Fleet World January 2012 by Fleet World Group

The leading magazine for fleet decision-makers

January 2012

DIARY DATE

FLEETW RLD

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

inside Seoul Searching

Leasing trends

Hyundai plans major fleet push

Is the contract hire industry due more change?

driving towards lower fleet emissions

Stars of 2012 e Featuring all th ars essential new c ear launched this y

fleetworldgroup.co.uk

The leading magazine for fleet decision-makers

January 2012

DIARY DATE

FLEETW RLD

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

inside Seoul Searching

Leasing trends

Hyundai plans major fleet push

Is the contract hire industry due more change?

driving towards lower fleet emissions

fleetworldgroup.co.uk

Stars of 2012

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

Featuring all the essential new cars launched this year

fleetworldgroup.co.uk

Publisher Ross Durkin ross@eetworldgroup.co.uk Editor Steve Moody steve@fleetworldgroup.co.uk Deputy Editor Natalie Wallis natalie@eetworldgroup.co.uk Motoring Editor Alex Grant alex@eetworldgroup.co.uk VFW Editor John Kendall john@eetworldgroup.co.uk Sales Director Anne Dopson anne@eetworldgroup.co.uk Sales Executive Darren Brett darren@eetworldgroup.co.uk Circulation Manager Tracy Howell tracy@eetworldgroup.co.uk Production Manager Luke Wikner luke@eetworldgroup.co.uk Designers Tina Ries tina@eetworldgroup.co.uk Samantha Hargreaves sam@eetworldgroup.co.uk Internet Editor Luke Durkin ltrd@eetworldgroup.co.uk

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

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Contents

The last two cars I drove before writing this missive were the Kia Optima and Range Rover Evoque, and I can quite easily see how a business might offer those up to its drivers as an alternative to the usual fleet fare. Also, this month I’ve been to see Martin Wilson at Hyundai, who has plans to expand the Korean brand’s presence in fleet on the back of some very useful new product. The last month has also seen Renault halve its range and cut out a load of nonprofitable business in a bid to reshape its business in the UK. Not forgetting that Mercedes-Benz, Skoda and SEAT are on the corporate charge too. I get the feeling that the fleet market is changing. All the old certainties are being questioned as more and more manufacturers enter the market in a serious way, perhaps trying to find a safe haven from wretched retail sales in some cases, but more often than not recognising there is some really good business to be done. What does this mean for fleets? More competition for your pound, and that can never be a bad thing, especially if many fleets are looking at how to make each quid stretch further, or at least be spent in the most effective way. Of course, much depends on the financial situation this year, but as Alphabet’s Richard Schooling says in our leasing feature this month ‘the British economy is more resilient than people think’. He’s right, which is why more and more car manufacturers want a share of it, and to supply you with cars.

04 A month in fleet 10 Industry Analysis Saab’s bankruptcy.

12 Fleet World Barometer The first in our series of features looking at the state of the eet industry.

14 Comment 18 Driven Volvo V60 Plug-in Hybrid // Kia Optima // Toyota Avensis // Vauxhall Insignia.

24 2012’s key cars... ... and when you can expect them on your eet.

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

32 Leasing lessons for 2012 More change for the leasing industry this year?

36 Electromobility How to know your BEV from your PHEV.

38 Sticking point Could vehicle liveries better promote your rm?

42 Breaking up is hard to do Early termination of contract hire agreements.

44 Seoul Searching Martin Wilson of Hyundai talks to Steve Moody.

46 Market Overview Risk Management.

48 Selling 49 Fleet Update 53 VAN Fleet World 66 NUM8ER5 G4ME

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

19 38 44 60

Certified circulation Jan – Dec 2010 19,046

Steve Moody Editor

January 2012

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

RENAULT SLASHES RANGE AND ‘WILL HALVE FLEET SHARE’ Renault UK has slashed its model range, dropping cars such as Laguna, Espace and Modus, and will re-engineer the way it does business in a bid to set up a ‘sustainable, profitable future’, fleet boss Darren Payne told Fleet World. From February, the firm will no longer sell the Laguna range, including the Coupe, as well as the Wind roadster, both variants of the Modus and Espace and the Kangoo and Trafic passenger versions – a set of models that made up less than 10% of the company’s UK volume. The Clio, Scenic, Megane and Twingo have been retained, alongside the introduction of four new electric cars towards the end of 2012, while a new Clio and crossover vehicles are due in 2013 and beyond. Payne also added that Renault UK would also be pulling out

of all fleet business except “true” fleet sales, apart from some small volume of van rental. It will result in the firm’s fleet share halving over the next year. Payne said that the firm had taken the decision to only sell cars that were inherently profitable and not dependent on the strength of the pound against the euro to create margins, as well as pulling away from doing expensive fleet business just for the sake of volume.’ He added: ‘I know these sorts of things have been said before, but we will not do any rental or Motability in the future. It’s bold, but with the introduction of our Z.E. electric range, and the launch of our Dacia value brand in 2013, we will see our overall fleet and retail volumes return and increase, but with healthier profit margins.’

BVRLA WELCOMES RED TAPE CHALLENGE CHANGES The BVRLA has greeted the first results of the Government’s Red Tape Challenge and says they could have major benefits for the vehicle leasing and rental sector. The organisation has commented on the announcement by Transport Secretary Justine Greening of the following results from her department’s attempts to remove or amend poor regulations: 1. On-demand vehicle registration (V5) documents for the fleet sector This will remove the administrative cost of storing and distributing massive batches of documents. 2. Abolishing the paper counterpart to the driving licence This will benefit all motorists, but it will also require the DVLA to introduce real-time electronic access to driver records for rental companies, driver training companies and other organisations that currently rely on the information on the counterpart. 3. Removing the need to present proof of insurance when taxing a vehicle A positive result of the introduction of Continuous Insurance Enforcement, this change will again remove a big administrative cost and headache for fleets. 4. Driver Certificates of Professional Competence – removing the need for some sectors to have one. The BVRLA added that it will lobby for commercial vehicle rental delivery drivers to be exempted from requiring a driver CPC. BVRLA chief executive John Lewis said: ‘Credit is due to the Coalition Government for coming up with this initiative and the Department for Transport. ‘I hope that the Red Tape Challenge will now become an on-going process.’

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ARVAL SELLS ALLSTAR FOR £194M Arval UK has sold its AllStar fuel card business to US fleet transaction firm FleetCor Technologies in a £194m cash deal. In addition, Arval and FleetCor have entered into a strategic relationship where Arval will continue to provide fuel card payment solutions to its customers through AllStar. Ron Clarke, chairman and chief executive oﬃcer, FleetCor Technologies, said: ‘The acquisition of AllStar is consistent with our global acquisition strategy of identifying attractive assets with performance upside. We believe that we can help AllStar realise its full potential, as we have in previous acquisitions, by bringing our best practices, technology and commitment to this portfolio.’ Inherited in a 2000 acquisition, the UK fuel card business was a unique activity within Arval, beneﬁting from a multibranded network and a full UK coverage. • See the Q&A section on page 7 for more details from Arval on the deal.

Ford NEWS

inbrief 5 star safety for all-new Ranger

Most frugal Mondeo ever... THE most frugal Mondeo ever, the 1.6 TDCi, is proving a financial winner with fleets downsizing from larger displacement engines. It is also proving that a small turbodiesel engine can give a level of performance and efficiency previously confined to larger units. Homologated emissions of just 114 g/km of CO2 mean the 115PS 1.6 TDCi engine is below the important 120g/km taxation bracket, with £30 VED and 13% P11D benefit-in-kind, compared with £115 and 20% for the 2.0-litre. It means the driver's monthly BIK liability is £45 at 20% and £90 at 40%. In 2011, Car magazine gave the Mondeo 1.6 TDCi a maximum five stars, and said: “What might surprise you is just how flexible this 1.6-litre engine is and the surge of acceleration once the engine hits the 1750rpm sweet spot.” The 115PS engine gives 65.6mpg combined and delivers 270Nm of torque – better than some sports cars – until extra overtaking power is required, when transient overboost kicks in with an extra 20Nm of torque. Durashift 6-speed manual transmission and standard Ford Auto-StartStop both help to cut fuel bills and CO2 emissions by as much as 10% in an urban environment and in heavy traffic with frequent stops. The engine is available in Mondeo Edge, Zetec, Titanium and Titanium X in both five-door and estate models.

New sporty Focus Zetec S now available THE new sporty Ford Focus Zetec S is available with four engines including the 2.0-litre 163PS TDCi with either manual or PowerShift automatic transmission. Based on the existing Zetec model, it adds sports suspension, a full sports styling kit including unique front and rear spoilers with lower sill extensions and 17-inch alloy wheels, aluminium-style sports pedals, rear LED lamps and Ford Power starter button. The other available engines are the 1.6-litre 180PS EcoBoost turbocharged petrol unit and 1.6-litre 115PS TDCi – which both carry the ECOnetic Technologies badge as they benefit from auto start-stop, Ford ECO mode, gear shift indicator, active grille shutter and smart regenerative charging – and 1.6-litre 125PS Ti-VCT petrol. Options include the technology-laden Driver Assistance Pack which has received several awards, cruise control with Active Speed Limiter and a Zetec S interior pack featuring Inferno Red partial leather, heated front seats, power driver seat, power rear windows and global closing.

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

THE all-new Ford Ranger made motoring history by becoming the first pick-up to achieve a maximum 5 Star Euro NCAP crash test rating. It scored 89 per cent for overall safety – the best score ever earned by a pick-up and one of the highest scores recorded by Euro NCAP for any type of vehicle. The new Ranger also achieved the highest rating – 81 per cent – of any vehicle ever tested by Euro NCAP for pedestrian protection. “No one wants to be involved in an accident but if the worst were to happen, the new Ranger is proven to provide outstanding protection to occupants of all ages as well as pedestrians,” said Ford of Europe chairman and CEO Stephen Odell. Euro NCAP’s assessors described Ranger’s test results as “remarkable,” with “impressive” scores in all areas. Euro NCAP secretary general Michiel van Ratingen, said: “With such good pedestrian protection, the Ford Ranger is undoubtedly raising the bar of safety in the category of pick-up trucks.”

“Ranger is undoubtedly raising the bar of safety in the category of pickup trucks.”

COMPANY CARS CONTINUE TO DOMINATE NEW CAR REGISTRATIONS Fleet registrations look set to dominate the 2012 new car market, with new data from the Society for Motor Manufacturers and Traders (SMMT) showing that company cars played a key role in supporting 2011 registrations during challenging conditions. The latest figures from the SMMT show that new car demand totalled 1,941,253 units in 2011, down 4.4% on 2010, but ahead of the 1.92 million forecast. Registrations in December fell by 3.7% to 119,188 units and the market was down 1.8% in quarter four. For the full year, fleet registrations totalled 1,019,126 – up 4.7% from 2010 – and saw their market share increase to 52.5% compared to 47.9% last year. Sub-25 small business registrations

remained static for the year at 99,033 – just a 0.6% decrease from 2010 – while their market share was boosted slightly from 4.9% to 5.1% in the declining market. In comparison, private registrations dropped 14.1% in 2010, with a resultant decline in market share from 47.2% to 42.4%. For December, fleet registrations were up 4.9% to 67,161 while business registrations saw a 13.0% decline. Private registrations were also down 13.0% compared to the same month in 2010. Commenting on the ﬁgures, John Lewis, chief executive of the BVRLA, said: ‘2011 has indeed been a challenging year for the UK motor industry, and once again, it has business ﬂeets to thank for purchasing nearly 60% of all new cars sold. It is great

NEW MONDEO SHOWN Ford has released first pictures of its new Mondeo. Revealed at the Detroit Motor Show and called Fusion in the States, the European version will go on sale in the first quarter of 2013. More details will be revealed nearer its launch.

to see that this support has helped boost UK-based vehicle manufacturers including MINI, Nissan and Jaguar. ‘The coming year could be even tougher and we expect fleet customers to continue to dominate the new car market. Business users recognise the advantages of buying newer, safer and more fuel efficient cars, but only as long as manufacturers resist the urge to push up prices.’ He added: ‘The continued growth in sales of premium fleet brands including Audi, BMW, Mercedes and VW shows that cars with high list-prices can still be a very attractive business option because of their fuel efficiency and high residual value, which gives them a low-cost of ownership.’

DriveTech

AA DRIVETECH ACQUIRES NATIONWIDE 4X4 AA DriveTech has bought Powys-based Nationwide 4x4, a provider of off-road driver training and events. The company, which is a LANTRAapproved and RoSPA-accredited training provider, will continue to trade as a separate legal entity while becoming a trading operation within the AA DriveTech business. Selwyn Kendrick, Nationwide 4x4’s owner, will join AA DriveTech and be active in the integration and expansion of the business. Nationwide 4x4, formed in 1995, offers expert training in a range of heavy-duty vehicles and machinery used by a variety of different organisations such as governmental, “blue light” and utilities as well as many commercial organisations.

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INCHCAPE FLEET SOLUTIONS SIGNS UP SCOTIA GAS NETWORKS Inchcape Fleet Solutions has won a complete fleet management outsourcing contract with Scotia Gas Networks (SGN). The deal will see Inchcape Fleet Solutions provide SGN with a combined fleet of 2,100 cars and light commercial vehicles. In addition to its fleet, SGN has enlisted Inchcape Fleet Solutions to supply accident management, motor insurance database management and foreign travel arrangements. Inchcape Fleet Solutions’ sales and marketing director, Richard Middleton said: ‘The Scotia Gas Networks agreement is a fantastic achievement for Inchcape Fleet Solutions, and one for which every member of staff at the company should be proud. ‘It not only shows that we practise what we preach, but that we are equally adept at managing large, enterprise-level fleets as we are all other sizes and varieties. ‘I am extremely excited to welcome Scotia Gas Networks to the Inchcape Family and look forward to developing a truly exceptional working relationship with them.’

NEWSQ QUESTIONS AND ANSWERS TO THE MONTH’S HOT NEWS

Following the news that Arval is divesting itself of its fuel card business, the company outlines its reasons for the decision.

Why has Arval sold its card business? Arval has been reviewing the UK card line of business for some time, which is unique within the group and following analysis cannot be leveraged further by Arval outside the UK. The Arval Group business model allows companies of all sizes to outsource their fleet management and company fleet-related risks through a comprehensive bundle of funding and fleet solutions, whilst the business model for AllStar is to deliver transactional services. With this fundamental difference, AllStar IT platforms require a specific approach and further third-party growth will be enabled by removing the link to Arval as some potential third-party partners view Arval as a direct competitor.

Is the fuel card business losing money?

TOYOTA CHOOSES BRITISH GAS Toyota has named British Gas as its preferred supplier of electric vehicle charging points, ahead of introducing the new Prius Plug-in Hybrid in 2012. British Gas will be offering Toyota fleet and business buyers a full free-of-charge site survey, giving advice on the best way to equip their property for electric vehicle charging and a range of charging technologies that include both post and wall-mounted charging points with double sockets. These can be engineered to deliver charging from 3kW to 43kW. In the future this will allow certain electric vehicles to be charged in less than an hour. Dean Keeling, managing director of British Gas Smart Homes, said: ‘Electric cars are coming of age and this new partnership with Toyota is part of a continued drive by British Gas to make any type of electrically powered car simple, safe and more cost-eﬀective.’

No, the AllStar fuel business is highly profitable, delivers value to its customers and remains well positioned for future growth. The sale of this business is a strategic one and is in no way a reflection of the performance of the AllStar business.

Will there be redundancies as a result of this transaction? For Arval there will not be any redundancies as a direct result of this transaction. FleetCor are not planning for any redundancies amongst AllStar staff being transferred as a result of this transaction. They will remain in a new area of the existing Arval premises in Swindon.

Have your customers been informed? Our customers, suppliers and key partners are being informed of this change. We are working closely with them to answer any questions that they have.

Is Arval selling the fuel business to generate funds to acquire another leasing company? The sale of the AllStar business is not designed to generate funds for any particular reason. We are divesting the business to what we believe is the right partner to enhance the value proposition, allowing Arval to deliver fuel management products and services just as effectively through this outsource solution for payment services. This sale will support both businesses in their future growth.

Is this part of a wider strategy from BNP Paribas to sell of its assets? This transaction is very specific to Arval and its UK businesses including AllStar. The rationale is essentially to optimise each company’s franchise. In addition, this disposal will have a limited but positive impact on the group’s capital ratios.

Jnauary 2012

REVOLVING DOORS ACFO CALLS FOR 3% WHO’S IN AND OUT IN FLEET SURCHARGE TO BE SCRAPPED

>>> IN

ACFO has called for the ‘totally unjustified’ 3% diesel company car benefitin-kind tax surcharge to be scrapped. ACFO says the 3% surcharge should be abolished because new diesel models are now much cleaner, and forthcoming Euro6 emissions standards could add several hundred pounds to the price of diesel cars to ensure compliance. ACFO chairman Julie Jenner said: ‘There are no valid reasons for today’s diesel models to carry a 3% company car Benefit in Kind supplement. It was introduced almost a decade ago for reasons than no longer exist. ‘The tax system must reflect today’s vehicle technology and be fair and neutral irrespective of powertrain type. If the Government retains the 3% tax burden then it could see an increasing number of company car drivers opting for petrol-engined models with their improving MPG and lower list prices.”

GEELY 2012 UK LAUNCH TO TARGET USER-CHOOSERS Chinese automotive manufacturer Geely has announced it will launch models in 2012, and target user-choosers. Geely International Corporation has reached agreement with the UK’s Manganese Bronze Holdings plc (MBH) to become its distributor for the United Kingdom for the sale of new Geely cars, the supply of parts, to establish a dealer network and to provide an after-sales service. The UK distributor operation will be known as Geely Auto UK. Matthew Cheyne, market development director of Geely Auto UK, is heading up the team responsible for the sales, marketing, dealer development and distribution of Geely vehicles in the UK. He expects to have a 30-40 strong dealer network. The firm will start by importing the Geely Emgrand EC7, C/D segment sized four-door saloons and five-door hatchbacks, initially with 1.5 and 1.8litre petrol engine options, but will be aiming to widen its offering with at least a new model range every year for the next four to five years. Cheyne said: ‘The first Emgrand EC7 models to arrive are likely to have a range starting price of approximately £10,000 and we see Geely cars being attractive purchases for business user-chooser customers.’

CITROEN TOPS UP NATIONAL FLEET SALES TEAM Citroen says its national fleet sales team is now at full strength with two new appointments. Simon Griffith joins a seven-strong corporate fleet team as area fleet manager for Greater London and Essex, bringing fleet sales experience from Honda, Rover and VW Audi. Mark Richardson becomes leasing & rental manager for the Central region, drawing upon 14 years’ experience with leasing and rental companies including Avis.

OUT >>> TONY LEIGH STANDS DOWN FROM ACFO ACFO has announced that company secretary and former chairman Tony Leigh is to stand down after more than 25 years. Leigh has served as company secretary since 1996, and will be made an honorary life member in recognition of his service, the organisation said. Leigh commented: ‘I believe now is the right time to step down and to let younger fleet decision-makers become more involved with ACFO.’ The ACFO board is currently considering the appointment of a new company secretary, and will announce its intentions in the coming weeks.

COMMERCIAL OPERATIONS DIRECTOR DEPARTS RENAULT Renault UK has announced the departure of Ian Plummer as commercial operations director effective from 31 December 2011. The carmaker said he had made a significant contribution to the brand in the UK, including in his former role as managing director of Renault Retail Group. Thierry Sybord, Renault UK’s managing director, said: ‘Ian’s inspiration and leadership will be missed and I wish him the very best for his future.’ A successor will be announced shortly. In the interim, Bob O’Reilly, head of franchising and network development, will assume responsibility for the role.

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

INDUSTRY ANALYSIS Saab’s Bankruptcy

The end of the road? What Saab’s bankruptcy means for fleets, by Alex Grant. Late last year, Swedish carmaker Saab filed for bankruptcy after a potentially life-saving buyout from two Chinese investors was blocked by former owner General Motors. Saab’s parent company Swedish Automobile NV (“SWAN”) had been in talks with a Chinese distribution group and manufacturer that would settle debts, restart production and restructure to cut costs before establishing the brand in China. But GM, which still provides powertrains to Saab and manufactures the 9-4X crossover in Mexico, said it would suspend parts supply if the sale went through to protect its Far Eastern business interests. As a result, one of the Chinese investors withdrew, leading to Saab’s collapse. The announcement follows a year of production stoppages and UK importer Saab GB going into administration only days previously. Dealerships have since withdrawn warranty and goodwill agreements, while some have closed altogether. Roddy Graham, commercial director at Leasedrive, told Fleet World that parts shortages are already affecting repair times. However, as the drivetrains were provided by Fiat and GM, he added that it was mainly specialist parts that were expected to become hard to source in future. With bankruptcy having been expected for several months, residual values declined sharply in the second half of 2011 but have since steadied. Jeff Knight, editor of CAP Monitor, said most of the existing stock had been sold, so there was no mass registration of new vehicles expected, while Alan Senior, head of valuation services at VIPData, commented that a low supply of clean, low-mileage vehicles should help sustain prices. SWAN said in a statement that it expects no return on its shares, and has written off its interest in the carmaker completely. But the company could still be saved. India’s Mahindra and Mahindra, which owns SsangYong, is also rumoured to have expressed an interest in buying Saab, but declined to comment.

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TIMELINE Saab’s torrid 2011 23 Feb > Saab celebrates a year of independence with a party attended by 4,000 employees, dealers and suppliers. 29 Mar > Production at Saab’s Trollhättan factory stops for 24 hours, blamed on parts shortages. 06 Apr > Saab halts production for the second time in two weeks, blaming parts shortages. 02 May > Saab secures €59.1m funding to restart production. 03 May > Spyker and Saab sign an agreement with Hawtai Motor Group for €150m funding and a strategic alliance. 12 May > Spyker and Saab sign a memorandum of understanding with Pang Da Automobile Trade Co, China’s largest automotive distributor, including manufacturing and distribution joint ventures and €13bn of Saab vehicles. 27 May > Saab restarts production. 09 June > Saab halts production, with plans to restart once it finds a more stable supplier base. 23 June > Spyker, renamed Swedish Automobile NV (”SWAN”), says it is unable to pay wages. 27 June > Saab sells €13m of vehicles to China, giving short-term funding to pay wages and suppliers. 04 July > SWAN and Saab sign binding agreements with Pang Da and Zheijiang Youngman Lotus Automobile Co for a €245m investment with joint ventures in China, including developing three new vehicles (9-1, 9-6 and 9-7). 07 July > The EIB approves the sale and lease-back of Saab’s property. A production restart is scheduled for 9 August. 07 Sept > SWAN proposes a 12-month reorganisation of Saab, rejected by the court, which says it doesn’t believe the carmaker has enough funding to complete the process. Saab says it will appeal. 12 Sept > Two Swedish unions file for bankruptcy of Saab. 21 Sept > The Swedish Court of Appeal approves Saab’s voluntary reorganisation. 13 Oct > Saab receives its first funding from Youngman. 23 Oct > Pang Da and Youngman make conditional offers to buy 100% of Saab Automobile from SWAN. 07 Nov > General Motors says it will suspend the supply of technology to Saab if it is sold to Chinese investors, as the sale would not be in the interests of its shareholders. 29 Nov > UK importer Saab GB placed into administration 17 Dec > General Motors says it will not support the revised structure put forward by SWAN. Chinese investor Youngman withdraws from the buyout. 19 Dec > Saab Automobile files for bankruptcy in Sweden. In its statement, SWAN says it has written off its interest in the carmaker, and is expecting no return on its shares.

Making sense of the surveys in association with

We've pulled together the pertinent points from the myriad of research done in the fleet industry this month to give you a clearer view of what's really going on...

RISK MANAGEMENT A survey on fleet operators’ approach to risk (right) finds that speeding is a significant concern...

72%

Speeding

Richard Schooling, CEO of Alphabet GB, reckoned fatigue should be given more prominence: ‘Driver tiredness is a significant risk for fleet managers, especially as workloads increase in the current slow-growth economy. This is an area which should be constantly scrutinised.’

Driving above legal alcohol limit

66%

Making phone calls / texting / social networking whilst driving

66%

97% 83%

57%

Driver fatigue 2% 1%

Other

Source: Alphabet

94%

63%

Roadrage

96%

93% % concerned % included in policy

100

THE COMPANY CAR’S ROLE IN BUSINESS How important are company cars to the following areas? Percentage saying important or extremely important Being able to control travel and transport costs

56%

Retaining high quality employees as tool to maintain morale

41%

Company/brand image

35%

Status symbol to encourage employee development

32%

fleetworldgroup.co.uk

‘Overall fleet managers see company cars as an integral part of keeping costs down. Most prefer this option as opposed to going down the grey fleet route, using the company vehicle to act as a draw for prospective employees and to incentivise existing ones,’ said Alphabet’s Richard Schooling.

47%

Recruiting high quality employees as part of competitive package

Operators see the company car as an important means of controlling costs and retaining high-quality employees, and strongly prefer using companyowned vehicles for business journeys (72%).

Source: Alphabet

DRIVING TOO FAST A survey of 3,000 business drivers on their speeding habits revealed most break speed limits at one time or other. • 72.5% ‘occasionally would drive at speeds in excess of the speed limit’ • 13% ‘break speed limits on a regular basis’ • 14.5% ‘never drive above the legal speed limit’ Keith Allen, managing director of ALD Automotive, said: ‘This survey highlights that there is still a need to educate drivers on the consequences of speeding – both for their own safety and the massive impact it has on fuel consumption too.’ Source: ALD Automotive

EVs AND HYBRIDS A survey of financial directors finds their views on the most important benefits of electric vehicles: • Reduced fuel spend (73%) • Corporate responsibility and environmental benefits (65%) • Reduction in maintenance costs (23%) • Improve the marketability of their organisation (22%) Chris Chandler, principle consultant at Lex Autolease said: ‘Some of the so called ”soft measures” – such as reputation, refinement and kerb appeal – can be underestimated, but companies and their employees will not select vehicles on cost alone. Running costs will remain the primary motivating factor, of course, but LEVs will need to compete with petrol and diesel alternatives in all areas to ensure their slice of the market grows.’ Source: Lex Autolease

DRIVING FOR BUSINESS Urban blight – business drivers’ most hated reasons for travelling to cities: • Confusing road systems (40%) • Traffic jams (30%) • Rude motorists (27%) • Too many one-way systems (22%) • Dangerous roundabouts (19%), • Excessive road works (11%) • Too many speed cameras (10%) Linda Malliff, director of central services at Thrifty Car and Van Rental, said: ‘It’s only natural that there are certain places we as motorists would rather avoid and it’s clear from our survey that London, Birmingham and Manchester are the three cities causing the most distress.’

THE TOP FIVE MOST DREADED DESTINATIONS FOR DRIVERS ARE:

LEEDS MANCHESTER BIRMINGHAM

BRISTOL

LONDON

Source: Thrifty Car & Van Rental

• for the latest daily news from the fleet industry, visit www.fleetworldgroup.co.uk January 2012

COMMENT

Reasons to be cheerful... John Lewis Chief Executive BVRLA

‘2012 could be the year that EV sales really take off’ 14

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Despite most economists producing a dire prognosis for the year ahead, I have taken a more positive approach, in what I am calling my “Fleet Optimists Guide to 2012”. With economic growth slipping across the world and austerity measures biting hard in the UK, business is not going to get any easier in 2012. But we should always remember that road transport is an essential, not a luxury, and vehicle rental and leasing will continue to gain in popularity as long as businesses continue to look for cost-effective, hassle-free motoring. I am not exactly going out on a limb by predicting that fleet vehicles will continue to dominate the car market in 2012, potentially gaining an even bigger share of new registrations – which will fall short of the 1.9 million achieved in 2011. The 2011 new car registration figures from the SMMT suggest that many company car stalwarts could be under increased pressure this year. We are going to see some very interesting competition below the premium marques, with Korean brands in particular challenging existing fleet favourites including Vauxhall and Ford. FUNDING The half-dozen new funders recruited last year will really start delivering credit to the independent leasing and rental sectors during 2012. These funders are fully engaged with the motor finance market and should hopefully be immune to any further eurozone-related banking crisis. They will also reduce the industry’s dependence on non-interested parties such as Lloyds, which continue to cynically price themselves out of the market. USED MARKET Despite a continued drop in demand for used cars, I expect residual values to hold up well

this year due to the reduced amount of stock that is coming into the system. You only have to look at the way prices held up in the final quarter of 2011, despite some of the pessimistic predictions from so-called remarketing “gurus”. ELECTRIC VEHICLES If 2011 was the year that the electric vehicle hype bubble burst, 2012 could be the year that this exciting new technology recovers some of its credibility. This year will see a much wider range of electric cars and vans made available. It could be the year when EV sales really take off, but only if manufacturers are more realistic on pricing and the Government extends the grant scheme to vans as well, where the running cost equations are much more attractive. TAXATION & REGULATION Late last year the Government produced some concrete results from its Red Tape Challenge and also announced plans for a major modernisation of the DVLA. I am confident that both these measures will lead to less bureaucracy and administrative costs for the fleet sector. However, as with many Government projects, the improvements on offer will take a long time to materialise. All motorists have long since given up any hope of redressing the unequal tax burden they pay for the use of Britain’s roads, but there are signs that the Government is beginning to implement its simpler and fairer approach to fiscal matters. This should lead to a steady and well-signposted change in company car tax CO2 thresholds that will hopefully enable fleets to plan at least three or four years ahead. The Government has just started to wake up to the fact that a successful emission-based tax regime means less revenue for the Exchequer, but we will be alert to any kneejerk efforts to make up the shortfall.

COMMENT

Dealing with dealers The Insider Our tame eet manager despairs of service standards in the dealer network.

‘ The Welcome Person at the desk by the door wasn’t remotely welcoming.’

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Recently I had the misfortune to have to go to a major car manufacturer’s dealership. I eventually parked in one of the three extrasmall spaces allocated to customers. Walking in through huge glass doors across acres of shiny floor, I found that the Welcome Person at the desk by the door wasn’t remotely welcoming, keeping his eyes studiously glued to the paperwork in front of him. I joined a small queue at service reception and waited, and waited, and waited. The service receptionist was dealing with an elderly gentleman who was being – how shall we say – exacting in the collection and delivery requirements for his ageing supermini. She was very patient with him, and extremely courteous, and very efficient, as she was when it finally came to my turn to be ‘served’, to use an old-fashioned turn of phrase. I had no problem whatsoever with the service offered by her, nor the chaps who actually fixed the problem on the car I had brought along, weeks after a different dealership had spectacularly failed to do so. However, while I waited my turn, there were at least five other people behind the same desk who all busied themselves with other tasks and did not so much as acknowledge my presence. Now, it may not have been their job to attend to reception, but in my business I find a warm ‘good morning’ and an attempt at helping a customer, or at least saying something like ‘we’ll be with you in a minute’ goes a long way. How different from the experience at a small independent when I bought a car myself. They couldn’t have been more helpful before, during and after the sale. They had a local family business reputation to protect. After my visit to the dealers, I got back to the office to find a complaint from the boss. His wife had discovered a small nail in the

sidewall of a tyre on his executive car. She had gone to the local branch of a national tyre service where they removed a carpet tack, nothing lengthy. She asked them to repair the tyre but they said it was bound to lose air again in a couple of weeks and that they must fit a new tyre. Not wishing to disturb her busy husband she let them go ahead and fit a £200 tyre. When the boss got home he noted the report sheet also showed the replaced tyre as three-quarters worn across the tread, when it had actually been fitted only one month previously. He wasn’t slow in asking for his money back but the damage caused to the tyre company by this incident will have more far-reaching consequences. The story will be retold at dinner parties around the local area and friends will take their business elsewhere. The third incident in the same week was a story often told. Another senior member of staff went into his local car sales showroom to buy a new car, dressed in T-shirt and jeans. The salesman disdainfully asked how he intended to pay for such an expensive purchase. The answer was, of course, ‘cash, but not here’ and my colleague duly found somewhere else that was more respectful of him and his money. Fleets are big purchasers and usually we are fortunate enough to get to deal with the best sales and customer-facing employees who understand the meaning of service and how hard it is to win business in the current climate. What a pity the message is less well spread in the local retail sector who, after all, still represent the same brand. We are often jokingly warned never to work with the public, children or animals but this month you can guess which category I would add to that.

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h wit n tio cia o s as in

DRIVEN

Volvo V60 Plug-In Hybrid Sweden’s first hybrid really is the best of all worlds, says Alex Grant. SECTOR Compact executive PRICE £45,000 - £50,000 FUEL 148.7mpg (TBC) CO2 49g/km Volvo’s entry into the electric market is a complicated one, but the V60 Plug-In Hybrid’s appeal couldn’t be simpler. This upmarket, sporty estate car has 285bhp and 480lb.ft and passes 62mph in 6.2 seconds, yet it returns 148.7mpg and emits 49g/km CO2, costing a predicted £83 per month in Benefit in Kind tax – less than the DRIVe version. Too good to be true? Well, the £50,000 price tag might be a stumbling block. Volvo sees this as a corporate-focused car in the UK, at least once it reaches full production and becomes a bit cheaper. The first 1,000 cars leave the line next November but only 130 of those will come to the UK despite it being one of Volvo’s biggest markets. It’s also undecided how they’ll be allocated, with demonstrators vital if Volvo wants to get potential customers to try the technology for themselves. Visually, it’s hard to pick out from the conventional V60. Almost identical to the concept cars, with only the distinctive flat white paint job absent, only the D6 and Plug-In Hybrid plaque and additional charge port on the wing give anything away. Launch models, which will be badged SE Lux in the UK, will be a single high-spec version finished in dark silver with gloss black aerodynamic parts. Interior changes are as subtle. The boot

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floor is 60mm higher to accommodate the battery, there’s a futuristic, partially transparent gearknob and the dials have been replaced with an intuitive digital display. This is one of its best features, too, showing a plethora of information including how close the driver is to activating the diesel engine. Clever features also include a new Volvo On Call smartphone app, which will allow owners to check and control charging times, monitor errors and pre-set the cabin temperature remotely. There’s a real sense that Volvo has been very thorough. The bulk of its power comes from Volvo’s latest 215bhp 2.4-litre D5 diesel engine, which drives the front wheels. At the back, a 70bhp electric motor powers the rear wheels giving a 31-mile range on a full battery charge, with the double benefit of a silent switchover to four-wheel drive on slippery surfaces and an 1,800kg towing capacity. These can work independently, or together for full power, via three selectable driving modes. Its pace belies its tiny fuel consumption, with the torque delivery from its combined diesel-electric powertrain giving the V60 an effortless surge of acceleration while switching almost unnoticeably between its two power sources. The extra 300kg

hasn’t blunted its agility either, thanks to a newly developed chassis setup. And it’s just as easy to drive the V60 economically. Outside Power mode the diesel engine doesn’t cut in except under heavy throttle, and the meter helps avoid using it at all. Volvo has even included a powersaving mode that prioritises diesel, letting drivers save the battery for inner-city use where the cost savings are biggest. The finished car is still almost a year away, but it’s coming very close to market-ready. Volvo is being typically detailed in its final refinements too, with a fleet of 200 pre-production cars planned for tests in real-world conditions before letting customers behind the wheel. But though it’s a complicated-sounding package, this combination of ferocious power and low running costs should put it on plenty of eco-executive wishlists.

verdict This well-executed high-performance hybrid should prick up a few ears, and offer a greener alternative to German sixcylinder diesel cars. But, beyond tax, it’ll bring the biggest cost savings for shortdistance commuters doing most of their driving on electric power.

DRIVEN

Kia Optima Kia’s latest is a competitive and stylish entry into the fleet heartland, says Steve Moody. SECTOR Upper-medium PRICE £19,595 - £25,995 FUEL 128 - 158g/km CO2 57.6 - 47.1g/km Remember the Magentis? No? Well, don’t worry, because Kia’s old large saloon is so distantly related to the new Optima that it seems almost inconceivable a car company could have made the leap between the two. The Optima embodies everything that is so impressive about 2012 Kia – bold, handsome, well built and, as always, great value. The firm’s first serious challenge in the European D-segment, the Optima only comes in saloon form, which is a bit of a shame but mainly due to its success elsewhere. More than 200,000 have already been sold in Korea, the USA and China, and hatchbacks and estates are in low demand there, so production has been set at four-door only. Taking this into consideration, and the fact that this is the firm’s first effort in a fleet heartland sector, Kia expects to sell about 1,500 a year in the UK, which might be a target slightly on the cautious side. The brand is making great strides in fleet, and the Optima will certainly help further – it might not be a big seller but it does mean Kia can offer credible corporate cars at all sizes. Even before the arrival of the Optima, Kia’s corporate sales were going well – up by 145% between 2010 and 2011, for a market share that improved from 1.58% to 2.42%. Where the Optima scores highest is in the way it looks. No other D-segment model

can compare to its sharp looks and long coupe-ish roofline. The ”Tiger Nose” grille, LED running lights and wraparound headlights give it real presence, while the chrome strip from A to C-pillar and elegantly realised rear add up to a very handsome car. The Optima goes on sale with just one engine: a new 134bhp version of the 1.7-litre turbodiesel seen elsewhere in the range. All except one model get a choice of six-speed manual or automatic transmissions, while manual versions feature EcoDynamics fuel-saving measures including Intelligent Stop & Go. The result is CO2 emissions as low as 128g/km and near-60mpg fuel economy, which isn’t class-leading but, when all else is considered, shouldn’t be deal breaking. For example, it is tremendously wellspecced, so any increase in BiK tax would be easily offset by trying to bring rivals up to a similar level of equipment. All versions have alloy wheels, air conditioning or climate control, LED daytime running lamps, Bluetooth with voice recognition and music streaming, steering wheel-mounted audio controls, powered windows and mirrors and cruise control. The range is simple, comprising 1, 2 and 3 trim grades with the mid-range versions offered as luxurious ”Luxe” or driver-focused

”Tech” models. Prices start from just under £20,000, although the likely most popular sellers, the 2 grade cars, are £21,695. Inside, the cabin is solid and well-appointed without being spectacularly opulent, but its major credit is space and comfort. The seats are superbly supportive, and the longer, wider bodyshell with a 75mm longer wheelbase than the Magentis translates into room only the Skoda Superb can beat. Boot capacity has been enlarged to 505 litres too, while the 60:40 split folding rear seats allow longer loads to be transported. On the road, there’s really little wrong with the Optima. It rides well, and offers just enough performance, but no more. On the motorway, it is quiet and refined, with a decently snickety gearchange, and the steering is direct if a little inconsistent in weighting. Overall, then, it compares well with anything in the class.

verdict Great-looking, well-specced, well-built and offered at a very competitive price, the Optima is a credible long-distance cruiser with enough driver involvement not to be dull. Only slightly high CO2 figures mar what is otherwise an impressive package, and one that competes with the best in the sector.

January 2012

DRIVEN

Toyota Avensis Can aesthetic tweaks and technical tinkering put the Avensis top of the D-sector? Sue Baker finds out. SECTOR Upper-medium PRICE £22,560-£26,825 FUEL 62.8mpg CO2 119g/km Four years is a long time in the fleet industry, and the Toyota Avensis, launched in 2008 and hardly class-leading then, has been ripe for an overhaul to keep up with competitors for too many of those years. So the Derbyshire-built car has undergone a midlife facelift, with a raft of styling and engineering changes aimed at reenergising its appeal and the way it drives. Cosmetically the update is relatively modest. There are no major panel changes to the body, but the car has been given a new grille and restyled bumpers that add marginally to the overall length. The headlamps are narrower with daytime running lights added – LEDs on top T Spirit models – and there are extra touches of chrome. Toyota says the look of the new Avensis introduces the “face” of its next-generation models. Better driving dynamics and improved ride comfort were the targets of the engineering changes. The car body has been made more rigid with areas of high-tensile steel and extra spot-welding. There is extra insulation to reduce noise and vibration, and to help fuel economy there are aerodynamic tweaks while low rolling resistance tyres are now specified. The electric power steering has been retuned, and both the front and rear suspension have been modified. The 2.0-litre D-4D engine, the range

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best-seller, has a new turbocharger to achieve the same power delivery at lower engine revs but with more refinement. There is a revised diesel glow plug and changes to the oil pump and water pump, plus component modifications that have cut 3kg off the weight of the engine. The combined result of this is a 17% improvement in the car’s fuel economy, going from 53.3mpg to 62.8mpg, and a 14% reduction in CO 2 emissions, down from 139 to 119g/km in the saloon, 120g/km in the Tourer. The resulting drop in the BiK rate is significant, down from 20 to 13%. Interior revisions include redesigned front seats to improve comfort and increase lateral support. There are more soft-touch surfaces on the dash and doors, and the door grips and switchgear have been made more tactile. All versions benefit from fabric upgrades, and the instrument dial lighting has been changed from amber to white for improved clarity. This is also the first car to get Toyota’s Touch and Go integrated multimedia and navigation system fitted as standard, with the unit featured in all except the T2 trim level. T Spirit models introduce Touch and Go Plus with voice recognition and email and calendar access on the move. Although all the changes are worth-

while improvements that have certainly addressed some of the areas where the Avensis needed attention, the update is relatively modest and it is questionable whether the result is radical enough. Toyota’s D-segment model still feels a bit lacklustre compared with the best of the competition. Although the car has now closed the gap on the Mondeo, Insignia and Passat, this midlife facelift is no overtaking manoeuvre. The car is certainly a little quieter, and the suppleness of the ride is improved, but the steering is still a bit numb and not particularly communicative, and the gearchange is not quite as slick as it ought to be. The handling is secure and the Avensis hangs on to the bends well enough, but it lacks much entertainment and does not have the engaging driver’s car feel of its better rivals.

verdict There is the feelgood factor of the Avensis being British-made and it now boasts much more competitive CO 2 levels. But the all-round improvement is modest, and it has the feel of a catch-up job rather than anything to really worry the sector leaders.

DRIVEN

Vauxhall Insignia Exclusiv Nav 2.0 CDTI Ecoflex Economical core diesel engine shows you don’t need to downsize, says Alex Grant. SECTOR Upper-medium PRICE £22,190 FUEL 64.2mpg CO2 116g/km

DRIVEN IN BRIEF

Against the rising tide of downsized engines and niche-busting MPV and crossover models joining the corporate mainstream recently, Vauxhall’s latest revisions to the traditional D-segment Insignia sound almost unrevolutionary. Instead of a tiny oil burner, a very conventional 2.0-litre diesel with an

equally unremarkable-sounding 128bhp resides under the bonnet of the 2012 model. But there’s virtually nothing here to fault. The Insignia remains, even after almost four years on sale, a very strong fleet proposition thanks to Germanic build quality, stable high-speed cruising ability and

Porsche Panamera Diesel

MINI Cooper SD Coupe

The S-Class might be the default choice for most high-ranking executives, but by far the best car in the luxury sector now is the new diesel Porsche Panamera. Its 250bhp 3.0-litre V6 gives comparable straight-line pace with lower CO2 levels but it is more expensive at the front end, offset by residual values a good ten percentage points higher than anything in its class. Plus, the cabin is wonderful, plonking the driver low amidst a plethora of aircraft-style buttons and superb finishes. It is incredibly refined and comfortable too, managing to be wafty, but turning into a drivers dream when the mood takes. Did I mention the vast rear legroom and the fact the looks grow on you too? SM

That low roofline and chubby rear end might divide opinions, but it’s hard to fault the two-seater as a driver’s car. Weighing 25kg less than the hatch, the SD’s 2.0-litre diesel makes up for its average performance times and gruff engine note with lively acceleration and fuel economy that’ll please even the most miserly drivers. So despite those odd looks, the Coupe shapes up to be a close relation to the original MINI. It’s great to drive, has headturning looks and costs next to nothing to run. Were it not for the inflated screen price, despite the drop in practicality, this would be the price-cutting enthusiast’s MINI of choice. AG

SECTOR Luxury PRICE £62,454 FUEL 43.5mpg CO2 172g/km

SECTOR Coupe PRICE £20,510 FUEL 65.7mpg CO2 114g/km

styling that’s a couple of generations forward from the dour last-generation Vectra. The recent tweaks are limited to underbody aerodynamic revisions, a start/stop system and low rolling resistance tyres, which are enough to make it a very competitive allrounder once again. That 2.0-litre engine is almost as efficient as its closest rival, the 115g/km 1.6-litre diesel Mondeo Econetic, but with a power difference large enough to make corporate drivers sit up and notice. In the Ford, there’s a feeling of bluntness at low revs that curbs the enjoyment from what is ultimately a slightly better driver’s car. By comparison, the Insignia rarely feels laboured. It lags slightly at just over idle speeds, but the turbo quickly brings the engine to life and its high -speed refinement and responsiveness are impressive too. Apart from the ”eco” button on the dashboard, drivers need never notice that this is a green model. Add in longer 20,000-mile service intervals and Vauxhall’s 100,000-mile warranty, both desirable qualities for a high-mileage fleet car, and the £1,500 price increase against the Ford starts to look less important. It’s a shame Vauxhall didn’t push just a little harder to bring it under 115g/km, as the resulting drop in Benefit in Kind banding would have made this a no-brainer.

BMW X1 sDrive20d EfficientDynamics The X1 may have designs on being a compact SUV, but in two-wheel drive form it’s better thought of as a slightly tougher, more spacious and higher-riding 1 Series than a soft off-roader. And this sure-footed compact really does live up to BMW’s driver’s car image. The EfficientDynamics upgrade makes this even more tempting, shedding 20g/km CO2 emissions compared to the regular sDrive20d yet retaining the potent 161bhp output. BMW has even fitted the latest noise-reducing technology to make it an even quieter cruiser. Audi’s Q3 may wear a sharper-suit, but the BMW remains a more involving drive. AG SECTOR Compact SUV PRICE £25,715 FUEL 62.8mpg CO2 119g/km

January 2012

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F 2012: T FLE ET CARS O

H E H OT O N E S

All the important launches in the coming 12 months - what, when, and why. By Alex Grant.

CITROEN DS5 Having taken a Germanic approach to established rivals with the C5, the DS5 introduces a welcome dose of French design flair into the D-segment. Part luxury estate and part coupe, it has the build quality to match upmarket German saloon cars, yet comes packaged in a stylish French body with a plush aviation-inspired cabin. It’s also a welcome return to technological innovation for Citroen. Alongside tried and tested HDI units, DS5 will be the first in its range to feature the 200bhp diesel-electric HYbrid4 powertrain, with 99g/km CO2 emissions and an electric rear axle for extra traction and zero tailpipe emissions in urban driving. WHEN? Q1 // 2012

RENAULT SCENIC // RENAULT MEGANE

VAUXHALL ZAFIRA TOURER

Although Renault is focusing its marketing on electric vehicles at the moment, there’s an overhaul bound for the rest of the range too. In 2012, its core models will be refreshed with new engines and updated family styling. This begins with a facelift for the Twingo and Scenic in February, with the latter gaining a more efficient version of the 1.5 dCi 110 engine with CO2 emissions of 105g/km. A revised Megane hatch follows in April, which dips under 100g/km with the same engine. At the same time, Renault will launch its 1.2-litre TCe 115 turbocharged petrol engine in both cars, returning 25% better fuel efficiency than the 1.6 16v it replaces.

Priced above the conventional Zafira, the Zafira Tourer introduces a more stylish, luxurious MPV into the Vauxhall range. Designed by Mark Adams, who’s also responsible for the Ampera, it looks almost identical to the Geneva concept car from last year and features a longer wheelbase than its sibling with components from the Insignia, claimed to make it a more involving car to drive. None of this has detracted from its practicality. The Zafira Tourer has a more spacious cabin and new version of the Flex7 adaptable seating. WHEN? March 2012

WHEN? February and April 2012

January 2012

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KIA OPTIMA Kia and parent company Hyundai are on a roll with their latest products, and the new Optima’s sharp styling and economical engine should help establish a Korean presence in the company car sector. So far, demand in Korea and North America has vastly outstripped production, to the extent that it’s now being manufactured in the United States to allow capacity for European cars. At launch, the engine line-up will comprise a 1.7-litre diesel, similar to the unit found in the Sportage, and a 2.0-litre direct-injection petrol. Kia will also bring the Optima Hybrid to Europe, but with a 2.0-litre petrol rather than the 2.4 sold elsewhere. WHEN? February 2012

FIAT PUNTO EVO // ALFA MITO TWINAIR Winner of the International Engine of the Year 2010, Fiat’s 900cc TwinAir engine remains the most efficient petrol unit on sale in the UK. Now the group is ready to extend its benefits beyond the A-segment, fitting it to the Alfa Romeo MiTo and Fiat Punto Evo from April. Power outputs are identical in both cars, at 85bhp and 145Nm, with a switchable ecodriving mode that limits torque to maximise fuel economy. With the help of start/stop technology and the unit’s low weight, it will give Fiat and Alfa Romeo the lowest petrol CO2 emissions in the B-segment at 98g/km for each car. WHEN? April 2012

PEUGEOT 208 Peugeot has had some noteworthy B segment cars in its history, and the 208 is the latest in a popular line. Kerb weights have fallen between 110 and 173kg compared to the 207, and with a new engine range it boasts an average 34% improvement in CO2 emissions across the board. Peugeot claims a more involving drive and reduced running costs due to the reduced weight. All diesel engines emit less than 100g/km CO2 and even the entry-level petrol emits 99g/km. The 208 has also benefited from Peugeot’s Germanic interior build quality, while boot space and rear legroom are greater than the 207. WHEN? Spring 2012

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MAZDA CX-5 Set to roll out across the entire range over the coming years, Mazda’s Skyactiv Technology takes an enthusiast’s approach to saving fuel. Instead of hybrids, the carmaker has invested in lighter bodies, improved chassis technology and new drivetrains to improve efficiency without sapping driver appeal. The CX-5, which debuts the brand’s new family design language, will be the first car with Skyactiv Technology, including an all-new diesel engine with CO2 emissions from 119g/km and Euro6 compliance without filters or additives. And the 2.0-litre petrol is just as impressive, returning better fuel economy than the outgoing 2.2-litre diesel. WHEN? Q2 2012

TOYOTA PRIUS+ Hybrid technology is now mainstream, and Toyota is readying an entire family of vehicles based on its tried and tested powertrain. By the end of 2012, it will have four hybrid models on sale in the UK, including the Yaris and Prius Plug-In Hybrid. But the Prius+ will be the most revolutionary. Launched as the most efficient seven-seat vehicle on sale, its 99g/km CO2 emissions put it in the 5% benefit in kind tax band with VED and London Congestion Charge exemption. Toyota has been clever with the packaging, too, fitting the battery into the centre console to maximise cabin and boot space. WHEN? Q2 2012

FORD FOCUS 1.0 POWERBOOST // FORD FOCUS ELECTRIC Ford will introduce two ground-breaking powerplants in the Focus next year, and as a core fleet car it has real potential to change mass-market attitudes. This starts with a 1.0 three-cylinder EcoBoost petrol, with performance similar to a conventional 1.6, but emissions close to a 1.6 diesel. At the end of 2012, the Focus Electric will launch in the UK. Already on sale in the US, it returns equivalent to 120mpg with a 100-mile range, unique dash display and Microsoftdesigned smart charging system. Hybrid and plug-in hybrid versions of the Focus-derived C-Max are also due next year. WHEN? Q2 2012 // Q4 2012

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RENAULT TWIZY // ZOE Unlike the Fluence and Kangoo, the futuristic Twizy (main pic) and Zoe are the manufacturer’s first models to be designed from the ground up to run on electric power. And, because they’re sold with the carmaker’s unique battery leasing package, they have a screen price similar to conventionally powered compact cars. At £6,690 after the £5,000 government subsidy, the 450kg two-seat Twizy city car offers a 60-mile electric range and customisation options. The Zoe hasn’t been unveiled in production form, but this will break cover next summer looking almost identical to the concept car pictured below, while offering Clio-sized practicality and a 100-mile range. WHEN? April 2012 // Q3 2012

VAUXHALL AMPERA // CHEVROLET VOLT General Motors is out to broaden the appeal of electromobility with its range-extending vehicles, offering up to 50 miles of pure electric motoring with the added flexibility of a 310-mile range and conventional refuelling times when needed. Though always driven by an electric motor, its range-extenders have a 1.4-litre petrol engine that works as an on-board generator to top up the batteries when they fall under 33% charge. It means the Chevrolet Volt and mechanically identical Ampera (pictured below) emit 40g/km CO2, fall into the 5% Benefit in Kind tax band, which should help attract the 70% fleet sales GM is predicting. WHEN? Spring 2012

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VOLVO V60 PLUG-IN HYBRID Another unique proposition for fleets, this will be the first diesel-electric plug-in hybrid when it goes on sale next year. The new powertrain, badged D6, features a 215bhp diesel engine powering the front wheels and a 70bhp electric rear axle, giving a 31-mile range on its socket-charged battery and fourwheel drive traction on slippery roads. Volvo sees this as a car with massive corporate appeal. The combined 285bhp allows it to pass 62mph in 6.2 seconds, the same as a T6 AWD model, while 40g/km CO2 emissions result in an £83 monthly benefit in kind tax charge – lower than the DRIVe version. Only 130 single spec models are coming to the UK in its first year, with full scale production scheduled for mid-2013. WHEN? Q3 2012

What’s new in 2012... and when Q1

• Citroen DS5 (Q1) • Hyundai i30 (Q1) • Mercedes-Benz SLK250 CDI (Q1) • Toyota HiLux / Aygo / Prius facelift (Q1) • Volkswagen CC (Q1)

• Mazda CX-5 (Q2) • MINI Roadster (Q2) • Peugeot 208 (Q2) • Toyota Prius Plug-In / Prius+ / Yaris HSD (Q2)

JANUARY • Chevrolet Aveo (Jan) • Ford Focus Estate and Ranger (Jan) • Honda Civic (Jan/Feb) • Hyundai i40 Saloon (Jan) • Mercedes-Benz SL (Jan) • SEAT Ibiza facelift (Jan/Feb) • Suzuki Kizashi (Jan)

APRIL • Alfa Romeo MiTo MultiAir (Q2) • Fiat Punto TwinAir (April) • Honda Insight and Mugen CR-Z (April) • Renault Megane facelift // Twizy (April) • Volkswagen Passat AllTrack (April)

FEBRUARY • BMW 3 Series (Feb) • Fiat Panda (Feb) • Hyundai Veloster (Feb) • Kia Optima (Feb) • Renault Twingo / Scenic facelift (Feb) • Vauxhall Combo (Feb) MARCH • Chevrolet Volt (Mar) • Peugeot 508 RXH (Mar) • SEAT Toledo (Geneva?) • Vauxhall Zafira Tourer • Vauxhall Insignia BiTurbo (Mar) • Volkswagen up! 3dr (Mar)

MAY • Chrysler 300C (May) • Renault Fluence Z.E. (May) • Vauxhall Ampera (May) JUNE • Kia cee’d hatchback (June) • SEAT Mii 3dr (June) • Skoda CitiGo (June)

Q3 • BMW ActiveHybrid3 (Q3) • Citroen C4 Aircross (Q3) • Ford Focus ST and B-Max (Q3) • Mercedes-Benz GL refresh (Q3) • New Renault Clio (Q3 unveil) • Volvo V60 PHEV (Q3)

JULY • Subaru BRZ (July) • BMW 6 Series Gran Coupe (July) AUGUST • SEAT Leon unveil (August) SEPTEMBER • Chevrolet Cruze Station Wagon (Sept) • Kia Cee’d SW (Sept) • Skoda compact saloon (Q3)

Q4 • Audi A8 Hybrid (Q4) • BMW Z4 2.0-litre • Ford Focus Electric and Kuga (Q4) • Jaguar XF Sportbrake (Q4) • Mercedes-Benz A-Class (Q4) • MG3 • MG6 diesel (Q4) • Mitsubishi Outlander and Mirage (Q4) • Peugeot 508 HYbrid4 (95g/km) • Renault Zoe (Q4) • Low CO2 SEAT Exeo • Subaru XV • Vauxhall A-Segment car OCTOBER • Honda CR-V (Oct) • SEAT Mii 5dr (Oct)

January 2012

in association with

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

• • • •

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

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

• Operating

• CASE STUDY - De-carbonising the fleet >

Director, Willmott Dixon • Future developments in electric vehicle

drivetrain and battery technology > Alex Stewart, Senior Consultant, Element Energy. • Developing the business case for electric

vehicles > Nigel Underdown, Head of Transport, Energy Saving Trust and Robin Haycock from The Climate Group. Time-style debate > panel discussion chaired by BVRLA Chief Executive, John Lewis.

• Question

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

VENUE THE SILVERSTONE WING The new Silverstone Wing offers the very latest in state-of-theart conferencing and event facilities. Situated in the heart of the world famous Grand Prix Circuit at Silverstone, the Silverstone Wing has all the unique excitement and prestige needed to make powerful and lasting impressions.

WHERE & WHEN?

THE SILVERSTONE WING WEDNESDAY 18 TH APRIL 2012

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

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

COPSE CORNER

SILVERSTONE THE STOWE CIRCUIT

WOODCOTE CORNER

NATIONAL PITS STRAIGHT BROOKLANDS CORNER

WELLINGTON STRAIGHT LUFFIELD CORNER

MAGGOTTS CORNER AINTREE CORNER VILLAGE CORNER BECKETTS CORNER

ABBEY INTERNATIONAL PITS STRAIGHT

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

THE LOOP FARM CURVE

CHAPEL CURVE

HANGAR STRAIGHT CLUB CORNER

VALE

STOWE CORNER

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

FEATURE Leasing

Leasing lessons for

2012 For perhaps as much as a decade, the concept of consolidation in the leasing industry has been a constant source of discussion, but much of it has been exactly that – discussion. However over the last few years, and especially in 2011, that talk has turned into action. Last year saw a number of leasing firms swallowed up by others, as banks and owners decide to recapitalise or use their expertise elsewhere, while others have recognised the difference between funding and managing assets – two entirely different skill sets – and it could well be that more of those who have the expertise to fund decide they need more of those who have the expertise to manage as partners. With the top 10 leasing companies accounting for about a quarter of all funded vehicles, and the top 25 accounting for more than 90%, most industry commentators expect the balance of power to shift further towards the heavyweight end. Mark Chessman, head of commercial management at Lex Autolease, expects to see this continue to happen. He said: ‘Consolidation will remain a feature of the industry as leasing companies, their customers and suppliers continue to evolve to meet the demands of operating in the current credit-constrained economic environment. ‘A combination of overseas banks and financial institutions, increasing presence of manufacturers and some smaller niche operators are the type of new players that might get involved in the market.’

The leasing industry saw significant change last year. Is it due for more of the same? Steve Moody speaks to some of the key players.

Richard Schooling, chief executive, Alphabet, agreed to an extent, but added that European-wide integration is more likely. ‘Times remain tough for leasing companies that do not have access to their own funds and it seems quite unlikely that any new, large financial players will have the appetite to enter the fleet funding market with things as they are,’ he said. ‘However, in terms of consolidation, we foresee further European consolidation as the trend towards Europe-wide tenders continues. In the fleet services sector we may see more companies moving into new ownership during 2012, as happened with the sale of AllStar fuel cards by Arval and the acquisition of Fleet Support Group by Automotive Resources International at the end of last year.’ Much will depend on the banks’ views of their non-core activities, and whether they feel fleet leasing is still worth the financial return, within the context of wider economic issues they may have to deal with. Roddy Graham, business development director at Leasedrive, explains: ‘As the squeeze continues on financial institutions, set against a backdrop of the Eurozone debt crisis, expect further banks to question noncore activities and consider concentrating on what they do best. At the same time, expect potential new funding entrants to the leasing market with an appetite for healthy profit. We demonstrated creativity by engaging with Investec to facilitate and importantly fund the Masterlease UK opportunity and introduced a new financial investor into the fleet sector.’ COST CONCERNS Cost concerns are never far from the top of the agenda for fleets, and those issues tend to rise as the economy gets tougher. For many businesses, it seems this will be a year of ensuring controls are in place and all expenditure is justified. But it’s not a full-on “batten down the hatches” situation, as in 2008-9, according to Alphabet. Surprisingly the Alphabet Fleet

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FIRST ISSUE

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JANUARY 2012 Issue 001

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PREVIEWS HYBRID NSX CONCEPT REVEALED AUDI ANNOUNCES â&#x201A;¬10.5BN EV INVESTMENT ROAD TEST VOLVO V60 PLUG-IN HYBRID

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FEATURE Leasing

Leasing lessons for

2012 Management Report found that costs are by no means rising across the board; around half of the fleets in the sample reported that overall costs have remained static in 2011. Costs remain a major preoccupation for fleets however. They come second only to driver safety in respondents’ list of concerns, while the majority of changes made by fleets over the last year have been directly connected to achieving cost savings. Roddy Graham expects to see cost as the primary concern of 2012. ‘Top of the agenda in the current tough economic climate is a renewed focus on costs. Expect every cost line to be challenged and the winners will be those who do even more with less. ‘Past failure to invest in leading-edge fleet systems will expose those who for too long were content to rest on their laurels. A combination of world-class fleet management systems, integrated solutions and topquality people will be the winning formula for delivering further added value to costconscious customers.’ And of cost concerns, by far the biggest element causing worry, as always, is the price of fuel. According to Alphabet’s report, eight out of 10 fleet managers reported that their fuel bills have increased “substantially” over budgeted levels, and the firm found that many fleets are prioritising fuel-efficient technology in an attempt to redress the balance. Around half of businesses are also evaluating business journeys and a third of those that have not already done so are in the process of introducing fuel cards to reduce costs. Schooling adds: ‘The UK’s economy is more resilient than many give it credit for. But it faces headwinds from the Euro crisis, volatile energy prices and the global slowdown. Companies remain focused on the need to contain costs and there is definitely a requirement for businesses to make their assets sweat more. 2012 will see a number of new innovations launch in the leasing sector and businesses will be able to take advantage of these to move staff around the country efficiently and cost effectively. ‘As slow growth continues companies are looking for new ways to reward and motivate key staff without loading the bottom line. “Green” cars are an obvious option

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thanks to their tax benefits and popularity with employees. As an industry, we are very well placed to meet this demand via taxefficient solutions like salary sacrifice, which we can integrate seamlessly with our company car and van solutions.’ COMPANY CARS IN 2012 Although the dramatic rise in fleet sales last year will in some part have been fuelled by manufacturer actions taken to get unsold retail units on the road in some form or other, there can be no denying that “true” fleet sales rose too, suggesting a renewed vigour in the sector. It’s a trend leasing companies have certainly seen. Zenith’s Andrew Cope explains: ‘The company car has been growing in popularity and we expect this will continue in 2012. Over the past 12 months we have seen significant growth in new cars under management, through a combination of a move back into cars from cash takers, salary sacrifice car orders and new customers wins. ‘During the recession when private sales (often seen as a good indicator of the state of the economy) have suffered, the fleet market, although impacted, has bounced back more quickly. The number of company car drivers is growing, and, according to figures from the SMMT, whereas private sales have dropped in 2011, compared to the previous year fleet sales have increased. ‘Drivers are swapping their privately owned vehicles for a newer company car, through either a traditional company car scheme or a salary sacrifice arrangement.’ Roddy Graham agrees: ‘Companies are becoming increasingly aware of their dutyof-care responsibilities. Driven by concerns over potential corporate as well as individual director liability, companies are favouring a return of the company car. For them, it’s a safer, greener and cheaper option than cash-for-car and for drivers it’s a more attractive component of a total reward package. Fuelled by a combination of factors – lower CO2 emissions, higher mpg, wider model choice, tougher car policies, a sensible Benefit-in-Kind regime, greater vehicle manufacturer incentives – the company car is back on the road again, something I predicted would happen six years ago!’

Movers and shake-ups: changes to leasing in 2011 December 2010 Investec Capital Markets, part of Investec Bank, buys the UK division of contract hire firm Masterlease from Ally Financial (formerly GMAC) for an undisclosed fee. Leasedrive Velo Group is contracted to take over the management and day-today operations for Masterlease and rebrands in May 2011. July 2011 Alphabet, the multi-marque leasing arm of BMW, acquires ING Car Lease, part of the Dutch ING Groep NV, for €637m (£570m) to strengthen its position in the European fleet management market. The acquisition is cleared by the European competition authorities in the autumn and gives Alphabet a combined risk fleet in the UK of over 100,000 cars. July 2011 Talks between Royal Bank of Scotland (RBS) and GE Capital over the sale of RBS’s Lombard Vehicle Management subsidiary stall. The division had been put up for sale earlier in the summer as part of a programme by RBS to sell non-core assets. Following the news, RBS says it’s still considering options and reassures the industry that it’s not looking to wind down Lombard. December 2011 American-based Automotive Resources International (ARI) announces that it is to acquire Fleet Support Group, the largest UK-based fleet management company. ARI says that the move significantly expands its fleet management offerings in the UK and establishes the foundation for further global expansion. It adds that FSG will be able to ‘leverage its prestigious customer portfolio on to the international stage’. December 2011 Arval announces that has sold its AllStar fuel card business to US fleet transaction firm FleetCor Technologies in a £194m cash deal. In a statement, Arval is adamant that the sale of the business is a strategic one as the fuel card business can’t be leveraged outside the UK and says that the sell-off is not a reflection of the performance of the AllStar business or the need for parent bank BNP Paribas to recapitalise.

peugeot.co.uk/fleethybrid4

Peugeot introduces a world-first, the

3008 Diesel HYbrid4 As the world’s first full diesel hybrid vehicle, the Peugeot 3008 Diesel HYbrid4 provides both fleets and fleet drivers with a new generation of ecofriendly, sporty and safe motoring. The new Peugeot 3008 Diesel HYbrid4 marks a new chapter in motoring history, as the brand brings its advanced diesel technology together with a sophisticated electric motor to create the optimal combination for a hybrid engine. The result is a truly pioneering crossover that delivers space, refinement, practicality, specification and low running costs. The recent announcement from HMRC that diesel hybrids will be exempt from the 3% surcharge on conventional diesels further heightens the cost benefits of running the Peugeot 3008 Diesel HYbrid4. Phil Robson, Director – Fleet and Used Vehicle Operation at Peugeot, explains: “The clarification by HMRC that customers of our HYbrid4 cars will not incur the 3% diesel surcharge and benefit from the 10% threshold for personal BIK taxation is excellent news. It is the final piece in the HYbrid4 jigsaw and means that both individuals and businesses will benefit from the best possible environmental and fiscal position.” “As a company car owner Peugeot’s HYbrid4 means low fuel costs, low emissions, low BIK and for the company lower Employer National Insurance contributions, alongside an allowance for the company to offset 100% of the list price, in the first year, against its taxable profits. Let’s not forget, in addition the 3008 Diesel HYbrid4 delivers 74mpg, 200bhp, four-wheel drive and electric mode, a truly unique and innovative vehicle in the market.” advertisement feature

Peugeot’s HYbrid4 means low fuel costs, low emissions, low driver BIK and lower Employer NICs for the company

Advanced environmental benefits without compromise Peugeot’s worldfirst 3008 Diesel HYbrid4 provides fleets with all the benefits of alternativelyfuelled vehicles, with all the gains of diesel technology too. Phil Robson, Director – Fleet and Used Vehicle Operation at Peugeot, looks at the advanced new technology and the numerous fleet advantages that it brings. “For many companies, the environment and cost concerns are the two over-riding issues that are impacting their fleet operations. “With more firms recognising the need to go greener, especially as

part of a robust Corporate Social Responsibility programme, there is an increased focus on switching fleet cars to more eco-friendly vehicles. “And of course such vehicles have the twin benefit of delivering muchreduced costs thanks to the lower tax and running costs in many cases. “This can lead to a dilemma as to whether to opt for more ecofriendly conventional engines, such as Peugeot’s e-HDi diesel range, which uses latest-generation Stop & Start technology to enhance

driveability and cut CO2 emissions, or to opt for an all-electric vehicle such as the Peugeot iOn – which is capable of covering more than 90 miles on a full charge whilst delivering zero tailpipe emissions. “However, there is another, stateof-the-art engine option that provides fleets with the benefits of alternatively-fuelled vehicles but with all the advantages of diesel technology too – the new Peugeot 3008 Diesel HYbrid4.”

TABLE 1 Comparison against petrol hybrids

This table shows that the Peugeot 3008 Diesel HYbrid4 stacks up well for costs compared to petrol hybrids whilst offering much better performance.

Model OTR price P11D price Power (bhp) 0-62mph CO2 BiK bracket Combined MPG Annual driver BiK rate (20%) Annual VED rates Whole-life costs (PPM)

Peugeot 3008 Diesel HYbrid4 £26,995 £26,940 200 9.1 99 10% 74.4

Honda CR-Z GT Auto £20,820 £20,765 124 10.1 117 10% 56.5

Toyota Prius T-Spirit Auto £24,285 £24,230 136 10.4 92 10% 70.6

Lexus CT 200h SE-L CVT Auto £25,650 £25,595 136 10.3 94 10% 68.9

£538.80 £0 36

£415.30 £20 34

£513.71 £0 39

£511.90 £0 38

SOURCE: Whole-life cost data – CAP

Peugeot HYbrid4 the optimal combination By marrying up a fuel-efficient 2.0-litre 163bhp HDi diesel engine with a 37bhp electric motor, the 3008 Diesel HYbrid4 offers the optimal hybrid combination. Compared to other hybrid vehicles that use less-efficient petrol engines, the Peugeot 3008 Diesel HYbrid4’s engine provides far superior fuel consumption and CO2 figures – on the Combined Drive Cycle fuel consumption is up to 74.4mpg while CO2 emissions are from 99g/km – figures on a par or better than most superminis – yet the 3008 Diesel HYbrid4 offers full crossover practicality for fleet drivers not looking to compromise. With its combined power output of 200bhp and maximum torque of 500Nm, and the option of “ZEV” – 100% Electric Mode, “Four-wheel drive”, “Sport” or “Auto” modes, the 3008 Diesel HYbrid4 offers a level of performance that will delight even the most demanding customers in terms of road holding, responsiveness, driveability and peace of mind. Diesel HYbrid4 technology will be introduced in the Peugeot 508 RXH and 508 Saloon from mid-2012 with CO2 from just 95g/km, maximising Peugeot’s fuel-efficient fleet proposition.

Peugeot 3008 Diesel HYbrid4 THE KEY POINTS • 74.4 mpg (combined) • From 99g/km CO2 means 10% BiK for company car drivers • 100% WDA against Corporation Tax in the first year • London Congestion Charge exempt (99g model) • £0 road tax

TABLE 2 Comparison against standard diesels

Peugeot 3008 Diesel HYbrid4 is much more cost-effective than standard diesel models from competitors whilst still offering exceptional performance.

Model OTR price P11D price Power (bhp) 0-62mph CO2 BiK bracket Combined MPG Annual driver BiK rate (20%) Annual VED rates Whole-life costs (PPM)

Peugeot 3008 Diesel HYbrid4 £26,995 £26,940 200 9.1 99 10% 74.4

Nissan Qashqai+2 1.6 dCi Tekna 4WD £26,745 £26,560 130 10.9 149 22% 49.6

Renault Grand Scenic1.5 dCi £20,900 £20,845 110 13.3 128 18% 57.6

Hyundai ix35 2.0 CRDi £22,945 £22,725 134 11.3 154 23% 47.9

£538.80 £0 36

£1,168.64 £130 42

£750.42 £95 45

£1,045.35 £115 44

SOURCE: Whole-life cost data – CAP

Find out more at peugeot.co.uk/fleethybrid4 or call the Peugeot Fleet centre on 024 7688 4644.

Martin Ward, Manufacturer Relationship Manager, CAP The first diesel/electric hybrid to the market, but offers so much more: 4WD, practical, flexible, comfortable, low CO2, good MPG, choice of driving modes and easy to drive. Quality and fit and finish throughout are up to a high standard. A true SUV/crossover.

Andy Cutler, UK Car Editor – Forecast Values, Glass’s The figures are very impressive, especially as a company car: the company car driver will benefit from a significant drop in BIK costs, will have zero RFL costs and if required, zero Congestion Charge costs. If you compare the vehicle to a regular 3008 HDi over three years/60,000 miles you make significant savings in fuel costs, BiK costs, RFL costs and of course the RV uplift is good as well.

Mark Jowsey, Commercial Director, KeeResources’ KWIKCarCost 3008’s crossover bodystyle is very versatile and is a great choice for the first use of Peugeot’s new and equally versatile diesel hybrid with fourmode drivetrain. Most impressive is the Auto mode, which will quickly engage the electric motor driven rear wheels as required.

Alan Senior, Director, Vehicle Information Publishing Peugeot is in a good position to deliver just what the fleet industry needs now with this vehicle. The ability to run on electric-only at limited speed for two to three miles is a bonus, and with winter on its way, four-wheel drive is another bonus.

THE NEW ORDER: SALARY SACRIFICE AND EVs New innovations, new opportunities. Although funding and managing the traditional company car will remain by far the biggest sector for the leasing industry, two new developments of the past few years are expected to be given more time in 2012. Both salary sacrifice schemes and electric vehicles have incurred comment and opinion that outweighs their relative size in the current market, but is that set to change? Roddy Graham believes that with salaries frozen or increases kept to a bare minimum, salary sacrifice could become more popular for hard-pressed employees wishing to see their money go further. He says: ‘They can enjoy the benefits and status of a company car at a lower cost than anticipated, with savings on income tax and NI contributions outweighing BiK contributions. They’ll also be behind the wheel of a more fuel-efficient, fully serviced and maintained new car for the next two or three years, backed by comprehensive insurance provided by their employer. It’s tax efficient, so expect more employees to show interest.’ At Zenith, Andrew Cope reckons salary sacrifice is attracting a new breed of company car drivers. Typical cars chosen are the lower-emission ones, which attract the best savings. The opportunity to have fixed costs, protected from market fluctuations, for example in insurance and maintenance, and the easy budgeting is highly appealing; whilst helping companies to provide their employees with safer, lower emitting cars. For Richard Schooling, the leasing industry is entering a very exciting period. He says: ‘The next generation of mobility solutions is emerging and leading leasing companies are evolving into mobility

With more and more new electric vehicles coming on stream from vehicle manufacturers, expect EVs to start making their presence quietly felt

experts. Companies who are working with progressive leasing companies such as Alphabet will be early adopters of innovative new ways to move employees around the country.’ Roddy Graham retains a certain amount of scepticism over whether electric vehicles will make an impact this year: ‘With more and more new electric vehicles coming on stream from vehicle manufacturers, expect EVs to start making their presence quietly felt, albeit unannounced to pedestrians and cyclists, in towns and cities. Also expect more breakdowns away from home as they run out of juice. Currently only driven by true believers, I expect more people to test them, either through city car clubs or vehicle rental companies. ‘As always, the greatest drawback is the lack of a proper charging point network infrastructure. With the Department for Transport finally announcing a central database for charging points, expect a more concerted and consolidated effort to not leave drivers stranded with no charge.’ WHAT OF FLEETS? ALPHABET FLEET MANAGEMENT REPORT Alphabet’s Fleet Management Report has revealed a cautious note of optimism, among fleet managers. Private sector fleets were more optimistic that in 2012 operating budgets will increase again, although the mood was found to be considerably bleaker among public sector organisations facing up to the Government’s proposed spending cuts. 27% of respondents said they expected their fleet operating budget to go up in the coming year, although a smaller number (21%) anticipated that the size of their fleet would also increase. In the public sector, however, a significant 56% expect to see their budgets cut, but fewer, 44%, expect that the size of their fleet will fall. Alphabet’s Richard Schooling comments: ‘The increasing burden of legal, financial and technical specialisation and complexity surrounding the management of vehicles will weigh heavy on in-house managers, who will have to do more for less in the coming year. The focus for fleet managers now must be on delivering significant savings in both time and costs.’

January 2012

FEATURE Electromobility

Know your BEV from your HEV from your REV? With an ever-increasing choice of electric and hybrid drivetrains available, Alex Grant explains the different technologies.

Battery Electric Vehicles (BEVs)

☺

Battery electric, or pure electric, vehicles are only ever powered by electricity, meaning zero CO2 emissions at the point of use. The drivetrain usually consists of one or more electric motors, with a large battery pack charged from a conventional plug socket or public charging point. PROS: BEVs have large benefits for cutting inner-city smog, but are also suited to rural commuting where it can be more convenient to recharge at home than to go to the nearest fuel station. Modern electric powertrains allow performance to rival conventional cars, while recharging costs £2 or less, tax costs are low and the low number of moving parts keeps servicing prices down too. CONS: Manufacturing long-range batteries is expensive, which means production vehicles typically have a range of up to 100 miles and cost more to buy than a conventional rival. Because the technology is new, uncertainty about longevity is keeping residual values low. Charging a fully depleted battery takes up to eight hours, which makes them impractical for long journeys, and not all drivers have a suitable charging space outside their home or office. EXAMPLES: NISSAN LEAF, RENAULT FLUENCE Z.E.

Hybrid Electric Vehicles (HEVs)

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Hybrids are the most common electric vehicles. These switch automatically between an efficient internal combustion engine and an electric motor to maximise fuel efficiency. Most allow a couple of miles of pure electric motoring, while some newer models can combine the two power sources under heavy acceleration. Others have an electric motor driving the rear wheels, which allows four-wheel drive traction without the usual decrease in fuel economy. PROS: Hybrids have been on sale for over a decade, so this is now a proven, mainstream technology. There’s also a growing selection of models on sale, including high-performance variants, which means lots of choice for drivers no matter what their taste or needs are. It’s also easy to get used to, with conventional refuelling times and a driving experience familiar to anyone used to an automatic gearbox. CONS: The technology is still expensive, so many hybrids are priced higher than an efficient diesel. Premium-brand models tend to be targeted at the US market, where the focus is on improving air quality rather than reducing CO2 emissions, and these have large petrol engines. In Europe, where tax is largely CO2-based, the savings don’t always add up, even for hybrids with small engines. EXAMPLES: TOYOTA PRIUS, PEUGEOT 3008 HYBRID4, BMW ACTIVEHYBRID 5

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Plug-in Hybrid Electric Vehicles (PHEVs)

☺

Plug-in hybrids have an internal combustion engine and electric motor, but with the option to charge the battery from an electrical socket. This allows them to cover short-range commuting on electricity alone, switching to a conventional hybrid setup when the battery range is exhausted. Mainstream models are due to go on sale in the UK in 2012. PROS: Plug-in hybrids are an extension of familiar technology, simply adding longer-range electric mobility and lower tax costs to their abilities. These vehicles can cater for most short journeys without any point-of-use emissions, making them useful for reducing inner-city smog, yet have conventional refuelling times for long journeys. CONS: Despite high claims of staggeringly fuel economy, the efficiency of plug-in hybrids varies dramatically based on usage. Drivers mostly covering short distances will hardly ever use any fuel, while those who frequently use the car for long journeys will struggle to come close to the economy figures touted by manufacturers. EXAMPLES: VOLVO V60 PLUG-IN HYBRID, TOYOTA PRIUS PLUG-IN HYBRID

Extended-Range Electric Vehicles (E-REVs)

☺

Although extended-range electric vehicles have both electric and internal combustion power sources, they function differently to a plugin hybrid. For journeys up to 50 miles, the car travels on electricity alone, recharged using a charging point or electrical socket. Once the electric range is exhausted, the engine is used to drive a generator, maintaining battery charge and providing an indirect power boost at high speeds. Unlike a hybrid, this never directly turns the car’s wheels. PROS: E-REVs provide a useful electric range, allowing urban commuters to cover short distances without using any fuel but without needing a second car for long journeys. This technology also allows these vehicles to return low fuel consumption and CO2 emissions figures, which give tax advantages for business users. CONS: Although E-REVs can cover high mileages, they offer the biggest cost savings when used for short journeys where the range extender is inactive. Also, manufacturers’ fuel consumption claims are open to question until more real-world testing has been carried out. EXAMPLES: CHEVROLET VOLT, VAUXHALL/OPEL AMPERA

Fuel Cell Electric Vehicles (FCEVs)

☺

Fuel cell vehicles use a reaction of hydrogen and oxygen to produce electricity, which in turn powers an electric drivetrain. Refuelling takes around three minutes and the only tailpipe emission is water vapour. Although there are manufacturer trials going on across the world, no fuel cell vehicles are available for sale, but several are expected to be launched within the next five years. PROS: Fuel cell vehicles offer the convenience of conventional powertrains, such as long-range cruising and short refuelling times, while emitting no harmful gases in use. CONS: The refuelling infrastructure for hydrogen fuel cell vehicles is almost non-existent in the UK, with only one station available to the public. For the technology to take off, it will need substantial investment in a nationwide network of hydrogen refuelling stations. EXAMPLES: HONDA FCX CLARITY, OPEL HYDROGEN4

January 2012

FEATURE Vehicle Graphics

Sticking point Commercial operators have long used vehicle liveries as a mobile form of advertising. Are car fleets missing a trick by not considering stickers or wrapping? Natalie Wallis find out.

For many commercial fleets, the idea of running their vehicles without using a livery would be simply laughable. Liveries can provide a valuable way of acquainting people with your brand and, in particular, promoting it or your services. Fleets such as Royal Mail and British Gas have used liveries in this way for many years but more recent examples include the supermarket delivery trucks – a great way of letting people know that home delivery is available for their area. It’s a fairly simple business practice that has been going on since carriages were horse drawn. But what are the more complex financial dynamics behind the practice? Just how much good (or bad) is it doing for a business in cash terms? Research from global products and logitistics giant 3M shows that vehicle advertising provides a cost-effective method to reach a large audience with minimal effort. The figures claim that a commercial vehicle operating in a busy area is seen by more than 3,000 people per hour, every hour of every working day, giving a possible 8-16 million advertising opportunities per year. And this compares favourably with other formats too. 3M found the cost per ten thousand impressions (CPM) for vehicle advertising to be £0.40, and in some densely populated areas even less. By comparison, newspaper ads average at £4.90; television £48.00; and radio £121.00 CPM. According to vehicle signage company Creative FX, vehicle liveries provide pure advertising without any distractions. Director Sean Davis says: ‘Unlike more traditional mediums, like TV, radio or newspapers, it doesn’t require consumer effort – you don’t have to tune in, turn it on, dial up or turn the page to see it – it’s just there for free, it’s unavoidable.’ Davis adds that compared to traditional outdoor media, vehicle advertising has the

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advantage of having more than a singlepoint source and can be seen over a wider area, thanks to the mobility of the vehicle. ‘Vehicle advertising also offers the flexibility to target particular areas or crosssections of society with selected campaigns as a vehicle can move easily from one place to another,’ he comments. In fact, with the move to the digital era, vehicle advertising can prove an immediately accessible advertising format, with recent technological advances in mobile devices, such as phones, tablets and PDAs, having made it increasingly easy and convenient for pedestrians and commuters to note down company details and even visit the company’s website on their smart phones. While vehicle advertising traditionally took the form of hand-painted graphics, the development of vehicle wrapping through the use of a self-adhesive vinyl film created with high-resolution digital printing has transformed the market in recent years. As well as offering the usual livery benefits of promoting the business, other advantages of vehicle wrapping are said to include cost-effectiveness. According to vehicle signage company Creative FX, a vinyl wrap will cost between £250 and £2,000, depending on the size, pattern and material used and can last up to five years. It also protects the vehicle against damage from stone chips and minor abrasions, and, compared to hand-painted graphics, is easy to remove, and simple to update if the company changes its branding or has a new advertising message or product to promote. So far vinyl wrapping has seen most of its take-up from van fleets. In fact probably the most well-known examples are the Sky installation vans, which feature full photographic wraps that have notably in the past featured images from The Simpsons and National Geographic.

However, Sean Davis of Creative FX says that a growing number of car ﬂeets are also turning to vinyl wrapping. He comments: ‘We’ve wrapped a lot of car fleets over the past few years, and huge numbers of them. For one client, we’ve wrapped more than 1,000 cars in the last year.’ Davis says that the ﬁrm has done a lot of work with manufacturers and often applies

graphics to their car ﬂeets: ‘We recently applied Europa League graphics to 65 SEAT Exeos and we wrapped 75 Amaroks for the launch of Volkswagen’s new pick-up truck. We’ve also wrapped vehicle ﬂeets for the likes of the David Beckham Academy, Silverstone racetrack, and we liveried 163 Nissan Micras in a striking Union Jack design to promote the Government vehicle scrappage scheme back in 2009.’

Vinyl wrapping has also been used to good effect by a number of police forces nationwide, as well as many high street brands ranging from retailers to estate agents. Davis adds: ‘I actually think car liveries offer some advantages to van liveries, as they can be quite subtle, offering an upmarket image to a campaign.’ In Europe, and especially Germany, it’s common practice for firms to add subtle

The cost per ten thousand impressions for vehicle advertising is £0.40, compared to newspaper ads at £4.90, television £48.00 and radio at £121.00.

January 2012

FEATURE Vehicle Graphics

Sticking point logos and corporate branding to company cars, and especially job-need cars, ensuring their name is seen out and about as much as possible. Of course though, this approach is predicated on the good behaviour of their drivers, because a bad driver racing about causing chaos with your company name on the side is hardly good PR. However, Tim Andrews, managing director of signs and graphics specialist Hollywood Monster, believes that more fleets should invest in car liveries. Andrews says: ‘I think, and the evidence from our customers would support this, that the effects of well-designed car livery are massively positive. It is an extremely cost-effective way of advertising your business and raising your brand profile, with an average life of around three to five years. ‘For many companies it acts as a moving billboard that captures the imagination and draws thousands of views throughout its lifetime in a wide variety of demographic and geographic locations. It’s clear that there are very few forms of advertising that would offer companies and fleets such longevity and geographical spread at such a low cost.’

TOO GOOD TO BE TRUE? So are there any caveats to the use of car liveries? Certainly with some graphics there’s the issue of removing them come remarketing time. This is essential to ensure that resale values are optimised and needs to be carried out by a professional remarketing firm to ensure it’s completed properly – we’ve probably all seen an expolice or Royal Mail van with remaining ghosting from the livery. And caution should be applied even with vinyl wraps, according to BCA Auctions. Although the firm says that this format can provide fleets with an opportunity to brand vehicles as extravagantly as required during their working life with little consequence when it comes to remarketing the vehicles post de-fleet, the firm’s communications director Tony Gannon has one piece of advice. He comments: ‘Corporate colour schemes are often an anathema to used vehicle buyers, but wrapping gives the fleet operator the best of both worlds – an effective billboard while in service, with an attractive “retail” finish underneath that will be very saleable at remarketing time.

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THE ART OF WRAPPING Advances in digital design and printing are creating ever-more striking liveries and graphics

The wrapping has an additional benefit of protecting the bodywork from stone chips and light wear and tear. ‘However, it is critical that the wrapping is removed professionally and the underlying paintwork is prepared to a high standard before sale. Ideally this should be carried out by the remarketing partner at the point of sale to ensure a good quality of presentation,’ he states. And what about the issue of security for fleets using liveries? Are such vehicles likely to be targeted any more for crime due to the fact that they are clearly company assets and may contain valuables? In fact, both Hollywood Monster and Creative FX say that vehicles featuring branding are likely to be more secure than those without. Hollywood Monster’s Tim Andrews comments: ‘I firmly believe vehicles are less likely to be stolen if they are wrapped with graphics – they are far too easy to identify.’ Sean Davis adds: ‘Over the years Creative FX has wrapped thousands upon thousands of vehicles and I can honestly say I have never heard of one of them being targeted for crime or drawing the wrong sort of attention. In fact, you could argue a livery is a good deterrent from stealing a car, because it makes the car more distinct and easier to trace.’ So, with benefits to vehicle security and damage, not to mention the clear advantages for company promotion, vehicle advertising could well see increased takeup in the future from fleets looking to enhance their marketing mix with a lowcost, high-impact form of advertising that’s just a bit different from the norm. And it’s likely that vinyl wrapping will play a key part in that market as the technology progresses. Summing up the future for the industry, Sean Davis says: ‘We expect vehicle wrapping to continue increasing in popularity. As more and more vinyl manufacturers enter the market, the options available will increase massively and the prices will drop. Installation time will also decrease significantly, as the material used will become easier to install. Wrapping technology has advanced so much over the past five years, it’s likely these advancements will occur twice as quickly over the next five years.’

FLEET FINANCE

Strategic decision-making for an uncertain climate Mel Dawson With the economic outlook remaining uncertain for 2012, Mel Dawson, sales director of ALD Automotive, predicts that rising fleet bills – including Benefit in Kind–will ensure that cost control remains key for the coming year.

“ Some drivers could see their BiK bills rise sharply from 6 April 2012”

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

advertisement feature

It’s that time of year again when the fleet sector looks ahead and ruminates over what 2012 will have in store for the industry. Certainly there are a lot of unknowns out there – will electric vehicles see the increased interest that was expected for 2011? Will the financial uncertainly in the eurozone be resolved? Nothing is certain at this stage. What is certain though is that continued economic turmoil across the globe and the ongoing threat of a return to recession in the UK will mean that the next 12 months will prove to be at least as challenging as recent years have been. And ongoing rises in fleet bills will ensure that cost control becomes ever more essential, with firms increasingly needing to derive maximum benefits from their fleet assets and ensure that the bills are kept to a minimum. It doesn’t need soothsayer skills to predict that these increasing fleet costs will include Benefit in Kind bills as April sees the Government tighten the CO2 limits for the BiK bandings. In particular the qualifying CO2 emissions for the minimum 10% BiK bracket (13% for diesels due to the 3% surcharge) have been drastically reduced from 120g/km and under to 99g/km and under. The move means that such drivers could see their BiK bills sharply rise from 10% for petrols and 13% for diesels to as high as 15% for petrols and 18% for diesels with 120g/km from 6 April 2012. Meanwhile the ratings for the other CO2 bandings will go up by 1 percentage point. The rates will also rise again for the 2013/14 tax year, with the ceiling point for the minimum BiK brackets dropping again to 94g/km and under, whilst the other CO2 bandings see a further 1 percentage point increase. And that’s as much as the Government has announced for now, other than that it will abolish the BiK exemption for ultra low-emitting vehicles with 75g/km and less of CO2 from 201516 – a move that will not affect many fleets at present due to the restricted choice and practicalities for such vehicles. So what about the implications for fleets? With firms having to pay Class 1A NICs on employees’ BiK payments, it’s important to ensure that drivers’ tax bills are kept as low as possible. Of course, with the Government keeping the

fleet industry in the dark about its strategy for BiK for 2014/15 and beyond, it’s impossible to formulate a fleet choice list of practical vehicles that will continue to fall in the minimum BiK banding over three or four years of operation. But adopting Total Cost of Ownership as the platform to select the optimum vehicles for the fleet will ensure that fleets are using a holistic approach that takes into account all known vital taxation and environmental parameters. It may also well prove extremely beneficial to seek expert advice on how to adopt such a strategy. This is where ALD Automotive’s AutoSolutions team can help. This specialist division comprises experienced analysts, experts in the fields of vehicle funding and fleet choice lists, and the deployment of proven cost-effective and practical car policies over many years. Using market-leading fleet analysis technology, AutoSolutions can assess whole-life costs from all manufacturers, models and derivatives as part of the comprehensive software module. This provides a conclusive picture of company and employee tax implications during vehicle selection, helping fleets to ensure that they are running vehicles with low BiK costs under the current regime. It also ensures that fleets are running cleaner vehicles that present clear benefits in terms of other costs such as fuel consumption, VED and company car writingdown allowances. Of course, running cost-effective company cars is just one way that firms can look to take control of their fleet costs in an uncertain financial climate and any overhaul of company car selection should form part of a holistic review of the current set-up, including funding methods. This is another service that’s offered by the AutoSolutions team, which, using its FleetChoice module, can identify whether a firm would benefit from outsourcing and put together a balanced funding solution that meets individual needs. Other areas of focus should also include any payment of cash allowances and business mileage reimbursement rates. ALD’s ProFleet2 telemetry technology can assist with this last point. For more details of how the AutoSolutions team can help optimise your fleet policy, please email autosolutions@aldautomotive.com or phone 0870 00 111 81.

January 2012

FEATURE To buy or to lease? // Part 14

BREAKING UP IS HARD TO DO

The maths involved in early termination of contract hire agreements. By Professor Colin Tourick.

n the last few columns we have been looking at the maths you need to consider when deciding whether to lease or buy a vehicle. This month we will look and the maths involved in early terminating your contract hire agreement and next month we will look at the somewhat more complex maths involved in terminat-

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ing hire purchase and similar agreements. There are a number of reasons you may have to terminate your contract hire agreement before the contracted end date; for example if the vehicle has been written-off in an accident or stolen, or if the driver has left your employment. The supplier entered into the lease

expecting that you would keep the vehicle until the contractual end date. They calculated their rentals and arranged their own funding on this basis and expected to get capital allowances for the full term of the lease. On early termination they have to clear their books, recover any extra costs to be

borne in keeping their own funding in place until the end of the lease, recover any adverse effects of disrupting their capital allowance flows and (perhaps) recover some element of the profit they had hoped to make had the contract run to maturity. Many contract hire agreements are silent on what happens in the event of an early termination. This can lead to misunderstandings and disputes so it is far better to agree this in writing with the contract hire company from the outset. There are several ways of calculating a contract hire early termination settlement figure. They include: • If you terminate in the first 12 months we will charge you 60% of all future rentals. • If you terminate in the second 12 months we will charge you 50% of all future rentals. • If you terminate thereafter we will charge you 40% of all future rentals. Another lessor might simply charge 50% of all future rentals. In fact there is no consistent way of setting this figure in the market and each supplier has their own way of calculating this charge. When entering into the lease the supplier has no idea whether you might ask to early terminate the lease, or how much the vehicle will then be worth (or how much the insurance settlement will be). Hence a ”percentage of outstanding rentals” settlement policy is risky for the supplier and can cause them to make a loss. Nonetheless, many contract hire companies offer this arrangement as it gives you certainty and removes the need for discussion, debate and possible disagreement at a later date.

ACTUAL COST METHOD Under this method, the lessor takes the balance outstanding in its books, including any arrears of rental, adds any costs or fees it incurred to recover or sell the vehicle, deducts the vehicle sale proceeds (or insurance payout) and charges you the difference. Normally, for the sake of simplicity, capital allowance or other tax matters are ignored, although in fact these do have an impact on the profit or loss the lessor will make on the early termination. This is a particularly simple way to calculate an early termination settle-

ment and is often a feature of ”openbook” contract hire arrangements. The actual cost method is often the cheapest method of early termination available to you. For this reason it is usually only offered to large, creditworthy businesses with large fleets, where there is strong competitive pressure and the contract hire company is keen to preserve the relationship.

SLIDING SCALE ACCORDING TO THE TIMING OF THE EARLY TERMINATION This is a refinement of the percentage of outstanding rentals method. At the start of the agreement the supplier will provide you with a chart showing the amount that will be payable, month-by-month, in the event of early termination. Here is an example in Table 1. This schedule for a 36-month lease assumes a £12,000 capital cost and a £4,000 residual value. The ”rental profile” is 3+33, which means that the equivalent of three months’ rental is paid on day one and this is followed by 33 further monthly rentals, commencing one month after the start of the agreement. Whatever early termination method is used, the amount you are charged will include any arrears, interest on arrears, costs, fees or expenses that the supplier incurs in recovering and selling the vehicle. While it may be your policy to take all vehicles on lease for, say, three years, there may well be occasions when you know in advance that you are likely to need a particular vehicle for a shorter period. For example, if you need it for an overseas visitor who is in the UK for a fixed period or for someone who plans to retire in 18 months. In these situations you will usually save money if you enter into the lease for the shorter period at the outset. If it’s likely you will need to extend the lease later, speak to your leasing company before entering into the lease to discuss whether and on what terms they will be prepared to extend it. While the rentals that you pay will be more expensive initially, entering a shorter lease from the outset will normally work out cheaper than signing a three-year lease and early terminating after 18 months.

Table 1 Termination during month number

Amount Payable

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

£ 4,900.69 4,752.19 4,603.68 4,455.17 4,306.67 4,158.16 4,009.66 3,861.15 3,712.65 3,564.14 3,415.63 3,267.13 2,494.90 2,376.09 2,257.29 2,138.48 2,019.68 1,900.87 1,782.07 1,663.27 1,544.46 1,425.66 1,306.85 1,188.05 801.93 712.83 623.72 534.62 445.52 356.41 267.31 178.21 89.10 Nil Nil Nil

*Note that nothing needs to be paid if you terminate during months 34, 35 or 36, as no rentals are due in those months.

This month we have looked at the early termination of contract hire agreements. Next month we’ll look at early terminating finance leases and hire purchase agreements, where the maths gets much more interesting.

January 2012

INTERVIEW Martin Wilson Hyundai

Seoul Searching Hyundai is looking to make massive inroads into the UK fleet market over the next few years, and it is Martin Wilson’s job to make it happen. Steve Moody finds out his plans. Hyundai encapsulates the new fleet landscape that has market share overall is around 3%, but in fleet it’s around 2%, emerged over the past few years. It might have been a little slow but we are looking to increase that. to recognise the opportunities in fleet, having majored on retail ‘Last year we did about 20,000 units in fleet, but this year our sales previously, but over the past 12 months executives have plan is to increase that by 40%, thanks in part to a full year of i40 ploughed resources into its fleet department as it looks to Tourer and the introduction of the saloon, and the new i30 too. develop its business offering. And the year after that, the same sort of growth again.’ Heading this new surge is national fleet sales manager Martin To do that, Wilson agrees that Hyundai needs to increase its Wilson, who was brought in nearly a year ago to oversee the presence in the fleet market. implementation of all the new positions, processes and practices. ‘Trying to get people to have an opinion of Hyundai and to Wilson previously worked at Hyundai Europe in Frankfurt, as understand our model range is vital,’ he says. ‘We’ve got a new fleet and remarketing manager for northern Europe, and in 10 team and new systems in place and we need to get businesses months has put in place a new sales team, a new business centre, and end users to be thinking about Hyundai when they make new terms and a new leasing partner. He’s been busy. their purchases.’ ‘It’s the Korean way. Once they decide they are going to do Historically, one of the weaknesses of Hyundai’s fleet something, they go at it full tilt, so this is a very exciting place to proposition was that despite extremely competitive front-end be at the moment,’ he says. ‘The management have recognised prices, values at the back end were correspondingly low, that they need to be in fleet in the UK so they’ve invested heavily cancelling out that initial advantage, and meaning whole-life to ensure we have everything in place to achieve this. costs were not particularly strong. ‘The senior management here and in Frankfurt see fleet as the But as the cars have become more stylish, better to drive and main growth area for the business, as we are already fairly the cabin quality has improved, so residual values have started mature in retail. Consequently, we are investing heavily in to creep upwards, closing that all-important gap and squeezing resource and training, running courses for people at our whole-life costs down. headquarters as well as in the dealer network. ‘We’ve had a number of fleets come to us and say they have ‘The business centre was set up six months ago, and there is done whole-life cost calculations and we come out of it very well, now a six-strong fleet sales team. We needed to develop the and that they’d like to talk about having our cars on their fleet,’ infrastructure, and if you do not have these things in place Wilson claims. then it is hard to compete with the established, traditional The new i30, out in the spring, will come with the nowfleet manufacturers.’ requisite sub-100g/km model, while the new Veloster coupe The firm has also brought in Hyundai Contract Hire, backed might well find some user-chooser friends. And the i40 has by ALD Automotive, which has been put in place so that the garnered rave reviews since its launch halfway through last year dealer network has an offering to their business customers, and sales have increased every month since, giving the firm a and naturally it offers some of the most competitive rates. genuine D-sector offering to compete with the best. Says Wilson: ‘We’ve had to retrain dealer staff, but the Wilson reckons that most of Hyundai’s fleet business will network has been very keen to do it, as they come through the route of his sales staff and see the opportunities in fleet with the range his dealers, but he is keen to forge better Success of the i40 Tourer we currently have. relationships with the leasing companies. looks set to be built upon in ‘The opportunities have never been At the moment, he doesn’t think that 2012 with the introduction greater, as we now have the products to be Hyundai is on many leasing company sales of i40 saloon, new i30 and able to go to businesses with, such as the peoples’ radar when they are talking to all-new Veloster coupe. i30 and i40, and also the dealer network clients, having never been a big player in that to cope. It’s 154-strong, and is made up of sector, but as with everything else, it’s a trend some of the major dealer groups, with he wants to reverse, and so his team have around 30 of them having fleet-specific been talking to the top 20 leasing companies. professionals.’ ‘We need to get out there and see as many Naturally, with all this investment and people as possible, leasing firms, business implementations come some pretty stiff and end users, because we have some great targets, Wilson says. new products, our five-year Triple Care ‘Scrappage really helped us because it Warranty and now a fully resourced fleet got people thinking about Hyundai, and department. It’s a case of getting people in driving our cars, for the first time, and so our cars, and seeing Hyundai as a genuine we have to continue that momentum. Our fleet proposition.’

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“We’ve had a number of fleets come to us and say they have done whole-life cost calculations and we come out of it very well...”

January 2012

MARKET OVERVIEW Risk Management

AA DriveTech

ALD Automotive

AA DriveTech is one of the UK’s DriveTech leading road risk management and driver education companies. The FleetSafe Division delivers driver risk management solutions throughout the UK. This includes in-vehicle and workshop training for car, van and LGV drivers (including Driver CPC) and "driving for work" programmes through a fully integrated online risk management solution which includes a licence validation service, driver risk exposure assessment tool and ten e-learning modules. Fleet managers can view driver status and outcomes with a single logon via our FleetRiskManager portal. More information can be seen at www.fleetriskmanager.com. On our website, AAdrivetech.com, we describe how our customers have benefitted from implementing occupational road risk strategies with us. Case studies include: • Center Parcs • Cordek • Feedwater • Thatcham -The Motor Insurance Repair Research Centre • Sainsbury’s Online • Shred-it

The ALD Automotive group is the second largest vehicle leasing operation in Europe and manages over 900,000 vehicles across 37 countries worldwide. Within the UK ALD is widely recognised as one of the industry’s leading service providers, with a proven portfolio of award winning products for major plc’s, small businesses and individual drivers alike. An integral part of ALD’s product range is its award winning DriveSafe programme oﬀering a straightforward, practical and cost eﬀective solution to help establish a lasting road risk reduction programme for all employees who drive on business. Utilising the expertise of specialist partners DriveSafe provides a comprehensive and co-ordinated solution, all managed under ‘one roof’ and uniquely delivered via ALD’s threesixty online portal.

Contact: Jennifer Edwards-Reid fleetsafe@AAdrivetech.com www.AAdrivetech.com/fleetsafe

IAM Drive & Survive Ltd

Cardinus Risk Management has built up an enviable reputation of being able to provide our services and solutions to ﬂeets of all shapes and sizes ranging from below 10 to the tens of thousands. Many blue chip, insurance and vehicle leasing companies use our wide array of fleet solutions which include consultancy, risk assessment, e-learning, practical training, licence, MOT and business insurance validation on a day to day basis. We can also offer non-fleet solutions to cater for your wider health & safety requirements. Our wider portfolio of solutions includes risk assessment, e-learning and practical solutions that cover fleet, property, environmental, DSE (display screen equipment), ergonomics, homeworking, fire, asbestos and risk engineering.

Tel: 01733 426 015 www.cardinusfleet.com

Jaama Ltd Jaama is a multi award winning, market leading fleet software and road safety services specialist. Licence 2 Check is a web based 24 hour electronic driver licence checking service with the DVLA and is available as an integrated module or as a stand alone product. Batch licence check requests will be sent automatically depending upon the risk profile of the driver. Licence 2 Check is a simple, effective tool to help you meet your Duty of Care responsibility and obligations under the Health and Safety Executive guidelines and offers powerful reporting functionality. Licence 2 Check will automatically notify you of any exceptions, irregularities or expired licences.

Contact: Collette Dooley sales@jaama.co.uk

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Tel: 0870 00 111 81 www.aldautomotive.co.uk

Tel: 01256 495732

Cardinus Risk Management

Contact: Christian McKay christian.mckay@cardinus.com

Contact: Helen Fisk helen.ﬁsk@aldautomotive.com

Tel: 0844 8484 333 www.licence2check.co.uk

IAM Drive & Survive is a leading occupational driver risk management provider and is the commercial subsidiary of the IAM (Institute of Advanced Motorists), the UK’s largest independent road safety charity whose sole aim is that of improving road safety for all. IAM Drive & Survive promotes occupational driver and rider improvement throughout the fleet and business community, utilising online, classroom and on-road modules. It helps employers achieve their duty of care to employees, reduce road incidents and minimise costs and has one of the most comprehensive ranges of occupational driver training, including driver risk management programmes and driver CPC compliance.

Contact: Neil Hawley neil.hawley@iamdriveandsurvive.co.uk www.iamdriveandsurvive.co.uk

Tel: 0870 120 2910

Mac GB Ltd Mac GB Ltd is one of the UK’s leading providers of Occupational Road Risk (ORR) solutions. Through years of experience, Mac knows that a sustained campaign of ORR solutions, linked with the company’s health and safety policy, will have an immediate impact on: •Reduction in accidents •Reduction in fuel consumption •Employees’ attitude and behaviour •Enhance the company’s Corporate Social Responsibility and Duty of Care programme By using ex-police class-one instructors delivering independently accredited courses, you are guaranteed a quality assured service, making Mac the obvious and ﬁrst choice provider for corporate bodies, whatever the situation.

Contact: Richard Wilyman richard.wilyman@mac-hq.co.uk

Tel: 01745 828180 www.reduceroadrisk.com

FLEETW RLD

Do you oﬀer on-line Risk Assesment?

Do you oﬀer psychometric driver proﬁling?

Do you oﬀer risk assessment as part of your programme?

Do you oﬀer an on-the-road driver training programme?

Do you oﬀer a classroom-based driver training programme?

Do your instructors provide a demonstration drive?

Do you oﬀer a vehicle inspection service?

Do your instructors carry out a driver eyesight test?

Do you oﬀer a licence checking facility?

Do you oﬀer nationwide trainer coverage?

Do you oﬀer training for all vehicle types?

Do you oﬀer Post Accident investigations training?

Do you oﬀer e-training as part of your programme?

Key to services

AA DriveTech

ALD Automotive

Cardinus

IAM Drive & Survive Ltd

Jaama Ltd

Mac GB Ltd

RAC

Peak Performance

Roadmarque®

Zenith

Service provided

Service unavailable

RAC Risk Management

Peak Performance Welcome to ‘Better Driving’… •‘‘A 30 per cent cut in accident rates’’ •‘‘Accident costs have also been almost halved’’ •‘‘Employee wellbeing and safety have been significantly improved’’ What Is ‘Better Driving’? ‘Better Driving’ is a multi-award winning range of risk management solutions that delivers positive, eﬀective and lasting results and is proven to signiﬁcantly reduce accident involvement and improve driver safety. ‘Better Driving’ for your business… Peak Performance has helped hundreds of businesses meet their Duty of Care, Corporate Social Responsibility and Environmental objectives, delivering significant costs savings through fewer accidents and lower costs. …‘Better Driving’ means ‘Better Business’

Contact: Kirstie Snape Tel: 01246 244200 Kirstie.snape@peakperformance.net www.peakperformance.net

A risk management strategy is not just a ‘nice to have’, it is an essential requirement for any business today. An effective strategy will help you to comply with road traffic and health & safety legislation, reduce accidents and keep fleet operating costs low. It will also help you to meet your Duty of Care, Environmental and Corporate Social Responsibility objectives. Our risk management solutions are as comprehensive as they are simple to use. These include audits, seminars, workshops, online risk assessment, e-learning, driver document checking, practical training (all vehicle types), driver permit, post accident interview, vehicle inspection and driver cpc. We can also manage your programme on your behalf. Our goal is to provide you with a fleet solution that adds value to your business. Contact us today to find out how our solutions can work for you.

Contact Name: Christian McKay cmckay@ﬂeetriskmanagement.net

Tel: 0870 606 2606 www.racﬂeetriskmanagement.co.uk

Roadmarque Roadmarque® is the industry’s most comprehensive road risk assessment system, developed by Imagitech - the UK leaders in driver assessment and driver education software. Roadmarque® is one of the most competitively priced, flexible, reliable and effective systems currently available. Roadmarque® profiles your drivers, completes a full DVLA licence check, fully risk assesses each driver, takes into account vehicle choice, estimates CO2 output, provides grey fleet management, engages the driver and reports back with a solution to ensure your company is protected – within budget. We are working with organisations of all sizes delivering simple, practical and effective solutions. As an independent provider, we are not going to sell you something you don’t need. Contact us now to find out more.

Contact: Dr Gerhard Manogg enquiries@roadmarque.com

Tel: 0845 053 0331 www.roadmarque.com

January 2012

S E LLI N G

Fleet values down in 2011 but strong start to the year Manheim has reported a strong start to 2012, following a fall of 4.8% in fleet used car values in 2011. According to the firm’s latest Market Analysis for Cars, fleet sector average values fell by 4.8% (£280) to £5,561 in 2011. During this period, average age increased by three months to 51 months and mileage increased by 3,519 to 62,200 miles. The data also shows average wholesale used car values fell by 0.6% (£41) to £6,528 during the year, with average age up by four months to 55 months and average mileage up by 1,831 to 55,436 miles. Manheim adds that its auction centres throughout the country have reported an unexpectedly strong start to 2012 with large numbers of buyers turning out both in the auction halls and online, and lively bidding and high prices reported by the auctioneers. The strong start follows the usual seasonal slow-down in the lead up to the Christmas and New Year holiday period and suggests that demand for used cars during the first few months of the year will be robust.

HOT... Range Rover Evoque The little Rangie is already proving hugely popular. Early used models are going for silly money.

Tip-top vehicles Three to four year-old vehicles with a decent spec, in a desirable colour and below average mileage will do well in 2012, predicts the VRA.

Manual gearboxes

Nissan Qashqai crowned CAP Used Car of the Year 2011 The Nissan Qashqai has taken CAP’s “Used Car of the Year” title for the second year running. A panel of judges comprising of used car market and vehicle valuation experts at CAP chose the Qashqai from a shortlist of six models and scored it highly on CAP’s criteria of excellence for affordability and practicality of ownership, trusted reputation, retail popularity and innovative impact on the motor industry. The shortlist was comprised of the Citroen DS3, Nissan Qashqai, Vauxhall Zafira, Fiat 500, Ford Fiesta and Renault Clio.

Used prices to hold up in 2012 Used prices are likely to remain healthy in 2012 due to a lack of stock and inflation, according to the latest report from Glass’s. In its Car Editorial for January, the ﬁrm said: ‘The average price of all cars at the end of December was forecast to be £4,750, some 3.5% higher than a year ago. We also know that, in recent years, used car prices have been increasing in line with the Consumer Price Index (CPI) and the increase of 3.5% last year only slightly falls short of the latest ﬁgure for CPI at 4%. ‘This all means that the price of used cars is moving upwards in line with the broader mix of goods and services that consumers buy.’ Glass’s said that the relative stability of prices is a result of low supply levels, and there is likely to be less stock around as the market enters the fifth consecutive year of sub 2.4/2.5 million registrations. It added: ‘Unless there is a significant fall in retail demand this year, prices are likely to remain firm, or increase slightly. And assuming that retail demand is not dissimilar, the competition for stock will remain strong, aided by a continuing shortage of part-exchanges from a flat new car market.’

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Driven by increased numbers of autos, price differentials between manual and auto variants have closed on all but the luxury end of the market.

NOT... Late-year, low-mileage vehicles Highly attractive new car incentives have been putting some pressure on values for these of late, says the VRA.

Incomplete service records Vehicles that have missed routine service and maintenance are on the rise but will cost sellers even more dearly.

Silver paintwork Silver has well and truly fallen down the pecking order to the third tier of used car colour RV performance, Glass's reckons.

FLEET UPDATE

This month Our Sportage goes back, to universal acclaim, while our petrol Mondeo is making a case for itself.

Audi A6 Avant 2.0 TDI SE manual

Ford Mondeo Zetec 1.6 EcoBoost

The riddle of the A6’s wonky Bluetooth system has been solved. After last month’s ineffectual trip to our local dealer, I was wondering whether it was just actually just my own voice that sounded like Metal Mickey after all. But Audi offered to set me up with winter tyres and the supermechanic from Audi HQ not only came armed with four new Michelins, but a reason for the Bluetooth issue. A number of faulty microphones have been fitted, and the network now knows about it, so if you have drivers moaning about the same problem, get them into a dealer near you and it can be changed pretty quickly and easily. Otherwise, the A6 continues to perform faultlessly, and one noticeable improvement over the last car is the ride quality. The previous one was always uncompromising over rough surfaces, but this car smoothes out the most jagged bits much more successfully. The SE model comes with Audi Drive Select as standard, which has four preselected modes – Comfort, Auto, Efficiency and Dynamic – and after much tinkering around with it, I’ve found it’s easiest just to whack it in Comfort and leave it at that. It’s a car suited to an easygoing approach, and in Dynamic, the steering weights up in a pretty crude manner, just making it feel as though you’ve got very flat tyres, rather than turning all sprightly. And to go with its easygoing nature, its consumption of fuel has proved laid-back too. With only a few thousand miles on the clock, you would expect further improvement, but mid40s mpg is easy to achieve – better than the admittedly more fun to drive BMW 520d Touring I ran last year.

Steve Moody

The issue that I was most interested to track with the Mondeo was, perhaps not surprisingly, fuel consumption. Somehow the formula of 1.5-tonnes of Mondeo propelled by a 158bhp petrol motor looked like good news for oil company shareholders. As we’ve said in earlier reports, fuel is working out at around 36mpg, indicated on the trip computer, as poorer, cooler weather has joined the dark days of winter. But the expected emptying of the Kendall coffers hasn’t happened, because petrol remains around 9p per litre cheaper than the oily stuff, meaning that replenishing a near-empty 70-litre tank is costing around £5 less than for a diesel, helping to offset the inferior fuel consumption. If we’re considering the running cost equation, we need to factor in BiK at 20%, compared with 17% for the equivalent 114bhp 1.6 TDCi diesel powered version or 21% for the 138bhp 2.0 TDCi diesel variant. A 20% taxpaying EcoBoost driver would face a monthly tax bill of £69, compared with £48 for the 1.6 TDCi user or £77 for the 138bhp 2.0 TDCi. It’s a similar pattern for fuel benefit too. If I were choosing between them for a company car, I would want to take a good hard look at some calculations before I made a cost-based decision. There’s another factor to dial into all this at the moment too. I’m told there is a world shortage of diesel fuel injectors at present, affecting supplies of every diesel model and stretching waiting lists. The cause is a combination of economic crisis and the Japanese Tsunami. If you’re looking at new cars at the moment, it’s worth noting that petrol models might be easier to source and that the running costs don’t necessarily run in the diesel versions’ favour.

John Kendall OTR PRICE £32,100 POWER 175bhp @ 4,200rpm

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

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

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

TOP SPEED 138mph COMBINED MPG 56.5mpg

TOP SPEED 130mph COMBINED MPG 44.1mpg

CO2 132g/km (19% BiK)

CO2 149g/km (20% BiK)

January 2012

FLEET UPDATE

Kia Sportage 2WD 1.7 CRDi 3 Sat Nav After six months of being shared among the Fleet World team, our Sportage long-termer has gone back to Kia. Launched in the middle of a range-wide leap forward in style, quality and driving experience, the compact crossover has proved just how far the brand has come. This month, the team gives its individual reflections on Kia’s popular newcomer:

Ross Durkin > Publisher: There have been rumblings from Kia about a growing presence in the fleet market for several years, but until recently it didn’t appear to have the backing of credible product. If the new Sportage is a sign of things to come from the Koreans then they will have to be taken very seriously indeed. First impression of the Sportage was really favourable and it just got better from there. It ticked all the boxes in terms of performance, handling, economy and comfort, but what really stood out was the quality of the fit and finish inside – certainly on a par with

Japanese and European rivals. Having seen some of the new models that Kia has in the pipeline I suspect that it will be appearing on more and more user-chooser choice lists and if Kia can get ”bums on seats” it will pick up orders aplenty.

choose whichever company car they wanted. Plenty of them were either Sportage drivers already, or had one on order. That knowledgeable corporate drivers would choose one speaks volumes for how far Kia has come recently.

Anne Dopson > Sales Director: Alex Grant > Motoring Editor: The Sportage is a seminal car for Kia, and a package so well executed that none of its European and Japanese rivals should underestimate it. Stylish, well built and good to drive, this compact crossover is a genuinely desirable product and Kia is deservedly enjoying sales success with it. So much so that it’s had to up staff numbers at its European plant to keep up with demand. But the real eye opener, for me, came on a recent trip to Korea with Kia’s global fleet customers. These were, in most cases, senior-level decisionmakers with experience of a crosssection of brands and the ability to

I had the pleasure of regularly using the Sportage during its stay with Fleet World, and found it a pleasure to live with. Effortlessly comfortable for long journeys, yet also light on fuel, it came packed with a plethora of useful standard equipment including an intuitive reversing camera that made squeezing it into tight spaces very easy, despite its size. Like the mechanically similar Hyundai ix35, this could have been an easily dismissed option not so long ago. But with styling, quality and running costs to rival the best of the rest, both cars have become very difficult to overlook, even in a segment as strong and as closely fought as this one.

OTR PRICE £23,065 POWER 114bhp @ 4,000rpm TORQUE 192lb.ft @ 1,250rpm 0-62mph 11.9 seconds TOP SPEED 107mph COMBINED MPG 52.3mpg CO2 143g/km (20% BiK)

fleetworldgroup.co.uk

Renault Grand Scenic dCi 110 EDC Auto A lot can change in a month. In the last issue, I was having a few pangs of longing for the Grand Scenic with the recently introduced 130bhp 1.6-litre dCi engine, which far betters our 110bhp 1.5 dCi on both performance and emissions (standing at 115g/km CO 2 emissions and 64.2mpg), helped by its use of Stop & Start technology. Then, just days after we’d gone to press, Renault announced details of the 2012 Scenic and Grand Scenic range, which includes a new 1.5 dCi 110 Stop & Start with record-low CO 2 emissions of 105g/km and a 12% improvement in fuel consumption to 68.9mpg plus improved torque too. The Stop & Start technology makes for a great addition to the entry-level diesel, meaning the 1.5 is no longer the poor cousin of the 1.6 and has a rational place in the engine line-up again as the most efficient model. Although our own long-termer sadly comes without any Stop & Start enhancements, it’s provided capacious and practical accommodation over the Christmas period, including the initial Christmas Eve trip to see family and many trips out and about that have seen its full MPV capabilities put to use. Access to the rearmost seats isn’t the greatest – you can tumble the individual second row forwards or fold them down and clamber over but they don’t fold completely flat. However, good legroom in the second row and the sliding mechanism means that it’s fairly easy to reach a compromise on legroom for all three rows. And although legroom when all seats are being used may always remain such a ”compromise”, having seven seats in a fairly compact package that also offers good luggage space in five-seater guise is an everyday benefit – and likely one of the reasons why Renault has just announced that the larger Espace and Grand Espace models are to be withdrawn in the UK. Over the last few weeks, we’ve achieved fuel consumption in the late 30s – not great but not too shabby for a seven-seater MPV cum fully laden packhorse, particularly one without Stop & Start.

Natalie Wallis

SEAT Leon 1.6 TDI S Ecomotive Copa

Comfortable, roomy and economical – three words which I’ve come to associate with the Leon Ecomotive after its five-month stay with us. That sounds rather like I’m damning it with faint praise, but that’s not the case. While user-choosers may be drawn to the more expensive and sportier FR models and their extra bells and whistles, for some companies all they want is a safe, reliable and cost-effective car. Witness SEAT’s recent fleet deal with ethical travel company Camps International, which has just taken delivery of 11 Leon E Ecomotive models – the company takes its environmental impact very seriously, and its staff will now benefit from low Benefit in Kind tax bills thanks to the Leon’s 99g/km CO2 emissions. This equates to a 13% diesel Benefit in Kind tax levy, which works out at £463 per annum for a base rate tax payer in 2012/13. Even in 2013/14, when it moves up a BiK banding, the Leon will still cost only £499 per annum. Factor in 100% first-year writing-down allowances and being zero rated for VED and the Leon makes excellent financial sense. What the staff will also get is a car which is very spacious inside for a model in the lower-medium sector – plenty of room for five adults inside, plus a large boot. And despite its low rolling resistance tyres which can sometimes impact on ride quality, the Leon is a comfortable car in which to rack up the miles. So it’s not particularly exciting and it won’t have imageconscious user-choosers clamouring for the keys, but for cost-conscious companies and drivers, the Leon Ecomotive ticks exactly the right boxes.

Julian Kirk OTR PRICE £22,300 POWER 108bhp @ 4,000rpm

OTR PRICE £17,620 POWER 104bhp @ 4,400rpm

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

TORQUE 184lb.ft @ 1,500rpm 0-62mph 11.5 seconds

TOP SPEED 112mph COMBINED MPG 60.1mpg

TOP SPEED 118mph COMBINED MPG 74.3mpg

CO2 124g/km (18% BiK)

CO2 99g/km (13% BiK)

January 2012

FLEETW RLD

SUPPLIER DIRECTORY

AUCTIONS & REMARKETING

ACCIDENT MANAGEMENT

RISK MANAGEMENT

DAILY RENTAL

FLEET MANAGEMENT SOFTWARE

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

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

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

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

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

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

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

Bynx Tel: 01789 471600 www.bynx.com

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

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

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

Roadmarque Tel: 0845 053 0331 www.roadmarque.com

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

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

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

Peak Performance Tel: 01246 244200 www.peakperformance.net

Arnold Clark Car and Van Rental Tel: 0845 702 3946

Drive Software Solutions Tel: 01438 317731

www.arnoldclarkrental.com

www.drivesoftwaresolutions.com

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

Max Driver Tel: 01392 444773 www.max-driver.co.uk

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

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

Full listings online at

Cardinus Risk Management Tel: 01733 426015 www.cardinusfleet.com

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

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

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

ELECTRIC VEHICLES & HYBRIDS

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

Full listings online at fleetworldgroup.co.uk

DRIVER LICENCE CHECKING

FAST-FITS & TYRES

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

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

CONTRACT HIRE, LEASING & FINANCE Leasedrive Tel: 01344 466 466 www.leasedrive.com

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

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

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

fleetworldgroup.co.uk

Arnold Clark Vehicle Management

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

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

EV FLEET WORLD Tel: 01727 739160 www.evfleetworld.co.uk Volkswagen Group Leasing Tel: 0870 333 2229 www.volkswagengroupleasing.co.uk

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

AA DriveTech Tel: 01256 495732

Full listings online at fleetworldgroup.co.uk

www.AAdrivetech.com/fleetsafe DriveTech

FUEL MANAGEMENT

TELEMATICS & TRACKING

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

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

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

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

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

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

fleetworldgroup.co.uk

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

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

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

Trakm8 Tel: 01747 858 444 www.trakm8.com

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

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

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

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

Full listings online at fleetworldgroup.co.uk

fleetworldgroup.co.uk

“An impressive little truck at a competitive price, in a class of its own”

VAN FLEETW RLD January 2012

January 2012

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

FRAIKIN BAGS SAINSBURY DEAL Fleet management and contract hire specialist Fraikin has won a contract from supermarket giant Sainsbury to manage and maintain 220 of its 3.5-tonne home delivery vehicles in the South East. Fraikin will not only provide fleet management for the vans, which operate from 23 stores, but also provide a guaranteed 90-minute response time in the case of repair and recovery. In order to achieve this Fraikin is introducing a new maintenance programme that will see each vehicle serviced every 12 weeks. All servicing will be carried out at the store by mobile service engineers. Drivers will be required to carry out full vehicle checks each day and the vans will carry a “first aid” kit to remedy minor faults such as blown bulbs, with driver familiarisation being handled by Fraikin.

RENAULT SHAKES UP MODELS AND DEALERS Renault is shaking up its UK presence, dropping a host of non-profKangoo Compact no longer available itable car models and changing its sales focus. The company will introduce four electric zero-emission vehicles in 2012, along with the low-cost Dacia line-up, that will be sold through Renault dealers. Light commercials are one of the success stories for Renault in the UK, so the only LCV model to suﬀer the axe is the Kangoo Compact. There will also no longer be a car version of Kangoo available. The entry-level “Freeway” models will be dropped in favour of “Debut” versions. Core model Master vans will no longer get the TomTom sat nav installed, though this will be included in an improved Sport specification or as an option. Renault intends to put big emphasis on conversions, and is hoping that up to 11% of van sales will be conversions by 2013. The firm has recently launched a 17-seat minibus and will be upgrading its Tipper offering in 2012. The company is introducing a “4+ Package”, consisting of a four-year/100,000mile warranty, four years of servicing, four years’ roadside assistance and, if required, a four-year finance deal. It also intends to increase from 23 Pro+ business dealers to 52 by the end of 2012.

VAUXHALL EXTENDS SWAPPAGE SCHEME

PANELTEX 48-HOUR DEMO Bodybuilder Paneltex has won a twovehicle order for refrigerated box bodies, following a 48-hour day and night product demonstration at the New Covent Garden Market in central London. Market companies were invited to view the firm’s refrigerated body range at night, with a ride and drive activity centred around its Zeroed electric vehicle product range organised during the day. ’On both evenings we had a really good turnout of visitors,’ said managing director Chris Berridge. ’We picked up a twovehicle order for refrigerated box bodies on Ford Transit 3.5-tonne chassis cabs.’

fleetworldgroup.co.uk

Vauxhall has extended its van swappage scheme to help operators of older vans within the London Low Emission Zone to trade up to a new model. Although the LEZ affects vehicles registered more than 10 years ago, Vauxhall’s London Retail Group is offering swappage savings to customers with vans registered more than seven years ago. The savings include up to £3,000 off a Corsavan, rising to a trade-in worth up to £7,500 on a Movano. There are savings available on Astravan, Combo and Vivaro, as well as chassis cabs and the Vivaro Combi. ‘Vauxhall was the first manufacturer to offer eco-models across its commercial vehicle range and these too are part of our attractive swappage scheme,’ said national commercial vehicle sales manager Richard Collier.

NEW YEAR LEZ AMNESTY FOR LCVS Transport for London has announced that it will not penalise operators who drive non-compliant vehicles in the Low Emission Zone (LEZ) in the New Year, as long as they can prove that they have booked to have a particulate filter installed prior to 3 January. The move reflects the number of operators still awaiting installation

of retrofit emissions technology. Any operator issued a 28-day warning letter that has booked a filter fitting should call the TfL Contact Centre. From 3 January 2012 larger vans and minibuses entering the LEZ will have to meet at least Euro3 emissions for particulate matter, or face a daily charge of £100.

A MONTH IN FLEET

DARTS LEGENDS THROWS WEIGHT BEHIND NEW NORTHGATE RENTINATOR PRODUCT

BTP TAKES CONTROL WITH NEW COMMAND UNITS

Northgate has joined forces with darts champion Raymond Van Barneveld to launch its “Rentinator” product, aimed at SMEs. The scheme will make available a fleet of over 6,000 vans to rent or try for up to three months at reduced rental rates with no commitment to buy, as well as over 1,000 used vans that will be ready to purchase. As part of the launch Raymond or, “Barney” as he is nicknamed, visited a Leamington Spa-based team of shop ﬁtters in a Rentinator-branded van that had been set up as a mobile darts unit with dartboard and scoreboard oche. Speaking at the launch, Northgate commercial director Gareth Jones said: ‘Barney is a fantastic ambassador for Rentinator. Our catchline is Van Problem, No Problem, and he certainly makes darts look like no problem at all! ‘It was a once-in-a-lifetime opportunity to play sport with someone that is the very best in the world at what they do, and it is great that we can give someone else the chance to meet him in person and play darts with him.’ Van Barneveld added: ‘The Rentinator darts van is very cool, the team of fitters were really impressed with it and we had a great afternoon playing darts and sharing stories.’

The British Transport Police (BTP) is taking delivery of two bespoke mobile Command and Control Units (CCU) in advance of the Olympic Games. The Silver Command units have been designed by Kinetic Special Vehicles in partnership with integrated mobile communications specialist Primetech (UK) Ltd) and are intended to be able to handle all civil contingencies, with easy deployment at large-scale public events. Based on an Iveco, the CCU needed integrated communications technology to provide a reliable flow of critical information. Primetech’s roof-mounted transportable satellite system was installed on the CCU and enables real-time voice, data and video information to be shared with Gold Command. The CCU also incorporates a seated internal meeting room and two bespoke workstations. Wall-mounted external and internal touch flat screen monitors with whiteboard functionality allow for simultaneous briefing sessions and enable Silver Command staff to view TV news and live video images transmitted into the vehicle from the external, mast-mounted InfraRed CCTV camera. All images can then be streamed via the satellite links to a secure server where they can be accessed by Gold Command and other authorised agents.

TRANSPORTER AND CRAFTER GET BLUEMOTION TREATMENT Volkswagen is to launch BlueMotion versions of its Transporter and Crafter models, offering low consumption and maintenance costs. The vehicles will be launched in Europe first and will make it over to the UK later this year in right-hand drive guise. The Transporter BlueMotion will be based on the normal roof model with 3,000mm wheelbase and a maximum permissible gross laden weight of 2,700kg. The BlueMotion version will feature the 114PS 2.0-TDI engine tweaked for fuel efficiency and offering start-stop technology and an adapted five-speed transmission. The model will also feature regenerative braking, low rolling resistance tyres plus a tyre pressure control display, as well as aerodynamic measures and cruise control. Thanks to such measures, the model has been rated within Europe for 44.8mpg and CO2 emissions of 166g/km – figures in the UK may change due to homologation and conversion to right-hand drive and will be announced at a later date. Two engine variants are available for the new Crafter BlueMotion with 109PS and 136PS respectively. Within mainland Europe, both engines offer fuel consumption of 40.3mpg and CO2 emissions of 184g/km – as with the Transporter, these figures may change for the UK. Based on the Crafter 30 van with normal roof and short wheelbase, the Crafter BlueMotion will also offer start-stop system, with energy management and recuperation, low rolling resistance tyres as well as cruise control and a faster rear axle, designed to reduce rpm.

fleetworldgroup.co.uk

VAN & TRUCK REGISTRATIONS UP 17.8% IN 2011 A rise in December van and truck registrations has completed a buoyant year for the market, according to new data from the Society of Motor Manufacturers and Traders (SMMT). The latest figures from the organisation show that van and truck registrations rose 17.8% in 2011 to 303,097 units, on the back of a 13.7% increase in December to 23,026 units. Truck registrations were up 24.6% for the full year to a total of 42,944 and by 45.3% in December to 4,611. Van registrations increased 16.7% to 260,153 in 2011 and were up 2.8% in December to 18,415. Commenting on the figures, Paul Everitt, SMMT chief executive, said: ‘The van and truck market has enjoyed a consistent growth throughout 2011. Renewed business confidence fuelled the month-on-month rises, while innovative developments in vehicle design and technologies provided solid business reasons for companies to upgrade their vehicles in 2011.’ However, he added: ‘There can be no room for complacency this year. Government must deliver its growth strategy and help strengthen business and consumer confidence.’

VAN OPERATIONS Telematics

Insurers to trigger telematics explosion? The European Union Gender Directive may not be top of your reading list, but since the directive will affect insurance companies and the way they are permitted to assess risk in setting insurance premiums by December 2012, it is an important issue for fleets. The UK and some other countries have been opting out of the provisions of the European Union Gender Directive since it was implemented in 2004. This was challenged by the Belgian Consumers Association in 2008 and in 2011 the European Court of Justice upheld an earlier ruling that banned using gender as a risk factor when setting insurance premiums. Insurers have until 21 December 2012 to comply, meaning they must use other ways to assess risk. In December 2011, HM Treasury launched a consultation process on the Gender Directive and how it should be incorporated in UK law. Separately, but using related UK legislation, the 2010 Equality Act is also being implemented, stageby-stage. The Government has yet to decide how it will treat using age as a factor in assessing insurance premiums, which currently means that young drivers, particularly young men, pay higher premiums because they are involved in the greatest number of road accidents. Older drivers also pay more because they have a higher accident rate, although not as great as that of young men. In fact the two separate pieces of legislation mean that currently young women drivers pay lower insurance premiums than young men because they have fewer accidents. However, since this is based on the UK opt-out from the Gender Directive, this will almost certainly change by December. The Government is more sympathetic to age being used as a risk factor in assessing premiums, but has not yet made a final decision. But as it stands, some insurers could back out of insur-

ance provision for young drivers simply based on the current Gender Directive ruling. Premiums for young men are unlikely to fall, so the argument goes that premiums for young women could rise and given the relatively high risk compared with other age groups, the easy option for insurers will be to get out. In any case, insurers will have to change their assessment criteria and one way they could resolve both issues is to introduce usage-based insurance (UBI). In theory, this could help fleet managers to contain

cyholders themselves who will opt for the system and they are unlikely to do so if they regard themselves as a high risk whose premiums could rise if they choose the UBI route. Turning that argument on its head, fleets could benefit from reduced premiums if they are already implementing driver monitoring and using it to raise the standard of their fleet drivers. So fleets that turn a blind eye to persistent speeding, harsh acceleration and braking, which can be monitored using telematics, are effectively ruling themselves out of the benefits that UBI could bring in reducing insurance premiums. That view is supported by management consultancy Towers Watson. In December 2011, the company said that the growing pressure on motor insurers to support improved driver safety and bring claims and therefore prices under control will make telematics increasingly central to competitiveness. ‘Already, the recent expansion in companies offering usage-based insurance (UBI) policies, based on in-car telematics devices, is putting those companies without a UBI proposition at risk of eventually being left with the ”bad” risks, particularly among younger drivers,’ said Tony Lovick, director of analytics for Towers Watson’s DriveAbility UBI programme. Applying that argument to fleet insurance, who would want to be seen as a bad risk? 2012 could be the year when insurance companies increasingly see telematics as a solution to a number of problems. There should be benefits for fleets that use telematics to their own advantage, while for telematics suppliers, 2012 could be the year they have been waiting for.

“Fleets could benefit from reduced premiums if they are already implementing driver monitoring”

fleetworldgroup.co.uk

their fleet insurance premiums. This would mean fitting vehicles with telematics so that driver behaviour could be monitored. It has been done before, when Aviva, through Norwich Union, launched pay-asyou-drive insurance in 2006, including a policy for fleets. Take-up was not widespread, but the current issues facing vehicle insurers could be the trigger needed for wider acceptance. VFW knows of at least one insurance company, which already owns one of the large telematics providers, that is planning to launch a UBI policy for fleets. The attraction for insurers is based around reduced risk and therefore higher profitability. This is because it is the poli-

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DRIVEN

Fiat Doblo Work Up

Words Dan Gilkes

specification MODEL BASIC PRICE ENGINE FUEL INJECTION POWER TORQUE Weights (kg) GVW

1.6 MultiJet LWB Euro5 £17,065 4-cyl/1,598cc Direct injection 105PS @ 4,000rpm 290Nm @ 1,500rpm 2,200

KERB WEIGHT PAYLOAD MAX TRAILER WEIGHT

1,200 1,000 1,300

Dimensions (mm) LOAD SPACE LENGTH LOAD SPACE WIDTH

2,030 1,820

LOAD SPACE HEIGHT WIDTH between wheel arches LOAD HEIGHT (unladen) LOAD VOLUME Cost considerations

350 n/a 900 3.7m3

FUEL TANK CAPACITY 60 litres COMBINED MPG 49.6mpg CO2 emissions 150g/km OIL CHANGE 21,000 miles/2 years WARRANTY 3 yr/120,000 mile

fleetworldgroup.co.uk

” How much mate?” shouted the man in the Subaru while I was waiting to shine up the Doblo Work Up for photographs. I didn’t have the numbers on me at the time and my guess of around £15,000 was a bit short, but the 1.3litre version starts at just over £16,000. It’s not usual for a light CV to come in for much attention on test, but this was not the only time that the Doblo Work Up turned heads. That’s not bad for a vehicle that would not come first in a beauty contest. The Doblo put on weight when the new model was launched a couple of years back. Its looks don’t exactly win many friends in van form and the Work Up’s appearance – apparently sculpted with a chain saw from the van, with a body dropside body dropped on the back – make it look less accomplished still. Not what you might expect from a nation so closely associated with design. But this is a light CV and cutting-edge design doesn’t necessarily cut it with the clientele. The Work Up is practical to its fingertips and that’s what brought it all the attention. There isn’t another two wheel-drive pickup of this size on the market and with a tonne of payload, helped by generous axle tolerances, it punches well about its weight. The front axle is rated at 1,120kg and the rear at 1,450kg, so should help to avoid axle overloads when fully loaded. Then that sliced-off look provides one very useful locking compartment beneath the load bed. The space, measuring approximately 840mm deep, 940mm wide and 190mm high, is big enough to stow a selection of power and hand tools and keep them out of sight, on site. Fiat has also incorporated a wide sidestep behind each side door, so climbing into the load area can be carried out in safety. Upstairs, the dropside body is made from high-resistance steel, with a floor made from laminated wood with an anti-slip floor coat-

ing. The body sides are made from aluminium panels with the corner posts built in so the sides and back can be removed to form a flatbed, with lashing rings built into the edges. It’s good for three Europallets, reckons Fiat, or 33 boxes of fruit. We would have to question how long those aluminium sides would last as a builder’s mate, though. Powered by Fiat’s punchy 1.6-litre Euro5 diesel, the Work Up didn’t exactly fire us with enthusiasm initially. The engine rattles like an old-fashioned diesel from cold, but once it has warmed up, which took a while, it was transformed into something much sweeter. The Work Up logged an unimpressive 37mpg on its trip computer on a long haul to Gatwick, but had worked up to nearer 42mpg by the time we got back. That’s a lot closer to the combined 49.6mpg that most drivers won’t see, but is more like what we had hoped for. And it has the same wide comfortable cab as other Doblos, offering up a good driving position and good all-round visibility, despite the mesh headboard. It rides well and handles well too, just don’t expect a tight turning circle from the long wheelbase Doblo underpinnings. We reckon those turning heads tell a story. The Doblo Work Up is unique – not in offering a tonne payload, but in doing so on a smaller vehicle than you might imagine. Then there’s the price too. There isn’t another one-tonne dropside for anywhere near the money. We reckon that Fiat ought to find as many customers as it needs for it.

verdict The Work Up is a useful addition to the Doblo range. As we found out, our first impressions were fairly quickly overturned and we reckon that it offers an impressive little truck at a competitive price, in a class of its own.

PATHFINDER VAN. GENUINE OFF-ROAD CAPABILITY

PRIMASTAR. CLASS LEADING SECURITY

NV200. CLASS LEADING LOADSPACE

THE NEW NV400. STRONG ON STYLE, BIG ON SPACE

PRACTICALLY

GENIUS

Real thinking for the real world. Load faster and easier. Pack more on board. Get there quicker. Pull heavier loads. Visit the merchants less. Clear the site sooner. Get in and out of tighter spaces. Carry more stuff. And that’s just for starters. Commercial vehicles from Nissan. More than practical. Practically Genius.

NAVARA. CLASS LEADING PULLING POWER

CABSTAR. CLASS LEADING PAYLOAD CAPACITY

Models shown: NV400 L2 H2 E 100PS £21,660 on the road in inc delivery + VAT plus optional metallic paint at £350 ex VAT. NV200 1.5E, load area 4.2m3 and 2m load length, priced at £13,130 on the road inc delivery, ex VAT, plus optional metallic paint at £350 ex VAT. Navara Outlaw V6 double cab 3.0 V6 dCi 231, max engine torque 550Nm and max towing capacity of 3,000kg, priced at £30,444 on the road inc delivery, ex VAT, plus optional paint at £412.50 ex VAT. Primastar (X83 Series) – Thatcham 2011 award winner, priced at £17,245 on the road inc delivery, ex VAT, plus optional metallic paint at £350 ex VAT. Pathﬁnder Van, priced at £23,242 on the road inc delivery, ex VAT, plus optional metallic paint at £412.50 ex VAT. Cabstar 3.5T GVW twin wheel dropside, payload 1579kg and turning circle 9.6 metres kerb to kerb, priced at £20,365 on the road inc delivery, ex VAT, plus optional metallic paint at £350 ex VAT. Models subject to availability. Prices correct at the time of going to print December 2011. Nissan Motor (GB) Limited. The Rivers Ofﬁce Park, Denham Way, Rickmansworth, Hertfordshire WD3 9YS.

DRIVEN

Mercedes-Benz Sprinter 4x4

Words Dan Gilkes

specification MODEL

Sprinter 4x4 319 CDI medium

BASIC PRICE ENGINE FUEL INJECTION POWER

£35,020 6-cyl/2,987cc Common-rail 190PS @ 3,800rpm

TORQUE 440Nm @ 1,400 – 2,400rpm Weights (kg) GVW KERB WEIGHT PAYLOAD

3,500 2,420 1,080

MAX TRAILER WEIGHT Dimensions (mm) LOAD SPACE LENGTH

2,500

LOAD SPACE WIDTH LOAD SPACE HEIGHT WIDTH between wheel arches LOAD HEIGHT (unladen) LOAD VOLUME

3,265 1,780 1,820 1,350 790 10.5m3

Cost considerations FUEL TANK CAPACITY 75 litres COMBINED MPG 28.3mpg (2WD) CO2 emissions 272g/km OIL CHANGE Up to 31,000 miles/2 yr WARRANTY

fleetworldgroup.co.uk

3 yr/unlimited

Mercedes-Benz is establishing its Sprinter 4x4 as a model in its own right, rather than simply an option box that can be ticked on the twowheel drive range. This will broaden the availability of all-wheel drive across much of the Sprinter line-up. Sprinter 4x4 is available with a choice of three engines, including two versions of the Euro 5 2.1-litre four-cylinder motor, offering 129PS and 305Nm of torque, or 163PS and 360Nm of torque. You can also opt for the 3.0-litre V6 diesel, pushing out 190PS and 440Nm of torque. All three engines can be had with a six-speed manual gearbox or an automatic. Initially that means Merc’s five-speed auto ’box, but this will be changed to the 7GTronic seven-speed automatic transmission in the first quarter of 2012, offering similar mpg as the manual vans. 4x4 is available on medium, long and extra-long chassis/body models, at both 3,500kg and 5,000kg GVW. You can also choose from a range of roof heights, while the driveline can be specified on panel vans, minibuses, crew cabs and chassis cabs, greatly increasing the 4x4 model range. The body sits 80-95mm higher than for 4x2 models, although the wheel size is unchanged. Mud and snow tyres are the only other concession to off-road or winter driving. A switch on the dash engages four-wheel drive, splitting torque 35/65 front/rear. A second switch selects low ratio, dropping the overall gearing by around 40%. For automatics, the low range will automatically engage if required while off-road, or it can be selected by the driver before getting into a sticky situation. The Sprinter 4x4 uses Merc’s 4ETS Electronic Traction System to ensure drive is maintained on the rough. There are no differential locks, but the system activates the vehicle’s brakes to slow any spinning wheel and redirect drive to those tyres with grip. The 4ETS system is fully integrated with the standard ESP control.

In practice this works remarkably well. Rather than lifting off the throttle when a wheel loses grip, simply keep the revs steady and the electronics will slow a spinning wheel and maintain traction and forward motion through those that are gripping. Even over severe articulation bumps, with a wheel pawing the air, the Sprinter 4x4 keeps pulling through, while on slippery climbs the van provides constant motion even over mud and ruts. We tried both the higher-powered manual four-cylinder van and the V6 auto, and there was little difference in terms of off-road performance. It is only on the road where the advantage of the larger engine and the automatic transmission become most obvious. Once you do get back on the road, the biggest benefit of the Sprinter 4x4’s design also comes to the fore. On asphalt it drives just like any other Sprinter, albeit with a slightly higher driving position. All that off-road ability doesn’t result in tedious amounts of noise or drag when in normal use. It shouldn’t push the fuel consumption much either when on the road, as it is running as a 4x2; the same as the regular van. The 4x4 Sprinter is listed at around £5,500 more than a comparative 4x2 model, and the driveline takes 80-90kg from the available payload. However for companies with a genuine off-road requirement, those will be relatively small sacrifices. Traditionally Mercedes has sold Sprinter 4x4 in the hundreds in the UK. But with the all-wheel driver now a specific model, the firm is expecting to see sales rise into four figures next year.

verdict The Sprinter 4x4’s combination of off-road ability and on-road manners make it a highly versatile choice for those who require some additional grip.

VAN FLEETW RLD

SUPPLIER DIRECTORY

AUCTIONS & REMARKETING

CONTRACT HIRE, LEASING & FINANCE

RACKING SYSTEMS

TAIL LIFTS

FLEET MANAGEMENT SOFTWARE

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

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

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

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

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

Full listings online at

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

Sortimo Central Tel: 0121 511 2303 www.sortimo-central.com

Penny Hydraulics Tel: 01246 811475 www.pennyhydraulics.com

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

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

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

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

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

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

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

Arnold Clark Vehicle Management

HEALTH & SAFETY COMPLIANCE

Bynx Tel: 01789 471600 www.bynx.com

fleetworldgroup.co.uk DAILY RENTAL

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

VAN FLEETW RLD

SUPPLIER DIRECTORY

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

Full listings online at fleetworldgroup.co.uk

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

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

Incorporated into every issue of VAN Fleet World Magazine and interactive online at

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

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

FAST-FITS & TYRES

VEHICLE DATA

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

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

Full listings online at RISK MANAGEMENT Roadmarque Tel: 0845 053 0331 www.roadmarque.com

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

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

TELEMATICS & TRACKING

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

FLEETW RLD

SUPPLIER DIRECTORY

Searchable online at fleetworldgroup.co.uk Tel: 0113 346 7705 Ctrack www.ctrack.co.uk

FUEL MANAGEMENT

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

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

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

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

Trakm8 Tel: 01747 858 444 www.trakm8.com

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

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

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

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

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

Email link to sales contact Website link to homepage

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VAN

fleetworldgroup.co.uk

£400 flat rate for the year

ACCIDENT MANAGEMENT

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

Full-colour company logo

VAN

fleetworldgroup.co.uk

FLEETW RLD January 2010

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

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

January 2010

Full listings online at fleetworldgroup.co.uk

January 2012

MARKET OVERVIEW Contract Hire, Finance & Leasing

ALD Automotive The ALD Automotive group is the second largest vehicle leasing operation in Europe and manages over 900,000 vehicles across 37 countries worldwide. Within the UK ALD is widely recognised as one of the industry’s leading service providers, with a proven portfolio of award winning products for major plc’s, small businesses and individual drivers alike. A specialist VanLease division offers award winning products including ProFleet2 in-vehicle telematics and DriveSafe, a unique suite of risk management initiatives, just two of the innovative solutions offered as standard for commercial vehicle operators. ALD hold Investor in People, ISO 9001 and ISO 14001 accreditation. Contact: Mel Dawson mel.dawson@aldautomotive.com www.aldautomotive.co.uk

Tel: 0870 0011181

Arnold Clark Vehicle Management Arnold Clark Vehicle Management is one of the UK's premier vehicle leasing companies. We’re a family run business - small enough to deliver a uniquely personal experience, yet big enough to deliver the professional fleet management you need. We are the largest dealer-based leasing company in the country and we have a characteristic no-nonsense business style. Because we're totally independent, you can always rely on us to provide unbiased advice. We've helped corporate clients, small businesses and government departments realise genuine savings and improvements in productivity. We listen, and we'd welcome the chance to work with you. Contact: Calum Ewart calum.ewart@arnoldclark.co.uk

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

Pendragon Contracts

Fleet Alliance is a leading UK fleet management provider offering contract hire, leasing and a complete range of fleet solutions. We currently manage over 10,000 vehicles with a combined value of £250m on behalf of corporate clients of all sizes. We deliver a complete fleet solution via our market leading Fleet 360 model which provides the best combination of advice, products, competitive pricing and outstanding service.

Pendragon Contracts provide a consultative, flexible and solutions-driven approach tailored to every corporate customer’s individual needs. We can provide consultancy on Whole Life Costs resulting in considerable savings for our clients. Our products and services include contract hire, salary sacrifice car schemes, discounted vehicle supply, online vehicle fleet management, vehicle recovery, risk management, accident management, tyre provision, glass replacement, fuel provision, daily hire and telematics.

Contact: Grant Boardman grant.boardman@fleetalliance.co.uk www.fleetalliance.co.uk

Contact: John Given info@pendragon-contracts.co.uk www.pendragon-contracts.co.uk

Fleet Alliance Limited

Tel: 0845 601 8407

Tel: 01332 292 777

Volkswagen Group Leasing

Venson Automotive Solutions Limited Independent Venson Automotive Solutions provides a diverse portfolio of services - traditional company vehicle funding and fleet management to accident management, vehicle equip-for-service, work shop and body shop management - to companies and organisations within the public, private, not-for-profit and emergency service sectors. Its fleet solutions are believed to be unique in the industry as they are delivered through Venson’s own operations across the UK and not third party providers. Venson believes in true partnership and treats each of its customers as if they are the only customer. Testimony to this is the customer retention rate of over 98%.

Yes we deal with finance, with fleets, with leasing. But we're also more than that. We're the LCV fleet specialists that have a different way of doing things. We're not just about the numbers and giving customers what they expect – we're about giving them more than they expect. We're about super-quick response times, providing every make and model of LCV and customer service that doesn't just tick boxes, but creates a whole new customer experience. It's our unique range of products and services that makes us better than the norm. Because sometimes it's being different that makes all the difference.

Contact: Alan McCleave a.mccleave@venson.com www.venson.com

Contact: Phil Jones vglenquiries@vwfs.co.uk www.volkswagengroupleasing.co.uk

fleetworldgroup.co.uk

Tel: 08444 99 1402

Tel: 0870 333 2229

Can you create bespoke return conditions for your LCV customers? Do you offer pooling of excess and credit mileage? Do you follow the BVRLA’s guidelines on Fair Wear & Tear for LCVs? Do you offer packages that are based upon re-using bodywork or Interior equipment? Do you offer guidance to clients on Duty of Care legislation? Do you offer a design & build service for extensive bespoke conversions? Do you offer and arrange long term vehicle evaluations (6 months duration)

Vehicle Management Do you oﬀer funding & maintenance for ancillary equipment ﬁtted to the vehicle (tail lifts etc)?

Arnold Clark Do you oﬀer non-maintenance contract hire on LCV’s?

ALD Automotive Do you employ dedicated specialists to oﬀer advice & guidance on LCV speciﬁcation?

Key to services

Approximately how many commercial vehicles does your company operate?

VAN FLEETW RLD

4.3k+

4.2k+

Fleet Alliance Limited 2k

Inchcape Fleet Solutions 8k+

Leasedrive Group 7k

Pendragon Contracts 3k+

Venson Automotive Solutions Ltd 5.5k

Volkswagen Group Leasing 5.5k

Service provided

Service unavailable

For all your daily fleet needs, visit...

internationalfleetworld.com

fleetworldgroup.co.uk

evfleetworld.co.uk

January 2012

NUM8ER5 G4ME the fleet month in figures Number of UK electric vehicle dealers initially being launched by Renault to provide sales and after-sales services for its EV customers. SOURCE > Renault

21 17%

CO2 reduction achieved by West Oxfordshire District Council after implementing Quartix telematics technology. SOURCE > Quartix

175,000 Record number of vehicles now managed by TomTomâ&#x20AC;&#x2122;s WEBFLEET fleet management software. SOURCE > TomTom

40%

Percentage of motorists who rate price as top priority when buying used car. SOURCE > BCA

98%

Proportion of fleets now drawing up plans to tackle road risks. SOURCE > Alphabet

109 g/km

CO2 emissions of new E-Class diesel hybrid. SOURCE > Mercedes-Benz

one in three

301% Rise in demand for cold weather tyres between September and November 2011 compared to same period in 2010. SOURCE > ATS Euromaster

fleetworldgroup.co.uk

Proportion of fatal road crashes that could be avoided by the use of eSafety technology. SOURCE > The US National Highway Transportation Safety Administration

Number of daysâ&#x20AC;&#x2122; free car or van rental being offered by Leasedrive. SOURCE > Leasedrive