom has made room the three individually-sliding middle-row for adults to spend short trips in the back, and FLEET FACT seats back and and it provides extra legroom. the myriad cubby holes and 12v sockets, readSlide them forward and the 55mm allows ing lights and cupholders mean passengers 40% of UK cars extra room for third row passengers or cargo, are spoiled for creature comforts. Citroën has without pressing middle-row passengers’ even used a column-mounted gear selector on will feature the knees against the front seats. the automatic versions, liberating some extra ETG6 clutchless It’s easy to use, too. The outer seats in the space in the centre console’s storage bin. manual gearbox. second row fold upwards and spring forwards Three diesel engines are available from to let passengers into the back, and the thirdlaunch, comprising the familiar 90bhp and row seats collapse into a compartment under the boot 115bhp 1.6-litre HDIs, and an all-new Euro 6 compliant floor. All of the seats can be folded with one hand, though 2.0-litre BlueHDI with 150bhp. Between them, these are the front passenger seat is a little more cumbersome, predicted to account for 92% of UK orders, with the majority opting for the mid-spec unit despite the entry-level engine offering the headline fuel economy. There’s a lot to like about PSA’s new BlueHDI 150, which makes the MPV an incredibly refined and effortless long distance car, particularly with the smooth automatic gearbox. But the 115bhp version is so capable and flexible that the extra power is more of a luxury than a necessity. Downsized BlueHDI engines with similar power outputs to the entry level units will be available later this year, in time for Euro 6 requirements, and should bring CO2 emissions down further. Citroën has had three generations to get its compact MPV right, and this latest generation shows good knowledge of the target audience. Well-built and futuristic in style both inside and out, it has the interior flexibility, ride comfort and refinement to keep passengers happy, combined with impressive fuel economy for the driver. Whether it’s head or heart steering the decision, there’s really no loss of appeal compared to the five-seater.
34 / fleetworld.co.uk
what we think
highlights Six of the seven seats fold flat, only needing one hand to do so. CO2 emissions from 98g/km at launch, new Euro 6 engines may reduce this further.
There’s a £1,700 price walk between the five and seven-seat C4 Picassos, and with strong styling, low running costs and impressive interior flexibility on its side, the larger model adds up to an appealing allrounder. Like the five-seater, which is enjoying higher than anticipated demand, it’s well placed to find some new fans.
Electrically-closing boot features a sensitive anti-trap function to avoid pinching fingers.
key fleet model Citroën Grand C4 Picasso e-HDI 115 Airdream VTR+ fleetworld.co.uk / 35
Nissan Qashqai Cheaper to run and better to live with, the class leader is back on top, says Alex Grant. SECTOR Crossover PRICE £17,595–£27,845 FUEL 50.4–74.3mpg CO2 99–132g/km
w
hile Nissan’s claims of inventing the crossover segment with the first Qashqai are debatable, this was certainly the model which set out the formula for every newcomer since. Even against its broadest ever competition, this is as much a crossover benchmark as the Volkswagen Golf is to the C-segment. So it seems the gamble paid off. The Qashqai has enjoyed record sales every year since its 2007 launch, more than doubling expectations to reach a total of 250,000 units sold in the UK. This time around, there’s no gamble. All Nissan had to do was modernise a successful formula, while setting a few new benchmarks for the rest of the pack to follow. That staggering fuel economy figure comes right at the top of the list. When the first generation Qashqai launched, Volkswagen was trumpeting the achievement of a 99g/km, 74.3mpg Polo – a yardstick Nissan has just reached with a crossover. Against the segment norm of between 130-140g/km for a two-wheel drive version, it’s a very impressive place to be. There are several reasons for this. The new Qashqai is the ity as a load carrier. The rear seats drop completely flat, first car to use Renault-Nissan’s new Common Module Famand level with the boot floor, which is removable on all ily, a platform which separates a car into shared modules to except the entry-level trim to provide separate storage for cut down on unique parts. Cost savings aside, items including the parcel shelf or to extend it’s shed 40kg from the crossover’s kerb weight. the boot space. It can also be reversed to a FLEET FACT Styling has been brought up to date with stain-resistant rubber-covered side, and the Nissan’s new SUV family face, shared with the rear of the two sections can be fixed upright Nissan sells forthcoming X-Trail among others. It’s a much to stop shopping rolling around. sharper, more aggressive-looking car, lower The rest of the cabin is similarly well thought 30,000 Qashqais and more aerodynamic with it. There will only out. Front and rear seats are firm but very to UK fleets be one body style this time, but the load volcomfortable, both rows offer plentiful leg and each year. ume has been increased to bring it closer to headroom and the layout and plastics have the now-discontinued Qashqai +2. Most of the improved markedly over its predecessor. Road seven-seater’s buyers were, Nissan says, seeking extra and engine noise are impressively well suppressed and the boot space rather than a third row of seats. ride quality is excellent, even on the Tekna’s 19-inch wheels. There’s been a noticeable effort to maximise its usabilLaunch engines comprise one petrol and two diesels familiar from other Renault and Nissan products, with range-best economy offered from the latest version of the Alliance’s ubiquitous 110bhp 1.5-litre diesel. This now delivers more torque, in turn enabling more economical gearing and makes this easily the most attractive option for head and heart – it’s incredibly quiet and flexible to use and, in theory, very efficient too. The turbocharged 1.2-litre petrol is impressive, too, a huge improvement on the 1.6-litre unit found in the old model despite not matching the eagerness of the diesel. Four-wheel drive and a new CVT gearbox with stepped ratios, engineered to feel more like a dual-clutch unit than the usual springiness offered from this type of unit, are optional on the 1.6-litre diesel. Nissan reaped the rewards of a well-targeted product with the first Qashqai and, like the Mk1 Golf, it’s set what is now the standard for this segment. With updates in all the right places, Nissan’s segment-defining crossover has the right ingredients for another seven years at the top.
36 / fleetworld.co.uk
what we think highlights Modular platform contributes to a 40kg weight reduction. Best-in-class economy of 74.3mpg with 99g/km CO2. SMR cost reduction of between 3–5% and cheaper insurance with Nissan Safety Shield.
Great to look at, comfortable, efficient and incredibly practical, the Qashqai has once again raised the bar in what has become a competitive segment in recent years. Nissan is hoping to maintain, rather than vastly accelerate, its sales in this segment, and this newcomer is exactly the car it needs.
key fleet model Nissan Qashqai 1.5 dCi Acenta
fleetworld.co.uk / 37
Mitsubishi ASX Subtle upgrades hide impressive price reductions for the ASX, as Alex Grant discovers. SECTOR Crossover PRICE £14,999–£23,899 FUEL 48.7–55.4mpg CO2 134–153g/km
T
here’s a timeliness to the arrival of the refreshed Mitsubishi ASX. The carmaker is back in profit in Japan and, aided by a growing dealer network and improving exchange rate, its UK importer recorded a 38% year-on-year sales rise in 2013. With European models built in Japan, the exchange rate has made a huge difference. The ASX launched to 8,000 sales in 2010, dropping to 3,000 the year afterwards as the Yen eroded its competitiveness. But the tide has turned again, and the result is a 9-10% drop in prices across the range, which will help BiK costs and leasing
rates too. Around 4,500 are expected to sell during 2014. For the most part, the line-up is unchanged. There’s still a choice of 1.6-litre petrol and 1.8-litre diesel engines, the latter also available with four-wheel drive, and trims comprise progressively better equipped 2, 3 and 4 versions with a retail-focused, top-heavy customer base. Bluetooth is now standard across the range, as are improvements to ride quality and NVH levels. Even on rough surfaces the ASX doesn’t feel too firmly sprung, and there’s minimal road or wind noise at speed. Mitsubishi has broadened the range for 2014, so there’s now a diesel automatic in the 4 trim said to open the car up to 19% of the segment’s volume. It’s the carmaker’s new 2.2-litre unit, as launched in the new Outlander, and feels incredibly smooth and relaxed in the smaller ASX. The gearbox, also from the Outlander, learns driving patterns and adjusts shifting to suit, usually proving more effective than leaving it to its own devices. A downward shift in CO2 emissions would’ve been helpful for the two-wheel drive 1.8-litre diesel, which at 134g/km is starting to lag behind the segment’s newcomers, but segment-lowest pricing helps. With crossovers continuing to bloom in popularity, this competitive boost means Mitsubishi can’t go too far wrong.
SsangYong Rexton W Steve Moody is pleasantly surprised by the robust new SsangYong 4x4. SECTOR Large 4x4 PRICE £21,995–£25,995 FUEL 36.2–38.2mpg CO2 196–206g/km
I
doubt SsangYong is a name that often come up in discussions about the make-up of your fleet, having had a rather odd line-up of cars in the past. But things are most certainly on the change, and for the better: the facelifted Korando is a pleasant small SUV and the new Rexton W is a good value, no-nonsense seven seat off-roader. The cheapest version, the SX, comes in at £21,995 and it’s a big car that feels robustly built and looks the part too. The Rexton W is powered by SsangYong’s own 155bhp 2.0 litre turbocharged e-XDi200 diesel engine, mated to either a six-speed manual transmission or five-speed MercedesBenz T-Tronic automatic and it delivers enough power and is fairly refined as well, with plenty of torque should you need to go off-road. That’s an area the Rexton is pretty good in, with low ratio box, hill descent control and the good old-fashioned body on frame construction of most of the best off-roaders. It barely broke sweat on the muddy off-road section we took it on which, although hardly the Rubicon, was tougher than most 4x4 users would subject their cars to. The three tonne towing capacity is handy too, especially if you’re looking for something to drag kit to exhibitions or shows. On road it drives solidly if unspectacularly and the cabin is appointed with all the things you would desire in a big 4x4: 38 / fleetworld.co.uk
alongside the two seats stowed beneath the boot floor, standard equipment also include cruise control, air conditioning, electrically operated and heated door mirrors, leather covered steering wheel and iPod and Bluetooth connectivity. There is also a lot of space in the second row. When you consider that an entry-level Mitsubishi Shogun (which is slightly smaller) is about £5,000 more expensive you start to see that the Rexton W is worth considering. Only dealership coverage is a concern though, but it’s hardly a Ferrari – I’m sure if needed independent servicing could do the job for what could prove to be a very trusty workhorse.
SPOTLIGHT Mercedes-Benz C-Class
Class act...
As competition heats up in the compact executive sector, Alex Grant finds the new C-Class shares more than its design DNA with the brand’s luxurious flagship.
technology The S-Class has traditionally been a technological showpiece for Mercedes-Benz, steadily trickling the latest equipment into other models in the range. This time, it’s the C-Class which has benefitted first, inheriting optional all-LED headlamps and the same driver assistance package which can drive autonomously through slow traffic, park the car and brake automatically to reduce the severity of collisions. All interior motors have been upgraded to quieter versions, and the cabin now features an internetconnected COMAND infotainment system with Google Maps, route downloads and Facebook connectivity. Drivers can input numbers and letters by writing on a touch pad on the centre console and, for the first time, customers will be able to equip the car with adjustable self-levelling air suspension.
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drivetrains Mercedes-Benz was the first to use an efficient, refined diesel engine in a compact executive car with the 190 saloon and, like its ancestor, the new C-Class brings a few firsts to its segment. Launch engines comprise two efficient petrols with 154 and 182bhp, but the most frugal model is the 103g/km, 70.6mpg C220 BlueTec, using the carmaker’s new Euro 6 diesel engine. Gearboxes include two sixspeed manuals and a seven-speed automatic. Shortly afterwards, the range will expand to include a Renault-Nissan 1.6-litre diesel with 113 or 134bhp, the first in its segment to emit less than 100g/km without hybrid technology. Electrification will also follow as the diesel-electric C300 BlueTec Hybrid, which shares the drivetrain used in the E and S-Class, and a plug-in hybrid. Details of the latter are unconfirmed, but expect it to emit less than 75g/km CO2, and both are unique propositions in the compact executive segment.
design
Hoping to take its volume seller upmarket, styling now falls in line with the latest S-Class. It’s an aerodynamic new body with low front and rear overhangs and the option of aggressive-looking large alloy wheels, depending on which of the three model lines customers choose. As in the outgoing car, these also affect whether the badge is central on the grille, or on the top of the bonnet. Looks aside, aerodynamics are said to be best in class with a resulting drop in wind noise and 20% reduction in fuel consumption. It’s also much lighter than its predecessor, with 50% of the body made from aluminium, contributing to a 100kg weight loss despite an extra 95mm in length and 40mm in width. Most of the additional length is used to extend the cabin – the 80mm longer wheelbase is second longest in its class behind the Infiniti Q50.
what we think...
FLEET FACT Sub-100g/km 1.6-litre diesel, plus hybrid and plug-in hybrid will launch later in 2014.
The C-Class is up against the widest competitor group it’s ever faced, now including credible low-carbon rivals from Lexus and Infiniti as well as a customer base moving into crossovers. But, with four previous generations to perfect the formula, the brand’s biggest-selling model line has developed into an accomplished compact luxury car with impressive running costs, making this a valuable asset as it vies to grow its share of the sector from the other German brands. With newcomers on the way from Jaguar, Alfa Romeo and a replacement A4 looming, it had to be. AG
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xDRIVE. THE INTELLIGENT FOUR-WHEEL DRIVE FROM BMW. xDrive is the permanent four-wheel drive system from BMW, now available on selected 1, 3 and 4 Series models along with the X family. It ensures the best possible traction at all times, proactively enhancing agility and improving stability in bends or on uneven surfaces such as wet roads, ice or snow. Combined with the ABS and stability control systems, the intelligent xDrive system constantly monitors the driving situation and responds to changes in traction within milliseconds, subtly redistributing engine power to the wheel or wheels with the surest footing. Unlike other four-wheel drive systems, BMW xDrive is fully variable, meaning exceptional traction on difficult terrain. To find out more, call 0800 777 113 or visit www.bmw.co.uk/xdrive
Official fuel economy figures for the BMW range: Urban 13.8–62.4mpg (20.5–4.4l/100km). Extra Urban 26.2–83.1mpg (10.8–3.4l/100km). Combined 20.3–74.3mpg (13.9–3.8l/100km). CO2 emissions 325–99g/km. Figures do not include BMW i models. Figures may vary depending on driving style and conditions.
BMW Corporate Sales
bmwcorporate.co.uk Tel: 0800 777 113
The Ultimate Driving Machine
SWOTTeam This month the SWOT Team analyses the strengths, weaknesses, opportunities and threats for the new Nissan Qashqai against its closest rivals. Here is what they have to say...
Strengths
Weaknesses
Opportunities
Threats
AC A whole new level when it comes to efficiency, comfort, practicality and driveability. Qashqai has the cheapest BiK here over three years, saving up to ÂŁ1,600 over the Sportage.
AC It isn’t the roomiest in the segment, but other than that it is hard to find any major weaknesses with the car. For some the styling may not be overly exciting compared to rivals but this is still a good-looking car.
AC The 99g/km model will mean that there are a multitude of opportunities in the company car market. The old Qashqai was the segment benchmark, and the new model will be too.
AC Threats are everywhere when it comes to this segment with almost every manufacturer trying to get in on the act and there are some excellent rivals in the marketplace.
MJ Better looks, more refinement, and more space are enough to widen the potential audience and opportunity for Qashqai. Good residuals in spite of the volumes previously sold. Lower-mileage drivers could consider the impressive 1.2 petrol.
MJ There are an increasing number of players lining up against Qashqai. Market dominance, even where good experience prevails, can make buyers vulnerable simply to something slightly different.
MJ Qashqai has defined this sector, successfully conquesting many C-sector hatchbacks. More room, economy at 74.3mpg and more refinement from the latest 1.5 dCi makes this a real change. AS New Qashqai is bigger and more sophisticated with higher-quality materials and a higher level of fit and finish. Running costs should be amongst the lowest in the sector with 99g/km CO2 and a claimed 74.3mpg overall. MW How do you make a great car even better? Nissan just did, in just about every department.
44 / fleetworld.co.uk
MJ Fresh styling and lower running costs mean it is hard to find anything significant to criticise. AS The outgoing model was a ground breaker for Nissan and very successful, however this new arrival has grown in size, and grown considerably in price, both of which could be a problem for existing buyers. MW Although the Qashqai is all-new, it may just look a bit too similar to the old one, and has not progressed enough with its styling.
AS This sector has grown massively in size since 2007, and Qashqai has the enviable household name status now so this should help attract more business from fleets. The low running costs will also add to the appeal. MW Improved fuel consumption, CO2 and quality will impress many who have never considered a Nissan before.
AS Higher pricing levels mean that this model could be off the list for many company car drivers. Slightly smaller offerings from the premium brands such as the Audi Q3 are not far off on price. MW The threats for all of these vehicles, are from each other. It is just choosing one of these, or one of the many others available that will be the problem for most customers.
Martin Ward (MW) Manufacturer Relationship Manager, CAP
Nissan Qashqai
Alan Senior (AS) Director, Vehicle Information Publishing
Mark Jowsey (MJ) Commercial Director, KeeResources KwikCarCost
Strengths
AC Smooth 1.5 dCi offers low BiK. MJ Already a successful conquest car, 1.5 dCi will help. AS Lowest running costs in the sector. MW Improved all round compared to its already great predecessor.
Strengths
Kia Sportage 2 1.7 CRDi 2WD
AC Great looks, excellent warranty. MJ Strong residuals and styling, great pricing – a tremendous proposition. AS Still looks fresh and modern. MW Looks fantastic, very popular. AC Highest CO2 and BiK. MJ CO2 overtaken by newer competition. AS Running costs are high with CO2 and mpg way ahead of the others here. MW Would do even better if the CO2 figure came down dramatically.
OTR: £20,795 P11D: £20,615 Fuel: 54.3mpg CO2: 135g/km RV*: £9,003 (44%) BiK: 22% SMR: £2,490 Fuel costs: £6,947 Insurance: £2,100 Finance: £2,783 NI: £1,991 VED: £375 Cost per month: £790
Strengths
Peugeot 3008 Active 1.6 e-HDI FAP EGC
AC Spacious interior. MJ Comfortable, versatile, well-built and firmly planted on the road. AS Popular, with competitive deals. MW A good all-round car.
Standard equipment: • Radio/CD with Bluetooth • USB and auxiliary inputs • Cruise control • Rear parking sensors • Front/rear electric windows • Manual air conditioning • Half leather upholstery • 17-inch alloy wheels • Rain-sensing wipers Optional equipment: • Metallic Paint £495
AC A lack of SUV looks. MJ Manual version has similar operating costs to this EGC gearbox car. AS Not the prettiest looker. MW Not known by enough people to get it onto lists.
OTR: £21,345 P11D: £21,290 Fuel: 67.3mpg CO2: 110g/km RV*: £5,686 (27%) BiK: 17% SMR: £2,163 Fuel costs: £5,605 Insurance: £2,550 Finance: £2,874 NI: £1,616 VED: £40 Cost per month: £850
Strengths
Suzuki SX4 S-Cross 1.6 DDiS SZ5
Weaknesses
Suzuki SX4 S-Cross
Standard equipment: • DAB Radio/CD, Bluetooth/USB • Satellite navigation • Cruise control with speed limiter • Front/rear sensors, rear camera • Front/rear electric windows • Dual zone climate control • Auto lights and wipers • 17-inch alloy wheels • Collision avoidance, traffic sign recognition, lane warning Optional equipment: • Metallic paint £525
AC More space and better looks elsewhere. MJ Plenty of competition in this segment. AS Larger and more expensive. MW Looks a bit like the old one.
Weaknesses
Peugeot 3008
Nissan Qashqai 1.5 dCi Acenta Premium (2WD) OTR: £22,690 P11D: £22,635 Fuel: 74.3mpg CO2: 99g/km RV*: £9,168 (41%) BiK: 14% SMR: £1,763 Fuel costs: £5,077 Insurance: £2,430 Finance: £3,056 NI: £1,437 VED: £0 Cost per month: £761
Weaknesses
Kia Sportage
Andy Cutler (AC) UK Car Editor – Forecast Values Glass’s
AC Good to drive, high spec and good value for money. MJ Aggressive pricing puts the range-topping SZ5 trim within reach. AS Welcome newcomer, strong reliability reputation and very well specified. MW Good looking and great to drive.
Weaknesses
AC Not as spacious as the others. MJ Confusion with original smaller SX4. AS Needs a strong awareness push. MW An unknown quantity.
OTR: £21,749 P11D: £21,694 Fuel: 67.2mpg CO2: 110g/km RV*: £8,151 (38%) BiK: 17% SMR: £2,411 Fuel costs: £5,614 Insurance: £3,000 Finance: £2,929 NI: £1,647 VED: £40 Cost per month: £815
Standard equipment: • Radio/CD with Bluetooth/USB • Cruise control with speed limiter • Rear parking sensors • Front/rear electric windows • Manual air conditioning • Auto lights and wipers • 17-inch alloy wheels Optional equipment: • Metallic paint £520 • Panoramic roof £400 • Satellite navigation £735
Standard equipment: • DAB Radio/CD, Bluetooth/USB • Satellite navigation • Cruise control with speed limiter • Front/rear parking sensors, rear camera • Front/rear electric windows • Dual zone climate control • Auto lights and wipers • 17-inch alloy wheels • Leather upholstery Optional equipment: • Metallic paint £430
* 3yr/60k
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flashback a look back at the company cars of yesteryear
model Citroën BX
C
era 1982-1996
UK sales 219,545
itroën had not long become part of PSA when it began developing the BX, its replacement for the ageing GS and GSA which had come beforehand. This mid-size family car was larger than its predecessor, launching to fleet-friendly claims of high quality with low running costs and with a unique sense of style. But that last point goes back further than its ties to Citroën. Its futuristic body bore closer resemblance to the Volvo Tundra concept and Reliant FW11 prototype, both also designed by Italian styling house Bertone in the late 1970s, than its predecessor. But it was styleloving Citroën which turned the concept into a reality. The platform was all-new and would later be used by the Peugeot 405, but the BX’s differences were far from skin-deep. Its aerodynamic shape was a huge design departure from the default Ford, Vauxhall and Austin company car choices, making widespread use of plastic in its panels which were claimed to be 2030% lighter than steel versions. It meant this was one of the lightest cars in its class, offering better performance and economy from its core engine choices. Perhaps more noticeable was the carmaker’s famous hydropneumatic self-levelling suspension. Not only did this give Citroën highly praised ride quality, but it allowed the body to be raised for rough terrain, dropped for loading or hitching trailers and caravans and, with four-wheel drive available later in life, made the BX a popular and multi award-winning tow car. The interior was no more conservative than the bodywork. Switchgear was banked on either side of its
46 / fleetworld.co.uk
successor Citroën Xantia
instrument display, which featured a linear rev counter and rotating drum speedometer which operated like a bathroom scale. The downside was notoriously poor quality and fiddly operation - the BX switched to conventional stalk-based controls and circular instruments as part of a comprehensive facelift in 1986. Launch engines comprised two 1.4-litre and one 1.6litre petrol offering between 62 and 90bhp, joined by a 65bhp diesel for the 1984 model year as Citroën recognised the opportunity of the diversifying fleet sector. It was more refined than the engines used in rival models and, with fuel economy of 41mpg on the later turbodiesels, helped make the BX the UK’s most popular oil-burner long before the rest of the segment had followed suit. At the top end of the range, sports versions included 1.9-litre GT and GTI versions with 105 and 125bhp respectively, while the most powerful model in the range was the 158bhp 16V available from 1987, which shared its engine with the Peugeot 405 Mi16. Citroën also enjoyed a short motorsport career with the BX, resulting in a very rare 197bhp homologation special called the 4TC. The BX enjoyed a 12-year production run before being replaced by the ultra-conservative Xantia in 1994, and the last UK models filtered through showrooms for two years afterwards. Successive mid-life revisions had ironed out some of its character through its life cycle, but even at the end of its production run there was nothing quite like the BX in this sector.
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Rangeability
Sustainability Serviceability Affordability
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brilliant for business *5000 premature UK deaths a year due to combustion exhaust. Environmental Science Technology – Public Health Impacts of Combustion Emissions in the United Kingdom 21/03/12 (COMEAP – Committee on the Medical Effects of Air Pollution) Hybrid range fuel economy (mpg) Comb. 134 - 32.8; Urban 91.1 - 26.9; Extra Urban 80.7 - 37.9; CO 2 49 - 199g/km. The mpg fi gures quoted are sourced from offi cial EU-regulated test results. These are provided for comparability purposes and may not refl ect your actual driving experience.
FEATURE Contract Hire
Piecing it all together 10 steps to how you can you get the most from your contract hire agreement. Katie Beck explains all.
‘The most tax-efficient financing can come from using a mixture of contract hire, contract purchase and other funding methods.’
48 / fleetworld.co.uk
A
s one of the most consistently popular ways of inancing a new company car, contract hire has garnered a reputation as a cost-effective and comprehensive leasing method. But how can you ensure that you get the very best from your policy? We’ve worked with some of the biggest names in the contract hire market to bring you an insider’s guide into the points you should consider before signing on the dotted line...
Focus on whole life costs Isolating the whole life cost of an agreement will give a much clearer idea of potential savings than headline monthly bills might suggest. Separating values by list price, fuel consumption, CO2 emissions, depreciation and other variables can reveal the most cost-effective cars and vans to run over a given contract period. ‘By looking beyond rental value bands, leet managers can make signi icant improvements in cost ef iciency and sustainability,’ explains Peter Davenport, managing director of Motiva Group.
1
Consider a sole supplier agreement Splitting a contract between different suppliers can be a good way to drive down costs, but it some cases it can actually be more bene icial to sign with a sole supplier. Suppliers offer “partnership” bene its to encourage operators to work with them exclusively, which can offer a real incentive to commit to a single organisation. ‘By using multiple suppliers rather than a sole partner for their contract hire requirements many businesses are missing out on potential strategic cost bene its and ef iciency savings brought about by a “partnership” approach,’ says Chris Chandler, principle consultant at Lex Autolease. ‘A sole supplier agreement can also bring more tailored vehicle choices and allow businesses to proactively manage costs through whole life costs bene its.’
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Take a blended approach The most tax-ef icient inancing can come from using a mixture of contract hire, contract purchase and other funding methods. Depending on your inancial situation, accounting procedures and purchasing strategy, tax issues such as the rules for Writing Down Allowance – which were heavily revised in April 2013 – have varying effects. Work with your funding and leasing provider and inancial advisors to decide what blend is best for you.
3
Spread the load with pooled mileage Careful fuel management can also help operators run their vehicles as ef iciently as possible, from both a cost and tax perspective. Some suppliers
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offer pooled mileage contracts to help customers gain maximum value from their contract hire packages. ‘Pooled mileage contracts can be rolling agreements where the usage of vehicles can be monitored and altered to avoid excess mileage charges or penalties,’ says Peter Davenport, managing director of Motiva Group.
Use your supplier to negotiate discounts Your supplier should not only be able to provide all the data necessary to make an informed decision on which vehicles will best suit the needs of your leet, but be able to negotiate manufacturer discounts on your behalf as well. Your supplier should have an insight into the market and a presence within the industry; approaching a manufacturer with the backing of a wellrespected contract hire company will make all the difference when it comes to securing a good deal.
5
Take a “pick and mix” approach A good provider will be able to offer a “pick and mix” menu of administrative services at a relatively low price. Options could include Motor Insurance Database (MID) updates, providing service or maintenance touch-points, capturing mileage data and even monitoring driver behaviour; perhaps through the installation of telematics software as part of a fuel reduction campaign. The lexibility of a “pick and mix” approach will allow you to isolate the most relevant options for your operation, reducing wastage and ensuring the very best value for money.
6
not to outsource any of your fleet’s admin functions,’ says David Hoskings, CEO of Tusker.
Gain insight into your fleet When there are questions to answer regarding leet policy, when legislation changes or new technology becomes available, your contract hirer should be able to offer you invaluable insights. ‘Just look at the situation regarding fuel types – for a long time, a diesel-only policy seemed like the perfect one-size its-all solution for any leet. Now, the outlook is not so clear and diesel-only may not be the best solution. 'A good provider will be able to assess your leet usage and identify where changes can be made for your bene it, both in terms of costs and practicality, using real-world experience and a mix of transport solutions such as ef icient turbo-petrol models, different hybrid types and pure EVs,’ explains David Hoskings, CEO of Tusker.
8
Pay more upfront A larger upfront payment can signi icantly reduce the interest payable on the remainder of the contract, and thus help keep costs down. Ian Hughes commercial director at Zenith, advises: ‘If cash low is not an issue but you want the VAT reclaim bene its of contract hire (up to 50% VAT reclaim on inance payment and 100% on maintenance subject to your company reclaim rate) this could be an option to reduce the interest payable on the lease rental. For example, you could consider paying 12 months upfront or even four annual payments for a four year lease.’
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Consider signing with a manufacturer The contract hire market is changing, with the arrival of good value manufacturer deals that are not to be ignored. Neal Francis, managing director of Pendragon Contracts, reveals the company has seen contract hire offers almost double in the last year. ‘12 months ago I don't think anyone would have predicted how ultra-aggressive manufacturer contract hire offers would become to shift broader sales volume in the UK to sustain their production base,’ he says.
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Make use of online features Online ordering and other functionality should be included as part of your contract hire package. Having contract details readily accessible through an online portal will make updating and editing information quicker and less arduous for everyone involved. ‘If an interface is good, it will keep your drivers engaged online and save significant admin time for beleaguered fleet managers, especially if you choose
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FEATURE 2014 Residual Values
What lies ahead... We asked four experts to give their predictions on the health of the used market this year, and the likely winners and losers.
What is the used car supply going to be like this year? Derren Martin, Black Book Live senior editor: ‘Although there was an increase towards the end of 2013 in self registrations and forced registrations, these should be manageable from an overall market perspective. Indeed, some dealers have welcomed the supply of those vehicles due to recent shortages of quality used car stock. Manufacturers are now much more aware of the need to dispose of these vehicles responsibly and we do not expect any shocks to the market as a result.
The RV panel DM – Derren Martin, Black Book Live senior editor, CAP RW – Roger Woodward, managing director, CD Auction Group DS – Dylan Setterfield, Gold Book senior forecasting editor, CAP DW – Daren Wiseman, valuation services manager, Manheim DB – Dean Bowkett, technical director and chief editor, EurotaxGlass’s
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Roger Woodward, managing director of CD Auction Group: ‘Last year was characterised by a shortage of three to four year old, ex- leet vehicles which form the core of the used car retail business. I don't see that changing in 2014 which means the fundamental of relatively high, stable wholesale auction values is unlikely to change. ‘There are two factors at work here. The irst is simple maths – three years ago new leet registrations were lat (up 1% over the prior year) and retail registrations were down 18%.
So, used cars are still going to be in short supply. Second, we hear companies are still reluctant to invest in new vehicles and release stock, despite the improving economic conditions. ‘Against this, the manufacturers are still pushing new product into the UK market and franchised dealers I have spoken to say large incentives remain in place, at least for the irst quarter and maybe even beyond.
with all macroeconomic data underpinning our forecasts for the next 5 years available to Gold Book iQ subscribers. ‘We commented last year on the likely impact of economic recovery in some Western European markets and still believe these will become more attractive to manufacturers than the heavily discounted UK market. Indeed, we are already hearing reports of increased UK lead times for certain desirable vehicles.’
DM: There is clearly signi icant variation by model, but in general there will be enhanced performance for those models where used volume is expected to decrease, reversing the overall market trend. This may be due to lower three to four year old volumes resulting from reduced leet registrations such as Toyota Avensis and Honda Accord, or a return to more usual volume patterns of nearly new vehicles for models such as Ford S-Max.’
Dylan Setterfield, Gold Book Senior Forecasting Editor, CAP: Over the year, we expect to see increased used car supply due to the return at contract end of increased leet registrations in 2010 and 2011 of +10.3% and +4.6%. In the context of historic leet volumes, however, we see this increased supply only as a return to expected levels of business. ‘The overall impact is a return to normal aging patterns following the shortages which resulted in such resilience in used car prices through 2012/13.’
DW: ‘Looking at the bigger economic picture, house prices are on the rise, with the average asking price in England and Wales for January 2014 at £243,861, compared with £229,429 in January 2013 (source: Rightmove). When property prices are positive, it tends to follow that the general consumer and business confidence is also on the rise. And, as people feel more secure with their spending, car purchases – new and used – come back on the agenda. For the fleet sector, this means that there is demand out there for de-fleeted stock in the wider market.’
DS: ‘In CAP Gold Book, Year Over Year percentage (YOY%) market de lation is segmented by sector and fuel type and then adjusted for individual vehicle performance. In general, the best performers will tend to be smaller cars, with petrol and diesel broadly similar, but petrol is expected to perform better than diesel in Lower Medium and Executive cars and worse than diesel in the Upper Medium, Supermini and City Car sectors. The difference observed in the smaller car sectors is attributed to the relative strength of the new generation of low emitting diesel engines.’
Daren Wiseman, valuation services manager, Manheim: ‘There has been some really positive news coming out of the UK automotive sector of late, with new vehicle registrations reaching their highest peak since pre-recession and UK car production at a six-year high. However, it is likely that many of these vehicles won’t enter the used market for another 12 to 18 months. As a result, 2014 is likely to continue in much the same vein as 2013 when it comes to supply.’ Dean Bowkett, Technical Director and Chief Editor, EurotaxGlass’s: ‘The supply of 1-5 year old cars bottomed out last year for the UK, 19.4% lower than before the crisis and it is now starting to rise. But the number of 2-4 year old vehicles available this year will still be 15% lower than in 2007, that is 1.1 million less cars which would typically go through dealer’s hands.’
What wider economic conditions do you see affecting the value of used cars? DS: ‘Although some commentators see the UK economy as a star performer this year, relative to the rest of Europe, we remain cautious and would describe this year’s growth as modest, with no signi icant concerns regarding the underlying metrics. Our research has shown that the impact of macroeconomic variables is different by vehicle sector and we have differentiated our forecasts accordingly,
DB: ‘Whilst the UK spent 2013 racing ahead of Europe we think the rate of new car sales growth will slow this year and may optimistically just reach 2.3m – an increase of just over 1.5%, although we are forecasting a slightly more conservative 1.3% at the moment. The reason for this is because we think there is a danger that the UK market is starting to overheat and OEMs will also look at the opportunities to encourage sales back in the depressed Eurozone which may mean having to spend slightly less money, with the strengthened pound making sterling incentives more expensive.’
What particular sectors and/or models are going to do well this year? DB: ‘SUVs will continue to dominate this year as will low CO2 emission vehicles, particularly the latter in the leet segment. The ever diversifying range of the premium brands will continue to eat into the volume brands’ market share although we expect the resurgent Jaguar Land Rover and Volvo to make further headway in 2014 with their strong model ranges, relatively low discounting strategy and a loyal and growing following. Hybrids will become increasingly more common but I still struggle to see a huge uptake in pure EVs, at least this year.’
What particular sectors and/or models are likely to do worse? DM: ‘We expect to see larger reductions for those models where we have been seeing increased levels of self or forced registrations, or increased levels of manufacturer discounting. ‘Some manufacturers are increasing volumes in the daily rental sector as they seize the opportunity to capitalise on the volume gap left by some manufacturers reducing allocations to this area of business and they continue to focus on the battle for market share above pro itability. This will have an inevitable impact on nearly new values from the second quarter onwards for certain models.’ DS: ‘Used electric vehicles are expected to remain under price pressure following the irst leet returns and an increased level of demonstrators needing to be disposed of. Some vendors will ind they have to “bite the bullet”. ‘At the more expensive end of the market, prices for Large Executive, Luxury Executive, Sports and Supercars will reduce by more than the overall market from their current positions, which are viewed as being unsustainable, particularly as volumes are likely to increase.’ DB: ‘In the UK leet sales (excluding daily rental) increased in real terms in 2013
fleetworld.co.uk / 51
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FEATURE 2014 Residual Values
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however private sales grew even stronger resulting in leet sales dropping 1.2pp to 32.8% of total sales for 2013. For the year ahead UK leet sales are likely to remain lat to minimal growth with private sales continuing to be the main growth driver, thanks to a growing grey company car leet (company car drivers taking a cash allowance instead to fund their own car) who are taking advantage of the strong discounts and low funding rates on offer.’
Are there any other mitigating factors that might affect RVs positively or negatively? DS: ‘Although some have disputed the impact of seasonality, there is clear evidence that the seasonality of leasing conversion rates at auction and the performance against CAP Clean is remarkably consistent. This should not be a surprise due to the natural shifts in supply and demand which have always been experienced throughout the calendar year in the UK used market.’ DM: ‘Much has been made of the growth of PCP deals in the UK, but this increase is not directly equivalent to an increase in used car supply. The irst of these are likely to begin iltering into the used market from this summer onwards and these vehicles represent a steady future supply of quality used cars for dealers. Those best placed to sell drivers up into their next vehicle will be the ones who bene it the most, but we do not expect the market to be suddenly deluged with ex-PCP cars as deals expire. ‘Seasonality is also a factor when it comes to the three or four year fleet cycle. For example, the new vehicles which were in fashion in 2011 are now making their way into the used market in large numbers. This is not a problem for fleets, so long as the approach to remarketing takes into account market supply and demand trends, ultimately selecting the correct disposal channels, geographic distribution and the timing of stock release to maximise residual values.’ DB: ‘The biggest factor not just for 2014 but beyond as well is the whole area of Total Cost of Ownership for both the corporate leet managers and the company car drivers. The problem at the moment is whilst there are very real incentives for leets to
52 / fleetworld.co.uk
buy these low CO2 emission vehicles the inancial bene its in the used car market are far more limited. This does raise the risk of a potential imbalance between the demands of a new and a used car buyer.’
What other advice would you give to fleets about their 2014 defleeting strategy? RW: ‘Cost of ownership is becoming increasingly important in the used retail market, so it's obvious that favourites such as superminis will do well while gas guzzlers will struggle, except with international buyers. Fleet managers need to think about spec and colour at the acquisition stage and not be tempted by low-rent, leet specials – unless you're in daily rental.’ RW: ‘Provided the offers are on the right vehicles, order now, take advantage of the incentives and then remarket your used leet into a strong wholesale market to maximise residual value. ‘Certainly don't be thinking about extending contracts or running vehicles beyond their typical lifespan. Values may be high but retail demand is patchy and professional buyers are only bidding on good quality, quick-to-retail stock. Poor quality, over age cars are being left on the lot.’ DS: ‘It’s an old maxim, but the irst opportunity for sale is usually the best. Depreciation is a fact of life and stock needs to be turned effectively by both leets and dealers.’ DM: ‘We would advise leets to monitor the used market closely, ideally via real-time valuations such as Black Book Live, and adjust their reserves accordingly. Monthly pricing is no longer agile enough in a fasterpaced environment which changes from day to day. Sellers should also be realistic in their expectations. As always, when it comes to condition, leets should not expect to achieve CAP Clean for an average condition car.’ DW: ‘It is important that fleets continue to take a sophisticated approach to their vehicle selection at the start of the contract and the choice of remarketing channel at its end. There are still a few vehicles in niche colour combinations which arrive in the auction halls from a user chooser policy; however, most fleets
are now far more prescriptive with their vehicle mix, ensuring that the right colours and specification to maximise residual values are selected from the outset.’ DW: ‘It is then essential to ensure that de- leeted stock is prepared effectively for remarketing. Again, most leets are doing a good job to ensure that the vehicle is well-presented and with all of the correct paperwork; however, we do see the occasional vehicle which does not have a complete service history or is missing a key. Inevitably, these vehicles perform less well at auction. ‘Looking at the speci ics, the average price of a de- leeted car at auction increased by £178 during 2013, re lective of a fall in average mileage of 614 to 59,962 while the average age remained at 52 months. The past 12 months have been fairly good for leasing companies looking to gain best value for their de- leet stock. It’s largely been a seller’s market and residual values have been strong. While all the indicators point to another good year for vendors in 2014, the leasing companies that have an in-depth knowledge of the market, along with a lexible supply chain, will continue to achieve the best value for vehicles.’ DB: ‘2014 is going to be far more stable than the last ive years so we should see far less sign of values shooting up just to drop away a few months later; however we do think the general trend for the year is down. That said if you get products to the right standard and they are in the right segments, e.g. SUVs, premium brands and even the volume brands at the right price should do reasonably well.’
‘It's an old maxim, but the first opportunity for sale is usually the best.’
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0870 120 2910
enquiries@iamdriveandsurvive.co.uk
www.iamdriveandsurvive.co.uk/fw
MARKET OVERVIEW Telematics and Tracking
Fleetmatics PLC Fleetmatics Group PLC is a global category leader, providing a Software-as-a-Service (SaaS) fleet and fuel management solution to SMBs. Fleetmatics serves more than 20,000 customers, with over 417,000 actively subscribed vehicles worldwide. The business is now trading as a public company and in October 2012, it raised more than $100 million from investors during its initial public offering. The company’s solutions offer real-time insight into vehicle activity, which reduces operational costs, provides actionable business intelligence and improves customer service. Its SaaS and mobile application gives businesses anytime access to real-time data about their company.
Contact: Sales infoUK@fleetmatics.com
Tel: 0800 975 4566 www.fleetmatics.co.uk
eDrive Fleet (part of e-Drive Group) eDrive Group provides a comprehensive range of telematics solutions to fleet operators across the UK, Ireland, and Europe. Supplying and installing the latest technology on the market, the company advises on how tailored telematics & tracking systems can improve Maintenance, Driver Safety, Fuel Management, Navigation (18% cut in journey times), Emissions and Compliance. eDrive Group can provide a single point of contact for a range of vehicle requirements which also cover services such as Fleet Branding, Vehicle Camera solutions, Collision Avoidance Systems, and Nationwide Installation Service.
Contact: Simon Murray info@edrivegroup.com
Tel: + 44 870 7707 010 www.edrivefleet.com
Ctrack Ctrack provides advanced vehicle tracking and telematics solutions that deliver immediate benefits and financial returns resulting from the ability to better manage a fleet operation. These 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 750,000 tracking systems fitted in 56 countries across five continents.
Contact: Steve Thomas steve.thomas@ctrack.co.uk
Tel: 0845 055 8555 www.ctrack.co.uk
Isotrak Isotrak has established itself as the market’s most innovative and trusted provider of vehicle tracking and telematics solutions. We save our customers time and money through the implementation of fully integrated systems that enable them to cut fuel costs, CO2 emissions, and achieve a raft of related efficiencies. Isotrak works with leading companies in every sector, from businesses looking for a bespoke solution to large blue-chip companies managing fleets of 2,000+ vehicles. With all clients, the company builds long-term partnerships that deliver value and improve the bottom line. The company supports over 45,000 vehicle connections for customers.
Contact: Jason Price info.uk@isotrak.com
Tel: +44 (0) 1908 540700 www.isotrak.com
Motiva Group
MiX Telematics Europe Ltd MiX Telematics is a leading global provider of fleet and mobile asset management solutions delivered as SaaS to customers in 112 countries. The company’s products and services provide enterprise fleets, small fleets and consumers with solutions for safety, efficiency and security. MiX Telematics was founded in 1996 and has offices in South Africa, the United Kingdom, the United States, Uganda, Brazil, Australia and the United Arab Emirates as well as a network of more than 130 fleet partners world-wide. MiX Telematics shares are publicly traded on the Johannesburg Stock Exchange (JSE: MIX) and on the New York Stock Exchange (NYSE: MIXT).
The addition of fuel card technology helps make Motrak, a new next-generation telematics system, stand out from the crowd. Devised by vehicle solutions business Motiva Group, Motrak has been redeveloped for 2014 and can now integrate fuel card data to give fleet managers precise costs per mile. Innovative internet-based software also features mileage capture, route overlay, driver league tables, traffic warnings and excess mileage alerts that can each be tailored to individual customers. Motrak helps reduce costs, mitigate risk and increase efficiency with flexible pricing plans, free installation and exceptional levels of service.
Contact: Mergim Butaja mergim.butaja@mixtelematics.com www.mixdatatrak.co.uk
Contact: Paul.Holdcroft paul.holdcroft@motivagroup.co.uk www.motrak.co.uk
54 / fleetworld.co.uk
Tel: 07712 855319
Tel: 01782 221100
FLEETW RLD Navman Wireless
Quartix Limited
Navman Wireless, the UK’s most chosen vehicle tracking and telematics specialist, ignited the industry by making real time fleet monitoring accessible to all and reinvented the industry with the game changing M-Nav, the first combined fleet tracking, messaging and satellite navigation system. Its products are designed to give managers instant access to vehicle location and driver behaviour information and are proven to reduce fleet running costs, increase business productivity, enhance customer service and improve driver safety. Navman Wireless continues to lead the vehicle tracking evolution with its Online AVL technology and has recently reinvented driver performance monitoring with its Smart Telematics solution.
Founded in 2001, Quartix has grown to become one of the UK's most respected vehicle tracking companies. Today, more than 5,000 customers across almost all sectors of the UK economy use the system, including government organisations, housing associations, construction firms, hospital trusts, the emergency services, SMEs and large British brands. Over 43,000 units were installed during 2013. The system is comprehensive and easy to use and includes an advanced driving-style monitoring suite, which improves the safety of the mobile workforce and reduces fuel costs (by 18% for customer Ginsters Ltd). With a network of over nearly 200 experienced engineers, the award-winning Quartix system is available throughout the UK.
Contact: Sales Team info@navmanwireless.co.uk www.navmanwireless.co.uk
Contact: Dale Lewis Dale.Lewis@quartix.net www.quartix.co.uk
Tel: 0845 521 1133
Quattro Telematics Ltd For over a decade, Geotab has been a proven industry leader in fleet management and vehicle telematics. Fortune 500 companies, including 30% of the top ten and 10% of the top 100 fleets in North America, rely on Geotab's technology. As the sole developer of both their software suite and their in-vehicle hardware, Geotab has engineered a comprehensive end-to-end solution used by multinational organizations and small-to-medium sized companies alike. The technology is easily customized to meet fleet needs today, while remaining entirely scalable and flexible to cater to evolving requirements. Geotab's products are sold and supported worldwide, with Quattro Telematics as their preferred UK partner.
Contact: Russell Cockerton info@quattrotelematics.com www.quattrotelematics.com
Tel: 01628 854 439
Teletrac, a Trafficmaster Company Teletrac’s Fleet Director® is the most advanced and interactive fleet automation software on the market, equipped with easyto-use navigation and safety capabilities. With innovative features that include on-board navigation, lane guidance and two-way messaging, it is the premier software for fleet tracking intelligence. Tracking more than 250,000 vehicles globally, Teletrac saves fleet owners time and money while reducing their carbon footprint. Teletrac customers report up to 30% lower fuel usage, an average of 15% less driver overtime, 12% higher productivity and less unauthorised vehicle use.
Contact: Mark O’Neill fleetsales@teletrac.co.uk
Tel: 0870 460 5693 www.teletrac.co.uk
TRACKER Network UK Limited
TomTom Business Solutions TomTom Business Solutions is one of the world’s leading providers of fleet management solutions and professional telematics services. Currently helping over 27,000 customers with over 330,000 live vehicles maximise efficiency, reduce costs and improve profit margins, in 25 different countries across the globe. TomTom Business Solutions gives you the visibility you need to maintain control of your vehicles and drivers, whilst cutting cost, improving productivity, boosting customer service, complying with legislation and reducing carbon footprint through monitoring driver behaviour. This helps you run greener, safer and more efficient vehicles, and gives you a great return on investment.
Contact: Giles Margerison uk.business@tomtom.com www.tomtom.com/business
Tel: 0870 0136663
Established in 1993, TRACKER is the UK’s number one supplier of vehicle tracking services, with over a million systems installed to date. Award wining TRACKER Fleet uses groundbreaking patented technology to allow businesses to operate at maximum efficiency. Cost savings are provided as TRACKER Fleet highlights fuel inefficiencies and reduces overtime claims. Customer service levels are improved as fleets are routed effectively, ensuring deliveries and collections are made on time. Additionally, driving styles can be monitored to ensure best practices and compliance with duty of care. Operating across a wide range of industries, TRACKER provides the knowledge and experience you would expect, coupled with support you can rely on for a smooth running and efficient fleet.
Tel: 0207 2559774 Contact: TRACKER Sales enquiries@TRACKER.co.uk
Tel: 0845 604 6098 www.TRACKER.co.uk
fleetworld.co.uk / 55
Is there any software or mapping required on the customers PC? Does your system allow the geographical “ring fencing” of particular locations? Does your system have the facility to send alerts by text message in the event of a security alert? Does the system accept inputs from ancillary equipment such as panic alarms? Can the system recognise and report on different drivers of the vehicle? Does your system have a stolen vehicle location facility? Can the police locate the stolen vehicle using your system? 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)
Key to services
Is your system internet based?
MARKET OVERVIEW Telematics and Tracking
CMS SupaTrak –
3 3
Crystal Ball Ltd – – –
3 3
Ctrack Server & internet options No unless on Server options
Flexible Flexible
E-Drive Flexible Flexible
Engigma –
3 3
Fleetmatics PLC –
36 36
Isotrak –
36 36
MiX Telematics Europe Ltd – – – –
12 12
Motiva Group –
Navman Wireless
12 12
Quartix
–
3
1
Quattro Telematics Ltd
–
*
3
3
Teletrac, a Trafficmaster Company
–
12
TomTom Business Solutions
12
24
TRACKER Network UK Limited
–
3
3
Service provided
Service unavailable
56 / fleetworld.co.uk Non Non contract contract
week
1
* coming late 2014
FEATURE Taxation & Funding
Cleaning up data in Excel Professor Colin Tourick carries out some early spring cleaning on his spreadsheets. In the three years since we started this series of articles we have looked at many finance-related fleet management topics including VAT, company car tax, corporation tax, capital allowance, lease vs buy and the use of discounted cash flow. We have received some nice feedback over the years but there is one topic that seems to interest readers more than any other: the use of Excel to carry out day-to-day fleet management tasks. Last month we looked at Excel’s VLOOKUP feature, which allows you to merge information from two Excel worksheets. We imagined you manage a large fleet and need to produce a monthly report showing the amount payable to employees who have driven their private cars for business purposes. The data was spread across two Excel worksheets, one containing drivers’ details and the other containing their business mileage. We created a VLOOKUP formula that brought data from one sheet into the
other, using the drivers’ car registration numbers as part of the lookup formula (table 1). This worked perfectly. However, the registration numbers on both spreadsheets had no blanks. For example AB06 123 was actually shown as AB06123 on both worksheets. Had it been AB06 123 on one sheet and AB06123 on the other, VLOOKUP wouldn’t have worked. Had this been the case, what could we have done? The easiest thing to do would be to highlight column A and replace all of the blanks. You do this clicking the A at the top of column A, to highlight the whole column, then press the Control and H keys simultaneously to bring up the Find and Replace box, then enter a blank space in the Find What box to tell Excel to “ ind a space”. As we don’t want Excel to replace the space with anything we don’t enter anything into the Replace With box. If you now click Replace All, all of the blank spaces in the registration numbers will disappear and you’ll have
achieved your objective. Now you will be able to go ahead use the VLOOKUP function in the sure knowledge that the registration numbers are formatted identically on both worksheets. Let’s now look at another situation. You manage a fleet of 600 vehicles and TABLE 2
1
A
B
Reg No
Mileage
2
AB06123
256
3
BD59AHP
64
4
DA59JER
950
5
EA61PFA
834
6
EG59CHO
720
7
ER61USM
66
8
LK59PAW
98
9
LM61WOS
135
10
SP60PAL
264
11
SU61UWM
630
TABLE 1 A
B
C
D
E
F
G
1
Reg No
Driver name
Department Ref
Model
Mileage reimbursement rate (per mile)
Business mileage
To be reimbursed
2
LK59PAW
Alan Jones
AAG
Audi A4 2.0TDi
0.52
3
LM61WOS
Joanna Kahn
KRE
BMW MINI 1.6 Cooper 3DR
0.52
4
DA59JER
Peter Anthony
AAG
VW Golf 5dr 2.0GT TDi Sport 170
0.36
5
SP60PAL
Jane Callila
PPO
Mazda6 2.0TS
0.38
6
BD59AHP
Paul Kalms
LOP
VW Passat 2.0TDi
0.44
7
ER61USM
Rose Aarons
LOP
Audi A3 5dr Sportback
0.22
8
EA61PFA
Mary Adams
FIN
BMW 320D SE AUTO
0.54
9
AB06123
Len De Vere
FIN
Mercedes-Benz C220CDi 4dr
0.63
10
EG59CHO
Jenny Macintyre
KLL
Volvo V70 Estate 2.4 D5 SE
0.24
11
SU61UWM
Barry McQueen
PES
Land Rover R/R Sport 2.7 TDV6
0.39
58 / fleetworld.co.uk
=vlookup( VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])
in association with
For further ways to reduce your fleet tax bill, visit business.peugeot.co.uk or call the Peugeot Fleet centre on 024 7688 4644
TABLE 3 A
B
C
Cost to company
Department Ref
1
Name
2
John Brown
£333.00
DF
3
Clive Lawton
£600.00
FE
4
Steve Anderson
£800.00
EX
5
B Arla
£560.00
FI
6
Pete Collins
£2,320.00
OP
7
Lance Henry
£800.00
AD
8
Phillippa Anderson
£150.00
OP
9
Pete Collins
£220.00
OP
10
S Anderson
£650.00
EX
11
P Collins
£290.00
OP
12
C Lawton
£150.00
FE
13
J Brown
£180.00
DF
14
P Collins
£620.00
OP
15
J Brown
£375.00
DF
16
Beev Arla
£196.00
FI
17
L Henry
£166.00
AD
you maintain a 1,000-row spreadsheet listing all of the charges your contract hire company has made for end-ofcontract damage over the last five years. You want to work out the total cost of such charges, by driver. You look at the sheet and immediately notice a problem: you can’t sort it by driver name because in some cases it shows the driver’s full name and in others just their initial and surname. In table 3 is an extract of the list. How are you going to do the analysis? You need to clean up the data so that you can bring together all of the damage charges for each driver. There are a variety of ways Excel can do this but here we’re going to put the employee’s initial into column D and their surname into column D, then put their initial, a space and their surname into column E and then we’ll look at how to subtotal the total cost of their damage recharges. So the steps are to use the LEFT function to tell Excel to enter the first character from cell A2 into D2 (the initial), as in table 4. Then tell it to take all the characters to the right of the blank in cell A2 and enter them into E2 (the surname), as in table 5. Then tell it to concatenate – link together – the contents of cells D2 and E2, putting a blank space in between them, thereby giving you initial, blank and surname in F2 (table 6). If you then highlight cells D2 to F2 and double click the little square black box that appears in the bottom right corner of F2, you’ll replicate the same results all the way down your spreadsheet. If you then highlight the whole spreadsheet and do Data>Sort, then click on “My data
TABLE 4 fx
D2 A 1
Name
2
John Brown
=LEFT(A2,1)
B
C
Cost to company
Department Ref
£333.00
D
J
DF
TABLE 5 fx
D2 A 1
Name
2
John Brown
=RIGHT(A2,LEN(A2)-FIND(“”,A2))
B
C
D
E
Cost to company Department Ref £333.00
J
DF
Brown
TABLE 6 fx
D2 A 1
Name
2
John Brown
=CONCATENATE(D2,“”,E2)
B
C
D
Cost to company
Department Ref
£333.00
DF
J
E
F
Brown
J Brown
fleetworld.co.uk / 59
FEATURE Taxation & Funding
in association with
For further ways to reduce your fleet tax bill, visit business.peugeot.co.uk or call the Peugeot Fleet centre on 024 7688 4644
has headers” and sort by Name, you will get the result in table 7. That’s a much better position; each employee’s costs have been brought together. We still need to subtotal by employee and we do that by highlighting the range to be subtotalled (in our case all cells from B1 to F17: we can ignore column A because it still contains a mess of irst names and initials). Then click Date>Subtotal and a dialogue box will pop
up. Tell it that at each change of Name it should add a subtotal of Cost to company. Click the “2” in the square box on the far left and you get what is shown in table 8. This of course is exactly what you wanted, a subtotal of damage costs by employee. Incidentally, if you had clicked the square box showing “3” you’d have seen all the data and could have scanned down to check that you hadn’t inadvertently merged the data on two identically named
people who work in different departments. A fleet manager’s life can be full of such situations: your data is formatted inconsistently so you have to clean it up before you use it. The reason for going into such depth on this subject this month is that next month we are going to start looking at pivot tables, and you really have to make sure you have clean data before you start playing with those.
TABLE 7 B
C
D
E
F
1
Name
A
Cost to company
Department Ref
Initial
Surname
Name
2
B Arla
£560.00
FI
B
Arla
B Arla
3
Beev Arla
£196.00
FI
B
Arla
B Arla
4
Clive Lawton
£600.00
FE
C
Lawton
C Lawton
5
C Lawton
£150.00
FE
C
Lawton
C Lawton
6
John Brown
£333.00
DF
J
Brown
J Brown
7
J Brown
£180.00
DF
J
Brown
J Brown
8
J Brown
£375.00
DF
J
Brown
J Brown
9
Lance Henry
£800.00
AD
L
Henry
L Henry
10
L Henry
£166.00
AD
L
Henry
L Henry
11
Philippa Anderson
£150.00
OP
P
Anderson
P Anderson
12
Pete Collins
£2,320.00
OP
P
Collins
P Collins
13
P Collins
£220.00
OP
P
Collins
P Collins
14
P Collins
£290.00
OP
P
Collins
P Collins
15
P Collins
£620.00
OP
P
Collins
P Collins
16
Steve Anderson
£800.00
EX
S
Anderson
S Anderson
17
S Anderson
£650.00
EX
S
Anderson
S Anderson
TABLE 8 A 1
Name
B
C
D
E
F
Cost to company
Department Ref
Initial
Surname
Name
4
£756.00
B Arla Total
7
£750.00
C Lawton Total
9
£333.00
J Brown Total
12
£555.00
J Brown Total
15
£966.00
L Henry Total
17
£150.00
P Anderson Total
22
£3,450.00
P Collins Total
25
£1,450.00
S Anderson Total
26
£8,140.00
Grand Total
60 / fleetworld.co.uk
SPECIAL FEATURE Salary Sacrifice
in association with
CARS have always been an incredibly popular part of a benefits package for both jobneeds users and perk drivers. But a growing number of fleets are now recognising that they can open up this benefit to all of their staff, using salary sacrifice schemes to provide employees with access to a brand-new car at a price much cheaper than if they sourced it themselves, whilst benefiting the company too. With an increasing number of fleet funding firms now entering the salary sacrifice marketplace, we asked some of the specialists for their views on how to implement such schemes efficiently and effectively.
Worth the sacrifice
ยก
fleetworld.co.uk / 61
SPECIAL FEATURE Salary Sacrifice
¡ 1
Initial considerations
Recognise that salary sacrifice is tried and tested No doubt during 2014 we will continue to see many opinions and surveys concerning the take up and viability of salary sacrifice for cars. While much of this commentary may be negative and highlight a myriad of potential pitfalls, risks and problems associated with salary sacrifice we should recognise that many employers (including the “Big Four” accountancy firms and several “Magic Circle” law firms) have introduced successful schemes that now help to maintain a motivated and loyal workforce. Nowadays it would be very hard to argue that employees don’t want a degree of flexibility to choose how they wish to be remunerated. As many surveys tell us that a company car remains one of the most sought after benefits, a car scheme that enables employees to benefit from their purchasing power of their employer, and offers tax and National Insurance savings, should clearly help to motivate, retain and reward valuable employees. Days Contract Hire
Understand the product Recognise salary sacrifice for what it is: a superb employee benefit that delivers engagement, satisfaction and retention. It is a way to offer considerable savings to all of your employees through the power of corporate purchasing as well as tax efficiencies. A good salary sacrifice scheme compliments rather than competes with your existing company car offering whilst offering a compelling alternative to “grey fleets”. Tusker
62 / fleetworld.co.uk
Look at whether salary sacrifice is right for your company This will include an assessment of takeup and any cost and time incurred in the implementation. There are ways to offset implementation costs through the structure of the scheme and salary sacrifice calculation, however a small amount of time will be needed by internal stakeholders throughout the life of the scheme. You should carry out an employee survey to assess potential interest and also assist in the design of the scheme. You will need to have the ability to promote the scheme internally, working closely with your provider. If you do not have open internal communication channels it may not be a worthwhile and valuable addition to your employee benefits package as you will not be able to sufficiently promote its value to your employees. From our experience a company is more likely to adopt a scheme where there is a large employee base, a high proportion of eligible employees and it has a pre-existing benefits platform. Other factors include having wide adoption amongst similar companies and a large proportion of cash takers. Zenith
Pay attention to the scheme policy design – lower-emitting cars work best A contract hire car under salary sacrifice works because it effectively reduces an employee’s gross pay, the amount that is normally exposed to PAYE and National Insurance. Instead of being paid their full salary, an employee can receive an equivalent non-cash benefit such as a car which by design could also form part of a flexible benefits package. As less statutory deductions (tax and National Insurance) are made, it provides a “discount” towards the cost of the benefit provided, making it financially attractive for both the employee and employer. There is a further important detail. As the car is treated as a company car it is deemed a Benefit in Kind. This means company car tax is payable by the employee with the employer liable for the Class 1A National Insurance Contributions. This additional cost is an example of why scheme policy design becomes very important if cars are offered under salary sacrifice. Ensure the available vehicle emissions are low, as the higher the official CO2 figure of the car, the more tax is due, which has the potential to wipe out any savings from the reduced taxable income. Lex Autolease
Be clear on your objectives That may sound simple but many organisations move straight into a provider selection process without understanding their own objectives. Your objectives should at least include: • Maximise the choice of cars to improve take-up. • Maximise the number of eligible employees to promote inclusiveness. • Don’t undertake any “scheme risks” and minimise on-going scheme administration. SG Fleet
¡
A Salary Sacrifice Car Scheme from the industry’s brightest sparks Multi-Award Winning Experts in Vehicle Based Benefits Zenith is the Fleet News ‘Leasing Company of the Year’ 2012 and 2013! Our Salary Sacrifice and company car schemes won the Employee Benefits Awards 2012, car benefits category and our software has won awards too. Our customers include many household brands, some of the biggest organisations in the UK and leading professional services firms.
Be a part of our bright future; where we can help you to deliver a vehicle based benefit to every employee within your company. Our innovative car schemes include advanced, award winning online systems, our industry renowned expertise and a high quality service offering. We can help you reward what matters most; your people. Your employees deserve the best; find out what we can do for your company today.
0844 417 6026 www.zenith.co.uk PROVIDER TO
WINNER
enquiries@zenith.co.uk
So, thinking about a salary sacrifice car scheme?
Check us out:
We, at Tusker, are the experts: the market leaders in providing this popular and valued employee benefit. Over 150 bespoke live schemes delivering great employee engagement and cost savings aligned to each company’s requirements. Give us a call or drop us an email: hello@tuskerdirect.com l 0333 400 1010
SPECIAL FEATURE Salary Sacrifice
¡ 2 The groundwork Set clear ground lines There are plenty of statements to the effect that salary sacrifice is not a matter for tax, but one of employment law. Reinforced by our research, the reality is that early engagement of tax teams and the subsequent correct structuring is essential. Case law demonstrates the challenge of doing this wrong. As a result, clear and concise implementation objectives need to be agreed at the inception of the project and a standard project plan for salary sacrifice can run to several hundred lines. Done right, detailed work on scheme modelling and design structure and the accompanying policy decisions, with no gaps and no ambiguity, will pay dividends. In terms of the end result, all too often different stakeholders have differing views of a successful implementation; is success measured by quote and / or order levels, annual employee penetration levels across different populations, or by the initial budget plan versus the actual cost performance of the programme? Or all of the above? Clear and concise project tasks and objectives, core stakeholder analysis and involvement, adherence to key tollgates, all predicated on a robust and compliant policy structure, will result in a successful implementation. GE Understand the risks but don’t accept them The biggest barriers you will encounter are known as “scheme risks”. Deal with these and the rest is simple. So what are “Scheme Risks”? • Early Termination Risk – What happens if an employee leaves mid-lease? For some scheme designs, the lease will need to be terminated so you’ll try to recover the termination cost from the outgoing employee. This can be quite difficult. • Consumer Credit – Is a car salary sacrifice scheme consumer credit? Just like bikes to work, car salary sacrifice IS consumer credit. But unlike bikes to work, the OFT hasn’t issued a group licence. Pretending car salary sacrifice isn’t consumer credit just isn’t a risk worth taking.
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• Corporate Credit – Your company’s credit facilities are a valuable asset needed to run the business. Your finance team may not want to use them up on voluntary benefits. With proper provider selection and scheme design, you don’t actually have to have any of these problems. The right provider won’t create any of these scheme risks. SG Fleet Choose your supplier very carefully Salary sacrifice is a specialist area requiring a supplier with considerable experience and a track record in proper implementation (minimising workload for your organisation), securing HMRC compliance, mitigating risk to your business, integrating with existing fleet arrangements and most importantly employee engagement. Don’t get caught up in conversations around Consumer Credit Licences – properly structured schemes do not need one – they are an unnecessary cost to your business. Tusker Understand the risks, seek advice It is advised that any company wishing to implement a salary sacrifice scheme seeks legal and tax advice to fully understand the grey areas surrounding VAT and Regulated Hire under the Consumer Credit Act, especially as the industry has not yet reached a formal conclusion in some areas. It is recommended that any new salary sacrifice scheme, regardless of the benefit, seeks post-implementation approval from HMRC to ensure it is effective and the VAT, tax and National Insurance Contributions are properly accounted for, however, the contract that agrees that salary can be reduced is a matter of employment law not tax law. Further consideration must be given to the main operational process and pricing parameters required. These include payroll administration and reporting, motor insurance, the national minimum wage, earnings related benefits, staff turnover with early terminations and contingency funds. It is also important to remember the change in accountancy standards under consideration that propose leases are accounted for on the employer’s balance sheet. Lex Autolease
¡
‘It is recommended that any new salary sacrifice scheme, regardless of the benefit, seeks postimplementation approval from HMRC to ensure it is effective.’
A totally unique approach to car salary sacrifice in the UK market NovaLease is sgfleet’s unique and innovative car salary sacrifice offering, where employees can drive a brand new, fully maintained and insured car at a significant saving. Now employers can provide this valuable and attractive benefit at: No cost and with minimal administration No scheme risk or liability to the employer
0845 868 7124 www.sgfleet.com
SPECIAL FEATURE Salary Sacrifice
¡ 3 The implementation itself Design your scheme and choose the right provider These two steps really go hand in hand because your provider and their solution will provide the majority of the scheme design. So what are the top four things to insist on from a provider’s solution? Simple; • Early Termination Risk – make sure you don’t have ANY early termination risks to manage. Contingency funds and early termination insurances just don’t cut it. A good provider won’t create the problem in the first place. • Consumer Credit – make sure your scheme is fully compliant with the Consumer Credit Act. Your provider should be able to do all this for you. If they try to convince you a car salary sacrifice scheme isn’t consumer credit, your legal team should be concerned. • Corporate Credit Facilities – find a provider who can provide the scheme without using up your credit lines. • Day-to-day administration – find a provider who will minimise your ongoing scheme administration. Ideally you shouldn’t have to provide staff lists and changes or manage ad hoc recharges such as fines and accident excesses. The right provider should be able to provide the scheme without any set-up or ongoing fees. SG Fleet
Keep it simple Why have some salary sacrifice schemes either failed to get off the ground or suffered from a disappointing take-up rate? In our opinion this usually results from over-engineering what should be a fairly straightforward and wellestablished proposition. We know that tens of thousands of employees are currently offered the choice of either a cash allowance or a company car. Effectively those who choose to take the car simply sacrifice the offer of cash (additional salary) for a more tax-efficient benefit (a company car); so where’s the problem? In reality company cars will always be relatively expensive, carry risk and interest HMRC no matter how they are acquired. But as a significant proportion of the UK's very well-established company car market is made up of perk cars rewarding staff with a new, fully maintained company car is nothing new, and those of us lucky enough to have had company cars will never forget the excitement and pleasure a new car brings. Days Contract Hire
Plan and implement as a staff benefit Despite the fact a company car has significant tax implications for the employer and employees, surveys regularly confirm that it remains one of the most desired benefits an employer can offer its workforce. The scheme will only work if it is attractive to the employee by providing enough incentive to change from their incumbent method of funding their private car. It is a fine balance to price a salary sacrifice scheme effectively to ensure the employee gains a clear benefit whilst the employer also achieves a cost saving. Too much weight in favour of the employer and the employees will not see the full benefit and few will agree to join the scheme. Due to this it is always advisable to approach a scheme as an improvement to the employee’s benefit package and not as a savings opportunity for the employer. Design the scheme properly, however, and some employer savings should follow. Do not enter a salary sacrifice scheme with the view that it will also reduce costs if it replaces the company’s traditional contract hire company car scheme, any savings associated with salary sacrifice do not apply here. Lex Autolease
¡
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SPECIAL FEATURE Salary Sacrifice
¡ 4 The post-implementation work Presentation is everything Most employees won’t have salary sacrificed a car before, so employee engagement is critical. Internet sites are a great tool but they are not everything. People like to talk to people! Your chosen provider should be able to provide an online calculator, employee helpline, staff presentations and personal consultations. SG Fleet Communicate, communicate, communicate Extensive research of the salary sacrifice market highlights that a lack of employee understanding is the biggest risk to any scheme.
More importantly, the HMRC stipulate that the employee must fully understand every aspect of what the employee’s obligations are and that these changes are reflected in their contract. Hence it is important when ensuring HMRC compliance that all scheme documentation clearly outlines all the employee’s obligations when participating in the scheme. This includes what happens in the event of changes to insurance, mileage variation, out-of-policy items, resignation or redundancy and periods of extended absence.
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In the first instance general scheme communications should provide clear explanations of how the scheme works and how the employee would be affected within a salary sacrifice scheme. Employees should receive step-by-step clarity, such as before and after payslip views, and policy highlights and key obligations must be included in all pro-active communications. Throughout the quotation process the employee should be reminded of the key components included within the salary sacrifice and what this means, as well of the overall costs related to their selected vehicle. During the life of the contract, timely communication should remind employees of their relevant obligations and,
as the vehicle approaches the end of the originally agreed contract term, further targeted communications should clearly explaining the employee’s obligations upon return of the vehicle. GE Allay employee suspicions For an employee to understand how salary sacrifice works and where they will realise any financial benefit requires an appreciation of how their employment tax is calculated. It is all too common for
employees to become suspicious at the slightest mention that their tax is being altered. Any negative suspicion will have a serious impact on the success of the scheme, therefore, it is vital to communicate the policy in a simple, open and effective manner using any medium or forum necessary. Lex Autolease Consider all possible marketing methods to maximise take-up There is a strong correlation between the ability to market a scheme and its success. Those companies which have more open communication channels have the highest take-up. Work with your provider to create tailored marketing plans and ensure that you maximise your internal channels. Communications should cover both the launch of the scheme and ongoing marketing throughout its life. Sophisticated online systems should provide a retail style experience for drivers and full analysis for the employer on scheme performance. There are a variety of methods that can be used and the right approach will vary. Digital communications are usually combined with other methods such as poster campaigns and roadshows at offices. You may be able to utilise employee newsletters and the intranet to ensure that employees are regularly reminded of the scheme and the latest offers available. There may be employees who do not have regular access to emails or a computer as part of their job and who will need to be reached by other methods. If an employee survey has been carried out, this will provide useful information to help market the scheme on launch in terms of types of cars to promote. Information on employee demographics and quoting patterns can assist in targeting the marketing to particular segments. Zenith
We make Salary Sacrifice work for you and your employees.
Salary Sacrifice car schemes can be a great benefit for employees. But they’re often challenging to implement and administer. At Lex Autolease, we can help make Salary Sacrifice a success for both you and your business. With our experience, everyone can enjoy the benefits of hassle-free, tax efficient motoring.
For more information, please contact us today. Call: Email: Visit:
0845 769 7381 marketing@lexautolease.co.uk lexautolease.co.uk
our fleet Renault Clio 1.5 dCi Dynamique S FINISHED in the signature pearlescent Flame red, Renault’s stylish fourth-generation Clio is a newcomer on our fleet. It’s also the most fuelefficient non-hybrid car we have, returning 78.5mpg with 90g/km CO2 emissions. Renault has long been a brand known for great small cars, and the compact end of its range is particularly strong at the moment. Whether you size up to the Captur crossover, lose the tailpipe for an electric ZOE or stick with the tried-and-tested Clio, you can’t go wrong. So we’ve begun a six-month spell with the car we named Best Supermini at the 2013 Fleet World Honours, aiming to see how it fares on a mixture of motorway and city miles. Initial impressions are very good; it’s an attractive small car even with no three-door option and hasn’t lost any of its head-turning appeal despite becoming a familiar sight on UK roads. Ours has the 90bhp 1.5-litre diesel engine and is in the highly equipped Dynamique S trim. The
the figures latter gives it an upmarket style inside and out, with gloss black accents and two-tone alloy wheels. Contrasted against the rich metallic red paint, it makes the most of that French style. Inside, we’ve made the £450 upgrade from the MediaNav infotainment system to Renault’s new internet-connected R-Link unit. Steadily being rolled out across the range, it features not only the usual media and navigation functions but adds eco-driving tips, social media connectivity and the amusing R-Sound app, which matches a simulated sports exhaust sound to the engine’s revs, played through the speakers. We can download extra apps as required. At just under 900 miles, the engine is still running in. But economy has already settled in the mid-60s to the gallon over a combined route, while interior comfort is proving more than adequate for long drives. Promising signs for the road ahead. Alex Grant
OTR PRICE £16,890 POWER 90bhp @ 4,000rpm TORQUE 162lb.ft @ 1,750rpm 0-62mph 11.7 seconds TOP SPEED 112mph COMBINED MPG 78.5mpg CO2 90g/km (13% BiK)
Peugeot 2008 Feline 1.6 e-HDi 92
I suppose we should be grateful for this strangely mild winter, but the downside for me is that I haven’t had the
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chance to put the 2008’s Grip Control system through its paces. So, instead of reporting on how the Peugeot performs on snow and ice, I’ve turned my thoughts to how it performs on paper. Our top-spec 2008 is quite expensive at the front end when compared to rivals – with a P11D price of £18,590 it’s £1,000 more expensive than a Renault Captur in equivalent power and trim guise. There’s still a gap between them after three years and 60,000 miles, too, with our 2008 worth an estimated £7,975
while the Renault will be worth £7,100. Both are equal in terms of emissions though, emitting 103g/km. This puts them in the 15% BiK tax banding, resulting in annual company car tax bills of £557 for the Peugeot and £520 for the Renault. Despite the increased cost, both upfront and in tax terms, I think the Peugeot is worth the extra money because its interior is miles ahead of its French counterpart in terms of looks and feel of the materials used. Julian Kirk
Suzuki S-Cross 1.6 DDiS SZ-T ALLGRIP
Vauxhall Ampera Electron
WHAT is a fleet car? It’s an interesting question and I suppose one that has as many answers as there are end-users. The days of Sierra or Cavalier are long gone, company drivers want SUVs, lifestyle estates and even coupes and cabriolets make their way onto some fleet manager’s options list. Suzuki has been watching cars like Nissan’s Qashqai and the Kia Sportage grab an increasing slice of the lucrative fleet market. Now it wants a share of those sales too and is fielding the all-new SX4 S-Cross as its main contender. I’ll admit that the idea of a compact Suzuki 4x4, in white, had worrying images of Essex hairdressers running through my mind. But the S-Cross is no Jimny or Vitara, and it’s far better than its SX4 name implies too. Built to take the fight to the Qashqai market, the S-Cross comes with three retail trim levels and one specifically aimed at the fleet driver. This SZ-T model is also one of two that can be specified with the allwheel drive option, or ALLGRIP in Suzuki speak. The SZ-T fleet spec sits below the premium SZ5 model, doing without luxuries such as leather trim and heated seats. It’s no basic model though, coming as standard with front, side, curtain and knee airbags, ESP, cruise control, sat-nav, Bluetooth, rear parking sensors and a camera, dual zone air-con and keyless entry. Somewhat oddly, the SZ-T is the only model in the range to get the rather bling “chrome design pack” too. You can opt for a 1.6-litre petrol, but the fleet money will no doubt go with the similarly sized diesel, which is a strong performer and surprisingly frugal. We’ve also ticked that ALLGRIP option box, so in the words of Dean Martin: ‘Let it snow, let it snow.’ Dan Gilkes
THE Ampera has given the Grant household its first all-electric Christmas, and the winter weather is showing a few new advantages of having a plug-in car. Top of the list is cabin heating. The Ampera can pre-set the temperature while it’s still plugged in, demisting the windows ready to depart. Not only is it great for saving time, but it saves depleting the battery with the power-hungry heaters after you set off and seems to warm the cabin quicker than an idling engine could. It’s helped offset some of the seasonal drop in range, and kept petrol-assisted miles down through the festive season. Alex Grant
Skoda Octavia Estate 2.0 TDI 150PS DSG SE
OTR PRICE £21,549 POWER 118bhp @ 3,750rpm TORQUE 236lb.ft @ 1,750rpm 0-62mph 13 seconds TOP SPEED 108mph COMBINED MPG 64.2mpg CO2 114g/km (17% BiK)
WITH Stop/Start as standard on every Skoda Octavia, it’s something that a large number of fleet drivers will encounter but I have to say that it’s strange to use it on a DSG semi-automatic gearbox. With a manual, the driver can choose whether to activate Stop/Start by putting the handbrake on and putting the car in neutral – on our DSG model the system kicks in just after you brake down to a stop. It can be a bit disconcerting if the engine stops just as you’re about to pull away but it’s very quick to activate again and there is always the option to switch off the system altogether – although it will default to being on again the next time you start the car. Natalie Middleton
the figures fleetworld.co.uk / 71
our fleet Mercedes-Benz E300 BlueTEC Hybrid SE Estate I can’t say I’m a fan of hybrids. Living in a small market town miles from anywhere, hybrids tend to get found out: the electricity runs out and you’re left roaring about with a petrol engine dragging dead batteries around. However, I now have six months with Mercedes-Benz’s E-Class diesel hybrid, and even in the first couple of weeks things are looking up. What is initially striking is how much time it spends running on electric power – far more than any hybrid I have driven before, and how seamlessly it switches between EV mode and the diesel engine. As a result, without even trying this vast great car (for it is the estate, which is
about the biggest on the market) is already averaging early 40s mpg. Add in that a company car taxpayer is paying BiK on CO2 emissions of 119g/km and it looks an incredibly enticing proposition. My kids are pretty happy too, because our car has come specced up with TVs in the back with, mercifully, headphones, which means we can zip about silently on electric power while they are engrossed in Peppa Pig. At more than £41,000 it isn’t cheap, but it’s about the same price as a standard E250 CDI estate. I get the feeling it’s going to be a very interesting six months… Steve Moody
auctions & remarketing BCA Tel: 0845 600 66 44 bca.co.uk
accident management Total Accident Management Tel: 0845 078 4157 www.totalaccman.co.uk
fast fits & tyres ATS Euromaster Tel: 0870 066 3624 www.atseuromaster.co.uk
fleet insurance insureFLEET Tel: 0333 202 3133 www.insurefleet.com
driver licence checking Jaama Tel: 0844 8484 333 www.jaama.co.uk
Audi A4 Avant 2.0 TDI S line MY wife – like every woman I have ever met – is practically perfect in every way. On the plus side, it means she’s never wrong. The downside of this is that if something is wrong, it can’t possibly be her fault. Much the same can be said of Audi’s A4 Avant. Our long-termer has so much going for it that when something appears not quite right I’m forced to ask ‘is it the car or is it me?’ It looks great, drives beautifully and is reasonably economical as well. Only problem is I can’t find anywhere to store my collection of embarrassingly out-of-date CDs. To me this is an issue because I don’t want anyone knowing my taste in music. Also, they slide around and make the interior look untidy. However, I’ve spotted a couple of tiny slots below the CD player which I assume are designed to take SD cards with all your music already loaded onto them. Trouble is,
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eyecare Specsavers Corporate Eyecare Tel: 0115 933 0800 www.specsavers.co.uk/corporate
vehicle data International Decision Systems Tel: 01256 302 000 www.idsdata.co.uk
I haven’t got any of them. I haven’t bought any music since the Dixie Chicks split up, and now it looks like my ability to play what I have is falling further behind the forefront of technology. As per any argument with my wife, it’s not the car that’s wrong, it’s me. Ross Durkin
rental systems & programmes White Clarke Automotive Solutions Tel: 0870 787 2211 www.whiteclarkeauto.com
FLEETW RLD SUPPLIER DIRECTORY contract hire, leasing & finance Volkswagen Group Leasing Tel: 0870 333 2229
daily rental
fleet management software
risk management
Alliance Asset Management plc Tel: 01480 475000 www.fleetcentre.com
Drive Software Solutions Tel: 01438 317731
RAC Risk Management Tel: 0870 606 2606
www.drivesoftwaresolutions.com
www.racfleetriskmanagement.co.uk
Roadmarque Tel: 0845 053 0331 www.roadmarque.com
Sofico
Cardinus Risk Management Tel: 01733 426015
www.volkswagengroupleasing.co.uk
Tel: 0845 815 0019 www.dayscontracthire.co.uk
Venson Automotive Solutions Tel: 08444 99 1402 www.venson.com
Promote your company here and online for just £500/year.
Arnold Clark Car and Van Rental Tel: 0845 702 3946 www.arnoldclarkrental.com
Mycompanyfleet Tel: 0845 077 7760 www.mycompanyfleet.co.uk
Alphabet (GB) Limited Tel: 0870 50 50 100 www.alphabet.co.uk
Alliance Asset Management plc Tel: 01480 475000 www.fleetcentre.com
Apex Car Rental Tel: 01323 745444
Tel:0121 288 5935/07815 601622
www.apexrental.co.uk
www.soficoservices.com
Maxxia 020 7520 9450 www.maxxia.co.uk
Tel: 0845 769 7381 www.lexautolease.co.uk
Nexus Vehicle Management Ltd Tel: 0871 984 1947 www.nexusrental.co.uk
Jaama Tel: 0844 8484 333 www.jaama.co.uk
ARI Fleet UK Tel: 0844 8000 700 www.arifleet.co.uk
JCT600 Contracts Limited Tel: 0113 250 0060 www.jct600contracts.co.uk
Contract Hire a Car Tel: 0370 218 8015 www.contracthireacar.com
Europcar Tel: 0871 384 0201 www.europcar.co.uk
Bynx Tel: 01789 471600 www.bynx.com
MAC GB Ltd Tel: 01745 828180 www.reduceroadrisk.com
Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk
Enterprise Rent-A-Car Tel: 01784 221 300 www.enterprise.co.uk
Civica Tranman Tel: 01454 874002 www.civica.co.uk/tranman
AA DriveTech Tel: 01256 495732
For more information, please contact Tracy Howell on 01727 739160 or email
Lex Autolease
www.AAdrivetech.com/fleetsafe DriveTech
tracy@fleetworldgroup.co.uk
Arnold Clark Vehicle Management
www.cardinus.com
Tel: 0845 603 4590 www.acvm.co.uk
Pendle Vehicle Contracts Tel: 08456 025697 www.pendlelease.co.uk
Concept Vehicle Leasing Tel: 0800 043 2050 www.conceptvehicleleasing.co.uk
Zenith Tel: 0113 348 8667 www.zenith.co.uk
Budget Rent-a-Car Tel: 0844 5338 08701544 56 56 56 www.budget.co.uk
Enterprise Software Tel: 0161 925 2400 www.essl.co.uk
IAM Drive & Survive Tel: 0870 120 2910 www.iamdriveandsurvive.co.uk
Full listings online at fleetworld.co.uk fleet events
misfuelling
fuel management
sgfleet Tel: 0845 154 0721 www.sgfleet.com
The Fleet Show Tel: 01727 739160 www.thefleetshow.co.uk
AFF Tel: 0844 879 4770 www.autofuelfix.com
Shell Fuelcards Tel: 0800 7 31 31 37 www.shell.co.uk/euroshell
Telogis Tel: 0203 005 8805 www.telogis.co.uk
Trakm8 Tel: 01747 858 444 www.trakm8.com
TRACKER Network UK Limited Tel: 0845 602 3981 www.TRACKER.co.uk
Esso Fuel Cards Tel: 0800 626 672 www.essocard.com
Motrak Tel: 0800 054 6555 www.motivagroup.co.uk
Fleetmatics Tel: 0800 975 4566 www.fleetmatics.co.uk
Teletrac Tel: 0870 460 5693 www.teletrac.co.uk
Promote your company here and online for just £500/year.
The Fuelcard Company Tel: 0845 073 0873 www.fuelcards.co.uk
Quartix Ltd Tel: 0870 013 6663 www.quartix.co.uk
Navman Wireless UK Ltd Tel: 0845 521 1188 www.navmanwireless.co.uk
MiX Telematics Europe Tel: 0121 717 5360 www.mixtelematics.co.uk
SageQuest Tel: 0808 163 9309 www.sage-quest.co.uk
BP Oil UK Ltd Tel: 0845 603 0723 www.bpplus.co.uk
Motiva Group Tel: 0800 054 6555 www.motivagroup.co.uk
telematics & tracking
fleetworld.co.uk / 73
fleet management
New year, new thinking Greg Taylor, operations director of ALD Automotive, looks at why 2014 could be the year for many fleets to get to grips with the core issues of cutting cost, carbon and road risk.
A
s we ponder on what 2014 will bring for fleets, there are many uncertainties, ranging from how the economic recovery will continue and what the various political parties will promise in the run-up to the 2015 election, to how the forthcoming accounting standard will be comprised. But one thing is certain – cost, carbon and road risk management will continue to dominate fleet policies. In particular, whilst the UK economy is looking brighter than it has done for several years, cost control will, inevitably, remain a key mantra for fleets looking to turn the improving current economic situation to their advantage. There’s unlikely to be any let-up in the drive for smarter ways of working. Meanwhile, with new government rules forcing listed companies to report annually on their greenhouse gas emissions, the need to both measure and, where possible, cut carbon will also be at the forefront for many businesses. And with the continuing importance of managing occupational road risk, driver safety will also remain a focus for fleets. Whilst there are many actions that companies can take to manage these core issues, there is one solution that can address all three at same time and that’s flexible rental. Offered in both short- and mid-term solutions to address varying fleet needs, flexible rental can bridge the gap between daily rental and contract hire to suit a company’s particular needs. As confidence picks up, companies will naturally start growing again but there is likely to be a natural caution from entering into too many longer-term agreements in case market growth stalls. More flexible short-term hire avoids such issues, however, whether for small cars or commercial vehicles and even specialist trucks. Anything
“Offered in both short- and midterm solutions to address varying fleet needs, flexible rental can bridge the gap between daily rental and contract hire.” Contact ALD Automotive:
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t 0870 0011181
from one day to 12-month cover can be offered, ranging from probationary and temporary staff to contract and project work. To meet such a wide-ranging market demand, ALD offer Rental Solutions, for daily or weekly hire agreements, and PoolFleet, a flexi-lease programme more often used for hire periods longer than a month. Designed to meet the needs of companies looking to top up their fleet as and when needed, PoolFleet gives the flexibility to end agreements and request collection, at no cost, with only 48 hours’ notice. Meanwhile Rental Solutions provides a fully-flexible car and commercial vehicle rental service designed to meet increasing customer demand for non-contract, shorterterm vehicles. There are many benefits of using such products, not least in terms of the potential cost savings from replacing “idle” pool cars, and increasing productivity. In addition, where rental vehicles are used to replace employees’ own cars used on company business – the socalled “grey fleet” – firms can also drive down cost significantly compared to paying mileage rates. They are often among the most carbon-friendly and fuel-efficient vehicles available – not only helping to keep fuel costs down for companies but reducing carbon emissions as well. Safety is also a key benefit of flexible rental. All cars and commercial vehicles are equipped with the very latest safety features and are fully serviced and maintained in accordance with manufacturer recommendations. This ensures safety and peace of mind, making them pre-eminently suitable for replacing grey fleet cars where the employer can not be certain of the vehicles condition or, indeed, whether it is appropriately insured. So even though there can be no guarantee what 2014 will bring for UK fleets, using a flexible rental solution can, at least, make sure businesses are better prepared for the coming year. For more details on Rental Solutions and PoolFleet Solutions and how they can be tailored to meet your fleet needs, please contact ukinfo@aldautomotive.com or phone 0870 00 111 81.
e ukinfo@aldautomotive.com
w www.aldautomotive.co.uk
VAN
February 2014
FLEETW RLD
p75 After the runaway success of the Transit Custom, we are expecting great things from New Transit
at a glance driven Euro 6 Sprinter, DSFK Loadhopper, Piaggio TM Gullwing
plus... Fleet Academy, Contract hire & leasing, fuel management vanfleetworld.co.uk
VFW SPOTLIGHT New Ford Transit
Return of the king As Ford finally takes the wraps off the all-new global Transit, Dan Gilkes considers whether the firm’s biggest van can follow the success achieved by the smaller Transit Custom and Transit Connect.
practicality Model for model, load volume has increased by around 10% over the previous Transit. More vertical side walls and increased door openings, with 1,300mm wide sliding side doors, should make the Transit an easy van to load and unload. The panel vans are available in three body lengths and two roof heights, with gross weights up to 4.7 tonnes on offer. New features include an integrated highgrip rear bumper step, durable plastic floor coverings that rise 100mm up the side walls for easy cleaning, DIN/ISO compliant side wall mounted tie-down points, LED load space lighting and a 3.5 tonne towing capacity for 350 HD models. Transit will be available as a panel van, double-cab-in-van, Kombi, chassis cab and double chassis cab models. A new Super Jumbo chassis cab accommodates 5m floats or box bodies, while people carriers include an M2 bus range with seating for up to 18 people.
drivetrains In Europe Transit is powered by the familiar 2.2-litre Duratorq diesel engine, in 100hp, 125hp and 155hp ratings, all of which will drive through a six-speed manual gearbox. Both the 125hp and 155hp engines can be ordered in optional Euro 6 emissions specification if preferred. The vans will be available in front-, rear- and all-wheel drive versions. There will also be six ECOnetic models, powered by a recalibrated version of the 125hp engine, equipped with Auto-Start-Stop and Acceleration Control. Transit ECOnetic delivers up to 44mpg and 169g/km of CO2. Service intervals have been set at 31,000 miles or two years and Ford says that the service time required for a Transit covering 93,000 miles has been reduced from 5.4 to 4.2 hours over the outgoing model, reducing ownership costs. Repair times have also been cut for many regular items, with a rear brake disc repair labour time cut from 2.6 to just 1.3 hours on the new van.
vanfleetworld.co.uk
design This generation of Transit will finally become the global van that the One Ford product strategy has promised. It will be sold across the world, including for the first time the North American market, where the van will be offered with a petrol engine. The interior of the van is much more spacious than the previous model with extra shoulder room, head clearance and a more comfortable driving position, thanks to a reach and rake adjustable steering column. A new instrument panel, a range of stowage solutions and a wide range of features more commonly seen in passenger cars will be available, including Ford’s SYNC voice-activated in-car connectivity systems. Safety systems on offer will include Adaptive Cruise Control with Forward Alert, Lane Keeping Alert and Driver Alert, Rear View Camera and Trailer Hitch Assist and static cornering lights. The ESP system now incorporates Curve Control, Load Adaptive Control, Roll Stability Control and Trailer Sway Assist.
what we think...
FLEET FACT Transit will only need to see the dealer every two years or 31,000 miles.
Though not the dominant market leader that it is in the UK in some European markets, Transit remains a critical vehicle for Ford. Now that the van has to compete on six continents the pressure to get it right is even higher. Proven engines and running gear will inspire confidence in existing owners, while the ability to carry up to 11% more in the back should broaden the Transit’s appeal even further. After the runaway success of the Transit Custom, and the instant appeal of the recently updated Transit Connect, we are expecting great things from the full size van. DG
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MANAGEMENT Fleet Academy
Join the Could 60mph limit for M1 have far reaching concerns? Natalie Middleton, Business Editor, Fleet World
Fleet World magazine’s Fleet Academy is designed to provide a forum whereby those industry consultants and professionals in possession of valuable fleet information can impart it to a select audience of fleet decision-makers. At the heart of the Fleet Academy is a network of independent fleet industry experts whose work brings them into regular contact with end-user fleet managers and other organisations playing a key role in the industry. These fleet experts provide a regular feed of information that is posted on the website forum in the form of discussion topics. Typical areas of interest include, but are not limited to: taxation, finance and accounting, legislation, environmental issues, fleet safety, insurance, fleet management, supply issues and security. Fleet suppliers are permitted to respond to queries if it is felt that their response represents honest and impartial advice. This aspect of the service is strictly moderated in order to ensure that the quality of information provided remains of the highest standard. We have already attracted a strong network of fleet professionals, and our expert contributors have submitted a number of thought provoking discussion topics, a few of which are previewed to the right. We hope you will consider joining us in this exciting new venture into the world of fleet. To find out more about Fleet Academy and request membership, please visit:
The Highways Agency has disclosed plans to implement a maximum mandatory speed limit of 60mph along a stretch of the M1, which has ruffled feathers the length and breadth of the country but no doubt particularly for Yorkshire and Midlands-based drivers and fleets who would be impacted the most. The plans would see the speed limit apply between junction 28 at Mansfield and junction 35a at Sheffield and Rotherham between 7am and 7pm, seven days a week, as part of improvements planned for the M1. The speed limit is intended to not only help manage traffic speeds but also reduce air pollutants locally – according to European Environment Agency data, cutting speeds can significantly reduce emissions of pollutants, in particular NOx and particulate matter (PM) output from diesel vehicles. The Alliance of British Drivers has highlighted that the inside lanes are mainly full off HGVs, coaches and light vehicles that travel below 70mph anyway, whilst most of the vehicles affected will be in lanes three and four, closest to the central reservation and furthest from any roadside development. With pictures of China’s smog having been on the news recently (apparently hotels are giving guests gas masks), I do have to say that I applaud any initiative that helps take action on the UK’s air quality. And though opponents of the Highways Agency’s plans talk about the loss of productivity to businesses, we could also talk about the loss of productivity in Chinese cities such as Shanghai, which have been forced to virtually close down due to the apocalyptic-looking levels of smog. I have to say though that my first reaction to the Highways Agency's plans was sheer shock at actually finding that speeds in excess of 60mph may be achievable on the M1 in daylight hours…
A Head of Fleet commented...
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Taking Natalie's point that 60mph on this stretch of the M1 in rush hours (most hours?) would be nice to achieve any-
in association with
debate... Joined-up thinking, at last Alex Grant, Deputy Editor, Fleet World way and therefore this incentive would have a negligible effect on pollution, I wonder how the police will monitor this (or will there be more average speed cameras?). If it is police vehicles and personnel enforcing this environmental initiative then I guess other more dangerous and serious traffic offences could go unnoticed elsewhere. Having also just introduced last year a range of “on-the-spot” fine, I haven't seen (and would be happy to be corrected) a raft of prosecutions for these? Less pollution certainly please (and well done car manufacturers for slashing emissions) but surely more inventive ways than this?
John Kendall, International Fleet World Editor, commented... I share the desire for cleaner air, but feel that this policy could compromise safety. The problem is that there are other vehicles restricted to 56mph and 62mph using the motorway already. Given the variation in car speedometer readings and trick speed limiter settings, we could easily end up with cars and trucks travelling at the same speed, or travelling side-by-side for miles. Would coaches and minibuses limited to 62mph really slow down? If not we could have vehicles limited for safety reasons travelling at the highest speed on this stretch of motorway. So while it’s a laudable aim, it needs more thought.
Ross Durkin, Managing Editor, Fleet World commented... Aside from any environmental considerations, I’m more concerned that this could be the thin end of a wedge to be used to introduce lower speed limits across different sections of motorway. I think most motorists will become increasingly frustrated at the sight of a clear road and 60mph limit. The thought of this “experiment” being used more widely on our roads fills me with dread.
If you read the December 2013 issue of Fleet World, you’ll have seen that I recently drove a LEAF from Leeds to London in an afternoon. I make a point of it being an afternoon trip, because not so long ago this would’ve involved at least one overnight stay and lots of waiting around. The key is Ecotricity’s Electric Highway, which even since my road trip has grown to become more useful. Almost every service station on the M4 is now equipped with a fast charging station, which means I’m now in a position to undertake the 157-mile road trip from my house in Cardiff to Fleet World HQ in St Albans using electricity. All I have to do is factor a couple of fast charge stops – 20 minutes apiece – at Leigh Delamere and Reading services and I won’t even suffer range anxiety. As a reward, the electricity is renewably sourced and (for the near future anyway) it’s completely free. Kudos to Ecotricity, it’s a fantastic idea which really broadens the usability of an electric vehicle. Once other major routes (the A1, particularly) are similarly equipped it’ll be possible to get around most of the country without huge stops. I’ve moaned a lot about the lack of joined-up thinking in the EV market, and I think it’s a legacy of the short battery ranges on offer until fairly recently. Urban charging points are fine but contain EVs to city centres. Electric highways and fast charging suddenly starts to make range-extenders less of a necessity, provided the car has a compatible onboard charger. But, finally, everyone is thinking straight. If an EU proposal goes through, the UK will have a network of 70,000 charging points by 2020, and significantly there’s a requirement that they’ll all support the same Type 2 connector. In turn, it’ll mean carmakers will have to adopt the charging port to match. Trust me, as a regular EV driver, this will make things much easier. All we’ll need to do then is roll out a matching infrastructure for hydrogen fuel cell cars!
vanfleetworld.co.uk / 77
Now in your range. The New Sprinter, Vito and Citan from Mercedes-Benz Vans.
A Daimler Brand
Our complete range of vans are designed to meet your individual fleet needs. Each vehicle comes with a comprehensive Mercedes-Benz support package as standard*. Which adds up to lower whole life costs and reduced downtime. Contact our Fleet Business Centre for full details today on 01908 245835.
www.mbvans.co.uk/fleet *3 years’ unlimited mileage warranty, 24 hour roadside assistance and MobiloVan UK as standard, plus flexible, competitively priced, fixed rate Service Care plans. Terms and Conditions apply. Please contact the Fleet Business Centre for further details.
inbusiness
Truck registrations up 93% in Q4
T
he UK truck market tore up the record book last year, as it moved from Euro 5 to Euro 6 engines. An incredible 22,000 trucks were registered between October and December, a 93% boost in registrations. A staggering 1,000 trucks were registered on December 18 alone, a record figure for a single day. ‘It was the biggest tractor market ever, the biggest total market over 3.5 tonnes since 2005, and December 2013 was the biggest month ever,’ said Claudio Zanframundo, Iveco UK’s managing director (pictured). ‘2013 commercial vehicle registrations are evidence of just how distorted demand can get when factors outside the norm come into play. This has to be something for legislators to take note of.’ Looking forward, Mr Zanframundo sounded a note of caution: ‘The volume of Q4 registrations last year con irms a massive pull-forward of purchasing across the industry, unlike anything that we have seen before.
‘Trucks that would normally have been ordered this year have already been built and delivered and that is going to result in reduced order entry in Q1 because operators have already taken Euro 5 vehicles instead. ‘The background of economic growth we are witnessing will be critical to how 2014 develops and it should act as a counterbalance to the pull-forward of registrations last year. The UK is recovering faster than almost any other economy in Europe and things are looking more positive now than at any time over the last five years.’ The company is predicting a drop in the market over 3.5 tonnes of 15.6%, to around 47,500, just below the 10 year average of 48,900. That fall is not expected to be felt in the van market, where demand remains strong. ‘We are encouraged by the growth we are seeing in the light commercial vehicle sector,’ said Mr Zanframundo. ‘This has not been impacted in the same way as truck registrations. Indeed the positive growth we saw late last year has been borne out in the first days of January.’
inshort bitesize stories from a month in the van fleet world...
Vauxhall continues to dominate LCV sector Vauxhall built more than 44,000 vans in the UK last year, making the company Britain’s biggest LCV supplier. Production at the firm’s facility in Luton was up 34% last year, despite the current Vivaro coming to the end of its life. Work has already started on tooling for production of the new Vivaro later this year.
Jaama announces seminar programme Fleet software specialist Jaama will run four one-day Fleet Management Essentials seminars in April. The seminars will focus on fuel cost management, Driver CPC compliance, changes to company car BiK taxation and many other topics of interest to fleet managers.
Volkswagen Commercial Vehicles celebrates year of record sales
V
olkswagen Commercial Vehicles clocked up record sales in 2013, with more than 37,000 vans sold in the UK. That’s a rise of 19.4%, giving the manufacturer a 13.4% share of the market in which it competes, up from just 9% of the market in 2007. Growth was felt in every sector of the market too, with Caddy sales up 19.1%, Transporter up 19.7%, Crafter seeing a 6.7% rise and Amarok growing by 8.4%. ‘Crafter is a specific growth area for us,’ said director, Alex Smith. To that end Volkswagen has upgraded the specification on Crafter to meet UK customer demand, and will this year start to offer Euro 6 as an option on 114hp and 163hp engine variants. ‘However growth in the large van segment is not something that you can achieve
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in a few months. It needs to be repeatable and sustainable over time,’ he said. Volkswagen has 69 Van Centres and 27 Authorised Repairers across the UK,
with openings for another eight Van Centres. These will include new centres in Milton Keynes and Nottingham in the second quarter of this year.
RECORD SALES Volkswagen Caddy sales were up 19.7% in 2013.
WE SPEAK WITH FACTS. www.fiatprofessional.co.uk
DFSK Loadhopper 1.3 Tipper Larger engine increases appeal of compact Chinese tipper, says Dan Gilkes. SECTOR Utility PRICE £9,999(ex-VAT) FUEL 36mpg CO2 184g/km
D
FSK UK, the importer for Chinese mini van manufacturer DFSK, has updated its Loadhopper compact commercial range, with the addition of a 1.3-litre petrol engine. The larger engine delivers 77hp and 102Nm of torque, up from 52hp and 78Nm on the 1.0-litre motor, which remains as an option. While these are undeniably more impressive figures, they don’t make the compact truck a motorway hauler. The Loadhopper remains very much a vehicle for short journeys. However for an industrial complex, university campus or local council parks department, the compact dimensions and three-way tipper versatility make this a surprisingly useful machine. That tipper body is built by Cuccini and offers a respectable 687kg of payload. It is electrically-powered and has a wander lead so you can stand outside the cab to see what is being tipped while in operation. Simple locks on the sides and rear allow the body to tip to the rear or to either side. The Tipper comes with a radio, though at anything approaching a decent speed its not very effective. A decent speed is relative too, as there will be little risk of a speeding ticket in the DFSK. Our test truck came with optional central locking and
electric windows, though the cab is small enough that you can reach across to the left hand door from the driver’s seat. That said, it is fairly basic inside, but hey, for less than £10,000 it doesn’t have many tipper competitors. The 1.3-litre engine does make the Loadhopper a more viable solution for fleets that have more than a couple of miles to travel in the working day, though a second hand Transit might be a more popular option. If compact dimensions are a major buying criteria however, the DFSK could be just the ticket.
Piaggio TM Gullwing Piaggio’s Ape is a familiar site in Italy, and could answer needs here, reckons John Kendall. SECTOR Microvan PRICE £4,600–£15,000 (ex-VAT) FUEL 82mpg CO2 80g/km
O
cta-Piaggio is the new importer of Italian Piaggio commercial vehicles for the UK, founded by former Lloyds TSB Autolease commercial vehicle director, Grahame Neagus. Grahame has taken his knowledge of the light CV sector and applied it to the classic Italian commercial vehicle, the Ape (Italian for bee, pronounced Apay) based on the Vespa scooter, giving birth to the Gullwing Ape TM with a neatly designed gullwing body, based on the
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Ape TM chassis. The lightweight aluminium and GRP body, designed by body builder PD Stevens can be fitted out with Bri-Stor racking, making it an ideal vehicle for market traders, particularly where markets are held in restricted access zones. The Ape has a range of possible uses including parks and golf courses, universities and colleges, artisan restaurants, drinks companies and businesses that want a vehicle to make them stand out from the crowd. The gullwing body is designed to fit on the Ape TM dropside body and is completely demountable, giving the operator a choice of body according to needs. Ape TM body options include van, short and long dropside, as well as tipper versions. Payload can exceed 800kg, depending on the body fitted. Our test Ape TM Gullwing was fitted with a two-stroke, 218cc 9hp air-cooled petrol engine from a Vespa scooter. There is also a four-stroke petrol engine. It’s a novel driving experience. The tiny cab has room for two, just, while our test vehicle was fitted with the optional steering wheel – you can choose Vespa handlebars instead. Performance is gentle but it’s guaranteed to put a smile on your face. It’s not designed for long distance road use, with a top speed below 40mph, but for short distances and narrow streets. Ape is a distinctive niche vehicle – could it be for you?
Mercedes-Benz Sprinter Ahead of coming legislation, Dan Gilkes tries Mercedes’ Sprinter van with a Euro 6 engine.
M
ercedes would be the first to admit that, despite offering the full Sprinter van line-up with the option of Euro 6 specification engines, take up will remain slow until legislation catches up in 2016. Of course if you want the most powerful motor, you don’t get the choice, as all V6 models are now Euro 6. But what of the more popular four cylinder Sprinter? Mercedes believes that around 10% of customers will try a Euro 6 van before the deadline, both to see the effect on operating and maintenance requirements and to demonstrate their green credentials. Euro 6 carries a hefty £1,120 premium on this 3.5-tonne Sprinter though, which will be enough to put off all but the most environmentally-conscious fleet buyers. That’s before you factor in regular AdBlue consumption too. Unfortunately, while Euro 5 engines offered big power and economy improvements over Euro 4, the gains with Euro 6 are less impressive, as manufacturers are being forced to chase diminishing returns. While this van with a Euro 5B engine delivers a combined figure of 34.9mpg, the Euro 6 engine only raises that slightly to 35.8mpg, which is going to take a lot of miles to return the extra investment. More impressively, the Euro 6 motor delivers just 206g/km of CO 2, down from 213g/km on the Euro 5B and 227g/km on the previous model. The other downside however is that the Euro 6 model weighs in 34kg heavier, thanks to its AdBlue tank and dosing equipment, which will have to come off the available payload. There is more good news however, par-
what we think There won’t be many takers yet for the Euro 6 engine option. Whichever engine specification you choose though, the latest Sprinter remains an accomplished long distance load carrier.
specification MODEL Mercedes-Benz Sprinter 313CDI BlueEfficiency Euro 6 LWB high roof BASIC PRICE £29,945 ENGINE 4-cyl/2,143cc FUEL INJECTION Common-rail POWER 129hp @ 3,800rpm TORQUE 305Nm @1,200-2,400rpm Weights (kg) GVW 3,500 KERB WEIGHT 2,415 PAYLOAD 1,085 MAX TRAILER WEIGHT 2,000 Dimensions (mm) LOAD SPACE LENGTH 4,300 LOAD SPACE WIDTH 1,780 LOAD SPACE HEIGHT 1,940 LOAD HEIGHT (unladen) 640 LOAD VOLUME 14.0m3 Cost considerations FUEL TANK CAPACITY 75 litres COMBINED MPG & CO2 35.8mpg/206g/km OIL CHANGE 2 yr/31,000 miles WARRANTY 3 yr/unlimited miles
ticularly if you are the one driving this latest Sprinter. Somehow Mercedes has managed to make this one of the smoothest, quietest vans of this size that we have ever driven. Despite its size it also pulls like a train when unladen, with the gearing on the motorway almost making it too easy for the van to live up to its name. Much has been made of the fact that Mercedes wants to be at the forefront of safety in its LCVs and this Sprinter is no exception. The firm has offered Adaptive ESP for some time as standard and that has now been joined by Crosswind Assist, though on a pretty gusty drive up the M1 it was either very subtle or hardly playing a part in proceedings. Our test van also boasted a host of safety options under a Driving Assistance Package (£1,090). This included yellow and red flashing lights in the wing mirrors to warn of objects in the blindspots, a lane departure warning to keep the driver from wandering without indicating and a warning on the dash if the van was too close to the vehicle in front. Somewhat surprisingly though there was no light to let you know that cruise control was engaged. The revised Sprinter interior looks as if it will remain unharmed through a long and tough life, providing a comfortable place to spend the day. A full height bulkhead, electrically adjustable heated door mirrors and Bluetooth are all plus points, though our van’s air conditioning would set you back £593. Sprinter remains a heavy van leader, now one with even more choices for the customer.
vanfleetworld.co.uk / 83
NO JOB TOO BIG
MOVANO CORE CONVERSIONS Whatever your trade demands, no job is too big for the Vauxhall Movano. With tipper, dropside and Luton models available, the Movano is big on choice. And because every Movano comes with a full 3 year/100,000 mile warranty, whichever model you choose, it will be fit for purpose.
COMMERCIAL VEHICLES The Wheels of Business 3 Years Warranty up to 100,000 miles. The warranty will expire when the vehicle has reached either 3 years or when the mileage limit has been exceeded, whichever occurs first. The warranty The warranty excludes wear and tear and serviceable items, and the vehicle has to be serviced in accordance with the manufacturer’s servicing schedule. Terms and conditions apply. Available at
BEST CHASSIS CAB
For more information call 0845 740 0777 or visit www.vauxhall.co.uk/vans includes Vauxhall’s standard Customer Care Commitment of a one-year unlimited mileage manufacturer’s warranty and a second and third year manufacturer’s warranty with 100,000 mile limitation. participating Retailers only. Warranty only available on vehicles sourced from General Motors UK Limited. Full details available from your Vauxhall Commercial Retailer.
FEATURE Contract Hire
Finance booms Soaring van sales have enabled some creative financing opportunities, as Dan Gilkes reports.
W
ith a booming van market in the UK, it comes as little surprise that manufacturer-backed finance has also been experiencing healthy demand. When the high-street banks and other lending institutions moved rapidly away from the LCV market a couple of years ago, manufacturer-led finance was, for many van operators, the only point of call. Now that financial support that manufacturers were able to put behind their products, is being paid back many times over. ‘It has been a record year in 2013 for Mercedes-Benz van sales in the UK, with more than 30,000 sold,’ says Steve Clement, general manager CV and direct sales at Mercedes-Benz Finance. ‘It’s been very buoyant for us too – we’ve just had a record year and have outgrown the market. For vans, we anticipate further growth in 2014 and on into the next year.’ Looking at the figures, MercedesBenz Finance funded one third of the company’s van sales in the UK last year – that’s around 10,000 LCVs. What’s more, 40% of those vans were sold under some form of finance agreement that incorporated a fixed residual value as part of the deal. ‘We do a lot of funding on Vito, but we also finance a lot of Sprinter and Citan vans as well,’ says Mr Clements. As with all manufacturers, Mercedes doesn’t just offer a conventional contract hire product, though this remains a common choice with fleets. Finance and operating leases have become increasingly popular too and, for smaller companies in particular, the Agility contract purchase scheme has also been much in
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demand. This is no doubt thanks in part an important factor in assessing van to its on-balance sheet accounting and condition, mileage and value thoughout guaranteed future value, providing custhe finance term. tomers with known costs throughout ‘We look to do specific campaigns on the term of the agreement. returning vehicles,’ says Mr Clement. Indeed having a fixed cost for the ‘We don’t wait for the contract to whole vehicle life has also become expire before having a conversation increasingly popular with fleet cuswith the customer.’ tomers, as repair and maintenance conFor Mercedes-Benz Finance there is a tracts have also seen a growing uptake. secondary benefit to increased popularMr Clements admits that the next logical ity of used vans, as it is prepared to offer step for Mercedes would be actual fleet similar contract funding on good quality management, a move that he certainly pre-owned stock. It’s not hard to see why doesn’t rule out in the medium term. the company remains optimistic about He also acknowledges that factors further growth in the coming years. such as R&M are incorporated in stepped residual values. A Mercedes-funded van will be worth a little more than one financed outside the company, while one with an R&M contract will be worth a little bit more again. He comments that specification plays a strong part too, with add-ons such as air conditioning boosting used values further, an important consideration as MercedesBenz dealers are keen to build their used van sales position. ‘Residual value on Mercedes products is strong and that always has a benefit,’ says Mr Clement. Indeed residuals play such a strong part in many deals that Mercedes-Benz can step in before the end of a finance term to swap vans over, if there is a benefit to the cusR&M contracts have a direct impact on tomer. Maintaining regular residual values and contract hire rates. dialogue with the customer is
MARKET OVERVIEW Fuel Management
VAN
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The Fuelcard Company
Allstar offers the largest fuel site network in the UK (around 8,000 sites nationwide) including motorway sites and lower cost supermarkets. With an Allstar fuel card, drivers enjoy the ease and convenience they need and don’t have to drive off route in order to fill up. This means businesses benefit from savings in not just fuel, but time and cost too. Our consolidated invoice is HMRC compliant and ensures you can claim back up to 100% of your business fuel VAT. Allstar cards will soon have Visa chip & PIN technology to reduce the risk of fraud and streamline reporting. Tel: 0845 2665101 fuelcardsales@allstarcard.co.uk
As one of the largest commercial fuel card resellers in the UK, The Fuelcard Company enjoys partnerships with most of the large fuelling networks including Shell, Esso, Texaco and Keyfuels so this means we have around 6000 sites where our cards are accepted. As experts in our field, we have a wealth of experience in delivering tailored and competitive fuel card solutions for businesses of all types. In addition to our excellent customer service, our online account management is completely free of charge and will totally streamline your fuel management. Tel: 0845 270 6214 info@fuelcards.co.uk
www.fuelcards.co.uk
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The Fuelcard People euroShell Fuel Card With over 50 years of fuel card expertise, the euroShell card can give you greater control, convenience and security to overall save fleet managers money! The euroShell card is accepted at an extensive 3,500 stations across the UK which includes Shell, Esso, Texaco and Total sites. The euroShell card information management system enables fleet managers to have: • control amongst their whole fleet • access to secure online invoicing • simple card management (with options to select card PINs) • generate bespoke smart alerts... and more! Please give us a call on the 0800 915 6021 to find out how easy it is to become a euroShell card customer and start saving now! Tel: 0800 915 6021 info@euroshellcard.co.uk
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www.euroshell.co.uk
Nothing beats dealing with real people: The Fuelcard People, here to bring you great savings. Major fuel cost savings, massive paperwork and admin savings, always saving you from fraud worries. Plus: CO2Count, for help to count, control and cut your carbon footprint. And: MileageCount, from helping you to report HMRC mileages, without fear of fines, to total fleet management. All built on real personal service from your named account manager, who ensures the best possible fuel card deal for your specific needs – right fuels, networks, locations – chosen from EVERY major brand: BP, Esso, Shell, Texaco, Gulf, Pace, Emo, Jet, Murco, Morrisons, Tesco, Co-Op, Diesel Direct, UK Fuels and more. That’s simply unbeatable. Contact: Steve Gale info@thefuelcardpeople.co.uk www.thefuelcardpeople.co.uk
Tel: 0844 870 9856
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BCA Tel: 0845 600 66 44 bca.co.uk
Alphabet (GB) Limited Tel: 0870 50 50 100 www.alphabet.co.uk
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fleetworld.co.uk daily rental
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For more information, please contact Tracy Howell on 01727 739160 or email tracy@fleetworldgroup.co.uk
telematics & tracking Apex Van Rental Tel: 01323 745444 www.apexrental.co.uk
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Tel: 01708 511071 www.ukvanleasing.co.uk
Lex Autolease
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Venson Automotive Solutions Tel: 08444 99 1402 www.venson.com
EV FLEET WORLD Tel: 01727 739160 www.evfleetworld.co.uk
Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk
TRACKER Network UK Limited Tel: 0845 602 3981 www.TRACKER.co.uk
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fuel management
Shell Fuelcards Tel: 0800 7 31 31 37 www.shell.co.uk/euroshell
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ontheroad Anthony Ffrench-Constant is wondering where all the time goes in congestion and road works.
T
he most recent survey figures I can unearth suggest that, in 2012, traffic congestion cost our economy more than £4.3bn – equating to some £491 per car-commuting household – with more than £426 million wasted on fuel alone. Perhaps more pertinently to most of us, last year commuters spent an average of nine working days simply stuck in traffic. I have no idea how these staggering figures are arrived at but, living in one of the few remaining villages in the UK still blessed with a functioning, mercifully non-gastro pub, I have an entirely clear idea of what I’d do with an extra £491 should it come my way. I also have a pretty clear idea of whom to blame for the fact that, thus far, it hasn’t. Given that urban congestion is probably everyone’s biggest bête noire, first on the list are bus drivers, who have become so lazy and arrogant that they now can’t be bothered to actually pull over at their stops. They prefer to bring everything to a grinding halt whilst – in the absence of a conductor to take fares with the bus already under way again – successive elder passengers perform a painfully inept imitation of shove ha’penny in the lids of their horseshoe purses. Then, of course, we have roadworks. How many times have you dawdled along miles of average speed cameramonitored motorway thinking: a) ‘What numpty thought that welding that infuriatingly ornate little ‘M’ motif into the elbow of the camera pole might somehow make me feel better about how late I now am for my meeting?’ and, b) ‘I wouldn’t mind being shackled to 50mph to “protect the workforce” if there was any evidence whatsoever of a workforce in need of protection.’ I once spent the night with a motorway maintenance outfit for a story and, even before the arrival of the myriad distractions of the mobile phone, work still took place at a speed to elevate a receding glacier to sprint finish status. Day 1: Cones out. Day 4: Install Portaloo. Day 5:
I wouldn’t mind being shackled to 50mph to “protect the workforce” if there was any evidence whatsoever of a workforce in need of protection.
90 / fleetworld.co.uk
Collect old shoes from central reservation. Snooze in Portaloo. Day 7: Unload digger. Spin through 360 degrees. Knock over Portaloo. And so the weeks wear on… Closer to home, my Mudfordshire market town has now suffered so many months of relentless road works that the residents have taken to marking days free of the din of pneumatic drills on their wall calendars with the word ‘Hoorah’. It started early the year before last when a bunch of identically-branded clowns tore up almost every road they could find in the interests of replacing the town’s ageing water main. No one would have minded this half as much if they hadn’t, to a man, spent at least 75% of the ensuing eons merely eating take-away sausage rolls, drinking tea, smoking, chatting, texting, scratching, spitting, littering, leaning on stuff or simply trying to crack level 165 on Candy Crush. Nor would anyone have minded the other half as much if, when they finally left at the end of the summer with drinking water geysering sufficiently copiously out of one newly resurfaced section of tarmac as to render it decidedly luge-friendly all winter long, successive shoals of alternatively branded clowns representing other utilities hadn’t immediately appeared to excavate the same holes all over again. Whilst we must obviously accept that such works are invariably carried out by men who tighten grub screws with a lump hammer and still point at aeroplanes, why must we continue to accept a situation wherein the different utilities singularly fail to notify each other of an impending hole, and wherein it all takes so, much, time? Imagine being treated like this in a car showroom. ‘Yes sir, it’ll be ready in three years time, but we will have to take it back every few months thereafter to fit some extra bits that didn’t make it to the production line. Oh, and, we can’t really vouch for the build quality once we’ve pulled it apart again, and it’ll almost certainly go wrong in the interim.’ The fleet buyer can vote with his or her feet and a rather large cheque book. The car user is afforded no such luxury; he has to rely on the local authorities to sort road works for him. And, to date I’m afraid, until they adopt the French system of fast, hard-negotiated contracts running 24/7 with draconian penalties for overrunning by so much as an instant, that’s a massive, ongoing fail.