International Fleet World April 2012 by Fleet World Group

Think you know Hyundai?

Think Again.

New Generation Hyundai i30. www.hyundai.com

Fuel consumption in MPG (l/100km) for i30 range: Urban 29.7-68.9 (9.5-4.1), Extra Urban 54.3-80.7 (5.2-3.5), Combined 41.5-76.3 (6.8-3.7), CO2 Emissions 159-97g/km.

APRIL 2012

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driving towards lower

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inside SWOT

Focusing on fleet After a tough few years for Toyota, the company is back on track...

Honda Civic

Eastern promise Driver training in Tanzania

On show Geneva review

APRIL 2012

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

PRE-REGISTER NOW AT

evfleetshow.co.uk

driving towards lower

fleet emissions

18/4/2012

INTERNATIONAL

FLEETW RLD internationalfleetworld.com

inside SWOT

Focusing on fleet After a tough few years for Toyota, the company is back on track...

Honda Civic

Eastern promise Driver training in Tanzania

On show Geneva review

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

Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email ifw@fleetworldgroup.co.uk web fleetworldgroup.co.uk

STAG Publications

VIEWPOINT

CONTENTS

Fiat boss Sergio Marchionne is not one to mince his words. He banged heads together at Fiat and turned the company around after he arrived and is famously and refreshingly blunt in interviews with journalists. So if anyone can bang politicians’ heads together, Sergio should be the man. He is quite right to say that the motor industry would be better off without tariff and non-tariff barriers to trade – so would most industries. But it is also true to say that the first steps that emerging economies take to protect their fledgling industries is to build them up. Car makers cannot operate in China without a local partner, as Marchionne knows only too well, and that may indeed be part of the frustration he was expressing on behalf of the European motor manufacturers association ACEA. You can see why. Local vehicle manufacturers have doubtless done all they can to persuade the Chinese government that their industry needs protecting from a flood of foreign imports if it is to develop. But I can also sympathise with Marchionne’s view that European politicians should not readily write off years of manufacturing and engineering expertise. It’s just a tough argument to make when Europe is home to some of the best and most profitable vehicle makers as well as those that are struggling, when the industry has reacted slowly to changing its ways. Low emission cars have taken too long to develop and the industry is still bedevilled with overcapacity. No, Europe should not write off its motor industry, but there is a limit to what can be done for companies that have not got their act together.

04 News Analysis 10 Geneva Motor Show 14 2012 Fleet Calendar 16 Interview ...with Carl Ortell, President of ARI.

18 Fleet Strategy The benefits of daily rental for fleets.

21 Fleet Strategy European residual value confidence.

22 Fleet Strategy Driver training in Tanzania.

24 EV & Low CO2 Fleet Show 2012 Preview of this month’s Silverstone event.

28 Industry Analysis Are electric vehicles for the masses?

30 Fleet Focus: MEXICO 32 Operator Profile LEASEPLAN

34 Fleet Profile TOYOTA / LEXUS

41 Launch Report Hyundai i30 / Ford Focus EcoBoost / Fiat Panda / Opel Combo.

46 S.W.O.T. Honda Civic

48 Fleet in figures 50 In the desert

10 18 32 42

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John Kendall Editor

IFW April 2012

news analysis

Arval reveals 2012 plans Following the opening of a subsidiary in Denmark in January, Leasing provider Arval has laid out further plans for the year. The company describes the move into Denmark as ”The first step in a broader plan to get established in Scandinavian countries.” ”I am happy to announce that our presence in Scandinavia will be reinforced by a subsidiary in Finland, which will be operational within the next few months” explains Arval CEO Philippe Bismut, ”Of course, Arval will also continue to consolidate its new subsidiaries particularly in Brazil, Russia, India and Turkey, where full-service leasing is currently booming.” The company also plans to improve its services for small and medium enterprises (SMEs) in Europe. It plans to do this by what it describes as a multi-channel offer that brings together car manufacturers, brokers, dealers and retail banking networks, notably those of parent company BNP Paribas.

Global data key to better discounts says fleet logistics Fleet management provider Fleet Logistics reckons that many international fleet managers are missing out on substantial manufacturer discounts and cost reductions because they do not have consolidated data on their global fleets. ”We’re seeing that there’s a pretty strong trend in all of indirect purchasing and as a result in the fleet area for companies to centralise purchasing, says Fleet Logistics CEO Peter Soliman. The trend has shifted from centralisation across Europe to some companies establishing global purchasing teams”, he says. ”That’s a good thing in that you get more scale effects and more professionalism, but to make it work, you need more transparency.” Mr Soliman says that leasing companies have tried to collate the data, but this means gathering data on competitors and other leasing companies are not prepared to share sensitive information. This makes fleet management companies ideally suited to gathering the data, reckons Mr Soliman. Fleet Logistics launched its web-based global reporting platform, Fleet.Global last year. ”From a pure business case standpoint, you enable a customer to pull together the volumes that they’re buying from a manufacturer around the world and saying, ”Here is the number of cars I am buying from you worldwide and please extend your rebates based on those volumes. That alone justifies the product”, he says. The same process can be applied to other commodities such as tyres and fleet insurance.

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ACEA calls for change in trade negotiations President of the European Automobile Manufacturers Association (ACEA), Sergio Marchionne, CEO of Fiat has called on the European Commission and EU Member States to change how they conduct trade negotiations. ”Globalization is disruptive, but it can also be transformative, offering new opportunities to sell, to source and to grow”, Marchionne said. ”The test ahead of us is to adapt to new competitive realities while preserving and strengthening the values that are the foundation for the European Union.” Speaking on behalf of ACEA members, Marchionne said that the industry’s long-term economic prospects need further liberalisation of markets and a reduction of barriers to trade and investment. ”In choosing liberalised markets, it is critical that Europe foster an internal economic framework that is more competitive than the one that exists today”, he continued, ”In parallel, Europe needs to push for the world to become more of a level playing field, with equal access and opportunities for all of the players involved. ”Unfortunately we are, at present, far from such competitive conditions and even further from such equilibrium. In fact, we find ourselves in the bizarre situation in which Europe is pushing for one Free Trade Agreement after another – and not always with mutual benefits – while internally, we’re suffering from inflexibilities and other restraints on our competitiveness. ”A recognition of the importance of strategic sectors must determine our trade policy and approach to trade negotiations. Manufacturing creates high wages, fosters research and development and helps maintain a trade surplus. In short, manufacturing industries are key to sustaining economic growth and prosperity in Europe.” Marchionne underlined how other countries recognise the economic importance of the automotive sector, ”It makes zero sense for Europe to use the auto industry as a bargaining chip to give away in return for doubtful benefits for other sectors.” He called for tariffs to be dismantled on all sides and for non-tariff barriers to be eliminated. ”The way the EU has dealt with South Korea is an example of how it should not be done, casting shadows over the negotiations with Japan and India where the stakes are even higher.”

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Recharging specialists light up EV & Low CO2 Fleet Show Solution providers from the electric vehicle recharging sector who provide the vital links to keep electric vehicles running efficiently will line up alongside motor manufacturers and leasing companies at the EV & Low CO2 Fleet driving towards lower fleet emissions Show which takes place at Silverstone on Wednesday 18th April. Four of the recharging industry’s major players – ABB, Ecar Connectors, ENSTO and Rolec Services – have taken space in the event’s indoor exhibition area in order to explain to fleet managers how they can provide the optimum on-site recharging solution for electric vehicles. The availability of a public charging infrastructure will be necessary to ensure widespread adoption of EVs and, while electric vehicle charging points are currently publicly available in a number of local authorities and shopping centres throughout the UK, much still needs to be done to provide the necessary facilities. Event organiser and Fleet World managing editor, Ross Durkin, said: ”The EV & Low CO2 Fleet Show is going to bring together exhibitors from right across the supply chain and none are more important now than the companies that can install recharging systems for fleets. ”Whether companies have dedicated parking bays with EV recharging points or pay for the installation of domestic units at drivers’ home addresses, it is essential that they seek advice from organisations that can demonstrate a clear understanding of the market.” The event has also attracted a number of contract hire and leasing companies, including Venson Automotive Solutions and Inchcape Fleet Solutions, allowing fleet buyers to discuss the supply and funding of electric vehicles as well as the full range of other low-emission cars and vans with contract hire providers. Venson Automotive Solutions’ managing director, Samantha Roff, said: ”It’s essential for us to be able to provide our customers with concise and impartial advice on all vehicles. Interest in the EV market has been growing steadily over the last two years with many fleets reviewing the potential for integrating the technology into their operation.” The 2012 EV & Low CO2 Fleet Show is being organised by Fleet World magazine in association with the British Vehicle Rental & Leasing Association, the trade association of the UK’s leasing

THE FLEET EVENT OF THE YEAR...

and rental industries. It is being sponsored by the Energy Saving Trust, a non-profit organisation jointly funded by the Government and private sector to help fightclimate change and cut UK carbon dioxide emissions. The show will be based in the new state-of-the-art Silverstone Wing conference and event facility, situated in the heart of the Grand Prix Circuit, and boasting two exhibition halls, a conference hall, banqueting facilities and the latest technical and AV equipment. The EV & Low CO2 Fleet Show will allow visitors to: • Test drive the latest petrol-electric hybrids, diesel-electric hybrids, fuel-cell hybrids and electric range-extenders, as well as the latest low-emission petrol and diesel engine vehicles. • Discuss future drivetrain strategies with leading motor manufacturers. • Find out more about low-emission light commercial vehicles • Talk to charging point suppliers and recharging infrastructure providers. • Discuss low-carbon vehicle supply with leading leasing suppliers. The day will also include an interesting and informative seminar session presented by leading academics and top company executives. Full details will be announced nearer the event. There will also be a Question Time-style debate, sponsored by Venson Automotive Solutions and chaired by BVRLA Chief Executive, John Lewis, at which fleet decision makers can discuss some of the topics presented earlier in the day. All test-driving of electric, hybrid and other low-CO2 vehicles will include two or three laps of the Stowe Circuit, a separate infield circuit with its own facilities, and there will be provision for visitors to book provisional test drives in advance directly with the relevant motor manufacturer.

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IFW April 2012

news analysis

ARI Partners in Low Emission Truck Project Global fleet services provider ARI has launched a case study to analyse the potential for reducing vehicle emissions using a diesel powered truck in the US. In partnership with Isuzu Commercial Truck of America, Johnson Refrigerated Truck Bodies, Thermo King and Deli Express/E.A. Sween Company, the team aims to produce a lighter-weight diesel truck with fuel consumption reduced by 50%. Isuzu will provide the diesel chassis, Johnson Truck Bodies will fit it with a lightweight insulated body and Thermo King will provide efficient refrigeration units. The truck is expected to reduce annual carbon dioxide emissions by 3.8 tonnes. ”For many fleets, alternative fuel is not the only way to make a positive impact on emissions and fuel consumption. Rather than trying to put our clients into a box, we work side by side with them to identify the most innovative, efficient and economical solutions”, says said Elisa Durand, Manager of Strategic Consulting, Analysis & Sustainability at ARI.

Sixt launches in Thailand Leasing and rental company Sixt has launched a new service in Thailand, offering holiday and business customers a range of premium rental cars and limousines. Sixt launched 12 sites in March in the country’s busiest holiday and business regions, including the airports in the capital Bangkok and popular tourist destinations of Phuket. Sixt will offer premium models from BMW, Mercedes, Honda and Toyota, among a range of vehicles including compact, mid-sized and larger saloons. Vehicles will be available to rent from one day to a period of several weeks. The company works with a franchise partner for Thailand, Master Car Rentals, part of the Milenium Group Thailand, the country’s BMW and MINI importer. Sixt is aiming to gain a ”significant” market share and sees Thailand as a key step in its Asian expansion plans. The company already operates in South Korea, India, Nepal, Singapore, Mongolia and New Caledonia.

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Record results for VW in 2011 The Volkswagen Group notched up record sales, sales revenue and earnings in 2011. The Group sold more than eight million vehicles for the first time. Group sales revenue rose 25.6% in the fiscal year to €159.3bn from €126.9bn. Consolidated operating profit rose €4.1bn to €11.3bn. The Group reported product savings of €1.1bn. Growth and development costs contributed to the €2.6bn in fixed costs. The operating margin rose from 5.6% to 7.1%. The Group’s €2.6bn share of operating profit from Chinese joint ventures is not included in the consolidated figures. Pre-tax profit rose from €7.2bn to €18.9bn. Net liquidity fell from €18.6bn to €17.0bn. For the individual brands, VW passenger cars operating profit rose 74.7% to €3.8bn, on sales of 5.1 million cars, Audi recorded a rise of 60.1% to €5.3bn, on sales of 1.3 million cars. Skoda sales rose 15.3% to 879,000, noting substantial growth in Russia, India and China. Operating profit rose 66.1% to €743m. SEAT sold an additional 10,000 cars to reach a total of 350,000 and reduced its operating loss by €86m to €225m. Bentley deliveries rose from 5,117 cars to 7,003 and turned a 2010 operating loss of €235m into an operating profit of €8.0. VW commercial vehicles sales rose from 436,000 to 529,000 and operating profit rose from €232m to €449m. VW’s other commercial vehicle interests also posted good results with Scania deliveries up from 63,700 to 80,100 and operating profit up from €1.3bn to €1.4bn. MAN deliveries reached 24,750 and the company turned in an operating profit of €193m. Last but not least, VW Financial Services operating profit rose from €932m to €1.2bn. New finance, leasing and insurance contracts for the year numbered 3.1 million, an increase of 16.2%. Under the group’s ‘Strategy 2018’, the Group aims to reduce new vehicle average emissions to less than 120g/km of carbon dioxide by 2015. To achieve this target, the company says that each new vehicle generation must be 10-15% more efficient. Expect standard stop and start on all VW Group models. Production efficiency must also become 25% more environmentally friendly by 2018. VW Group predicts that sales will rise again in 2012. Speaking about the results, Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft said that the company would launch more than 40 new models this year, including the new Audi A3, unveiled at the Geneva Show and the new VW Golf.

Professor Dr. Martin Winterkorn, Volkswagen

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Record BMW sales drive 50% profit growth in 2011 The BMW Group reported record sales for 2011, up from 1,461,166 in 2010 to 1,668,982. This led to an increase in pretax profits of 52.1% from €60,477m to €68,821m. The supervisory board will recommend a dividend of €2.30 for ordinary shares and €2.32 for preference shares. The Automotive segment saw revenues New BMW 1 Series increase by 16.8% from €54,137m to €63,229 and pre-tax profit rise by 75.5% from €3,887m to €6,823m. BMW branded model sales rose 12.8% from 1,224,280 units in 2010, to 1,380,384 units. MINI sales rose 21.7% from 234,175 to 285,060. Rolls Royce sold more cars than in any previous year, up 30.5% from 2,711 in 2010 to 3,538. Group sales rose 8.5% in Europe to 858,383 and 14.4% in North America to 341,345 (306,349 in the USA). Sales in Asia rose 31.1% to 375,452, in China by 37.7% to 233,630 and in Japan by 9.2% to 47,663. The financial services division saw revenues climb by 5.4% from €16,617m to €17,510m and pre-tax profits rise 47.4% from €1,214m to €1,790m. The division was managing 3,592,093 contracts, up 12.6% on 2010. 1,196,610 new leases were signed during the year, 10.5% more than 2010. Credit finance business rose by 4.6% during the year and leasing by 25%. The proportion of new BMW Group vehicles financed by the division was 41.1%, a fall of 7.1 percentage points on 2010. BMW attributes this to the inclusion of Chinese market figures for the first time. The proportion of financed or leased vehicles in China is far lower than the average in other markets.

St Louis hosts NAFA Institute and Expo in April The North American Fleet Association NAFA holds its annual Institute and Expo at the America’s Center in St Louis, Missouri, USA from 21-24 April. The event will feature over 60 hours of fleet educational sessions aimed at corporate, government and public safety fleets. The Expo features more than 250 exhibitors showcasing products and services. Two keynote speakers will offer a view of the future. Dr. Peter Bishop, Associate Professor of Human Sciences and Chair of the graduate programme in Studies of the Future at the University of HoustonClear Lake, and Jim Kenzie, Chief Auto Reviewer for the Toronto Star’s Wheels section. Dr. Bishop’s presentation, scheduled for Sunday 22 April is called, ”Making Sense of the Future: A Journey into Future Time”. According to NAFA, the presentation will paint a picture of past, present and future technology and explain how it has swept away everything in its past. On Monday 23, Jim Kenzie will present, “The Future of Cars, And the People Who Drive Them”. Kenzie will offer his thoughts on safety advances in vehicle and road design.

in brief... Passat for Malaysia VW began production of the Passat from SKD kits in Malaysia in March, in partnership with DRB-HICOM. Work has also begun on a new production hall at the Pekan plant to produce the Jetta and Polo from CKD kits for sale in Malaysia.

Kia Slovak production up Kia produced over 252,000 cars and 359,000 engines at its Zilina plant in Slovakia in 2011. This was 10 and 12% respectively more than 2010. €110m will be invested in the plant this year for production of the new cee’d. The plant is expected to raise production to 285,000 cars this year.

Top US safety rating for CX-5 The US Insurance Institute for Highway Safety has awarded the Mazda CX-5 its “Top Safety Pick” for 2012, the Institute’s highest safety rating, earning highest category ratings in frontal offset, side, rear and roof strength tests.

Leasing business soars in emerging markets Finaccord research suggests that the private finance market for cars in the ten fastest growing emerging markets nearly doubled in recent years. The value of gross advances and assets leased in Argentina, Brazil, China, India, Indonesia, Mexico, South Africa, South Korea, Taiwan and Thailand grew from $96.0bn US in 2007 to $182.1bn US in 2011.

Athlon car lease seal for Tesla S Athlon Car Lease and EV maker Tesla Motors have announced an agreement to introduce the Model S to corporate fleets in Europe. The programme will include Sweden, Portugal and Poland.

IFW April 2012

A Daimler Brand

Just 114 g /km CO2: even in silver metallic, this is a green company car. With emissions of just 114 g /km CO2, the B 180 CDI BlueEFFICIENCY sets new benchmarks when it comes to efficiency – thanks to state-of-the-art technological features such as the ECO start /stop function fitted as standard and new 7G-DCT dual-clutch transmission. The new B-Class combines low fuel consumption and CO2 values with enhanced driving pleasure, high safety standards and a roomy interior space concept. www.mercedes-benz.com/fleet Fuel consumption urban /extra-urban /combined: 5.6–5.4 /4.1–3.8 /4.6–4.4 l /100 km; combined CO2 emissions: 121–114 g /km.* *Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.

motor show review GENEVA MOTOR SHOW

GENEVA: THE HIGHLIGHTS IFW’s John Kendall, Steve Moody and Alex Grant pick out the fleet favourites from the recent Geneva Motor Show.

Ford

Ford B-Max

Ford’s 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 (4.0l/100km). 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, Peugeot 1007, Opel/Vauxhall 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.

Honda Honda’s UK 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 (UK). Lighter than any other diesel engine of its size and with CO2 emissions in the Civic of 95g/km, with 120PS, Hummel said the UK-built motor shows the irm is commited to being a serious player in the vital corporate market again. Also on stand was the CR-V 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.

CR-V concept

Mercedes-Benz New A-Class

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Undoubtedly a star of the show, the gorgeous new A-Class is certain to become a regular sight in company car parks. It represents a radical departure from the previous A-Class models. Gone are the MPV layout and high seating position, instead, Mercedes is clearly chasing the BMW 1 Series and Audi A3 with the latest model. Standard kit includes radar-based ‘Collision Prevention Assist’, which will alert drivers to possible obstacles and prepare the system for rapid braking. Options include an Apple iPhone app to integrate the phone with the car’s on-board system. It’s longer, wider and lower than the current A-Class and will use engines from the B-Class. These include a 115PS or 156PS 1.6-litre petrol, a 211PS two-litre petrol and 109PS or 136PS 1.8-litre diesel. A 177PS 2.2-litre diesel completes the range and CO2 emissions will be as low as 99g/km. It will be on sale towards the end of the year. Get your orders in early.

Mitsubishi 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 also 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 Mitsubishi can do that, may take EVs into a Outlander new, more successful chapter.

SEAT SEAT is reviving the Toledo with a coupe-like, sub-Exeo model said to look similar to this near -production study shown at Geneva. Looking similar to the facelifted Ibiza and new Mii it was shown alongside, it wears SEAT’s new front end and has a distinct similarit y to the IBL concept shown at the Frankfurt Motor Show . Creased body lines and a new style of clean-cut design mark a new style for the carmaker, 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.

Chevrolet

wagon at Chevrolet launched the Cruze station 130PS new a de inclu ons opti Geneva. Engine 2 emissions of CO g erin deliv el, dies itre 1.7-l itre turbo 119g/km. There’s a new 140PS 1.4-l start feaand stop c mati Auto too. petrol engine It’s 168mm el. dies itre 2.0-l the and , both on s ture up to 1,500 longer than the hatchback and offers s down. seat rear the with e spac litres of load stability ic tron Standard safety kit includes elec ration. integ one rtph sma de control. Options inclu

Chevrolet Cruze

Audi It’s 80kg lighter than its predecessor and is the irst VW Group model to use the company’s new MQB platform. It looks like a scaled up A1 and is roughly the same size as its predecessor, with a slightly longer wheelbase and it’s wider too. Inside there’s a new dashboard and the MQB platform opens the way for more driver assistance systems, including traf ic sign detection and parking assistance. There are three engines initially, a 122PS 1.4 TFSI and 180PS 1.8 TFSI petrol and 143 2.0TDI diesel. Audi claims average fuel economy improvements of 12% across the range. Still to come is a 1.4TFSI with cylinder de-activation and Quattro all-wheel-drive.

SEAT Toledo

Audi A3

Volkswagen

Volkswagen up!

Volkswagen’s up! model explosion continued apace with the unveiling of the ive-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 irm 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.

IFW April 2012

motor show review GENEVA MOTOR SHOW 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 (100km/h) reached in 5.4 seconds and a 155mph (250km/h) top speed. An M Sport version will be available from launch. Also on show was BMW’s new M-Sport diesel models. The new six-cylinder, triple-turbocharged diesel engine produces 381PS and 740Nm of torque, allowing the M550d to accelerate to 62mph (100km/h) in 4.7 seconds while returning almost 45mpg.

Fiat 500L Citroën Citroën revealed its derivative of the Mitsubishi ASX, badged C4 Aircross, as did Peugeot in the shape of the 4008. 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 class, with the front wheel drive 1.6-litre HDI 115 matching the Nissan Qashqai and Mazda CX-5 at 119g/km.

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 Pun to Twinair. 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 85g/km 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, it offers one of the biggest load areas in its class – at 1,625 litres – with the seats folded flat. Engine options will be the same as the hatch. At the opposite end of the Hyundai range, the 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.

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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 also a leap, which has resulted in a car that 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 (3.70l/100km) 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 Opel/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.

New Kia Cee’d SW

Peugeot Peugeot has always performed well in the B-segment, selling 15 million vehicles in its ‘2’ series over a 30-year lifespan. And while the 207 didn’t quite capture the imagination of buyers, the 208 is a clever and distinctive car that’s looking to more than ill the void left by its predecessor. Weight has been reduced by an average of 110kg across the range, while a new line-up of three-cylinder petrol and diesel engines bring several variants under 100g/km. Peugeot said the reduced weight hasn’t compromised interior space and adds to a sharpened driving experience, while build quality feels up to the standard set by the Germanic 508. Expect a 200PS, sub-1,000kg GTI to follow early next year.

Peugeot 208

Opel

Opel Mokka

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 dual-clutch automatics. Notably all of them are compatible with hybrid technology, hinting at a full line-up of Opel 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.

Nissan Nissan has revealed very little about the Invitation B-segment car, but announced at Geneva that it would be built at the car maker’s Sunderland, UK plant with 400 jobs created as a result and a further 1,600 people to be employed by the supply chain. The production version will go on sale alongside the Micra, with annual production of 100,000 anticipated. All models will be badged Pure Drive, with a sub100g/km version due at the most economical end of the range, and feature Nissan’s Around View Monitor top-down parking assistance cameras and Safety Shield Technologies to boost driver awareness. Invitation also features a similar dashboard design to the LEAF, with a gloss black iPad-like centre console.

Nissan Invitation

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 five-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 480inspired 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. The carmaker said it offers a sporty, connected driving experience, and comes with engines ranging from the 254PS T5 petrol to a 94g/km DRIVe diesel.

IFW April 2012

2012 fleet calendar

International Fleet World’s guide to what’s happening in the fleet industry in the next 12 months – when, where and how to find out more info... April 6-15 New York International Auto Show (PC) www.autoshowny.com 17-21 Amsterdam International Motor Show (CV) www.autorai.nl 18 EV & Low CO2 Fleet Show, Silverstone Circuit, UK (PC, LCV) www.evfleetshow.co.uk 21-24 NAFA Institute and Expo, St Louis, Missouri www.nafa.org/conference 24-26 The Commercial Vehicle Show, Birmingham, UK (CV) www.cvshow.com 25-2 May Beijing International Automotive Exhibition (PC, CV) www.china-autoshow.com June 6-10 Brno Autotec (CV) www.bvv.cz 14 Fleet Safety Forum Awards, Birmingham, UK www.fleetsafetyforum.org/events August 31-9 Sept Moscow Auto Salon (PC) www.oar-info.ru September 20-27 Hanover 64th International Motor Show (CV) www.iaa.de 22-30 Jakarta, 20th Indonesian International Motor Show (PC, LCV) www.dyandra.com 25-26 National Association of Police Fleet Managers Conference and Exhibition, Peterborough, UK www.napfmevent.org.uk 29-14 October Paris Mondiale de l’Automobile (PC, LCV) www.mondial-automobile.com October 10-12 Kiev International Motor Show, TIR’2012 (CV) www.autoexpo.ua 20-28 Sydney International Motor Show (PC, LCV) www.motorshow.com.au 24-4 November São Paulo, 27th International Automobile Trade Show (PC, LCV) www.salaodoautomovel.com.br November 2-11 Istanbul International Auto Show (PC) www.odd.org.tr 30-9 December Los Angeles Auto Show (PC) www.laautoshow.com December 7-16 Bologna Motor Show, International Automobile Exhibition (PC, LCV) www.gl-events.it January 2013 18-20 Tokyo Auto Salon (PC) www.tokyoautosalon.jp 19-27 North American International Auto Show, Detroit (PC) www.naias.com February 2013 8-17 Chicago Auto Show (PC) www.chicagoautoshow.com KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles

internationalfleetworld.com

interview

A FOCUS ON COMPLEX FLEETS ARI President, Carl Ortell explains to Ross Durkin why the US-headquartered organisation’s recent acquisition of UKbased FSG (formerly Fleet Support Group) provides growth opportunities in both new markets and new product areas. In the UK or any European country, a leet of 850,000 vehicles under management would put a company quite irmly at the top of the tree. Across the Atlantic, this staggering number of vehicles makes ARI – a part of the Holman Automotive Group – the second largest vehicle leet management organisation in North America, though following the recent acquisition of FSG the organisation is primed for further growth in a number of European markets. ARI has a workforce numbering more than 2,000 in of ices throughout the United States, Canada, Mexico, Puerto Rico, Europe and, now, the UK. Combined with its strategic partners the company – which is headquartered in Mount Laurel, New Jersey – controls more than 1.8 million leet vehicles globally. The company is very much technologydriven and in the US its focus is on complex leets where managing data is more important that wielding wrenches. A high proportion – around 70-75% – of its US leet comprises trucks and the company relies heavily on the use of telematics to gather information on every aspect of each vehicle’s operation. ARI is no stranger to the UK market where it has previously engaged in partnership agreements with other UK leasing companies, but the acquisition of FSG moves the growth plan into a new gear, providing a foothold in Europe from which a multi-national expansion plan can be launched. “We will leverage our European headquarters as a jumping-off point for further acquisitions,” said Mr Ortell.

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What is surprising, perhaps, is that whereas ARI is a major provider of leasing facilities in the US, FSG does not offer any vehicle funding products and has no plans to do so in the foreseeable future. Instead the company will introduce to FSG’s customers some of the sophisticated analytical tools already employed by its US clients, bene iting those who wish to ‘unbundle’ existing contract hire agreements. A raft of new, highly sophisticated realtime leet data capture solutions are set to be among the initiatives to be introduced irst to FSG customers, including Home Retail Group – the parent company of Argos and Homebase – Network Rail and Travis Perkins. All are long-established FSG customers, which operates 55,000 vehicles, and have already recorded signi icant leet operating cost savings as a result of the company’s zero tolerance approach to vehicle maintenance management mated to online reporting systems and analysis. “ARI is a technology-led organisation that has 20 times the resources of FSG,” said Ortell. “We have a team of 180 IT experts in the United States developing new vehicle management solutions and working in partnership with customers and hardware suppliers to deliver individual reporting products.” ARI also includes in its technology arsenal a range of predictive analysis tools to help public and private sector leets use historical data to forecast future costs. “During my discussions with FSG customers it is apparent that all leets are desperate to improve

their capture of real-time data on journeys, vehicles and drivers,” said Ortell. “ARI has reporting tools that deliver the highest quality analysis to leet managers throughout North America and provides highly sophisticated telematics solutions to individual customers, frequently in partnership with hardware suppliers. Our philosophy is ‘tell us the problem and we will deliver a solution’. “Technology is a major differentiator for ARI, and our experts have also developed a range of robust predictive analysis tools. Our investment in technology has resulted in the delivery of numerous online management reporting tools to business and we will bring those solutions to the UK and pilot them with FSG customers,” he added. FSG has also invested in customer support areas such as its online Interactive maintenance management reporting suite. However, the availability of ARI’s additional resources means signi icant new investment opportunities, which, according to Mr Ortell, will bene it UK customers and deliver reduced vehicle ownership costs. ARI says its customers in North America are ahead of UK-based leets in terms of using technological solutions to improve every aspect of vehicle, driver and journey management, but those resources will be introduced. “Crucially, FSG and ARI will also provide expert support to customers so they can use the new telematics and online reporting tools available to them to maximise cost-saving opportunities,” said Ortell.

We will leverage our European headquarters as a jumping-off point for further acquisitions Carl Ortell, President, ARI

IFW April 2012

fleet strategy

Global Fleets Local Issues Short-term rental is a convenience for customers and motor manufacturers alike. Could European legislators do more to help?

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Is there a good time for short-term rental companies? When the vehicle markets are vibrant, motor manufacturers will always be more interested in higher margin business but when the markets are down and vehicles are not selling, daily rental can be a way of boosting sales numbers, although rental customers may be thinner on the ground. Then when old stocks need to be moved on, rental companies can expect the phone will be ringing. For example, although the Spanish economy is currently very weak, that may make it attractive as a holiday destination and boost demand for rental cars. For many in our increasingly urban populations, car ownership can be problematic, with park-

In 2011, fully electric vehicles were introduced to some of our fleets Ken McCall, UK Managing Director, Europcar

ing restrictions. Rental may provide a more useful alternative. According to Euromonitor, the European daily rental market accounted for around 1.1 million vehicles in 2010 (some 2.3% fewer than in 2009), between them generating revenues of around €8.0 billion. Germany led the market by revenue, producing around 24% of the total, with Spain and France each generating 17%, the UK 15% and Italy 14%. Euromonitor’s analysis of 2010 business suggests that 52% of the market was in rentals to individuals, 40% to corporate customers and the remaining 8% to insurance/replacement business. Digging deeper into the ﬁgures shows that 65% of the

revenues came from airport rentals and the remaining 35% from other rental locations. In terms of the leading players in the market, Euromonitor’s data shows that four players commanded 71.4% of the European business in 2010. The Europcar group, including National and Alamo’s 5.4% share, led with a 26.7% share of the market, Avis, including Budget, took an 18.3% slice, Hertz 16.1% and Sixt 10.3%. Separately, the Leaseurope 2010 Annual Enquiry suggests that its short-term car rental members purchased 724,019 vehicles during the year and maintained a total ﬂeet of 517,533 vehicles. The members represented operate vehicles in France, Italy, Luxemburg, The Netherlands, the

Ukraine, and the UK. Leaseurope members represented by the British Vehicle Rental and Leasing Association (BVRLA) were responsible for 400,000 (55%) of the purchases, more than twice as many as those in France, responsible for the second highest number of purchases. Similarly, BVRLA members reported the highest number of vehicles on fleet, at 200,146. Auto Rental News magazine has compiled data on the US car rental sector and figures for 2011 show an average of 1,760,761 cars in service with US car rental companies. The largest share of these, some 52% are operated by Enterprise Holdings, which incorporates Alamo and Enterprise Rent-a-Car and National Car Rental. Enterprise operates almost three times as many cars as Hertz, with an estimated 320,000 cars, including subsidiary Advantage Rent-A-Car. The Avis Budget Group operated some 285,000 cars and Dollar Thrifty some 118,000. The remaining players all operated 11,500 cars or less. ARN reckoned that revenue from US rental operations was worth $22.396bn in 2011, up from $20.591bn in 2010. Enterprise Holdings 2011 revenue was worth just under 50% of the total at $11.1bn. In Europe, Europcar is a wholly-owned subsidiary of the French investment company Eurazeo, operating 10,000 hire locations around the world. The company claimed an average fleet of 193,000 vehicles in 2010, excluding franchisees. “Improving the customer experience, as well as investing in green business practices by building on our market-leading electric and hybrid vehicle offering will continue to be our focus”, Europcar’s UK managing director Ken McCall told IFW, “Indeed, Europcar remains committed to environmental considerations across the business which is demonstrated through our creation of a ‘green fleet’ as well as observing environmentally sound fleet maintenance practices, raising awareness of environmental issues within the company and adapting our internal processes to reduce carbon emissions. “In 2011, fully electric vehicles were introduced to some of our fleets (for example the Peugeot iOn and Nissan LEAF). Furthermore, Europcar and car2go GmBH created a new joint venture to accelerate and extend the car2go service, Europe-

IFW April 2012

fleet strategy

Global Fleets Local Issues ¡

wide. car2go is the world’s first one-way mobility service and has already been successfully launched in several cities in Europe and in North America.” Part of Europcar’s current development has been aimed at improving service for airport customers, “Internationally, not only do we have the strongest airport network, but we offer a free loyalty scheme, Privilege, which enables customers to be prioritised, avoid queues and be on their way as quickly as possible,” continues Mr McCall, “Privilege also gives members discounts on car hire and a range of other business travel services. “In our mission to simplify the car hire process as much as possible for our business customers – even before a hire has begun – we have also recently launched eReady which allows customers to activate their rental agreement online, speeding up checkout at the counter.” Avis Budget operates both Avis and Budget brands around the world. Avis operates from some 5,100 locations in more than 165 countries directly and through licenses. Budget is the smaller partner with 2,700 locations in over 120 countries including truck rental. The company operates the second largest truck rental operation in the United States, using a network of around 2,300 corporate-owned, dealer and franchised outlets. Some licensed outlets may offer light commercial vehicles, but, the company tells us, this is not part of the Avis Budget global business model. IFW profiled Sixt in the last issue and the German-based company is strongly rooted in Europe, with 12,000 vehicles in France and 26,000 in the UK – a growth of 40% in the past year. Germany remains the company’s largest market with 85,000 vehicles, split 70/30 cars to commercials. Overall the company operates 250,000 cars in 105 countries, but not all are short-term rental vehicles. Some €800m turnover was derived from rental operations in 2010. European rental companies are currently waiting for a consultation document, which the European commission is expected to circulate soon. At present cars registered in one EU member state can be temporarily

internationalfleetworld.com

imported to another, but the system understandably imposes time restrictions before that vehicle would be required to be reregistered in the second member state. The system appears to be designed for individuals who either become temporary workers in another EU member state or who are on extended visits. If we take Portugal as an example, a vehicle used by a visitor from another member state can be used for

Avis operates from some 5,100 locations in more than 165 countries

183 days per year without paying vehicle import tax. There are a string of other conditions too, including a period of ownership of at least 12 months, and limiting the number of vehicles eligible for exemption by the owner, among others. Since many fleets are now managing their fleets on a continent-wide or global basis, the system lacks sufficient flexibility. Since most European countries use left-handdrive vehicles it would help them if they

were able to transfer vehicles between member states to satisfy demand. For instance vehicles needed to service winter holiday destinations in the winter months, e.g. the Alpine ski resorts and then summer holiday destinations, for instance the Mediterranean coast. As it stands this could involve basing a vehicle in one country for several months and then another for a similar amount of time. According to the BVRLA, this would currently involve re-registering the vehicles in one country and then repeating the process to move them. To do so would be prohibitively expensive and involve a great deal of administration. If the EU were to ease the regulations and make it cost effective to move vehicles as required around the EU on a temporary basis, it would obviously enable companies to run their rental fleets more efficiently and possible reduce the number of vehicles that were needed in the first place. BVRLA chief executive John Lewis is chairman of Leaseurope’s Car Rental Working Group, “This would bring us a step closer to a true single European market for car rental,” he commented. Another issue that the BVRLA is involved with concerns the Olympic Games, which will be staged in the UK this summer. There is some uncertainty currently over how the Olympics will affect demand for car rental, principally in and around London and its airports. Although it’s a UK issue, it will clearly affect visitors to the Games from around the world. The BVRLA is planning to work with the principal UK rental operators to record forward reservation volumes for the period of the Olympics. The organisation will then consolidate the information and compare it with similar data from 2011 to try and determine if the industry does face a significant change in volumes. “The London Olympics is a one-off event and it is difficult to assess what the impact will be,” said John Lewis. “Hopefully, this exercise will help the industry to ensure it has enough vehicles available for the Games and avoid any possible knock-on effect for corporate rentals.”

fleet strategy

UK optimism declines in a stable European market Experteye analyses fleet trend costs across six of the major European markets. Following a positive twelve months, UK forecasted residual values have dropped by -1.7% in the last quarter, perhaps signalling a change of mood amongst British leasing companies. Currently showing least optimism in the future used vehicle market, the UK sits at the bottom of the six nations surveyed in the latest experteye European Leasing Index report. Germany (+1.2%) remains most positive in its forecasted RVs over the last three months, with Spain reporting a +0.6% rise, Portugal +0.2%, France +0.1% and Italy no change at all. The survey which tracks forecasted residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries uses data supplied by major leasing companies in each market. Apart from the UK RV shift, the latest figures indicate a very stable quarter across Europe with only marginal movement. Yet German confidence stands out in the twelve-month analysis, with a +6.3% rise in forecasted residual values since March 2011, very little shift in SMR budgets (+0.8%) and a resultant -3.4% drop in rental rates for German fleet operators. Italy, on the other hand, has seen a +6.2% increase in its SMR budgets, Portugal +5.9%, the UK +4.2% and France +3.3%. Only Spain has shown a reduction over the twelve-month period with SMR rates dropping by -3.3%.

Market summaries – 3 and 12 months to February 2012 FRANCE: There has been a shift in rental rates in France. After reporting the biggest hike in monthly lease costs at +4% during the last twelve months, France has shown the largest drop in rates in the recent quarter with a -1.4% drop. Since December 2011, the French market has also seen a -1.9% reduction in SMR budgets, the largest drop of all nations surveyed, after rising by +3.3% over the course of the year. And with forecasted residual values having climbed by +2.9% during the year, the quarterly igure is a more static +0.1%. GERMANY: Germany continues to show optimism in the future used vehicle market with a +6.3% increase in forecasted RVs for the year, and a +1.2% rise in the last quarter. This is the largest

annual and three-monthly increases of all the nations surveyed. During the course of the year, German leet operators have enjoyed a -3.4% drop in their rental rates, albeit settling to a steady -0.3% shift since December 2011. German SMR budgets have crept up by +0.4% during the last three months and +0.8% for the year. ITALY: Annual SMR costs have risen by +6.2% in Italy, the largest increase of all nations surveyed, however, there is a now a downward trend with a -1.3% shift reported in the last three months. For the twelve-month period Italy has shown least con idence in the future used vehicle market with a -1.4% drop, the largest of all nations surveyed, but in the last quarter there has been no movement in forecasted RVs at all. Perhaps surprising, amidst rising SMRs and falling residuals, is that rental rates have dropped – a -0.6% reduction in the last three months and -1.1% for the year. PORTUGAL: Portugal sits closely behind Italy with its rising SMR budgets, reporting a +5.9% increase since March 2011. This has reduced to +0.6% in the last quarter. With very little movement in Portuguese forecasted RVs, +0.2% rise since December 2011 and -0.1% drop since March 2011, rental rates have remained relatively static with a marginal +0.1% shift for the quarter and +0.3% for the year. SPAIN: Spain is the only nation to show a reduction in its SMR budgets for the year, with a -3.3% decrease, however, there has been a rise of +0.6% in the last quarter. Very little movement exists with forecasted residual values showing upward shifts of +0.6% for the quarter and +0.3% for the year. Rental rate stability is also reflected in the twelve-month figure of -1.0% and +0.1% for the three months. UK: UK forecasted residual values have dropped by -1.7% in the last quarter; the greatest reduction of all nations surveyed. This brings the UK overall twelve-month average down to +0.3% after some very strong optimism during 2011. Fleet operators, however, have felt little impact with rental rates moving by only +0.2% for the quarter and -0.5% for the year. Having seen SMR rates rise by +4.2% since March 2011, the last quarter is a picture of stability with a very small +0.4% shift.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Residual Values

France Germany Italy Portugal Spain UK

Forecast Service, Maintenance and Repair Costs

Current Rental Rates

3-month change 12-month change 3-month change 12-month change 3-month change 12-month change +0.1% +2.9% -1.9% +3.3% -1.4% +4.0% +1.2% +6.3% +0.4% +0.8% -0.3% -3.4% +0.0% -1.4% -1.3% +6.2% -0.6% -1.1% +0.2% -0.1% +0.6% +5.9% +0.1% +0.3% +0.6% +0.3% +0.6% -3.3% +0.1% -1.0% -1.7% +0.3% +0.4% +4.2% +0.2% -0.5%

Notes: • The comparisons are for vehicles with a contract duration of 36 months / 90,000km with the exception of Portugal (48 months / 120,000km). • Twelve-month comparisons show change since March 2011. • Three-month comparisons show change since December 2011.

• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or twelve months ago. • RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.

IFW April 2012

fleet strategy Driver Training

Full of eastern promise With UK fleets getting themselves into gear with the driver CPC training, IFW has been to Tanzania to look at the state of driver training there. It wasn’t pretty, as Ian Norwell reports.

I didn’t regard a single one of them as employable, but I selected three who I felt were trainable

internationalfleetworld.com

Driver training takes on a different meaning when you are confronted with the traf ic conditions in East Africa. Of the 92,000km of roads in Tanzania, a country four times the size of the UK, only 12,000km are blacktop, with the rest just dirt. And tarmac roads are a mixed blessing anyway. With a smoother surface, speeds increase and without the driver training to go with it, trouble follows. IFW joined a recent visit to Dar Es Salaam by a supporter’s consortium from Transaid, the UK road transport industry charity. They had been used to regular update meetings at Transaid’s Euston Road of ices in London, but this one was certainly going to be different. The number of premature deaths caused by road traf ic accidents in Tanzania, put it in third place behind HIV/AIDS and malaria. To reduce this toll, there is a desperate need for effective driver training and improved standards of leet maintenance. And with the roads in a very poor state, these become all the more

important. Many leets resort to organising their own trainers, but the raw material they have to work with is a big challenge. A fuel tanker haulier we spoke to was despondent at recruiting drivers for a new contract. ZH Poppe operates a leet of 78 Iveco Stralis on fuel distribution work as far a ield as Southern Sudan. He doesn’t advertise for drivers, it happens by word of mouth. He uses a driver panel to weed out those worth looking at and the interview priorities are naturally based on health and safety. From hundreds of applicants, his panel recently passed him 29 drivers to interview himself. He told us, “I didn’t regard a single one of them as employable, but I selected three who I felt were trainable.” Theory and practical tests will follow and background CRB checks will be made. Six months probation with another driver and then he’ll be satis ied. It’s only this thorough approach that’s helped him have an accident-free record for the last seven years. With 34,000 litres of petrol on the move, just one accident from a novice could put him out of business. We spotted no new trucks in his yard, and asked him why. He said, “There are very few new trucks on the roads over here. With the punishment they take from dirt highways and constant small scrapes and dings, it’s just not worth it.” His view is almost universally held and new truck sales in Tanzania are a very small part of the market. In a right hand drive environment, Poppe uses a ready supply of good quality used trucks from the UK, almost all from Iveco’s approved used catalogue. “They are a known value item for me. The quality is good and the automated gearboxes, which are now coming through in good numbers on my Stralis, are helping my fuel igures and keeping drivers’ attention on the road, where it should be,” he says. He’s the irst to agree that the need for driver training is desperate and he applauds Transaid’s work. Transaid was established after BandAid’s call to arms in the face of the Ethiopian famine, and it works with the National Institute of Transport (NIT) in Dar Es Salaam (“Dar”) to provide the vital training. When the logistics expertise in East Africa did not match the generosity of the rock concert’s audience and tonnes of food aid went to waste rotting on the dockside, it just couldn’t be allowed to happen again. That was the view particularly keenly held by HRH The Princess Royal, Patron of Save the Children. She threw down the challenge to the UK’s transport and logistics sector to ind a solution, and Transaid was born. It now has over twenty sponsors

from the UK’s freight transport industry who donate vehicles, funds and probably most important of all, people with expertise. When the African red tape is untangled from Iveco UK’s donated Stralis tractor, it will leave the dockside compound and get to work with the training team. For now, the Iveco importer stepped in and popped a ifth wheel coupling on to a Trakker 6x4 chassis so that students could get cracking. It’s the kind of lateral thinking you need in this place. Among the imported expertise is Chris Hill, 45. He’s an experienced tanker driver trainer. He's just lown home from his second stint in Africa. Two years ago, he was on a Transaid project in Zambia and he's just done two weeks in Dar. His ‘day job’ is as a fuel tanker driver-trainer for Hoyer UK at their Southampton terminal, where he has fourteen years of valuable experience. We found him at the NIT with a group of three students going through that tricky reversing manoeuvre that all articulated truck drivers must master. “Their thirst for knowledge and their willingness to learn is quite humbling, it’s very rewarding work,” he says. Another man on secondment, this time from the FTA, is Wyn Skyrme. An FTA Audit Engineer from south Wales, he has a different agenda. He's been in Dar for a month training inspectors from the Tanzanian police on the basics of how to spot trucks in dangerous condition. “It’s a bit like ‘Life on Mars’ out here,” says Wyn in his deep Welsh tones. “So many of the trucks are from the seventies, you just need to concentrate on the basics.” The odd loose wire or defective light that would get you a tug from VOSA in the UK, looks a bit limp when some operators are disconnecting trailer brakes to stop them wearing out. All this effort needs project management and it comes in the shape of Neil Rettie who is on a generous two-year secondment from Stagecoach Group. Away from his Inverness home, where he is a bus and coach driver-trainer, he tells me, “There’s no shortage of drivers here. When word of a truck driving job goes out, they are queuing round the block in the wee small hours. Sadly, very few of them have any skill at all, so truck driver training is essential if we are going to make any impression on the crash statistics.” It may all seem like a mountain that is impossible to climb, but progress has been made. Nobody doubts, however, that it will be a long haul.

5 TANZANIA IN PICTURES (CLOCKWISE FROM TOP LEFT): 1) Chris Hill, seconded from Hoyer UK, with trainees 2) Neil Rettie, seconded from Stagecoach Group 3) Gary Forster, CEO Transaid, presents donated Stralis to Eli Mgonja from NIT 4) Wyn Skyrme, Freight Transport Association Audit engineer from South Wales 5) Vehicles from the ZH Poppe fuel tanker fleet. Poppe is Treasurer and Spokesman for Tanzanian Truck Owners Association. opposite page: Donated Stralis tractor at the docks

IFW April 2012

sponsored by

in association with

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.

PRE-REGISTER NOW A

evfleetshow.co.uk

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 exective 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.

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.

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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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

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How Ford’s fleet strategy has allowed it to create truly global vehicl es

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inside SWOT

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Suzuki SX4

On show

LA & Tokyo review

Off balance

Lease accou

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industry analysis

Bernard Davies director, Fleet Force Ltd.

Electric for the masses? By the time you read this the Geneva Motor Show will be over and the motoring journalists will have attended all the launch events and published their irst impressions. Of course, missing from the Geneva show this year will be Saab – only time will tell if this brand can re-emerge, but to do so it will need a new philanthropic owner than can offer plenty of love and (quite) a few investment kroners! As I write this, my research is limited to whatever I can find on the internet, or may have heard through various industry contacts. The financial troubles of 2-3 years ago, while not forgotten, have not prevented product development and, as usual, many manufacturers have chosen this show to reveal their new models and concepts. Inevitably there are those vehicles about to start production and which we will expect to see on our roads every day, from the manufacturers that account for the vast majority of European new car sales, sitting alongside some fairly extravagant offerings from the usual suppliers of niche or premium vehicles. From the new Ferrari F12 Berlinetta or Lamborghini Aventador, to concept vehicles like the Range Rover Evoque convertible or hybrid and electric concepts in the form of the Bentley SUV or Rolls Royce 102EX Phantom, there’s plenty to view and review. But one headline suggesting that in future electric cars may be only for the rich caught my eye. The theory suggests that without government subsidies – from already stretched budgets – these cars (Rolls Royce 102EX) will be too expensive caused, no doubt, by rising raw material cost (increased demand), higher production costs and residual values, which in turn are not helped by general (used car) industry scepticism regarding battery life and replacement cost.

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Now, I’d like to do more to reduce my carbon emissions and an electric vehicle would go some way to achieving that – I particularly like the idea of refuelling in my garage – providing we conveniently ignore the carbon created when the electricity is created (nuclear/renewable aside) – but the capital cost or monthly battery lease charge for my usage makes the inancial equation unworkable. So, on one hand it’s being suggested that only the wealthy will be able afford to purchase these cars – while mainstream manufacturers continue to spend billions of dollars on their development – and on the other hand governments are challenging us (either directly or, more commonly, through taxation) to reduce our CO2 emissions. And Mr Muller-Otvos (chief executive of Rolls Royce) is quoted as saying: “We can’t use 12-cylinder engines forever”. I’ve touched on this subject previously, but that was before there was any suggestion that electric vehicles would be beyond the means of a large portion of the

population. This whole dilemma is not going to be easy to solve and it’s not going to go away, so it’s a good job that the manufacturer’s research budgets survived the cost-cutting of a few years ago to remain in the search for the ‘silver bullet’. But I wish they’d hurry up! When historians look back at the period from the second half of the 20th century to the mid-21st century will they be critical of our use (misuse?) of oil? Will it be viewed in the same way we regard the extinction of various animal species (the Dodo)? Because, it would seem there were alternatives available at the beginning of the 20th century. Coincidentally, also on display at Geneva, having been re-created from drawings, was an electric vehicle with a 44-cell battery pack, 2 x 2.5 petrol engines for battery charging and a 200-mile (320km) range. The original extended-range electric vehicle (Lohner Sempervivum Vivus or Always Alive) was designed by Ferdinand Porsche way back in 1900! Sort of, ‘back to the future’… In the future, electric cars may be only for the rich...

fleet focus Mexico

Mexico bounces back from recession Car manufacturer and oil producer, Mexico is also an important source of parts for the motor industry, as John Kendall reports. Mexico may be considerably smaller than its northern neighbour, the United States of America – at around 3,200km long from its northern-most to southernmost point, where it borders Belize and Guatemala – but it rates as the 12th largest economy in the world, ranked by GDP, according to the CIA. It is also the seventh largest oil producer, according to the same source, although production has been in decline in recent years, as the country’s largest oil field has become more depleted. Mexican oil is in the hands of the stateowned oil company Pemex, formed in 1938 when Mexico expelled oil companies from the country. The company is thought by some commentators to lack the technical expertise now required for new discoveries and to extract reserves once found. A deal in February between US and Mexican oil companies will open up further oil and gas exploration in the Gulf of Mexico, in previously disputed territory. Given the country’s oil reserves, it is perhaps no surprise that the country has a thriving motor industry, ranked the 8th largest in the world in 2011, according to production statistics from The International Organisation of Motor Vehicle Manufacturers, OICA. In total, Mexico produced 2,680,037 vehicles in 2011, up 14.4% on 2010. Of these, 1,657,080 were cars and 1,022,957 commercial vehicles. Production dates back to the early 1920s when Buick and shortly afterward Ford opened plants in Mexico. The industry had a chequered history until the 1990s when the signing of the North American Free Trade Agreement (NAFTA) agreement between Canada, Mexico and the US helped to give the industry a more purposeful future. Among the manufacturers producing motor vehicles in the country are BMW, Ford, General Motors, Honda, Mercedes-Benz, Renault/Nissan, Toyota and Volkswagen, which produced

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the last Beetle in Mexico in 2003. Nissan announced the construction of a new plant in Mexico in January, joining the company’s two existing plants. Like the rest of the global motor industry, the Mexican industry was badly affected by the 2008 financial crisis, with production dropping 28% in 2009 to 1,561,052. Since then, recovery has been rapid, with production up 50% in 2010 to 2,342,282. In February 2012, car and light truck production was up 24% compared with February 2010 to 242,317, the highest production figure for the month ever. The bumper figures were partly in anticipation of a revised trade agreement between Mexico and Brazil regarding vehicle exports. A row was sparked between the two countries after Brazil announced that it was considering ending a treaty signed between the two nations dating from 2002. The treaty gave the two countries preferential access to their respective car

markets. But on 15th March they signed a new agreement in which Mexico has agreed to limit its car exports to Brazil to $1.55bn US for three years. In addition, Mexico has agreed to raise the local content of those vehicles from 30% to 35% next year, then to 40% by 2016. Brazil’s concern is to raise the number of Mexican produced parts in exported Mexican cars, to reduce the number of cheaper parts fitted to vehicles, sourced from outside the region. Like the Mexican economy in general, the motor industry is export oriented. Of the 2011 total, 2,130,143 were exported, representing 79.5% of production. Most of this, around 80%, goes to the US, with the rest split more or less evenly between Europe and Latin America, hence the importance of the trade deal with Brazil. Around 1,100 automotive parts manufacturers operate in Mexico, including most major tier 1 suppliers.

Daimler Trucks North America: Official Opening Ceremony in Saltillo, Mexico on 27 February, 2009.

MEXICAN VEHICLE PRODUCTION Year

Total

% Change

2002

960,097

Car

844,573

1,804,670

2.0

2003

774,048

801,399

1,575,447

-12.7

2004

903,313

673,846

1,577,159

0.1

2005

989,840

680,563

1,684,238

6.8

2006

1,097,619

947,899

2,045,518

22.4

2007

1,209,097

886,148

2,095,245

2.4

2008

1,217,458

950,486

2,167,944

3.5

2009

942,876

618,176

1,561,052

-28.0

2010

1,386,148

956,134

2,342,282

50.0

2011

1,657,080

1,022,957

2,680,037

14.4

Source: OICA. Sales data for Mexico is difficult to find, but according to Scotiabank of Canada, car sales in Mexico averaged some 1.02m units per year between 2000 and 2008. Since the financial crisis, this has fallen, with sales of around 750,000 in 2009, 850,000 in 2010 and 900,000 in 2011. Scotiabank is forecasting a car market of 990,000 for 2012.

Given the countryâ&#x20AC;&#x2122;s oil reserves, it is perhaps no surprise that the country has a thriving motor industry...

OLD MEETS NEW Original Beetle meets the latest model. VW's Mexican plant built the last original Beetle in 2003 and is the home of the latest model.

IFW April 2012

operator profile LeasePlan

IS BIGGER BETTER? LeasePlan, by its own reckoning, is the world’s leading fleet and vehicle leasing company. A bold claim, but the facts and figures back up the marketing rhetoric, reports Tim Kendall.

Environmental sustainability is a large concern for every company these days and continues to grow in importance

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Established over 45 years ago in the Netherlands, LeasePlan is owned 50/50 by Volkswagen Bank and Fleet Investments B.V. and not only dominates its home market, but occupies top three positions across most of the 30 countries in which it operates. The company has morphed from humble beginnings in the 1960s as an equipment leasing business, to a multinational leet management giant, with 1.3 million vehicles on the road and 6,000 employees worldwide. In keeping with its size and global reach, its market expertise has helped the business adapt and remain pro itable, despite the myriad problems plaguing global economies recently: ‘The crisis which began in 2008 resulted in restricted capital for many of LeasePlan’s clients, which resulted in downsizing and de- leeting. LeasePlan’s expertise in leet management and car remarketing has helped clients become more ef icient, ensuring the company remains a valuable partner to its clients’, comments Keiron Lynch, Corporate Communications Manager. That would seem to be borne out by the igures. Two years of double digit growth and some strong headline inancials are hard to ignore – 2011 turnover across the group approached €7.4 billion, with a total operating pro it of just over €1 billion. Achieving such numbers has come through a mixture of organic and acquisitive growth, as well as diversi ication. However, LeasePlan’s stock-in-trade is leet management services in the business-to-business market, where it maintains an undeniably strong foothold. KEY MARKETS AND FIGURES As you’d expect of a multinational group in business for nearly 50 years, there are several strands to LeasePlan’s business model. That includes diversi ied revenue streams such as banking and motor insurance, as well as LeasePlan International, which offers leet management services to large multinationals operating in several countries. At the core is LeasePlan’s operational leasing business, with 950,000 vehicles

under full-service contract hire, a further 250,000 on a management only basis, and 45,000 under inance-only deals. LeasePlan’s strongest geographical markets are the United States, the Netherlands, France and the United Kingdom, with well over 100,000 vehicles in each territory. But the lion’s share of wheels on tarmac is in Europe, where the irm operates just under one million vehicles. But it’s also a company with strong market presence in most other mature leet markets around the world. LeasePlan is a long-established name in the American corporate leasing industry, having entered the US market in 1983, as Lynch explains; “The US represents the largest country in terms of leet size to LeasePlan. In addition to standard leet management offerings, LeasePlan USA offers government leet management services and a specialised truck division which provides custom services to some of the world’s largest companies.” It is also in the top ive players in the American leet market, with 210,000 vehicles. Other key territories include Australia, where it has a strong market share and a top three ranking. And despite the dire economic conditions and battered budgets characteristic of the Eurozone, it occupies the number one spot in Denmark, Sweden, Portugal, Spain and Belgium, and maintains a top three market share in Germany and Italy. However, the tough trading environment and an increasingly cost-conscious customer base means the company is not only looking cautiously forward, but also exploring new markets for growth opportunities. THE LEASEPLAN CUSTOMER BASE Smaller leets may be where the smart money is going in the short to medium term, but LeasePlan’s customer base is comprised primarily of larger clients, with 55% of the vehicle leet being leased to corporate or public entities requiring leet management services in one country. Multinationals, with leets exceeding 1,500 vehicles operating in more than three countries, make up a further 21% of the global client base, whilst SMErelated leasing operations constitute a much

smaller proportion, at 18% of the leet. Leasing products that it SMEs won’t necessarily suit complex multinationals, so a range of standardised products that can be tailored accordingly is LeasePlan’s solution. That translates into products like ‘Easy Plan’, a contract hire solution for SME customers that offers a basic service package at a ixed cost. By contrast, full service leasing products, such as ‘Partner Plan’, feature LeasePlan’s open calculation method of pricing. It’s proved a popular concept due to its transparency, which gives clients insight into costs actually incurred, rather than just budgeted, from the outset of a contract. The upside for customers being that if costs turn out to be lower than budgeted over their tenure of a vehicle, the client gets a refund at the end of the contract. DOWNSIZING AND GREENER FLEETS Cost isn’t the only area that customers are watching closely. In common with many other leet management companies, LeasePlan understands that downsizing, for cost and carbon footprint reduction, is the order of the day. “The portfolio mix has changed. Government taxation has reduced demand for less ef icient vehicles and increased it for more ef icient vehicles. Environmental sustainability – and its relation to economic sustainability – is a large concern for every company these days and continues to grow in importance,” explains Lynch. LeasePlan appears to be putting its ecocredentials where its corporate mouth is. ‘GreenPlan’ is a leet management programme aimed at making vehicle usage more ef icient and reducing emissions. This appetite for going green has also seen some industry irsts, including an agreement with Nissan to be the irst leasing company to offer the LEAF in Europe. The electric vehicle will be made available to LeasePlan customers in 13 European countries. A larger deal has also been signed with GM to offer the Vauxhall/Opel Ampera. The substance of GreenPlan is a consultative approach, advising clients on how to make car policies greener. In practice, that means looking at vehicle choice and in lu-

encing driver behaviour through training and education. GreenPlan also enables customers to drill down into leet data and understand key leet environmental indicators - including total leet CO2 emissions, or energy labels on a car-by-car basis across leets. There’s a symbiotic effect to this insight too – oversight of such information helps corporate customers trumpet their own shrinking carbon footprints to investors and stakeholders – both good for the environment and a powerful PR tool. Internally, LeasePlan practises what it preaches, using a standard of 130g/km to benchmark its own leet, and investing in offsetting activities where it misses that target. DISPOSAL Managing 1.3 million vehicles requires an effective disposal strategy, which LeasePlan operates through a variety of channels, including a dedicated auction brand, CarNext International. Based in Switzerland, CarNext puts end-of-lease vehicles in front of an international trade audience, who can buy via open or closed bidding, ixed ‘buy now’ pricing and other methods. Other disposal channels are employed, including direct to public sales and auction, using BCA and Manheim. THE FUTURE: GROWTH OPPORTUNITIES So what does the future hold for LeasePlan? Spreading its wings beyond established territories to offset market woes in Europe is part of the plan to weather the economic storm. “Due to the challenges in the global economy and in particular the Eurozone, LeasePlan is maintaining a selective growth strategy – meaning a cautious approach to acquisitions, while relying on autonomous growth in strong areas of business such as the US and UK.” Looking further into untapped markets is the solution, says Lynch, “Russia remains an area of interest and the economies of Brazil and India appear to be able to provide us with further growth. We’re seeing potential in smaller leets and still see acquisition opportunities in those places.”

IFW April 2012

fleet profile TOYOTA / LEXUS

FOCUSING ON FLEET...

It’s been a tough few years for Toyota, but the company is overcoming its troubles with a renewed focus on fleet. Mark Bursa reports. Toyota is on the march again this year. The leading Japanese automaker is forecasting its global sales total to reach 9.58m units, a strong rise on the 7.9m achieved in 2011. And while the company maintains reclaiming global leadership in the automotive world is not a goal, the fact remains that if it hits its target, it’ll be back at the top of the tree. Toyota did briefly achieve the top spot. When the credit crunch sent two of the US Big Three spiralling into bankruptcy in 2008, the automaker seized its chance and overtook struggling General Motors to become the number one automaker in terms of volume. But since then Toyota has had a raft of problems to deal with, while a resurgent GM and a growing Volkswagen have surged ahead of it in the global sales league. Toyota has had to negotiate a damaging global product recall involving faulty brake and accelerator pedals, the scale of which seemed to take the company by surprise. Toyota was accused of covering up the issue. At best, its slow response

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seemed inadequate, and only a bombproof reputation for reliability allowed Toyota to ride the crisis. But worse was to come, with the Japanese earthquake and tsunami of 2011, and major loods in Thailand, costing the company dearly in lost production. It could have been worse. In the immediate aftermath of the Japanese disaster, Toyota had forecast it would to lose production of 2 million vehicles, largely because several key electronics suppliers in north-east Japan had been completely wiped out. But in fact, only 760,000 units were lost between April and June. Amazingly, Toyota’s Japanese output was back to near-normal levels by September 2011, six months after the tragedy. However, the looding in Thailand reduced production by 280,000 vehicles between October and December, and Toyota estimates the two natural disasters reduced production by approximately 1 million vehicles. Subsequent production increases have resulted in 600,000 additional vehicles to make up for the lost

production, leaving a net loss in production of approximately 400,000 vehicles. Despite strenuous efforts to localise production around the world over the past 30 years or so, Toyota still relies on its massive Japanese facilities to supply key models to major markets, where in most cases local production is not suf icient to meet local demand. North American production (1.4m in 2010) still cannot cover local demand of 1.9m, so Japanese exports take up the slack. Some key models, notably the Prius hatch and most Lexus models, are only built in Japan. Indeed, the loss of crucial Prius output in 2011 was behind the accelerated efforts to restore Japanese output after the earthquake. And it is a focus on hybrids that will become one of the main thrusts of Toyota’s bid to reclaim the global number one spot. And leet will play an ever-increasing role too, both in established markets in North America, Western Europe and Australasia, and in emerging markets such as Russia and India.

EUROPEAN MANUFACTURING EU import quotas drove Toyota to setting up manufacturing facilities in Europe in the 1990s, starting, as with Nissan and Honda, in the UK, where major facilities were opened in 1992 at Derby, making mid-size cars, and on Deeside, making engines. These were followed by a small car plant at Valenciennes in northern France, and the Kolin plant in the Czech Republic, a joint venture with PSA Peugeot Citroen making minicars for all three brands, and two engine and transmission plants in southern Poland. These, along with a plant in Turkey, allow Toyota to source most of its European range locally. Only Prius of mainstream cars comes from Japan, along with all Lexus models. HiLux pick-ups come from Thailand and South Africa.

Toyota’s European sales peaked at 1.23m in 2007, buoyed by strong local production. But since then, a combination of a weak European economy and Toyota’s own problems has resulted in lower sales and market share lost to rivals. Last year, sales had fallen to 822,000, with the Earthquake costing 40,000 lost sales. In 2010, sales had fallen to 808,000. However, Toyota is confident that its sales have now bottomed out, and are likely to rise to 835,000 in 2012. Annual sales of 1m units should be achieved “within two to three years,” Didier Leroy, head of Toyota Motor Europe, told the Financial Times recently. Toyota is forecasting that the Western Europe car market will fall 5.0% this year

and the overall European market, including Eastern Europe and Russia, will fall 4.2%. Currently most plants are running below capacity, but production could be adjusted to meet speci ic spikes in demand. Production at the Valenciennes plant in France recently returned to three-shift working to cope with demand for Yaris and its new hybrid version.

It is a focus on hybrids that will become one of the main thrusts of Toyota’s bid to reclaim the global number one spot. IFW April 2012

fleet profile TOYOTA / LEXUS

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EUROPEAN FLEET SALES Toyota’s leet sales in Europe account for one-third of the total, according to Johan Verbois, General Manager Fleet & Remarketing at Toyota Motor Europe, which equates to around 270,000 vehicles a year. The majority of these sales are in mature leet markets – UK, Spain, Netherlands, Germany and France. But Verbois is keen to build up leet sales in other markets. Toyota has also performed well in markets where there is no local auto brand – such as Norway, Finland and Poland. “We have been increasing our leet focus for the past ive or six years,” he said. “Fleet has been identi ied as being one of the big breakthrough areas for us this year – the elements that we need on a European level are now being put in place.” A three-person team of international key account managers has recently been set up, with the intention of getting close to European or global head of ices of major leasing companies and multinational companies such as Shell, BP and GlaxoSmithKline, which run their leets on a pan-European or, increasingly, on a global basis. “Five years ago we started seeing companies move from local purchasing to panEuropean leet buying. Now we see some companies moving toward global purchasing,” said Verbois. The move is being driven by global corporate agendas, such as environmental policies. “A lot of companies have global targets. For example average CO2 emissions set at

130g/km, but with a desire to get to 120g/km and then 100g/km, and they try to be more strategic in their approach with the OEMs. A good recent example is the purchase of 500 Auris Hybrids by Spanish food giant Leche Pascual.” This suits Toyota, with its strong “green” image and its growing leet of hybrid models, Verbois believes. “We’re seen as a company with a true environmental focus so that makes it credible for them to deal with us.” The plan is to build consistent relationships with leet customers, with longer-term arrangements an essential part of those relationships. Minimum three-year deals are vital, with annual renewals. And the fact that most of the major leet offerings (apart from Prius and Lexus models) are built in Europe means customers no longer see Toyota as so much of a ‘Japanese’ brand. Verbois adds: “We have a good ongoing dialogue with the top European leasing companies. We are in contact with their European HQs, letting them know what is coming and optimising Total Cost of Ownership.” One market that is of limited interest is daily rental. “We do a small number of shortterm rental deals, mostly as part of marketing initiatives. For example, we supplied 1,000 new Yaris to Italian rental companies as part of a billboard campaign designed to get people into the new cars.” Toyota’s annual European supply to rental companies totals around 18,000 cars a year,

and is unlikely to grow signi icantly, as Verbois wants to make sure residual values are protected. Additionally, better data relating to total cost of ownership is required. “We are providing better stats and data, and we are more pro-active in the planning process,” Verbois said. Total Cost of Ownership becomes the Key Performance Indicator, and is now incorporated into product planning process.” He cites the example of the Prius, where data has been gathered from the many taxi operators that use the cars in the UK and Sweden. This has shown that the hybrid system’s regenerative braking system means brake pad wear is much lower than for the equivalent conventional car - careful drivers only need to replace their pads after around 70,000 miles. This information can be fed back to the leasing and contract hire companies, allowing them to factor lower maintenance into lower monthly rates. Future growth is likely to come from emerging markets such as Russia, Brazil and India. “We established a global leet team a year ago to try and understand global leet practices and anticipate global trends,” Verbois said. Russia presents dif iculties due to its sheer size, which makes it more dif icult for leasing companies to operate there. As a result, most leets tend to buy from local dealers, or direct from Toyota. Verbois believes Russia has good potential as Toyota is seen as a premium brand there – Camry in particular is a good seller.

IFW April 2012

fleet profile TOYOTA / LEXUS

NORTH AMERICA Toyota has built a major manufacturing base in the US, focusing on mainstream saloons and MPVs, plus pickups and SUVs. Vehicle production is concentrated on four major plants, one in Canada making Corolla, RAV4 and some Lexus models, and three in the US, including the massive Georgetown, Kentucky plant that makes the top-selling US Toyota, the Camry. Nevertheless, Toyota’s recent woes have impacted hard on its US market position, with Toyota ending 2011 with a 12.9% of the US car market, down from 17.9% in 2009. This position has been built largely through retail sales, and the company has largely avoided less pro itable leet sectors such as daily rental. However, Toyota has, for the short-term at least, reversed this position, with an uncharacteristic surge of sales to the daily rental sector at the start of 2012. Toyota’s leet sales rose 47% in January compared with a year earlier, largely thanks to a spike in sales to US rental companies, which accounted for 93% of Toyota’s leet sales for the month. Toyota typically sells 7-8% of its vehicles to rental leets. In January that rose to 18%. Without this, the company’s US sales would have been up less than 1% instead of 7.5%. And even with the extra rental sales, Toyota lagged behind the market average growth of 11%. Why the rental sales? Toyota says it is making up for contracts it could not ful il in the wake of the March 2011 Japanese earthquake, as retail customers were prioritised over rental leets. The move was also used to clear stocks of older models, including Yaris and Avalon. Toyota Motor Corp’s US sales chief Bob Carter (right) said the leet sales surge would not be a long-term trend. Fleet sales would remain high in February but would drop to more normal levels in March, he said. The company expects to supply less than 10% of its US sales total to leets in 2012. According to data from US analyst Edmunds.com, Toyota’s monthly leet sales did not go above 15% in the previous ive years. By contrast, GM sold 28% of its vehicles to leets in January, while 29% of Ford sales went to leets, largely on the back of the sort of business that Toyota does not win – such as police departments and other government agencies. Toyota is expected to focus on retail sales as it tries to rebuild its US sales. Again, hybrids will play a major role, with new versions of Prius, including the larger seven-seat Prius+, the sub-compact Prius C and the Prius plug-in hybrid being launched this year as part of a product initiative involving 19 new or updated vehicles.

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CHINA Recently, Toyota Motor Corp President Akio Toyoda outlined a new strategic plan for Toyota, including, for the irst time, an overall strategy for China, where Toyota has lagged behind its rivals. Akio Toyoda (right) has said that China is the most important market in the world, but Toyota has a market share of less than 10%, a long way behind General Motors and Volkswagen. Toyota was a relatively late entrant to China, but it has grown rapidly through two JVs with major automakers, First Automotive Works (FAW) and Guangzhou Automotive Industries Group (GAIG). It became a key strategic partner of FAW through a succession of takeovers involving an established automaker, Tianjin Daihatsu, in the northern Chinese city of Tianjin. In the late 1990s, Toyota brought Daihatsu more closely under its wing, and as a result restructured its agreement with Chinese automaker Tianjin Xiali to produce Toyota models from 2002. Toyota formed a JV with FAW in June 2000. It produced its irst car, a Yaris-based Vios compact sedan, in 2001. Corolla was added in 2003. In 2002 this was expanded into a broad alliance with FAW to build 300,000-400,000 cars and SUVs annually in China. In addition to its FAW ventures, Toyota in 2004 established a second strategic arrangement, a 50:50 venture with GAIG, called Guangzhou Toyota Motor. This gives Toyota a wider geographical spread within China, with FAW serving the north via production in Tianjin and Changchun, and Guangzhou serving the south of the country. This started making 100,000 Camrys a year in May 2006 using engines produced by another Toyota Guangzhou joint venture. In 2007 GTM installed a second line to build the Yaris hatchback at an initial rate of around 80,000 units a year. The plant will eventually have capacity of 360,000 units a year. The existing line can build 200,000 and a further line for the Highlander SUV will eventually add 160,000 units. The two JVs have separate retail networks, but distributes the cars from both JVs via a three-way logistics JV – Tong Fang Global Logistics – with its two Chinese partners. And under the latest strategy, both JVs will add hybrids to their production lines over the next three years. Toyota has set a sales target of 1 million cars in China in 2012, and wants this to grow to between 1.6m and 1.8m by 2015. By then, locally made hybrid units are expected to reach large-scale production at the FAW and GAIG JVs, and Toyota believes “new-energy” vehicles will account for 20% of its sales in China. Fleet sales in China are still relatively small, largely con ined to Government purchases and taxi leets. But any attempt to grow these might prove harder in the future following the announcement of a new state policy of sourcing from only local manufacturers for its government car leet. This is likely to affect sales of Toyota Camry, which has proven to be a popular car among government departments, alongside various Mercedes, Audi and Honda models. But now only Chinese brands are on the approved purchase list for 2012, and no cars above 1.8 litres or costing more than $28,600 will be allowed. Toyota may have to ind a route round this, possibly by branding cars as FAW, which it already does with some of the cars built at the former Daihatsu JV in Jilin – the Daihatsu name was dropped in China in 2009.

Being seen to be green boosts Prius to UK taxi fleets Toyota’s main UK leet offerings have tended to be the cars sourced from its Derby plant – Avensis and Auris. But for one sector, it’s the Prius hybrid that has been a surprise hit. The private hire market, especially in London, is increasingly being dominated by large, branded leets, such as Addison Lee. And several of the more recent market entrants have majored their brand image on an eco-friendly theme. It’s a good move – in the current economy, companies that maintain accounts with these irms don’t want their executives to be seen getting out of a Mercedes or BMW limousine – they want to be seen to be green. So travelling to airports, railway stations and meetings by Prius makes a lot of sense. It makes sense for the operators too - fuel economy in the third-generation Prius has been improved by 10% to 72.4mpg, along with tax-ef icient CO2 emissions of 89g/km, 14% lower than the second-generation version. Led by companies such as Greentomatocars, ClimateCars and WestOne Cars, there are now substantial fleets of Prius in use as licensed minicabs in London, offering a cleaner alternative to a traditional black cab. Around 1,000 Prius are in use, and the number is growing. And this year, the new Prius+ and plug-in versions are likely to appeal too – though Toyota is facing competition from other manufacturers’ hybrid offerings, such as the Peugeot 3008 Hybrid4 and the Opel Ampera. Nevertheless, the use of the increasingly iconic Prius is likely to continue. Addison Lee has itself inherited a large Prius leet thanks to its takeover of rival Lewis Day. And Greentomatocars has itself been acquired by French transport giant Transdev, and the distinctive brand could be extended nationally or even across Europe – giving further impetus to leet sales of the Prius.

India’s taxi market gives major impetus to Etios Toyota is making good progress in Indian taxi leets thanks to its new Etios “world car”, launched in 2010. Etios is a major car for Asian markets. The small three-box saloon is a mainstream product from India to China, and all Paci ic Rim points in between, and it is being built in India and Thailand, while a hatchback version is also made in Brazil. In India, Etios has rapidly become part of the growing “luxury taxi” segment in major cities including Mumbai, Delhi, Ahmedabad and Bangalore. As wealth increases in India, these modern taxi leets are replacing the old Hindustan Ambassadors and tuk-tuks, especially for business users. The segment has been dominated by Renault Logan (called Verito in India) and Tata Indigo, both comparable in size to the Etios. “We believe this is in sync with our premium brand strategy which will only take the Etios story forward. The luxury cab positioning is a critical part of that plan,” Sandeep Singh, Deputy Managing Director of Toyota Kirloskar Motor, told Indian media outlet Business Line. In Mumbai Toyota is supplying 1,000 Etios to a new taxi operator called TAB, and this number could grow further in the coming months as the current demand for luxury cabs in the city is increasing. In Delhi, volumes could be at par with Mumbai, while smaller volumes are being sold in Ahmedabad, Bangalore and Hyderabad.

IFW April 2012

SIMPLY CLEVER

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Combined fuel consumption and CO2 emissions for the Superb Combi model: 4.4–10.2 l/100 km, 114–237 g/km

launch report Fiat Panda p42 Ford Focus EcoBoost p43 Hyundai i30 p44 Opel Combo p45

A very convincing alternative to some of the carâ&#x20AC;&#x2122;s most popular engine choices. p43

IFW April 2012

launch report

Fiat Panda Has Fiat managed to maintain the Panda’s cheeky character? John Kendall finds out. SECTOR Supermini PRICE €8,880 – €11,720 (approx) FUEL 3.9 – 502l/100km CO2 99 – 120g/km The 500 may have stolen the limelight in recent years with its Retro looks and host of options, but in terms of practicality and fun, the Panda has in many ways been the better choice. Drivers who haven’t experienced the Panda’s charms would not expect a square-looking box on wheels either to be as much fun to drive, or be as quick, in the case of the more powerful variants. So the new Panda has a fair bit to live up to. Fiat has pumped in €800m worth of investment to build the car in Italy, Poland and Mexico. The company claims that the car is bigger, roomier, safer and more fuel-efficient than before and the claims seem to stack up. It’s bigger, without taking away its compact appeal and using subtle design cues, such as the six side windows, marks it out as a Panda, even though it is quite clearly a new car. Inside, the colour-keyed panels in the dash, doors and seats maintain that fun element, along with the chunkier steering wheel and improved dashboard. This includes an open storage space ahead of the front passenger – a design cue from the original Panda, says Fiat, with a glovebox concealed below it. Fiat claims one of the largest boots in class

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with 260 litres, up from 225 and 870 litres with the back seat folded. The high glass area is good for all-round visibility and making it feel light and airy inside. New seat designs have liberated vital centimetres inside without meaning that rock hard seats are part of the deal. It’s a small car with small engines. Initially, this means a carried over 69PS 1.2-litre four-cylinder engine from Fiat’s long running FIRE family and a carried over 75PS 1.3-litre diesel. The interest will be in the turbocharged 85PS, 875cc TwinAir two-cylinder petrol engine (or with 78PS when specified with the Dualogic automated gearbox). This summer, there will also be a 65PS naturally aspirated version of the engine. Diesel would be the expected fleet choice and the 1.3-litre diesel is the best all-rounder in terms of performance and fuel efficiency. But it comes at a price and fleet managers will have to consider whether a small car with a choice of fuel-efficient engines has much to gain from specifying an engine that comes at a price premium. Similarly the TwinAir has the fun factor in large amounts, but exploit the turbo power and fuel consumption takes a dive.

There is an ECO button to rein you in if you can’t resist the turbo. The sensible and cheapest fleet option would be the 1.2-litre engine, with standard automatic stop and start, which is smooth enough for motorway cruising and offers 5.2l/100km (54.3mpg) on the combined cycle. The downside is the highest Panda CO2 emissions at 120g/km, but it still offers a good price/economy trade-off. Whichever engine you choose, driving the Panda is still fun. The soft suspension masks good handling and it’s capable of gobbling up the miles in comfort. Options include Blue and Me TomTom2 LIVE with a dashboard fitting for the TomTom navigator, eliminating the need for a trailing cable to a 12v power socket. The system also offers a chance to download your driving data to a memory stick, but VW does it better with the system in the Up!

verdict Fiat excels with small cars and the Panda is one of its best. It maintains its predecessor’s cheeky character, while adding more space and the impressive TwinAir engine.

Ford Focus 1.0 EcoBoost Ford’s heavily downsized petrol engine could kick-start a revolution, says Alex Grant. SECTOR Lower medium PRICE €18,050 – €23,050 FUEL 4.8 – 5.1l/100km CO2 109 – 114g/km Despite the tendency for glittering concept cars to steal the limelight, it’s the mass-market cars that 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 outgoing model is going to introduce serious engine downsizing into the biggest sector of the European market in the form of a 1.0-litre, three-cylinder engine. It’s a cubic capacity which, until now, has been a total unknown in the C-segment. This isn’t an attempt to introduce a low price point to the Focus range. Instead, the newest and smallest member of Ford’s EcoBoost family is a very convincing alternative to some of the car’s most popular engine choices. It almost matches the 1.6 non-turbo petrol for power, but does so with a useful spread of torque and up to a 20% reduction in CO2 emissions. So low are its emissions that the 125PS version is only 5g/km worse off than the less powerful and more expensive 1.6 TDCi.

That’s not to say Ford won’t have some difficulties getting customers’ heads around the idea of a 1.0-litre Focus, but it does present an interesting ownership prospect. Diesel particulate filters can be a real problem in inner city use and complying with the forthcoming Euro6 emissions standards will make diesel models more expensive than they are now. It’s this cost of diesel aftertreatment technology that will make downsized petrol engines like this an attractive proposition. It features some very innovative engineering. The block is short enough to fit within 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. Cleverly, while most small turbocharged engines use extra fuel to bring down combustion temperatures under load, this scavenges cool inlet air into the turbo, allowing it to run leaner and save fuel. Most consumers won’t notice its tiny capacity on the road. The engine managed to pull almost from idle speeds without struggling heavily, and tackled steeply rising mountain roads without feeling over-

worked. This isn’t a unit that’ll set pulses racing, but even in the sizeable Focus 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 the best performance. By comparison, this offers respectable mid-range torque with a slight growl from under the bonnet as the only giveaway that it’s 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 it quite easily returned close to 5.0l/100km, suggesting it wouldn’t be impossible to find usable 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 customers, but any fears should quickly be put aside after a test drive.

verdict The 1.0 EcoBoost signals a potential European petrol revival, and Ford’s ability to offer a credible downsizing option for diesel doubters, who should be swayed by a drive.

IFW April 2012

launch report

Hyundai i30 Much-improved i30 is now on a par with the rest in its class, reckons Alex Grant. SECTOR Lower medium PRICE €17,450 – €21,950 FUEL 3.6 – 6.7l/100km CO2 97 – 157g/km Hyundai’s i30 launched in Europe just ﬁve years ago, and it’s enjoyed an impressive sales record ever since. In fact, the car has recorded an increase in sales each year since it was ﬁrst introduced, becoming the bestselling model in the manufacturer’s range. As it nears the end of its life, the outgoing car has grown from a Europe-only model to one now sold all over the world, including Korea and the United States. This is a great platform for the new one to build on, but to reach Hyundai’s 120,000unit production target it has to be even better than the car it replaces. Whereas the outgoing 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 front from the i40, which translates better here than it does on the smaller facelifted i10. Inside, the old i30 targeted European quality standards but ultimately fell slightly short of the mark. Its replacement has a functional but good-looking dashboard, with an improvement in aesthetics that makes it feel like it’s skipped a generation. This is now just as well designed and well finished as a car from a main-

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stream European producer, and incredibly spacious in both front and rear. Engine choices consist of 1.4 and 1.6-litre petrol, and a 1.4 and two 1.6-litre CRDi turbo diesels. Hyundai predicts the 1.6 CRDi will be the most popular, and appears to have spent the most time getting this one right. Unusually, both 1.6 CRDi power outputs can oﬀer CO2 emissions below the 1.4 when speciﬁed with the Blue Drive package. This includes low rolling resistance tyres, a stop/start system and alternator management, which charges the battery only during deceleration or times of reduced engine load. With this fitted, the 110PS version offers some of the lowest emissions in its class at 97g/km (in selected markets), while the 128PS emits as little as 100g/km when fitted 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, like the larger i40, vital for achieving its 50% fleet sales target. The lower powered version certainly doesn’t drive like an eco car. Hyundai benchmarked refinement against the sector-leading Volkswagen Golf, and it shows. The engine is incredibly quiet while cruis-

ing and not much more vocal when accelerating hard. Where it falls short is in road noise suppression and ride quality. 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 as good to drive as many European rivals. All models get Bluetooth and voice recognition with steering wheel audio and phone controls, and three of the four trims also feature Flex Steer, with switchable steering weights selected off the wheel itself, exactly where the button should be. Like the i40, this is a very credible offering in a tough segment. And whereas the old model had traces of cheap Korean plastics inside, the new i30 finally feels up to the job of taking on European rivals. If its predecessor’s record is anything to go by, it shouldn’t have a problem doing so.

verdict The new i30 offers a solid, European-feeling C-segment car with very competitive ownership costs. Mainstream manufacturers should worry about the latest Hyundai.

Opel Combo Based on a Fiat Doblo, the new Opel Combo ticks all the right boxes, says John Kendall. SECTOR Medium van PRICE €17,610 (approx) FUEL 7.3 – 10.4l/100km CO2 126 – 148g/km GM announced that the replacement Opel Combo would be based on the Fiat Doblo light CV range last year. The two companies have a history of collaboration, although that unravelled a few years ago. Indeed the Doblo and Combo have shared the jointly developed Fiat/GM 1.3-litre diesel for some time. Like the Doblo, the latest Combo is available with two wheelbase lengths, two heights, gross weights of 2,000kg and 2,300kg 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. The entry-level engine is the jointly developed GM/Fiat 1.3-litre common rail diesel producing 90PS. There is also a 90PS variant of the 1.6-litre common rail diesel, but this is only equipped with an automated ﬁve-speed gearbox. Opt for the

1.6-litre 105PS engine or range-topping 2.0-litre 135PS engine and six-speeds are standard. Choose the ecoFLEX 1.3-litre for fuel consumption between 57.6mpg (4.9l/100lm)/129g/km CO2 and 58.9mpg (4.8l/100km)/126g/km CO2. All Combos will only need servicing every 21,000 miles/33,000km. Standard kit includes electric windows, electric power steering, central locking and a steel front bulkhead. Opel/Vauxhall hopes to introduce a combi variant later on. Not surprisingly, the load space is identical to the Fiat Doblo and since Fiat has maximised the available space by providing a large squared off body, arguably at the expense of looks for the vehicle, the Combo offers a good range of loadspace options. With that, the payload available is the greatest in class at 1,000kg, comparable with many vans one size larger, but in the footprint of a vehicle that you could easily fit on your drive. That spaciousness also extends to the cab. Larger drivers won’t feel they are sitting in a tight space, which can be a tradeoff for vans in this class with a standard full height steel bulkhead. The wide body gives plenty of space around the driving position and the bulkhead does not restrict seat movement either, even tall

drivers should ﬁnd they are well provided for. Inevitably it will be the lower powered 1.3 and 1.6-litre engines that will be the choice for fleet managers, rather than the range topping 2.0-litre 135PS variant. The 1.3-litre engine has been around long enough to have proved itself and 90PS will provide all the power needed for most operators. The 1.6-litre 105PS variant is a good compromise for those running at higher weights, since it can still deliver acceptable fuel consumption. One of the advantages of the full height bulkhead is that noise levels in the cab are low and drivers are not subjected to the inevitable levels of noise that would come with an open cab. Then there are the safety issues. A full steel bulkhead will protect the cab occupants far better against inadequately secured loads shifting in an emergency. There’s much to like about the new Combo from a driver and fleet manager’s perspective.

verdict A large body and high payload capacity help to make the latest Combo a flexible fleet van. It is also car-like to drive and a range of efficient diesels add to the attractions.

IFW April 2012

S.W.O.T.

In association with

Honda Civic

Onto another level... We tested the latest Honda Civic in the February issue and now we have asked Fleet Influence to give us their expert opinion on the car.

internationalfleetworld.com

The steeply raked, slightly stubby bonnet now boasts a more aggressive grille treatment, which sweeps to the front wings suggesting a wider frontal area and track (only just, in fact). That is contradicted by the rear treatment, where the often-maligned rear spoiler becomes even more obtrusive and, together with the loss of that clever black panel below the bumper, looks narrower, taller and a little ungainly. On the diesel, the rear quarters carry small body coloured strakes to improve the aerodynamics and hence the emissions. The flanks retain the broad plastic wheel arch rim which can work, or not, according to choice of body colour. Inside, the trim materials are better than the old model, but could still be ‘softer’. The dashboard layout is improved, especially the ergonomics, yet it retains something of the spaceship with the speedo high up, just below the windscreen edge and the tachometer below in a three-set binnacle, flanked by temperature and fuel gauges. As ever, Honda seats are built for driving, offering plenty of support and comfort. The steering wheel is small and suits the small adjustments, which are all the sharp steering requires to point the car in the right direction. Rear legroom is excellent, as is headroom, and visibility is fine everywhere but backwards. It is that spoiler. It mars the rear view and is hard to justify – in styling or practical terms. Maybe it’s an aerodynamic thing, but others achieve similar without resorting to such extremes.

subtle fashion, Honda has made major improvements and built a deserving contender in its segment. This is a good package, likely to be underrated if not driven.

Upside; you at last get a rear wash wipe. This is a driver’s car – the steering, firm suspension and short overhangs all work in harmony to deliver a rewarding drive. The diesel remains the engine of choice – upgraded from the CDTi of the old model to the 110g/km CO2 i-DTEC, already wellestablished in the Accord. It offers an increase of 10PS to 150PS, a claimed 4.2l/100km (67.3 mpg) combined, up from 4.3l/100km (65.7 mpg), and 0.2 shaved off the 0-100km/h (62mph) at 8.5 seconds. With this engine, the car has a dual personality – a relatively quiet, effective and economic motorway cruiser, whilst doubling as a rewarding push on motor, with its well spaced six-speed transmission. The ride, on occasion, will jar, dependent upon the wheel and tyre combination fitted. Come on – you can’t have everything. Back to the practicality of the Civic. It has what Honda call ‘Magic Seats’ in the back. Don’t read too much into this, they won’t transform into a French Chateau or a heated swimming pool, but they are easy to fold and reveal plenty of storage space. Surprisingly, the boot capacity is slightly down on the outgoing model – 477 litres seats up (485) and 1,210 litres with the seats down (1,352). This Civic is an excellent rendering, especially in diesel form, of an economic, enjoyable, practical, performance hatchback – not to be underestimated.

WEAKNESSES The design of the new model is refined from its predecessor in appearance (much more than is apparent at first sight), but it is a little bit ‘marmite’ – you may love or hate it. The rear aspect has not developed the way the front has and the spoiler is determined to be a focal point – for good or bad. OPPORTUNITIES The widely anticipated 1.6-litre, 120PS diesel, unveiled at the Geneva Show, will help Honda capture a larger market, which its 2.2-litre diesel has previously been excluded from. With the right power and emissions – Honda is targeting 95g/km in the Civic – it should take the car to another level. Honda needs to raise its profile post Tsunami and take advantage of the quality of the models to rebuild market share. THREATS Delayed because of Honda’s issues with the Euro5 diesel engine, the new Civic launched around 12 months later than planned. That meant no diesel offering in the outgoing model and gave its competition the opportunity to steal a march and customers. Honda is now in catch-up and however good the new Civic may be, it is likely to remain on the back foot.

STRENGTHS In carrying out material changes in such a

CROSS BORDER COMPARISONS List Price

Portugal

Spain

Italy

Germany

France

Euro – Low end

19,180

20,000

18,900

18,750

16,950

18,600

Top end

30,925

33,050

32,300

33,050

30,250

32,350

£S – Low end

16,495

Top end Spec & Trim

26,595

Comfort

Elegance

Sport

Executive

EX-GT

Innova

Engines Petrol Diesel

1.4 i-VTEC (100PS)

1.8 i-VTEC (142PS)

2.2 i-DTEC (150PS)

IFW April 2012

fleet in figures

European economic uncertainty squeezes car market Golf remains the European best-seller, Renault takes the biggest plunge and Fiat has the lowest fleet average for car CO2 emissions. Only Mercedes-Benz and Audi posted a sales increase for January and February

February registration data from the European Automobile Manufacturers Association ACEA shows that the continuing uncertainty in the European economy is continuing to put pressure on new car sales. Compared with February 2011, new car registrations in February 2012 for the EU 27 nations were down 9.7% to 888,878. Taking data for the first two months of the year, 1,858,066 new cars were registered in the EU, some 8.3% less than in the same period last year. Of the individual nations, Germany had the best month, with registrations down by 108 on February 2011. Despite Spainâ&#x20AC;&#x2122;s economic woes, new car registrations fell by 2.1% compared with February 2011 and by 2.5% in the UK. Italy and France experienced the biggest reductions in

Top 10 Brands

% Change Feb

Feb YtD 2012

Feb YtD 2011

% Change YtD

120,883

-1.6%

248,182

249,868

-0.7%

69,036

74,982

-7.9%

152,967

162,108

-5.6%

Renault

68,918

94,727

-27.2%

132,878

184,122

-27.8%

Peugeot

61,233

77,069

-20.5%

128,865

156,668

-17.7%

Opel/Vauxhall

58,969

73,085

-19.3%

116,796

145,981

-20.0%

Citroen

56,995

64,941

-12.2%

114,152

130,700

-12.7%

Fiat

46,475

57,464

-19.1%

95,362

117,193

-18.6%

Audi

45,157

46,521

-2.9%

96,572

94,584

+2.1%

Mercedes-Benz

40,348

37,151

+8.6%

84,541

77,921

+8.5%

BMW

39,961

41,211

-3.0%

83,609

87,724

-4.7%

Make

Feb 2012

Feb 2011

Volkswagen

118,938

Ford

Source - JATO

internationalfleetworld.com

recorded increased sales in the first two registrations with declines of 18.9% for months of 2012. The Focus, racking up a Italy and 20.2% for France. 20.1% rise in February year on year to Year to date data shows a similar 19,681 and a 12.8% rise year to date to pattern, with registrations declining by 41,949. JATO indicates that much of the 0.1% in Spain, 0.2% in Germany and 0.8% gain was made in France despite the in the UK. Italy and France take the sharply declining market there. biggest hits with reductions of 17.8% and 20.5% respectively. Data from JATO dynamics shows that CARBON EMISSIONS Renault has suffered the largest fall in Data from JATO also suggests that average sales for the year to date, with sales down carbon dioxide emissions from new vehi27.8% compared with January and Februcles in Europe are continuing to fall. The ary 2011 to 132,878. Audi and Mercedes2011 average fell from 140.9g/km in Benz were the only two top-10 selling 2010 to 136.1g/km in 2011. JATO’s data brands to record an increase in sales for also suggests that almost 30% of new cars January and February, and Mercedes the sold averaged CO 2 emissions between only one to see sales rise in February, 101g/km and 120g/km. JATO also sugcompared with February 2011. JATO data gests that eight manufacturers have suggests that it was sales of the B and already achieved the 130g/km European C-Class models that were responsible for average target set for 2015. the increases for Mercedes, giving the Fiat has the lowest average CO 2 company an 8.6% rise in February and emissions among volume brands 8.5% year to date, with figures of 40,348 with 118.2g/km, SEAT recording the and 84,541 respectively. second lowest average of 125.2g/km. Outside the top-10, Lexus February EU Citroen records a similar average of 27 sales were up 76.2% to 1,540 and for 125.3g/km and Toyota slips down the year to date, up 114.5% to 4,660. Kia the ranking two places having recorded also posted big gains, up 30.8% to 22,134 a small reduction from 128.2g/km to for February year-on-year, consistent 126.5g/km. Alfa Romeo’s reduction from with the 30.7 year to date rise to 43,743. an average of 137.0g/km to 127.8g/km Land Rover was another winner with February yearTop 10 Models on-year up by 66.1% to 5,808 and year to date up Feb 2012 Feb 2011 % Change Make 54.5% to 13,779. JATO attributes these increases to Feb new model launches (Lexus CT200h, Kia Rio and Range 34,154 -4.2% Volkswagen Golf 32,724 Rover Evoque). Jeep also put in a strong performance 25,756 -5.8% Volkswagen Polo 24,254 with a February year–onyear rise of 58.9% to 2,079 and year to date increase of 16,392 +20.1% Ford Focus 19,681 57.3% to 4,206. JATO attributes the increases to the 24,245 -19.2% Ford Fiesta 19,588 launch of the new Grand Cherokee and revised Com27,499 -30.7% Renault Clio 19,048 pass, although the Compass two-star score against the 21,693 -12.5% Opel/Vauxhall Corsa 18,986 2012 criteria in recent EuroNCAP tests will not help its 16,549 +0.4% Volkswagen Passat 16,622 future fortunes. The VW Golf and Polo 21,419 -25.5% Peugeot 207 15,951 hold their places at the top of the European best-seller 21,692 -26.8% Opel/Vauxhall Astra 15,879 lists, the Golf establishing a decisive lead despite falling sales. Only the Ford Focus Fiat Panda 15,785 16,209 -2.6% and VW Passat have

gives the company fifth place. Germany’s premium manufacturers, Audi, BMW and Mercedes, all with high emitting models in their ranges, have not improved much. Audi’s 20th place in the ranking with average CO 2 emissions of 146.2g/km is the best of the three, BMW managing 149.3g/km and Mercedes 162.4g/km. The manufacturer registering the best improvement is Lexus. The CT200h has helped to pull average CO 2 emissions down from 166.7g/km to 120g/km. Looking at model segments, the average CO2 emissions for a B-segment model in 2011 were 120.9g/km and 130.2g/km for C-segment models. Nationally, cars in Portugal had the lowest average CO 2 emissions in 2011, with 122.7g/km and Switzerland the highest with 154.9g/km. Greece registered the largest year-on-year improvement, reducing car average CO2 emissions by 9.9g/km to 132.5g/km. Tax changes helped to reduce the Netherlands average from 135.6g/km to 126.2g/km. Italy made the least progress in the year from 132.7g/km to an average of 129.7g/km, but still comfortably below the European average of 136.1g/km.

Feb YtD

% Change

2012

2011

YtD

69,587

71,117

-2.2%

50,295

54,935

-8.4%

41,949

37,186

+12.8%

43,516

51,611

-15.7%

37,550

53,445

-29.7%

34,622

44,694

-22.5%

34,317

31,887

+7.6%

34,196

42,445

-19.4%

33,051

42,623

-22.5%

30,934

32,705

-5.4%

Source - JATO

IFW April 2012

in the desert...

Oiling the green wheels in the UAE Is reducing environmental impact incompatible with being a top ten oil producer? Alan Carpenter sees signs of change. In earlier columns I contrasted the elements of fleet cost between the UAE and in more mature fleet markets. Cost is of course not the only focus of a professional fleet operator. Two other themes are common – those of environmental impact reduction and safety. In this column I’m going to explore the local position on the first and in the future, I’ll explore the latter. Environmental impact reductions have been possibly the single greatest trend in the European fleet arena in recent years – helped by the close affinity between cost and emissions reductions. This trend and this connection are barely evident in the UAE today, and with fuel at around €0.36/litre and not rising as the price is fixed, this is no great surprise. But there are clear signs of change. Firstly, there is increasing leadership from Government to do the right thing – largely because it is the right thing to do for the country. Behind this leadership a number of major companies and government departments have started to focus on alternative fuels; the carbon footprint of their fleet and the emissions standards of their vehicles. Few will be able to justify the cost of more expensive vehicles to reduce fuel costs – with the obvious exception being taxi operators whose 36month/500,000km operating cycle means that even a modest reduction in fuel consumption will offset higher priced but more fuel efficient vehi-

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cles. Clearly for other fleets, whose operating cycle is a more typical 36 months/100,000km, the economics are very different. Despite this, some forward thinking government departments and companies are challenging suppliers to provide vehicles that consume less fuel – after all, these are common in Europe and the US – why can’t we have them in the UAE? This is helped by a deep dose of reality in the business world in the UAE in 2012. Current growth rates, approaching 4%, are doubtlessly the envy of the western world but with memories of the tough times of 2009/10 fresh in the mind, many businesses are more focused on costs, including fuel. This is evident in the demand from a number of major fleets that are increasingly interested in the few hybrids available locally. Increased use of CNG is also being promoted by government with its consequent positive impact on local air quality. This area though, is one that needs more focus – the emissions standards of many cars sold here still only reach Euro II. It is not clear if this is an area that government will address soon, but with such a clear focus on CO2 it seems possible that emissions standards will also be in focus before too long. Even without government leadership on this specific point some more advanced fleet operators are already considering emissions standards when they weigh up the relative merits of different fleet choices. With the market share of medium

and large SUVs still significant and with a V8 badge not an uncommon sight – both on a tailgate and on some fleet tender documents – it is clear that there is a long way to go. But when the government talks so clearly about the need for environmental improvements and when many major companies respond so quickly, change may be inevitable. Therefore it seems quite possible that this country, one of the world’s top 10 oil producers, is just starting on the road towards greener fleet management. And if the speed at which that trend took root in Europe is an indicator, then given the UAE’s ability to turn words into action – so clearly evident in the rapid development of the country – greener fleets may be here much quicker than many might expect.

Few will be able to justify the cost of more expensive vehicles to reduce fuel costs...

It will leave a lasting impression.

Think Again.

New Generation Hyundai i30. www.hyundai.com

Fuel consumption in MPG (l/100km) for i30 range: Urban 29.7-68.9 (9.5-4.1), Extra Urban 54.3-80.7 (5.2-3.5), Combined 41.5-76.3 (6.8-3.7), CO2 Emissions 159-97g/km.

Second impressions are even better.

Think Again.

New Generation Hyundai i30. www.hyundai.com

Fuel consumption in MPG (l/100km) for i30 range: Urban 29.7-68.9 (9.5-4.1), Extra Urban 54.3-80.7 (5.2-3.5), Combined 41.5-76.3 (6.8-3.7), CO2 Emissions 159-97g/km.