Fleet World July 2012

The leading magazine for fleet decision-makers

July 2012

FLEETW RLD DRIVEN TO DISTRACTION Why smartphones and technology are the biggest risk in fleet...

inside Driven Mercedes-Benz A-Class Peugeot 508 HYbrid4 Lexus GS Hybrid Toyota Prius+

Used market How 2012 has panned out so far fleetworldgroup.co.uk

The leading magazine for fleet decision-makers

July 2012

FLEETW RLD fleetworldgroup.co.uk

DRIVEN TO DISTRACTION

RECRUITMENT

Why smartphones and technology are the biggest risk in fleet...

For the lastest recruitment vacancies, visit fleetworldgroup.co.uk inside Driven Mercedes-Benz A-Class Peugeot 508 HYbrid4 Lexus GS Hybrid Toyota Prius+

Used market How 2012 has panned out so far fleetworldgroup.co.uk

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

Published by Stag Publications Ltd, 18 Alban Park, 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

STAG Publications

Viewpoint

Contents

A combination of the stagnant economy, and the changing tastes of British buyers is having an effect on the shape of the fleet market.

In this issue, we talk to Vauxhall’s fleet sales director James Taylor about how the firm is dramatically cutting back on short cycle business in a bid to improve residual values, and therefore wholelife costs, on its cars.

Like many mid-market firms, Vauxhall really has no choice, because to put it bluntly, people want more prestigious brands now.

That’s why Mercedes-Benz’s excellent (and surprisingly cheap) new A-Class is likely to be a huge fleet hit, and take even more sales from the bedraggled volume sector.

The thing is, there is still a lot of money about, even if the economy isn’t growing.

I’ve been collaring various executives about how they see their customers faring and the view seems to be broadly the same: a lot more companies are holding more capital than in 2008/09, when that turmoil caught out a lot of firms without reserves.

They may be holding off a little bit more on ordering new vehicles but there is still an appetite among many to restock their fleet.

And the firms doing well are still doing well.

So there is business to be done in the fleet market still, but we are now in a different market – one where the premium brands dominate, where even Mercedes-Benz are talking about being more fleet-friendly, and where the cheaper brands such as Skoda, Hyundai and Kia are doing well. In some ways it reflects the broader economy: if you’re not distinctive, different and cash rich, you’ve had it. If you are: these are still good days.

04 A month in fleet 10 Fleet World Barometer Making sense of the eet surveys this month

14 Comment 20 MPG Marathon 2012 Sign up for the UK’s premier economy driving event in early October.

24 Driven Mercedes-Benz A-Class // Peugeot 508 HYbrid4 // Toyota Prius + // Lexus GS Hybrid.

32 A fleet observation Highlights from Arval’s Corporate Vehicle Observatory research into the UK eet market.

36 The used market Reecting on the changes in the UK used market after months of nancial turmoil.

44 Driven to distraction Are mobile comms devices the biggest risk to eet safety?

52 To buy or lease 56 Fleet Academy 58 Interview James Taylor at Vauxhall Fleet.

60 Market Overview Fleet Management Software.

63 Salary Sacrifice 68 Fleet Update 73 VAN Fleet World Vauxhall Combo // Risk Management

82 NUM8ER5 G4ME The eet month in gures.

®

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

20 36 58 94

Certified circulation Jan – Dec 2011 19,619

Steve Moody Editor

July 2012

03

A MONTH IN FLEET A skip through the key news and events since the last issue of Fleet World.

Sign up to our FREE digital newsletter Fleet World Confidential... visit fleetworldsubscriptions.co.uk

CONFIDENTIAL

BUSINESS DRIVER COLLISION RATES 40% HIGHER Business drivers have collision rates that are up to 40% higher than those of private drivers, research has found.

Total Accident Management’s study also found that most accidents happened at what are usually thought of as low risk times, with more than half of the recorded accidents (53%) taking place in clear weather, setting corporate drivers apart from their retail counterparts, while accidents in adverse weather conditions, such as rain, snow and sleet accounted for just 4%.

The firm believes that in adverse weather, drivers automatically take more precaution and reduce their speed, while in clear weather drivers are likely to travel faster and concentrate less.

Analysing road types and related accidents, there was a clear indication that A-roads are where drivers need to be at their most vigilant. The most accidents were recorded on major A-roads (20%) with B-roads (11%) in second place and minor A-roads (9%) in third place. Only 2.27% of accidents were recorded on motorways, reinforcing their relative safety compared to A and B-roads.

The other key location where nearly 10% of accidents happened was in car parks. Although vehicles are travelling at slower speeds, drivers have to deal with many other factors as well as maintaining their own concentration. This type of accident is likely to be the most costly to fix overall.

WADY LEAVES CITROËN AS HAMILL TAKES UP FLEET ROLE

DIESEL-RIVALLING GS HYBRID COMING NEXT YEAR

Citroën UK has appointed Martin Hamill as fleet director with effect from 9 July, 2012, following Andy Wady’s decision to take up a new position outside the group.

Hamill will be responsible for Citroën UK’s National Fleet business. The re-marketing of used Citroën vehicles will also fall within his remit.

Hamill has been with Citroën for 13 years. In his current role as head of Commercial Vehicles & Business Sector, Martin has delivered business sector car and van sales growth year on year of 39.7% in 2011 and 24.7% to the end of May 2012.

Commenting on his new appointment, Martin said: ‘I’m delighted to take up this important role at such an exciting time for the brand. The introduction of the DS line and initiatives like our Business Class programme have changed the way we’re perceived right across the industry.

‘We will continue to develop our fleet offering and service levels, and I look forward to working closely with my team so that we further build our presence and therefore volumes in the years to come.’

Lexus will launch a low-displacement version of its new GS hybrid late next year, aimed at lowering its CO2 emissions in line with conventional diesel rivals.

The model will launch as part of plans to grow GS sales to 2,500 units in 2014, according to Toyota GB president and managing director, Jon Williams.

Williams said despite 20% of executive buyers considering hybrid technology for their next car, taxation meant lowering the GS's CO2 output would be important in a segment where 80% of new cars have a diesel engine.

‘In the E-segment, CO2 is essential because the majority of drivers in that segment have company cars,’ he explained.

The small hybrid looks likely to be a four-cylinder petrol and would need to come in well under 120g/km.

PETROL RETAILERS ASSOCIATION WELCOMES DUTY FREEZE The RMI Petrol Retailers Association (PRA), which represents independent forecourt across the UK, has welcomed the Government’s decision to not go ahead with the 3 penceper-litre (ppl) fuel duty increase in August.

Brian Madderson, PRA chairman commented: ‘PRA has lobbied against the planned August increase since its announcement in Autumn 2011.

‘We are concerned, however, that the Chancellor is only

04

fleetworldgroup.co.uk

delaying the duty increase until 2013. If the increase was to go ahead in January the 3.02ppl will in fact amount to 4.00ppl due to the 20% VAT added, which we believe will deter the green shoots of economic recovery.

‘With both oil companies and hypermarkets fighting for share of a declining market, the independent forecourt retailers have been caught in the cross-fire with many closing for business.’

Ford NEWS All-new Focus ST: outstanding performance THE all-new Ford Focus ST, which is on sale now in ST1, ST2 and ST3 trim levels, has brought a huge round of applause from the media, with its balance of outstanding performance, handling, refinement and style.

BBC Top Gear Online said “it might be the best do-everything fast car in the world,” What Car? Online said “We find it difficult to do anything other than heartily recommend it” and Autocar Online said it was “a performance car you could live with every day.”

The Focus ST’s 250 PS, 2.0-litre turbocharged EcoBoost petrol engine is expected to achieve 0-62mph in 6.5 seconds and 154mph, and is also expected to return 39mpg and CO2 emissions of 169g/km, a 20 percent improvement over the previous Focus ST. The new engine delivers the power of a larger displacement unit with the fuel efficiency of a smaller engine. It achieves this through a combination of high pressure direct injection, low-inertia turbocharging, and Twin-independent Variable Cam Timing (Ti-VCT), as well as redesigned intake and exhaust systems, and unique calibration.

The six-speed manual transmission produces maximum punch from each gear shift throw using specially-revised gearing. The sixth gear helps drivers achieve excellent fuel economy on longer runs.

Performance features include three-mode Electronic Stability Programme, Torque Vectoring Control which applies brake torque to reduce understeer, specially calibrated Electronic Power Assisted Steering, revised suspension, uprated shock absorbers and springs and specially-developed Goodyear Eagle tyres.

New Mondeo means business...

The exciting new Mondeo Zetec Business Edition, available as a five-door or estate, is based on the popular Mondeo Zetec, with additional high-tech features which include: • 17-inch alloy wheels with lock nuts • LED daytime running lights • Colour touch-screen navigation system with USB connectivity • Privacy glass • Front and rear parking sensors • Front and rear carpet mats • Power folding door mirrors • Front door scuff plates There are six powertrain choices: + 115PS 1.6-litre TDCi Econetic with Auto-Start-Stop and six-speed manual transmission, with CO2 emissions of just 114g/km, which puts it below the important 115g/km threshold. + 140PS and 163PS versions of Ford’s 2.0-litre TDCi engine with choice of six-speed manual or six-speed PowerShift automatic transmission. + 160PS 1.6-litre EcoBoost petrol with six-speed manual and Auto-StartStop which can reduce fuel consumption and CO2 emissions by as much as 5% in mixed driving conditions. In an urban environment and in heavy traffic with frequent stops, the savings could increase to as much as 10%.

For further information on any vehicle in the Ford range please contact the Ford Business Centre on 08457 23 23 23, email info@fordfleet.co.uk, or visit www.ford.co.uk/fordfleet

Ford News Feature // 05

inbrief Ford 1.0 EcoBoost “International Engine of the Year” Ford’s new 1.0-litre EcoBoost engine – which was launched to widespread acclaim this year in the Ford Focus and will be available in C-MAX and B-MAX later this year– is named 2012 “International Engine of the Year”.

The small, high-tech, three-cylinder engine was also “Best New Engine” and “Best Engine Under 1.0litre” in the awards presented by Engine Technology International magazine, based on votes cast by 76 journalists from 35 countries.

This is the first time Ford has won International Engine of the Year in the 13-year history of the awards – and the EcoBoost won with the highest score ever.

The Ford Focus with 100PS version of the 1.0-litre EcoBoost engine delivers best-in-class fuel efficiency of 58.9mpg and CO2 emissions of 109g/km. The 125PS version returns 56.5mpg with CO2 emissions of 114g/km.

Ford global powertrain vice president, Joe Bakaj, said: “We set the bar incredibly high when we started to design this engine. We wanted to deliver eye-popping fuel economy, surprising performance, quietness and refinement.”

Dean Slavnich, chairman of the International Engine of the Year awards and editor of Engine Technology International magazine, said: “Power, response and very good real-world fuel consumption figures are just the tip of the iceberg when it comes to this engine and what it offers drivers today.”

The International Engine of the Year judging panel of automotive journalists consider drivability, performance, economy, refinement and the successful application of advanced engine technology.

A MONTH IN FLEET A skip through the key news and events since the last issue of Fleet World.

Sign up to our FREE digital newsletter Fleet World Confidential... visit fleetworldsubscriptions.co.uk

CONFIDENTIAL

IAM CONCERNS OVER DROP IN MOTORING PROSECUTIONS The Institute for Advanced Motorists has demanded the Government explain why there has been a dramatic fall in the number of drivers prosecuted for motoring offences.

According to research by the organisation, the total number of magistrates’ court proceedings for motoring offences fell from 1 million in 2010 to 888,000 in 2011, down 12.6%.

The findings, based on Ministry of Justice figures released in June, also show that the number of people facing prosecution in magistrates’ courts fell from 630,900 in 2010 to 566,800 in 2011, down 10%, according to research by the IAM. The number of people facing prosecution for driving offences that resulted in death dropped by 11.5%, from 694 in 2010 to 614 in 2011, while the number of people facing prosecution for causing death by dangerous driving fell from 282 in 2010 to 201 in 2011, down 28.7%.

There was also an 11.5% fall in the number of people facing prosecution for using a hand held phone, dropping from 40,000 in 2010 to 35,400 in 2011.

IAM chief executive Simon Best said: ‘The recession and the expansion of awareness courses for offences like speeding could well be having an impact on these figures – more people are opting for courses rather than points and this improves driving.’

INSURANCE GIANT MOVES INTO TELEMATICS Insurance giant RSA is stepping into the growing telematicsbased market by underwriting the Ingenie insurance brand.

The partnership with Ingenie is the first telematics initiative announced by RSA this year and is part of the insurer’s strategy to build its tracking capability.

Richard King, Ingenie founder and CEO, said: ‘We set out from the start to work with two major motor insurers and so we are delighted to be announcing our partnership with RSA, which complements the success we have already achieved working with insurer Ageas.

‘This new partnership will clearly help to extend our reach and ”quotability” and satisfy the rapidly increasing demand for telematics insurance in the UK.’ Ingenie, which was launched at the end of last year, uses telematics technology from backer Williams F1 to build a picture of a driver’s individual style and reward those who drive well with cheaper insurance premiums. To incentivise better driving, individual insurance premiums will be reviewed by RSA every three months, with the best and most improved drivers rewarded with discounts.

The in-car device, which is fitted for free, includes a high frequency motion sensor which captures driving data at 10 times per second. Customers receive regular updates on their driving via Twitter-style messages.

06

fleetworldgroup.co.uk

BMW ANNOUNCES SUPPORT PACKAGE FOR EV SUB-BRAND BMW will support its forthcoming i electric sub-brand with a comprehensive package of assistance services and products, including mobile roadside charging and intelligent satellite navigation.

Speaking at the opening of the world’s first BMW i showroom on Park Lane in London (above), Ian Robertson, member of the board of management for sales and marketing at BMW AG, said there would be discussion with fleets on how the 360° Electric package can be tailored to their own service and breakdown arrangements.

Alleviating range concerns, 360 Electric includes mobile roadside charging and intelligent satellite navigation which plans the most efficient routes and shows charging point locations, supported by a smartphone application.

For longer trips, drivers will be given access to conventionally-powered BMWs under a partnership with Sixt.

BMW will also offer a home charging Wallbox, adding smart charging at up to three times the speed of a standard outlet.

ROBERT WASTELL NEW MD OF HITACHI CAPITAL VS Hitachi Capital Vehicle Solutions has appointed Robert Wastell as divisional managing director.

A newly-created role, the appointment comes at a time of growth for the company the firm said, with Wastell focusing on expanding the car business, while Simon Oliphant, chief executive officer, retains overall responsibility for the group.

With more than 20 years experience in the vehicle leasing industry, including sales director at Lex Vehicle Leasing and running comparecontracthire.com, Wastell has worked in all sectors from large corporates, to the public sector and the SME market.

Commenting on his appointment, Wastell said: ‘I am delighted to be joining Hitachi Capital Vehicle Solutions at such an exciting time for the company. It is an excellent organisation that prides itself in offering superb customer service, a great working environment for its people and a commitment to continuous improvement. The company has large growth aspirations for the future and I am committed to achieving these objectives.’

I VI DR *

• 12 month contract • FREE installation • On-site warranty

• Exceptional service

• Driving-style monitoring * Then £22.90 per month after the first three months.

0870 013 6663 enquiries@quartix.net www.quartix.net

NG

I OR ES N I T UD O CL M IN YLE T -S

NG

Real-Time Vehicle Tracking

A MONTH IN FLEET A skip through the key news and events since the last issue of Fleet World.

Sign up to our FREE digital newsletter Fleet World Confidential... visit fleetworldsubscriptions.co.uk

GLASS’S AIMS TO BOOST RV ACCURACY Glass’s will launch a new valuation system later this summer based on the 1.3m retail and 4m trade market observations it receives each year, claimed to be the desired method by 80% of its customers, and a way to offer more detailed and responsive information which will underpin its future products.

Named G2, the system analyses trade, retail and transacted values separately, reflecting the trade’s tendency to respond more quickly to market conditions, and adjustments based on mileage will be carried out for individual makes, models and derivatives. The company said its values will be based on statistical data gathered from a claimed 95% of the used car market, rather than algorithms.

Vehicles will be divided into three individually adjusted categories dependent on condition, instead of a single ”ready to retail” category, and benchmarked against information from auctions. Glass’s will send a brochure to its customers to explain the changes.

Vik Barodia, director of product management and marketing at Glass’s, explained: ‘The car market has changed beyond recognition in the last 10 years and this is precisely why we are launching G2. Our new valuations give us the means to provide customers with the tools to make more profit today and into the future.

‘The process of developing G2 has involved extensive research and discussions with our customers and partners from every sector. They were overwhelmingly in favour of a move to condition grading based values, so now we’re giving our customers what they’ve asked for and meeting the needs of the industry.’

INBRIEF COST TOP OF SALARY SACRIFICE CHOICE Drivers put cost considerations ahead of all other factors in their reasons for deciding to acquire a car through a salary sacrifice car scheme.

According to a survey of more than 1,000 drivers by contract hire and salary sacrifice specialist Tusker, four of the top five most appealing key benefits of the scheme related to its low cost. This reflects the rising cost of motoring for drivers and the need for an alternative, more cost effective way to acquire a car, such as a salary sacrifice car scheme.

> TYRE INDUSTRY IN INFORMATION ROLL OUT

AUDI LAUNCHES MILEAGE TRACKING APP Audi has launched a new free mileage tracking app, helping company car drivers to make fuel claims.

The Audi Mileage Tracker app, which is now available to download via the iTunes store, allows real-time tracking of car journeys using GPS mapping.

Drivers can programme the amount they receive per mile, and the app then automatically calculates the money they are owed. The app can generate a spreadsheet of journey logs over a given period and is integrated into email for easy sharing, while also cutting out paper waste.

A simple start-stop function makes the app quick and easy to use, Audi clams. It also knows when drivers deviate from their journey for road works, giving the exact distance travelled from door to door.

DRIVING LICENCE CHANGE WILL SIGNAL INTERNET CHECKS Online checking could become more important to fleets when new driving licence changes come in from 2014.

The Department for Transport has announced that the green paper counterpart to each credit card licence will be removed as a requirement from 2014.

As a result, Neville Briggs, managing director at CFC, said: ‘While it is a far from perfect method because it is infrequently up to date, checking the paper counterpart is still used by many fleets as a means of proving whether drivers have any points on their licence.

‘In the future, these fleets will have to find some form of alternative checking to fulfil their duty of care, and using some form of online system is the only alternative.’

08

fleetworldgroup.co.uk

CONFIDENTIAL

The tyre industry has begun to roll-out its largest ever customer information programme, that will deliver crucial cost and safety information to the UK’s 44m motorists.

Tyre companies have begun labelling each of the 35m tyres sold each year in the UK. The labels will explain the fuel efficiency, safety and external noise level of every tyre sold in dealership aftersales departments and fast fits across the country.

> IDS LAUNCHES NEW DEPRECIATION TOOL International Decision Systems (IDS) has launched a new online application for forecasting Residual Values and vehicle depreciation for use in setting wholelife costs, leasing rates and company car selections.

Called 4Cast, the stand-alone software product provides independent residual values for more than 9,000 cars and LCV’s, and takes its data from IDS’s database.

IDS is offering a free seven day trial for potential customers. Email dataSales@idsgrp.com for details.

THE SMART MONEY KNOWS WHEN TO BUY.

10 YEARS OF

JAGUAR XF, NOW FROM ONLY £ OTR*

29,955

CAR OF THE DECADE

JAGUAR XF

The smart money spots opportunity quickly. So let us be brief. The Jaguar XF is BusinessCar Magazine’s Executive Car of the Year. Combining formidable performance with fuel efficiency of up to 52.3 mpg (combined), it has one of the best specification adjusted prices in its class, as well as some of the shortest lead times around. And right now, it starts from just £29,955 on the road.

That’s why the smart money drives a Jaguar XF. Contact us today to talk to a corporate sales specialist.

WWW.JAGUAR.CO.UK/CORPORATESALES 0845 366 0342 Fuel consumption figures for the Jaguar XF 2.2D: MPG (l/100km): Urban 42.8 (6.6) Extra Urban 58.9 (4.8).

Combined 52.3 (5.4). CO2 Emissions 149g/km. *On the road price is the Manufacturer’s Recommended Retail Price plus Car Tax, First Registration Fee and Delivery Pack.

Making sense of the surveys

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

in association with

THE STRESS OF DRIVING A STUDY ON DRIVING STRESS CARRIED OUT AMONG 2,000 DRIVERS: • One in two drivers admit to not enjoying driving any more.

• Around 15% – or five million motorists – have got out of their car to confront another driver.

• Seven out of 10 drivers believe they are more aggressive behind the wheel than at any other time.

• When on the receiving end of road rage 40% feel angry, 28% feel shaken and nearly 22% feel like retaliating.

Tim Bailey, safety expert for Continental Tyres said: ‘The figures are shocking. Of paramount importance is road safety but if motorists feel intimidated or angry they will lack concentration, increasing the danger for other road users, never mind not enjoying the driving experience.’

‘We are launching a ‘Courtesy Campaign’ to help reduce the problem, not only to improve safety and the driving experience but also because showing consideration to others on the roads actually eases congestion and reduces delays.’

Source: Continental Tyres

10

fleetworldgroup.co.uk

DRIVING IN FRANCE RESEARCH INTO THE LEVEL OF KNOWLEDGE OF OUR NEIGHBOURS’ NEW DRINK-DRIVING LAWS: • Half of motorists are unaware that the breathalysers they will soon need to carry in France must be certified to the French NF standard.

• 82% of people think that the new regulations will have no effect on reducing drink driving.

• 13% said that the new regulations will reduce people driving over the limit.

• 70% said that drivers will only carry them to comply with the law, and not change their behaviour.

• 75% plan to take the breathalyser kit with them. Only 7% said they didn’t plan to, while 18% didn’t know or hadn’t thought about it.

Source: Institue of Advanced Motorists

IAM chief executive Simon Best said: ‘Agree with the changes or not, from July 1 you will face a fine if you don’t carry an NF approved breathalyser while travelling in France. While these are a good way of being sure you are safe to drive, if you’re going to drink don’t drive, and beware the morning after effect.’

TYRE WEAR A REPORT INTO TYRE WEAR AMONG BRANDS ON FORD FOCUS CARS, BY A MAJOR LEASING FIRM OVER FIVE YEARS: Axle

Tyre make

Sample size (number of tyres)

Front Front Front Front Rear Rear Rear Rear

Michelin Bridgestone Pirelli Continental Michelin Bridgestone Pirelli Continental

1904 493 704 908 653 168 252 246

Average tyre mileage 27,036 23,772 21,693 18,374 44,610 42,074 38,958 32,693

Source: A leasing company

Michelin’s product marketing manager, Steve Dolby said: ‘It is really unusual to have detailed data like this made public, but it is so valuable for fleets because using tyres which last longer can result in fewer tyres per contract being used, with considerable cost savings.

‘These results are based on more than five thousand tyres which is a really impressive sample size and the results back-up independent tests that have been carried out before.

‘What is especially important to us is that these results are real-life.The tyres have been run on fleet vehicles under normal UK road conditions.’

LITTERING Source: Green Flag

THE AMOUNT OF RUBBISH THROWN FROM CARS: Nine million drivers admit to have thrown litter from their car. Drivers excuse their actions by claiming they throw out items to prevent a smell building up (27%) and more than one in five (22%) claim it is to prevent their car becoming cluttered. A lazy 17% of drivers said they couldn’t wait for a bin, while 16% claimed they couldn’t stop to deposit items because the road was too busy.

Top five items thrown from cars: • Cigarette butts (29 million) • Food (17.4 million items including fast food) • Food wrappers (11.8 million) • Drinks bottles and cans (6.2 million) • Tissues (5.2 million) Miranda Schunke, spokesperson for Green Flag, said: ‘It is disgraceful that our roads are being clogged up with rubbish from motorists who are too lazy to find a bin.

‘Motorists should also be aware if they eat, drink or smoke behind the wheel, they risk between three and nine penalty points for not driving with due care and attention.’

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

July 2012

11

BUSINESS. CLASS. TAKE CARE OF YOUR BUSINESS BY ADDING A FLEET OF MINIs WITH MEGA LOW RUNNING COSTS AND DEPRECIATION.

Relish the thrill of travelling MINI class. From the sporty MINI Coupé to the big time MINI Countryman with its 4 door, 5 seat practicality, every model makes a big statement (apart from with the accounts department). Delivering low fuel economy, CO2 emissions and running costs there is plenty of substance to go with the style.

Slick interior and exterior design are abundant across the MINI range, with trademark go-kart handling and grown up specification as standard. Upgrade your fleet and downgrade your costs with MINI.

Visit www.MINI.co.uk/corporate to see the difference that the MINI Range can make to your business.

MOVING FORWARD WITH MINI FLEET. VISIT WWW.MINI.CO.UK/CORPORATE

Official fuel economy figures for the MINI Range: Urban 26.4-67.3mpg (10.7-4.2 l/100km). Extra Urban 44.8-80.7mpg (6.3-3.5 l/100km). Combined 35.8-74.3mpg (7.9-3.8 l/100km). CO2 emissions 184-99 g/km.

COMMENT

Joined up thinking Curtis Hutchinson Volkswagen's new SME leasing programme is more significant than it first looks. Curtis Hutchinson assesses the brand's refocusing.

‘We realised we were not looking after the SMEs ’ 14

fleetworldgroup.co.uk

Volkswagen has launched a new leasing programme aimed at local fleets. What surprised me was not how groundbreaking the initiative is, it isn’t, but the fact that it was not already in place. Reading between the lines it shows a change of mind-set and greater focus from one of the leading fleet manufacturers.

All carmakers, from niche to volume, will tell you how important SMEs are to their business and then, mostly, stand back and let their dealers offer a good, bad or non-existent service.

Volkswagen's new package will not allow for that. What the scheme's name lacks in originality, the Small Business Leasing programme makes up for in a refocusing of its dealer network by promoting the importance of building and maintaining local business accounts. Perhaps this was an admission that eyes had been taken off the ball.

In a nutshell, the scheme provides SMEs with leasing options across Volkswagen's range with quotes accessed through its website. The service is also supported by a national call centre with cars and related services supplied by the local dealer.

The scheme's not mandatory but, tellingly, most of Volkswagen's 215 dealers have already signed up for it. Previously fleet business had been channelled through 63 accredited dealers, who tended to service the local needs of the bigger fleets.

‘We realised we were not looking after the SMEs,’ admitted Rob Taylor, Volkswagen Fleet Services' customer relationship manager.

‘It’s estimated that around one million SMEs exist across the UK. Even if an organisation only has a handful of cars, it’s important that they are funded and managed correctly in order to ensure spend remains within budget and administration at a manageable level,’ he said.

‘The programme was opened to the entire network and we've had about 200 dealers joining up. It has given us a fantastic

geographical representation,’ he told me.

Each participating dealer has nominated a couple of specialists in their teams for training and to concentrate on delivering sales and services to SMEs. None of this is particularly ground breaking but it does show a laudable joined up approach to addressing a local issue. SMEs need to be able to source cars and services in a painless and cost-effective manner. They don't want to be bogged down in the minutiae of complex funding deals and if they can do this all through their local dealer then everyone is happy.

‘SMEs have always been important to us but now it's a case of our network providing the right tools and offers and bringing them all together in one place. It's a programme run at a national level through a call centre and website and delivered at a local level. It all needed to be pulled together as there were different things happening at different places; we didn't have a unified programme,’ said Taylor.

I asked Taylor how he rated dealers at servicing local fleet requirements, after all they are the final part of the jigsaw and as franchisees they represent the brand while not technically being part of it.

‘When it comes to customer service you will always get, I think, the fantastic and the opportunity to be better. On the whole they have to be the best place to service local fleet needs. It's all about the specialist knowledge and specialist focus.

‘The participating dealers have recognised this as an opportunity to not just grow incremental servicing and sales but also grow their business by building long term relationships with local business partners.

We're very conscious of growing these relationships for the long term benefit of our customers and retailers,’ he said.

It’s what marketing types like to call joined-up thinking.

I am Giulietta.

I am £289 per month,* business users only.

SAFETY

MODELS

A L FA T C T

Awarded a five-star Euro NCAP rating.

The safest car in its class†.

Both the petrol 1.4 TB MultiAir 170 bhp ALFA TCT Lusso and the 2.0 diesel 170bhp ALFA TCT Lusso are available at £289 per month.

Dual-clutch semi automatic transmission allowing you to make smoother gear changes without losing acceleration.

V I S I T W W W . A L FA R O M E O. C O. U K / C O R P O R AT E O R C A L L 0 8 4 4 6 6 2 3 6 2 8 F O R M O R E I N F O R M AT I O N .

W I T H O U T H E A R T W E W O U L D B E M E R E M A C H I N E S.

alfaromeouk

@alfaromeouk

Model shown Alfa Giulietta 1.4 TB MultiAir 170 bhp ALFA TCT Lusso at £22,345 OTR including Ghiaccio White special paint at £490 including VAT. Range of official fuel consumption figures for the Alfa Giulietta range: Urban 26.2 – 53.3 mpg (10.8 – 5.3 I/100km); Extra Urban 48.7 – 76.3 mpg (5.8 – 3.7 I/100km); Combined 37.2 – 64.2 mpg (7.6 – 4.4 I/100km). CO2 emissions 177 – 114 g/km. †Source Euro NCAP rating. *Above rental based on Alfa Giulietta 1.4 TB MultiAir 170 bhp ALFA TCT Lusso including Ghiaccio White special paint at £490 on Contract Hire payment profile of 3 rentals in advance (equivalent to £867) followed by 35

monthly rentals of £289. Rentals shown above exclude VAT and maintenance. Rentals are subject to VAT at statutory rate based on 10,000 miles per annum. Excess mileage charges apply. Vehicles must be registered with Alfa Romeo Contract Hire by 30th September 2012. Offer subject to status. A guarantee/indemnity may be required. Offer correct at time of going to press and may be varied or withdrawn at any time. Subject to availability. Alfa Romeo Contract Hire, 240 Bath Road, Slough SL1 4DX.

COMMENT

Rental is driving me mental The Insider Our tame fleet manager is having a few problems with rental firms, and he’s not happy….

’We’ve had a couple of instances where the car wasn’t available’

16

fleetworldgroup.co.uk

Recently we discovered our drivers squeezing into smaller rental cars than due, within our specified grade.

Used to a 1.6-litre hatchback, we are now seeing 1.2-litre superminis. Our policy allows a mid-size engine hatchback capable of taking four adults on a motorway run, and a 1.2 really is unsuitable. The result is that drivers requested a larger group car, which in turn led to increased tariffs. So, have the rental companies officially revised their bandings, or is this just a try-on – see if the customer notices we’ve supplied a lower grade car at the higher price?

That’s assuming the booked car is available at all. We’ve had a couple of instances where the car wasn’t available when required. Awaiting a Friday afternoon delivery which was late, our driver rang, to be told they didn’t have a car.

Enraged not to have had the courtesy of a phone call, he hot-footed it to the depot to be faced by rows and rows of idle cars – and equally idle staff, it would seem. He got his car.

Within a couple of weeks the same depot (we must be slow learners) failed to supply again, this time on a Saturday morning, but promised a car for later. As the driver lived near enough to collect, and had been told not to incur collection and delivery charges, he asked them to phone when the car was ready.

They didn’t, but turned up at his front doorstep very late in the day with a car, just as he was panicking about how he’d get to Monday’s training course. Great service, you might think, and it was – except for the £30 Sunday delivery charge they stuck on the bill!

Opening hours are another bugbear. After 4pm or so, you may as well forget it. Most service businesses are now open 24/7 and while it’s perhaps a bit extreme for rental companies, other than airport locations, maybe 6.30am to 8.00pm would be more realistic?

And who hasn’t experienced being recharged for damage not incurred by them? A few years ago, a large rental company who should have known better, were claiming for scratches under the front spoiler on every UK hire we had, as a matter of course. When the same thing happened to me in Corsica, I knew they had a problem.

Our drivers are a pretty honest bunch and if they’ve damaged a car, they’ll usually phone me and admit it. So receiving notifications of damage, sometimes months after the hire, is a real wind-up. A couple of times, when I’ve cross-checked registrations and dates, we’ve been sent bills for cars we didn’t even hire – with loss of use charges on top, of course.

Then there’s the refuelling charge at £1.90 per litre. I’m sure the idea is to discourage people from returning cars empty, but if my driver has refilled the car and we are then charged for the distance from his home to the rental depot, that’s a sting. So it was a 20 mile trip – other hires will be located much nearer the depot and the overall daily tariff should reflect that.

I don’t much like the daily levy for hiring from an airport either – we were badly stung when we provided an overseas employee with a hire car here for six weeks; and were charged the levy for all 42 days.

We quickly found a way of circumventing the problem, but the hire company lost our trust because their charges weren’t clear.

No doubt it’s a reflection of market competition that pricing is so crucial but invoices contain so many unexpected and unbudgeted extras. And that’s where rental companies could do much to improve their service offering. They’ve come a long way and I believe they are listening to their customers, but in my book they still get ”could do better” on their school report.

£129.* Your monthly out and about goings.

The new Fiat Panda. Available from just £129 a month for business users only. And with exceptionally low fuel consumption and fewer CO2 emissions across the Panda range, what's not to like?

Visit fiat.co.uk/fleet for more info.

for

people fiat.co.uk

Fiat, the car brand with the lowest average CO2 emissions in Europe†. Fuel consumption figures for the new Fiat Panda range in mpg (l/100km): Urban 42.2 (6.7) - 60.1 (4.7); Extra Urban 65.7 (4.3) - 80.7 (3.5); Combined 54.3 (5.2) - 72.4 (3.9). CO2 emissions 120 - 95g/km.*Business

users only. Above rentals based on Panda 1.2 Pop on Contract Hire payment profile of 3 rentals in advance (equivalent to £387) followed by 35 monthly rentals of £129. All rentals exclude VAT and maintenance.

Based on 10,000 miles per annum. Excess mileage charges apply. Vehicles must be registered with Fiat Contract Hire before 30th September 2012. Offer subject to status, a guarantee and/or indemnity may be required. Fiat Contract Hire, 240 Bath Road, Slough, SL1 4DX. †Source: JATO Dynamics. Based on volume-weighted average CO2 emissions (g/km) of the best selling brands in Europe, full year 2011.

ALD Automotive • Shell FuelSave 2012

Four Pillars Hotel > Cotswold Water Park Wednesday 3rd October – Thursday 4th October 2012 The MPG Marathon is the UK’s longest-running and best-known economy driving event. Featuring a wide range of cars and vans, the MPG Marathon is a demonstration of how both the vehicle itself, and the person behind the wheel, can make a massive difference to an organisation’s fuel costs and carbon emissions.

Now in its twelfth year, the MPG Marathon generates a great deal of media coverage in regional, national and even international press and provides the perfect showcase for new technology and well-honed driving skills. Previous competitors include fleet managers, celebrities, academics, motoring journalists, professional drivers and senior figures in the automotive industry.

This year, the MPG Marathon is taking place on the 3rd and 4th October, based at the Four Pillars Hotel in South Cerney, just outside Cirencester.

Competitors will push for the best economy over two days, on a route covering around 380 miles of British countryside, including A and B roads and motorway driving. Day 1 takes drivers west into South Wales, while day 2 circumnavigates the Cotswolds and South Midlands.

Vehicles are split into classes depending on CO2 emissions, with a maximum CO2 limit for passenger cars of 160g/km introduced this year for the first time. Awards are given for the most economical drivers, as well as the most efficient cars and vans.

The winners will be awarded at a presentation held on the 10th October at the Royal Automobile Club in Pall Mall, London.

For more information on taking part in the MPG Marathon, go to www.mpgmarathon.com, call 01727 739160 or email mpgmarathon@fleetworldgroup.co.uk

20

fleetworldgroup.co.uk

HOW DO I ENTER? If you want to enter this year’s MPG Marathon, you can request a place by completing the registration form on the event website – www.mpgmarathon.com.

We give priority to entrants working for fleet companies and those with ecodriving experience, but there are plenty of opportunities for others to get involved.

HOW DO WE MEASURE MPG? There are many devices, including factory-fitted items, which can measure fuel economy and many of them are very accurate. But for the sake of consistency, the MPG Marathon is based on a brim-to-brim measurement of how much fuel is used over the duration of the course.

With modern fuel tanks coming in numerous shapes and sizes, each car’s tank is brimmed with fuel with one side jacked up to ensure that there is no air trapped anywhere inside the tank. Competitors can check fuel levels before the event, after which time the fuel cap is sealed for the duration to avoid en-route top-ups.

Prizes will be awarded for the best overall fuel economy and the best percentage increase compared to the manufacturer’s figures, both in each vehicle class and overall for the event.

THE BENEFITS OF SMARTER DRIVING THE MPG MARATHON IS NOT JUST ABOUT IMPROVING FUEL ECONOMY. Reduced fuel costs Petrol and diesel prices have reached new records recently, and wasted fuel is no longer something businesses and private drivers can ignore. The MPG Marathon proves that not only is car choice important, but that correct driver training can help save substantial fuel costs, too.

Reduced environmental impact Never have companies had a more apparent responsibility to do their bit to save the environment. No matter how big or small your fleet, greener driving means instant, cost-free reductions in carbon emissions, in turn helping to slash the environmental impact of day-to-day business.

Reduced maintenance Gentle driving has benefits that go beyond simply reducing fuel consumption.

Smoother drivers also cause less wear and tear on vehicles, meaning they spend less time off the road for maintenance and, in turn, cost less to run.

Improved safety Eco-conscious driving is also safer. Erratic drivers don’t only use more fuel, they’re more prone to accidents, too. The MPG Marathon encourages gentle, considerate and smooth driving, contributing to a safer fleet, lower insurance costs and less chance of having cars out of action for repairs.

Reduction in stress levels More relaxed driving also has benefits for employee health. Erratic driving causes stress levels to rise, which can affect concentration, make drivers tired and increase the risk of heart problems. Encourage drivers to slow down and take it easy on the road, and you’ll have a happier, healthier and more productive fleet.

July 2012

21

DRIVEN

Mercedes-Benz A-Class The new A-Class will ensure the fleet sector is never the same again, says Steve Moody.

SECTOR Hatchback PRICE £18,945 – £28,775 FUEL 74.3 – 44.1mpg CO2 98 – 148g/km You might soon feel like an onlooker at Trafalgar, Blenheim or Agincourt, or any other great battle fought through history, because it’s about to kick off in the fleet market – big time.

The protagonist? The new Mercedes-Benz A-Class, a car that firmly establishes the German brand at the heart of the fleet market, a heart that has been smitten with premium brand offers from BMW and Audi in recent years, while the so-called volume carmakers squabble over an increasingly smaller and less profitable share.

It’s not about to get any easier for them, because this new A-Class is the best lower medium car on sale today, by nearly any measure you apply, and Mercedes have huge ambitions in fleet with this car.

Best to start with the objective qualifications. Three diesel engines achieve CO2 levels from as low as 98g/km. The 136bhp 200 CDI hits 114g/km with the excellent seven speed twin clutch auto box, making it a strong fleet contender.

Pricing is incredibly competitive. The petrol 180 BlueEFFICIENCY starts from only £18,945, while the diesels start from £21,200, around the level of the new A3, if not better and barely above that of a Focus or Astra. I’ll bet the residuals are not at the same level though.

Spec-wise, all come with Bluetooth, iPod

24

fleetworldgroup.co.uk

compatibility and colour display screen, while further up the range, models such as Sport and AMG Sport are beautifully tailored to corporate buyers, with sharp spoked alloys, brilliant iPod interactivity which turns the car’s screen into your phone, and various funky sports seats and body glitter.

The glitter: the new A-Class is a striking thing. It might be a little generic from the back, but the sharky nose and sculpted sides ooze class and sporting intent, while the cabin has some wonderful effects, such as the carbon fibre weave-style dash and large X-wing fighter air vents. The designers say it is based on the magical SLS AMG. It might be, but in my view, the cabin is better than the superMerc. Cool colours, clean lines and sophisticated style: the cabin is a corporate up-and-comer’s dream.

I drove a matt grey version with AMG detailing and auto box, which would be roughly £26-27,000 on the road. It looks stunning, and attracted huge amounts of attention. It also drives decently, being front wheel drive yet having a nice balance to it, and a fairly compliant ride too. The engines are not quite the accelerative match of the BMW 1 Series, but the whole experience is better, more premium, in feel.

Mercedes-Benz sales director Mike Whittington has been trying to make the brand

more accessible, more friendly, and let’s face it, less snobby. It’s not just about golf-clubbing old men in fat saloons any more, and the A-Class is the epitome of that. For a hatchback, it is as cool as they come, and that means it will attract brand conscious professional men and women by the bucketload.

Whittington reckons they could do 25,000 units a year (somewhere around what Audi does with the A3) if they can get enough, and combined with the good work being done in the corporate department to make Mercedes-Benz more fleet-friendly, that seems wholly reasonable. Perhaps more than half of that number will go to fleets.

Things wrong with it? Well, at the top end it gets fairly expensive, and as I said before, the back end is not as distinctive as the rest of it, while the white dashboard option looks like it would get scuffed up. I’m struggling to think of some negatives, if I’m honest.

verdict A new chapter in the fleet market has been written with the A-Class, because it signals that Mercedes-Benz is now a major, major player. And just as Audi and BMW transformed the sector, the A-Class will take even more sales away from the middle ground. It could be a massacre.

Toyota Prius+ Seven-seat Prius is an innovative way to retain hybrid devotee customers, reckons Alex Grant.

SECTOR Compact MPV PRICE £26,195 – £29,495 FUEL 64.2 – 68.9mpg CO2 96 – 101g/km Three generations into the Prius’s life cycle, and hybrid technology is firmly established both in the retail and fleet sectors. The Prius itself has matured too, from ecooddball to a slightly upwardly-stretched coupe-like thing that’s refined and solid, if not particularly exciting to drive.

So if you consider the Prius purely for its rational benefits – reliability, practicality and fuel efficiency, boosted further by the environmental credibility of not churning out diesel fumes – then there’ll be no real surprises from this seven seat version. It’s a Prius and a bit: larger load space, extra headroom and a couple more seats which fold up out of the boot floor, and it’s noticeably slower as a result.

The MPV sector is ruled by the diesel engine – torque and fuel efficiency are vital for hauling a large family around. So the Prius+ is a unique proposition with its hybrid drive, taking the MPV sector down to double-digit CO2 emissions in its most popular T4 trim level – expected to account for 80% of UK sales.

With low tax, high efficiency and congestion charge exemption (at least for the near future) this is predicted to be an attractive fleet car. But to work, it needs to pull off the capacious talents of an MPV with the tech-rich eco appeal of a Prius hatchback.

Globally, scaled-up Prius comes in two

forms which are essentially the same car.

Prius V, sold in America and alongside the Prius+ in Japan, is the same vehicle but with a nickel metal hydride battery under the boot floor. Prius+ tucks a lighter, but more than twice as expensive, lithium ion battery into the centre console between the front seats giving space for a third row in the boot.

Some of the packaging differences are evident. The Prius+ has a cubby hole suitable only for a DVD case between the front seats and the boot floor is level with the top of the bumper. There’s a small compartment underneath to hide valuables in – presumably a redundant space where Prius V has its battery.

The gains in boot space from shifting the battery up front are what allowed Toyota to get the mechanism for the third row mounted as low as possible, and Prius+ was considered to be a gap-filler for the European market. It leaves stacks of cabin space, too, with plentiful head and leg room in the centre row and individuallyadjustable seats to offer more space for baby seats and broad shoulders.

But the third row is really for children only.

The raked roofline offers minimal headroom, and the middle row doesn’t return to its previous position after tipping forward to access. There’s enough room to have the

middle row slid forward and have space for adults in both rear rows, but the sloping footwells in the back don’t offer a comfortable seating position for adult occupants.

It’s a flexible setup, though. All except the driver’s seat can be folded flat with a simple button, and although none are removable this does create a sizeable, level load area. With loads of legroom in the middle row you could almost view this as a more luxurious Prius with estate-like load capacity and the useful option of some emergency-use seating when needed.

Toyota is being conservative with its sales estimates for the Prius+, at just over 2,000 units in its first full year, offering tax-conscious, eco-friendly motoring for larger families. But, rather like the first Prius, it’s really a step towards what should become a more refined, capable product in the next generations.

verdict Prius+ is entirely a head over heart purchase, but it’s really a car that’ll enjoy its biggest demand among Prius hatchback owners wanting to upscale without defecting to a non-hybrid powertrain. Clever packaging, respectable practicality and low running costs will please the early adopters.

July 2012

25

DRIVEN

Peugeot 508 HYbrid4 Alex Grant finds out if Peugeot’s most efficient 508 lives up to its lofty claims.

SECTOR Upper Medium PRICE £31,450 FUEL 78.5mpg CO2 95g/km While Citroën has debuted PSA’s Hybrid4 diesel-electric drivetrain as a high performance, four-wheel drive option for the executive class DS5, Peugeot’s approach has been to highlight the technology’s off-road abilities with the 3008 crossover and Audi Allroad-esque 508 RXH. The 508 HYbrid4 breaks that mould. It uses the same 161bhp diesel engine and 36bhp electric rear axle as the RXH, but without the chunky bodywork cladding and raised ride height of its closest relation. The emphasis is on making this the most efficient 508, and with one of the highest power outputs, too.

A combination of 95g/km CO2, four-wheel drive and high efficiency makes this difficult to match in the D-segment and an attractive fleet option, helped by the 3% BiK surcharge for diesel hybrids being removed earlier this year. But it’s a shame that it couldn’t have withheld just one more gram of CO2, as this would’ve kept it in the second lowest banding when the BiK changes announced in the latest budget come into effect in 2016.

Hybrid4 is a clever drivetrain, and neatly packaged into the 508 saloon. The motor and battery are hidden under the boot floor, and the only visual clue is a discreet grille badge. Interior changes are as subtle, with a hybrid display in the instrument binnacle and navigation screen and a power

26

fleetworldgroup.co.uk

gauge which replaces the rev counter.

The only downside to the packaging is the boot becomes very shallow as a result.

Drivers carrying deep boxes, for example, will have to put them on the back seat instead.

UK buyers will get a single trim level, based on the 508 Allure. It’s well-equipped, with keyless entry and start, electrically adjustable heated leather front seats and an intuitive infotainment system with satellite navigation and Bluetooth.

There’s little to get used to. The car starts in its most efficient Auto mode, which uses diesel and electric power to return the most miserly fuel efficiency available, and it drives like a conventional automatic car with an overactive Start/Stop system.

Economy can be boosted further by switching to ZEV pure electric mode at low speeds depending on battery charge, ideal for clawing back extra range at roundabouts.

The remaining 4WD and Power modes combine both power sources for an electric ”boost” function or to provide extra grip as required. Those familiar with PSA’s ponderous electronically-operated manual will be glad to hear it’s much better here, with the electric motor cutting in to smooth the gaps between gear changes.

But, with an additional 140kg on board it’s not fast even with the extra power.

Performance is brisk, but this is outpaced by the lesser-powered non-hybrid diesel.

And that’s not its biggest problem.

At motorway speeds, the motor and battery are dead weight. There’s no ability to decouple the engine, as some hybrids can, at high speeds to ”sail” on electric power and this hurts economy. Drivers expecting close to the claimed 78.5mpg could feel shortchanged at the more realistic mid 50s to the gallon offered on long distance trips – not worlds apart from the 2.0 HDI 163.

There’s a knack to finding the best efficiency. Drive in ZEV mode as often as possible, use AWD to let the electric motor assist the diesel engine at high speeds and gentle driving will give an uplift in economy.

But with plentiful rivals on the way, it'll be interesting to see what Peugeot introduces in a mid-life refresh to make the system more valuable for motorway drivers.

verdict The 508 Hybrid4 saloon may struggle to achieve its on-paper efficiency figures, but it offers gutsy performance and grip for the UK’s unpredictable winters without being a big polluter or expensive to tax. Drivers regularly using long stretches of motorway may find the 2.0 HDI 163 a more suitable option.

DRIVEN

Lexus GS Better all round, new GS is not to be overlooked, reckons Alex Grant.

SECTOR Large executive PRICE £32,995-£50,995 FUEL 31.7-46.3mpg CO2 141-207g/km Having had a near-monopoly over the executive hybrid market in Europe for six years, Lexus suddenly has a strong pack muscling in on its patch. Not only has Infiniti brought its M35h to market recently, but the German premium brands will all have similar models on sale in the near future.

The old GS, with its blobby, un-European styling and hybrid-only range, couldn’t quite cut it against the tactile plastics, sharp aesthetics and low-CO2 diesel engines of the German rivals. But it seems Lexus has learned from those mistakes, because the new one looks and feels much more European and comes with two powertrains – the GS 450h hybrid and GS 250 petrol.

Not that the latter is due for huge things in the UK market. Powered by a very smooth 2.5-litre V6 petrol engine, its unremarkable 206bhp and 207g/km CO2 will make this a tough sell in the UK. It emits a wonderful, guttural snarl under full throttle, but just doesn’t feel fast enough to warrant its thirst for fuel. In a segment where downsized, forced induction petrol and diesel engines are firmly established, the GS 250 will slip off the radar for most of the corporate sector.

But the GS 450h is a seriously impressive machine. Where its predecessor returned 36.7mpg and emitted 179g/km CO2, the new car combines a 3.5-litre V6 petrol with

28

fleetworldgroup.co.uk

Lexus’s latest hybrid drive, bringing fuel consumption and CO2 emissions down to a much more palatable 46.3mpg and 141g/km in its most efficient trim – the best figures for a petrol hybrid in this class.

It’s a good car to drive, too. It’s predictably not as sharp as a 5 Series, despite Lexus’s strides to boost driver involvement, but it rides beautifully, it’s incredibly refined and the powertrain offers up 286bhp which makes for brisk straight-line acceleration and plentiful thrust at just about any speed.

But even with so much power on tap, this is more of a cruiser than a sports saloon and the CVT gearbox is an acquired taste. There are steering wheel paddles to shift through the ”ratios”, but this gives the engine a tendency to sound like it’s in the wrong gear. It’s nothing existing Toyota and Lexus hybrid owners won’t be used to, but doesn’t give the driver a feeling of really being in tune with what’s going on under the bonnet.

The only other sacrifice for the hybrid is boot space. There’s a huge, wide opening but the battery is mounted upright behind the rear bench, leaving a shallow load area front to back. Where rivals have fitted the hybrid battery under the boot floor, or in the engine bay, to retain boot space, the GS’s layout could make trips to Ikea tricky.

But the rest shapes up well. New GS

looks distinctive and aggressive and the interior is a giant leap forward in quality, awash with soft, stitched leather and aluminium. Moisturising, energy-efficient air conditioning, a powerful audio system and the largest display screen in its class should please Lexus’s technology-loving customers and adds to the premium feel.

It’s also easier to understand the new trim range. Available for both engines, Luxury and F-Sport grades feature options befitting their naming, while the GS 250 is offered as an entry-level SE and the GS 450h gains a range-topping Premier version.

But for all the improvements, what the GS really needs is the small-displacement hybrid version due next year. Likely to use a fourcylinder engine and claimed to offer dieselrivalling CO2 emissions, if it’s priced correctly it’s the model which could just put this sublime executive car firmly on the corporate map.

verdict The GS 450h might not be the most efficient in its class, but its improved styling, better materials and vast reduction on consumption and CO2 emissions will at least allow it to compete. But to really take on its biggest rivals, the small hybrid can’t come soon enough.

DRIVEN

SEAT Ibiza Mid-life sharpening ups appeal for the popular Ibiza, says Alex Grant.

SECTOR Supermini PRICE £9,995 – £16,840 FUEL 47.9 – 80.7mpg CO2 92 – 139g/km Ibiza is SEAT’s biggest seller, and justifiably so. It’s the purest representation of that sporty, affordable SEAT character the brand wants to express, undercutting the Polo and more exciting than the Fabia.

SEAT now has its sights set on the Chinese market, and this refreshed Ibiza

will be an important part of that campaign. It’s gained a few subtle bodywork revisions and an altered range, looking near identical to the 2007 IBZ concept car and ready to sit alongside new and forthcoming models without looking dated.

IBZ debuted the Ibiza ST, and this has

Mercedes-Benz SLK 250 CDI BlueEFFICIENCY Diesel SLK is great news for user-choosers, reckons Alex Grant.

SECTOR Sports car PRICE £32,255 FUEL 56.5mpg CO2 132g/km On the face of it, you could argue that regardless of the efficiency on offer, this particular SLK has two things enthusiasts wouldn't want in a sports car, an automatic gearbox and, for the first time, a diesel engine.

But it's great news for user-choosers.

This is the most efficient Mercedes-Benz

sports car to date, returning 14 miles per ever-more expensive gallon of fuel – more than the petrol version can manage – with no loss in performance.

Under the bonnet is the same 2.2-litre four-cylinder engine now fitted to most of the Mercedes-Benz portfolio. Deservedly

had the most attention. The range is now almost identical to the hatchback, which means buyers can choose the ST in sporty FR spec with larger wheels and redstitched sports seats – a model that lets it live up to the name Sport Tourer.

Little has changed inside: good quality plastics positioning this somewhere between Fabia and Polo on the tactility scale, and even the basic models manage to avoid feeling cheap.

Engines are almost identical to the outgoing car, comprising of three and four cylinder petrol and diesel models ranging from the 60bhp 1.2-litre petrol to the 148bhp 1.4 TSI – the most powerful model until the Cupra arrives next year.

CO2 emissions are as low as 92g/km for the Ecomotive.

But the stars are found in the mid-range.

The 103bhp 1.2 TSI petrol introduced last year is a lively little engine that suits the Ibiza perfectly, and the equivalent 1.6 TDICR is commendable too. It’s just a shame there’s no sixth gear on either to boost motorway refinement and efficiency.

Ibiza is claimed to retain 38% of buyers, and it’s growing in fleet. Broader engine and trim choice and pin-sharp styling are unlikely to alter its trajectory, making this a worthy part of SEAT’s global ambitions.

so, because at 202bhp it gives the SLK plentiful muscle for overtaking, yet easily achieves over 50mpg.

Most importantly, though, it's also quiet.

Diesel clatter ruins open-top motoring, but the SLK quickly quietens down after a cold start to a gruff rumble under load, and is near silent on the motorway. It's not a noise you'll long to hear, but it's unobtrusive enough to ignore.

The SLK costs slightly more than its closest competitor, the TT 2.0 TDI, but offers more power and almost 10% better efficiency than the Audi. Strangely, though, you'll pay less for the diesel SLK than for the equivalent petrol version.

But while it's an enjoyable drive, the SLK isn't a particularly sporty sports car.

Although neither short of grip nor straight line performance, it feels set up to cover long-distance journeys in comfort rather than to set finger tips tingling on a spirited drive, not helped by the low-revving engine and slow automatic gearbox.

Don't view that as a dealbreaker though.

The SLK is an excellent cruiser which rides rough surfaces impeccably even on large wheels, and it's still sharp enough to be entertaining when the mood takes you. A great real-world compromise between head and heart appeal.

July 2012

29

FEATURE Arval Corporate Vehicle Observatory

A FLEET OBSERVATION Arval has commissioned the independent Corporate Vehicle Observatory report to find out exactly what’s going on in the UK fleet market. Steve Moody picks out the highlights.

COST PRESSURE Costs are rising, but so is fleet size The majority of UK fleet professionals expect cost pressures to increase this year. But while the pressure on company fleet budgets are expected to be squeezed, the size of their vehicle fleet is likely to increase – a view most prominent with fleet professionals at companies with 100+ employees. This demonstrates a focus on managing and reducing fleet costs, but not by cutting the number of vehicles.

Mike Waters, senior insight & consultancy manager at Arval said: ‘Given the current economic conditions in the UK, and around the world, it really is no surprise that fleet operators expect cost pressures to increase over the course of the year. However, it is reassuring that they do not plan to respond to this by cutting the size of the vehicle fleet.

‘The reality is that companies across the UK rely on their vehicles to operate irrespective of the economic conditions. So while cost pressure creates a focus on the best ways to manage fleet spend, it often shouldn’t translate into a reduction in fleet size.’

Table 1: Cost pressure in fleets, this year % who think that this year, cost pressure on the fleet will…

Decrease

Increase

6%

49%

12%

48%

6%

52%

6%

74%

TELEMATICS Surprisingly large number of firms looking at telematics Research from the report shows that a third of large companies (100+ employees) are currently using telematics systems, with the major driver behind it being to track their vehicles.

While telematics are used much less by smaller companies, UK adoption is higher than in other European countries while further growth is expected this year.

Of the systems being used by the larger fleets, reducing fuel consumption, monitoring unauthorised use of a vehicle and monitoring driver behaviour are all significant reasons for use.

% who think the total number of vehicles on their company fleet will...

Decrease +

+

4% 16%

Increase

21% 48%

33% of large fleets plan to implement telematics in the next three years.

KEY

32

Companies with less than 10 employees

Companies with 100 to 999 employees

Companies with 10 to 99 employees

Companies with 1,000+ employees

fleetworldgroup.co.uk

SAFE DRIVING Majority of businesses believe safe driving is their responsibilty 46% of businesses with less than 100 employees and 63% of companies larger than that, believe they share responsibility for safe driving behaviour, rather than putting all of the emphasis on the driver. In the UK this attitude is particularly apparent, and represents greater corporate ownership of driver behaviour than in other European countries.

There are also a well-defined set of fleet practises in place to support this ideology – with significantly more than half of companies prohibiting the use of hands-free mobile phones (which isn’t a legal requirement) and more than a third having policy’s in place to restrict unsafe travel such as driving home after a work party.

Around 10% of companies have even introduced driver incentives and rewards to promote safer behaviour on the roads.

Table 2: Boards in charge of decision making

33% of the largest company’s surveyed (1000+ employees) have driver training in place; as do 18% of smaller companies surveyed (sub-100 employees).

RESIDUAL VALUES Fleets believe used values will drop in second half of the year Research suggests that the majority of UK fleet professionals expect vehicle resale values to fall this year while at the same time the take-up of contract hire is expected to grow, partly as a result of this market view.

Increased certainty and a reduction in fleet risk exposure are the key drivers, for this according to the independent research from the Corporate Vehicle Observatory (CVO) Barometer.

59% of large fleets think the resale value of vehicles is likely to decrease.

THE ROLE OF MOBILITY MANAGER More firms want a specialist to take charge of all transport and mobility The role of the mobility manager is becoming a more popular one in the UK, with around a third of larger firms having such a person covering both fleet and travel.

This could encompass things like train travel, flights and taxis, alongside the normal responsibilities of a fleet manager. This trend is even stronger in other European countries Taking a holistic view of business travel is a trend that is being seen among large businesses in the UK (100+ employees). 28% of these companies incorporate a function that covers all types of employee business travel, and not just the vehicle fleet.

28% of large firms have a role that covers all types of employee business travel, including fleet.

DECISION MAKING Boards mostly in charge of policy and fleet decision-making The modern company fleet often needs to satisfy a wide variety of stakeholders and there are a breadth of disciplines involved as the ultimate fleet policy decision-maker, although the board remain the group in charge of the majority of decisions.

Arval’s Mike Waters said: ‘We would expect to see this approach within smaller companies where resource doesn’t allow for a fleet specialist, or the breadth of departments that larger companies

Top Management 48%

Administrative/ Finance Direction Fleet Director

88%

16%

Human Resources Other

2%

81%

Procurement

2% 1% 9%

2% 5% 1% 11%

41%

5% 4% 9% 18%

17%

13% 12% 15%

employ, but according to the Corporate Vehicle Observatory (CVO) Barometer, this approach is consistent across the board.’

Specifically in the UK, it shows that in the largest companies (1,000+ employees), senior management are most likely to make vehicle policy (41%). In 17% of larger companies a fleet manager or director is the key decision maker, while the procurement and HR functions play a central role in 25% of the largest companies.

In companies with 100–999 employees the finance function also plays a role, owning fleet policy decision making in 16% of cases. In the smaller companies (sub-100 employees) decision-making is dominated by senior management.

Mike Waters, added: ‘That senior management take such an active role in setting company vehicle policy and reinforces how important it is to the success of the business. The multi-disciplinary nature of decision makers is also a clear confirmation of the central role a business fleet can play in the success of the business.’

In only 17% of larger companies a fleet manager or director is the key decision maker.

ELECTRIC VEHICLES Many businesses see a role for electric vehicle in their operation The research shows that many large businesses in the UK are taking an holistic approach to mobility and the introduction of new vehicle technologies, including electric.

It shows that amongst the largest and smallest businesses, the proportion of fleet professionals feeling that electric vehicles could play a role has grown. In fact 43% of the largest companies (1,000+ employees) currently see a role for electric vehicles on their fleet – a 12% growth against the previous year.

Mike Waters at Arval said: ‘With such a broad range of vehicle variants becoming available, it is no surprise that some companies are looking closely at the composition of their fleet. Of these new technologies, electric vehicles have a high profile and in certain circumstances will be an effective option.’

43% of the largest companies currently see a role for electric vehicles on their fleet.

July 2012

33

AWARD-WINNING DS LINE A WORLDWIDE PHENOMENON COMING from a long ancestry of design-led Citroën models, New Citroën DS5 is the third addition to the awardwinning, desirable DS Line, and offers a powerful mix of performance and technology. With form closely following function, New DS5 enhances the existing DS3 supermini and DS4 high-stance 5-door coupé models in the stunning DS Line. New DS5 engine choices include a 200hp turbo petrol, efficient 115hp and 163hp HDi diesel units and the revolutionary Hybrid4 diesel-electric powertrain, with CO2 emissions from just 99g/km.

SUCH is its runaway success that two years after its launch, the three-model DS Line – consisting of DS3, DS4 and New Citroën DS5 – has already sold over 200,000 examples worldwide, with 25,000 sales in the UK alone. This incredible sales story looks set to continue as more fleets experience the benefits of New DS5...

DS LINE HONOURED BY FLEET WORLD MAGAZINE CITROËN'S stylish and distinctive DS Line – comprising of DS3, DS4 and New Citroën DS5 – has won the Road Test Editor's Award in the 2012 Fleet World Honours.

Fleet World's Motoring Editor, Alex Grant, said: ‘Taking Gallic flair to new heights, DS Line distils everything we love about Citroën's unique style and sophistication into some fantastic cars. DS3, DS4 and New Citroën DS5 prove that you don't always have to do things in a Germanic way to give drivers premium quality.’

Martin Hamill, Citroën UK Fleet Director, remarked: ‘It is fantastic to receive independent recognition of Citroën's original thinking in producing stylish and dynamic fleet cars. The success of DS Line in the 2012 Fleet World Honours underlines Citroën’s commitment to producing innovative driver’s cars.

‘DS Line's design flair, driving dynamics, comfort and the very latest Citroën diesel hybrid technology have been warmly welcomed by fleets and, in particular, fleet drivers. New Citroën DS5 Hybrid4 models deliver a unique combination of 200hp performance, zero emissions city driving, 4WD mode and exceptionally low CO2 emissions from just 99g/km.’

“DS3, DS4 AND NEW CITROËN DS5 PROVE THAT YOU DON'T ALWAYS HAVE TO DO THINGS IN A GERMANIC WAY TO GIVE DRIVERS PREMIUM QUALITY.” Fleet World's Motoring Editor, Alex Grant

NEW CITROËN DS5.

CITROËN DS4.

CITROËN DS3.

New Citroën DS5’s advanced Hybrid4 technology combines a 163hp diesel engine with a 37hp electric motor, delivering 200hp, a four-wheel drive mode, emissionfree electric power for the city and an acceleration boost function for the open road with CO2 emissions from just 99g/km.

Citroën DS4 proves there's no contradiction between sporty and purposeful, elegant and curvaceous. Starting with a spark of innovation, uniquely nonconformist, it mixes urban presence with 5-door coupé grace, luxurious quality with smart flexibility.

The first in the DS line, DS3 makes use of dynamic design, impressive performance and huge potential for personalisation. The immediate desirability from the innovative styling and finish options is only increased with the e-HDi models keeping emissions figures in sub100g/km territory.

FOR MORE INFORMATION, CALL US ON 08457 940 940 OR EMAIL FLEET@CITROENCONNECT.CO.UK

FEATURE The Used Market

VALUE FOR

MON£Y 36

fleetworldgroup.co.uk

In six months of financial turmoil, Alex Grant reflects on the changes in the UK’s smaller, but still strong used vehicle market.

The market has become polarised, with popularity attributed to desirable badges

T

he first half of 2012 has been a turbulent period for the economy, as the UK slipped into recession at the start of the year and concerns about the stability of the Eurozone continue to make headlines and hit consumer confidence.

But, surprisingly, the market for used vehicles hasn’t suffered as much as it could have done. Still feeling the aftereffects of low new car volumes during the recession and longer lifecycles from fleet

buyers, underlying problems with volume have been masked by stable values as dealers fight over good quality stock.

There’s a continued challenge coming for the remainder of the year, too. Jubilee celebrations, the Euro 2012 football championships and Olympic and Paralympic Games look set to distract buyers away from forecourts during the already quiet summer holiday period. But resurgence in consumer demand wouldn’t necessarily be a good thing.

WHAT’S PERFORMING WELL? Low stock levels means values across the board are stable but with consumer finances squeezed, the trend towards low cost motoring continues as buyers look to cut their outgoings.

Simon Henstock, UK operations director at BCA, says this isn’t necessarily favouring the latest eco-friendly models: ‘In broad terms, there’s plenty of interest in smaller, more economical cars, while the compact crossover and small SUV remains very fashionable, although these cars can look expensive compared to similar small SUVs.’ But the market has become polarised, and image is still important to buyers.

Against a struggling D-segment, the core fleet sector being hampered by a move towards increasingly car-like MPV and crossover SUV models, the Volkswagen Passat has returned strong values and high demand used – popularity attributed to its desirable badge.

The first half of 2012 has also seen strong demand for certain luxury brands. Compact executive models, particularly German brands, and coupes derived from them, are popular and high in value. Jaguar’s facelifted XF is also outpacing the previous model year by as much as £2,000 according to Richard Crosthwaite, prestige car editor at EurotaxGlass’s.

Alan Senior, head of valuation services at VIPDATA, points to the Range Rover Evoque and Audi’s Q3 and Q5 as being strong performers in the luxury segment so far this year. A lack of new vehicles means dealers are selling ex-demonstrator Evoques for nearly new money, and the compact Audi SUVs are in similar demand, he says. But with a refreshed Q5 on the way, there could be trouble looming for the outgoing car.

Evoque has shone this year in the used market

July 2012

37

“When we asked major fleet and leasing companies who they thought was the number one fleet manufacturer, the answer was unequivocal: BMW. Great products including the brilliant new 3 Series, low CO2 and strong residuals are some of the reasons for the award.

But it’s about the people too: fleets feel BMW reacts quickly, listens to their concerns and works with them better than any other manufacturer, making the complete package.”

“The new 3 Series builds on all the impressive attributes of the previous car… and then some. Still great to drive, but now with more interior space, better ride quality and a staggering range of engines that offer refinement, low CO2 and performance unmatched by any car on the market.”

“The outgoing car was still the class leader at the end of its lifecycle, and the new car continues that theme, offering fleets a saloon that does the business on whole-life costs, performance and desirability. It’s still the benchmark to which all others aspire.”

OUTPERFORMING THE If recent results are anything to go by, we’re leading our competitors at the awards ceremonies as well as on the road. At the 2012 Fleet World Honours, we’ve just picked up Fleet Manufacturer of the Year, Best New Car, Best Lower Medium Car, Best Upper Medium Car and Best Executive Car awards. Our continuing success confirms BMW as the natural fleet choice for both performance and economy across our entire range.

Not only is it hard to beat our class-leading MPG, CO2 emissions and BIK, but also our number of awards.

For more information, please visit www.bmwcorporate.co.uk or call us on 0800 777 113.

BMW Corporate Sales

“The excellent new 1 Series has established itself as a corporate favourite, and the shortcomings of the previous car have been addressed, which means a much better ride quality and more interior space. But it is the engines that really put this car in first place, delivering extremely low CO2, while the clever ECO Pro mode allows drivers to hone their fuel saving skills.”

“As an all-round business car, the new 5 Series is hard to touch. Supremely refined, with a comfortable, high quality cabin, 5 Series is a brilliant long-distance car, as well as being more enjoyable to drive than anything else in the sector. And the low CO2 Efficient Dynamics models have proved that you can have your cake and eat it.”

bmwcorporate.co.uk Tel: 0800 777 113

The Ultimate Driving Machine

COMPETITION.

Official fuel economy figures for the BMW range: Urban 14.6-62.4mpg (19.3-4.4l/100km). Extra Urban 26.2-83.1mpg (10.8-3.4l/100km). Combined 20.3-74.3mpg (13.9-3.8l/100km). CO2 emissions 325-99g/km.

BMW EfficientDynamics reduces BMW emissions without compromising performance developments and is standard across the model range.

FEATURE The Used Market

VALUE FOR MON£Y...

WHAT’S STRUGGLING? Summer demand for SUVs is traditionally slow but this year has been particularly bad for the 4x4 segment. After two harsh winters, the snow came too late in 2012 to sustain buyers’ interest and rising fuel prices have pushed them into other segments as a result.

Recent weather hasn’t stimulated demand for cabriolets and roadsters either, with heavy rain dampening buyers appetite for open-top motoring.

Alan Senior explains: ‘Cabriolet and convertible values haven’t moved up like they normally do, mainly because people look at them as nice to have. But in these times of austerity, as far as peoples’ incomes, they want something that’ll do another job as well as pleasure. So there are more cabriolets on the market, and that’s an area that’ll suffer this year.’

An increasingly diverse market for family cars has hurt the traditional Dsegment, though. A core part of ex-fleet stock, these are losing out on demand compared to the emerging and growing compact SUV sectors.

Continued rises in fuel prices aren’t helping less efficient vehicles. According to figures from the AA, the price of oil per barrel peaked at $125 per barrel in March and has since declined 22% to $97 per barrel in May. But forecourt prices have been slow to react, with average UK petrol and diesel prices peaking at 142.5 and 147.9 pence per litre respectively in April, falling back to 133.8 and 139.3 pence per litre in June, a drop of 6%. Despite this drop, a nearfuture return to stability for less efficient cars isn’t expected.

Recent weather hasn’t helped convertible demand

40

fleetworldgroup.co.uk

The used market is feeling the effects of the recent decline in new car sales

SUPPLY AND DEMAND The used market is feeling the effects of the decline in new car sales three and four years ago, resulting in a continuing restricted volume of fresh, low-mileage stock over the last 18 months. This is claimed to be as much a 25% lower than pre-recession levels.

Mike Hind, communications manager at CAP, says: ‘Trade confidence is helped by the absence of over-supply. This has also led to increased competition in the open market for used cars with good retail appeal because 2012 has also seen many franchise dealers actively buying stock due to a shortage of part exchange business.

‘Although it is commonly said that smaller, more economical cars are favoured in poor economic circumstances the truth is that they always are. The figures show, if anything, that it is not economic variables which influence in today’s market but the simple balance of supply and demand.’

This shortage continues to favour used values. BCA has reported a two-year high for average fleet and lease stock values in May and higher than 2010 and 2011 monthly figures throughout the first half of the 2012.

Good quality vehicles are elusive, and the

average age and mileage of fleet stock coming to market has increased year on year.

So has their values – although average age and mileage of fleet and leasing vehicles sold in May 2012 had increased 0.6% and 1.7% respectively year on year, average prices were 5.3% higher compared to the same month in 2011 and closer to CAP figures too.

But Richard Crosthwaite believes this is making life tough for dealers: ‘Consumer confidence remains low, and so retail asking prices are not seeing the stability that trade prices saw of late. So margins have fallen.’

Alan Senior says longer life cycles have also made it slower to defleet vehicles. With more mileage covered these are taking longer to bring back to ready-to-retail condition, with others beyond the point where it is financially viable to do so.

‘There’s not a great deal of movement in guide values,’ he says. ‘Consumer confidence usually pushes values down, but the models that are out there are hard to find.

It’s probably a good job the market doesn’t pick up. If suddenly consumers found money to buy cars they’d realise the supply chain was in a bad state at the moment.’

The New Consumer Guide to Choosing a Vehicle Tracking Provider Get Your Free Copy Now!

WHAT DO CONSUMERS WANT? According to figures from GfK, consumer confidence dipped during March and April in line with the troubles in Greece and Italy. Although it rallied slightly in May, those surveyed said they were less likely to make large purchases than they were at the same point during 2011, reporting a worse personal financial situation for the previous 12 months and for the next 12 months than they did last May. The result is consumers are buying based on financial reasons above all others, says Simon Henstock. BCA’s most recent Used Car Market Report says the most important factors for choosing a used car were improved fuel consumption (27%), lower CO2 (19%) and getting the best price (18%).

Consumer Confidence Jan Feb Mar Apr -29 -31 -31 -29

This a free educational service provided by Chris McClellan, RAM Tracking 7 common myths and misconceptions about vehicle tracking The 13 costly dangers of choosing the wrong vehicle tracking provider Our clients 10 must know tips when buying a vehicle tracking solution ;OL KPɈ LYLUJL IL[^LLU WYPJL ]HS\L 10 steps to dramatically increase your productivity with vehicle tracking

May -29

8 steps to slash your fuel bills using vehicle tracking

Source: GfK NOP Consumer Confidence Index Score

6 steps to radically improve your customer service

SECTOR BY SECTOR DEPRECIATION Adjusted to factor out new models and plate changes, the following CAP-supplied figures show asset depreciation from Q1 to Q2 of 2012 compared to 2011. The values are reset at 100 at the end of March, and compared to the same figures at the end of June.

Depreciation across the market, even for the weakest sectors, is slower this year than it was last year with the usual seasonal uplift in open-top vehicles. Notable for its stability this year is the luxury executive sector, likely due to being a segment of the market where buyers are less affected by economic uncertainty.

Sector 4x4 City Car Convertible Coupe Cabriolet Executive Lower Medium Luxury Executive Mini MPV MPV Small Executive Sports Supermini Upper Medium

Q2 2012 92.1 95.3 104.1 103.5 95.8 94.8 103.0 94.3 95.8 96.1 97.7 95.7 94.1

Call 0845 154 7679 or visit www.ramtracking.com to get your free guide

Q2 2011 88.1 93.9 99.5 100.3 90.3 90.2 91.8 91.6 90.3 89.2 92.4 93.3 88.7

Our fuel bill was over £6000 a month... using RAM it’s down to £2200.

A 63% reduction... simply amazing!

Dave Luck Ltd - Decorators (21 vans)

Get in touch today

0845 154 7679

Source: CAP

www.ramtracking.com

July 2012

41

FEATURE The Used Market

Diesel supply could be outstripping demand, says BCA

HOT...

White No longer ’60 day white’, the colour is booming in popularity. Values are 5% above the average for a used vehicle.

Jaguar XF Last year’s substantial facelift has put a £2,000 price difference between the new and old style cars at the same age. And the gap is widening.

Ready to Retail

D

espite an average price premium of £1,500 over a petrol vehicle, figures from BCA have revealed diesel vehicles retain less of their value over a 40-month lifecycle and the uptake from retail customers isn’t as strong as it is for fleets.

Diesels represent over 50% of all new vehicles sold in the UK, and the figure is rising.

The appetite from the corporate market is strong - two thirds of diesel sales (644,000 vehicles) last year were sold in the business, fleet and contract hire sector, a rise of 12.2% against the previous year.

But consumers don’t appear to be following suit. According to BCA’S Used Car Market Report, only 26% of UK motorists are considering a diesel vehicle for their next car.

Retail diesel sales dropped 6.3% in 2011 against 2010 figures, to 377,000, and declined from 36% to 34% of the total used market.

This could be an indication of a more money-conscious consumer, BCA’s communications director, Tony Gannon explained: ‘Clearly, fleet operators have a much greater appetite for diesels than the private sector. While diesels accounted for nearly twothirds (63.2%) of new cars sold to the 25-plus fleet sector in 2011, they represented just 36.6% of new diesels sold to private new car buyers. Many of the diesels purchased by fleets are high specification, high value executive models, but is that what motorists want – or can afford – in the current economic conditions?’

According to BCA, used diesel cars usually retain an average 25% price difference against petrols. But, when compared against manufacturer’s retail price, diesel cars retain on average 36% of their value against 39% for petrols.

The difference can be partially explained by a divergence in the mileage covered in a 40-month life cycle. Average mileage for diesels was almost twice that of petrol models, at 60,000 against 32,000. One contract hire company told Fleet World it was usually able to offer better rates on diesels because residual values were helped by perceived better fuel efficiency.

Diesel vehicles are also usually in the larger sectors – particularly D-segment models – which traditionally retain less of their value than smaller ones and where the higher mileage covered means diesel economy makes it a no-brainer against petrol versions.

Gannon added: ‘There can be little argument that the average price of a diesel car always outperforms that of a similar average petrol model. Research from BCA’s Pulse report shows there is a clear and significant difference in average value at remarketing time – rarely less than £1,200 and peaking at £1,553 in October last year, which was equivalent to a 31.9% variance.

‘However, when looking at the retained value over the typical 40 month working life of a volume fleet & lease car, the petrol car – perhaps surprisingly – is the stronger performer by some three percentage points. Of course, the mileage factor is important, but then diesels are purchased with that higher mileage factored into the overall running costs.’

42

fleetworldgroup.co.uk

Summer lull means small damage is uneconomical to repair. Cars in ready to retail condition are the ones dealers are most interested in.

NOT...

Demand Summer usually diverts attention away from car buying, and this year is looking worse than normal due to Euro 2012, the Olympics and the usual holiday rush.

Big diesels The arrival of small, powerful, efficient diesel engines is beginning to weaken demand for larger ones. Engines over 2.2 litres in capacity are struggling.

A and B-Class Mercedes-Benz has revised its small car offering, but previous generations remain a hard sell against plentiful, and more desirable, premium vehicles.

. . . n w o d e d i s p u d l r o W r u o y Vise n r u t i t s u u L ts lia a r t s u A m i e h n a M y t i n u t r o p p o O E C acific region?

P a si A d an a li ra Aust Executive for our f ie h C ew n e th prospect e ould you b who will relish the

C

the provision of e synonymous with Manheim is a nam l marketing marketing and retai re ale es ol wh e tiv innova ut the world. ive sector througho ot m to au e th in s service g eight million handles a staggerin ing more than Each year Manheim em operations, ploy its h ug ro th s cle hi used ve without doubt five continents. It is ss ro ac le op pe 0 20,00 and the company is t leader in its field ke ar m ed all riv un e th lop and deliver first continuing to deve totally focussed on its customers. class solutions for and Thailand stralia, New Zealand Au in s es sin bu r Ou of around 800 tions run by a team l comprises nine loca marketing and retai gely reflects the re . pe ro Eu d an employees, and lar UK deliver in the USA, activities which we hance the product en d an ow gr to ty ni rtu po op e th r, are realigning Howeve re is massive and we he io ol rtf po ice rv and se to move into the business ready ent. phase of developm g a new and excitin w Chief Executive change will be a ne c gi ate str is th g in Lead im Australia and L control for Manhe P& ll fu e tak ll wi o wh y to John Bailey, on, reporting directl gi re c cifi Pa ia As e th of International rope and President CEO Manheim Eu Operations. or executive with idate will be a seni The successful cand and commercial tstanding leadership a provenance of ou

d someone nals accomplishment an dynamic professio anaging a team of m d a t no is it lst of motivating an hi s. W bitious growth plan in pursuit of our am Auction/Wholesale r Ca or l tai Re e iv ot m to Au te, pre-requisi o be of benefit. experience would als al to join a for the right individu ty ni rtu po op ue iq operate on This is a un agement team who an m or ni se ial nt ue lection of blue highly infl the most enviable se th wi ge sta e id -w mers as well as a world r and corporate custo ale de r, re al tu ac uf an chip m of Manheim’s glob rther enhancement fu e th to g in ut rib cont n. brand and reputatio include a full tantial and this will bs su is on ati er un Rem relocation package. ation, email: For further inform k t@manheim.co.u en executiverecruitm e strictest ll be treated in th All applications wi confidence. employer. ual opportunities Manheim is an eq No agencies please

Visit us www.manheim.co.uk www.manheim.co.uk www www.manheim .co.uk LH1491_302 06/06/12

.

COVER STORY Risk Management

DRIVEN TO DISTRACTION Is this fleet’s biggest risk?

Steve Moody investigates.

44

fleetworldgroup.co.uk

A

ccording to the Institute of Advanced Motorists (IAM), between 2006 and 2010 distraction from mobile phones was a contributory factor in 1,690 road accidents which resulted in injuries; this figure includes 110 fatal accidents, and even that figure is likely to be underreported it believes.

The IAM did some research of users of smartphones using social networking on a simulator. When using Facebook, participants spent between 40% and 60% of their time looking down while using a smartphone to write or read messages, compared with about 10% of the time looking down normally.

Reaction times to visual and auditory stimuli were found to increase by approximately 37.6% when using a smartphone to send and receive messages on Facebook, and participants often missed events completely.

Candice Walters, general manager of Hitachi Capital’s Driving Instructor Centre explains the cognitive dangers of using the internet and its social network adjuncts: Using a mobile device involves the same portions of the brain that process the information needed to identify road hazards, and thus greatly increases the risk of a serious road accident.

‘Drivers must be shocked into realising that a few moments on Facebook or Twitter can result in death and serious injury for themselves and others.’

The issue of driver distraction through the use of technology has been around for while. In 2006, a study distributed by the US Department of Transportation (DOT), National Highway Traffic Safety Administration (NHTSA) reported that the leading factor in most crashes and near crashes (80% of crashes and 65% of near-crashes) is driver inattention within three seconds before the event.

A simulation study conducted by Australia’s Monash University’s Accident Research Centre, one of the foremost research institutions on driver distraction, concluded: ‘Retrieving and, in particular, sending text messages has a detrimental effect on a number of safety critical driving measures, such as the ability to maintain lateral position, detect hazards, and to detect and respond appropriately to traffic signs.’

But distraction is not solely confined to mobile phones. For drivers who spend a lot of time in the car, adhering to the old cliché of the “mobile office”, there are plenty of other factors to consider. While mobile phones are the most familiar form of distraction, the NHTSA study found that drivers were nine times more at risk of a crash or near-crash while reaching for a moving object and 3.7 times more at risk when looking at an external object. Reading something while driving makes drivers three times more likely to crash.

While it may not be a leader in vehicle quality and engineering, the USA is far ahead when it comes to the electronic systems in cars, and the NHTSA already has proposals in place to reduce the amount of inputs required to operate a device – essentially the number of buttons to push – and reduce unnecessary visual information.

There are also guidelines requiring onehanded operation and a two second limit on “off-road glances” – the time spent looking at the device.

The NHTSA also wants built-in gadgets the driver can use to turn-off non-essential functions while the car is moving, and keep them disabled until the car is parked.

In particular they want to prevent manual texting, use of the internet/social media, entering addresses into sat navs and dialling long phone numbers.

Displaying more than 30 characters of text not related to driving should also be prevented, it says.

The problem is that we are becoming ever more wedded to mobile devices to run our business lives. A study by market research firm iSuppli suggests that smartphones have already become the most important platform for maps, navigation and other location-based services (LBS).

According to the study, the number of smartphone-based navigation systems is increasing to 81 million in 2010, and expected to rise to 297 million by 2014.

There is no doubt though, that cars, and the people in them, are going to be subjected to ever-higher levels of information.

In this year’s KPMG Automotive Report, Steven Bridgeland, senior product manager for Microsoft’s Windows Embedded Business, explained how technology will make driving a more “connected” experience than ever.

The problem is that we are becoming ever more wedded to mobile devices to run our business lives

July 2012

45

COVER STORY Risk Management

DRIVEN TO DISTRACTION...

He said: ’Through our other recently announced partnership with Toyota, we’re planning to take connectivity to a whole new level by harnessing the power of cloud computing.

‘The cloud enables us to store the enormous amount of data collected in the car in an easily accessible place, and in the future, Toyota customers around the world will enjoy the benefits of advanced and affordable next-generation, cloud-based telematics.

‘Advancements in automotive intelligent systems will bring higher safety levels (carto-car), optimised traffic management (carto-infrastructure) and even remote analyses of mechanical problems of whole model lines, warning a driver of the need for a service before they experience a failure in their car (car-to-OEM).

‘Connectivity will also enhance the everyday driving experience and even the productivity of those in the car, whether they want to work, communicate with others or just be entertained, with infinite possibilities including a host of voice-activated services such as phone and email, all while prioritising safety.’

But can you trust drivers not to give in to their inquisitive side and reach for their phone when it bleeps or flashes at them?

And of course, distraction can be contextual: programming the sat nav on the empty stretch of a three lane motorway is inherently less risky that trying to spell out Auchtermuchty in the middle of a high speed dual carriageway rush hour.

So technology firms are looking at making their systems work in a contextual way.

Most smartphones and other devices are equipped with different kind of sensors and GPS receivers; this information could be combined with data obtained from vehicle onboard units and driver assistance systems, or with traffic updates received from external service providers or traffic police.

According to the International Telecommunication Union, an organisation which looks at future technology needs, based on parameters such as the car’s velocity, loca-

48

fleetworldgroup.co.uk

Comparison with other distraction studies Distraction/impairment

Increase in reaction times

Hand-held mobile phone conversation

45.9%

Using a smartphone for social networking

37.6%

Texting

37.4%

Alcohol (Institute of Alcohol Studies estimate)

10-30%

Hands-free mobile phone conversation

26.5%

Cannabis

21%

Alcohol (above UK driving limit but below 100mg per 100ml)

6 to 15%

Alcohol (alcohol at the UK limit approx 80mg per 100ml )

12.5%

tion, density of traffic or even In some ways, it sounds like Don’t poke me driving style (e.g., aggressive a recipe for even more distracI’m driving: or defensive, anticipatory) and tion – to be halted by your car a simulator study on driver’s experience (e.g., in the middle of an important smartphone use beginner) the in-vehicle inforcall because it judges you not mation and communication to be sufficiently skilled is likely system could decide and to send most people into enable/disable, which, if any, apoplexy. feature is safe enough to be And of course, from a techniused in this situation. cal perspective it would need As an example, a mobile well-defined and standardised phone may allow a handsinterfaces between vehicle free call when driving on a systems and all kinds of ICT motorway outside the city, devices used in vehicles, and but prohibit a call in hectic traffic situations, working out the parameters in which these and temporarily suspend the call when systems kick in could be complex, as well as turning (with a message to the other end – controversial. call temporarily suspended for driving One thing is for certain though: drivers conditions) or not allow a ring when overare going to get bombarded with ever more taking (message on the other end – please information. The question is, how do you wait for driving conditions). help them deal with it?

Driving Style reporting now included

I want to: Embed best driving practices Reduce fuel and maintenance costs Encourage safer driving Identify training needs

TRACKER Fleet now comes with Driving Style as standard to give you a greater understanding of how your fleet is being driven.

With a suite of Driving Style analytics tools available, TRACKER Fleet provides: League tables for easy peer to peer comparisons Fleet average scoring for a month on month comparative view to track improvement Feedback module for automated, personalised updates to drivers highlighting areas for improvement Benchmarking against similar businesses from the wider TRACKER parc to provide a meaningful measure of driving performance With 19 years’ experience in the telematics industry, and over 1 million units installed, TRACKER Fleet gives you the control you need.

Find out more, call or visit‌

0845 604 6099 www.TRACKER.co.uk

COVER STORY Risk Management

DRIVEN TO DISTRACTION...

We need to focus on changing people’s attitudes Graham Hurdle, Managing Director, E-Trainingworld ‘What is the first thing you do as a driver if you are lost, late for a meeting and can’t find the address you are looking for?

‘The answer is, you turn your car stereo off, or down, and ignore any calls coming into your hands-free phone. The reason is that at that moment when you need to apply maximum concentration you remove all distractions. Even if you have a passenger with you and you are engaged in conversation, most drivers will ask their passenger to “hold fire” for a moment so that they can just focus on the task in hand – effectively admitting that they can’t apply their minds to two things at once.

‘These simple acts, which many drivers carry out when under pressure, demonstrate that we know as drivers that these items in our vehicle are distracting us.

However when we are driving along normally, many drivers believe we can override the distractions and be safe. The truth is, they are still distracting us.

‘So, if we know we are being distracted, why do we let it happen?

‘As an industry then, we need to focus on changing people’s attitudes. If someone smoked in a restaurant 10 years ago it would have gone without comment. If it happened now, most customers would tell the offending person to stop.

‘We need the same cultural shift with driving. If you call someone and hear that they are driving, it should be culturally unacceptable to continue that call. If you are a passenger in a vehicle and the driver tries to reset the sat nav, the passenger should stop that person from doing it. Good old peer group pressure!’

50

fleetworldgroup.co.uk

Apple’s hands free Siri system in cars in the next year Apple is working with several carmakers to integrate its Siri mobile personal assistance system in a move which will boost driver safety and also help employees integrate their office into their company vehicle.

The voice-controlled system, currently offered on the latest version of the iPhone but due to be expanded into other Apple devices, will allow drivers to access its functions through a button on the steering wheel using a programme called Eyes Free.

The driver could then ask the iPhone questions, such as ”where is the nearest petrol station?”, or ”call the office”. In effect, the integration of the Siri system will act as a cut-price version of the built-in voice control systems currently offered as expensive options on premium vehicles, such as the Mercedes-Benz COMAND system.

With the Eyes Free feature, the driver can also ask Siri to select and play music through the iPhone’s built-in iPod, hear and compose text messages, use Maps for navigation, find calendar information and add reminders.

A number of car manufacturers have already committed to deliver eyesfree Siri integration in the next 12 months: BMW, GM, Mercedes-Benz, Land Rover, Jaguar, Audi, Toyota, Chrysler and Honda.

Fleet World Group

International Fleet World

Fleet Academy

EV Fleet World

fleetworldgroup.co.uk

THE online resource for fleet decision-makers

Find us on facebook Fleet World

Join us on Linkedin Fleet World Group

Follow us on Twitter @FleetWorldGroup

Watch us on YouTube Fleet World Group

MPG Marathon

FEATURE To buy or to lease? // Part 20

OPEN BOOK LEASING

Last month Professor Colin Tourick looked at contract hire. This month his attention turns to a variant – open book leasing – and finance leases.

If you have a large fleet, your contract hire company may be willing to give you a share of any profit they make in maintaining or selling your vehicles.

There are several ways these schemes can operate but they all involve the supplier sending you initial information about how your rentals have been calculated, and following these up with reports showing the actual V budgeted maintenance costs and vehicle sale proceeds. We can group all of these schemes together under the heading ”open-book leasing”.

Suppliers will offer you a proportion of any profit they make on maintaining or selling your vehicles, perhaps 25%. Sometimes the percentages are different; for example, 25% of maintenance profit and 50% of used vehicle sale profit.

Normally open-book leasing is only available if you have at least 10 or 15 vehicles that will come off lease in a given period.

This allows the supplier to net off losses on some vehicles against profits on others, so that you only receive the net profit, if

52

fleetworldgroup.co.uk

any. The calculation period is usually 12 months but for a big fleet it could be 3 or 6 months, to avoid building up big balances.

You might wonder why a leasing company would wish to give away a chunk of its profit whilst retaining any losses. The answer is that it generates a competitive advantage – not all suppliers will do this – and it also encourages clients to remain loyal to the supplier.

Indeed in most open book deals the client only uses one supplier. Leasing companies prefer to have a long term relationship with a client rather than having to run around trying to win new ones, and are therefore prepared to give away part of their potential profit in order to sweeten the relationship.

Historically, there has been another reason why leasing companies have offered profit shares to large clients whilst retaining any losses. If the lessee had assumed any of the loss, this would mean that they were bearing some of the risks and rewards of ownership of the

vehicles, which would almost definitely have meant that those vehicles would have to be capitalised on the lessee’s balance sheet. An earlier article deals with lease accounting and the upcoming changes to these, so we won’t go into them here, save to pose a question: if all leases will one day be on balance sheet, will that mean that leasing companies will start offering a different type of profit share deal to their clients, in which the leasing company and the client share profits and losses on residual values and/or maintenance costs? The answer is, quite possibly.

Open-book leasing has several advantages. Lessors offer it because it tends to generate long term relationships, but also because open-book clients tend to look after their cars better because they have a vested interest in the return condition of the vehicle. Lessors offer these deals because they can be very valuable; delivering cheaper motoring and a good, close, long-term relationship with a trusted

supplier who comes to understand the client’s business and is therefore able to anticipate the client’s needs.

However, many lessees are wary of these schemes, believing the money the fleet company paid back to them was their own money in the first place, leaving a feeling that they gave the supplier an interest-free loan for the period of the lease.

Although it’s not a product per se, we next have to mention sale and lease back. This is the name for the transaction where you sell your vehicles to a lessor, then continue to use them under the terms of a leasing agreement, usually contract hire.

There are a variety of reasons why you may wish to do this, e.g. to raise cash, remove residual value risk, reduce your administration or remove the vehicles from your balance sheet. Or perhaps you have decided to use contract hire for the first time and you sell the existing fleet to the contract hire company and immediately start to enjoy the service advantages, rather than waiting up to three years until the whole fleet has been replaced piecemeal.

Sale and lease back is often called ”purchase and lease back” or simply ”leaseback”, and many companies have found that it is a valuable step to take when migrating from outright purchase to contract hire.

The next lease product we need to consider is finance lease.

A finance lease is defined in Statement of Standard Accounting Practice 21 as a lease that transfers ”substantially all of the risks and rewards of ownership of the asset to the lessee”. In plain English this means that it puts the lessee in much the same position as they would have been if they had bought the asset.

A finance lease is a financing device. It gives you an alternative way to obtain the use of a vehicle other than hire purchase, conditional sale or one of the other methods of vehicle purchase. It is also known as a ”full pay-out lease” or, in the United States, an ”open-ended” lease.

The general assumption with a finance lease is that there will be only one lessee.

This distinguishes it from contract hire, where the lessor either has to lease the vehicle to several parties in succession or to sell it before they recover their investment.

In a finance lease, the lessor will charge you rentals that are sufficient to fully repay their investment during the primary period of the lease; that is, to clear their books. You are committed to

paying the rentals for this period. A finance lease is therefore said to be noncancellable. This is rather odd, because almost all leasing companies will early terminate a finance lease as willingly as a contract hire agreement. Nonetheless, finance leases are still considered by many to be non-cancellable.

The key difference between a finance lease and contract hire is the treatment of the vehicle at the end of the lease.

Depending on the wording of the finance lease agreement, one (or more) of the following will occur: • You will sell the vehicle as the lessor’s agent • You will allow the lessor to recover the vehicle and sell it or • You will elect to enter into a secondary lease period.

Whoever sells the vehicle, the lessor will retain a small proportion of the sale proceeds and you will retain the balance, which is normally given to you as a rebate of rentals.

It is worthwhile dwelling for a moment on how this normally works.

In a finance lease you have an obligation to pay all of the rentals, including the balloon rental. Once you have paid these the lessor will have fully recovered its investment in the vehicle, covered its interest and other costs and made a profit. But it still owns the vehicle and the lease will stipulate very clearly that you cannot become the owner. To ensure that the lessor does not then sell the vehicle, retain the sales proceeds and make a windfall profit, the lease will stipulate an amount of money they have to pass back to you once the vehicle has been sold.

This will normally be paid as a rebate of rentals, which makes it clear that, for tax purposes, the payment is a revenue (trading) item rather than a capital receipt of sales proceeds. Typically, the amount payable might be 95% of the sale proceeds of the vehicle.

Technically, the lessor has to: • Invoice you for the balloon rental • Receive this payment from you • Sell the vehicle • Receive the sales proceeds • Raise a credit note to you for 95% of the sales proceeds • Refund this to you.

In reality, many lessors do not collect the balloon payment but simply raise an invoice for this amount and a credit note for the rebate of rentals, then pay you (or ask you to pay) the difference.

A finance lease has two distinct phases.

The primary period is the initial noncancellable period of the lease and runs

for the fixed period set out in the agreement. By the end of this period the lessor will normally have no balance outstanding in its books relating to the lease.

This is followed by the secondary period, which may last for an indefinite period of time in which the lessor allows you to continue leasing the vehicle. This period ends either when the parties agree or when the vehicle is sold.

Vehicle finance leases often stipulate that a balloon rental is payable at the end of the primary period. The amount is usually roughly the estimated residual value of the vehicle, which means that the monthly amount payable under a finance lease will often be similar to the rentals in a contract hire agreement (excluding maintenance). The difference, of course, is that you are obliged to pay the balloon rental in the finance lease but not in contract hire.

Normally, the secondary period rental will be much less than the primary period rental, perhaps only a few per cent of the capital cost of the vehicle. This is often called a peppercorn rental, reflecting the fact that a peppercorn is an item of very little value. Its primary purpose is to provide your ongoing acknowledgement that the vehicle is still under lease and that you are not the owner. You cannot just sell it and retain the proceeds.

You will normally be responsible for the maintenance of the vehicle, though if required the lessor may add a maintenance package to the agreement (as in contract hire), or they may offer to pay for maintenance and recharge the cost to you as it is incurred.

The VAT treatment of finance leases is the same as for contract hire but the corporation tax treatment can be different. A government order called SP3/91 says you cannot get accelerated corporation tax relief by paying uneven rentals, for example, large initial rentals.

If uneven rentals are payable you get corporation tax relief on the rentals on a straight-line basis.

As you are bearing the residual value risk on the vehicle, it has to be shown on your balance sheet.

Normally, finance leases are offered as fixed interest rate products. The rentals remain fixed so you have no risk if interest rates change. Some financiers offer variable interest rate finance leases too.

Most vehicle lessees shun finance leases, perceiving that these offer few advantages over contract hire. So finance leasing represents around just 1% of the business vehicle finance market.

July 2012

53

advertisEment feature

The new A6. With Audi lightweight technology.

Ultra-light weight materials and technology place the new Audi A6 Saloon and Avant among b The new Audi A6 Saloon and Avant models embrace the most modern technology and ultra lightweight technology to deliver precise, nimble handling.

And with communications and navigation technology adopted from the sophisticated systems first seen in the new A8 and A7 Sportback, the new A6 Saloon and Avant are among the most advanced models in their sectors.

CO2 from 129g/km; fuel economy of up to 57.6mpg Intelligent use of steel and aluminium in the new A6’s construction has enabled a weight saving of up to 70kg depending on engine choice.

A range of powerful and economical TDI and TFSI engines helps the new A6 and A6 Avant achieve fuel consumption of up to 57.6mpg with CO2 emissions from 129g/km (2.0 TDI 177PS Saloon manual).

In fact, most TDI models in the A6 Saloon and Avant range emit less than 160g/km of CO2, enabling them to fall below the 130g/km capital allowance cut-off from April 2013.

Equipped to class-leading standards Main image: the A6 Avant’s sleek looks hide up to an impressive 1,680 litres of space.

Above: the new 313PS A6 3.0 BiTDI is Audi’s most powerful diesel yet.

The new A6 Saloon and Avant are among the best-specified models in their class. Standard equipment includes 17” alloy wheels (18” on S line), Milano leather upholstery, SD card satellite navigation, Bluetooth® interface, dual-zone climate control, Audi drive select with efficiency mode and Audi parking system plus, offering front and rear parking assistance through the MMI display.

And while the interior exudes premium quality, luxury and prestige, the new A6 Avant’s load-carrying capacity is increased over the outgoing model to up to 1,680 litres.

The new Audi A6 Saloon and Avant range Model

best in class for economy and emissions Reduced S line premium for 2.0 TDI Saloon models Adding even greater value to the S line trim package, the premium to upgrade from SE to S line specification on A6 Saloon 2.0 TDI models is now just £1,500 RRP, a saving of £850 RRP over the normal price.

New 3.0 BiTDI the most powerful production diesel Audi’s most powerful production TDI engine ever – the mighty new 313PS bi-turbo 3.0 BiTDI – helps create one of the most potent Audi models ever offered.

Such power enables the 3.0 BiTDI Saloon to storm from 0-62mph in a breathtaking 5.1secs (Avant 5.3secs) and attain a top speed electronically limited to 155mph (where permitted). Yet both models return combined fuel consumption of 44.1mpg and CO2 emissions of 169g/km.

The latest generation quattro all-wheel-drive system handles the silken power via a smooth-shifting eight-speed tiptronic automatic transmission, allowing effortless and relaxing performance.

Power (PS)

Gearbox (type)

0-62mph (sec)

Max Comb’ mph mpg

New A6 Saloon 2.0 TDI SE 2.0 TDI S line 2.0 TDI SE 2.0 TDI S line 3.0 TDI SE 3.0 TDI S line 3.0 TDI SE 3.0 TDI S line 3.0 TDI quattro SE 3.0 TDI quattro S line 3.0 BiTDI quattro SE 3.0 BiTDI quattro S line 3.0 TFSI quattro SE 3.0 TFSI quattro S line S6 4.0 TFSI quattro

177 177 177 177 204 204 204 204 245 245 313 313 300 300 420

6sp manual 6sp manual 8sp multitronic 8sp multitronic 6sp manual 6sp manual 8sp multitronic 8sp multitronic 7sp S tronic 7sp S tronic 8sp tiptronic 8sp tiptronic 7sp S tronic 7sp S tronic 7sp S tronic

8.7 8.7 8.2 8.2 7.6 7.6 7.2 7.2 6.1 6.1 5.1 5.1 5.5 5.5 4.6

141 141 138 138 150 150 149 149 155* 155* 155* 155* 155* 155* 155*

New A6 Avant 2.0 TDI SE 2.0 TDI S line 2.0 TDI SE 2.0 TDI S line 3.0 TDI SE 3.0 TDI S line 3.0 TDI SE 3.0 TDI S line 3.0 TDI quattro SE 3.0 TDI quattro S line 3.0 BiTDI quattro SE 3.0 BiTDI quattro S line 3.0 TFSI quattro SE 3.0 TFSI quattro S line S6 4.0 TFSI quattro

177 177 177 177 204 204 204 204 245 245 313 313 300 300 420

6sp manual 6sp manual 8sp multitronic 8sp multitronic 6sp manual 6sp manual 8sp multitronic 8sp multitronic 7sp S tronic 7sp S tronic 8sp tiptronic 8sp tiptronic 7sp S tronic 7sp S tronic 7sp S tronic

9.0 9.0 8.5 8.5 7.9 7.9 7.4 7.4 6.3 6.3 5.3 5.3 5.6 5.6 4.7

138 138 134 134 144 144 143 143 151 151 155* 155* 155* 155* 155*

CO2 g/km

Price (£) (P11D)

BIK tax (£)**

57.6 57.6 56.5 56.5 53.3 53.3 55.4 55.4 47.9 47.9 44.1 44.1 34.4 34.4 29.4

129 129 132 132 139 139 133 133 156 156 169 169 190 190 225

30,440 31,940 31,970 33,470 34,540 36,890 36,070 38,420 39,240 41,590 43,480 46,190 39,140 41,490 53,340

96/192 101/202 106/213 111/223 120/241 129/258 120/240 128/256 163/327 173/346 195/391 207/415 189/378 200/401 311/622

56.5 56.5 55.4 55.4 53.3 53.3 54.3 54.3 47.9 47.9 44.1 44.1 34.4 34.4 29.1

132 132 135 135 139 139 136 136 156 156 169 169 190 190 226

32,280 34,630 33,810 36,160 36,380 38,730 37,910 40,260 41,080 43,430 45,680 48,030 40,980 43,330 55,180

107/215 115/230 118/236 126/253 127/254 135/271 132/265 140/281 171/342 180/361 205/411 216/432 198/396 209/418 321/643

*Electronically limited. **BIK tax liability figures are quoted per month for 20%/40% tax payers in 2012/13, correct at June 26 2012

F O R M O R E I N F O R M AT IO N O N T H E N E W A U D I A 6 R A N G E V I S I T A U D I . C O . U K /A 6

MANAGEMENT Fleet Academy

Join the Third time lucky (Ross Durkin, Publisher, Fleet World Group)

Fleet World magazine’s Fleet Academy is designed to provide a forum whereby those fleet consultants and professionals in possession of valuable fleet information can impart it to a select audience of professional fleet decision-makers.

At the heart of the Fleet Academy is a network of independent fleet industry experts whose work brings them regularly into contact with end-user fleet managers and other organisations playing a key role in the fleet industry. These fleet experts will provide a regular feed of information that will be posted on the website forum in the form of a discussion topic.

Typical areas of interest will include, but not be limited to: taxation, finance and accounting, legislation, environmental issues, fleet safety, insurance, fleet management, supply issues, security, etc.

Fleet suppliers will be permitted to respond to queries if it is felt that their response represents honest and impartial advice. This aspect of the service will be strictly moderated in order to ensure that the quality of information provided remains of the highest standard.

We have already attracted a strong network of fleet professionals, and our expert contributors have submitted a number of thought provoking discussion topics, a few of which are previewed to the right.

We hope you will consider joining us in this exciting new venture into the world of fleet.

To find out more about Fleet Academy and request membership, please visit:

www.fleetacademy.co.uk 56

fleetworldgroup.co.uk

A reader has contacted Fleet World to ask about the legality of charging company car drivers for any insurance excess in the event of an accident which is proven to be their own fault. My advice was based on articles published rather than first-hand experience so any advice and guidance would be appreciated.

I have suggested that as long as drivers agree to the

Ross Jackson, Chief Executive, Fleet Operations, replied…

This is always a contentious point, as many people seem to believe that “real world” practices should not apply when they drive a company vehicle. What do I mean by “real world”? Take the scenario where you personally insure your vehicle and then it is damaged, with costs not being recoverable from any third party - e.g. vandalism, you crashed it, or it was damaged whilst parked. You ring your insurer and, while sympathetic, they explain that you will need to pay your excess when/if the car is repaired (which will also impact your claims record and your future premiums). While you don’t like it, it’s what you signed up to and is an implicit aspect of the insurance policy, so you begrudgingly pay up...and perhaps take more care if it’s your car. That’s “real world” thinking - it’s what happens to most people, most of the time.

Companies absolutely have the right to expect people to take care of their vehicles and, like in any other area of business, there should be consequences for not meeting the appropriate standards. I know of, and assist, many companies in navigating this area and successfully introducing policies and practices that support a safer culture - one of accident reduction, better driving, lower insurance costs and a wider duty of care. There should be penalties for “avoidable cost” and costs should be recovered from the person responsible for the vehicle if they cannot be recovered from anywhere else.

Unfair though that may seem, it’s how insurance

debate...

in

ith w on iati c o ass

Dust to Dust – EV benefits... policy and sign a formal document it should not be hard to enforce whatever scale of charges the employer deems fair. I also suggested that a firm policy might involve a 100% recharge for each and every claim, while a more lenient one might be no charge for a first offence, 50% for the second and 100% thereafter.

We would like to hear from any fleet with experience of this problem...

companies operate. As to the value of the excesses, perhaps £100, £250 and £500, rising per incident.

Of course, it’s not all about being draconian. Positive behaviour can be encouraged positively, with perhaps better driving competitions, lower maintenance, improved fuel economy, etc., all linking to a bonus linked to vehicle condition/cost. Just an idea, but some companies do it.

One key point to take away – companies need to exercise greater care when someone has an accident/incident. There needs to be a process to understand why an accident occurred and what could have been done to prevent it; it’s not good enough to simply dust someone off and give them keys to a new vehicle. There is potential corporate exposure here if nothing is done and the same person has a serious accident subsequently.

Summary: Legal to charge, but make sure it’s clearly in policy and communicated to people. Be very clear about what is/isn’t chargeable and, above all, cover the fact that if it can’t be recovered from a third party, it will be treated as their fault. That way, it promotes driving and parking vehicles carefully and sensibly (and this avoids endless claims of “my vehicle was damaged when parked – it wasn’t me”. Then make sure you enforce the policy.

(Alex Grant, Motoring Editor, Fleet World Group) I've stumbled across a report by an American scholar, which makes some fairly damning claims about the real-world environmental benefits of electric and hybrid vehicles. Instead of subsidising the technology, it advises governments to invest in infrastructure to promote walking, cycling and public transport.

Green Illusions, a book by a California-based scholar, claims the process of manufacturing electric and part-electric cars is carbon-rich. Factor in the mining of rare-earth metals, used in batteries, and the book says EVs are no better for the environment over their lifecycle than a conventionallypowered car. It simply moves the fuel usage to the point of manufacture.

Regardless of whether the manufacturing argument holds true, it also makes you wonder if the author has missed the point. Assuming the figures are true, hybrid and electric vehicles still move harmful emissions out of city centres, which is good for urban air quality. And not all journeys can be carried out using public transport or person-power.

Reply from Brecon Quaddy, Director, The Ambergate Network Environmentally, EVs and hydrogen cars are gambling on someone perfecting and commercialising zero- or ultra-low carbon, non-wind or solar-dependent, non-radioactive electricity generation. Something like nuclear fusion. That could happen, although to go by every previous energy transition it will take 50 years to complete the shift.

In the meantime we're stuck with the fact that manufacturing onetonne steel, glass and plastic boxes requires a huge amount of energy: almost all of it fossil. Ditto moving said boxes around at 60mph, whether the fuel is petroleum or coal/gas-generated electricity.

Perhaps it is time to stop being starry-eyed about the (largely imaginary) environmental benefits of EVs and to start being seriously hardnosed about addressing the real issue, which is the ongoing disappearance of the cheap fossil fuels that made mass motoring possible – and with it, the fleet business as we know it today.

Reply from J Mistry, Car Leasing Business Intelligence The author appears to be good at pointing out the pitfalls of battery technology but never balances that against the poisons already created as a byline of supporting oil/gas powered vehicles. Nor does he once balance any disadvantages of the current situation versus the considerable efficiency advantages of EVs or the ease with which cleanly generated energy may be used by them.

July 2012

57

INTERVIEW James Taylor Vauxhall Motors

The Master Plan Fleet sales director James Taylor explains the seismic shift in strategy going on at Vauxhall to Steve Moody.

On the face of it, it doesn’t look like it’s been a good year so far for Vauxhall, with fleet market share showing a steep decline. But it’s all part of the master plan, fleet sales director James Taylor reckons.

‘If you look at our registration performance you might say it looks disastrous, with market share down two to three per cent but there is a clear plan that should have longer term benefits. We’ve done a lot of work on residual value improvement, and focused on wholelife costs,’ he says.

‘We made the decision in the middle of last year on a change of strategy, and took 20,000 units annually out of short-cycle volume, and there’s been good news straight away on that front. Values for Meriva have improved: it’s the first car in a balanced supply situation, and the residual values of short-cycle cars are up £1,500 according to CAP. Of course, the market wants to see it’s not a blip, but over time you should be able to see these improved figures on longer cycles too.’

Taylor reckons that if you look at the relationship between short and long-cycle residual values, the two are intrinsically linked with the latter being roughly 50% of the former. So he reckons that logically, if he can improve short-cycle RVs, then long-cycle should get dragged up too, and that might equate to £10 a month lower lease rates.

He adds: ‘Coming out of the first quarter, we reduced volume by 7-8,000 units year-on-year. There will be a volume reduction in second quarter but not as much as the first, as we want them back first quarter next year when values are usually higher. What all this means is we’re looking to be more effective and work smarter.

‘It will take a year before people will really start to feel the effect. For the fleet marketplace, Insignia should start to show improvement in the next few months as well and of course that should have a big impact for customers.

‘It’s something that’s happened in the States too: they’ve taken hundreds of thousands out of short-cycle business, which is just phenomenal.

‘They’ve seen the benefits in their own business of doing it, and there’s no issue production-wise as we made the decision early enough, so that was fed into the planning.

The UK market, despite the doom and gloom in the media, has actually held up year-on-year compared to the European market.

‘That the improvement in Meriva values happened earlier than we thought is great because it gives us something tangible, but this is a two, three-year execution and we need to make sure people give it the time. It will

58

fleetworldgroup.co.uk

deliver some real benefits to customers and should have a direct reduction on lease rates, and now that leasing companies are now setting residual values every quarter rather than every six months, that should happen quicker than previously.’

If the hoped-for boost in residual values does happen, it will give the firm a huge fillip, on top of a new range of loweremission diesel engines coming next year and the introduction this year of fleet-specific Tech Line models and the launch of Mokka. It’s a launch Taylor is excited about.

‘Mokka is our best opportunity for volume improvement out of our new models. The Mokka Tech Line is extremely well priced, at £17,390 for the diesel, which puts it ahead of its key competition such as Qashqai, and cheaper on BiK than Juke.

‘Tech Line is going very well and it will be a key strategy going forward. Our Tech Line cars come with an aggressive price point. With them we don’t want to be competitive, we want to be best-in-class. There’s no point being in the pack – if you're going to make a step change you might as well be the best from a tax point of view. When you add on all the extra spec, and add in the two to three thousand pounds that would cost in other cars, and then factor that into your tax, it’s quite a lot more cost on top. Drivers are getting savvier with this sort of thing.’

As well as the new models, more people are testing Vauxhall, Taylor reckons, because of the success of the test drive programme.

‘Our three-day test drive programme, in terms of volume, is up 40% up year-on-year, which is pleasing because 40% of people that have a test drive go on to buy the vehicle, and so it’s a very important tool,’ he says.

‘It’s the best in the industry, and it’s not a cheap exercise to get the right sort of car to the driver, and making sure they have the right experience. We hold the cars centrally, rather than have a few at dealers which may or may not be the right car, but it’s worth it as there’s a good business case for it, and given the scale of our business, we have a lot of cars that we have on demo anyway.’

Looking at the black and white figures, things may not appear so rosy, but Taylor is certainly confident that the radical plans put in place, plus the new products, spec lines and engines will put Vauxhall in a better place.

‘We’ve been very public with this strategy because one of the things we need people to understand is that this is something we are sticking too.’

“There’s a clear plan that should have long term benefits. We’ve done a lot of work on residual value improvement”

July 2012

59

Do you provide a fully hosted software service?

Is your system suitable for multiple-user networking?

Do you provide on-line P11D submissions to HMRC?

Does your system permit electronic download of data from suppliers?

Does your fleet software provide electronic supplier invoice reconciliation?

Does your system include a vehicle order tracking function?

Does your fleet software provide on-line grey fleet management?

Does your system include a fuel management module?

Does your system allow users to design their own reports?

Does your system use exception reporting?

Does your system integrate with external telematics systems?

Does your fleet software provide a driver vehicle selector based upon allowance?

MARKET OVERVIEW Fleet Management Software

Bynx

-

-

CFC Solutions

Chevin Fleet Solutions

Civica UK Ltd

Provided, but not online

Drive Software Solutions Limited

Jaama

KeeResources Limited

Mycompanyfleet

Sofico

Key to services

Service provided

-

Service unavailable

Sofico

Mycompanyfleet

Sofico is the world’s leading supplier of mission critical software solutions for automotive finance, leasing and fleet management companies and its software is used by a broad range of world renowned leasing companies.

Founded in Ghent, Belgium, Sofico has 20 years’ experience and expertise in the leasing and fleet management industry.

It is privately owned, independent and employs over 115 people. The company has installed systems at more than 70 sites in 15 countries managing more than 700,000 vehicles.

Sofico has developed its second generation software system, Miles, to support automotive finance, leasing and fleet management companies in meeting their business challenges. It supports the entire lifecycle of a leasing contract, based on a stable and scalable open technology platform.

Mycompanyfleet specialises in delivering appropriate scalable solutions to companies operating in the fleet and automotive industry. From supply chain management to leasing, from fleet management to service delivery and CRM, in multiple languages, we have a range of solutions that can be configured to meet every conceivable corporate requirement.

As part of the Northgate Information Solutions Group, our customers include every UK police force, over 90% of councils and over 15,000 private sector companies. Our automotive customers include Kwik-Fit Fleet, KLM, Ford, Gefco, TNT, DHL and many others both in the UK and worldwide.

Contact: Roger Smith roger.smith@sofico.be

60

fleetworldgroup.co.uk

Tel: 07815 601622 www.soficoservices.com

Contact: Jon Tandy jon.tandy@ngahr.com www.mycompanyfleet.co.uk

Tel: 0845 077 7760

FLEETW RLD Bynx

CFC Solutions

Bynx is a developer of software solutions for vehicle fleet management, enabling leasing companies, contract hire firms, fleet management and rental operators to control and manage the lifecycle of vehicles cost-effectively.

Customers are able to retain asset value, engage with stakeholders online and better utilise fleets. bynxFLEET provides a platform – and all the tools and applications needed - to manage the life cycle of vehicles, whether owned or managed on someone else’s behalf. The product includes a comprehensive set of programs covering all aspects of the business. It utilises special functionality to automate and streamline contract processing and enables customers to do more, faster, with fewer resources. bynxNET offers everything needed to improve the user experience and communication between dealers, customers, suppliers and drivers.

CFC Solutions is the market leader in the supply of fleet, contract hire and workshop management solutions, delivering ground breaking vehicle management software for more than three decades.

With innovations including Licence Link, free to adopt software to check employee driving licences simply & compliantly online, Contract Manager, a software-as-aservice solution for vehicle leasing companies of all kinds and Fleet Plus, our widely adopted fleet management solution. Gold Certified Microsoft Partner Network status and ISO 27001 Accredited, CFC Solutions provides leading technologies, processes and security measures designed to keep on top of rapidly changing requirements, providing simple to use software that deliver significant results.

Contact: Gary Jefferies Tel: +44 (0)1789 471600 sales@bynx.com www.bynx.com

Contact: Enquiries enquiries@cfcsolutions.co.uk

Tel: +44 (0)121 717 7444 www.cfcsolutions.co.uk

Chevin Fleet Solutions Chevin is an award winning global provider of flexible, fleet management systems. Chevin works closely with organisations, regardless of size, sector or fleet complexity, to reduce waste, streamline processes and optimise management of fleet assets.

Chevin offers two comprehensive software offerings: RoadBASE – a robust desktop-based application designed enhance efficiencies for medium-scale fleet operations; and FleetWave – the world’s first web-based fleet management system, designed for larger, geographically dispersed fleets.

With offices in the UK, Europe, The US and Australia – and with customers in over 100 countries – Chevin has been in business for more than two decades and is a trusted and experienced supplier to over 300 organisations.

Contact: Becky Nash becky@chevinfleet.co.uk

Drive Software Solutions DRIVE Software Solutions Ltd, is a privately owned UK business dedicated to the delivery of Fleet, Vehicle Management, Contract Management and Leasing solutions.

Drive Software Solutions Ltd are the creators and owners of the DRIVE Fleet Management and Leasing software product – a single generic product applicable to vehicle management requirements worldwide and which represents over 150 man-years of development by our software experts.

DRIVE is a proven product and is currently installed and operating successfully in 16 countries worldwide. Our policy of continuous product enhancements and DRIVE’s modular structure enables it to be configured to meet the precise and unique needs of each of our clients.

DRIVE is used throughout the world by leading vehicle leasing companies, major vehicle manufacturers, and other operators of large fleets to whom we continue to provide additional services and on-going 24/7 support.

Contact Drive Software Solutions to learn how your company can benefit from our market leading products and services.

Contact: Simon West-Oliver Tel: +44 (0)1438 317731 simon.west-oliver@drivesoftwaresolutions.com www.drivesoftwaresolutions.com

Tel: 01773 821992 www.chevinfleet.co.uk

Jaama Jaama’s market leading, multi award winning Key2 Vehicle Management system is a totally integrated vehicle, asset and driver management solution covering all aspects of owning, leasing, hiring, maintaining, repairing, running and disposing of cars, vans, commercial vehicles, plant and asset related equipment. New modules include defect management; ensuring compliance to VOSA recommendations, electronic driver services; a repository for fleet information allowing drivers to submit expense claims online and mange grey fleet documentation, and driver quotes; allowing company car and van drivers data to compile their optimum vehicle solutions within pre-set grades and company specified requirements. Developed in conjunction with leading vehicle operators Jaama have invested heavily to develop a new breed of vehicle management software and the worlds only web fleet system to use next generation .Net Microsoft ‘Smart Client’ technology – visibly years ahead. Designed for all fleet sizes and budgets, Jaama links users live to data providers, customers, suppliers, vehicle telematics and the DVLA. Contact: Collette Dooley enquiries@jaama.co.uk

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

July 2012

61

A whole new online interactive experience!

Designed specifically for the web, EV Fleet World is a dynamic all-new, interactive digital magazine.

Subscribe for free at fleetworldsubscriptions.co.uk to receive your monthly issue, direct to your inbox.

Issue 004

in association with

EV NEWS

E

U ISS

4 00NLINE

HIGHLIGHTS

O

W

NO

T ER ght P EX insi V eE et fle m th try fro dus in C MI e A N iv DY ract nt e e int cont s EV new &

ROAD TEST VAUXHALL AMPERA DIGITAL MAGAZINES FOR THE 21st CENTURY

evfleetworld.co.uk

ADVERTISEMENT FEATURE Salary Sacrifice

THE EXPERTS’ GUIDE TO SUCCESSFUL

SALARY SACRIFICE SCHEMES Recent months have seen salary sacrifice rise in popularity as an effective means of providing employees with the benefit of a company car whilst proving costeffective for the company.

To help fleets understand how to set up a successful scheme, Fleet World asked some of the key salary sacrifice providers for their top tips. in association with

July 2012

63

ADVERTISEMENT FEATURE Salary Sacrifice

THE EXPERTS’ GUIDE TO SUCCESSFUL

SALARY SACRIFICE SCHEMES TUSKER:

LEX AUTOLEASE:

What are salary sacrifice schemes and how do they work?

A salary sacrifice car scheme enables an employer to offer their employees a cost-effective and tax-efficient way to have a fully insured and maintained car via a salary sacrifice arrangement, taking advantage of tax and National Insurance savings and promoting “green” environmentally friendly cars. Employees sacrifice a portion of their gross salary in exchange for a benefit – in this case a company car.

Changes in the Benefit-in-Kind system in 2008 Budget made it more cost-effective to offer low-emitting cars via salary sacrifice arrangement due to the income tax and National Insurance savings that can be made and, although employees have to pay Benefit-in-Kind tax on the value of the car, this amount is far outweighed by these tax and NIC savings.

On top of the tax savings, the employee can also benefit from any volume and fleet discounts a company is able to claim. According to Tusker’s calculations, this gives an average £70 savings in total per month when compared to other car purchase schemes, such as a PCP.

What are the benefits to an organisation of setting up a salary sacrifice scheme?

The Lex Autolease scheme provides all of the benefits associated with a company car, meaning your employees will save money and hassle. The difference is that a monthly fee will be sacrificed and deducted out of their gross salary, saving them tax and National Insurance contributions.

Because of the structure of the scheme and increase in buying power, your employees could pay far less than they would achieve privately. Your organisation will also benefit from reduced tax and National Insurance bills.

Who is eligible for a salary sacrifice scheme?

It is the fact that cars offered under this arrangement can be offered to entire workforces (provided that any salary reductions don’t go below minimum wage and employees are employed or on a fixed-term contract for the term of the arrangement) that makes it such an interesting and appealing proposition for employers.

In addition, employers will make National Insurance savings at 13.8% (or 10.4% if Contracted Out) but if it’s a high-CO2 vehicle, then the cost of the Benefit-inKind will outweigh that saving so most companies are unlikely to offer vehicles emitting more than 140g/km from 2012.

However, the employer also needs to understand possible pitfalls. For example, if an organisation is undergoing a major restructure, there could be employees leaving the business mid-agreement and if a company is call centre-based with high turnover rates and a lower pay rate, there may be a risk of people sacrificing below minimum wage, which isn’t allowed. With regard to managing the risk of resignation and redundancy outside planned restructures there are solutions available to protect both the employee and employer, again making the arrangement robust.

Who is eligible for Lex Autolease salary sacrifice schemes?

As part of an enhanced employee benefits package, everyone can be eligible for a company car.

64

fleetworldgroup.co.uk

Who is the Lex Autolease salary sacrifice scheme suitable for?

The scheme is an ideal employee benefit for any company with over 1000 employees and 500 company cars. Companies with a limited car fleet but a lot of employees could also take advantage of the rewards. Each scheme is implemented with the intention that it will be cost-neutral within 12 months, and for many companies the net cost of implementing the scheme is zero. This makes it one of the best-value and rewarding packages available.

How does it actually work for the employee?

To pay for their car, the employee sacrifices a portion of their salary, pre-income tax and National Insurance. Each employee will have reduced the amount of income tax and NI they pay, but will now have to pay BiK tax based on the CO2 performance of their car. This is also a great way to reduce the carbon footprint of your organisation and your employees by providing newer, more fuel-efficient vehicles.

What about in the long term?

It’s really simple and convenient for the employee throughout as Ordering, delivery, inlife services and collection are all managed by us, making things hassle-free for your employees.

Your employees could pay far less than they would achieve privately

Hello. We’re Tusker.

We’re the market leader in salary sacrifice car schemes.

Why Tusker?

•Experts in the field with 80+ established schemes across private and public sector.

•Simple and hassle free management of the scheme.

•Award winning flexible ‘quote to order’ online system.

•Customer testimonials and references readily available.

•Awarded Pan Government Frameworks (available to any public sector).

If you’d like to find out more about our scheme, we’d love to hear from you.

•HMRC compliant schemes.

Simply call: 08719

•Bespoke protection to mitigate risk.

955 300 or email us at: hello@tuskerdirect.com

Justdrive Justd drive you your ur employees emplo oyees to o work With the e IFS IFS salary salar y sacrifice s solution solu ution Want W a ant to give your staff sta aff a pay rise at no cost to your busi business? iness?

Want to increase staff retention with a great employee benefit?

W answers IFSS Justdrive Justdrive,, the salaryy TTo o find out the answe ers and discover how IF t salar Solutions,, can en enhance sacrifice offering from m Inchcape Fleet Solutions nhance employee package, your existing employe ee benefits pack ka age, Please contact us on: on n:

0870 191 4444

Inchcape Fleet Solutions, Haven House, Compass Road Portsmouth, Hampshire.

Hampshire. PO6 PO6 4RP www.ifs.inchcape.co.uk info@ifs.inchcape.co.uk

ADVERTISEMENT FEATURE Salary Sacrifice

THE EXPERTS’ GUIDE TO SUCCESSFUL

SALARY SACRIFICE SCHEMES INCHCAPE FLEET SOLUTIONS ZENITH: Can employees save money through a salary sacrifice car scheme?

Yes, through a salary sacrifice mechanism employees give up part of their salary and therefore save on income tax and National Insurance (NI) contributions. They will have to pay Benefit-in-Kind (BiK) tax on the car; however the scheme is structured so that, for lower emission cars, the tax and NI savings outweigh the amount of BiK payable. The lower the emissions of the car, the less BiK is payable and the greater the savings.

Are there any other cost benefits?

The package is all-inclusive and therefore includes insurance, servicing, maintenance, road tax, breakdown recovery and accident management. Drivers benefit from fixed costs, which are easy to budget for, and protection from market fluctuations, particularly in insurance costs, which have been subject to substantial rises. Drivers don’t have to worry about increases in maintenance costs or unbudgeted expenditure.

Drivers will also be able to take advantage of the company’s buying power and obtain enhanced corporate discounts that they may not have access to on the retail market.

What cars can they choose from?

There will be a wide range of choice, usually from at least five manufacturers and there can be 20 or more manufacturers available.

The lower the emissions of the car, the less BiK is payable and the greater the savings.

66

fleetworldgroup.co.uk

How should fleets work with their salary sacrifice provider to set up a scheme?

The first step to any new fleet solution is to undertake a joint discovery phase to establish the employer’s exact requirements, from which an implementation plan is created and is utilised as the road map to transition.

The implementation plan for salary sacrifice schemes will cover many work-streams including but not limited to HR and Payroll functions, creation of procedures, reporting, legal, data, marketing and communications, as well as covering the suite of documentation that will be required for the scheme to operate effectively.

The IFS Justdrive salary sacrifice scheme is supported by a fully featured online system incorporating a client configurator, which gives employers complete control over the terms and conditions of their scheme.

A key part of the process is to implement robust authorisation procedures to ensure scheme rules are adhered to,

Award Winning Company Award Winning Salary Sacrifice Car Scheme such as validating an employee’s selection so that their salary does not fall below the national minimum wage threshold.

To maximise the tax eďŹƒciency of the scheme, capping vehicle selection at 120g/km is recommended.

It is also a good idea to consult HM Revenue and Customs regarding your salary sacriďŹ ce scheme, to ensure that an eective variation of the contractual terms and conditions has taken place (a reduction in the employee’s earnings for a provision of a beneďŹ t) and that tax and National Insurance contributions have been applied correctly.

Prior to the launch of a salary sacriďŹ ce scheme, employers should expect to be involved in a thorough planning process requiring full interaction with the scheme provider before the scheme is launched. However, once up and running, the scheme will require minimal administration to run.

It is also crucial for employers to think about how to mitigate the risks of early termination through such events as resignation, redundancy, maternity, long-term sickness etc, such as including early termination insurance within the scheme or considering a contingency fund to cover any early termination costs.

Fleet News ‘Leasing Company of the Year’ 2012 Winner of the Fleet World Honours ‘Internet Award’ 2012 Provider to the Winner - Employee Benefits Awards 2012

Zenith is a multi-award winning provider of Salary Sacrifice car schemes. We have been designing, implementing and managing Salary Sacrifice car benefits since 2008 and our schemes are fully operational in many UK mid to large corporates.

Your employees deserve the best. Find out more: 0844 243 4371

5CNCT[ 5CETKƆEG Company cars for all, the rewarding way.

9KVJ QWT 5CNCT[ 5CETKƆEG UEJGOG [QW ECP QHHGT CNN [QWT GORNQ[GGU VJG DGPGƆVU QH C JCUUNG HTGG new car from Lex Autolease. r Because the cost of the car is deducted from your employees’ gross salary, it reduces tax and National Insurance contributions for you both. r Suitable for organisations with over 1,000 employees and 500 company cars. r 'PJCPEG [QWT GORNQ[GG DGPGƆVU RCEMCIG CPF JGNR TGFWEG %12 emissions.

2NGCUG IGV KP VQWEJ VQ ƆPF QWV OQTG Call: 0845 769 7381 Email: marketing@lexautolease.co.uk Visit: NGZCWVQNGCUG EQ WM UCNCT[UCETKƆEG

www.zenith.co.uk

FLEET UPDATE

This month Our XF goes back to Jaguar and the Fleet World team considers the value of long-term testing...

Renault Grand Scenic dCi 110 EDC Auto

Volkswagen Tiguan Sport 2.0 TDI 4Motion

I’m showing my age a bit here, but I’m wondering if my neighbours are thinking my other half and I have turned into Harold and Hilda from Eighties sitcom ‘Ever Decreasing Circles’. It’s not that we’ve started wearing identical homemade jumpers, but we’ve had two matching Grand Scenics on the driveway for the last week.

They’re not identical, though. One is our ’11 plate long termer, the other a ’61 plate facelifted version which with its subtle exterior upgrades looks a lot smarter and more contemporary.

The 1.5 dCi 110 Stop/Start that we tested in the new model is a reworked version of the engine in our longtermer, and cuts CO2 emissions to 105g/km while fuel efficiency has increased to 68.9mpg, with clear real-world benefits. Rather than the 38.2mpg I’ve been achieving in the old version, I averaged 45.3mpg without even employing any eco driving techniques.

And though this is still the economy engine, it feels keener thanks to F1-derived brake energy regeneration technology, and a six-speed manual gearbox, instead of our long-termer’s tardier EDC automatic.

The test version came with optional extras such as the sliding centre console and window blinds that I’ve found so handy in our long termer, plus new details such as the £300 Visio System comprising of lane departure warning and automatic high/low beam – good for gizmo fans.

However, the one thing the new model was missing was the electric panoramic sunroof on our long-termer. This did mean I was able to test the ”child minder” mirror, which is not fitted if the sunroof is chosen as an option. The mirror may be undoubtedly handy for keeping an eye on kids in the back but even if it only provides a view of the never-ending rain, I’d rather have the ‘sun’-roof any day!

Natalie Wallis

When motor manufacturers launch a new car on the Cote d’Azur, presenting the highest specification models to journalists encamped in a five-star hotel, it’s sometimes possible to overlook minor blemishes in a vehicle that only become apparent over time. The reverse can also occur…

When our long-term Tiguan arrived it joined a pack of high-spec executive cars on our test fleet and I would be lying if I didn’t admit that in comparison to my previous car – a Jaguar XF – it wasn’t massively impressive. The fact of the matter is that few company car drivers will go from an XF to a Tiguan so in truth the comparison is irrelevant, but it was what it was at the time.

However, six thousand miles on motorways is an excellent antidote to lack of familiarity, and several months later I find my feelings towards the Tiguan are a long way apart from my first impressions. The interior is functional in the extreme, but it exhibits the sort of build quality and design that isn’t going to date in the way that some more exciting models might.

Equally important on long journeys are the comfortable seats and good all-round visibility afforded by a high-up driving position. It not quite the same story in traffic. Either the squab is too long and lacks rake adjustment, or my legs are too short – either way the back of my calf catches on the front of the cushion when pressing the clutch pedal, with the effect of rucking up the back of my trouser legs.

But that’s not to take anything away from what has become an increasingly enjoyable car to drive. I missed the chance to drive it in the snow but I might just have to hitch up the horse box and find a muddy field (not difficult at the moment) before it goes back.

Ross Durkin OTR PRICE £22,300 POWER 108bhp @ 4,000rpm

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

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

TORQUE 236lb.ft @ 1,750-2,500rpm 0-62MPH 10 seconds

TOP SPEED 112mph COMBINED MPG 60.1mpg

TOP SPEED 120mph COMBINED MPG 53.3mpg

CO2 124g/km (18% BiK)

CO2 139g/km (21% BiK)

68

fleetworldgroup.co.uk

Kia Optima 2 Tech 1.7 CRDi Having not driven the Optima for a few weeks, I was treated to a short trip recently and a reminder of what a great all-rounder it is. Still a car that turns heads – it’s becoming a more common sight, but it’s not as prolific as others in its class – I think it’s a brilliant way for Kia to get its foot in the D-segment door.

I also think this would be a great base for an estate version. It’s an absent part of the range that gives away this car’s roots as a model designed for the Asian and American markets where demand doesn’t really extend to this sort of car. But I can picture that chrome blade along the Optima’s waistline being extended around scalpel-shaped rear quarter windows and those narrow rear lights underlining the glass on the tailgate.

It’s also a solution to this being a saloon. Hatchback models – such as the Mondeo and Insignia – tend to be popular in this segment. An Optima SW would broaden its appeal, and the proof is in the Passat range. Even in the UK, where estate cars aren’t as popular as they are in Scandinavia, 51% of Passats sold here are estates. There’s definitely a market for one.

But, regardless of an absent estate, the Optima continues to serve us well. Now back from the bodyshop after its recent repair, it’s passed through the hands of a few of the Fleet World staff who have commended it for its effortless low-50s to the gallon fuel economy, long-distance comfort and well-equipped interior.

Which makes this a great building block for whatever happens next at Kia. Somewhere at their Namyang R&D centre there’s almost definitely a next generation Optima on the drawing boards, taking the best bits of this runaway success and pushing its good points further. It should be a real headache for others in this class.

Alex Grant

Ford Mondeo Zetec 1.6 EcoBoost

Like any other modern car, the Mondeo can only do what it does thanks to a battery of microprocessors that would be the envy of the engineers responsible for the first manned flight to the moon in 1969. All the following things have an electronic nanny to make sure they do what they’re supposed to be doing; electronic fuel injection, turbocharger, all electrical circuits thanks to digital wiring, the blind-spot sensors, voice recognition, ESC brakes with ABS and traction control, the other various safety systems such as airbags, then light-sensing headlamps, rain sensing wipers, front and rear parking sensors, automatic Stop/Start system, cruise control and speed limiter and the emission control system. I have almost certainly left out a number of other systems too, but it’s the price we pay for cleaning up emissions and high levels of built-in safety.

All car manufacturers recognise that the potential for things to go wrong as a result is quite big, so a great deal of work is done at the design and testing stage to ensure they won’t. But occasionally, the Mondeo just gives me a gentle reminder that electronic systems can run their own agenda, although not in a way to cause anything more than minor irritations.

So the satellite navigation system recently switched over to measuring distances in metric. It has happened before as I think I mentioned in a previous report. At least I was ready for it this time. Any Mondeo drivers who have experienced the same thing and the frustration of trying to switch back to miles again should go into the menu and select ”Language”, then find ”English (imperial)”. Logical it isn’t. Then the Stop/Start system failed to re-start the engine earlier today, enough for the impatient driver behind to think I was trying to ruin his day….

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

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

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

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

TOP SPEED 125mph COMBINED MPG 57.6mpg

TOP SPEED 130mph COMBINED MPG 44.1mpg

CO2 128g/km (19% BiK)

CO2 149g/km (19% BiK)

July 2012

69

FLEET UPDATE FINAL REPORT

Jaguar XF 2.2 Diesel Portfolio Ross Durkin > Managing Director Jaguar hasn't always hit my sweet spot with its smaller (than the XJ series) cars such as X-Type and S-Type. The arrival of the XF was the start of a new chapter, albeit one lacking the moderately powerful, low-emission diesel engine so important to the fleet sector. I hope I don't jinx the company by saying that our 190bhp. 2.2-litre diesel XF answers all the questions I've previously asked.

It's a great car to look at, extremely comfortable to drive, reasonably economical (52.3mpg combined) and modest in tax terms (149g/km = 23% tax). In short, all the reasons a company car driver might have quoted for overlooking the X-Type and S-Type are gone. The XF is not a car you will quickly tire of driving.

Alex Grant > Motoring Editor I’ve been an XF fan since the C-XF concept car previewed how it would look in 2007. So I was delighted last year to see the C-XF’s front end finally make its

way onto the production version. I think it’s made this the best looker in its class.

It’s worked wonders for residuals. Early facelifted versions are coming to market £2,000 higher than the last of the old model, and that 2.2-litre diesel engine has nudged entry prices under £30,000 for the first time. A tempting proposition.

Prices start at £33,955 for the more powerful 2.2 fitted here. Not the most frugal on the market, but the XF claws some of that back in standard equipment. This means that while our top-spec Portfolio version costs £42,005, you’ll be left wanting for nothing, which is what executive cars should be like. I love it.

Darren Brett > Sales Executive Jaguar and luxury go hand in hand, so I had big expectations for the XF. No disappointment here. It took a few minutes of playing with the seat settings to get them how I liked, but once there, it fitted perfectly. Soft, supportive leather, comfortable for the longest journeys you’d ever want to make.

Styling is also on the Jaguar’s side.

Visually it’s entirely different to the old S-Type, but Jaguar trademarks like the oval grille mean it’s unmistakably part of the same family. This is good looking enough to cut it alongside large coupes, but now it’s efficient enough to cut it alongside the rest of the saloon pack too.

Luke Wikner > Production Manager There’s a reason why the XF has been popular for the long-distance commutes that several of our team have to contend with, and the vehicle of choice for motoring editor Grant’s recent round trip to Berlin.

Amazing refinement and a silky smooth eight-speed auto ‘box are nicely complemented by a comfortable and occasionally cosseting (ventilated heated or cooled seats) cabin and intuitive touch screen sat-nav. The suede headlining is a nice little touch of luxury too.

Aficionados will spot the latest XF by its neat LED running lights, and from our experience, there’s no doubt Jaguar’s entry level model has real presence.

OTR PRICE £43,050 POWER 188bhp @ 3,500rpm TORQUE 332lb.ft @ 2,000rpm 0-62MPH 8.0 seconds TOP SPEED 140mph COMBINED MPG 52.3mpg CO2 149g/km (23% BiK in 2012-13)

70

fleetworldgroup.co.uk

FLEETW RLD

SUPPLIER DIRECTORY

AUCTIONS & REMARKETING

ACCIDENT MANAGEMENT

DAILY RENTAL

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

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

Nexus Vehicle Management Ltd Tel: 0871 984 1947 www.nexusrental.co.uk

FAST-FITS & TYRES

DRIVER LICENCE CHECKING

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

ATS Euromaster Tel: 0870 066 3624 www.atseuromaster.co.uk

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

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

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

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

AA DriveTech Tel: 01256 495732 www.AAdrivetech.com/fleetsafe DriveTech

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

Bynx Tel: 01789 471600 www.bynx.com

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

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

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

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

RAC Risk Management Tel: 0870 606 2606

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

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

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

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

Roadmarque Tel: 0845 053 0331 www.roadmarque.com

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

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

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

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

Peak Performance Tel: 01246 244200 www.peakperformance.net

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

Tel: 0800 085 4128 www.lexautolease.co.uk

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

Cardinus Risk Management Tel: 01733 426015

Sofico Tel: 07815 601622 www.soficoservices.com

DriveSense Tel: 01628 581930

Full listings online at fleetworldgroup.co.uk

VEHICLE DATA

www.racfleetriskmanagement.co.uk

CONTRACT HIRE, LEASING & FINANCE

Lex Autolease

White Clarke Automotive Solutions Tel: 0870 787 2211

www.cardinusfleet.com

www.whiteclarkegroup.com

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

Leasedrive Tel: 01344 466 466 www.leasedrive.com

Zenith Tel: 0844 848 8091 www.zenith.co.uk

Arnold Clark Vehicle Management

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

Arnold Clark Car and Van Rental Tel: 0845 702 3946 www.arnoldclarkrental.com

For more information, please contact Tracy Howell on 01727 739160 or email tracy@fleetworldgroup.co.uk FUEL MANAGEMENT

Volkswagen Group Leasing Tel: 0870 333 2229 www.volkswagengroupleasing.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?

Stars of 2012 Featuring all the essential new cars launched this year

www.drivesense.co.uk

TELEMATICS & TRACKING

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

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

Trakm8 Tel: 01747 858 444 www.trakm8.com

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

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

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

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

Telogis Tel: 01344 747638 www.telogis.co.uk

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

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

driving towards lower fleet emissions

July 2012

71

VAN FLEETW RLD July 2012

fleetworldgroup.co.uk

‘With a range of body sizes and payloads, Vauxhall is covering a large section of the market with Combo.’

July 2012

73

A MONTH IN FLEET A skip through the key news and events since the last issue of VAN Fleet World. Edited by John Kendall.

Sign up to our FREE digital newsletter Fleet World Confidential... visit fleetworldsubscriptions.co.uk

MORE CONVERSIONS FROM CITROËN AND NISSAN Both Citroën and Nissan have announced updates to their conversion offerings. Nissan will now offer its NV400 chassis cab in 13 versions, with factory conversions including 6 and 9 seat minibuses, a crew van, single and double cab dropsides and tippers.

In addition, Nissan dealers will offer a range of Good To Go local conversions, including a box van, Luton body and a refrigerated van body, along with 14-17 seat minibus conversions.

Citroën is building upon its successful Ready To Run programme through recognised conversion specialists. These include Relay 15 and 17 seat minibuses built by Advanced Minibus, Relay Luton vans from Buckstone, a Dispatch crew van from CoTrim, Relay dropsides from Ingimex, car transporters from KFS and Nemo and Berlingo dual-fuel conversions through Nicholson McLaren. In addition the firm is offering fridge and freezer conversions from Somers, glasscarrying chassis from Supertrucks and relay tippers from Tipmaster.

‘Citroën’s Ready To Run customers not only benefit from competitive pricing, but also from significant new product developments, which deliver further quality and efficiency gains’, said CV operations manager Scott Michael.

CONFIDENTIAL

MINI CLUBVAN HITS THE LOADS Mini is to go ahead with its first commercial vehicle since becoming part of BMW. The Mini Clubvan will be available in three versions, with both petrol and diesel engines.

The Mini Clubvan One comes with a 98hp petrol engine, while the Cooper Clubvan gets a 122hp petrol motor. The Mini Cooper D Clubvan has a 112hp diesel engine and will probably prove the most popular with fleet buyers. All versions drive through the front wheels and a standard six-speed manual gearbox. An optional six-speed auto transmission is also available.

All models will come with Auto Start/Stop, Shift Point Display, Brake Energy Regeneration and on-demand operation of ancillary drives. Prices will start from £11,175 for the Mini One Clubvan, rising to £13,600 for the Cooper D. However, Mini will offer a host of options to allow customers to personalize their vans, including climate control, adaptive headlights and navigation systems. The van offers 860 litres of loadspace and a 500kg payload.

XBG DEVELOPS ONLINE REMARKETING Remarketing company XBG Fleet has developed an online remarketing system through Autorola. The XBG branded site will run online auctions, allowing customers to buy ex-fleet LCV stock from companies like National Grid and Wales and West Utilities.

All vehicles are put through an inspection and de-liveried prior to sale. A range of photos and documentation are uploaded with all mileages warranted by the vendor. XBG will offer a range of additional services including valeting and damage repair, along with nationwide delivery. ‘We aim to be very open with the condition of the vehicle to extend our excellent reputation in the LCV market to online buyers,’ said director Dave Woods.

‘Through Autorola’s escrow account service, buyer funds are not transferred to the vendor until we know they are happy, and if a dealer wants a vehicle prepped to retail ready standard, we are offering a range of value added services which add further value.’

ISUZU CONTRACT HIRE DEALS Isuzu has announced a range of flexible low-cost contract hire packages for its D-Max pick-up line. Backed by Black Horse Contract Hire, the deals are available over two, three or four year terms, with prices starting from just £1,100 deposit and monthly payments of £185 for a 4x2 single cab.

The mid-trim level D-Max Eiger is available from £299 per month, the Yukon can be had for £233 per month and the range-topping Utah model is £254 per month. All contracts are subject to an initial payment equivalent to six months rental, with a mileage limit of 10,000 per year.

74

fleetworldgroup.co.uk

VAN OPERATIONS Contract Hire & Leasing

LeasePlan Uptime LeasePlan embeds telematics in new contract hire offering for LCV customers.

Contract Hire and telematics seem to have been made for each other. The profit element of contract hire relies on residual value and residual value relies heavily on how the vehicle has been maintained. So contract hire providers have an interest in monitoring when servicing is due and whether it has been carried out.

Part of the contract concerns annual mileage and while a good customer and a good contract hire company will try to estimate annual mileage as closely as possible, vehicle usage can change and even the best-laid plans can look different a few months into a contract. If mileage starts to accumulate at a greater rate than originally anticipated, the customer needs to know and a good contract hire company will want to help the customer minimise excess mileage charges and any other potential end of contract penalties, by comparing actual and expected mileage and flagging up differences as soon as possible.

From a fleet manager’s perspective, keeping tabs on an entire fleet’s mileage and repair and maintenance records amongst other things, is a potential headache, so if some of these issues are automatically being watched as part of the contract, life could become a little less fraught.

LeasePlan is not the first company to incorporate telematics in a contract hire package, but the company has spent some time assembling a package. The result, UPtime was launched at the CV Show in April, using the system developed by iFleet to aid contract hire management. It’s aimed at reducing downtime for van fleets.

LeasePlan says that a threemonth trial with 20 customer vehicles could lead to a 60% cost

76

fleetworldgroup.co.uk

saving for clients. VFW caught up with LeasePlan’s head of Commercial Vehicles, Mark Lovett at the CV Show: ‘We’re recognising that the van market is a market in its own entity now.

Historically, it’s been the car and van market, or the truck and van market and vans have fallen through the slats.

We’ve taken a view that the van market has operational characteristics far more in line with the truck market than the car market. So whether it’s a car-derived van or a three-and-a-half tonne tipper, it is doing a job of work for the operator and any time that vehicle is not working, it is costing the operator money, whereas when a car is off the road, it’s an inconvenience, but it’s not having such a financial impact on that business.

Therefore the two areas where we needed to demonstrate how we are changing our approach to the business for our van customers was in VOR management and in the contract.’

With UPtime, the telematics package

is used to record mileage every 24-hours.

‘This enables us to say, ”This vehicle is due for a service/MOT/safety inspection”, or whatever it may be’, says Mark.

‘We will identify in advance when that needs doing and then we’ll be proactively booking that vehicle in through one of our approved commercial vehicle specialist service and repairer network.

‘These are people that have that ”HGVSavvy”, and can say, ”That’s a commercial vehicle”, whether it’s a Kangoo-sized van or a large van, ”I need to get that vehicle back on the road ASAP.” With UPtime, we can book that vehicle in for an hour, knowing that it will be in for the hour and back out again. Traditionally a van will go into a dealership for the day and it’s lost for the day, and we know that average industry accepted downtime cost on a van is between £700 to £1,000 per day. If that is the true cost of the vehicle being off road, that can have a huge financial impact on the efficiency of that business.’

Mark Lovett, LeasePlan’s head of commercial vehicles

DRIVEN

Vauxhall Combo

Words Dan Gilkes

specification MODEL

Vauxhall Combo L1H1 2000 Sportive 1.6CDTi BASIC PRICE £16,908 ENGINE FUEL INJECTION POWER TORQUE

4-cyl/1,598cc Common-rail 105hp @ 4,000rpm 290Nm @ 1,500rpm

Weights (kg) GVW

2,020

KERB WEIGHT PAYLOAD

1,270 750

MAX TRAILER WEIGHT Dimensions (mm)

1,500

LOAD SPACE LENGTH LOAD SPACE WIDTH

1,820 1,714

LOAD BOX SIDE HEIGHT WIDTH between wheel arches

1,305 1,230

LOAD HEIGHT (unladen) 545 LOAD VOLUME 3.4 Cost considerations FUEL TANK CAPACITY 60 litres COMBINED MPG 54.3mpg CO2 emissions 136g/km OIL CHANGE 2 yr/21,000 miles WARRANTY 4 yr/80,000 miles

78

fleetworldgroup.co.uk

Vauxhall’s original Combo was an incredibly popular and long-lived van, so replacing it was no small task. Vauxhall has therefore taken an interesting route, and it is no secret that the firm has based the new Combo on Fiat’s Doblo Cargo. But if you are going to use another company’s van, you might as well start with an International Van of the Year winner.

Vauxhall is offering Combo in a range of lengths and body heights, with load volumes up to 4.2m3 and payloads ranging as high as a full 1,000kg.

This will grow even further if the firm takes on the L2H2 Doblo body seen at this year’s CV Show.

This wide range puts the new Combo into a much larger marketplace than its predecessor, with a lot more competitors. It comes as little surprise therefore, to find that Vauxhall will not now be replacing Astravan when it comes to the end of its run, as Combo easily covers the market from the smaller Corsavan right through to Vivaro.

Up to 70% of sales are expected to be the standard L1H1 model that we have here, with the Sportive specification likely to be an equally popular choice. There are four driveline options available, but here too our test van is representative of the mainstream buyer, offering 105hp and 290Nm of torque from its mid-range 1.6-litre CDTi engine.

Start/Stop is standard on the 1.6 and 2.0-litre engines and it works well, cutting the engine even before it is fully warmed in the morning and restarting without any fuss. You also get six gears in the manual box, which makes for a very relaxing drive at motorway speeds.

Indeed relaxing is a good description of the Combo driving experience throughout. The steering is accurate and light, the suspension copes well with our less than perfect roads and the handling is surprisingly sharp. There is enough handling to feel secure, plenty of power for overtaking, an easy cruise on the motor-

ways, the Combo has all the bases covered.

Our Sportive specification included air conditioning, that metallic silver paint, body coloured bumpers and door mirror housings, a nearside sliding door, height adjustment for the driver’s seat, an armrest and lumbar support, plus those wheel trims. That’s on top of the base model’s full height steel bulkhead, reach and rake adjustable steering column, electric power steering and driver’s airbag.

It may be mid-range but the 1.6-litre engine has plenty of get up and go, yet remains smooth and quiet for longer trips. Having a full bulkhead helps to keep in-cab noise levels very low and the Combo is a comfortable van in which to cover the miles.

At the working end, access to the load area is good, with the sliding side door and asymmetric rear doors permitting access for a forklift for heavier loads, an important consideration if you are opting for the higher payload models.

The floor height is also relatively low, making it easy to get lighter loads on board by hand.

As an ownership proposition few drivers are going to get close to Vauxhall’s claimed 54.3mpg combined figure, though high 40s should be achievable. Service intervals are set at a generous 21,000 miles, so that should limit trips to the dealer. You also benefit from Vauxhall’s four-year warranty, for added peace of mind.

There are no crew cab versions available yet, but that really is the only gap in the line-up, with Combo now covering an incredibly large part of the LCV sector. The good news is though, that Combo performs well at all levels.

verdict With a range of body sizes and payloads, Vauxhall is covering a large section of the market with Combo. Given the backing of Vauxhall’s dealer network, it should become a popular choice.

DRIVEN

Great Wall Steed S

Words Dan Gilkes

specification MODEL BASIC PRICE

Great Wall Steed S £13,998

ENGINE FUEL INJECTION POWER TORQUE

4-cyl/1,996cc Common-rail

143hp @ 4,000rpm 305Nm @ 1,800 – 2,800rpm

Weights (kg) GVW

2,885

KERB WEIGHT PAYLOAD

1,835 1,050

MAX TRAILER WEIGHT Dimensions (mm)

2,000

LOAD SPACE LENGTH LOAD SPACE WIDTH

1,380 1,460

LOAD BOX SIDE HEIGHT WIDTH between wheel arches

480 NA

LOAD HEIGHT (unladen) NA LOAD VOLUME NA Cost considerations FUEL TANK CAPACITY 70 litres COMBINED MPG 34mpg CO2 emissions 220g/km OIL CHANGE 1 yr/10,000 miles WARRANTY 3 yr/60,000 miles

The concept of the Great Wall Steed is easy to understand. Take a reasonably competent 4x4 double-cab pick-up, load it with a generous level of specification and sell it well below the market norm. Surely a recipe for success, particularly in this recession-hit market?

In practice however it’s not quite that simple. Yes the Steed, even in base S trim, comes with leather (heated in the front), air-conditioning, Bluetooth, alloys, an Alpine stereo with USB/MP3 compatibility, steering wheelmounted audio controls, a Thatcham Cat 1 alarm and remote central locking. And all for just £13,998, less than most companies ask for a basic 4x2 single cab. For another £2,000 you can have the Steed SE, which adds chrome sidebars and trim around the lights, a body coloured hard top, a protective liner in the bed and rear parking sensors.

Power for either truck comes from a 16V 2.0-litre diesel that pumps out a healthy 143hp and 305Nm of torque, which is enough to push it along comfortably at motorway speeds. A slightly notchy six-speed manual gearbox helps deliver reasonable acceleration and you can switch between two and four wheel drive at the touch of a button.

Great Wall promises a combined fuel consumption of 34mpg, while the CO2 output is pegged at 220g/km, both of which are competitive in the pick-up market. You will however need to visit the dealer rather regularly, at 10,000 mile intervals for a service, while the warranty covers three years but only 60,000 miles.

All the ingredients are certainly there though. The Steed can carry over 1,000kg, so you can reclaim the VAT if registered, while towing capacity is 2,000kg, which again though hardly groundbreaking, is enough for many customers.

So why are we not jumping up and down with joy? Let’s start with that specification.

Having never seen a Chinese cow we can’t comment on the texture of their skin, but this is the closest to vinyl you are likely to get.

The stereo looks like something from Max Power and is incredibly fiddly. The air-con does provide cooling air, but you have to have the fan on at least number two or three to actually feel it. There is no clock, no trip computer, no outside temp reading and the fuel flap refused to open on our test vehicle. The suspension is rock hard and the brakes need a bit of a warning before you try to stop quickly.

But it costs less than £14K, and that’s before you start negotiations with the dealer. And there are already more than 40 dealers around the UK, a number that will rise to around 50 by the end of the year, so support should be there, wherever you are based.

The biggest problem for Great Wall, is that a quick scan of the classifieds shows that £14,000 buys a 2-3 year old Navara or Hilux with plenty of spec and not too many miles, each of which offers a better driving experience. Perhaps that is missing the point though, although it will be interesting to see what sort of residual a Great Wall achieves three years down the line.

But for some customers a new truck, with plenty of toys for this sort of money, will be an attractive proposition. You pays your money, as they say. If you are in the market for an economical double-cab 4x4 pick-up, and don’t want to go down the used vehicle route, the Great Wall Steed has a lot going for it. It’s certainly worthy of a test drive.

verdict The Steed delivers a low cost workhorse with a reasonable level of comfort, practicality and performance. Don’t be fooled by the specification, go in with your eyes open and it could be a bargain.

July 2012

79

MARKET OVERVIEW Risk Management

AA DriveTech

ALD Automotive

If you’re looking to manage your duty of care for staff who drive for work, you should talk with AA DriveTech, one of the UK’s leading road risk management and driver education companies.

Our FleetSafe Division delivers driver risk management solutions throughout the UK. This includes “driving for work” programmes, action plans, licence validation, driver assessment (on road, online and on paper) as well as in-vehicle and workshop training for car, van and LGV drivers including Driver CPC. 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

DriveTech

Contact: Samantha Harris-Jones tellmemore@AADrivetech.com www.AAdrivetech.com/fleetsafe

Contact: Helen Fisk helen.fisk@aldautomotive.com

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

Tel: 0845 299 6131

Peak Performance

IAM Drive & Survive IAM Drive & Survive provides Driver Risk Management Solutions to the fleet and business community.

With a national network of 100+ highly qualified trainers who can be deployed throughout the UK and over 25 years fleet experience, IAM Drive & Survive can help you: • Improve health and safety compliance • Reduce fleet operational costs • Improve corporate social and environmental responsibility • Safeguard the welfare of employees who drive as part of their work activity.

• Ensure the all-important Driver CPC compliance.

If you would like more information for van, LGV, PCV and car drivers, contact IAM Drive & Survive today.

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

The ALD Automotive group is the second largest vehicle leasing operation in Europe and manages 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.

Tel: 0870 120 2910

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 or 07971 207212 Kirstie.snape@peakperformance.net www.peakperformance.net

Roadmarque RoSPA’s driver trainers are Fleet Approved Driving Instructors (not just ADI qualified) and hold a DSA Grade 5 or 6, making them some of the most highly qualified instructors in the UK. In addition all our trainers have passed RoSPA’s Advanced Driving Test at Gold grade and hold RoSPA’s National Diploma in Advanced Driving Instruction.

RoSPA offer a range of fleet solutions second-to-none including: • Driver training • Fleet consultancy • Risk assessment • Advanced driving and riding • CPC training and much more.

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 (using CAP data), 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: Nicola Griffiths enquiries@rospa.com

Contact: Dr Gerhard Manogg enquiries@roadmarque.com

RoSPA

80

fleetworldgroup.co.uk

Tel: 0121 248 2233 www.rospa.com/drivertraining

Tel: 0845 053 0331 www.roadmarque.com

NUM8ER5 G4ME the fleet month in figures

£18,945 The starting price (on-the-road) of the new Mercedes-Benz A-Class.

SOURCE > Mercedes-Benz

12.6% The amount at which court prosecutions for motoring offences fell in 2011 compared to 2010 – down from one million to 888,000.

SOURCE > The Institute for Advanced Motorists

2,500

200 thousand The number of vehicles now managed by TomTom’s Webfleet online system.

SOURCE > TomTom

The number of new Lexus GS models the firm expect to sell in 2014.

SOURCE > Lexus

39% The average retained value of fleet petrol cars (compared to manufacturer’s retail price), against a fleet diesel car's average of 36% on a 40 month cycle.

SOURCE > BCA

40% The increased rate at which business drivers have collisions compared to private motorists.

SOURCE > Total Accident Management

82

fleetworldgroup.co.uk

VAN

SUPPLIER DIRECTORY

FLEETW RLD AUCTIONS & REMARKETING

CONTRACT HIRE, LEASING & FINANCE

RACKING SYSTEMS

TAIL LIFTS

FLEET MANAGEMENT SOFTWARE

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

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

Bynx Tel: 01789 471600 www.bynx.com

Full listings online at

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

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

Penny Hydraulics Tel: 01246 811475 www.pennyhydraulics.com

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

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

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

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

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

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

Nexus Vehicle Management Ltd Tel: 0871 984 1947 www.nexusrental.co.uk

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

fleetworldgroup.co.uk DAILY RENTAL

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

Arnold Clark Vehicle Management

FAST-FITS & TYRES

Lex Autolease

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

Tel: 0800 085 4128 www.lexautolease.co.uk

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

Full listings online at fleetworldgroup.co.uk TELEMATICS & TRACKING

FUEL MANAGEMENT

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

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

HEALTH & SAFETY COMPLIANCE Handistep - Fleet Safety Tel: 01939 260707 www.handistep.com

RISK MANAGEMENT

www.volkswagengroupleasing.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

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

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

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

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

Roadmarque Tel: 0845 053 0331 www.roadmarque.com

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

DriveSense Tel: 01628 581930

Volkswagen Group Leasing Tel: 0870 333 2229

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

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

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

VAN

fleetworldgroup.co.uk

FLEETW RLD January 2010

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

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

VAN FLEETW RLD SUPPLIER DIRECTORY

January 2010

43

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

www.drivesense.co.uk

Incorporated into every issue of VAN Fleet World and interactive online at www.fleetworldgroup.co.uk £400 flat rate for the year.

Cost includes a rotating monthly listing in SUPPLIER DIRECTORY in VAN Fleet World. PLUS...

• Full listing on fleetworldgroup.co.uk • Email link to sales contact • Website link to homepage • Full-colour company logo July 2012

83

Take a closer look.

The C-Class AMG Sport Coupé with an efficient 55.4MPG.*

A Daimler Brand

Visit mercedes-benz.co.uk/fleet

Fleet

Official government fuel consumption figures in mpg (litres per 100km) for the C - Class Coupé range: urban: 15.5(18.2)- 44.8(6.3), extra urban: 33.6(8.4)- 65.7(4.3), combined: 23.5(12.0)- 55.4(5.1). CO2 emissions: 280 -133 g/km. *Model featured and based on a Mercedes-Benz C 220 CDI BlueEFFICIENCY AMG Sport Coupé at

£33,230.00 on-the-road including optional metallic paint at £645.00. Some combinations of features/options may not be available. Please contact your Mercedes-Benz Retailer for availability. Price correct at time of going to press 07/12.