Fleet World March 2012 by Fleet World Group

The leading magazine for fleet decision-makers

March 2012

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Toyota bounces back How the Japanese giant is fighting in fleet again

IS THIS MAN COSTING FLEETS A FORTUNE? Investigated: the scandal of accidents and insurance claims fleetworldgroup.co.uk

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

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Contents

News that Renault is looking to cut a quarter of its workforce at its UK headquarters is sad, and coming on the back of its model cull, it’s been a tough start to 2012. But the French firm is not alone: many carmakers in that middle ground are feeling the pain. Talking to Ford managing director, Mark Ovenden, at the Geneva Motor Show, he ruminated that most volume manufacturers would have to take bold action in order to make their businesses viable. The fact remains that too many cars are being produced in Europe, with no buyers in sight. In 2008, there was some fiddling around the edges and production was trimmed back and for a while things were better. But not for long. Soon we were back into the same old overcapacity situation. This is fine for fleets, because they are the first to benefit from actions to empty those fields of parked cars, and there are some great deals to be done as a result. Ultimately though, it is a short-termist approach that can’t be sustained. There is not enough profit margin in many of these midsector models thanks to the need to build them better to compete with premium brands, and the travails of the Euro means carmakers’ funding is not getting any cheaper, and more profitable retail business is just not there. Add in competition from value brands and they are being squeezed on all sides. As Ovenden said, the European carmakers will have to contemplate the nuclear option, as Ford did in the US four years ago, and close factories, despite the political cost. Only then will the mid-sector car market return to health.

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

16 Comment 20 EV & Low CO2 Fleet Show 2012 Pre-register NOW for the Show in April...!!!

24 Driven VW Passat Alltrack // Ford Focus EcoBoost // Hyundai i30 // Peugeot 508 RXH // Skoda Citigo.

34 The blame game Rocketing insurance premiums...why it’s happening and what eets can do about it.

46 GENEVA: the highlights We pick out the future eet stars from the 2012 Geneva Motor Show.

50 Fleet World Honours 2012 The categories and how to get involved...

52 A force to be reckoned with Toyota’s eet boss, Ewan Shepherd, on the changes that will make it a eet force again.

54 To buy or lease 56 Fleet Academy 58 Selling 60 Market Overview Daily Rental.

62 Fleet update 69 VAN Fleet World 2012 CV SHOW Preview // Fiat Ducato.

66 NUM8ER5 G4ME

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

28 46 42 58

Certified circulation Jan – Dec 2011 19,619

Steve Moody Editor

March 2012

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

NISSAN TO CREATE 2,000 UK JOBS Nissan will build the production version of its Invitation B-Segment concept car in the Sunderland plant starting in mid 2013, the carmaker announced at the Geneva Motor Show earlier this week. The technology-packed European-market model will be launched next year with an expected volume of 100,000 units depending on demand. It follows a £125m investment made by Nissan to manufacture not only the car at the factory, but large parts of the drivetrain too. The project is backed by a £9.3m offer of support from the UK Government Regional Growth Fund. Andy Palmer, exec vice president of Nissan, said: ‘This is great news for our continued growth in Europe. It will create 400 new jobs at the plant and an estimated 1600 jobs within the supply chain. This project has received important financial backing from the UK government, and I would personally like to thank Vince [Cable] for his ongoing support for Nissan in the UK.’ Nissan finished 2011 with a 25% uplift in European sales to 700,000 units compared to 2010, with 80% of those also manufactured in the region. Sunderland produced 480,000 vehicles last year, with the Qashqai crossover making up most of the volume. The Juke, in its first year of manufacture, took up 130,000 and production of batteries for the LEAF has also begun at the UK facility. Nissan will begin building the LEAF itself at the plant next year.

CONFIDENTIAL

RENAULT CUTS UK STAFF TO SAVE COSTS Renault UK is in consultation with around a third of its head office staff over redundancy plans as the car manufacturer aims to rationalise its operations to mirror the cuts it has made to its dealer network and model line-up. It is currently seeking voluntary redundancies with between 50 and 55 staff at the UK head office in Hertfordshire, which employs 200 people. Renault has not confirmed which departments are affected by the plan. Last month Renault announced the merger of its commercial and fleet/LCV departments following the resignation in December of commercial operations director, Ian Plummer. He has been replaced by Darren Payne, previously director of fleet and commercial vehicle operations, who heads up the new merged team as sales director. Renault has also taken drastic action to reduce the number of models it offers in the UK, culling several model lines as it aims to concentrate on more profitable business channels and continue its focus on electric vehicles. Models no longer offered in the UK are Modus, Kangoo car and van, Wind roadster, Laguna and Espace. However, the brand’s Dacia budget arm will be launched in the UK later this year offering the Sandero hatchback and Duster SUV. And the dealer network is also currently in the midst of rationalisation, with Renault seeking to cut its number of sales outlets by a third, from 190 to around 135 by the end of the year. Renault has seen declining sales for several years in the UK as models which once provided volume, such as Megane and Laguna, falling out of favour with buyers. In 2011, Renault UK sold 68,449 cars, a fall of 28% over 2010’s performance leading to a fall in market share from 4.71% to 3.53% last year.

LEX AUTOLEASE PUTS £900 MILLION BEHIND SMEs Lex Autolease has announced it intends to increase its funding to small and medium sized businesses (SMEs) by 20% over the next three years. The firm currently leases over 75,000 vehicles to SMEs, to a value of around £750m. Lex Autolease anticipates that its overall SME funding level will rise to £900m by 2014/15. In renewing its commitment to the SME market, Lex Autolease is matching a similar commitment to its parent company, Lloyds Banking Group, which has pledged to increase business support and lending via an SME Charter. Andrew Kirby, director of SME sales at Lex Autolease, said: ‘In

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line with our ongoing commitment to SMEs, we’re actually looking to grow our core small fleet business by at least 20% over the next few years. ‘We recognise that transport is one of the key building blocks of growth and want to help mobilise more SMEs and their employees. We intend to play an active part in lending to smaller firms, especially those with a similar approach to business as ours. ‘We’re interesting in acquiring a customer, not a one-off transaction, so it’s important our relationship will be a long term one and that we both share the same mutual interest in quality customer service.’

Ford NEWS New EcoBoost engine a “game-changer”... FORD’S new 1.0-litre EcoBoost petrol engine has been described as “a game-changer” by one of the motoring journalists who has driven a Ford Focus powered by the new unit. Autocar editor in chief Steve Cropley added: “Daft as it may sound, the tiny but super-advanced turbo triple – engineered in Dunton – confers a remarkable new layer of smoothness and refinement on Ford’s big-selling C-segment hatchback that is so obvious, so impressive and so refreshing that it leaves the four cylinder models gasping.” The turbocharged direct injection engine, now on sale across the Ford Focus range, delivers performance to rival a traditional 1.6-litre engine, with significantly improved fuel efficiency and class-leading ultra-low CO2 emissions. Giving the new 1.0-litre EcoBoost engine five stars out of five, What Car? said: “Extraordinary is not too strong a word.” After driving the 125PS version of the engine, Andrew English wrote on Daily Telegraph Online that it was “a surprising success, proving that, just occasionally, less can actually mean more.” And Andrew Frankel said on What Car? Online that the EcoBoost-powered Focus “is the most fuel-efficient, conventionally-powered family hatchback the world has seen.” Independent whole life costs provider KWIK carcost says that a Focus Zetec five-door with 100PS version of the EcoBoost engine will cost just 41.71p per mile over three years/60,000 miles, while leaving the company car driver with a monthly BIK bill of just £29 at 10% and £57 at 40%, which is considerably less than any direct competitor.

...while Fiesta ECOnetic II offers 85.6mpg WITH emissions of 87g/km of CO2 and returning 85.6mpg combined, the new Ford Fiesta ECOnetic II is class-leading in both emissions and fuel economy. It is good news for both fleet operators and company car drivers, with £0 VED, 10% BIK, lower employer NI contributions and, as it emits less than 110g/km of CO2, a 100% writing-down allowance in the first year. The improved fuel economy and emissions have been achieved in the Fiesta ECOnetic II, which is powered by a 95PS version of Ford’s 1.6-litre TDCi engine, through the introduction of: • Auto-Start-Stop • Engine upgrade actions including friction and combustion improvements and calibration optimisation

• Revised gear ratio • EcoMode • Smart regenerative charging • Improved efficiency of the air conditioning, cooling fan & alternator

Fiesta ECOnetic already had low rolling resistance tyres, an aero pack comprising undershield and wheel deflectors, variable oil pump and shift indicator light.

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 Best-in-class Euro NCAP award for Focus The Ford Focus has been awarded one of only five best-in-class awards from Euro NCAP, Europe’s leading authority on auto safety, in recognition of its crash test rating and advanced safety technology. Focus was named best-inclass small family car on the strength of its maximum fivestar Euro NCAP rating as well as four Euro NCAP Advanced rewards last year, an achievement unmatched by any other high-volume car.

Ford Transit Connect Electric qualifies for ‘Plug-In Van Grant’ The Ford Transit Connect Electric has been named as one of the handful of ultra-low carbon vans that will qualify for a discount of up to £8,000 as part of the Government’s ‘Plug-In Van Grant’ incentive. Vans qualifying for the grant must emit less than 75g/km of CO2, be capable of travelling at least 60 miles between charges, reaching speeds of more than 50mph, and must comply with European safety standards. The zero-emission Transit Connect Electric is a pure electric-powered version of the Transit Connect, with an urban range of up to 80 miles and top speed of 75mph.

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

CONFIDENTIAL

A-CLASS TO REVOLUTIONISE FLEET SALES, MERC CLAIMS Mercedes-Benz’s took corporate customers to the Geneva Motor Show to witness the revealing of the car that ‘will transform the brand in fleet’. As part of an aim to grow fleet business, and be seen to be more open to it, the company’s head of fleet, Nick Andrews, showed customers the new A-Class, which goes on sale in the UK next January. Andrews said: ‘The A-Class is the car that is going to get us into a new audience that we have not been able to target before. It’s the final piece in the jigsaw for us.’ He admitted that the current A-Class has not stacked up against the likes of the Audi A3 and BMW 1 Series for fleet customers, but believes that the new car, backed up by a raft of recently-refreshed or launched models, will ‘transform consideration of Mercedes-Benz in fleet’. Mercedes-Benz has seen strong growth since it renewed its focus on fleet last year (fleet and business sales in 2011 were 36% up over 2010, accounting for more than 40% of all the brand’s registrations in the UK). Naturally, C-Class models have been a key driving force behind the growth, especially with the addition of the Coupe version, and the Executive SE trim level on the larger E-Class has been selling ‘really well’. As part of its strategy for further growth, Andrews wants to see an expansion in such fleet-focused models, adding: ‘Our strategy is to develop more models across the range which are fleet oriented – we’ve recognised that we need to do this in the UK. Discussions are taking place between us and Daimler AG – watch this space.’

TAKE THE OFFICE WITH YOU Losing too much working time driving? Then the answer is this: the Bentley Mulsanne iPad special edition. Rear passengers can work on documents or files independently, email, browse the internet, make video calls or play music or games. All for a cool quarter of a million.

CHANCELLOR SHOULD ABANDON DUTY RISE AS DIESEL HITS RECORD HIGH With the cost of diesel reaching record levels, the Chancellor of the Exchequer should abandon the planned three pence per litre rise in fuel excise duty for August, software firm Mycompanyfleet has claimed. The call comes as diesel hit a new price high of more than 143.5ppl, according to data from the Retail Motor Industry Federation. The previous record high for diesel in May last year was at the height of the Arab Spring uprisings. The rising cost of diesel now means that to fill up a car or van which has an 80-litre fuel tank costs £24 more now than it did in February 2010.

ProFleet2 One day, everyone will expect to have this information

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

INBRIEF

“QUALEC EFFECT” HITS NEW VEHICLE ORDERS More than 4 out of 10 company cars will incur increased costs for fleets and drivers when the QUALEC threshold is abolished in April. Data gathered by Lex Autolease company has revealed that 45% of new car orders will fall into the 100g/km to 120g/km tax band and be hit by the ”QUALEC Effect”, where these vehicles, as well as any existing company cars emitting more than 99g/km of CO2, will soon be subject to a higher tax burden. The future cost increase is attributed to HMRC’s decision to lower the 10% tax threshold from 120g/km to 99g/km in April 2012, as part of a revision to the benefit in kind (BIK) charge system for company cars. Lex Autolease calculates that only 8% of cars ordered will qualify for the new 10% company car BIK tax band (76-99g/km). So, despite recent efforts by manufacturers to launch sub-120g/km vehicles, and fleets’ or drivers’ decisions to adopt these, many will face a Company Car Tax increase with an adverse impact on Employers National Insurance contributions (NIC) as well. Paul Lippitt, Principle Consultant at Lex Autolease said: 'No fleet is likely to escape the QUALEC Effect, unless they are operating an entirely sub-99g/km policy and there aren’t many of those about. We’ve raised the issue ever since the new tax thresholds were confirmed at the last Budget, but we suspect that a large number of firms have not yet taken pre-emptive steps to mitigate the impact and inform their employees.’

FORD MAY LOSE $600 MILLION IN EUROPE, CFO SAYS Ford’s outgoing chief financial officer has said the firm may lose between $500-600 million in Europe this year as a result of the Euro crisis and overcapacity. Lewis Booth, who retires on April 1 said: ‘We’re going to have a tougher time in Europe than perhaps we anticipated at the beginning of the year. We think Europe’s much more likely now to be at the bottom end of the scale we talked about.’

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AUDI SETS PROFIT RECORDS Audi set records for deliveries, revenue and key earnings data in 2011 with operating profit rising to more than €5.3bn. The brand sold more than 1.3m cars in the past year, at the same time increasing revenue to €44.1bn.

SPORTBRAKE TO BOOST JAGUAR FLEET SALES Jaguar’s new XF Sportbrake is expected to take up a third of UK XF sales when it goes on sale in November. Based on a modified version of the saloon’s chassis, the car gives Jaguar a much-needed estate in the key corporate sector where German rivals already offer similar products. The Sportbrake will be available with a choice of four or six-cylinder engines, including the new entry-level 161bhp diesel. Pricing has yet to be confirmed, but is predicted to fall in line with rivals from Audi, BMW and Mercedes-Benz, starting at around £33,000, while boot space is equivalent to rival models. Damian Lawton, product marketing director for Jaguar UK, told Fleet World that the car continues to build on the recent addition of two four-cylinder diesel engines, which now make up more than half of all sales. But an even lower CO2 output to rival models such as the BMW 520d EfficientDynamics isn’t in the pipeline as yet.

CONFIDENTIAL

SSP CHOOSES TR FLEET Food concession operators SSP have chosen TR Fleet to provide a range of fleet and vehicle-related services. SSP, which operates a mixed fleet of 45 company cars along with cash allowance drivers, has signed an agreement that will see TR Fleet source funded vehicles using a multi-bid tendering process, and provide fleet management.

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

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...

TAILGATING RESEARCH BY BRAKE AND DIRECT LINE INTO TAILGATING... • 53% are risking deadly pile-ups on motorways by driving too close to the vehicle in front, breaking the two second rule. • 49% of drivers are tailgating more than seven years ago. • Three in ten male drivers (30%) tailgate at least on a weekly basis. • 61% of male drivers admit breaking the two-second rule on motorways, compared to 46% of women drivers.

Julie Townsend, Brake deputy chief executive, said: ‘Drivers who don’t keep their distance increase the risk of pile-ups, which can and do result in multiple and violent deaths and injuries, and devastation for the families involved.’ Source: Brake

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in association with

ELECTRIC CARS A REPORT INTO THE LIKELY TAKE-UP OF ELECTRIC CARS. • 58% of respondents who said that they are planning to buy a new car over the next two years would consider ‘going electric’. • More than three quarters (77%) of those interested were in the 25 – 34 year range and 81% of respondents lived in London. • Some 29 new cars powered by electricity are about to come on the road from manufacturers such as BMW, Ford, Vauxhall, Renault and Volvo over the next 18 months. • 83% of the people in the survey said a lack of national infrastructure would negatively affect their decision to buy an EV. David Martell, Chief Executive, Chargemaster Plc, said: ‘It is has become increasingly clear that consumers are now seriously considering purchasing an EV. The availability of more charging options will play a critical part in encouraging these consumers to make a positive decision to go electric.’ Source: Chargemaster

SALARY SACRIFICE SURVEY INTO WHY EMPLOYEES CHOOSE TO JOIN SALARY SACRIFICE SCHEMES. 41% potential savings. 32% hassle-free motoring and stability of costs that the all-inclusive schemes offer.

11% benefit to the environment.

9% choice and flexibility

5% accessibility for noncompany car drivers

2% accessibility for families

Zenith orders show that employees will, on average, choose a car with emissions well below the emission cap for a scheme, which increases their savings. Employees who select a lower emitting car will also benefit from lower fuel costs, and there is now an increasingly wider choice of fuel efficient vehicles available. Source: Zenith

SMARTPHONES Using smartphones for social networking while driving is more dangerous than drink driving or being high on cannabis behind the wheel, according to research published by the Institute of Advanced Motorists. • 8% of drivers admit to using smartphones for email and social networking while driving – equivalent to 3.5 million licence holders. • 24% of 17-24 year old drivers admit to using smartphones while driving. • When sending and receiving Facebook messages, reaction times slowed by around 38% and participants often missed key events - alcohol slows reaction time by between 6% and 15%. IAM chief executive Simon Best said: ‘This research shows how incredibly dangerous using smartphones while driving is, yet unbelievably it is a relatively common practice.’ Source: IAM

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

March 2012

LEAN vs MEAN.

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

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

JOY WINS. THE NEW BMW 3 SERIES.

Official fuel economy figures for the new BMW 3 Series Saloon range: Urban 25.4 – 57.6 mpg (11.1 – 4.9 ltr/100 km). Extra Urban 46.3 – 80.7 mpg (6.1 – 3.5 ltr/100 km). Combined 35.8 – 68.9 mpg (7.9 – 4.1 ltr/100 km). CO2 emissions 186 – 109 g/km. *Combined mpg based on BMW 320d ED model. BMW EfficientDynamics reduces BMW emissions without compromising performance developments and is standard across the model range.

BMW Corporate Sales

bmwcorporate.co.uk Tel: 0800 777 113

The Ultimate Driving Machine

COMMENT

Promising the earth, delivering not much The Insider This month, our tame fleet manager wonders if manufacturers need to buck their ideas up.

‘ looks and performance are still what the majority of end users focus on..’

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One rule for some, but not for all, is a popular complaint if we are not completely evenhanded in managing our car fleet policies. And that’s a theme which causes complaint in many walks of life. But for some reason I can’t fathom, the car industry appears exempt. If I buy an electrical appliance and it goes wrong, I can take it back to the shop and get my money back, or get a replacement with no fuss and at no charge. If my new car goes wrong, I will be told the manufacturer will consider taking the vehicle back only if it has suffered the same fault at least three times. While I wait for those three occasions to rack up, I will more than likely be without the car for several weeks at a time, during which interminable periods technical teams attempt to find the fault. And of course, while it’s off road I must find another vehicle to use. If the car is leased, I will still be paying for the rentals, as well as for the replacement vehicle. If the manufacturer is smart, and if I have a good fleet contact, then they will likely lend me something themselves, at least saving me too many additional costs. If they finally agree to take the car back then there are still discussions between the lease company, the manufacturer, and the lessee, since the car will be worth more in the books than its market value. All of this takes considerable time and effort. If I ran a sole badge fleet, maybe I’d get better treatment, being a bigger customer, but that model doesn’t suit us. Another area where cars differ from other products is in their advertising. We are being sold cars on the basis of their CO2 and, of course, hand-in-hand with low CO2 goes improved miles per gallon. Or does it? One of my pet rants is how manufacturers claim vastly over-inflated MPGs for their cars. I mean come on, even HMRC amends its Advisory Fuel Rates to real world figures these days.

The published combined rate for my own company car was 52.5mpg; well maybe, on a traffic-free flat dual carriageway with a following wind, at a constant 55mph, just after a service. Up hill and down dale it was more like 42mpg and in town, a measly 38. Yet a friend’s twelve-year-old 1.6 petrol Volkswagen Polo, which probably has zillions of CO2s, regularly achieves 43mpg on similar roads. And our driving styles are not dissimilar. So while claimed MPG has gone up substantially, my beef is that achievable consumption has not improved as much as we are led to believe. I know that the official combined test, at the very least, is supposed to provide a level playing field so you can compare like-withlike, but when that test is producing results which are way off the real-world mark, then what’s the point? That said, what would the answer be? A better test? A great big sign, as on cigarette packets, on the bottom of all advertising that said: ‘Figures claimed may be unachieveable in the real world’? Because the fact remains, if other goods were sold with such inflated claims, we’d all be rushing off to seek prosecutions under the Trade Descriptions Act! But enough berating the manufacturer. On the plus side, our cars have never been safer, and manufacturers have ploughed millions into rafts of safety features – mostly invisible. Strangely enough, to my mind it’s the one area they don’t focus on enough when selling their product, as looks and performance are still what the majority of end users focus on. As average speed cameras become the norm, and speeders are treated as the sort of social pariah previously reserved for drink drivers, maybe our preoccupation with outright performance will become less important. But then again, when was being safe considered cool?

COMMENT

Dispose with care Curtis Hutchinson You could maximise disposals by going direct to dealers, says Motor Trader editor Curtis Hutchinson.

‘Car dealers across the country are crying out for good quality ex-fleet cars’ 18

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In these straitened times cost control is king. The economic downturn and austerity have resulted in belt tightening. Everyone wants to achieve the best returns from their investments, especially those, like you, in charge of fast depreciating metal. Fortunately, most fleet managers have been ahead of the cost control curve ever since whole life costs, rather than up-front charges, emerged as the most prudent way to source cars. It’s now widely accepted that the best fleet managers run tight ships by sourcing the most cost effective vehicles, for employers and employees. Despite all this, there’s still one area where there's potential to make further savings; vehicle disposal. Your defleets, in the current climate, are potentially in higher demand than you might think. Car dealers across the country are crying out for good quality ex-fleet cars because there’s a shortage of used stock – the inevitable result of a declining new car market. If you outright purchase some, or all, of your fleet and replace vehicles after three or four years, your unwanted vehicles might currently be highly sought after by dealers desperate to satisfy a growing demand for second-hand cars as buyers increasingly switch from new to used. With demand outstripping supply, dealers are more likely than ever to view local fleet customers as wholesalers with desirable stocks. In many cases the vehicles will be known to them as they have serviced and repaired them and possibly sold them to you in the first place. So how can you, as a fleet manager, benefit from this demand? Certainly if you outright purchase and have cars coming up for termination or replacement, then have a chat with your local franchised car dealer and get them to value them as straight disposals or partexchanges. Prices are pretty solid at the moment and the valuations might actually

reflect what you think they’re worth. It's also worth considering that your local dealer might be part of a larger regional or national group. So even if you, or your userchoosers, fancy a change of brand they should be able to put you in touch with their colleagues in other branches. They will also be able to show you what the group has in terms of so-called ”nearly-new” cars. These, generally speaking, are ex-demonstrators or staff cars often acquired by dealers to hit their new car sales targets. Nearly-news are also prime contenders for reasonably priced fleet cars, having already lost some of their depreciation but only a few months old with low mileages and full manufacturer warranty cover. Perhaps think nationally, and do it yourself. There are online systems now which provide details of your defleets to dealers around the country and they have proven to be an effective way to get a good return. Alternatively, if you offer your defleets to drivers or employees first then dealer valuations could prove to be a useful means to set reasonable prices. Again dealers could play a useful role here, as many will be able to offer competitive fixed price servicing schemes and extended warranty packages, even if they do not get to remarket your cars. This might all sound like wishful thinking and it would be easy to be put off by a bad dealer experience in the past. The best dealers have upped their game and have looked outside the car sector to see how leading retailers consistently deliver customer care, with Amazon, Apple and Waitrose often cited as the role models. So, building closer relationships with your local dealers could become mutually beneficial. They need your business and should be able to pull out the stops to make sure you’re a happy customer; they know you have the option to take your business elsewhere.

COMMENT

Simple steps to boost securitised leasing Ian Dennis Ian Dennis, Business Development Manager, LPM Outsourcing, on how funding for vehicles can be increased with securitisation and standby servicing.

‘One key

confidence boosting step is the introduction of standby servicers’

The speed at which the vehicle leasing market continues its recovery from the credit crunch will depend on how quickly investor’s confidence in leasing securities can be restored. If the purchasing of ”securitised” fleet loans can be made less risky for investors, then more money can be attracted to the fleet leasing sector, and the easier it will be for you to source and fund vehicles. Secruitisations are the repackaging of vehicle loans that are then sold to investors as bonds. These enable existing fleet leasing portfolios to be taken off a lender’s balance sheet – which frees up capital for the lender to finance further commercial vehicle or fleet leases. There are some simple steps that issuers of fleet lease securities can take to improve investor confidence in securitisations and which ratings agencies are encouraging issuers of leasing loans to adopt. One key confidence boosting step is the introduction of ”standby servicers”. This ensures payments on the loans which underlie the bonds still get collected, even if the original asset finance provider becomes insolvent. Investors in securitised leases or asset backed bonds see the insolvency of the original asset finance provider as a big risk – payments might not be properly collected and the vehicle leases would rapidly lose value. Standby servicers are organisations, like LPMO, that can step in and start collecting the payments on a loan if the original servicer of those payments (e.g. a bank, finance house, special purpose vehicle or manufacturer securing a lending portfolio) becomes insolvent or is downgraded by the ratings agency. A recent guidance note from ratings agency Fitch confirmed that the absence of a standby servicer might lead to a lower credit rating for an asset backed security than normal. The ratings agencies are saying that if you want an AAA rating then you may need a

standby servicer in place. A higher rating means lower borrowing costs for everyone, including the corporate that wants to lease commercial vehicles or company cars. Our view is that the increased use of standby servicers helps improve the level of confidence that investors have in the asset backed securities market, which in turn is helping the recovery of the fleet finance market. Standard & Poors are forecasting that the global issuance of autloan related asset backed securities will increase by 6% in 2012 (year ending December 31), to $80 billion. The wider use of standby servicers means investors who buy securitised loans can be much more certain of the continuous collection of payments even if the servicer which originated the loan becomes insolvent. The disruption that would otherwise happen can be a real fear for investors in securitised loans. Standby servicers are increasingly expected to be deployed on a ”warm” basis – which means there is an obligation to provide a regular feed of data and information regarding the portfolio from the primary servicer. This means that should the standby servicer be invoked and required to step in to the management of the portfolio, then the transition is much smoother and therefore significantly faster. This will reduce the possibility of disruption to the flow of payments to those who hold the securitised loans. The next step is for securitisation deals to be done with standby servicers acting on a ”hot” basis, taking real time feeds of data from the existing servicer so that any risks of payment disruption are reduced even further. With the ratings agencies increasingly stressing the importance of the standby we expect that the use of standby servicing to become increasingly widespread among any finance provider that has ambitions to tap into the securitisation market. March 2012

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driving towards lower fleet emissions

Wednesday 18th April 2012

THE SILVERSTONE WING SILVERSTONE CIRCUIT • TOWCESTER • NORTHAMPTONSHIRE

The EV & Low CO2 Fleet Show 2012 is a one-day event at the brand new Silverstone Wing, providing fleet decision-makers and other fleet industry executives with information, advice and guidance on low emission strategies and the latest low CO2 vehicles. Organised by Fleet World in association with the BVRLA, the event consists of an Exhibition, Seminars, Live Debate and a Ride & Drive programme on Silverstone’s Stowe Circuit and on public roads.

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EXHIBITION // SEMIN

ARS // RIDE & DRIVE

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

AT THE SHOW UDING... MANUFACTURERS INCL

PEUGEOT

BMW Under its EfficientDynamics banner, BMW has become renowned for offering conventionally powered vehicles with class-leading CO2 emissions without sacrificing fuel economy. It’s a reduction which has made the 3 Series, particularly, an even more attractive company car option. The 116d EfficientDynamics, meanwhile, will become the first BMW with CO2 emissions of under 100g/km.

Peugeot was the first to offer a diesel-electric hybrid when sales began on the 200bhp, 99g/km 3008 HYbrid4 crossover last year. And the EV & Low CO2 Fleet Show marks the UK debut of the next chapter in its hybrid journey, with the 508 RXH. The Show also marks the debut for the new 208 (above) – lighter than its predecessor, this boasts a full diesel engine line-up under 100g/km, and a sub-100g/km three-cylinder petrol engine.

NISSAN

CITROËN One of the UK’s best-performing manufacturers on CO2, half of all vehicles sold by Citroën last year emitted under 130g/km CO2. As part of this range, the C-Zero battery electric city car was launched last year, and in 2012 the DS5 executive car will be its first with the 200bhp diesel-electric Hybrid4 system, which boasts CO2 emissions from 99g/km.

INFINITI Proving that fuel efficient vehicles don’t have to mean compromising on performance, Infiniti marked the launch of its 359bhp M35h by setting a Guinness World Record for being the fastest accelerating hybrid available on sale. The carmaker is also working on a range-extended electric sports car, an early version of which broke cover at the Geneva Motor Show.

LEXUS Lexus is a pioneer in luxury hybrids and offers a range that covers front, rear and four wheel drive models with Lexus Hybrid Drive. Last year, the compact CT 200h joined the range offering best-in-class whole-life costs and has proved popular with over half of all Lexus UK sales taken up by this model. In 2012, an all-new GS will arrive in the UK, with a 338bhp, almost 50mpg and CO2 emissions of 137g/km.

TOYOTA This year, Toyota’s Prius and Auris hybrid family will expand further. The seven-seat Prius+ will set segmentleading CO2 emissions of 99g/km, while the Yaris Hybrid packages a downsized version of the same drivetrain into a B-Segment model with best-in-class emissions of 79g/km. Also due this year is the Prius Plug-in Hybrid, which adds a 14 mile electric range, cutting CO2 emissions to 49g/km with combined fuel economy of 128mpg.

Designed to be as versatile as a conventionally powered C-Segment car, the Nissan LEAF’s practicality has made it a figurehead for electromobility in the UK. Its powertrain has also been employed in a racing version and the e-NV200 electric commercial vehicle, which is undergoing global real-world testing. Look out for the LEAF at the show.

RENAULT Renault will soon offer a range with every vehicle including a variant under 120g/km. But it hasn’t only committed itself to conventional technologies. Its Z.E. battery electric range launched with the Kangoo Z.E. late last year, with the Fluence Z.E. C-Segment saloon, Twizy city car and ZOE supermini due to follow before the end of 2012.

SMITH ELECTRIC VEHICLES Smith has grown to become one of the biggest global names in battery electric commercial vehicles, with both its Newton and Edison models offering large payloads, ranges of up to 150 miles and the ability to be fully customised to suit diverse needs.

VAUXHALL In May, Vauxhall will offer an all-new form of electromobility with the Ampera extendedrange electric vehicle. The fourseat car is driven using an electric motor, but uses an efficient petrol engine to stop the battery from running flat, giving a range of 300 miles with conventional refuelling to go further. It means drivers can run an Ampera as their only car. Take a test-drive at Silverstone on 18 April.

VOLVO As well as offering its entire range in fuel-sipping DRIVe guise, Swedish manufacturer Volvo is rapidly advancing its electromobility plans. The C30 Electric test fleet is recording real-world usage in Sweden, while the V60 Plug-in Hybrid’s blend of 49g/km CO2 emissions, 30 mile electric range and 285bhp performance will make it a desirable model in the corporate market when it launches later this year.

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

AT THE SHOW UDING... SUPPLIERS INCL

Wednesday 18th April 2012

THE SILVERSTONE WING driving towards lower fleet emissions

SILVERSTONE CIRCUIT • TOWCESTER • NORTHAMPTONSHIRE

ECAR CONNECTORS

ABB Swiss-Swedish technology group ABB is a globally renowned name in power and automation technologies, and is using its knowledge to develop the advanced electric vehicle charging solutions. The company offers AC regular and DC fast charge stations, and develops the required management software, servicing and maintenance and component support too.

ROLEC SERVICES Rolec Services Ltd is a globally recognised specialist in the design, manufacture and installation of indoor and outdoor electrical connection, hook-up and distribution equipment. Rolec has one of the largest ranges of equipment in the industry and is continuing to grow its distribution network. Recent expansion has included Rolec EV, a division focused on developing and manufacturing charging stations and the power distribution equipment for electric vehicles.

ENSTO With over 50 years of experience in the design and manufacture of electrical devices for outdoor use, Ensto is able to offer durable and design-conscious solutions for the electric vehicle market. The range launches with two ranges of wall and floor-mounted charging posts, catering for freeto-use or billed charging infrastructures where remote communication is necessary. These also allow for easy upgrades and maintenance at point-of-use.

SIEMENS As an integrated technology company, Siemens develops system solutions for sustainable and comprehensive mobility - for the necessary infrastructure and in the vehicles themselves. Though Siemens does not produce electric cars, it has established a separate Business Unit that develops key components for the drive train of electrically powered cars and light commercial vehicles.

SCHNEIDER ELECTRIC Recharging one's battery to 80% capacity in less than 15 minutes is possible with global energy management specialist, Schneider Electric's quick charging solution, which fits just as easily into a service station as into a vehicle fleet car park, and is suitable for any type of electric vehicle.

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Ecar Connectors is a new brand name for the electric vehicle industry, developing and manufacturing charging cables, sockets and connectors for this emerging market. The company also offers a Wall Pod, a compact electric vehicle charging unit for home or office use. Part of Essex-based electrical component manufacturer, importer and distributor Foremost Electronics, the company will be demonstrating its range of charging accessories at the show.

INCHCAPE FLEET SOLUTIONS Fleet management and vehicle leasing company Inchcape Fleet Solutions has a history stretching back over 50 years. Part of Inchcape Plc, which owns one of the UK’s largest franchised dealer groups and manages a fleet of 50,000 vehicles nationwide from its headquarters in Portsmouth. Last year, the company signed its first leasing agreement for a fleet of electric vehicles, arranging four Mitsubishi iMiEV pool cars for Edinburgh-based Jewel & Esk College’s city-wide trial. It has since agreed to provide servicing and maintenance for a fleet of Nissan LEAFs employed by the National Grid for use in London during the next four years.

CENEX Established with the support of the Department for Business, Innovation and Skills, Cenex is the UK’s first Centre of Excellent for low carbon and fuel cell technologies and was set up to promote market development of these for transport use.

THE SPONSORS... ENERGY SAVING TRUST The Energy Saving Trust (EST) is a social enterprise, set up to give businesses and consumers impartial advice about saving energy and money at home and work. Its fleet consultancy service helps businesses to choose suitable low carbon vehicles, drive them more efficiently and use them less. Businesses are assessed and certificated based on their environmental performance, with those showing the biggest savings recognised at the EST’s annual Fleet Hero Awards.

VENSON Venson is one of the UK’s largest independent fleet solution experts and boasts a 98% retention rate for its customers credited to its tailormade services. The company offers bespoke ride and drive events to help drivers sample new products, and offers a comprehensive portfolio including accident management, fuel card and daily hire solutions to suit fleets’ individual needs. Venson is the sponsor for the show’s ‘Question Time’-style debate sessions, aiming to encourage impartial discussions about EV uptake in business users and alleviate any concerns.

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

DRIVEN

Volkswagen Passat Alltrack For those whose work takes them off road, will the Alltrack prove a useful tool? Steve Moody finds out. SECTOR Upper-medium estate PRICE From £28,500 FUEL 47.9 – 49.6mpg CO2 150 – 155g/km What is it about cars that have had a spot of beefing up that makes them so much more appealing? In the Passat Alltrack, Volkswagen takes the fairly undemonstrative Passat Estate, adding a few splashes of stainless steel and body cladding to give it a more off-roady look. The result is a very handsome thing, with some more than useful capability, that should appeal to drivers whose work takes them off the beaten track – surveyors, architects, vets and engineers are the types who will find the Alltack right up their lane. These include stainless steel-look front and rear underbody protection panels (backed up by a steel-plate underbody engine guard) and flared side sills, as well as matt chrome roof rails, window surrounds, grille and exterior mirror casings. The result is a very classy looking machine. With the ride height raised from 135 to 165mm, and the bumpers styled to increase the angles at which it can approach and leave hills, the Alltrack has been given extra off road capability. This applies to the drivetrain too, which uses Volkswagen’s 4Motion system. In most normal situations, the front axle is driven, with only 10% of propulsive power going to the rear axle, saving fuel. But should the conditions dictate, almost 100% can be sent

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to the rear axle. To aid its capability in the rough stuff, the Alltrack has hill descent assist, while ABS is also altered, to provide better braking on loose surfaces, and the car has faster-reacting electronic differential locks to prevent wheelspin. In the UK, the Passat Alltrack will be available as a 2.0-litre TDI 140bhp with six-speed manual gearbox or a 2.0-litre TDI 170bhp with six-speed DSG transmission. Standard equipment includes Alcantara upholstery, 2Zone electronic climate control, cruise control, touch screen satellite navigation, iPod connectivity, Bluetooth and 18-inch alloys. Open for ordering from April, with first deliveries in July, prices for the Alltrack are expected to start around £28,500 on the road. That makes this a pretty expensive car, being only about £3,000 less than the leading vehicle in this sector, the Audi A4 Allroad, and £6,000 more than the smaller, more workman-like Skoda Octavia Scout. That said, the Alltrack has a better, more spacious cabin than both cars, but for a company wanting some level of off-road capability then the Skoda wins while premium buyers will plump for the ubiquitous Allroad. There are myriad options including High Beam Assist, which automatically controls dipping of the headlights; Side Scan Lane

Change Assist – which monitors the vehicle’s blind spot – Lane Assist, ACC Adaptive Chassis Control, Automatic Distance Control with City Emergency Braking function, Park Assist and an electrically deployed towbar. Vital to this market is towing capacity, which has been increased to 2,000kg, compared to 1,800kg for a standard Passat Estate, while the trailer stabilisation function detects the force of a trailer swaying and eliminates it by specific interventions of the braking system and engine. The result is a car with decent – rather than amazing – off-roading capability, that is also surefooted on-road. It drives as every other Passat; easy to live with, quiet, refined and comfortable without ever threatening to be exciting. And, even with the added encumbrance of four-wheel drive, CO2 emissions for both manual and auto models still dip below that vital 160g/km level.

verdict Classy, handsome and usefully capable, the Alltrack is a fine addition at the top of the Passat range. It is on the pricey side though, and quite how much market there is that isn’t already taken by A4 Allroad and Octavia Scout remains to be seen.

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OPTIMA THE FINAL PIECE OF KIA’S FLEET PUZZLE 011 was a landmark year for Kia, as the continued range-wide product offensive contributed to global sales topping 2.4 million for the first time – figures which put the carmaker a step closer to its target of becoming one of the world’s ten biggest carmakers by the end of this year. The latest addition to the range is the desirable Optima, a coupe-like DSegment saloon built for the business user. Offering a stylish alternative to the segment’s mainstream models, it features Kia’s latest award-winning design language, with a prominent ‘tiger nose’ grille and a sophisticated, upmarket feel that extends from the driver-focused dashboard to its sleek body lines. Available now, the range starts at a

competitive £19,595, with four wellequipped trim levels to make it an easy addition to ﬂeet choice lists. All are powered by Kia’s proven 134bhp 1.7-litre CRDi engine with the latest EcoDynamics fuel-saving technology (on manual transmissions) and CO2 emissions starting at 128g/km, while useful features such as Bluetooth, air conditioning and cruise control are included as standard. Like the rest of the Kia range, the appeal for ﬂeets couldn’t be simpler. Aiming to make life as easy as possible, Optima is available for

It’s no wonder Kia is becoming the carmaker of choice for UK fleets

convenient seven-day test drives and comes backed by an industry-leading seven year, 100,000 mile bumper-tobumper warranty. Not only is it a sign that Kia believes in the long-term reliability of its products, but this fullytransferrable warranty has helped boost residual values too. And to make sure drivers are kept moving, a year’s KIAssist roadside assistance is included as standard. Optima joins a range that has enjoyed massive ﬂeet success recently, with a 56% uplift in UK sales last year as more drivers found out just what makes our cars so appealing. Offering a range that caters for all needs, from city cars to large SUVs, it’s no wonder Kia is becoming the carmaker of choice for many UK ﬂeets.

Contact the Kia Business Centre t 0845 121 0833 w kia.co.uk/ﬂeet

DRIVEN

Ford Focus 1.0 EcoBoost Ford’s heavily downsized petrol engine is a real game-changer, says Alex Grant. SECTOR Lower-medium PRICE £16,245 – £21,845 FUEL 56.5 – 58.9mpg CO2 109 – 114g/km Despite the tendency for glittering concept cars to steal the limelight, it’s the massmarket cars which often have the biggest role to play in changing customer perceptions of new technology. Cars such as the Focus, a mainstay on roads the world over, and the first mass-market C-segment car to get a battery electric drivetrain next year, are vital for exposing the masses to new ways of thinking. But an electric Focus is still a niche player, and what’s less reported is that the current model is going to introduce massive downsizing to the biggest sector in the European market in the form of a 1.0-litre, three-cylinder engine. It’s cubic capacity which, until now, has been a total unknown in a car of this size. This isn’t an attempt to introduce a low price point to the Focus range though. Instead, the newest and smallest member of Ford’s EcoBoost family is a very convincing alternative to some of the car’s core engine choices. It almost matches the 1.6 non-turbo petrol for power, but with more torque and up to a 20% improvement in CO2. So low are its emissions that the 123bhp version is only 5g/km worse off than the less powerful, and £850 more expensive, 1.6 TDCi. That’s not to say Ford won’t have some

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difficulties getting customers’ heads around the idea of a 1.0-litre Focus, but it does present an interesting case for itself. Diesel engines are still a recent addiction for the British motorist, particulate filters can be a real headache in inner-city use and complying with the forthcoming Euro6 emissions standards will widen the price gap between the petrol and diesel motors. With a 10p per litre difference at the pumps, it adds up to make this a very well-timed addition to the Focus range. It’s an impressive piece of engineering, too. The block is small enough to fit onto a sheet of A4 paper, and the engine weighs 97kg without ancillaries, which is 40kg less than a 1.6-litre diesel engine. Refinement has been boosted by an unbalanced flywheel, which cancels out some of the usual three-cylinder rumble. Most drivers won’t notice its tiny capacity on the road. The engine managed to pull almost from idle speeds without labouring too heavily, and tackled steeply rising mountain roads without feeling like a Shetland pony pulling a Sherman tank. This isn’t a unit that’ll set finger tips tingling, but even in the estate it doesn’t feel like a downgrade. It’s certainly preferable to the old 1.6-litre engine, which took a heavy right

foot to find its sweet spot. By comparison, this serves up a respectable shove of mid-range torque with a slight growl from under the bonnet as the only giveaway that it is missing a cylinder. Unfortunately, by proving its ability on mountain roads, Ford didn’t give much of an opportunity to show off its fuel economy. But for short stretches of relaxed driving, the trip computer very easily shot into the low 50s suggesting it wouldn’t be impossible to wring out respectable efficiency in real-world use. Ford is actually so confident about the engine that it’s considering fitting it to the Fiesta and, more notably, the Mondeo, as well as the B-MAX and C-MAX compact MPVs. It’s a combination that’ll take some real explaining to fleet drivers, but any fears will quickly be put aside after a test drive.

verdict The 1.0 EcoBoost has the potential to spearhead a petrol revival by offering diesel-like running costs without the additional cost of fuel and the car itself. Ford is predicting 30% of UK sales will be fitted with this engine, which is ambitious but achievable if it can get drivers behind the wheel.

inspired offers

INFINITI M35 HYBRID STRONG FIGURES DRIVE THIS CAR (Such as 0-62mph in 5.5 seconds, 40.9 MPG, 364 PS, 159 g/km of CO2, BIK Tax Band 22%*)

The Infiniti M35 Hybrid is the most powerful model in the Infiniti M range. It’s also the most eﬃcient, which makes it the perfect vehicle for the fleet and business market. This is luxury and eﬃciency without compromise.

To arrange a demonstrator, or to request contact from Infiniti Fleet call 0800 285 1711, or email infiniti.fleet@infiniti.eu

Cars are available in limited numbers for immediate delivery.

infiniti.co.uk/m/hybrid

NOW AVAILABLE FROM

Infinitieurope 0800 285 1711

PER MONTH (EXCL VAT)

*Tax year 2012/2013. **BUSINESS USERS ONLY. All prices exclude VAT. Prices valid subject to no change in manufacturer prices, residual values or interest rates. Contract Hire is available subject to status and conditions on eligible vehicles ordered before the 31st March 2012. Guarantees and Indemnities may be required. All examples based on 3+35 profile 10,000 miles per annum on a non-maintained contract. Further charges may be made subject to mileage and condition. Excess mileage will be charged at 2.3 pence per mile (excluding VAT). Subject to vehicle being returned within mileage and in good condition. Additional rentals in advance may be required. Contract Hire Finance provided by Arval UK Limited, Windmill Hill, Swindon SN5 6PE. Models shown for illustration purposes only. Information correct at time of going to print and subject to change without notice.

Model displayed: Infiniti M35 Hybrid. Oﬃcial fuel economy figures for the Infiniti M35 Hybrid in mpg (l/100 km): urban 31.4 (9.0), extra urban 50.4 (5.6), combined 40.9 (6.9). CO2 emissions: 159 g/km.

DRIVEN

Hyundai i30 The new i30 has a hard act to follow but more than fills the old car’s shoes, says Alex Grant. SECTOR Lower-medium PRICE £14,495 – £20,795 FUEL 41.5 – 76.3mpg CO2 97 – 145g/km It’s almost five years since the outgoing i30 first arrived in the UK, and the car has achieved an impressive sales record since. Unusually, it’s managed to grow its UK sales each year since launch, with the originally European-market model extended to markets all over the world, including Korea and the United States. So it’s built a decent platform for the all-new car to work with, but also is a tough act to follow. It bodes well that the new car is a huge step forward in every respect compared to its already able predecessor. Whereas the last model had a distinct family resemblance to the Kia Cee’d, both manufacturers have worked hard to give the replacements their own identity. In the i30’s case, this has meant fitting the flared arches and hexagonal snout from the i40, which translates better here than it does on the facelifted i10. There’s a similar story inside. The old i30 had designs on offering European interior build, but ultimately fell slightly short of the mark. Its replacement has a functional but visually appealing dashboard, with a step up in build quality that makes it feel like it’s skipped a generation. This is now every bit as well-designed and well-finished as a European car, and incredibly spacious both front and rear. Engine choices are strong too, comprising

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two petrols at 1.4 and 1.6 litres, and a 1.4 and two 1.6-litre CRDi turbodiesels. Hyundai predicts the 1.6 CRDi will be the most popular of the pack, and appears to have spent the most time getting this one right. Unusually, both offer lower CO2 emissions than the 1.4 thanks to the addition of the Blue Drive package, including low rolling resistance tyres, a stop/start system and alternator management, which charges the battery only during deceleration or times of reduced engine load. As a result, the 109bhp version offers some of the lowest emissions in its class at 97g/km, while the 126bhp engine returns a no less impressive 100g/km with a manual gearbox. Coupled with Hyundai’s five-year warranty, roadside assistance and health check package, the manufacturer says the i30 will offer the lowest ownership costs in its segment, just like the larger i40. The lower-powered version certainly doesn’t drive like an eco car. Hyundai benchmarked refinement against the sectorleading Volkswagen Golf, and it shows. The engine is incredibly quiet while cruising and not much more vocal when accelerating hard, which is impressive for such a small diesel. And it’s plenty perky enough, too. There’s enough torque to make confident overtaking manoeuvres, and it’s happy to zip up to

motorway speeds. Even the engine restarts while in traffic aren’t as jarring as some others in its class, and with a much slicker gearbox than the old i30 it’s rubbing shoulders with plenty of European rivals. Options are well matched to the step up in quality. All models get Bluetooth connectivity and voice recognition with steering wheel audio and phone controls, as well as Hyundai’s stylish swooping LED driving lights and front fog lamps. Three of the four trims also feature Flex Steer, with switchable steering weights operated off the wheel itself, exactly where the button ought to be. Like the i40, this is a very credible offering in a tough segment. And whereas the old model had traces of tacky Korean plastics inside, the new i30 finally feels up to the job of taking on the Europeans. If its predecessor’s record is anything to go by, it shouldn’t have a problem on its hands.

verdict It’s become very difficult to find deal-breaking issues with the i30. Hyundai’s front end won’t appeal to everyone, but this is otherwise a solid, European-feeling car with very competitive ownership costs. Another sign that mainstream manufacturers have a lot to worry about in the latest Korean products.

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

a star

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

TWINAIR

superstar as standard facebook.com/FiatUK

fiat.co.uk

Fiat, the car brand with the lowest average CO2 emissions in Europe†. Fiat 500 TwinAir, the lowest CO2 emission petrol car engine in the world*. Fuel consumption for Fiat 500 TwinAir in mpg (l/100km): Urban 57.6 (4.9); Extra Urban 76.3 (3.7); Combined 68.9 (4.1). CO2 emissions 95 g/km. Above rentals based on Fiat 500 TwinAir on Contract Hire payment profile of 3 rentals in advance (equivalent to £477) followed by 35 monthly rentals of £159. All rentals exclude VAT and maintenance. Based on 10,000 miles per annum. Excess mileage charges apply. Vehicles must be registered with Fiat Contract Hire before 31st March 2012. Offer subject to status, a guarantee and/or indemnity may be required. Offer correct at time of going to press and may be varied or withdrawn at any time. Subject to availability. Fiat Contract Hire, 240 Bath Road, Slough, SL1 4DX. ▲Under current DVLA regulations there is no charge for vehicle excise duty in the first year of registration and every subsequent year. Vehicle Excise Duty rates are reviewed annually by the government and are subject to change. †Source: JATO Dynamics. Based on Volume-weighted average CO2 emissions (g/km) of the best selling brands in Europe, year 2010. *According to NEDC standard.

DRIVEN

Peugeot 508 RXH The diesel-electric 508 RXH promises to do a bit of everything. Can it deliver, Danny Cobbs wonders. SECTOR Upper-medium estate PRICE £33,695 FUEL 68.9mpg CO2 107g/km Peugeot promises the new 508 RXH will offer company car drivers a rather clever diesel-electric hybrid with the frugality of a supermini, premium-brand quality and all the practicality of a mid-sized, all-wheel drive estate car. Quite a lot to live up to then. Based on the 508 SW, the RXH has a 2.0-litre HDi 161bhp diesel engine where you’d expect to find it, under the bonnet driving the front wheels, and a 27kW (equivalent to 37bhp) electric motor mounted over the rear axle to take care of the back wheels. The result is claimed fuel consumption figures of 68.9mpg, with CO2 emissions rated at 107g/km – adding up to a BiK tax bill of £135 per month for a 40% taxpayer. Peugeot is well aware of its corporate appeal – when the 508 RXH goes on sale in May, Peugeot has only earmarked 1,000 models for sale in the UK, with 85% of those expected to end up in the fleet market. Pricing and trim levels are simple – the RXH fills the same niche in the 508 range as the RCZ does for the 308. So only one highly-specced derivative is available and, at £33,695, this presents the issue of it being a volume brand car with the price tag of a 5 Series or A6 estate. It’s also more expensive than the similarly sized A4 Allroad or Passat Alltrack, at the front end at least. But demand so far has been promising.

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Peugeot launched the RXH in a low-volume and even more generously equipped Limited Edition version, and the 29 vehicles allocated to the UK sold out quickly. Drivetrain aside, the recipe is fairly similar to other pumped-up estate cars. Peugeot has given its offering lots of body cladding and raised the ride height by an extra 50mm, presumably to emphasise its visual appearance as a near-go-anywhere vehicle (which, incidentally, it is), making it very handy for those with jobs that require a modicum of off-road work. It is also kitted out with an interior of an extremely high, premium standard – it all seems to have been bolted together by someone who actually cares and knows what they’re doing. Peugeot really has made huge leaps forward in this respect. The hybrid system, the same found in the recently launched 3008 HYbrid4, allows the driver to choose between one of the four engine management settings – electric power only, fully automated, 4WD and a sports mode – the car seamlessly switches from electric to diesel, or both, when the need arises. So what’s not to like about this car? Well, not much, other than the way it drives. The big problem isn’t the 110kg extra weight, mostly attributed to the bank of batteries

which have been secreted away under the cargo area. Nor is it the weight of the electric motor. The burden of being this much heavier actually works in its favour; it feels much more hunkered-down to the road than its non-hybrid brother. Where the problem lies is with the six-speed electronically controlled manual gearbox. It chooses the gear it thinks it should be in, selects it, then decides maybe it needs another, and then has a rethink, which results in it thinking it was correct in the first place and changes again. It’s jerky and tiresome and you end-up driving around the EGC rather than leaving it to do its own thing. Peugeot will argue that the EGC unit is lighter than a ”normal” auto transmission and because it’s also more technically advanced too it’ll save over 10g/km of carbon emissions. Nonetheless, the EGC still remains the only obvious fly in the RXH’s ointment.

verdict The 508 RXH does have its flaws, but only when being compared to other non-hybrid cars. It still delivers big savings in BiK, and until the one, definitive, alternative-fuel system car arrives this is probably the best, and most versatile, stopgap on the market.

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DRIVEN

Skoda Citigo The third of VW Group’s near-identical city cars might be the best, says Danny Cobbs. SECTOR City car PRICE £7,650 – £10,000 (approx.) FUEL 68.9mpg CO2 96g/km

DRIVEN IN BRIEF

As a group, Volkswagen has a deft knack of intercompany sharing, but never has it been as blatant as it is with the new Skoda Citigo. Because, for all the hoopla and chest beating from the Skoda spindoctors, the Citigo is basically a re-badged Volkswagen Up!, or SEAT Mii.

Mechanically, nothing has been altered between the three models. The Citigo looks closer to the SEAT than the futuristic Volkswagen with its all-glass tailgate, but the cosmetic changes give it its own identity, including Skoda’s classy new grille treatment. Thankfully none of the funkiness of

Chrysler Delta 1.6 Multijet SE

A4 Allroad 2.0 TDI quattro

Lancia’s flamboyant Italian styling is an odd match for the Chrysler badge, but the Delta otherwise shapes up well. Based on an extended version of the Fiat Bravo platform, it offers massive rear legroom and a spacious cabin let down only by some prominent use of cheap plastics. The engine is smooth and responsive, too, averaging near 50mpg with respectable on-road performance. But this isn’t a car to be rushed, with its comfort-tuned suspension being a little soggy through corners. For those who like the styling and want an unusual alternative to a conservative segment, it’s not a bad choice. AG

With Peugeot and Volkswagen both having a stab at the go-anywhere estate market, it was good timing that the leader in the field, the A4 Allroad, was included in the range refresh. An extremely handsome car, and immensely classy too, it still looks the thing most likely to suit an active lifestyle. Revisions to the outside are subtle, while inside technology that turns the car into a wireless hot spot is useful. The cabin is a bit cramped though. A new steering system and efficiency mode for Audi Drive Select, make the car more economical too. Drivers wanting estate practicality and off-road ability will find this is still the best in class. SM

SECTOR Lower-medium PRICE £19,195 FUEL 60.1mpg CO2 122g/km

SECTOR Upper-medium PRICE £31,375 FUEL 38.7 – 46.3mpg CO2 159g/km

fleetworldgroup.co.uk

the Up! has been lost in the transition (infernal exclamation mark apart), so the Citigo is a very commendable small city car. It is a timely reminder where the industry sees the future; in super-efficient cars for urbanites who will rarely venture away from their city habitat. And it lives up to its remit. Although there will be a choice between a three or five-door version, the 1.0-litre, three-cylinder, petrol engine will be the only on offer. There will be two power outputs though, either 60 or 75bhp, and it’s the smaller out of the two which is the better overall drive, emitting the lowest CO2 emissions (96g/km) and being the most frugal, returning just 68.9mpg. On paper, its performance figures may seem a little slow – 0-62mph in 14.4 seconds with a top speed of 99mph, but it serves up enough go not to feel lifeless, and once it does get up to speed it will more than happily cruise along a motorway. The interior isn’t the most enchanting Skoda has ever produced, yet it still has the capacity to easily accommodate four people and a certain amount of their luggage too. Prices won’t be announced until nearer its on-sale date in June but it is expected to sell for less than its VW Group cousins and will feature more standard equipment. Which surely makes it the best of the lot?

Mercedes-Benz E220CDI BlueEFFICIENCY Saloon Executive SE Manual When this generation of E-Class was launched, it felt like quite a step forward from the one before. Now, it is ageing rather rapidly. Unfortunately, the saloon’s ultra conservative, almost retro styling, isn’t serving it too well. Also, Mercedes-Benz seems to be in a perennial catch-up situation on emissions, and this continues with this ”business special” model, which emits 133g/km – way off the 119g/km of a 520d Efficient Dynamics. And with a manual gearbox, it doesn’t feel very classy. Buy an auto estate version and you have a much better car. SM SECTOR Large executive PRICE £30,995 FUEL 56.5mpg CO2 133g/km

COVER STORY Insurance

THE BLAME GAME The rise in no-win, no-fee injury claims has caused fleet insurance prices to rocket, but a cosy financial arrangement between insurers and legal firms is only making matters worse. Julian Kirk investigates.

fleetworldgroup.co.uk

When company car driver David Jones (not his real name) was involved in an accident, he was left with a written off Volkswagen Golf and a sore shoulder and thumb. Relieved to have walked away from what was a high-speed, heavy impact crash on a motorway, he got on with the process of informing the insurance company and sorting out all the details. That, he thought, would be the end of the matter - the insurers would sort out who was at fault and the claim would be resolved. Not many years ago, that would have been the case, but no sooner had Jones informed the insurer of the accident than he received a phone call from a firm of solicitors who wanted to take up his case and arrange a medical examination. Suddenly, Jones was being sucked in to the ‘no-win, no-fee’ claim culture – that sore shoulder would be classified as whiplash after a less-than-stringent ‘medical’, the solicitors between the parties would fight it out and he would receive some compensation. All of it with no risk to himself. That, in a nutshell, is the great big mess that the insurance industry now finds itself in – a merry-go-round of parties all looking to take some profit out of a motorist’s misfortune. It’s also where the insurance companies have tried to place the blame for the fact they have had to put up their prices so much in recent years – a 12% increase in premiums, including fleets, between 2009 and 2010 and a further 9% rise last year, according to figures from the Office of Fair Trading. Unfortunately, this doesn’t hold much water, especially since Parliament got involved through a Transport Select Committee established to ascertain why motorists are paying so much more for their insurance (an average increase of £90 per policy) when the number of accidents on Britain’s roads is actually falling (Department for Transport statistics for 2010, the latest full-year figures available, show a 6% drop in reported RTA casualties and a 17% reduction in fatalities). The main problem is referral fees, money paid by claims management companies/ legal firms to insurers for information on accidents – this is paid almost as an introduction fee so the motorist who may be injured gets sucked into the legal system and makes a personal injury claim.

As an example of mixed-up thinking, referral fees are essentially insurance companies inviting law firms to sue them. Most insurers (three cheers for AXA, the only major insurer which has banned referral fees, claiming they are ‘immoral’) will sell details of their clients who have been involved in accidents to law firms or claims management companies. At an average of £800, according to a Parliamentary report prepared in August 2011, referral fees are a nice earner for insurance companies. Conversely, it also ends up costing insurers eventually when they have to pay compensation (plus associated costs such as inflated third party repair costs and credit hire vehicles – see p.43). Even the Association of British Insurers, the voice of the UK’s insurance industry, wants to see referral fees banned. Nick Starling, its director of general insurance, said: ‘Referral fees should be banned altogether and not just made more transparent (as the Transport Select Committee suggested) – and that ban should apply to all organisations receiving them, not just insurers. Banning referral fees and, crucially, reducing legal costs will improve the situation for customers. ‘It is absolutely critical that Britain’s whiplash epidemic is tackled once and for all, and the Select Committee’s acknowledgement that the bar to receiving compensation for whiplash is too low is a step in the right direction.’ The ABI also wants to see action on legal fees associated with injury claims, something it has labelled ‘unaffordable, unsustainable and unacceptable’. It estimates that drivers are now paying the equivalent of £1,666 per minute in legal fees in settling low value motor personal injury claims of up to £10,000. Labelling the current compensation system ‘dysfunctional’, the ABI also believes that a ban on referral fees will enable solicitors’ fees to be reduced to more realistic levels, with the knock-on effect being lower insurance premiums for fleets. This is the outcome which was agreed last month when David Cameron hosted a meeting with representatives of the insurance industry: insurers pledged to pass savings on to customers following a Government

It is absolutely critical that Britain’s whiplash epidemic is tackled once and for all

March 2012

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COVER STORY Insurance

commitment to reduce the current £1,200 fee that lawyers can earn from small value personal injury claims. There was also a commitment to adjust premiums to reflect any reduction in legal costs created through the Jackson reforms (a series of measures suggested by Lord Justice Jackson which include lawyers no longer being able to recover success fees and after-the-event insurance from losing defendants, plus success fees capped at 25% of damages awarded in personal injury cases, as well as the banning of referral fees). But while the Government has stated that referral fees will be banned, it has recently announced that the implementation of the Jackson reforms will now not take place until April 2013, and even then it has to go through the Commons and House of Lords as part of the Legal Aid, Sentencing and Punishment of Offenders Bill. So, from April 2013, referral fees will go and the whole market will be ethically and financially corrected, right? Well, not quite, because the proposals as they stand feature significant loopholes, and if any profession is adept at finding loopholes, it’s the legal industry which itself has a lot to lose if referral fees are banned. Richard West, head of the liability division at major law firm Kennedys, believes law firms could seek to pay to receive “services” in receipt of injury claim case referrals. ‘Such firms would therefore receive ‘for free’ the claimant injury cases,’ adds West. Such services which might be used as ‘payment’ include training, risk management assistance and business consultancy from those referring the claims. It would appear that the adage of “where there’s a blame, there’s a claim” will still ring true, no matter if and when the Government takes action.

So, from April 2013, referral fees will go and the whole market will be ethically and financially corrected, right? Well, not quite...

fleetworldgroup.co.uk

WHIPLASH: A real pain in the neck Whiplash accounts for 70% of motor insurance personal injury claims in the UK, according to figures from the Transport Select Committee, and there’s a good reason why: whiplash is very hard to prove as a real injury. Whiplash has no concrete medical symptoms that doctors can diagnose; instead it relies on injured drivers saying they’ve got it. This has fuelled the growth in claims over the years, many of them spurious, as people seek compensation through no-win, no fee legal firms. According to Government data, the NHS spends around £8 million a year in treating whiplash and other soft-tissue injuries, yet insurers pay out approximately £2 billion in compensation for the same conditions. The Government wants to raise the burden of proof in these cases and is about to embark on studies that will examine the evaluation of muscle damage following a typical low impact road traffic accident. A spokesman said: ‘New medical developments and also broader expert opinion on the possibility of whiplash at low speeds or below certain force levels should be examined. These have the potential to deepen our understanding of minor soft tissue injuries. ‘The burden should then switch to the claimant to prove that an injury exists, rather than an insurer having to disprove it. In practice, it is simply too easy for a claimant to secure a medical report stating that they are suffering from whiplash – the doctor has no means by which to prove or disprove, so medical certificates are provided with minimal investigation.’ Ultimately, the Government wants a fairer system whereby people with real injuries caused by the actions of others are compensated, but fraudulent claims are filtered out.

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COVER STORY Insurance

REFERRAL FEES: time to question the elephant in the room There has been a lot of heated debate surrounding the proposed banning of referral fees, and with the rising cost of motor insurance at the forefront of everyone’s mind it is little wonder why. The subject has evoked strong emotions within the trade, in parliament and amongst consumers. So why should ﬂeet managers care about the debate surrounding referral fees, and what must be done to ensure their business is prepared for upcoming changes?

The public debate Before we look at the impact on fleets and the possible solutions, and the alternatives now being considered, it is worth investigating what has been generating this debate, particularly amongst politicians and the general public. Referral fees are widely associated with excessive and disproportionate legal costs in injury claims. The fiery public outrage is being fuelled by stories of profiteering by claims management companies (CMCs) and others selling injury claims to no-win nofee solicitors. The widespread belief seems to be that this is driving up the cost of claims and therefore driving insurance premiums through the roof. In fact the truth is slightly more complex. It is certainly true that the trade in referral fees has encouraged CMCs and others to persuade people to make claims, and that this has almost certainly led to an increase in exaggerated and fraudulent claims. This is an example of referral fees at their worst and those profiteering in this way need to be driven out of the market. On the other hand most solicitors’ fees are fixed and are not increased by high referral fees. So the real need is to reduce the level of fees that solicitors can charge. This has now been recognised by the government and we must wait and see where the level ends up. Wherever it does, it is likely to be lower than it is at present, which means that there will be less money in the pot to pay referral fees. This could create enough downward pressure on the level of referral fees paid and could actually take the heat out of the debate and make it less profitable for CMCs and others to stay in the market. Indeed there is already some evidence of retraction in CMC activity – clearly those who have seen the writing on the wall – and this is welcomed.

What this means for fleets and brokers A number of fleets, fleet management companies and brokers have relied for some time on revenues from referral fees, either directly or indirectly. There will almost certainly be a significant reduction in these revenues following any legislation restricting the levels of solicitors’ fees or referral fees. Some see a solution in Alternative Business Structures (ABS) under the new Legal Services Act. The Act allows ownership of law firms for the first time by non-lawyers. The basic theory is that if a referral fee can’t be earned, then a share in the profits of the law firm that handles the claim is just as good. However, as we have seen, the level of fees solicitors can recover is likely to be significantly reduced – so this is unlikely to be the attractive solution it was once thought to be. Also, the politicians have spotted the profit share move and are looking at how this loophole may be removed. In addition ABSs are complex businesses to set up. Given these complexities and reduced profit levels, how attractive is it really for brokers/fleets to get involved in running a law firm?

A solution from within? It may be necessary for commercial brokers to find solutions for their fleet clients through a different approach. The smarter way may be to look at how claims costs can be minimised, not maximised. This brings cost savings on two fronts: reduced claims costs and lower insurance premiums. Fleets and brokers have substantial unused ‘claims capital’. They are the source of vast numbers of fault and non-fault claims. This gives them an opportunity to intervene to find ways of reducing costs, thereby creating a valuable asset that can be used in renewal negotiations with insurers. Improvements in claims also has a major side effect of improving efficiencies in operations, being better for customers and also helping to bring motor premiums down in the wider market. Some brokers and fleet managers have already spotted this and are turning their back on referral fees in favour or more pro-active intervention and the use of mediation and non-credit hire solutions to reduce claims costs. This may well be the angle that the more tuned-in fleet owners may want to explore.

Peter Ashdown-Barr is Founder Director of InterResolve and is regularly consulted by brokers and others on innovative solutions surrounding claims issues.

fleetworldgroup.co.uk

COVER STORY Insurance

THE BLAME GAME...

Rival insurance companies have an incentive to carry out practices which allow them to generate revenues through referral fees

fleetworldgroup.co.uk

Telematics is playing its part in providing data which can reduce costs through the use of in-car monitoring devices

Credit Hire and third party vehicle repairs While the Transport Select Committee has been expressing its outrage at referral fees and spurious injury claims, another Government body has been carrying out a parallel investigation into another area of the insurance market. As a result of its study, the Office of Fair Trading ‘has reasonable grounds for suspecting that there are features of the UK’s motor insurance market that restrict and distort competition relating to the provision of third party vehicle repairs and credit hire replacement vehicles to claimants’. There are two areas of key concern. Firstly, the insurance company responsible for meeting a third party claim for a credit hire replacement vehicle and/or vehicle repairs appears to have only limited control over the choice of provider and also finds it difficult to assess the extent to which costs claimed are reasonable. Secondly, the rival insurance companies (and brokers and credit hire providers) have an incentive to carry out practices which allow them to generate revenues through referral fees, while simultaneously inflating the costs that the third party insurer has to meet. The OFT says that in 2010, the average cost to insurers of replacement cars from specialist companies was between £1,200 and £1,500. But the OFT claims a more realistic cost should be in the region of £400 to £600 if insurers had arranged likefor-like replacement cars themselves. The OFT’s senior director of services, infrastructure and public markets, Sonya Branch, said: ‘ Our concerns relate to the provision of third party vehicle repairs and credit hire replacement vehicles to claimants, where we suspect companies may be competing to extract money from each other rather than keeping premiums as low as possible. ‘By carrying out this study, we aim to clarify whether a market investigation reference to the Competition Commission is appropriate.’

How to avoid rising costs As in other areas of the fleet industry, telematics is playing its part in providing data which can reduce costs through the use of in-car monitoring devices. The AA is the latest company to launch black box technology through its Drivesafe product to monitor driver behaviour and assess insurance premiums based on specific driver data, rather than the more vague system of vehicle type, driver age and location. The AA is not alone; other providers of in-car insurance telematics include Cobra UK, TomTom Fair Pay Insurance, Insurethebox, MyDrive Solutions and Co-Operative Smartbox. All offer insurance premiums based on driver performance, generally through a points-based system whereby speeding and hard cornering lose points whereas safe, economical driving gain points. Cobra UK managing director Andrew Smith, believes telematics-based insurance could be at the heart of fleet insurance industry reform. He said: ‘ Simply changing the focus from car-based to driver-based insurance will not only be an effective way for fleets to reduce costs, but improve driver safety.’ Using data from your accident management provider can also increase your bargaining power when renewing insurance cover. Alphabet Accident Management says its monitoring of claims typically result in a 40-50% reduction in third party claims costs. Alphabet COO Matt Sutherland said: ‘68% of the fleets that were independently surveyed for the Alphabet Fleet Report said their insurance costs did not rise last year. That is a striking testament to the benefit of managing accident costs effectively.’ Total Accident Management’s opera-

tions director, Amanda Mullans, agrees, saying that the information generated through managing accidents can provide benchmark data by which fleets can identify areas of concern through exception reporting. The BVRLA is also using the data its members generate to try and reduce insurance costs – a pressing concern for its self-drive rental members, some of whom have seen premiums nearly double (some have even been refused cover). The association has set up an insurance taskforce, meeting with the ABI and insurers and brokers, and aims to increase co-operation (the BVRLA’s RISC database contains the names of more than 7,000 individuals and companies who have caused problems for members) and producing best practice information for members on how they can reduce their risk proﬁle. BVRLA chief executive John Lewis said: ‘By getting a better understanding of the market, we hope to come up with some ways of improving the supply of self-drive hire insurance and lowering premiums. As an industry, we cannot just sit by and watch rental companies struggle because they can’t find or afford insurance.’ Finally, there are two simple ways of reducing costs: training your drivers to be proactive behind the wheel and take measures to reduce the risk of being involved in an accident is one way, and IAM Drive & Survive has put together a checklist which will help drivers avoid whiplash injuries (drivingadvice.org.uk). Finally, read the small print of your insurance policy. Contained within it is a box you can tick which will prevent your insurer referring your case on to claims management companies or personal injury lawyers.

March 2012

FEATURE Geneva Show Review

Geneva: the highlights Steve Moody and Alex Grant pick out their favourites from the Geneva Motor Show. Ford Ford B-MAX

The new B-Max is a funky little thing and will certainly prove to be a usefully economical family car, especially with the 1.6-litre TDCi engine delivering 104g/km CO2 emissions and 70.6mpg. And of course, it has some clever doors, opening and sliding to reveal more than one and half metres of loading space, which Ford reckons helps get kids in and out, and on that front they are no doubt right. The question will be though, that the car makers have a history of meddling with doors, and almost always buyers seem less impressed than the designers (MINI Clubman, 1007, Meriva are recent examples). Will the B-max fare any better? That said, it is nicely built and looks great, and Ford has a habit of making cars that drive very well. SM

Honda Honda’s leet boss, Ed Hummel, said the irm is now back on track and looking to increase its market share again after a few years where a lull in products put it in the doldrums somewhat. Key to this revival is the new 1.6-litre diesel Civic, unveiled at the Geneva Motor Show. Designed for the European market, this new smaller diesel engined model will be introduced in late 2012. Lighter than any other diesel engine of its size and with CO2 emissions of 95g/km and 120bhp, Hummel said the Swindon-built motor shows the firm is serious about being a serious player in the vital corporate market again. Also on stand was the CRV concept, dropping strong hints at how the forthcoming new SUV will look. Once the production version and new diesel engine go on sale, it will mean that 95% of Honda’s leet offering will be entirely British built – a fact the irm might want to shout about a bit more, Hummel said. SM

CRV concept

Mercedes-Benz New A-Class

fleetworldgroup.co.uk

Undoubtedly a star of the show, the gorgeous new A-Class is certain to become a regular sight in company car parks. Stunning from every angle, it gives Mercedes-Benz an offering in that vital compact premium sector that the BMW 1 Series and Audi A3 dominate. Inside, things are just as good, with a funky interior stunningly finished in carbon fibre effect materials, while engines will range from 107bhp to 208bhp, with emissions from just 99g/km of CO2. Mercedes-Benz executives were being even more upbeat than usual. ‘A is for Attack: the A-Class is a clear statement of the new dynamism of the Mercedes-Benz brand,’ said Dr Dieter Zetsche, head of Mercedes-Benz Cars. ‘It is completely new, down to the last detail. In automotive development, it's not often you get the chance to start with a clean sheet of paper. Our engineers and designers have made the very most of that opportunity.’ It will be on sale towards the end of the year. Get your orders in early. SM

Audi Audi’s new A3 is entirely new, and the firm will need to be right on its game from the off, to counter the competition from Mercedes-Benz. Sharperlooking than the outgoing model, it is hardly a game-changer design-wise, but inside is where most of the obvious improvements have been made. The old model has managed on a platform going back more than a decade, while this A3 is the first Volkswagen Group car on the new MQB structure, that will underpin the vast majority of the group’s new mid-size models. That means more interior space without increasing exterior dimensions, the latest in infotainment technology and lighter weight – it’s 80kg lighter than its predecessor. The result is lower emissions across the board. Also worth noting, is the new MMI system, with an amazingly slim retractable monitor, a digital writing pad and wi-fi internet connectivity for passengers. First UK deliveries will start in early autumn. SM

Toyota

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New Audi A3

Volkswagen Volkswagen’s Up! model explosion continued apace with the unveiling of the five door version, set among a bewildering array of even more concepts of the car, including a Swiss army knife effort and another cross country one with searchlights. Perhaps the firm is getting a little carried away with all this Up! concept fun. But there was a van Up! concept, which might be of interest. Although too small to carry the ubiquitous Europallet, it might prove a usefully frugal, compact van in this age of ever increasing internet deliveries. SM Volkswagen Up!

Mitsubishi

Mitsubishi Outlander

Mitsubishi’s new Outlander puts the irm right back into the heart of the crossover sector. The previous model did very well for the company in retail, but the new car is a response to the increasing standard in the sector, and crucially drops the CO2 level, which had hampered business sales of the car. More interior space, seven seats, higher quality of materials and emissions targeted around 130g/km for the 2.2 diesel, make this a much more competitive corporate proposition. The irm will also launch a plug-in hybrid version in the near future, which cleverly can use the petrol engine, not only to drive the car itself, but to act as a generator for the battery, as with the Ampera. Emissions are likely to be around 50g/km, and UK managing director Lance Bradley said they were hoping to get the plug-in version to a price point that was properly competitive with more traditionally-powered models. The irm has pioneered electric cars, and if it can do that, may take EVs into a new, more successful chapter. SM

March 2012

FEATURE Geneva Show Review BMW

6 Series Gran Coupe

Aiming to chip away at Porsche’s dominance of the luxury four-door coupe market, BMW’s 6 Series Gran Coupe will be pitched at a more af luent buyer than similar models from Audi and Mercedes-Benz. Near identical in length to the 5 Series, it comes with a choice of petrol and diesel six-cylinder engines with similar power outputs to the equivalent Panamera models but with much lower CO2 emissions. On-road performance is identical for both, with 62mph reached in 5.4 seconds and a 155mph top speed. An M Sport version will be available from launch – expect this to be a popular part of the range in the UK. AG

Fiat 500L

Citroën Peugeot won’t be bringing the Mitsubishi ASX-derived 4008 to the UK, instead focusing on the 3008 crossover. But sister brand Citroen will bring its version here, badged as the C4 Aircross. It’s a thorough makeover compared to the Mitsubishi. Citroën said the design is inspired by the Hypnos concept shown at the 2008 Paris motor show, with the in-shaped C-piillar, 18-inch alloy wheels and curved rear lights all helping to separate it from the ASX. Unlike the C-Crosser it replaces, the C4 Aircross will be available with a choice of two and four wheel drive with the latter featuring a locking differential for off-road use. CO2 emissions are among the best in its class, with the front wheel drive 1.6-litre HDI 115 matching the Nissan Qashqai and Mazda CX-5 at 119g/km. AG

Part supermini, part SUV, part MPV, or so Fiat claims, the 500L is designed to offer the cutesy looks of the globally successful new 500 in a more family-fr iendly package - a move which puts this up against MIN I’s Countryman. There are some distinct similarities between the two. The 500L is bigger than the Pand a but has a similar roo line, which with the 500’s rounded front end makes it look a lot like the Countryman from the side. Very little of the 500 has been carried into the inter ior, though. It looks well built but lacks the retro chic of the supermini. Engine options will include a new 105bhp version of Fiat’s two-cylinder Twinair unit, laun ched as part of the carmaker’s ‘Eco Fun’ environmenta lly-conscious subbrand which will also include the Punt o Twinair. AG Fiat 500L

Citroen C4 Aircross

Hyundai Hyundai has stolen a small lead over sister brand Kia, with the subtly facelifted i20 now the lowest emitting conventionally powered version on sale at 84g/km compared to 85 for the Rio. And it’s not only the 1.1-litre diesel that’s bringing emissions down, a 96g/km 1.4-litre unit will also be available. The carmaker has also bolstered the appeal of the i30, unveiling a capacious Tourer version at the show. Expected to take up 30% of European sales, but with a lower share in the UK, this offers one of the biggest load areas in its class – at 1625 litres – with the seats folded lat. Engine options will be the same as the hatch. At the opposite end of the Hyundai range, the wacky Veloster coupe will inally gain an engine be itting its sporty looks next year. The 1.6-litre turbocharged GDI petrol offers 184bhp, and comes marked out by a more aggressive body kit. AG 48

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Hyundai i30 Tourer

Kia It’s six years since Kia unveiled the irst cee’d at Geneva, hailed as the model which really kick-started the carmaker’s recent renaissance. A trend the new model should have no problem continuing. Shown in hatchback and SW estate form, styling and quality has had a marked step forward from the outgoing model, not only a generational improvement but a leap which has resulted in a car which now looks and feels thoroughly European inside and out. It will also introduce a dual-clutch transmission, optional automatic parking system and 97g/km, 76.3mpg 1.6-litre diesel variant. Kia Motors Europe chief operating of icer, Paul Philpott, said the new car will be slightly more expensive, priced in line with Ford and Vauxhall models, and a three-door version will follow later this year. Expected to take up 20% of sales, this could also include a higher performance engine not offered in other body styles. AG

New Kia cee’d SW

Peugeot The 208 re-invigorates Peugeot’s B-Segment offering, the latest in the 200 series which has sold over 15 million vehicles over the last 30 years. It’s a clever and distinctive car, an average of 110kg lighter with petrol and diesel models under 100g/km and the 508’s Germanic build quality. Expect a 200bhp, sub-1,000kg GTI to follow early next year. AG New Peugeot 208

SEAT A new Toledo arrives in UK dealers within a year, looking very similar to the coupe-like IBL shown at Frankfurt last year. Creased bodylines and a stylish, clean-cut interior design mark a new style for SEAT, likely to be mirrored by the all-new Leon due to be shown later this year and based on the Volkswagen Group’s new MQB mid-sized platform. AG SEAT Toledo

Vauxhall General Motors is on the verge of a major product offensive, backed by a range of new powertrains. Offering a 10% reduction in CO2 emissions compared to their predecessors, this will comprise of three and four-cylinder petrol and diesel engines between 1.0 and 1.6 litres, a new manual gearbox and two dualclutch automatics. Notably all of them are compatible with hybrid technology, hinting at a full line-up of Vauxhall hybrids to come. New models on show included the Mokka, a compact SUV-MPV crossover offered with two and four-wheel drive, two petrol engines and a diesel and a selection of the carmaker’s latest safety and convenience systems. AG

Vauxhall Mokka

Volvo

Volvo V40

Volvo has had huge success in niche areas of the market, but in order to compete for a full spectrum of premium brand sales it was lacking a ive-door C-Segment model. V40 ills that gap. It uses a C30 platform, replaces the S40 and V50 on the production line and will be the last new Volvo to use Ford underpinnings. The futuristic design includes a P1800-style hooked rear window and 480-inspired glass tailgate, while the interior is plush and incredibly well inished. Neat features include a digital display, like the V60 Plug-in Hybrid, which can be customised between three different modes, and colour-changing mood lighting. It’s a vital model for increasing Volvo’s corporate footprint, and 60% of UK cars will go to leets. The carmaker said it offers a sporty, connected driving experience, and comes with engines ranging from the 254bhp T5 petrol to a 94g/km DRIVe diesel. AG

March 2012

FLEETW RLD 2012 HONOURS

Wednesday 16th May 2012 RAC Club, Pall Mall, London

The Fleet World 2012 Honours is the most prestigious event in the fleet calendar. The presentation of the awards is held at The Royal Automobile Club, Pall Mall, and the resultant media coverage can be felt right around the globe. The awards presentation itself is a â&#x20AC;?winners-onlyâ&#x20AC;? event and this exclusivity has created a unique reputation for the value and integrity of the Fleet World Honours. The Fleet World Honours are divided into a series of categories representing cars, commercial vehicles and fleet management. Entries can be made online via www.fleetworldhonours.co.uk, where you can download an entry form and send it to the judges with any supporting documents.

FLEETW RLD Editor's Awards > Design of the Year > Safety Award > Environment Award > Innovation Award > Technology Award > Internet Award > Editor's Award > Fleet Management Service Award > Fleet Driver Service Award > Most Improved Fleet Manufacturer > Fleet Manufacturer of the Year

Car Awards > Best New Car > Best City Car > Best Small Car > Best Lower Medium Car > Best Upper Medium Car > Best Estate Car > Best SUV/Crossover > Best MPV > Best Executive Car > Best Luxury Car

VAN FLEETW RLD

Editor's Awards > Safety Award > Environment Award > Innovation Award > Technology Award > Internet Award > Security Award > Fleet Management Service Award > Editor's Award > Van Manufacturer of the Year

Van Awards > Best New Van > Best Light Van > Best Small Van > Best Medium Van > Best Large Van > Best Pick-Up > Best Light Truck

Fleet Manager Awards > Fleet Environmental Award > Fleet Safety Award > Fleet Management Award

For more information, please call 01727 739160 or email honours@fleetworldgroup.co.uk

To enter the 2012 HONOURS, visit www.fleetworldhonours.co.uk

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INTERVIEW Ewan Shepherd Toyota

A force to be reckoned with Toyota’s fleet boss Ewan Shepherd has pushed through a raft of changes that will make the Japanese giant a fleet force – at last. By Steve Moody. The executives at Toyota, in their vast, impressive Surrey base overlooking London, have spent a year taking a long hard look hard at the company, and the result is fundamental changes to the way they conduct business, which is already having a huge impact on their fleet operation. The firm has always prioritised retail sales, while keeping a watching brief on the fleet market. No longer: major structural changes to the way the company, and Toyota Motor Europe, account for fleet deals has made the company more open and able to deal with corporate interest. This revisionism has taken place under the careful stewardship of Ewan Shepherd, who has been in charge of the fleet and remarketing operation for around 18 months now. And he’s certainly stuck his neck on the line to get the boards at UK and European level to agree to the changes. Essentially, the firm has in place an agreement with Toyota Motor Europe that allows for more latitude in terms of fleet deals and what it can offer. He explains: ‘The last 12 months have gone by like a blur. Fleet in Toyota had previously been approached in a cautious manner, and most of our competitors have a more consolidated pan-European approach in terms of profit margin. ‘Now we have more flexibility in terms of how much profit margin we can trade with where previously we were restricted in our ability to deal with some fleets. ‘When I came into the job we threw everything up in the air and had a long debate right across the company and now we’re back in the game. We now have quicker decisions at a UK level, and I can make a decision on deals rather than having to go to Europe.’ As a result of that Shepherd reckons the company can be more ambitious in fleet. He continues: ‘When I came in we didn’t have a fleet strategy, – we just did profitable, medium-sized, SME business, so me and my team, we took a step back, looked at the product coming through and talked extensively to the fleet industry for six months – leasing companies, dealers, major fleets – and got feedback to understand where Toyota stood in the market and what the issues were. ‘What we found was there was a high respect for the brand and what we stand for but some of our products were in a phase where they were high quality, but weren’t the most interesting. ‘But there is a goodwill as a background to Toyota, and the feedback was that perhaps we don’t tell people the good things we do – we’re a bit reticent.’ Being more forthright and flexible is already paying dividends. Most of last year Toyota was bouncing around 2.8% market share, but ended up at 3.4% combined overall.

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Fleet drove almost all of that growth, Shepherd explains: ‘We had a very strong second half of the year with the new, more flexible strategy, and we really went to town on our ‘Built in Britain’ campaign. As a result, we saw a 31% growth in Auris in fleet last year, primarily through medium-sized businesses. ‘The reasons was the network tapped into it. Retail wasn’t happening to keep them in business so a lot had to really focus on fleet, and we supported them, and all credit to my field force, they knocked on lots and lots of doors, and it came through for us. ‘So we’ve set ourselves a goal of constantly getting to 4%, compared to Toyota total of 5%. That would represent a 29% growth compared to 2010 by the end of 2014.’ Underpinning the growth is an overhaul of the brand which Shepherd says will bring more emotion, youth and passion into the brand which has previously been a bit staid. ‘We recognise you aren't going to move the brand forward without more exciting product, and each of our new models will be a step up in terms of dynamism and excitement, turning heads towards Toyota,' he said. ‘Over a 36-month period we'll have 19 new products. ‘But on the back of new product, such as new Prius and the Prius family editions – Plug-in hybrid and Plus – we are looking to get greater consideration among fleets. ‘What we haven’t done is put some emphasis on communicating with the fleet industry. We’ve not really prioritised this in the past so we’ve developed a fleet service charter, which came out of research we did. You can have all the veneer in the world but you have to be prepared to give commitment to the levels of service to the fleet industry. ‘We already did 95% of these things, but never told anyone, which is typically Toyota. So we’re training staff to help consult with customers on how to fund cars, not just from a BiK perspective, and we’ve started doing a lot more in-car park test drive events. We think it’s necessary to passionately get the brand across. ‘And from next month we launch a personalised communication channel that is web-based – an individual web portal for individual customers. They will be able to access our fleet database, terms and conditions, book demos, and get a peronalised set of information they draw down from us, as well as being able to contact us whenever it suits.’ It’s an impressive set of initiatives that Shepherd and his team have put in place, and the desire is certainly there to do more fleet business. The trick will be to turn vast potential into sales.

New Plug-In Prius looks set to bolster Toyota’s fleet proposition

“Over a 36-month period, we’ll have 19 new products” March 2012

FEATURE To buy or to lease? // Part 16

IT’S NOT ALL 1+35 This month, Professor Colin Tourick looks at rental patterns, residual values and balloon rentals. When you ask a leasing company for a quote they will ask you which rental pattern (or ”payment profile”) you require. There are four patterns; regular initial rental, high initial rental, spread rental and all in advance. With a regular initial rental you will pay the same amount on day one as you pay monthly throughout the contract. Typical profiles are 1+35 or 1+47. This profile is normally offered to public sector bodies and large companies, where the lessor doesn’t need any extra payment up front as a cushion against client default. If you opt for a high initial rental you will pay three, or sometimes six, rentals on delivery. A typical three-year payment profile is 3+33. You pay two extra rentals on delivery so you don’t need to pay any rentals at the start of months 35 and 36. Four-year business is often transacted with a 3+45 payment profile. This profile is usually offered to private individuals, smaller fleets and SMEs. Rather than lease your car by paying monthly rentals on a 3+33 or 1+35 basis, you might instead opt to pay a high initial payment (the initial three) followed by 35 monthly payments, i.e. 3+35. The actual rentals are lower than would have been paid under a 3+33 arrangement, but you are paying more of them. This profile is called a spread rental, presumably because it spreads the rentals over another two months. It is common for lease brokers to offer spread rentals. Some hirers ask to pay all rentals in advance. This would make no sense at all on a hire purchase agreement. If you can afford to buy the vehicle there is no reason to set up a finance agreement. However, on contract hire agreements it is not unusual for cash-rich companies to request this. They do so to take advantage of the lessor’s ability to recover input VAT when buying the vehicle. The lessor

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ends up just funding the residual value so the client bears little interest cost. Contract hire is an operating lease – a simple rental agreement – so there is no particular reason why rentals should not be paid in advance if both parties agree. After all, if an equipment hire shop can ask for payment in advance when you hire a piece of equipment, why not pre-pay for a car if you have the cash? Next we need to look at the effect that

residual values and balloon rentals have on rental calculations. If a lender builds a residual value or balloon rental into your finance agreement they can reduce your regular monthly payments and still earn the return they require. In the cash flow below, (Table 1) the lender finances a £14,000 vehicle over twenty-four months. Payments are monthly in arrears. The nominal interest rate is 12% p.a. or 1% per month.

Table 1 Month

Opening Balance

Interest

Payment

Closing Balance

£14,000.00

£140.00

£659.03

£13,480.97

£134.81

£659.03

£12,956.75

£129.57

£659.03

£12,427.29

£124.27

£659.03

£11,892.54

£118.93

£659.03

£11,352.43

£113.52

£659.03

£10,806.93

£108.07

£659.03

£10,255.97

£102.56

£659.03

£9,699.50

£96.99

£659.03

£9,137.47

£91.37

£659.03

£8,569.81

£85.70

£659.03

£7,996.48

£79.96

£659.03

£7,417.42

And so on until...

£3,819.38

£38.19

£659.03

£3,198.55

£31.99

£659.03

£2,571.51

£25.72

£659.03

£1,938.19

£19.38

£659.03

£1,298.55

£12.99

£659.03

£652.50

£6.53

£659.03

£0.00

Note how the equal monthly repayments of £659.03 reduce the balance outstanding in the lender’s books to zero once the final payment is made. This cash flow could relate to a conditional sale agreement, where you pay £659.03 for twenty-four months then become the owner of the vehicle. Let us now assume instead, that you fund the vehicle using contract hire. When you hand it back at the end of the agreement the lessor has to sell it to recover the balance of their investment. In this example they estimate the car will be worth £8,000 on disposal, so they build this amount into the rental calculation. The cash flow now looks like this (Table 2). The lessor only needs to receive a rental of £362.44 to recover their capital investment and interest in this transaction. Note how the interest rate is still 12% p.a. nominal, or 1% per month. They are charging a smaller rental whilst still making the return they require. The rental will be lower still if the lessor believes that the car will sell for more than £8,000 and higher if they believe it will sell for less. If you take a car on contract hire, the lessor takes residual value risk and you can compare quotes from different suppliers and take the cheapest. You don’t need to be concerned with the estimated residual value each lessor included in its calculations. However, if you get contract hire and HP quotes on the same car you need to be careful. In the HP transaction, you will be taking the residual value risk and the funder may offer you low rentals followed by a high balloon payment that you are obliged to pay. There is a limit to the amount that a lender can stretch this in order to offer you a low-sounding monthly payment. If he makes it too low and leaves you having to pay a large balloon payment, he runs the risk that you may be unable to make this payment and the further risk that if he repossesses the car it may not fetch this amount on resale. Continuing the above example, let us imagine that several contract hire companies quoted you rentals at around £251.22 per month for a particular car on non-maintenance contract hire. A finance company suggests that you take the same car on HP at £214.55 per month. Here is the cash flow for the HP deal (Table 3), showing you will have to make a balloon payment of £12,000. From the earlier cash flow you can deduce that the contract hire companies believe the car will be worth £11,000 at the end of the contract. The monthly cost under the HP deal might be lower, but if you take it and the contract hire companies are right, you will be £1,000 out of pocket when you sell the car in 3 years’ time.

Table 2 Month

Opening Balance

Interest

Payment

Closing Balance

£14,000.00

-£140.00

£362.44

£13,777.56

£137.78

£362.44

£13,552.89

£135.53

£362.44

£13,325.98

£133.26

£362.44

£13,096.80

£130.97

£362.44

£12,865.33

£128.65

£362.44

£12,631.54

£126.32

£362.44

£12,395.42

£123.95

£362.44

£12,156.93

£121.57

£362.44

£11,916.06

£119.16

£362.44

£11,672.78

£116.73

£362.44

£11,427.06

£114.27

£362.44

£11,178.89

And so on until...

£9,636.88

£96.37

£362.44

£9,370.81

£93.71

£362.44

£9,102.07

£91.02

£362.44

£8,830.65

£88.31

£362.44

£8,556.52

£85.57

£362.44

£8,279.64

£82.80

£362.44

£8,000.00

Month

Opening Balance

Interest

Payment

Closing Balance

£14,000.00

£140.00

£214.15

£13,925.85

£139.26

£214.15

£13,850.96

£138.51

£214.15

£13,775.33

£137.75

£214.15

£13,698.93

£136.99

£214.15

£13,621.78

£136.22

£214.15

£13,543.85

£135.44

£214.15

£13,465.14

£134.65

£214.15

£13,385.64

£133.86

£214.15

£13,305.35

£133.05

£214.15

£13,224.26

£132.24

£214.15

£13,142.35

£131.42

£214.15

£13,059.63

Table 3

And so on until...

£12,545.63

£125.46

£214.15

£12,456.94

£124.57

£214.15

£12,367.36

£123.67

£214.15

£12,276.88

£122.77

£214.15

£12,185.51

£121.86

£214.15

£12,093.21

£120.93

£214.15

£12,000.00

March 2012

MANAGEMENT Fleet Academy

Join the Used car supply (John Lewis, Chief Executive, BVRLA)

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

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“We are now heading into a period where 1 to 5 year old cars are going to be in short supply following the collapse of the new car market in recent years. New car volumes have dropped to around 2 million units a year, down from the heady days of 2.4 million plus and are not forecast to recover for some time yet, which effectively means 400,000 less used cars coming into the top of the market each year for the next few years. For used car buyers this means that they can no longer rely on an oversupply of vehicles to choose from waiting for them at the auction sites, but instead they will need to develop pretty advanced used car procurement strategies to ensure that they are able to ensure first opportunity for the cars they want to buy. Also, for many franchised dealers it will mean that they will not have the volume of pre-registered or late plate cars enjoyed in the past and will have to look to older, higher mileage vehicles to fill their forecourts and support trading profits. There are some strong messages for used car sellers as well, as it would be all too easy to become complacent in a buoyant market, but when demand is outstripping supply, every opportunity to maximise the last pound should be exploited even harder. For example in recent discussions it has become evident that the remarketing sector could do more to promote the low emitting, fuel efficient models when they come to market, and this is even more important as increasing volumes of vehicles are now being purchased over the web as buyers need to be in several places on the same day to ensure access to good stock. This is nothing more than a classic supply and demand model in action, but is the reverse of what we have seen in recent years when supply was greater than demand. It will present some interesting challenges, and opportunities, to both buyers and sellers alike. And will result in increased used car values.”

debate...

ith w on iati c o ass

Introduction of electrically-powered vans

Time for sensible EV advice

(Mark Cartwright, Head of Vans & LCVs, FTA)

(Alex Grant, Motoring Editor, Fleet World Group)

The introduction of electrically powered vans (Head of Vans & LCVs, FTA) The nature of many operators’ businesses would seem to be ideally suited to the adoption of electric vans with relatively low mileage in an urban environment. Many operators are keen to reduce their carbon footprint and are actively looking at trialling and adopting this technology. There are still a number of questions around the long-term robustness of the batteries along with difficulties in predicting residual values; time will tell with these. Up-front cost is an obvious issue, although this is certainly more palatable with the welcome confirmation of the ‘plug-in van’ grant and the whole-life cost advantages of such vehicles working within the London Congestion Charging Zone. The major limitation for many operators, however, is the impact on payload. The increased tare weight and the operator’s natural desire to keep the van’s gvw below 3500kg to avoid the imposition of ‘truck-like’ legislation would typically reduce carrying capacity by 400 to 500kg; a straightforward cost/benefit calculation for delivery van operators, but a far more difficult issue for operators using vans as mobile toolboxes where it could boil down to which piece of equipment must be removed. This could conceivably lead to a situation where, instead of one van, two are needed to cover one job. This is why FTA is continuing to push for a dispensation in O-license regulations to allow qualifying ‘green’ vans to operate up to 3900kg, effectively offsetting the extra weight and maintaining the payload. We’re encouraged with the response this pragmatic proposal has received from politicians and it’s now included in the Red Tape Challenge – watch this space!”

“We’re now only a month away from our Electric Vehicle and Low-CO2 Fleet Show at Silverstone, and with heightened awareness of electromobility due to the recent EV Fleet World magazine launch, I’m thinking it couldn’t be better timed. The main issue is a complete lack of neutrality about electric vehicles, in all forms, which I think is breeding blurred perceptions of the whole market. While the concept itself isn’t new, the reality of usable vehicles being on sale is now upon us, and what we really need is intelligent debate, not scaremongering. This comes from both sides. In the electric vehicle corner, manufacturers of the cars and supporting infrastructure are militantly flying the flag for ditching petrol and diesel power (or substantially downsizing it), presenting staggering cost benefits for doing so, and advocates repeat it verbatim to their readers. Undoubtedly there will, for some, be a real benefit to making the switch. But it isn’t a one-size-fits-all proposition. Range, residual values and the real-world longevity of the technology are still issues, and regardless of laboratory testing can anyone actually stand up and say for sure that they know what these batteries will be like – good or bad – after five years of actual daily use? And then there are the nay-sayers – those who see only the negatives, the burning Chevrolet Volts and the expensive battery pack failures. It’s thanks to this sort of reporting that the Volt has unfairly become a political topic in the United States – used as a symbol for the much-lauded failings of the Obama administration’s electromobility plans. The reality is that like all cars, an EV should be considered on its suitability for the end user. You wouldn’t buy a Lotus Elise if you needed to take four children to school, and likewise you wouldn’t expect to be setting lap records at the Nürburgring in a Renault Scenic. Yet, by pointing out that you can’t drive a Nissan LEAF from London to Edinburgh in one go, you’re making exactly that sort of suggestion. Of course it can’t – but if you regularly needed to drive that far, you wouldn’t buy one.

March 2012

S E LLI N G

Drop-top demand picks up March is traditionally a strong month for convertible and cabriolet demand as the winter weather starts to warm up. And, despite underperforming during the traditional peak season last summer, values have remained relatively stable through the winter and climbed during February. Richard Crosthwaite, prestige car editor at Glass’s Guide, said: ‘Even the likes of TT, Z4 and SLK roadsters see moves up of an average 2%. However, it's the 1 Series, 3 Series, A3 and A4 models that are showing the biggest gains with an average movement up of 4%. ‘Like last year the market may be over early (May/June) but if the sun comes out and the Olympic feel-good factor kicks in, we may see a return to the good old days.’ But, he added, last year’s poor summer weather was a large contributing factor in these vehicles not reaching the usual seasonal highs. A similar situation, with an early rise in values followed by a disappointing summer, could be on the cards this year if the sun doesn’t come out. BCA has also taken note of the uplift in demand, and is working with Lex Autolease to offer a 500-vehicle, two-site convertible specialist sale scheduled for the 17th March. This will allow bidders to watch both auctions live over an internet broadcast. Alan Gupwell BCA corporate account manager for Lex Autolease, said: ‘The timing of this event is perfect; March will be the peak of demand for convertibles with buyers looking for stock for the busy Easter period.’

SUVs season is over Two harsh winters had pushed up demand for 4x4s at the end of last year, but a lack of disruptive snowfall this year has left plenty of dealers with unwanted stock. Prices peaked at the end of 2011, and with the worst weather out of the way, most have seen values fall between 2-5% according to Glass’s Guide. This is almost across the board, with even the usually strong-performing crossover segment showing a slowing in demand. There are exceptions, however, with the new BMW X3 remaining strong despite a sector-wide dip and unblemished Land Rover models still popular too. Chris Smith, car editor at Glass’s Guide, explained: ‘4x4s generally feel a bit sad – the industry threw a party, but nobody came – but Land Rover, as usual, trundle blithely past all that. ‘Just about everyone got their fingers burned buying 4x4s last November, and who fancies going to see the franchise Big Cheese to ask to buy a few more when there are some expensive ones sitting out there staring at you?’ The dip is a return to normality for a market where small, economical and low-mileage cars are increasingly becoming popular. Even some low-capacity petrol engines are enjoying a lift in demand. Tony Gannon, communications director at BCA, said: ‘The rise in average prices at the “value-for-money” end of the market continues unabated and this must be a reflection of the current economic conditions. As household budgets remain squeezed, the increased demand from motorists for affordable transport is driving BMW X3 values upwards.’

fleetworldgroup.co.uk

HOT... Small cars Small cars with low mileage continue to perform well, with the Volkswagen Polo a safe bet and Kia Picanto in demand.

Passat Estates Despite a lot of high mileage, poorly maintained stock from fleets with extended cycles, Passat Estates are selling well. Often at over list price.

Premium brands Premium brand models with small petrol engines have been firm, with models such as the BMW 1 Series sticking to guide prices.

NOT... Automatics Although popular, increased availability of automatic models is pushing price premiums down compared to manuals.

Mid-size Mid-size C-Segment models are having a tough time, with demand focused on smaller vehicles and the MPV/compact SUV segment.

Luxury saloons Luxury saloons, except the Porche Panamera, continue to suffer in the UK, with drivers looking towards increasingly well-specced models in the sector below.

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Visit: www.iamdriveandsurvive.co.uk/events Alternatively, call us on 0870 120 2910 or email: events@iamdriveandsurvive.co.uk

MARKET OVERVIEW Daily Rental

Alliance Asset Management

Arnold Clark Car & Van Rental

Alliance Corporate Rental provides cost-effective vehicle rental solutions to companies of any size, offering daily rental and flexilease from one day to 12 months and contract hire/leasing for longer term requirements. Alliance can provide vehicles of any type including cars, prestige and performance vehicles, minibuses, light commercials, 4x4, specialist and adapted vehicles through to refrigerated vans and 7.5t and above. With both a national supply network of over 1,500 locations and our own specialist fleet, Alliance operates on a UK-wide basis, ensuring access to the UK’s most extensive vehicle fleet, quality service, consultative approach and simple invoicing. All these services can be accessed through our easy-to-use online rental management system.

Arnold Clark Car & Van Rental is one of the UK’s largest, independently owned rental companies with over 40 years experience in the provision of long and short term tailor-made economical fleet solutions for corporate and retail clients. With access to a nationwide, multi-franchise fleet of over 55,000 vehicles in branches throughout the UK and close links with vehicle manufacturers, Arnold Clark Car & Van Rental offers extremely competitive rental rates on a range of the most up to date cars and vans. An on-line booking facility for both retail and corporate clientele is available and business users can also benefit from a dedicated on-line management reporting facility.

Contact: Riane Cooke sales@alliancerental.co.uk

Tel: 0844 4142998 www.fleetcentre.com

Budget Rent-a-Car Budget Rent-a-Car is one of the top global car and van rental companies with more than 95 locations in the UK and over 128 countries worldwide. Offering a broad range of rental options for the "value-minded" renter, we can tailor our business services to suit your company’s needs: • CorpRate offers companies with volume business dedicated account management and management information • BusinessConnections for SME’s offers a "no contract" loyalty programme which gives members a discount on every rental • Our website www.budget.co.uk offers car and van rentals through an easy-to-use online booking service.

Tel: 0844 544 7722 sales@budget-emea.com

www.budget.co.uk

Tel: 0845 702 3946

Enterprise Rent-A-Car In the UK, Enterprise Rent-A-Car is the sole specialist in providing replacement vehicles and courtesy cars, which are relied upon in the event of an accident. Enterprise also offers daily and weekend rental for private or business use. Founded in 1957, Enterprise is headquartered in St. Louis and has more than 7,700 offices in the UK, Germany, Ireland, the United States and Canada. Enterprise, which started in the UK in 1994, has rapidly expanded and currently has over 370 locations across the UK & Ireland, with more than 3,400 staff. Three quarters of the UK population are within five miles of an Enterprise location. For more information about Enterprise, visit www.enterprise.co.uk.

Contact: Tony Francis tony.francis@erac.com

Tel: 01784 221 300 www.enterprise.co.uk

Northgate Vehicle Hire

Europcar UK Group

Contact: Business Centre central.reservations@arnoldclark.co.uk www.arnoldclarkrental.com

Europcar UK Group provides access to the UK’s leading vehicle hire fleet of over 45,000 cars, through its comprehensive network of over 200 locations across the UK and in 150 countries worldwide. We have a proven track record of innovation, great service delivery and a quality fleet. Europcar offers flexible products to suit all business requirements – from 1 day to 1 year, with delivery and collection, corporate loyalty programmes, one-way hire and a range of payment options. These services are supported by innovative online solutions to help businesses monitor and manage vehicle use and to support cost efficiencies, duty of care responsibilities and address environmental concerns.

Northgate Vehicle Hire has shaped and defined the van hire market for over 30 years, operating over 52,000 modern, fuel efficient vehicles through 60 UK locations. With 56 wholly owned workshops and 356 highly trained mechanics, Northgate can offer the added reassurance of national back up 24 hours a day, 365 days a year. Northgate has developed a diverse customer base, ranging from blue-chip corporations and Local Authorities, right down to small and medium sized enterprises, owner operators and the general public. Offering both daily rental and a range of innovative, long and short-term fleet solutions, including the pioneering flexible rental solution – Norflex, Northgate are perfectly equipped to serve businesses of all sizes in today’s economic environment.

Tel: 0871 384 0201 businesssolutions@europcar.com

Contact: Central Sales team info@northgatevehiclehire.co.uk

fleetworldgroup.co.uk

www.europcar.co.uk

Tel: 0844 8266 555 northgatevehiclehire.co.uk

Do you offer an on-line management reporting facility?

Can a driver guarantee a specific make & model of car when booking?

Do you offer cars fitted with satellite navigation systems?

Do you charge a fee for non-cancelled bookings?

Do you charge excess mileage rates on pre-agreed contracts?

Do you offer hybrid & Electric Cars?

Do you offer an hourly rate for hire?

225k+ 1.5k+

Do you offer an on-line billing facility?

Alliance Asset Management

Do you offer a chauffeur drive service?

Service unavailable

Do you have a rapid check-in system?

Does a driver get given a proof of condition receipt on handing back their hire car?

Service provided

Do you offer a one-way rental facility?

How many vehicles does your company operate?

Key to services

How many rental locations does your company have?

FLEETW RLD

Yes

Arnold Clark Car & Van Rental

6.6k

Yes

Budget Rent-a-Car

15k

95+

Yes

Enterprise Rent-A-Car

55k+

370+

Yes

Europcar UK Group

45k

200

Yes

Northgate Vehicle Hire

60k

Yes

228k+

1.2k

Yes

26k

150

Yes

14.5k

only web

Yes

Leasedrive Group

Sixt rent a car

Thrifty Car & Van Rental

Sixt rent a car

White Clarke Automotive Solutions

Sixt rent a car have built a strong reputation for offering the fleet industry flexible solutions, excellent choice, unparalleled rental flexibility, customer service excellence and pan-European coverage that gives access to one of Europe’s largest fleets. Sixt rent a car in the UK, together with its Partners, boasts a comprehensive car and commercial rental fleet of some 26,000 vehicles, ranging from saloon, estate and MPV cars to light vans, pick ups and dropside vehicles. Sixt is at the forefront of innovative technology and offers corporate customers their own personalised version of the Sixt iPhone, Blackberry and Android applications.

Whether you run a single rental site or a national multi-site operation, our bespoke, hosted IT solutions working quietly in the background can help you take complete control, putting at your fingertips all the knowledge you need to make your business a growing success. White Clarke Automotive Solutions – formerly Nexus – is firmly established as a major full service provider in every aspect of the automotive solutions business: a new name for unbeatable experience.

Contact: Per Voegerl per.voegerl@sixt.com

Contact: Pamela Halliday phalliday@whiteclarkeauto.com

Tel: 01246 506412 www.sixt.co.uk

Tel: 07740 935 808 www.whiteclarkeauto.com

March 2012

FLEET UPDATE

This month New arrivals from Kia and Jaguar continue to impress, while our ever-durable 508 goes back to Peugeot.

Jaguar XF 2.2 Diesel Portfolio There was a time when the further you rose in a company, the bigger the engine you were allowed to choose in your company car. And if you covered enough business miles (over 18,000 a year) the tax bill was so modest that a big smoker made perfect sense. But with models like the 2.2-litre diesel XF on the market it's becoming increasingly possible to fill all the directors' parking spaces with cars that collectively emit less CO2 than a single 3.5-litre V8 Rover SD1. Beneath the bonnet of our latest long-termer is a 2.2-litre, four-cylinder diesel driving the rear wheels through an eight-speed automatic transmission featuring sequential shifting and sports mode. The Jaguar DriveControl system also boasts winter and dynamic modes, alongside a start/stop function installed primarily for tax purposes it would appear. The transmission is virtually seamless – quite an achievement with a diesel engine – and with 190bhp on tap and 450Nm of torque the XF reaches 60mph in eight seconds and powers on to an electronically limited 140mph. Those who cut their boardroom teeth on big petrolpowered muscle cars in those heady days of unlimited harmful emissions might still thirst after a little more ”grunt”, but the hefty torque and fast-acting transmission allow for acceleration that is brisk, if not totally thrilling. At 1,745kg kerb weight it's not too heavy and can be good fun to drive on more sweeping roads, but the XF is large enough for drivers to be a little bit conscious of their position in the road. Still, there's something pleasing about the rear-wheel drive set-up and when the opportunity presents itself it's hard not to push on a bit just for the fun of it. Given the above, it's not surprising that the combined figure of 52.3mpg has been a bit elusive but 45mpg on a motorway cruise is easily achievable without crawling along in the slow lane.

Ross Durkin

Renault Grand Scenic dCi 110 EDC Auto

As the last remaining MPV on Renault’s UK books following its recent model cull, the Grand Scenic that we’ve been testing has now received a facelift for 2012 to help it continue to run with the pack. The new model, on sale now, comes with a number of styling changes and two new engines to help bolster its appeal to business and private drivers. Notably it also comes in just one trim level – Dynamique TomTom. This is handily the trim that we’ve been testing in our pre-facelift Grand Scenic model. It now gains a £425 price uplift but you do get rear parking sensors and LED daytime running lights included. For fleets, this Dynamique TomTom spec includes some very business-friendly kit such as Bluetooth, the keycard and a built-in Carminat TomTom Live sat nav, which makes the Scenic/Grand Scenic a worthy consideration compared to lowerspecced rivals. However, the loss of the entry-level Expression trim removes the option of a more budget-orientated model – £1,500 less on the old model. It’s still an excellent price to pay though for the extra kit and built-in sat nav, especially as this comes with TomTom’s IQ Routes technology – which uses speed data directly supplied by drivers to show the quickest routes – as in particular is its ”Live” functionality. In a nutshell, this means that you gain real-time traffic information, latest details of speed cameras and the ability to search for local points of interest using Google and five-day weather alerts. You can also use the TomTom Map Share community to update maps using your computer. With an annual TomTom LIVE subscription costing £55 after the three-month free trial has expired, it’s certainly reasonable and is a great one for anyone at all techy or employees who drive around the country a lot. I’ve been spotted by my neighbours on several occasions sitting on the drive with the engine running working out the Carminat, although I’m now pretty adept at finding the weather forecast for Inverness!

Natalie Wallis

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

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

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

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

TOP SPEED 138mph COMBINED MPG 56.5mpg

TOP SPEED 112mph COMBINED MPG 60.1mpg

CO2 132g/km (19% BiK)

CO2 124g/km (18% BiK)

fleetworldgroup.co.uk

Kia Optima 2 Tech 1.7 CRDi A bit part of Kia’s recent revival has been a strong brand identity running through the design of its products. And I think it’s nearly there, with that prominent ”tiger nose” front end now such a big part of the overall look that it’s quite hard to ignore. I say nearly there, because Kia still has a little way to go before the less initiated motorists come around to just how good the new ones look. Even with its simple tonguein-cheek ”Park the Clichés” advertising campaign and an ever-larger Kia badge as an unashamed sign that they’re proud of who they are, not everyone has got the message yet. Notably the handful of admirers I’ve met at fuel stations and in a supermarket car park while I’ve been driving the Optima. Never a negative comment to be found about the way the saloon looks, but the phrase ‘Nice car’ is usually followed by ‘What is it?’ – not a problem you’re likely to face with most mainstream brands. That’s an issue that’ll pass with time, though. Optima is a great flagship, especially with the Sportage at its side, to show a manufacturer best known for city cars can make a very respectable saloon too. From a style and equipment level point of view, this isn’t a choice you’d need to explain to co-workers. But I do think it’s a shame Kia has brought the Optima to the UK with just the one engine. It might make financial sense to bring it across with a fleet-friendly oil burner, but a gutsy diesel or petrol version, or perhaps a hybrid of the same ilk as the PSA Hybrid4 models, would have made a fantastic low-volume halo car to show how the pinnacle of the range looks.

Alex Grant

Ford Mondeo Zetec 1.6 EcoBoost

‘I’m disappointed with the fuel consumption,’ a friend said to me this week, speaking about his brand new Ford Grand C-MAX fleet motor, ‘The fuel consumption’s no better than my Galaxy was, even though the car and engine are smaller.’ He was talking about a diesel model, powered by the Ford-PSA 1.6-litre common-rail diesel, compared with his Galaxy 1.8 with similar diesel technology. I explained that the toll of diesel particulate filter and safety kit wasn’t helping matters. Not much to do with our petrol-powered Mondeo, you might think, but it put me in mind of a conversation I had recently with Ford of Britain managing director Mark Ovenden, who seemed to think that developing petrol technology would be turning many drivers off diesel. I think he may be right, but our carbon dioxide-driven BIK and VED systems are going to ensure that company car drivers, like my friend, will be ticking the diesel box for some time to come, despite the unjustifiable price difference between the fuels. The truth is that diesel cars are not the value proposition they were a few years ago. With fuel at a 10p per litre premium, it means that retail buyers would have to drive a massive distance to get the extra cost of buying the diesel in the first place back again. Granted that the economics of fleet buying and leasing change that equation, but if we have an oversupply of diesels in the used market, residuals could take a hit and change that. Fuel consumption for the Mondeo has crept down to around 38mpg and with over 5,000 miles on the clock now, the engine is starting to free up.

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)

March 2012

FLEET UPDATE FINAL REPORT

Peugeot 508 SW 2.0 HDI 140 SR

With the departure of the winter weather, our Peugeot 508 long-termer has gone back to Peugeot. It’s proved popular too, thanks to a gutsy 2.0-litre diesel engine and executive class interior comfort, and promises to be a worthy adversary to the Germandesigned D-Segment mainstream. With six months spent sharing the car, a few of the team give their verdict on the stylish estate.

Ross Durkin > Managing Director What really impressed me was the quality of the car, both inside and out. I don't care what anyone says, there's still an element of status attached to company cars and drivers want to know that they won't have to explain their choice to their cynical workmates when a new car arrives. In the case of the 508 they should have few concerns. It's extremely well made, very comfortable to drive and frugal too. There's plenty of space inside but it doesn't feel too large when driving.

Alex Grant > Motoring Editor Peugeot has managed to dress a very practical estate car in a sharp French suit with the 508, and while it’s not as thrilling as, say, a BMW 3 Series its combination of huge, usable boot space and tiny thirst for diesel makes it a delight to use. But don’t be fooled by on-paper figures. The 2.0 HDI in our long termer might not be the most frugal on paper, but it almost matches the noticeably less endowed 1.6-litre versions in real-world use, including the 107g/km model with its niggly electronically assisted manual gearbox. Any extra cost – either from purchase or running – is worth it to make the most of the SW’s load-carrying ability.

Anne Dopson > Sales Director Having learned to drive in an estate car, I’ve always had a soft spot for them and the 508 didn’t disappoint. What really impressed me about the car was how solid it felt. Not only in terms of the

interior plastics and the heavy thunk of the doors, but in how it drives. The suspension is firmer than some in its class, but not uncomfortably so, and this contributes to a stable and confident ride at motorways speeds where a car like this is most likely to spend its life.

Darren Brett > Sales Executive At six foot I find it difficult to get comfortable in a lot of cars, so the first thing I noticed about the 508 was the excellent driving position. It’s also stylish throughout, with a real executive feel and an engine that offers ample power and acceleration with amazing fuel economy. The only drawbacks are in the infotainment system, which doesn’t feature full postcode search and has fiddly steering wheel buttons. But aside from knocking the roller switch and ending up on a different station from time to time, there’s nothing here not to like.

OTR PRICE £22,275 POWER 140bhp @ 4,000rpm TORQUE 240lb.ft @ 2,000rpm 0-62MPH 10.1 seconds TOP SPEED 130mph COMBINED MPG 56.5mpg CO2 130g/km (19% BiK)

fleetworldgroup.co.uk

FLEET MANAGEMENT

Something of an exaggeration Keith Allen Keith Allen, Managing Director of ALD Automotive, looks at the future of the company car and the fleet industry.

“ The CO2-based company car tax regime is acknowledged as a total success”

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

advertisement feature

“The report of my death was an exaggeration” – Mark Twain, New York Journal, 2nd June 1897. A recent article in the trade press written by a tax specialist questions the future not only of the company car, but also of the leasing industry as a whole. However, premature obituaries can be the source of much consternation. In business they can cause organisations to review or abandon working practices which have stood the test of time, in favour of alternatives that offer little or no commercial advantage. Indeed, the organisation might even find itself worse off. Such would appear to be the case with the much refuted suggestion that the company car is dead and the end of the leasing industry is nigh. Experts have been predicting the demise of the company car for as long as anyone can remember, sometimes because they have an insight into financial matters that is unavailable to the common man, and sometimes because they have a vested interest in changing the status quo. While there is no doubt that taxation is being used to drive down emissions, the suggestion that this (or any) government has decided to wage war on the company car through an unpalatably punitive tax regime would be to ﬂy in the face of all commercial logic. As BVRLA Chief Executive John Lewis, succinctly put it: “The government introduced its emissions-based company car tax regime in April 2002 and it is acknowledged as a total success. “Since then, a reasonable, well-signposted tightening of the CO2 threshold has encouraged carmakers to produce lower emission vehicles and incentivised ﬂeets to choose them, with many drivers paying less tax each time they change their car. The current tax regime has been such a success that the average newly-registered company car now has lower emissions than its privately-owned equivalent.” Against this backdrop it is hard to imagine why the Chancellor might wish to wage war on the company car, given that fleets have led the way in the adoption of new, low-emission technologies. And that’s before you consider the effect on the annual tax take from company car drivers and their employers. From the latter’s perspective, the prospect of

swapping a new, reliable and fuel-efficient car supplied and managed by a contract hire company, to an older, less reliable and less environmentally friendly car bought by the employee and maintained at their discretion must be a dreadful prospect. To say that the company car is here forever in its current form might be a little naïve. The market has come under pressure from many different directions in the past – fiscal, environmental, risk management and social to name but a few, but the industry has always pulled through relatively unscathed and in some cases better off for the experience. And the contract hire and leasing industry has made a significant contribution of its own to this process, often developing new products and services to meet the needs of fleet operators in what would otherwise be most challenging circumstances. The sheer purchasing power of the major contract hire companies is such that when a problem presents itself to the fleet industry, they are often better placed to provide a solution that individual organisations would be if working on their own. A classic example of this is ALD’s ProFleet2 system (pictured below) which helps customers meet a number of cost control, risk management, taxation, security and environmental challenges in an unbelievably cost-effective package that would be unachievable by individual fleets.

Through the auspices of BVRLA the leasing industry has already proclaimed that “reports of its death are an exaggeration”. And if history is our guide to the future, the likelihood is that the industry will face up to its challenges, overcome them through innovation, and move forward in better shape than ever.

March 2012

FLEETW RLD

SUPPLIER DIRECTORY

AUCTIONS & REMARKETING

ACCIDENT MANAGEMENT

RISK MANAGEMENT

DAILY RENTAL

FLEET MANAGEMENT SOFTWARE

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

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

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

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

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

VEHICLE DATA

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

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

Drive Software Solutions Tel: 01438 317731

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

Roadmarque Tel: 0845 053 0331 www.roadmarque.com

DRIVER LICENCE CHECKING

FAST-FITS & TYRES

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

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

Peak Performance Tel: 01246 244200 www.peakperformance.net

White Clarke Automotive Solutions Tel: 0870 787 2211

www.drivesoftwaresolutions.com

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

www.whiteclarkegroup.com

Cardinus Risk Management Tel: 01733 426015

Arnold Clark Car and Van Rental Tel: 0845 702 3946

www.cardinusfleet.com

www.arnoldclarkrental.com

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

CONTRACT HIRE, LEASING & FINANCE Fleet Alliance Tel: 0845 601 8407 www.fleetalliance.co.uk

Leasedrive Tel: 01344 466 466 www.leasedrive.com

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

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

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

Arnold Clark Vehicle Management

AA DriveTech Tel: 01256 495732

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

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

Bynx Tel: 01789 471600 www.bynx.com

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

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

www.AAdrivetech.com/fleetsafe

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

DriveTech

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

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

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

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

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

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

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

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

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

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

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

Full listings online at fleetworldgroup.co.uk The leading magazine for fleet decision-makers

January 2012

TELEMATICS & TRACKING

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

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

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

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

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

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

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

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

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

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

Trakm8 Tel: 01747 858 444 www.trakm8.com

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

DIARY DATE

FLEETW RLD

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

inside Seoul Searching

Leasing trends

Hyundai plans major fleet push

Is the contract hire industry due more change?

driving towards lower fleet emissions

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

fleetworldgroup.co.uk

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 002

in association with

NEW MODELS TESLA MODEL X SUV MERCEDES-BENZ CITAN EV

NEWS

U ISS

2 00NLINE O

BRITISH GAS TO TRIAL ELECTRIC NISSAN NV200 VAN

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VAN

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FLEETW RLD March 2012

‘The Euro 5 Fiat Ducato offers a great combination of carrying capacity and motive power, with surprisingly low emissions levels.’

March 2012

DRIVEN

Fiat Ducato

Words Dan Gilkes

specification MODEL Ducato 35 Maxi 2.3-litre BASIC PRICE £25,450 ENGINE 4-cyl/2,287cc FUEL INJECTION Multijet II common-rail POWER 130PS @ 3,600rpm TORQUE 320Nm @ 1,800rpm Weights (kg) GVW 3,500 KERB WEIGHT 1,975 PAYLOAD 1,525 MAX TRAILER WEIGHT Dimensions (mm)

2,500

LOAD SPACE LENGTH LOAD SPACE WIDTH

3,705 1,870

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

2,170 1,342 460 13m3

Cost considerations FUEL TANK CAPACITY 90 litres COMBINED MPG 38.2mpg CO2 emissions 195g/km OIL CHANGE 1 yr/30,000 miles WARRANTY 3 yr/120,000 miles

fleetworldgroup.co.uk

Fiat’s latest Ducato heavyweight may well look like a minor cosmetic upgrade, but there has been plenty going on under the skin too. Euro5 Multijet II engines now come with 110PS, 130PS and 148PS in 2.3-litre form, and a storming 177PS as a 3.0-litre. Our mid-range 130 Multijet II van is probably where the smart money will be spent, the engine pumping out a healthy 320Nm of torque and driving through a very smooth six-speed manual gearbox. That’s 8% more power than its predecessor, yet fuel use and emissions are down by 9%. While those figures look strong on their own, the big Fiat plays something of an eco card too. This L3H2 long and high van promises a remarkable 38.2mpg, while putting out just 195g/km of CO2. If you compare that with the same van from partner Citroen, which is armed with a 2.2-litre engine putting out similar power and torque figures, the French van claims 32.5mpg and 229g/km. The Ducato should have low running costs too, with service intervals now stretched to an amazing 30,000 miles, so visits to the dealer should be few and far between. The Fiat is a pleasure to drive, you ride very high up in the Ducato cab with a good view all round. The engine is quiet when cruising, yet pulls strongly in all gears, thanks to all that torque arriving at just 1,800rpm. The cab has been updated, and the good news is that you don’t have to specify the rather eye-watering red trim of our test vehicle. The dash feels well screwed together and has plenty of storage space. You can also fold down the back of the middle seat, to provide a table with clipboard built in. One small criticism would be the cup/bottle holders, which aren’t deep enough to hold a bottle upright while on the move. The glossy black centre console holds heating and enter-

tainment functions, with clear dials and buttons making it easy to operate on the move. You also get radio controls built into the steering wheel, making life easier for the driver. The Fiat is of course front-wheel drive, providing a low-loading height in the rear and secure handling up front. Disappointingly, ESP remains an option on the Ducato, costing just short of £350. If you do opt for ESP though, and you have a need for extra grip, you can also tick the box for Traction+, which uses the ESP to simulate the behaviour of a self-locking differential. Traction+ including ESP will set you back £450. While we’re talking money, at the time of testing, this Ducato would have cost you a reasonable £25,450 plus the VAT. However, since we had the van, Fiat Professional has literally blown that price out of the water with the launch of a special edition Ducato Tecnico. Based on the same 3,500kg gross vehicle weight 130PS L3H2 van, the Tecnico comes with manual air conditioning, front fog lights, Blue&Me with steering wheel controls, eco:Drive Professional software, a TomTom satnav power point on the dash with the TomTom Live navigator, Start&Stop, special wheel trims and reversing sensors. The best bit though is the price of just £16,995 OTR plus the VAT. That’s an incredible 26% off, which must make the Ducato Tecnico the CV bargain of the moment. It comes in red or white, or for an additional £100 you can have metallic grey. Fiat Professional also intends to make the Tecnico series available on a 3 tonne 130PS short wheelbase van, though there is no date yet for this one.

verdict The Euro5 Fiat Ducato offers a great combination of carrying capacity and motive power, with surprisingly low fuel consumption and emissions levels. It also promises low operating costs.

PREVIEW Commercial Vehicle Show 2012

CV SHOW PREVIEW Stand space is going fast at the NEC for the 2012 CV Show and it promises to be a busy few days. Whether you're looking for business information, equipment or a van world premiere, the CV Show is the place to find them.

Tourneo/Transit Concept

Vauxhall launches Combo

The Tourneo Concept will be on display on the Ford stand at the CV Show and Ford hopes to give the new Transit, due for launch in the first half of 2013 its global unveiling at the Show. The new Transit and Tourneo will be based on the first global van platform produced by the company, although North American versions are expected to be focused on the larger rearwheel-drive model. The new Transit will replace Ford’s long-running Econoline van in North America. The Tourneo Concept adopts Ford’s Kinetic design language from the passenger car range. It is fitted with eight seats and is designed to compete with the VW Caravelle and MercedesBenz Viano. The seats can be removed and offer a range of adjustment. Other features include a voice activated, in-vehicle connectivity system derived from Ford’s car range, a rearview camera and lane departure warning system. The concept is powered by a new 155PS variant of the Transit 2.2-litre common rail diesel, equipped with stop/start technology as standard. Other power ratings are carried over from the current Transit range at 100PS and 125PS and the model will be equipped with a six-speed manual gearbox and frontwheel drive. The front drive variant is not due to be sold in North America.

Vauxhall will launch the new Fiat Doblo-based Combo at the show, available with two wheelbase lengths, two heights, gross weights of 2,000kg and 2,300kg, two trim levels – Combo and Sportive and four diesel engine options. Long wheelbase L2 models offer load volume capacity of up to 4.2m3, with up to 3.4m3 available for short wheelbase L1 standard roof H1 models. High roof H2 L1 models offer up to 4.0m3 of load space, a L2H2 model is not available. L1 models are available with a rear roof flap allowing long loads such as ladders or pipes to be carried. Payload ranges between 750kg and 1,000kg, the highest payload available in its class. It also offers a towing capacity between 1,000kg and 1,500kg. All engines are equipped with automatic engine stop and start.

New Isuzu D-Max unveiled Isuzu will replace the Rodeo pickup in June with a new model, believed to be based on the Chevrolet Colorado pickup and called D-Max, the name used for the Rodeo in other parts of the world. Few details are available ahead of the show, but details of the D-Max for other markets show that engines and transmissions are carried over from the Rodeo, meaning 2.5-litre and 3.0-litre four-cylinder diesels. Two ratings of the 2.5-litre diesels are available in other markets, but it’s not clear if both 2.5 litre variants will be available to UK buyers. Currently Isuzu offers a 100PS variant of the 2.5-litre engine and a 120PS variant of the three-litre diesel. Model variants are likely to include 4x2 and 4x4 models, with the option of single, double or extended cab. The Chevrolet Colorado is not yet on sale in the UK, but is also expected to appear in the UK later in 2012.

fleetworldgroup.co.uk

PREVIEW Commercial Vehicle Show 2012

Eberspächer’s new diesel heater

Latest Spacevan launched at Show

Water and cabin heating specialist Eberspächer will launch a new range of cabin heaters at the show named Hydronic 2 Commercial. As with the Hydronic range that it replaces, the Hydronic 2 heats the coolant in the vehicle’s engine, keeping the cabin warm using the existing heater. Since it will operate at temperatures down to –40C, it means that the heater can be used to pre-heat the cabin and engine. Compared with the Hydronic range, Eberspächer claims that the new heaters are cheaper to run, easier to install, quieter in use and offer a longer service life. The Hydronic 2 is available in both 12 and 24-volt formats, suitable for car, light CV or commercial vehicle use. The company has also expanded its range of insulated containers for the show. The containers can be used to freeze, cool, warm or heat the contents, depending on model. They are available in a range of sizes to provide mobile controlled temperature storage.

Supertrucks will launch the latest variant of its high volume body, low loading height Spacevan at the CV Show, built on a Citroen Relay back-to-back cab. The 2012 model incorporates a revised aerodynamic package and more options than before, including a wider choice of side loading doors. The van on display features a 20.4m3 body, a 1,260kg payload capacity and a loading deck height of 190mm when fitted with the optional air suspension. Supertrucks stand will also display a long wheelbase, high-roof Ford Transit, part of an order from Glass Solutions, equipped with the company’s latest external glass racking, which incorporates a new quick retracting ladder system. This has been designed to provide safer and quicker access to the van’s roof rack, without the need to drill door panels or place too much strain on hinges.

Ingimex Sortimo

Hall 1 // Stand no. 1D70

RACKING SOLUTIONS. Lightweight, flexible and versatile van racking solutions to maximise effective payload.

call 0800 027 5644 www.sortimo.co.uk

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Celebrating its 40th Anniversary this year, bodybuilder Ingimex is replacing its Dropside and Tipper bodies for 3,500kg chassis cabs and will be extending its Boxvan range to fit additional OEM chassis. Both the Dropside and the Tipper have been re-engineered to meet EN12642, a European standard concerned with the strength of tie-down and lashing points. Lashing ring strength has been doubled, while the bulkhead can now safely carry a hefty 400kg, up from 250kg on previous models. However, Ingimex says that it has managed to reduce weight in both of the bodies, with the Tipper in particular offering an additional 100kg of carrying capacity. Through revised design the firm has taken out weight where not required, using alloys in place of steel and thinner sections in non-essential places. These changes in design have also allowed Ingimex to simplify the build and reduce assembly time, resulting in cost savings that are being passed to customers in the form of lower prices.

Come and visit us on

STAND 3A10

TRACKER Fleet from £169…

…we’ve got the answers you need Whatever your wish list for a greater understanding of how your fleet is being used, TRACKER the UK’s number 1 supplier of vehicle tracking systems can help. With 18 years’ experience in the telematics industry, and over 1 million units installed, TRACKER Fleet gives you the control you need to: Reduce fuel and overtime costs Optimise fleet utilisation and complete more jobs Ensure best driving practices Deliver improved service levels TRACKER Fleet provides you with all the information you need for a smooth running and efficient fleet – delivered to you via our brand new and easy to use website.

Find out more, call or visit...

0845 604 6099 www.TRACKER.co.uk

PREVIEW Commercial Vehicle Show 2012

Stayco

Sortimo

Vehicle step producer Stayco will launch three new products at the show. The first, its optional grid tread, developed for utility companies whose operators use the steps for site work. The tread has been designed to give extra grip to heavily soiled work boots and to prevent mud from building up on the top of the tread. Stayco’s second new product is a step designed specifically for the Iveco Daily. The Daily’s fuel tank makes it difficult to fit a conventional folding step on the nearside of the vehicle. Stayco says the step is also suitable for the Hyundai iLoad. Stayco will also launch a single tread foldout step at the CV Show. It’s designed to be mounted in standard van step wells. When folded down, the step increases the depth of the step as well as providing an extra step 250mm below the step well height.

Vehicle racking specialist Sortimo International has developed what is believed to be the first composite van racking system, called Globelyst C. Designed to work with the alloy framework of the company’s Globelyst M steel shelving, Globelyst C offers weight savings of 20-40 per cent when compared to a full metal system. The company has invested more than £8.3m in a new production hall and a composite pultrusion machine at its Zusmarshausen head office site in Germany. This allows Sortimo to create a range of composite components, including various shelving and drawer sections. The composite material is water and battery acid proof, very strong and lightweight. It is expected to carry a slight price premium over the Globelyst M product, at least until volumes grow. However the weight savings will allow higher payloads and should result in lower fuel consumption for part laden vehicles.

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• Fleet Policy Advic Advicee • Duty of Car Caree • V Vehicle eh hicle Ac Acquisition quisition • FFunding u unding • Grey fleet management nt • Salary Salary Sacrifice Sacrifice • Maintenance Maintenanc e e and Servicing • Vehicle Vehicle Rental • Accident Management nagement • Workshop Workshop Management Management e • Vehicle Vehicle Conversions Convversions

You Y ou o talk talk,, we we listen listen Theree is no ‘one Ther ‘one size sizze fits all’ all approach approach aatt V Venson. enson. on We o We sit do down wn and list listen en to to what what yyou ou ha have ve tto o say say and d then wee build a fleet pr programme financcial and oper operational w o amme tto ogr o meet yyour our financial ational objectives. objectivves. That’s That’ss because because our customers customers o aree aatt the he ar heart art of eeverything verything w wee do. W Wee put yyou o first, which me ou means ans yyou ou always alw ways feel feeel like like the most most important impo ortant person. pers on. On ttop op of tha tthat, t, w wee ccontinually ontinually de develop velop p ne new w sservices ervices and giv givee yyou ou nothing but the best in customer customer care. partnership. car e. All of which results results e in a true ssense ense of par t tnership.

To T o ﬁnd out mor moree call 08444 99 1402, ema email: ail: ssales@venson.com ales@venson.com orr visit www www.venson.com w.venson.com

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35% MORE AFFORDABLE THAN A DIESEL*. TIME TO SWITCH.

With diesel prices at an all-time high, isn’t it time you switched? The 100% electric Renault Kangoo Van Z.E. is now eligible for the new Plug-in-Van government grant, meaning prices start from just £13,592 excluding VAT and On The Road charges. And with lower running costs, zero road tax and exemption from the Congestion Charge, it’s up to 35% more affordable to own than an equivalent diesel van (10% if you operate outside London). Oh, did we mention it’s also International Van of the Year and What Van? Van of the Year 2012? To find out more, visit renault.co.uk/kangooze or visit your local dealer.

DRIVE THE CHANGE Business users only *Saving is based on 4 years and 10,000 miles per year. For full details of saving calculation please refer to renault.co.uk/kangooze Battery hire cost for 4 years and 10,000 miles per annum at £67 per month (excluding VAT). Official range of 106 miles according to the NEDC combined cycle. From price, after 20% Plug in Van grant deduction, starts from £13,592 plus VAT, delivery (£595) and first registration fee (£55). Vehicles are covered by a warranty package for up to 48 months. The first 2 years are unlimited mileage, followed by a further 2 years up to 100,000 miles. Please see the warranty terms and conditions (renault.co.uk/warranty) for further details. Servicing offer covers cars for 4 years or 48,000 miles and vans (excluding the Debut range) for 4 years or 80,000 miles, whichever comes first. Services must be carried out in line with the manufacturer’s minimum maintenance programme requirements and servicing intervals, and can only be carried out at a Renault Approved outlet. Renault Assistance Roadside Cover is provided in association with the AA. Cover from month 0 to 36 includes assistance at the roadside and home, national recovery, onward travel and European cover. Cover from month 37 to 48 includes Roadside and Homestart (including a local tow to an authorised Renault dealer). The provider of this cover is the Automobile Association Limited. For Finance, guarantees and indemnities may be required. You must be at least 18 and a UK resident (excluding the Isle of Man and Channel Islands) to apply. Finance provided by RCI Financial Services Limited, PO Box 149, Watford WD17 1FJ. Available at participating dealers only. Not available in conjunction with any other schemes or finance offers, please check with your local dealer for information. Offers are available to retail and business customers (but exclude fleet customers with own terms), and are valid on new vehicles, at point of new vehicle registration, when ordered from 1st February 2012 until further notice. Visit renault.co.uk/4plus

PREVIEW Commercial Vehicle Show 2012

Citroen Citroen’s stand will include the recently revised Citroen Berlingo and Dispatch vans, which have been given a minor facelift for 2012. The changes also bring some small improvements in fuel consumption. The Berlingo is distinguished by the wider grille, revised badging and headlamps. Inside, the trim has been revised too. Similar changes have been applied to the Dispatch, which gains hill start assist and a speed limiter/cruise control among the options. The Grip Control system from the Berlingo, offering improved traction is available for the first time. Dispatch also benefits from minor improvements in to fuel consumption.

Brigade launches wireless camera monitoring system Alarm manufacturer Brigade Electronics will launch a digital wireless camera monitoring system at the CV Show. Aimed principally at articulated truck fleets, the system is said to reduce fitting times because the need for wiring runs is much reduced, but it is also suitable for light CV use.

TomTom teams up with FTA TomTom will launch its new partnership with the Freight Transport Association’s Van Excellence programme at the CV Show. ‘Self-regulation is important in ensuring high levels of operational best practice and our technology can help to provide the framework companies need to maintain those standards’, said Giles Margerison, director UK & Ireland TomTom Business Solutions..

Mark Cartwright Head of vans & LCVs Freight Transport Association

Vanloda

Giles Margerison Director UK & Ireland TomTom Business Solutions

Hall 3 // Stand no. 3E24

TRACKER Tracker will be showing its new Tracker Fleet telematics system at the CV Show. Features include Transient Voltage Detection to accurately determine when the vehicle’s engine is running. Battery powered modules are available with the system, meaning trailers can be tracked.

fleetworldgroup.co.uk

LeasePlan

Hall 1 // Stand no. 1C48

Isuzu Truck unveils ”I-Vision” Isuzu Truck will launch ”I-Vision” at the CV Show, the company’s range of telematics products, including Isuzu Motors Japan’s online Mimamori system. ‘Not only does I-Vision provide standard vehicle tracking and two-way messaging facilities but also offers additional intelligent features such as driver style characteristics, fuel consumption and vehicle diagnostics/prognostics’, said Isuzu Truck marketing director Keith Child.

FINELY TUNED LEASING STARTS HERE Talk to us at stand C48 in hall 1 WWW.LEASEPLAN.CO.UK

Ingimex

Hall 1 // Stand no. 1E40

DFSK Launches new model range Chinese van maker DFSK will unveil a new model at the CV Show, moving the manufacturer up a size from the range of microvans launched last autumn. The Loadhopper V series is said to be around 15% larger than the current Loadhopper range and is expected to arrive in showrooms in late 2012. Models will include a van, as well as single and double-cab pickups.

Ashwoods Ashwoods Automotive will be announcing a telematics system called EcoDrive at the CV Show. Developed initially for the Royal Mail and recently installed in 200 Royal Mail vehicles, EcoDrive is a compact visual and audible aid for drivers that fits over the existing dash panel in a range of popular van models. EcoDrive monitors driving style providing real-time feedback through green, amber and red light bars on the dash. Aggressive or careless drivers who register in the amber or red areas will receive two audible warnings to improve their driving, before a warning message is sent to the fleet manager. Ashwoods delivers a weekly report to fleet managers, listing each vehicle’s performance, fuel consumption and the time spent in each colour band through that week. This report also ranks the company’s drivers according to their driving style. The system can be purchased as a whole vehicle solution or retrofit and moved from one vehicle to another as required. The retrofit cost is from £250 per unit, with a monthly subscription depending on the number of vehicles involved of around £10.

Our products speak for themselves. For the best in Tippers, Dropsides, Box Vans and a wide range of product enhancements; call: 01952 585833, email: sales@ingimex.com, visit: www.ingimex.com or Hall 1 Stand E40 at the CV Show.

Bott

Hall 1 // Stand no. 1D44

bott Vehicle racking and enhancement specialists

01530 410600 www.bottltd.co.uk

March 2012

MARKET OVERVIEW Risk Management

AA DriveTech

ALD Automotive

DriveTech

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 verification, 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

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.

Contact: Helen Fisk helen.ﬁsk@aldautomotive.com

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

Contact: Jennifer Edwards-Reid Tel: 01256 495732 ﬂeetsafe@AAdrivetech.com www.AAdrivetech.com/ﬂeetsafe

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

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’, including CPC Periodic Training, is a multi-award winning range of risk management solutions, which deliver 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 CPC, Duty of Care, CSR and Environmental objectives, delivering significant costs savings through fewer accidents and lower costs. …‘Better Driving’ means ‘Better Business’

Contact: Kirstie Snape Kirstie.snape@peakperformance.net www.peakperformance.net

Tel: 01246 244200

RAC Risk Management Roadmarque

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

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

Contact: Dr Gerhard Manogg enquiries@roadmarque.com

Contact Name: Christian McKay cmckay@ﬂeetriskmanagement.net www.racﬂeetriskmanagement.co.uk

fleetworldgroup.co.uk

Tel: 0845 053 0331 www.roadmarque.com

Tel: 0870 606 2606

Do you oﬀer psychometric driver proﬁling?

Do you offer a classroom-based LCV driver training programme? Do your instructors provide a demonstration drive? Do you offer operator licence training? Do you offer CPC Training? Do you offer Driver CPC Periodic Training? Do your instructors carry out a driver eyesight test? Do you offer a licence checking facility? Are your training programmes Insurance Company approved? Do you offer Post Accident Investigations training? Do you offer e-training as part of your programme?

Key to services

Do you oﬀer on-line LCV driver appraisal?

AA DriveTech

ALD Automotive

IAM Drive & Survive

Peak Performance

RAC Risk Management

Roadmarque

Service provided

Service unavailable Do you oﬀer risk assessment for LCV’s as part of your programme? Do you oﬀer an on-the-road LCV driver training programme?

VAN FLEETW RLD

internationalfleetworld.com

fleetworldgroup.co.uk

evfleetworld.co.uk

March 2012

NUM8ER5 G4ME the fleet month in figures

94g/km CO2 emissions of the forthcoming Volvo V40 DRIVe, which will give the carmaker a very important five-door C-Segment model . SOURCE > Volvo

30,000 How many jobs the Road Haulage Association predicts would be created by a 5p per litre cut in fuel duty. SOURCE > RHA

24% 7 Percentage of 17-24 year-old drivers who said they use smartphones for e-mail and social networking while driving.

Number of electric vans eligible for the Plug-in Van Grant, which gives discounts of 20%, (up to ÂŁ8,000) off the purchase price when bought new. . SOURCE > DfT

SOURCE > IAM

ZERO Fixed B pillars on the Ford B-MAX mini-MPV. SOURCE > Ford

fleetworldgroup.co.uk

134.5

The range, in miles, of a Toyota Prius Plug-in Hybrid on one gallon of petrol. SOURCE > Toyota

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

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

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

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

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

Arnold Clark Vehicle Management

Tel: 0141 332 2626 www.acvm.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

Volkswagen Group Leasing Tel: 0870 333 2229

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

Full listings online at fleetworldgroup.co.uk DAILY RENTAL Avis Rent A Car Tel: 0844 544 5000 www.avis.co.uk

www.volkswagengroupleasing.co.uk

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

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

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

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

Full listings online at fleetworldgroup.co.uk TELEMATICS & TRACKING

FUEL MANAGEMENT

Trakm8 Tel: 01747 858 444 www.trakm8.com

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

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

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

FAST-FITS & TYRES

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

ATS Euromaster Tel: 0121 325 8842 www.atseuromaster.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

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

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

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

Full listings online at fleetworldgroup.co.uk

ACCIDENT MANAGEMENT

HEALTH & SAFETY COMPLIANCE

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

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

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

VAN FLEETW RLD SUPPLIER DIRECTORY

January 2010

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

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

Professional Driver Services Tel: 0871 200 2217

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

Roadmarque Tel: 0845 053 0331 www.roadmarque.com

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

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

www.pdsuk.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 March 2012

One day, everyone will expect to have this information Whether you work in Fleet, Finance or in HR, having access to accurate and timely data allows you to make informed decisions quickly and easily, saving you both time and money. With ProFleet2 telematics by your side, not only will you be alerted to key events to reduce cost, risk and your carbon footprint, but benchmarking fleet performance becomes an effortless task. And with in-built driver consent you can rest assured your employees will be kept on-side too. Partnerships that work. Contact us today and ask for a free trial* rhys.harrhy@aldautomotive.com

* Terms and conditions apply