International Fleet World April 2015

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet April 2015

2020 vision

Stars of the show

Geneva 2015: what’s coming soon to a fleet near you

Short-term rental The benefits of simplified 24/7 online systems

Mercedes-Benz looks to its fleet future

plus...

Roland KrĂźger of Infiniti discusses its growth strategy internationalfleetworld.com

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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

April 2015

2020 vision

Stars of the show

contents

Geneva 2015: what’s coming soon to a fleet near you

Short-term rental The benefits of simplified 24/7 online systems

Mercedes-Benz looks to its fleet future

plus...

Roland Krüger of Infiniti discusses its growth strategy internationalfleetworld.com

Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk

16 Geneva showcases future fleet stars.

26 Interview: Roland Krüger of Infiniti.

40 The Mercedes-Benz range in profile.

47 Why the new Mazda2 has fleet appeal.

Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Fleet Consultant Ross Durkin ross@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk

04 Fleet Review John Kendall looks at manfacturer migration across Europe.

Sales Executives Darren Brett darren@fleetworldgroup.co.uk

06 Inside Knowledge Bart Vanham on the art of “range planning” for his Tesla.

Claire Warman claire@fleetworldgroup.co.uk

08 News The biggest stories from a month in the international fleet world.

Circulation Tracy Howell tracy@fleetworldgroup.co.uk

16 Motorshow Our pick of the key launches at the Geneva Motor Show.

Dawn Mitchell dawn@fleetworldgroup.co.uk

20 Spotlight An in-depth look at the forthcoming new Renault Kadjar.

Head of Production Luke Wikner luke@fleetworldgroup.co.uk

22 Feature 24/7 access to rentals with Hertz’s innovative online offering.

Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk

26 Interview Roland Krüger on how Infiniti is targeting European growth.

28 Feature Launch of TomTom’s OptiDrive 360 and the ecoDriver Project.

32 RVs Residual value performance in Europe during Q1 2015.

34 Fleet Focus The UK’s healthy new car market and improving EV sales.

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 internationalfleetworld.com

37 IAM Report Advice for business drivers taking to the road in Canada.

38 International Fleet Academy The business case for risk management.

40 Profile Mercedes-Benz’s 2020 growth strategy and commitment to R&D. 46 Launch Report BMW 2 Series / Mazda2 / Suzuki Vitara / Citroën C4.

50 Fleet in Figures Breaking down the latest global vehicle sales by region.

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fleet review

This month, editor John Kendall looks at manufacturer emigration and a glimpse of the future from Infiniti and Geneva...

Chrysler to leave the UK...

Infiniti’s designer edge

Two manufacturers have recently announced that they will be pulling out of specific markets. Chrysler will withdraw from the UK and Opel from Russia. The Chrysler move is not a great surprise. It’s less than three years since the brand was re-launched in the UK with a model range incorporating Lancia models.

Although the company has enjoyed some success with Voyager and 300C models, American brands have niche appeal in most European countries. The Fiat Chrysler Group can offer a resurgent Jeep with a receptive market in Europe plus a buoyant Fiat. Alfa Romeo has brand appeal although sales are still dwindling.

There is some logic then in focussing the company’s UK activities. The only problem with pulling out of any vehicle market is that it makes re-entry that much more difficult as customers are wary of buying into a brand that has left the market before.

Brand building, particularly in the premium sector is not easy. Infiniti stayed away from Europe for many years after it launched in the US in 1989. When it appeared in 2008 with large capacity petrol engines and no diesels, it didn’t look like a formula that was going to succeed. Infiniti clearly understands that and when the new products start to arrive in Europe next year, they will include the Q30 and QX30 crossover aimed at the most popular segment in Europe and one of the fastest growing sectors respectively. I spoke to design chief Alfonso Albaisa at Geneva. He may be from Florida, now living in California, but he has designers around the world all constantly connected and he understands what is needed to succeed in Europe. A new boss in the shape of Roland Krüger, formerly with BMW and himself with a design background will no doubt help too.

The recipe looks right for both retail and fleet success, but it will take time.

... while Opel quits Russia

Connectivity in Geneva

Opel’s decision to exit the Russian market looks similarly logical. When GM decided to pull Chevrolet from Europe over a year ago, it made sense to stay with the GM brands that had strong local roots, e.g. Opel and Vauxhall.

Chevrolet and Opel remained in Russia at that stage, but it is Chevrolet that was the stronger brand there. Even so it’s being slimmed down to mainly US-sourced products and local production at St Petersburg is closing. Now with the added pressure of economic sanctions likely to have a severe impact on the market, LMC Automotive reckons that the Russian light vehicle market could decline by 33% this year. That’s not a good business prospect for any company so it looks like a case of cutting your losses.

If there was a theme at the Geneva Show in early March, I would say it was connectivity.

GM launched its OnStar package in Europe.

It has been available in North America for some time, but the system will be purpose designed for European customers. I also spoke to Jan Maarten de Vries, vice president automotive, TomTom. They announced several new deals including with VW, Fiat Chrysler, Hyundai and Kia. Manufacturers are preparing the ground for a better flow of data to and from vehicles, what is needed is a compatible cross-border system to incorporate vehicles into an intelligent traffic system.

04 / internationalfleetworld.com

visit internationalfleetworld.com

New CORSAvAN

Room iN the back, vRoom iN the fRoNt. opel.com fuel consumption combined 6.1–3.2 l/100 km; co2 emissions combined 142–84 g/km (according to R (ec) No. 715/2007 and R (ec) No. 692/2008).

inside knowledge

To EV or not to EV? Part 2 How can you calculate the cost of owning a Tesla Model S? www.TCOPlus.com partner Bart Vanham explains how he did it.

“

Range Anxiety” turned into “Range planning” after making some trips where range seemed challenging. I felt prepared to plan my trips better in return for fun driving and a good feeling doing something constructive, sorry less destructive, to the environment.

I loved the Tesla Model S and its range would fit most of my journeys. Range: OK! So next question?

Was I willing to spend the price of small studio – as my parents would say – on a car?

But that’s just the purchase price. What other costs would be involved and how would that compare with other alternatives? At that time we were doing our utmost to convince an OEM that was about to launch a new electric vehicle to build a TCO tool showing the real total cost of use of an electric vehicle compared to any alternative. After having developed a calculation model to do so, it was striking what the real impact of the difference in fuel cost was after 30,000km and how much company car related taxes “subsidise” purchase price differences, not only in Belgium, but also in the UK, Netherlands, etc. Furthermore, the Benefit-inKind, a valuation of the private use of the company car, was also considerably lower.

We pay taxes on almost everything in Belgium (and in return we get wonderful social security programmes). The car is treated like a lemon, squeezed every time the government needs to fill another gap. The electric car is (still) the exception to this rule and either attracts no or minimal taxes. Is that enough to compensate for higher depreciation and finance cost?

Higher compared with what? I always drove BMWs (except for once, a super Mercedes-Benz CLK) because I liked the dynamics and solid feeling of quality. I never had a bad experience. After a few years in a

06 / internationalfleetworld.com

downsized CO2-friendly BMW 318d, I felt I should do myself a favour and look for a BMW 520d (with relatively low CO2 emissions). The lease price includes the registration tax (based on CO2 emissions in Flanders) and annual road tax. Taxes not included in the lease price but to be included in the total cost (TCO) calculation for company cars are social security contributions and the tax effect of non-deductible expenses, both depending, in Belgium, on the CO2 emissions of the car.

Not to sound too much like James May from BBC Top Gear and to spare you the technical details, I needed to add around €200 per month on top of the lease price in taxes for the BMW. Calculating the Tesla Model S, with 85kW battery (the Performance model, equating to the “turbo” of the Model S range, which did not feel easy to explain taking into account another business I engaged myself in; improving driving behaviour of company car drivers), it was to my Tesla as a company happy surprise that the lower fuel car? It works for Bart Vanham... cost (about 35-45% of the diesel ICE, depending on the fuel price taken into account) and the lower tax cost (a cost effect of approximately -€50) would considerably compensate for the higher depreciation and interest cost of the Tesla compared with the Beemer.

Adding the effect of a lower Benefit-in-Kind for myself made the equation balance almost.

So, would I spend a few extra Euros per month to drive a wonderful car despite the range anxiety, sorry, planning? YES!!! Fun, economics and environment in one hit, ABSOLUTELY. It took a few months before I could be greeted by the wonderful smell of a new car. Ever since June 2014 I have been driving my “elentriken” (slang language by my friends) car and I LOVE IT….

NEXT TIME... Bart will describe his experiences as a daily user.

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manufacturer news

GM to pull Opel out of Russia

G

M has announced plans to change its business model in Russia, including winding down its Opel brand, minimising the Chevrolet brand and closing production at its plant in St Petersburg.

In a statement, the carmaker said it would instead put the focus on the premium segment of the Russian market with Cadillac and US‐built Chevrolet products such as the Corvette, Camaro and Tahoe.

“This change in our business model in Russia is part of our global strategy to ensure long‐term sustainability in markets where we operate,” said GM president Dan Ammann. “This decision avoids significant investment into a market that has very challenging long‐term prospects.”

The announcement follows latest Russian new car sales figures for February that show the market declined 37.9%.

Autumn launch for BMW X5 PHEV

MW has announced that it is to launch a plug‐in hybrid B X5 in Europe this autumn, featuring a high perform‐ ance drivetrain with CO emissions of 77g/km.

2

The X5 xDrive40e combines a 245hp four‐cylinder turbocharged petrol engine with a 113hp electric motor, both of which are able to drive all four wheels through an eight‐speed gearbox.

Combined power output is 313hp, enabling the car to reach 100kph in 6.8 seconds from rest, and the 9.0kWh battery offers a range of 31km, to a full charge. This takes just under four hours from a domestic socket, or two hours and 45 minutes from a 3.5kW wallbox.

As a result, BMW’s first plug‐in hybrid outside the i sub‐ brand returns 3.4‐3.3l/100km on the NEDC plug‐in hybrid test cycle and emits 77‐78g/km of CO2 – similar figures to the Porsche Cayenne S e‐Hybrid.

Ford Telematics adds new services for global commercial vehicle customers ord Telematics has launched a new global version of its fleet management platform. fPowered

by Telogis, the system is a next‐generation cloud‐based fleet management solution that helps commer‐ cial customers better manage vehicles and improve their customer service.

Previously offered in the US and Canada, the new version is now available globally and adds new features and analytics.

“We want to have one solution customers can rely on no matter where in the world they do business and where they are buying Ford vehicles,” said Raj Nair, Ford chief technical officer and group vice president, global product develop‐ ment. “They will be able to walk into a dealer in North America, Germany, Australia or anywhere and ask for one brand, one product.”

08 / internationalfleetworld.com

All-new Kia Optima debuts in New York ia has unveiled its second‐generation Optima saloon at the New York Auto Show, ahead of a K launch later this year.

Similarities between the first images of this new car and the Sportspace concept shown at Geneva last month suggest that it could be offered as an estate as well as a saloon for the first time, which would broaden its appeal in Europe.

Expect a much wider range of engines with the new model, including petrol, diesel and possibly petrol‐electric hybrid in right‐hand drive for the first time. Plug‐in hybrid technology, showcased in the new Hyundai Tucson, is also possible.

The European range could also feature Kia’s T‐Hybrid system – Kia said last year that this could bring CO2 emissions under 100g/km.

VW Commercial Vehicles reveals T6 Transporter image olkswagen Commercial Vehicles has V revealed a sketch of the sixth‐generation Transporter ahead of its official world premiere.

The new model is debuted 65 years after the original, which went into production in 1950.

The T6 will be built in Hanover and will be based on the 2014 Tristar concept shown at the IAA Commercial Vehicles Show.

For the latest news, visit internationalfleetworld.com

Class-leading 104g/km for new Jaguar XF aguar’s all‐new XF executive saloon will launch this autumn, J featuring an aluminium‐rich body and new diesel engines with fuel consumption from 4.0l/100km.

Shorter and lower than the outgoing XF, its longer wheelbase is claimed to add segment‐leading rear legroom. Its structure is 75% aluminium, 190kg lighter than its predecessor, yet also 28% stiffer, making the XF the segment's lightest car by 80kg.

Engines include 163hp and 190hp 2.0‐litre Ingenium four‐cylin‐ der diesels, the former offered with the XF’s first six‐speed manual gearbox as well as the eight‐speed automatic. It makes this the segment’s most fuel‐efficient non‐hybrid, consuming 4.0l/100km and emitting 104g/km CO2.

fleetweet a few soundbites from a month in fleet

@Opel Official Twitter account for Opel

Did you know? More than half of consumers say that connectivity will be a consideration in their next new car purchase. #OpelOnStar

@mattyprior Matt Prior, motoring journalist, Auto Car

VW Passat wins Car of the Year.

It’s not very interesting but it is very good, so I put it first on my list; by a bit over (2nd) C4 Cactus.

@JonQuirk Jon Quirk, editor-in-chief, @Auto _Trader_UK

No more Citroën badges on DS5 as ‘brand DS’ takes shape.

With such heritage, it’ll be interesting to see what's next.

@PFPR_Comms Offical Twitter account for PFPR Communications, automotive PR and events

Evoque Convertible due next year and Rover will launch a convertible Range Rover Evoque in LSet2016, following positive feedback for the 2012 concept. to be the only soft‐top in its class, it’s likely that the produc‐ tion version will be almost identical to the concept (pictured) but gaining the updated styling and engines introduced later this year.

Gerry McGovern, design director and chief creative officer at Jaguar Land Rover, said it would have the off‐roading capability expected from a Land Rover product.

The Range Rover Evoque is the brand’s fastest‐ever selling model, with 400,000 sold since it launched in 2011. Of those, 80% are new customers to Land Rover, and 60% are buying their first SUV, McGovern added.

There's a beautiful silk – yes, silk – interior in the new @rollsroycecars Phantom Serenity. Remarkable. #Geneva2015

@lebeaucarnews Phil LeBeau, automotive correspondent, CNBC

VW Group raising annual production in China from current pace of 3.7 million vehicles to 5.9 million vehicles by 2019.

@IAmSimonHarris Simon Harris, automotive journalist

Can't help but think if Land Rover did a limited run of 1,000 5.0 V8 supercharged Defenders in its final year, all would sell immediately.

internationalfleetworld.com / 09

The most important meeting of 2015.

The new CLA Shooting Brake.

A Daimler Brand

Space and design meets less emission. Take a decision for comfort and an intelligent energy management. www.mercedes-benz.com/fleet

Provider: Daimler AG, MercedesstraĂ&#x;e 137, 70327 Stuttgart, Germany

environmental news UK government readies 140-strong plug-in vehicle fleet

T

he UK government is to deploy 140 plug‐in vehicles on its fleet, spanning 15 departments and agencies, as part of a £500m (€700m) funding package for Ultra‐ Low Emission Vehicles (ULEVs) announced last year.

With the aim of demonstrating the technology to private companies and the rest of the public sector, the fleet will include vehicles to be used by the Foreign and Commonwealth Office, Ministry of Defence and the Home Office. The Government Car Service, which provides transportation for ministers, will also adopt four ULEVs. It forms the first wave of a scheme which will allow every central government department to review where they can use plug‐in vehicles on their fleets, which was announced last July.

Transport Minister Baroness Kramer said: “These cars will save taxpayers money on running costs and will bring low emissions benefits to our fleet. Today’s announcement proves that Britain is leading the electric charge while

supporting the growth of this important industry.

“The £5m (€7m) investment will also fund take‐up by the wider public sector – including councils, police forces and the NHS – of plug‐in vehicles and pay for charge‐points to be installed to allow the vehicles to be charged at work.”

Drawn from the same €700m funding, £35m (€49m) will be provided to several UK cities with the hope of establishing centres of excellence for the technology across the country. Between two and four will be selected this autumn, from a shortlist of 12 announced during March. Participants are spread as far apart as London and Dundee, Scotland.

Speaking at the launch, Business Minister, Matthew Hancock, commented: “The government is working hand in hand with business to increase the uptake of electric vehicles across the country. This investment will improve local air quality, reduce carbon emissions, and create growth opportunities for firms who develop and manufacture this kind of technology.”

Private investment vital for charging point rollout, says Chargemaster

P

rivate sector investment will be invaluable if the UK’s charging point network is to grow in line with electric vehicle sales predictions, according to Chargemaster CEO David Martell.

Speaking at the company’s round table event in London, Martell said the predicted 5% take‐up for EVs by the end of the decade was looking modest, but added that continued growth could be stifled by an overcrowded charging network.

There are around 8,000 public charging points in the UK, according to Zap‐Map. Martell believes ongoing roll‐out will need to offer destination and en‐route charging points, and financing of installation and maintenance can’t be left to govern‐ ment, meaning the private sector will need to step in and in turn

12 / internationalfleetworld.com

that there will need to be a business case for them to do so.

This could include pay‐as‐you‐go charging, monthly membership schemes similar to services like Netflix, or providing charging while using facilities – such as at a hotel, supermarket or restaurant – like the widespread provision of WiFi. But these could be challenged by free‐ to‐use public sector networks, which would undermine the business case for private investment.

“If you open a pub selling beer, and someone opens one across the road selling for free, then it screws your market,” Martell explained. “In the next five years we need three times the infrastructure to support the growth of the EV market, but that won’t happen if there’s no business model.”

For the latest EV news, visit evfleetworld.com

Renault re-tunes the ZOE for urban drivers R

enault will add a second model to the ZOE range later this year, featuring a new drivetrain offering a best‐in‐class range of 240km.

The ZOE R240 is tailored for those who don’t need rapid charging ability, and will be sold alongside the existing model, recognising that there are two distinct user groups for its electric supermini. Its drive‐ train is air cooled and packaged differently, reducing weight and overall size, while improved electronic management means the motor produces the same power but consumes less energy.

Charging is optimised for urban drivers. The revised Chameleon charging system takes 10% less time to charge when connected to low output power supplies such as a domestic or workplace wallbox, improving flexibility when using inner‐city infrastructure. However, the ZOE R240 does not support rapid charging at 43kW like the version offered to date. Though it can still connect to the rapid charg‐ ing units, it takes a maximum power output of 22kW and reaches 80% capacity in 60 minutes ‐ twice as long as its counterpart.

Goodyear concept tyre can charge EV batteries

G

oodyear has revealed a concept tyre which features a structure capable of regenerating energy to charge an electric or hybrid vehicle battery.

The BH‐O3, shown at the Geneva Motor Show, features an ultra‐black tread which can absorb energy heat and sunlight, while the thermoelectric material beneath transforms it into electricity which can be channelled into the battery.

Its sidewalls are self‐supporting, which means they can be driven on with no pressure in the tyre, and the structure contains a piezoelectric material which transforms the structural deformation of the rubber while the car is rolling into electrical energy. The BH‐ O3 is also designed to minimise rolling resistance, further increasing the range and efficiency of whatever it is fitted to.

Joe Zekoski, Goodyear's senior vice president and chief technical officer, said: “We envision a future in which our products become more integrated with the vehicle and the consumer, more environmentally friendly and more versatile.”

EV

77g/km

in numbers

SOURCE: BMW

CO2 emissions for the BMW X5 xDrive40e plug-in hybrid, which launches this autumn.

in brief Nissan and Endesa to co-develop V2G technology Nissan and Spanish utility company Endesa have partnered on a vehicle‐to‐ grid charging system, aimed at reducing ownership costs and stabilising the electricity supply. The companies will co‐develop a business model for drivers to sell energy back to the grid, as well as the equipment required to do so.

Price cut for V60 Plug-in Hybrid Volvo has added an entry‐level drive‐ train to the V60 Plug‐in Hybrid, aimed at broadening its appeal. The V60 D5 Twin Engine uses a 163hp 2.4‐litre turbodiesel to power the front wheels, detuned from 215hp in the version offered to date, and carries a 10% price reduction in its launch market, Sweden.

Electric vehicle residual values stabilising, says Glass's Electric vehicles are closing the gap on residual values compared to their diesel equivalents in the UK, according to Glass’s.

According to head of valuations, Rupert Pontin, 2020’s EU‐wide target of 95g/km average CO2 emissions means the technol‐ ogy’s current 2% market share will have to increase, in turn stabilising values as consumers get used to the technology.

EVtweet of the month @Sjmoody37 This month @MitsubishiUK Outlander PHEV will become best selling EV ever in UK. Only on sale for 8 months.

Overtakes 4yo LEAF. Astounding.

100

Planned Toyota Auris Hybrid rental cars on Avis’s London area fleet.

Source: Toyota GB

internationalfleetworld.com / 13

business news

Consortium close to LeasePlan deal s LeasePlan confirms that its shareholders are considering divest‐ A ment, reports suggest that a consortium led by private‐equity firm TDR Capital LLP is close to buying the firm for more than €3bn.

As reported by the Wall Street Journal, a sale by Volkswagen AG and private bank Friedrich von Metzler could be announced soon.

The interested parties are said to include TDR and several pension funds, including Dutch PGGM. The news came just days after LeasePlan Corporation announced that its 100% shareholder Global Mobility Holding BV has entered into discus‐ sions regarding the potential divestment of LeasePlan Corporation NV.

City investors in ‘advanced discussions’ in €1.7bn deal for BCA

ity investors are said to be in advanced talks to buy BCA for over cAccording €1bn, according to reports. to various publications, the £1.2bn (€1.7bn) takeover

would see the vehicle auction giant being bought by a listed vehicle called Haversham Holdings, which has backing from a funding group comprising including Aviva Investors, Artemis, Invesco and Schroders.

BCA is owned by Clayton Dubilier & Rice, the US private equity company. If the deal proceeds, it will be the second time in six months that CD&R has looked at offloading BCA, following last autumn when it stopped a flotation of BCA, citing volatile global equity markets.

No official statement has been released.

in brief Shell opens LNG truck refuelling station Shell has officially opened its first Liquefied Natural Gas (LNG) lanes in Europe, at a truck refuelling station in Rotterdam Waalhaven, the Netherlands.

The new station has a capacity of 70,000 litres of LNG, which is enough to fuel around 170 trucks per day. As customer demand grows, Shell said it plans to open additional LNG sites in the Netherlands.

European new car market up 7.1% YtD European new car sales grew 7.8% compared to February 2014, accord‐ ing to JATO Dynamics, helping to push the market 7.1% ahead of 2014 year to date. In total, 18 of the 29 markets covered recorded growth compared to February 2014.

ARI announces new president

ETSC puts case for new safety technology ew safety technologies could play a major role in bringing the numbers killed on European motorways down, according to the N European Transport Safety Council (ETSC).

The organisation’s new report on developments in motorway safety calls on the EU to make the installation of intelligent seat belt reminder systems (SBR) mandatory for all passenger seats in new cars as well as the installation of intelligent speed assistance and lane departure warning systems.

Fleetmatics acquires Ornicar

leetmatics Group PLC, which provides GPS fleet & vehicle tracking F software, has acquired Ornicar SAS, a French provider of fleet management solutions.

Based in Grenoble, Ornicar will add approximately 15,000 vehicles under subscription to Fleetmatics’ existing installed base. Terms of the transaction have not been disclosed.

“France stands out as a logical next step for investment as we further expand into mainland Europe and execute our global growth strategy,” said Jim Travers, Fleetmatics CEO and chairman of the Board. “With the acquisition of Ornicar and the French market expertise of the Ornicar team, we are excited to accelerate our pres‐ ence and brand in a country that we believe offers us one of the largest market opportunities in Europe.”

14 / internationalfleetworld.com

Global fleet management firm ARI is to be headed up by a new president as part of a series of senior manage‐ ment changes announced by parent company Holman Automotive Group.

Under the changes, Holman Automo‐ tive has appointed Mindy Holman as chairman. In addition, former ARI pres‐ ident Carl A Ortell is to assume the role of CEO and Brian R Bates will become COO and CFO of Holman Automotive.

Meanwhile Chris Conroy will take on the role of executive vice presi‐ dent, Holman and president of ARI.

Addison Lee to launch in NYC London minicab giant Addison Lee is launching operations in New York City, saying that the move forms part of its international growth plan.

The launch follows the continued investment from Addison Lee’s private equity owner, Carlyle Group and will give the company access to a fleet that exceeds 4,000 vehicles.

MOTOR SHOW Geneva

Geneva greats Around 115 new cars made their debut at the first European show of the year at Geneva in March. John Kendall reports.

Bentley EXP 10 Speed 6 Bentley unveiled the EXP 10 Speed 6 concept at Geneva, a concept two-seater coupe to gauge public reaction to a potential future model. No details of the engine were given, but Bentley hinted that it would be a hybrid.

BMW 2 Series Gran Tourer Following the lead set by the 2-Series Active Tourer, the Gran Tourer is 224mm longer to accommodate seven people, using two optional seats that fold flat into the boot floor. Turbocharged three and four-cylinder engines offer between 116hp and 192hp with emissions between 104g/km and 149g/km. The 220d xDrive version will offer a four-wheel drive option from launch.

DS 5 DS 5 became the first model to carry the DS name marking the 60th anniversary of the launch of the CitroĂŤn DS19 at the 1955 Paris Motor Show. DS 5 gains a new front end and a number of other revisions. These include LED headlamps, a new colour touchscreen and a range of new engines, including the new BlueHDI Euro-6 diesels. Power ranges from 120hp to 210hp. Diesel fuel consumption ranges from 3.8l/100km to 4.3l/100km.

16 / internationalfleetworld.com

Hyundai Tucson Hyundai unveiled the new Tucson ahead of the Geneva Show, where it was given its public debut.

The C-segment SUV is based on a new platform and the outgoing model accounted for 22% of European sales in 2014. LED headlamps are standard equipment and there is 513 litres of boot space. Power options include two petrol and three diesel engines.

Infiniti QX30 Concept The QX30 concept is based on the Q30 concept seen at Geneva in 2013, designed to preview a compact premium SUV. It may only be a concept but Infiniti says it is the basis of a production model due in 2016, built at the Nissan plant in the UK. It will follow the launch of the Q60 and Q30 over the coming year.

Kia Sportspace concept Kia's stylish Optima was never offered as a Wagon, which has limited its appeal in Europe. The Sportspace concept, a performance wagon designed at the carmaker's Frankfurt studio, hints that this could be remedied in the next generation.

Lexus LF-SA concept Designed at the Lexus ED2 design studio at Nice in France, the LF-SA was designed to help celebrate 25 years since Lexus launched the LS400. The car is an A-segment crossover with 2+2 seating, similar in size to a Toyota Aygo. Inside, the driver’s seat is fixed, with an adjustable steering wheel and pedals. A sliding passenger seat gives access to the back seats.

Mazda CX-3 The CX-3 made its European debut at Geneva. Mazda’s compact crossover will be available with both front and four-wheel-drive, as well as manual or automatic transmissions. Mazda will offer a comprehensive range and a choice of SKYACTIV petrol and diesel engines. Petrol models will be offered with 120hp or 150hp versions of Mazda’s 2.0-litre engine with CO 2 emissions between 136g/km and 150g/km. For the 1.5-litre 105hp diesel, CO2 emissions span 105g/km to 136g/km.

internationalfleetworld.com / 17

MOTOR SHOW Geneva

Nissan Sway concept Mitsubishi L200 Mitsubishi launched the fifth generation of its L200 pickup truck at Geneva, featuring a new Euro-6 compliant 2.4-litre diesel engine with CO2 emissions reduced to a claimed 169g/km. Two power outputs will be available, either 152hp or 178hp. Initially the L200 will be available as a double-cab pickup. A club-cab model will follow.

Nissan’s Sway concept was designed to show what a future generation of compact European hatchback models might look like using Nissan’s new design language.

Features include a full-length glass roof, no B-pillar and rear hinged rear doors.

Opel KARL The KARL and the Vauxhall variant, the Viva made their debut at Geneva. An A-segment compact five-door hatchback, the model will replace the Agila, produced in a joint venture with Suzuki. Only one power option will be offered, a three-cylinder 1.0-litre petrol engine developing 75hp, offering CO2 emissions of 99g/km.

Peugeot 208 facelift It’s Peugeot’s best-selling car and three years after its launch, the 208 gained a facelift at Geneva, bringing new paint colours, additional equipment and Euro-6 engines.

Peugeot claims the world’s lowest fuel consumption with emissions of 79g/km. All diesels emit less than 95g/km CO2. Peugeot has introduced Active City Brake and a reversing camera.

Porsche Cayman GT4 One of two premieres at the Geneva Show for Porsche, the Cayman GT4 is the first Porsche GT to be based on the two-seat mid-engined car. Power comes from a 385hp version of Porsche’s flat-six engine derived from the 911 Carrera S. The car features a new front end, 30mm lower suspension and larger brakes. It’s just as likely to be seen on the race track as the road.

18 / internationalfleetworld.com

Renault Kadjar Kadjar got its public debut at Geneva, where Renault released full details of the C-segment crossover. There were no surprises on the power front, with Renault offering the 110hp 1.5 dCi and 130hp 1.6 dCi diesels and the 130hp 1.2 TCe turbo petrol engine. CO2 emissions as low as 99g/km are promised.

Skoda Superb The latest Superb features a host of new equipment including Dynamic Chassis Control giving the driver a choice of drive modes. New air-conditioning with three-zone climate control, a sliding panoramic sunroof and wireless heated windscreen are among the list of other equipment. Skoda says reduced weight and better aerodynamics have helped to cut fuel consumption by up to 30%.

SEAT 20V20 SEAT is the only Volkswagen Group volume brand without an SUV in its line-up – something it will remedy next year. The 20V20 concept, on a Passat-sized wheelbase, can accommodate plug-in drivetrains as well as petrol and diesel engines and suggests a large SUV is coming soon.

Suzuki concepts Suzuki’s iK-2 was one of two concepts from the company at Geneva sharing the stand with the iM-4 compact SUV. A production version of the iK-2 compact hatchback is due to go on sale in Europe early in 2016. The car will be built on a new platform, said to make the car lower and stiffer. The concept was equipped with a new 1.0-litre three-cylinder direct injection turbocharged petrol engine.

Toyota Avensis New exterior and interior design are among the changes for the Avensis. The car gains LED lighting as part of the exterior changes and a new interior, with new materials and colours. Euro-6 engines are part of the package including two new diesels – a 110hp 1.6-litre with CO2 emissions of 108g/km and 141hp 2.0-litre with CO 2 emissions of 119g/km. More efficient 1.6-litre, 1.8-litre and 2.0-litre petrol engines are also launched.

Volkswagen Sport Coupe concept Volkswagen’s Sport Coupe Concept GTE was joined by the new Touran, Passat Alltrack and revised Sharan at Geneva. The four-seat Concept featured hybrid drive with a V6 TSI engine and two electric motors with a combined output of 380hp. Combined cycle consumption is a claimed 2.0l/100km. Volkswagen claims good headroom despite the coupe roofline and 480 litres of boot space.

internationalfleetworld.com / 19

SPOTLIGHT Renault Kadjar

A happy alliance Renault’s first C-segment crossover model is due to be launched this autumn, after making its debut at the Geneva Show in March. John Kendall explains all.

Good credentials Built on the Renault-Nissan Alliance CMF (Common Module Family) C/D platform. This is currently used for the latest generation Nissan Qashqai and X-Trail, as well as the Pulsar, launched last year, and the new Espace.

The Kadjar will be assembled at the Renault plant in Palencia, Spain for the European market.

Kadjar will be the first Renault to be manufactured in China, under a joint venture with Dongfeng. The plant is currently under construction and production is scheduled to begin in early 2016. Initial production capacity will be some 150,000 vehicles per year.

20 / internationalfleetworld.com

FLEET FACT Renault announced emissions starting at 99g/km for New Kadjar at Geneva.

Technology A seven-inch touchscreen TFT display will feature across the Kadjar range and it will be available with Renault’s R-Link 2 multimedia system. R-Link 2 features will include voice recognition to control the navigation, phone, apps and radio.

Available apps are designed to help with news, travel and social media among others. The list of drive assist technology includes emergency brake assist, lane departure warning, roadsign recognition with speed limit alerts and a reversing camera. Kadjar will be equipped with LED headlamps for both dipped and main beams, producing light that is close to the colour of daylight with 20% more power than halogen lamps, while using less power.

What we think...

Engines The Kadjar shares its diesel engines with the Nissan Qashqai, and it’s the familiar 1.5-litre dCi 110 that’s likely to account for the bulk of fleet orders. Fuel economy of 3.2l/100km and 99g/km is identical to Nissan’s headline figures, putting the two cars at the head of the segment.

Renault is also claiming similar fuel economy for models fitted with its dual-clutch transmission.

Diesel options are completed by the 1.6-litre dCi 130, optionally available with four-wheel drive, and the 1.2litre TCe 130 engine will be the only petrol version.

Renault is late to the Crossover party, but the runaway success of Captur across Europe means the company is hoping to repeat the experience with Kadjar. Based on the same platform as Qashqai, Kadjar can tap into existing crossover know-how. But there’s plenty of competition, check Tucson, Renegade and Vitara amongst the newcomers. AG

internationalfleetworld.com / 21

FEATURE Short-Term Rental

Hertz advances

online

Hertz has simplified its 24/7 online booking system for cars and vans. Dan Gilkes reports.

22 / internationalfleetworld.com

“With the new PIN touchpad, Hertz has been able to cut the key fob out of the equation, so there is no waiting for this to arrive or for a branch to be open before being able to drive away.”

R

ental giant Hertz is updating its 24/7 van rental service across Europe, by equipping all vehicles with a windscreen‐mounted PIN code access pad. The 24/7 van rental service locates Hertz LCVs at potential spot hire sites, provided by partner compa‐ nies such as at Brico and Plan It in Belgium, Castorama in France, Praxis stores in the Netherlands and IKEA, Costco, B&Q and Homebase in the UK. The idea is that as customers return to their cars, realising that they have bought more items than they can carry home in their cars, then can find instant access to short‐term van rental. The customer simply creates a profile on the Hertz 24/7 website, using a smartphone or tablet, uploading driving licence infor‐ mation and credit card details.

Until recently, the customer would then have been sent an RFID fob that provides access to more than 50,000 Hertz 24/7 cars and vans worldwide. The fob could also be picked up at a local Hertz branch or in the partner’s store. With that done, they simply contacted Hertz 24/7 online to locate and book a vehicle. On arrival at the van, at the appointed hour, the customer had to hold the RFID fob up to a sensor on the wind‐ screen and this would unlock the van.

However, with the new PIN touchpad, Hertz has been able to cut the key fob out of the equation, so there is no waiting for this to arrive or for a branch to be open before being able to drive away. Indeed the partner store doesn’t even need to be open for the customer to find and access a van.

The customer still books the vehicle in the normal way online, but is then sent a six‐figure PIN code with a rental start time and the vehicle’s location, direct to their phone. At the agreed hour they simply type in the PIN number on the windscreen and the vehicle’s doors unlock. The van’s keys are tethered inside the cab, allowing the customer to start the vehicle and drive away.

Before they do that, the customer is required to walk around and check the van for any signs of damage from the previous user. This is marked on an inspection sheet that remains in the van and Hertz checks directly with the customer that the vehicle is good to go through a Bluetooth phone connection to the cab. This also provides instant communication with the customer in the event of an accident, or if 24‐hour breakdown cover is required.

Once the customer is satisfied that the vehicle is in good condition, he or she is free to drive away. Each van comes with a fuel card, so customers can fill up as required, with fuel and insurance included in the hourly or daily rental rate.

When they have finished with the vehicle it is simply returned to the rental location and the key fob or PIN number is entered again to lock the van. An itemised bill is sent directly to the customer’s smartphone account.

At present the 24/7 van service is being offered in Belgium, France, Germany, Italy, the Netherlands, Spain and the UK. Outside Europe, it is also available in Australia and the USA.

UK focus “We run the 24/7 service through partners like Costco, Homebase, IKEA and B&Q in the UK,” says Hertz UK general manager Neil Cunningham.

“Further expansion means finding relevant partners with the footfall and the need for the vans. We’re pretty selective about our partners, but our ambition is to get a van within 10 miles of 90% of the population.”

Despite steady growth, the 24/7 service remains a relatively small part of the overall Hertz UK offering, with standard flexible vehicle rental taking the lions’ share. To boost this growth in the light commercial vehi‐ cle market Hertz UK has recently opened an additional two van supersites, in West Thurrock, Essex and Glas‐ gow in Scotland. Vans can be hired through most of the firm’s regular car sites, but the van supersites provide additional services to meet the needs of business customers.

“Our van supersites are where we corral van expert‐ ise as well as our fleet of vans. We are able to offer customers mobile servicing and fitting out for instance.

internationalfleetworld.com / 23

→

FEATURE Short-Term Rental

Hertz advances online

will do spot rental, but it’s essentially about → They longer term flexirent,” says Mr Cunningham.

“Our flexible van rental service helps customers focus on growing their businesses efficiently by removing the financial commitment of purchasing a fleet and by saving them the administrative headache of insurance, breakdown cover, maintenance, servic‐ ing and road tax.”

Cunningham is the first to admit that Hertz has some way to go in the UK van rental business, with around 6,000 LCVs on the road. However the firm is progressing well and he sees a big opportunity for further expansion in 2015.

“Last year we grew by 26% and this year we will see double digit growth,” says Mr Cunningham.

“We have a relatively small percentage of the UK hire market, so there is potential for good growth.

As the UK comes out of recession the growth we are seeing is really interesting and people are less will‐ ing to sign up to long contracts. People really like the flexibility of flexirent.

“The customer can return the vehicles at any time without penalties. Some people see rental as a supplement to a leasing fleet, there’s a trade‐off between lease and hire.”

The cars are the stars The Hertz 24/7 rental service is not purely reserved for vans however; the company also offers a wide range of low emission and even electric cars to a diverse group of customers. In the UK for instance, Hertz has partnered with a number of universities, includ‐ ing Oxford Brookes University and Imperial College London.

At Brookes the deal provides 3,000 staff and 18,500 students with the opportunity to rent low emission and electric cars by the hour.

On the Imperial campus a further 3,000 staff along with 13,500 students have access to Ford Fiestas, Kia Rios, VW Golfs and electric Mitsubishi i‐MiEV cars for occasional rental.

Hertz has similar deals with Reading University and Brunel Univer‐ sity near Heathrow Airport, while on a wider scale the company part‐ ners with more than 50 universities in the United States.

24 / internationalfleetworld.com

“The design of our cars is outstanding, this is a differentiator in itself. We need to make sure that on the dealer side we offer superb service.�

26 / internationalflfeetworld.com

INTERVIEW Roland Krüger, INFINITI

Shaping the future Infiniti has made slow progress in Europe, but are things about to change, asks John Kendall?

I

nfiniti was launched in 1989 in North America as Nissan’s premium brand at around the same time that Toyota launched Lexus as its premium brand. Yet while Lexus brought its model range to Europe 25 years ago, Infiniti held back, perhaps because of financial problems with its Nissan parent in the 1990s that brought about its rescue by Renault in 1999. It would be 2008 before Infiniti began rolling out its operation in Europe.

The company has pursued a strategy of separation from its Nissan roots for some years and Infiniti now operates from a head office in Hong Kong. The departure of Infiniti chairman Dr Andy Palmer, who had risen through the Nissan ranks to head up Aston Martin in the UK, created a vacancy at the top of the company in September 2014. That was filled by Roland Krüger, who became Infiniti’s new President on 1 January 2015, having previously been a senior vice president at the BMW Group. He is one of the few motor industry leaders who began his career as a designer.

He took over at Infiniti as the company prepares to begin production in Europe at the Nissan Sunderland plant in the UK in 2016. The first European‐built Infiniti will be the production version of the Q30 concept, a C‐segment hatchback, first seen at the Frankfurt Show in 2013. The car is due to go on sale in the first half of 2016 and will be the first model to target a Euro‐ pean mainstream segment. The Q30 will follow the launch of a car based on the Q60 concept, shown at the Detroit Show in January 2015. Q60 is a two‐door, 2+2 coupe and the production car is due to be launched at the Geneva Show in 2016.

The company revealed its latest concept, the QX30 crossover at the Geneva Show in March. The QX30 is based on the Q30 and is also due to join the Infiniti range during 2016.

How does Roland Krüger see Infiniti growing in Europe? “With the vehicles

we see on our stand,” he told IFW, “Tapping into the compact SUV segment.

At this point in time we don’t have a product in that segment, but the QX30 will give us that product.”

Krüger wouldn’t be drawn on whether the company should launch a smaller product than the Q30 or QX30 though. “I suggest we launch the cars first and get them right because there are two models the Q30 and the QX30 crossover and then we go from there. It is a very big step that we are taking.”

Discussing the decision to build the Q30 and QX30 in the UK at the Nissan plant, Krüger said that he thought it was impor‐ tant that Infiniti utilises the Renault‐ Nissan Alliance network, where there is access to a supplier base. “It’s important that we continue to utilise the alliance as the backbone and strength of Infiniti.

That’s actually important to me,” he said, “At the same time, we have to make sure that the character of the car is maintained as a true Infiniti and that what we promote and market is a true product of Infiniti.” By “true Infiniti”, Krüger says that he is referring to the power delivery and driving dynamics of the car.

Alliance partners Nissan and Renault are both committed to EVs and Krüger believes that this is a path that Infiniti must also follow. “We have electrification in the cars and its very clear with all the development around the world that we cannot have a line‐up without electrifica‐ tion. Will it be in every car all the time? Not necessarily. Look at Europe where there’s a diesel market. When we launch the Q30 and QX30 we will have diesel engines.”

Infiniti has a link with Formula 1 through the Red Bull team and Krüger thinks that this gives Infiniti an opportu‐ nity to engage with customers and dealers.

There is no shortage of premium brand competition for Infiniti and estab‐ lishing a new brand was always going to be difficult. I asked Roland Krüger what

Infiniti offered customers that competi‐ tors do not, or what customers expected from Infiniti that they could not get from other brands. Krüger focussed on Infiniti design, “The design of our cars is outstanding,” he said, “There is a clear and unique design language. This is a differentiator in itself. Then of course we have the Infiniti heritage. We need to make sure that on the dealer side we offer superb service.

“This is how Infiniti started in the US. In 1989 the proposal was that we offered a pick up service for cars that was unheard of at the time. Of course later, MINI came in and copied that. What I want to say is that our understanding of customers is on another level. It’s one thing to know what we want in the prod‐ uct, but on the dealer side and with our business partners, we support many other services for our customers.”

Krüger recognises that brand aware‐ ness of Infiniti needs to be raised in Europe. It’s still not a brand that many potential customers recognise easily, partly because the dealer network is still quite small and the original Infiniti prod‐ ucts which were designed for US consumers were not so well suited to European tastes. The arrival of products designed for European customers will doubtless help Infiniti’s progress.

I asked executive design director, Alfonso Albaisa how close the QX30 concept was to the production model.

“Every element that you see on the car is in the production version. We went nuts with the wheels. They’re a little big – about 20mm wider. But the character, the shades, the headlamps, the grille, the body section is all production.” Inside, Albaisa says that the shape of the instru‐ ment panel is close, but the blue and brown leathers used in the trim will not be in the production car. As an entry‐ level car, it won’t be as luxuriously trimmed as larger models.

internationalfleetworld.com / 27

FEATURE European Eco-driving Roundtable Conference 2015

All-round support

“Supporting drivers in the cars they drive now will be imperative to reducing emission levels.�

Professor Oliver Carsten

28 / internationalfleetworld.com

ecoDriver Project

Held in Amsterdam, the Eco-driving Roundtable Conference into improving environment standards and safety on Europe’s road was lead

by Professor Oliver Carsten (left), the leader of the ecoDriver Project.

The use of driver behaviour tools to raise standards in greener, safer driving was a key discussion topic, with TomTom Telematics launching its latest product, OptiDrive 360, at the event. Katie Beck reports.

Established in 2011 with a budget of €15.5m (including a European Union contri‐ bution of €10.7m), the four year ecoDriver Project targets a 20% reduction of CO2 emis‐ sions and fuel consumption in European road transport by encouraging the adoption of green driving behaviour.

“Roughly 20% of all green house gas emis‐ sions come from the road transport sector, so transport is a big contributor to pollution levels in Europe,” explains Oliver Carsten, ecoDriver Project leader.

“The transport industry has a goal to reduce the CO2 levels that were present in the 1990s by 60% by 2050, but the European Environment Agency has found that the numbers have been going the wrong way.

The levels are currently 20% above the levels of the 1990s, which is very concerning.”

Professor Carsten argues that while vehi‐ cle manufacturers are working hard to make new cars less polluting, the high proportion of older vehicles on the road means that there will likely be a 13‐14 year gap before vehicles with reduced emissions are commonplace on the road.

“We renew something like one twelfth of the vehicle fleet a year, so existing vehicles are going to be a big part of the problem and we need to do something about that.

Supporting drivers in the cars they drive now will be imperative to reducing emis‐ sion levels,” he says.

Project partners The ecoDriver Project combines the work of 12 diverse partner organisations, repre‐ senting R&D institutions, environmental experts and vehicle manufacturers drawn from across Europe. A key project goal is to deliver the most appropriate eco‐driving advice and feedback in real‐time, which, according to Professor Carsten, is why TomTom Telematics was approached to develop an in‐car solution in partnership with the Project.

“When we secured TomTom as our after‐ market driver support system partner the European Commission was incredibly pleased about it,” he says. “We wanted to look at CO2 and fuel consumption levels, we wanted to consider the human element by optimising the feedback and support of the driver depending on the type of road situa‐ tion, and give support to obtain the most energy‐efficient driving style. We believe OptiDrive 360 covers all these bases.”

internationalfleetworld.com / 29

→

FEATURE European Eco-driving Roundtable Conference 2015

All-round support to reduce speed by decelerating in‐gear as distance to the junction is counted down, instead of driving right up to the intersection and braking sharply. This improves driving efficiency and allows the driver to accumulate coasting distances,” says Jasper Pauwelussen, product manager at TomTom Telematics.

Feed-back

Eco-driving support The OptiDrive 360 product bundle

→

OptiDrive 360

Feed-forward

OptiDrive 360 is the first product launch to come out of the ecoDriver Project, and is the latest update to the TomTom Telematics WEBFLEET OptiDrive system. OptiDrive 360 uses a black box system, Bluetooth connectivity, onboard diagnostics and a dashboard navigation screen to advise drivers on how to achieve a greener, safer driving style.

“The new system offers a 360 degree approach to help drivers and compa‐ nies to continuously improve their driving,” explains Paul Verheijen, prod‐ uct management director at TomTom Telematics. “This covers four areas – LEARN (top tips and tricks for eco‐ driving), COACH (immediate in‐car feedback for drivers), EVALUATE (reviewing trip data to understand performance) and COMPARE (compar‐ ing driving performance to previous trips and peer review).”

Pre‐trip, drivers are given access to best practice advice on how to drive safely and fuel‐efficiently. This is presented as a series of educational units accessed through the WEBFLEET platform, and allows drivers to refresh their understanding of eco‐driving techniques.

Once behind the wheel, the driver is offered real‐time advice through the dashboard navigation screen on the most efficient driving style for the envi‐ ronment they are in, using map and vehicle data to pinpoint the driver’s exact position and give advice on what to expect from the road ahead.

“OptiDrive 360 can help drivers to prepare for what is coming, or ‘feed‐ forward’, the opposite of ‘feed‐back’,” Professor Carsten explains. “The system can notify of upcoming speed limit changes using map information, sharp turns in the road to optimise safe driv‐ ing, and information about slopes upwards and downwards to help drivers build up a picture of the road ahead.”

Eco‐driving elements such as gear shifting, constant speed, green speed (most efficient speed) and coasting opportunities are recorded alongside the more traditional KPIs (Key Performance Indicators) of speeding, harsh braking, idling and fuel consumption to build up a picture of the driver’s skill‐level.

Coasting refers to the action of the driver lifting their foot off the accelerator instead of braking: “when approaching an intersection, the driver is encouraged

30 / internationalfleetworld.com

After the journey is completed, WEBFLEET provides managers with a series of in‐depth reports then enables them to drill deeper for greater analysis and to compare a fleet of drivers.

“Feed‐back tells drivers how they did and gives them tips on how to improve,” Professor Carsten explains. “To reduce distractions this is only imparted when they have stopped so they are not trying to look at messages while driving. This is where the web tools and back‐office functions come in.”

“The information the driver sees is exactly the same as the information the fleet manager sees to encourage trans‐ parency and frank information sharing, and remove the concern of ‘Big Brother is watching you’,” adds Mr Pauwelussen.

The EcoDriver Project conducted trials of the OptiDrive 360 system in Spain, France, UK, Germany, Italy, Sweden and the Netherlands ahead of its launch.

Creating a dialogue KPI data is immediately visible to drivers and managers.

internationalfleetworld.com

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RVs

Analysing leasing and residual value confidence in the Eurozone and beyond...

Europe enjoys rising RVs Contract hire and leasing companies across Europe are in an upbeat mood, with forecasted residual values rising throughout the year, reports Experteye.

T

his is according to the Experteye European Leasing index survey, which tracks forecasted resid‐ ual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies.

Since March 2014, Portugal has reported the greatest improvement in its RV fore‐ casts with a +5% increase. In Italy, projections are up by +3.9%, Spain +2.5%, the UK +1.1%, Germany +0.3% and France +0.2%.

In the last three months, Portugal and Germany have downgraded their residual value predictions slightly (‐ 0.1% for Portugal and ‐0.2% for Germany), otherwise the upbeat mood continues with the UK enjoying a +3.4% rise for the quarter, followed by Italy +1.1%, France +0.9% and Spain +0.4%.

Market summaries – 3 and 12 months to February 2015

FRANCE: In France, residual value (RV) forecasts are up by +0.2% for the year and +0.9% for the quarter. Servicing, maintenance and repair (SMR) budgets are rising, with a +0.9% increase in the last three months after a year that saw them go up by +2.9%. The impact on rental rates has been a small ‐1.3% reduction over the last 12 months, and a slight +0.3% price rise since December 2014.

GERMANY: German fleet operators have seen the SMR element of their contract hire rentals rise by +5.4% in the last quarter, the largest increase of all nations surveyed. This follows a year that saw a +3.6% rise in SMR budgets. RV forecasts remain relatively stable with a ‐0.2% fall after a +0.3% annual rise. Rental rates went up by +1.6% for the year but fell by ‐ 3.3% in the last three months.

ITALY: After a year that saw SMR budgets fall by a dramatic ‐11.2%, they have remained unchanged in the last quarter (0%). Confidence in the future used vehicle market is good with a +3.9% rise in RV forecasts since March 2014 and a +1.1% increase in the last quarter. Monthly contract hire rentals had fallen by ‐1% last year but went up by +1.6% during the latest quarter.

PORTUGAL: Confidence in Portugal has been high over the last 12 months with fore‐ casted RVs rising by +5%, the highest across all nations surveyed. In the most recent quarter they steadied with a small ‐0.1% drop. SMR budgets have fallen by ‐5.1% since March 2014, but rose by +0.4% since December. Portuguese fleet operators have enjoyed a signifi‐ cant ‐7.7% drop in their monthly rentals over the last year, with a small ‐0.2% reduction in the last three months.

SPAIN: In Spain, SMR budgets went up by +4.9% last year, with a +0.3% increment since December 2014. RV forecasts remain positive with a +0.4% rise in the last quarter after a year which saw them go up by +2.5%. Rental rates rose by +0.6% for the year and +0.3% for the quarter.

UK: The UK saw the biggest improvement in its forecasted RVs in the last three months with a +3.4% rise. This follows a +1.1% improvement during the year. SMR budgets have seen little movement with a +0.1% shift in the last quarter and +1.4% for the year. Rental rates went up by +0.8% since March 2014 but fell by ‐1.7% since December.

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

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 France Germany Italy Portugal Spain UK

+0.9% -0.2% +1.1% -0.1% +0.4% +3.4%

+0.2% +0.3% +3.9% +5.0% +2.5% +1.1%

Notes: • The comparisons are for vehicles with a contract duration of 36 months/90,000km.

• Twelve-month comparisons show change since March 2014.

• Three-month comparisons show change since December 2014.

32 / internationalfleetworld.com

+0.9% +5.4% +0.0% +0.4% +0.3% +0.1%

+2.9% +3.6% -11.2% -5.1% +4.9% +1.4%

+0.3% -3.3% +1.6% -0.2% +0.3% -1.7%

-1.3% +1.6% -1.0% -7.7% +0.6% +0.8%

• 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.

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FLEET FOCUS UK

Great Britain Despite its small size, the UK market stormed ahead of slow European new car growth last year. Will this trend continue into 2015? John Kendall reports. ccording to the recently published White Clarke Group UK Asset and Auto Finance Country Survey of A the UK in the 12‐month period to the end of December 2014, car finance, commercial vehicle finance and plant and machinery finance were the three dominant sectors in the UK’s finance and leasing business. As the report points out, the UK has the sixth largest economy in the world and its asset finance market is reckoned to rank higher than that, possibly the fourth largest.

Figures from Leaseurope suggest that in the first half of 2014, new business volume for equipment and vehicle finance (excluding land and buildings) reached €27.8 bil‐ lion, compared with €23.5bn in Germany. Leaseurope suggests that compared with the same period in 2013,

34 / internationalfleetworld.com

the UK market growth rate was only exceeded in West‐ ern Europe by Spain and Portugal, both of which were recovering from a steep decline.

This is in line with the growth the UK has enjoyed in the car market over the past three years. According to data published by the UK Society of Motor Manufactur‐ ers and Traders (SMMT), new car registrations reached 2,476,435 in 2014, the highest figure for a single year since 2004. This was the fourth highest number of regis‐ trations ever recorded, only exceeded in 2002, 2003 and 2004. While average growth in registrations across the European Union reached 5.7% in 2014 according to data from the European Automobile Manufacturers Associa‐ tion (ACEA), the market in the UK grew by 9.3% com‐

pared with 2013. In December 2014 the UK car market recorded its 34th consecutive month of growth in regis‐ trations. The UK is the second largest car market in the EU after Germany. Considering the size of the country rel‐ ative to the five largest EU automotive markets, (France, Germany, Italy, Spain and the UK) and the comparative size of the country’s highway network, the figures are remarkable, not least because the UK market has been growing while most other EU countries have still seen their markets declining over this period.

ALTERNATIVE FUEL VEHICLE REGISTRATIONS BOOM SMMT data also shows that the UK market for plug in hybrid electric vehicles (PHEVs) increased by 304% in 2014 from 3,586 in 2013 to 14,498 in 2014. SMMT data indicates that registrations of cars powered by alternative fuels (other than petrol or diesel) rose 58% from 32,731 in 2013 to 51,739 in 2014.

One of the manufacturers to benefit was Mitsubishi with sales of the Outlander PHEV. Overall the company saw reg‐ istrations rise by 75% to 15,805 in the UK in 2014 and the Outlander PHEV accounted for over 50% of sales of PHEV and electric vehicles during 2014. The company saw the benefit of improved exchange rates with the Japanese Yen, enabling the company to offer more competitive prices, a factor that has similarly been beneficial to other manufac‐ turers importing vehicles from Japan.

Mitsubishi Motors in the UK forecasts that over 10,000 Outlander PHEVs will have been registered in the UK by the end of March 2015. According to Mike Hawes, SMMT chief executive, “The year was particularly strong for alter‐ natively‐fuelled vehicles as increased choice, coupled with a growing desire for reduced costs and greater efficiency, resulted in a quadrupling of plug‐in car registrations over 2013. With a variety of new plug‐in models expected in 2015, this area of the market will continue to grow significantly. For the market as a whole, we expect a more stable 2015 as demand levels off.”

Like many other EU countries, the

UK has a car tax regime based on carbon dioxide emissions. Similarly, Benefit‐in‐Kind taxation for company car drivers is based on car‐ bon dioxide emissions and there are tax benefits for those who choose cars like the Outlander PHEV. Under the current New European Drive Cycle (NEDC) test the Outlander PHEV returns CO 2 emissions of 44g/km. In the current tax year, ending on 5 April 2015 and the 2015‐16 tax year, the car will attract BiK tax at a rate of 5% compared with 23% for the diesel variant of the car, which will rise to 25% in the next tax year. Diesel cars currently carry a 3% BiK surcharge compared with petrol models in the UK. This is due to change in April 2016 though, when the 3% surcharge will be dropped and petrol and diesel powered cars will be treated equally where BiK tax is concerned.

The low BiK rate for business cars with low emissions is not scheduled to last in the UK, though. By the 2018‐19 tax year, the BiK tax rate for cars with CO 2 emissions between 1 and 51g/km will have risen in stages to 13%.

There are also advantages in the rates of Vehicle Excise Duty (VED). This is an annual tax payable by all car own‐ ers. Cars with low CO2 emissions attract the lowest rates.

Currently cars with emissions of 100g/km or less are exempt from VED. If we take the Mitsubishi Outlander as an example again, the PHEV would be zero rated for VED, while the diesel model would be liable to pay an annual rate of £130 (€152 approx.).

Other issues relevant for tax purposes are tax relief for employers on the cost of a lease. Cars with CO2 emissions below 130g/km qualify for full tax relief and there are capital allowances for companies that choose to buy cars, with greater allowances for those with CO2 emissions below 130g/km.

Companies unsure of whether it would be more benefi‐ cial to buy or lease might find an online tool launched recently by GE Capital helpful. Using fleet information, including the kind of cars and vans operated, their normal replacement cycle, annual mileage and current age, the tool will forecast the estimated costs of each acquisition method annually and over the next three and five years.

SMMT data classifies UK car registrations in three cate‐ gories, Private, Fleet and Business. Those in the Business category are those used by organisations that operate between one and 24 cars, while Fleet is defined as those organisations operating 25 or more cars. Of the 2,476,435 cars registered in 2014, 1,179,499 (47.6%) were classified as Private, 1,178,416 (47.6%) as Fleet and 118,520 (4.8%) as Business. The percentage breakdowns are more or less unchanged from 2013. The SMMT also highlights some

internationalfleetworld.com / 35

→

FLEET FOCUS UK

UK CAR REGISTRATION CLASSIFICATION Year

Total

Private

Fleet

2014 2013

2,476,435

1,179,499

1,178,416

118,520

2,264,737

1,074,622

1,084,279

105,836

9.3

9.8

8.7

12.0

Share ’14 %

47.6

47.6

4.8

Share ’13 %

47.5

47.9

4.7

% change

Business

Source SMMT

→

longer‐term trends, which are similar to other major Euro‐ pean markets. Demand for smaller cars in the A and B seg‐ ments has grown and accounted for just under 40% of registrations in 2014. Similarly demand for crossover and SUV models has also grown from around 5% of registrations in 1999 to just under 20% of registrations in 2014.

These trends show clearly in the best selling cars in the UK in 2014. Ford held the top two places, with the Fiesta accounting for 131,254 registrations, significantly more than the second placed Ford Focus with 85,140 registra‐ tions. The Vauxhall Corsa was the third best‐selling car with 81,783 registrations, decisively ahead of the Volkswagen Golf in fourth place with 73,880 registrations.

The UK changes vehicle registration plates twice a year, with the plate indicating the year of registration for the car in the numbers shown. The changes take place in March and September, which tends to suppress demand in February and August while pushing up demand considerably in March and September, with demand tailing off notably in April and Octo‐ ber. Currently March – August registration plates indicate the UK BEST SELLING CARS 2014 Model

Registrations

Ford Fiesta

131,254

Ford Focus

85,140

Vauxhall Corsa

81,783

Volkswagen Golf

73,880

Vauxhall Astra

59,689

Nissan Qashqai

49,909

Volkswagen Polo

48,004

Audi A3

45,581

Fiat 500

44,005

Nissan Juke

39,263

Source SMMT

36 / internationalfleetworld.com

year (e.g. 13, 14, 15 etc.) and the September‐February plates a prefix number followed by a number indicating the year.

The prefix number is currently 6 (e.g. 63, 64, 65 etc.).

According to the White Clarke Group UK Asset and Auto Finance Country Survey of the UK in the 12‐month period to the end of December 2014 the number of new cars bought by business on finance in 2014, grew by 11%, compared with 3% growth in 2013. Looking ahead, the report suggests that average growth in this area of business is expected to reach just under 5%, although some more optimistic estimates sug‐ gest it could reach 10%. The report also suggests that resid‐ ual values will soften in 2015 as the number of leasing vehicle returns rises and more nearly new cars come onto the mar‐ ket. A recent wave of anti‐diesel sentiment regarding emis‐ sions may depress diesel RVs. CVs Manufacturers did not expect a particularly good year in 2014, mainly because of the introduction of Euro 6 emis‐ sions regulations for all new CVs over 3,500kg GVW on 1 January 2014. Because of the way that the UK industry had chosen to use the derogation for Euro 5 compliant models, this allowed buyers to order Euro 5 models and stockpile them, introducing them as the year progressed. Given the on‐cost of Euro 6 compliant models, it gave operators who had the financial resources an opportunity to contain spend‐ ing on new vehicles. Light CVs are not finally affected by the legislation until 2016 and the growth in new light CV regis‐ trations offset the expected decline in heavy commercial vehicle registrations. Total CV registrations rose by 11.0% in the UK in 2014 to 363,155, with light CVs below 3,500kg gross weight rising 18.7% to 321,686. By contrast heavy truck registrations declined by ‐26.2% to 41,469. That said, SMMT chief executive Mike Hawes suggested that 2015 could see a return to stability. Registration data for January and February suggests he may be right. Compared with the same period in 2014, total CV registrations have increased by 21.7% while LCV registrations have risen by 20.2% and trucks by 35.3%.

Total CV registrations rose by 11.0% in the UK in 2014 to 363,155

IAM REPORT Canada

Rocky Road Advice for business travellers in Canada from the Institute of Advanced Motorists.

C

anada is one of the most beautiful countries in the world. For a holiday, taking a leisurely drive across hours of freeway enjoying the scenery would be a real pleasure, as a business user the sheer distances involved can make it a different matter entirely.

If you are covering a large distance (there are six time zones from west to east) be aware you will encounter a large variety of road conditions; from expressways to busy town routes through to winding country roads.

You should bear in mind that each province and terri‐ tory can set its own traffic and safety laws – so things can differ from place to place. For instance many road signs are only shown in French in Quebec, so carrying a French phrase book would be an advantage.

Talking generally, as in the USA, right turns on red traffic lights are generally allowed. However, at some junc‐ tions in towns and cities you can only turn right on a green light. In some parts of Quebec, right turns on red lights are not allowed at all.

The risk of a collision is an ever present danger, as the wide open roads mean some drivers get impatient and will break the speed limits. There are regular mobile patrols with hand‐held speed cameras and some provinces use heli‐ copter patrols. Fines are high – so always exercise caution.

The speed limit on motorways is 100km/h, and in built up areas 50km/h. Each province has a points system for drink driving offences and you will receive both a fine and points on your licence if you are found to be exceeding the alcohol limit. In Canada it is a criminal offence to drive with a blood alcohol concentration of 0.08, or 80 milligrams of alcohol in 100 millilitres of blood.

A bonus for most visiting car driving licence holders is

that you can both drive and hire a car in Canada using a standard full driving licence. You should carry the plastic photo card and the paper counterpart at all times. The Canadian Government advises carrying an International Driving Permit obtained in your home country.

While it’s not exactly breaking news to say it snows in Canada, what might catch out the unassuming traveller is how deep the snowfall can be. Winter driving conditions can be extreme, so you should pay close attention to local news and weather and take advice. Snow tyres are required in some provinces.

You should watch out for icy roads, rock avalanches, snow or other extreme conditions. Some roads are very isolated and getting into an accident there could mean being stranded for several hours with no other cars passing by. You should always take a mobile phone if you can, and save the number of local emergency services into it.

The Canadian Government’s Get Ready website advises you carry the following items if driving in Canada in the winter: food that won't spoil (like energy bars), water (in plastic bottles that won't break if the water freezes), a blan‐ ket, extra clothing and shoes or boots, first aid kit with seat‐ belt cutter, small shovel, scraper and snowbrush, candle in a deep can and matches, wind?up flashlight, whistle (in case you need to attract attention) and road maps.

A problem for driving in Canada is the potential threat from wild animals. Bears are present in many places, for instance. Road signs will usually alert you to the presence of certain types of wildlife. Hitting a deer, elk or moose can be a real danger for cars, as their sheer size means there’s a high chance that you’ll be killed if you’re involved in a collision with one of these – so do be cautious.

internationalfleetworld.com / 37

NAFA International Fleet Academy

Mitigating risk CHAPTER 11

Managing global fleet risk This chapter gives advice on establishing an effective risk management process, introduces legal concepts associated with negligence and explains the business case for reducing exposure to risk.

Reproduced with the kind permission of NAFA Fleet Management Association, this is the latest in a series of extracts from the International Fleet Academy Global Fleet Guide.

38 / internationalfleetworld.com

Scale of the issue

Negligent entrustment

Vehicle crashes are a leading cause of work‐related injuries and deaths. This statement remains true around the globe where traffic crashes are the ninth leading cause of death. This translates into the following global statistics: • 1.3 million deaths annually as a result of traffic crashes • 20‐50 million serious injuries annually as a result of traffic crashes • 30% of all traffic crashes are work‐related

Negligent entrustment claims arise when an unlicensed, incom‐ petent, or reckless driver causes damages while driving a motor vehicle owned by someone else. The concept of negligent entrustment is a key foundation for risk management activities.

In a legal situation, it is the responsibility of the company to prove that it has not been negligent when assigning (entrusting) a vehicle to an employee or allowing an employee to drive a personal vehicle while conducting company business.

Possession of a driver’s licence may not be enough to prove that the company was not negligent in allowing a driver to drive. In some parts of the world, obtaining a driver’s licence may be as easy as paying a fee; in other parts, it may be more difficult, requiring attendance in classes, many hours of behind‐the‐wheel instruction, and a written and on‐road test.

In still other countries, a driver’s licence may not even be required. Legal systems vary globally with different interpre‐ tations of negligent entrustment.

So what can a fleet manager do? The best way to avoid negli‐ gence is to develop a thoughtful risk management program that takes into account the company’s risk tolerance and industry best practices. In addition, the fleet manager should continually seek out new ideas, technologies, and programs that will help to provide for a safer work force.

With this in mind, global fleet managers must treat risk management and crash reduction as a priority concern.

Establishing a policy Risk management is the process of identifying, evaluating, and measuring risks, then developing strategies to control those risks. The process is more complex for global fleets as there are many more variables to consider. Typically, an organisation is concerned with losses such as property, assets, liability, income, and personal exposure. A global fleet manager needs to also consider regional variables, such as financial or governmental collapse within a country, war, or corruption as viable risks.

The basic risk management process involves the following steps: 1. Define your objective 2. Identify and analyse the risks 3. Examine alternative techniques for preventing the risks or paying for losses 4. Choose the most appropriate risk management techniques for the company 5. Implement a risk management program 6. Monitor progress and modify as needed The table below shows a simple grid for planning a risk management strategy. For high severity and high frequency events, a company may choose a plan aimed at avoiding or reducing the risk (driver training, driver record checks), while for low risk and low severity events (minor dents from park‐ ing incidents) a company may choose to retain the risk and cover losses with their own funds, rather than make a claim.

RISK MATRIX Severity/ Frequency

High Frequency events

Low Frequency events

High Severity

Avoidance/Reduction

Insurance

Low Severity

Retention/Reduction

Retention

Readers can review the full article – and much more – by purchasing the Global Guide through the NAFA website: www.nafa.org/

The business case The cost of crashes includes worker compensation, vehicle repair bills, replacement transportation and substitute labour costs.

But these costs from on‐the‐job crashes reflect only a portion of an employer’s potential costs, since the employer also bears the costs for injuries that occur off‐ the‐job. These off‐the‐job costs include lost productivity, medical expenses and higher insurance premiums.

One way to show the business case for a crash preven‐ tion program is to show the data including the cost of crashes, lost productivity, and resultant lost profit.

Another way to make your case is to show the sales equivalent your business needs to generate in order to cover the costs of crashes.

Using some sample numbers: €95,000 crash costs divided by profit of 5% = €1,900,000 equivalent sales revenue needed to recover the crash costs. It’s a pretty compelling argument to tell your boss: they can either try to raise sales by €1.9m or they can provide you with, say, 10% of that amount to fund a risk manage‐ ment program.

Next month...

The importance of communicating risk management policies effectively and improving driving skills.

internationalfleetworld.com / 39

PROFILE Mercedes-Benz

2020 vision

Until 2020, Mercedes-Benz will globally introduce more than 30 models as part of the international growth strategy, of which 11 will be without a direct predecessor. This rate of growth is made possible by an ongoing program of improvements to the manufacturing and sales operation world-wide, giving Mercedes the strongest possible foundation on which to build new sales‌

40 / internationalfleetworld.com

view

Manufacturer Mercedes-Benz Total sales 2014 1,722,600 Headquarters Stuttgart, Germany Global market share 2.1% No. of models 16

from the top

Accelerating production...

M

ercedes‐Benz Cars recorded a 10% year‐on‐year sales uplift in 2014, with new models helping to spearhead expansion in line with the Mercedes‐ Benz 2020 growth strategy. Key to the strategy is the expansion of Mercedes’ global presence, both in terms of sales reach and localisation of manu‐ facturing operations for key markets. The first model to benefit from the increased international footprint was the new C‐Class sedan, which is now being produced in parallel in Germany, the United States, South Africa and China.

Mercedes achieved a strong overall sales performance in Europe in 2014, particu‐ larly in Spain (+35%), the United Kingdom (+13%) and France (+9%). Unit sales in Western Europe were up +4% over 2013, despite a ‐3% downturn in German sales.

A new sales record was achieved in the United States with sales of 334,000 vehicles (+8%), while sales in China achieved a +23% uplift. Mercedes also performed well in Japan (+14%), India (+14%) and Brazil (+6%) thanks to an improved sales network and the introduction of new models to broaden the brand’s international appeal.

A total of 471,700 new customers opted to buy an A‐Class, B‐Class, CLA‐Class or the new GLA‐Class series vehicle during 2014, representing an increase of +23% over the previous year. The sedans and wagons of the E‐Class remained popular, with unit sales of 329,000 for the E‐Class segment as a whole. 125,100 vehicles in the S‐Class segment were sold in 2014 (+75%), and C‐Class recorded 362,700 sales (+2%) despite the fact that the new C‐Class models did not become available in all core markets until October 2014.

New GLA was the latest addition to the Mercedes range of SUVs, and the fourth of a total of five new compact models for the brand. Deliveries of the GLA to customers began in March 2014, and the fifth compact model, the CLA Shooting Brake, available as of March 2015. The new S‐Class Coupe, which has been available since September 2014, is expected to provide an additional boost to sales in 2015.

After sales of more than 350,000 units of the B‐Class since its market launch in 2011, the first new B‐Class models were delivered in December 2014. The series is available with a choice of five diesel and four petrol engines, as well as alternative drive systems (electrical and natural gas), and the optional 4MATIC all‐wheel drive system.

Mercedes launched nine new models in China and made major investments in local production and research locations using a 500m renminbi (€75m) ‘panda bond’ secured by Daimler. The consolidation of marketing and sales activities was also completed, boosting the number of Mercedes‐Benz dealerships in China to 450 by the end of 2014.

Sales momentum was generated in Q4 by the launch of the long‐wheelbase C‐ Class, engineered specifically for the Chinese market. In November 2014 the new Mercedes‐Maybach sub‐brand was launched with the S 6001 model.

MERCEDES-BENZ Global sales, by territory Territory Western Europe of which Germany NAFTA of which USA China Japan Total

2013 640,000 280,000 363,000 319,000 239,000 54,000 1,566,000

2014 669,000 272,000 391,000 344,000 293,000 61,000 1,722,600

% change +4% -3% +8% +8% +23% +14% +10%

Sally Dennis, head of fleet at Mercedes-Benz UK, on the brand’s ability to attract new customers and its commitment to future drivetrain technology.

Has a broader range of C-segment vehicles helped increase European fleet share?

The Mercedes‐Benz range continues to grow in Europe thanks to the investment made in R&D by Daimler.

Over 67% of our compact car customers have been new to the brand. Over the next few years we will continue to grow the range with more new models and a real focus on e‐mobility. New cars in new segments make your brand far more appealing to the customer, whilst also giving choice, and more and more fleets are understanding that Mercedes can offer an all‐round cost effective solu‐ tion without compromise.

How have fleets responded to the B-Class Electric Drive?

The B‐Class Electric Drive is the first all‐electric series production car from Mercedes‐Benz and right‐hand drive version started production in March 2015. The car offers a wealth of bene‐ fits for the consumer including high levels of standard equipment, as well as the longest range currently in its segment and the most powerful elec‐ tric motor range. We have seen a real interest in this car from those compa‐ nies who are focused on their green credentials and fleets wanting to offer choice to their driver population.

How important is hybrid technology to Mercedes’ growth strategy?

With the introduction of Plug‐In Hybrid models Mercedes‐Benz is another step closer to zero‐emission mobility. We first launched the S 500 Plug‐In Hybrid and the C 350e will arrive in June. Mercedes‐Benz has committed to launching a total of 10 Plug‐In Hybrid models by 2017 and we see it as a real solution for the future. It is an efficient and practical solution for both short city journeys and longer motorway drives.

→

internationalfleetworld.com / 41

PROFILE Mercedes-Benz

→

Where are they made?

1 2 3

4

5

6 Manufacturing plant locations Europe

1 Mercedes-Benz Bremen, Germany –

C-Class (Sedan, Estate, Coupe), E-Class (Coupe, Cabriolet), SLK, SL, GLK 2 Mercedes-Benz Rastatt, Germany –

A-Class, B-Class 3 Mercedes-Benz Sindelfingen, Germany –

C-Class Sedan, E-Class (Sedan, Estate), S-Class, CL-Class, CLS-Class, CLS Shooting Brake, SLS AMG (Coupe, Roadster) 4 Mercedes-Benz Hungary Kft.,

7

Kecskemét, Hungary – B-Class, CLA International 5 Beijing Benz Automotive Co., Ltd.

(BBAC), China – C-Class, E-Class, GLK

6 Mercedes-Benz Tuscaloosa, Alabama,

USA – M-Class, R-Class, GL-Class 7 Mercedes-Benz South Africa (Pty) Ltd.,

East London, South Africa – C-Class Sedan (right & left-hand drive)

FIN m

Looking forwards...

fleet in numbers

1,100km Combined range of the F015 electric hybrid concept vehicle.

200,000 units Annual capacity of the BBAC plant in Beijing in 2015. ranking 10th Mercedes-Benz’s in the prestigious ‘Best Global Brands 2014’ report.

101g/km CO2 emissions of the new CLA Shooting Brake.

42 / internationalfleetworld.com

ercedes‐Benz is undergoing a range‐wide reclassification of its models, aimed at making its drivetrain and position easier to understand. Four‐door coupes and SUVs will be renamed gaining the CL and GL prefixes respectively, followed by a letter identifying them as part of the A, C, E and S‐Class families. Plug‐in, diesel and natural gas drivetrains will be marked out my e, d and g suffixes.

New additions this year will follow this naming structure. The CLA Shooting brake, arriving this month, is the latest member of the brand’s family of compact models featur‐ ing a lower overall height and elongated roofline similar to the equivalent CLS. From June 2015, the GLE Coupe will give Mercedes‐Benz a rival for the BMW X6, combining the sporty nature of a coupe and characteristics of a robust SUV. From launch this will be available as GLE 350d and GLE 400 diesel and petrol models offering 254hp and 362hp respectively.

There will also be a top‐of‐the range 362hp GLE 450 AMG model – the first model in the new AMG sports line, which straddles the gap between standard cars and full AMG models. This comes complete with DYNAMIC SELECT dynamic handling control system and Sports Direct‐Steer system.

Shortly afterwards, the GLE badge will extend to a refreshed version of the SUV currently badged as an ML‐Class, which is likely to adopt the same front‐end styling.

As well as the continuous expansion of the vehicle portfolio, Mercedes has also been working on a number of R&D projects for the burgeoning autonomous vehicle market.

The F015 luxury self‐driving sedan concept features a futuristic design and is based on the integration of an electric drive system with fuel cell technology.

The interior is designed to enable occupants to make the most of their journey time and is based on a variable seating system, with four rotating lounge chairs that allow a face‐to‐face seat configuration.

“Automated parking is among the functions that will make everyday life easier for drivers in the near future and we have already installed a wide array of partially GLE Coupe Variants: SUV Markets: Global autonomous driving functions in our core Fuel: 6.9-11.9l/100km model ranges C, CLS, E and S‐Class,” CO2: 180-278l/100km comments Sally Dennis, head of fleet, Mercedes‐Benz UK. “These include Lane Keeping Assist and DISTRONIC PLUS with Steering Assist and Stop&Go Pilot. This enables autonomous driving in congested traffic, which goes coming soon... well beyond a parking function.”

MERCEDES-BENZ fleet model range

A-Class

B-Class

C-Class

C-Class Coupe

E-Class

S-Class

SLK-Class

SL-Class

CLA-Class

CLS-Class

GLA-Class

GLK-Class

M-Class

GL-Class

G-Class

Variants: 5dr hatchback Markets: Global Fuel: 3.6-7.1l/100km CO2: 92-165g/km

Variants: Coupe Markets: Global Fuel: 4.1-12.0l/100km CO2: 109-280g/km

Variants: Roadster Markets: Global Fuel: 4.8-8.4l/100km CO2: 124-195g/km

Variants: 4dr Coupe, wagon Markets: Global Fuel: 4.6-10.6l/100km CO2: 122-248g/km

Variants: SUV Markets: Global Fuel: 6.2-11.8l/100km CO2: 154-276g/km

Variants: MPV Markets: Global Fuel: 3.6-6.7l/100km CO2: 94-156g/km

Variants: : 4dr saloon, wagon, coupe, convertible Markets: Global Fuel: 3.8-10.5l/100km CO2: 99-246g/km

Variants: Roadster Markets: Global Fuel: 7.3-11.6l/100km CO2: 172-270g/km

Variants: Crossover Markets: Global Fuel: 3.9-7.5l/100km CO2: 103-175g/km

Variants: SUV Markets: Global Fuel: 7.4-12.3l/100km CO2: 192-288g/km

Variants: 4dr saloon, wagon Markets: Global Fuel: 2.1-8.6l/100km CO2: 48-200g/km

Variants: 4dr saloon, coupe Markets: Global Fuel: 2.8-11.7l/100km CO2: 65-274g/km

Variants: 4dr Coupe, wagon Markets: Global Fuel: 4.0-6.9l/100km CO2: 104-161g/km

Variants: 5dr hatchback, 4dr saloon, wagon, coupe, convertible, roadster, crossover, SUV Markets: Europe, North America, South America, Africa Fuel: 5.6-8.1l/100km CO2: 145-189g/km

Variants: SUV Markets: Global Fuel: 11.2-17.0l/100km CO2: 295-397g/km

internationalfleetworld.com / 43

WHY YOU NEED TO BE THERE! INDOOR EXHIBITION

SEMINAR PROGRAMME

With over 60 exhibitors already signed up, the indoor exhibition area at Fleet Show 2015 promises to provide visitors with plenty of opportunities to discover new products, services and suppliers.

Covering everything from accident management to telematics, exhibitors in the indoor exhibition area will be primed to provide fleet buyers with information on how to make their fleet safer, more environmentally friendly, more cost-effective and more effective as a means of recruiting and retaining staff.

Fleet Show 2014 pioneered a new kind of seminar programme in which all the content was collated and presented by a team of experienced fleet managers.

Audience feedback was unequivocally positive and as a result the same format will be adopted in 2015.

Under the chairmanship of Dennis Dugen - Fleet & Employee Benefits Manager for WSP Group - our team of professional fleet managers will present the latest thinking on: • Fundamentals of Fleet Management • Environmental Management • Risk Management • Procurement and supplier agreements Further seminars and training sessions will be available throughout the day.

OFF-ROAD COURSE The off-road course will be in operation throughout the day. Visitors who have experience of driving 4x4s will be able to test a wide range of vehicles over the challenging course, while those who haven’t driven offroad before can pick up some of the key skills from our team of instructors.

TRACK DRIVING With so many different areas to choose from, Silverstone Circuit provides the perfect location for test driving new cars and vans. At Fleet Show 2015 visitors can experience: > NATIONAL

> INTERNATIONAL

> STOWE

VILLAGE CORNER THE LOOP

ABBEY COPSE CORNER WOODCOTE CORNER

NATIONAL PITS STRAIGHT

FARM CURVE INTERNATIONAL PITS STRAIGHT

CHAPEL CURVE

BROOKLANDS CORNER

WELLINGTON STRAIGHT

HANGAR STRAIGHT

LUFFIELD CORNER MAGGOTTS CORNER

CLUB CORNER

SPONSORED BY

VALE

AINTREE CORNER

STOWE CORNER

All drives will be accompanied by either a professional racing driver or a representative of the motor manufacturer.

Drivers on the National circuit will be able to experience the full excitement of the iconic Silverstone Circuit.

NETWORKING LOUNGE Fleet Show 2015 will provide visitors with a full day of informative experiences, but there’s always time to sit down for a chat with colleagues old and new. The networking lounge in Hall 3 proved to be something of a magnet for visitors to last year’s show and with so many of the industry’s major players in attendance, the networking lounge will once again be the place WHERE THE FLEET INDUSTRY MEETS.

SILVERSTONE CIRCUIT

12TH MAY 2015 www.thefleetshow.co.uk FLEET DRIVER OF THE YEAR Now in its third year, Fleet Driver of the Year 2015 is a driving competition like no other. It puts fleet drivers’ skills to the ultimate test through a thorough three-month assessment to find the UK’s best company car driver and promote safer, smarter driving. The event was launched by ALD Automotive, in association with event partners Toyota & Lexus Fleet Services. The final of the prestigious competition will take place at the Fleet World Fleet Show 2015.

REGISTER TODAY and be part of the action at the Fleet Show 2015, visit www.thefleetshow.co.uk

BMW 2 Series Cabrio A new badge for a familiar car, BMW’s smallest soft-top has real fleet appeal, says Alex Grant.

SECTOR Convertible PRICE €32,200–€51,350 FUEL 4.1–8.5l/100km CO2 108–199g/km

W

ith over 130,000 sales globally, BMW’s old 1 the 2.0‐litre 220i and 228i, both under 160g/km CO2, and the 218i as the entry point to the range. This last version Series Cabrio was the world’s biggest‐selling should be an interesting option for low‐mileage drivers, premium compact open‐top car. So while there’s and uses the three‐cylinder, 1.5‐litre engine from the MINI a new badge on the boot of its successor, which falls into Cooper. It’s a shame that the equivalent diesel, offered in the 2 Series line‐up, it hasn’t strayed far from a tested and the refreshed 1 Series, isn’t also available. popular part of the range.

Whichever engine is under the bonnet, the 2 Series The difference it has to face is a renewal of its closest Convertible offers exactly the driver‐focused driving expe‐ rival. While Audi’s first A3 Cabriolet felt like an adapted rience BMW has become synonymous for. Wide tracks, version of the Golf, complete with the trademark short large wheels and stiff suspension contribute to excellent boot, the second generation is based on the A3 Saloon. agility without back‐breaking ride quality and figure‐hug‐ So, like the BMW, it has a long and elegant profile with a ging sports seats are standard across yacht‐like rear deck. Audi offers more the range. engines, but there’s very little price dif‐ Open‐top motoring, accessible in 20 ference between comparative versions seconds at speeds of up to 50kph, takes of the two cars, making Ingolstadt’s con‐ very little of the Coupe’s practicality or tender much tougher competition – a sharpness away. Scuttle shake is barely choice based largely on a preference for noticeable, even when covering rippled the BMW’s rear‐wheel drive setup. stretches of rural tarmac, wind noise The 2 Series Cabrio gets a concise line‐ through the heavily insulated fabric sec‐ up, taking five engines from the Coupe of tion is minimal even at high speeds and which only one is a diesel. Of these, the lat‐ though the boot space is compromised est version of the 20d, now producing by compartments containing the roof 190hp, is likely to be the big fleet seller in mechanism, it’s still large enough to be most markets. It never feels like a watered useful and there’s a load‐through option. down version, lacking the narrow power Ultimately, all of these are qualities band, clatter and front‐end heaviness that The 2 Series Cabriolet which the A3 Cabriolet can now contest, older diesels might have brought, while still feels much closer to the though. Choosing the right compact soft returning impressive real‐world economy. equivalent 4 Series than its top really comes down to whether driv‐ For maximum efficiency, BMW’s excel‐ ers prefer the sharp‐edged futuristic lent automatic gearbox is a necessity. predecessor, a premiumstyling and detailed design of the Audi, This adds €2,100 to the price, and class cabriolet with style, or the rear‐wheel drive agility and another €440 on top of that for the Sport agility and surprising driver‐focused nature of the 2 Series. version, but it also cuts fuel consumption practicality on its side.

Neither of these excellent premium‐ from 4.4l/100km to 4.1l/100km. class cabriolets will disappoint.

Petrols comprise the 326hp M235i,

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Mazda2 A small car with good fleet appeal, reckons John Kendall.

SECTOR Supermini PRICE €12,790–€18,790 FUEL 3.4–4.9l/100km CO2 89–117g/km

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around 7% lighter than the outgoing model. It is adopting the o manufacturer selling cars in Europe can afford to same approach to engines as in other Mazda models. The ignore the B‐segment. While the C‐segment tends to Hazumi concept also previewed a new 1.5‐litre SKYACTIV be the best‐seller, both privately and in fleet ‐ VW diesel engine and both petrol and diesel engines will be based dominating with the Golf, B‐segment models tend to domi‐ on the same engine block. Petrol engines develop 75hp, 90hp nate in markets such as France, Spain and the UK. This may and 115hp driving the front wheels through either a five or not be core fleet sector business, but there are a large num‐ six‐speed manual transmission. There is also an option of a ber of B‐segment models on fleet books. Think Fiat Punto, six‐speed automatic with the 90hp engine. Petrol will account Ford Fiesta, Opel Corsa, Peugeot 208 and VW Polo. for most Mazda2 sales and with CO2 emissions between Mazda was well aware of the importance of the sector and 105g/km (for the 90hp manual) and 117g/km, they will have back in its days of Ford ownership, the Mazda 121 was sim‐ reasonable fleet appeal. Lower CO2 emissions are part of the ply a re‐badged Ford Fiesta. Much has happened since then, 1.5‐litre diesel package, which sees emis‐ although the outgoing Mazda2 was also sions of 89g/km for the 105hp engine. based on the 2008 Fiesta platform. While This is the only diesel power option and it it has not been able to compete in volume comes with a six‐speed manual transmis‐ terms, it has gained a solid reputation as sion as standard. a stylish small hatchback.

The diesel version really impressed on Mazda’s resurgence with models such as the road, with low engine noise, impres‐ the recently revised Mazda6 and Mazda3 sive torque, good performance and flexi‐ has made the brand attractive to fleet buy‐ bility. For high mileage fleet drivers who ers. Now a new Mazda2 built on a Mazda do not need a large car, the diesel has a platform has arrived, derived from the lot going for it. It doesn’t feel nose‐heavy Mazda Hazumi concept shown at the in the way that diesels used to, con‐ Geneva Show in 2014. Hazumi was one of tributing to the nimble chassis. the last projects overseen by Mazda Europe Petrol models may not offer the diesel design director Peter Birtwhistle before his engine’s torque, but offer good perform‐ retirement later in 2014.

The Mazda2 has more ance and low noise without the diesel The Hazumi concept also previewed character and more price premium. Our pick would be the Mazda’s MZD Connect system, which fleet appeal than the 90hp manual with the lowest CO2 emis‐ includes a seven‐inch touchscreen and sions of 105g/km but the same 148Nm of smartphone connectivity. To that has model it replaces, with torque at 4,000rpm as the 115hp engine. been added a head‐up display in some low-CO2 diesel and Add in a long list of safety equipment Mazda2 models, a first in the B‐segment, petrol engines to suit and a comfortable cabin with reasonable according to Mazda. most types of driver. rear seat legroom and Mazda looks as Mazda says that, in line with its though it has a success story on its hands.

SKYACTIV technology, the new Mazda2 is

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Suzuki Vitara The latest Vitara could win friends in the fleet sector, reckons John Kendall.

SECTOR Crossover PRICE €17,990–25,990 FUEL 4.0–5.74l/100km CO2 111–131g/km

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t would be an unwise manufacturer that ignores the com‐ 1.6‐litre common rail unit is familiar from a range of Fiat pact SUV sector around the world, but particularly in group models. Both are Euro 6 compliant and equipped with Europe, where it accounts for some 20% of annual sales engine Stop/Start. Diesels do not need AdBlue to meet the and is currently the fastest growing on the market. emissions limits. Suzuki claims the lowest CO2 emissions in class for a compact SUV. That means 106g/km for two‐wheel‐ Suzuki has effectively competed in the sector since it was drive six‐speed manual diesel models, ranging to 111g/km for invented with the original Vitara appearing in 1988. Tradi‐ 4WD. For petrol models the range is 123g/km to 131g/km tionally, Suzuki has been a comparatively small player in the from 2WD five‐speed manual to 4WD six‐speed automatic.

European market, despite being a fairly sizeable company Suzuki’s ALLGRIP four‐wheel drive system was first with strong interests in countries like India where Suzuki seen on the S‐Cross and all 4WD models are equipped with Maruti is the market leader. it. It offers four modes: Auto, Sport, Snow and Lock. In The reasons for its comparatively small role in Europe Auto mode, the car remains in 2WD have been its small standing in the days unless loss of grip is detected at the rear of quota‐restricted imports, which meant wheels. Comprehensive safety equip‐ market stagnation for the smaller Japan‐ ment includes radar brake support for ese manufacturers. Having consigned helping to avoid rear‐end collisions and that to history, the Japanese economy adaptive cruise control. plunged into a prolonged recession, then Suzuki is offering a range of new body unfavourable exchange rates that made colours and colour combinations to Japanese‐built products uncompetitive. attract new customers. The car also gets Suzuki, with plants around the world has the two‐piece sliding glass sunroof from been able to overcome that. The new the S‐Cross and LED headlamps. Luggage Vitara, for instance is built at a plant in Hun‐ capacity is 375 litres with rear seats gary and following its European launch, it upright, extending to 710 litres with will be exported around the world from them folded. there.

Both petrol and diesel models offer Expansion is clearly the plan for the com‐ Suzuki has produced respectable performance, but obviously pany and products like the S‐Cross and a keenly priced and more torque from the diesel makes it feel Vitara clearly have fleet potential. The appealing compact more responsive. As we have come to Vitara range has been slimmed down and expect, it’s a refined diesel too. Although the new model is smaller than its prede‐ SUV. With the right the car is competitively priced, low cessor – there’s no Grand Vitara. equipment, it could mileage users might find the petrol Suzuki is keeping the model range sim‐ make an attractive model a more cost effective package. ple with either a 1.6‐litre petrol or diesel fleet package.

Tidy handling and a quality interior add engine, both producing 118hp. Suzuki to the Vitara’s appeal. sources all diesel engines from Fiat and the

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Citroën C4 The C4 is a sensible choice, but lacks the sparkle of its stablemates, reckons Alex Grant.

SECTOR Lower Medium PRICE €18,950–€30,490 FUEL 3.3–6.1l/100km CO2 86–140g/km

C

mid‐spec Feel trim and for the functionality it brings it’s itroën’s latest C4 models, the Picasso and Cactus, probably worth having. have given it a pair of very strong products right at Line of sight materials are generally high quality and soft to the core of its range. Sadly, without the weight‐saving the touch and there’s plenty of room in the front and back, innovations and clean new family design, the C4 hatchback though the latter is compromised by the optional panoramic seems to have aged prematurely by comparison. roof. The boot is one of the segment’s largest and a wide, So, after five years on sale, Citroën has turned its attention usable shape, but the rear seats don’t fold flat with the floor. to the second‐generation of what remains an important Citroën is marking itself out as a brand with wellbeing, model. Behind new three‐dimensional front and rear light rather than sportiness, woven into its identity. So the internals, a couple of additional shades of grey paintwork and C4 rides smoothly over even the roughest surfaces on its some fresh alloy wheel designs, it’s taking steps to define smallest wheels, but isn’t a car which likes to be rushed. itself as a model in its own right, separate from the still visu‐ Comfortable front seats, now available ally similar DS 4, and it looks all the better with a massage function, and effortlessly for what is really a subtle change. light steering feed into that ethos.

Minor exterior tweaks are matched It also makes good sense on paper. Pric‐ with familiar PSA Peugeot‐Citroën tech‐ ing is aggressive and there are several nology inside the cabin. The dashboard notable new engine options. This now now features a seven‐inch touchscreen includes 110 or 130bhp turbocharged display, as used on most of the group’s three‐cylinder petrols, and three BlueHDI new products, which neatly groups nav‐ diesels with 100, 120 and 150bhp. On 16‐ igation, media and telephony controls inch wheels, all diesel versions now emit into the screen, in turn allowing Citroën 98g/km or less and, with the optional to significantly reduce the number of Stop and Start system, the BlueHDI 100 physical buttons on the centre console. consumes 3.3l/100km and emits 86g/km.

It’s logically laid out and an improve‐ That’s not far behind the C4 Cactus. ment on the old car, plus this still has So the C4 shapes up well – it’s under‐ proper air conditioning controls – some‐ The C4 is a good car, and stated, comfortable, practical and now has thing the Picasso and Cactus have done lower running costs will the fuel efficiency it needed to be a com‐ without. However, it’s only standard make it more attractive. petitive part of this segment. The prob‐ equipment on top trim levels. Most ver‐ lem, though, is it’s sharing a showroom sions get a black‐on‐orange LCD display But, it's possibly a little and nameplate with two excellent prod‐ and the old car’s scattering of buttons, anonymous in this ucts, and it still feels a little dated by com‐ with a blanking plate across half of what segment, even against parison. In a sector packed full of brilliant, would be the screen. its stablemates. desirable hatchbacks, the C4 remains an Upgrading costs a very reasonable entirely head‐over‐heart choice. €250, or €800 with navigation, on the

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fleet in figures

Sales rise around the world Strong growth features in many global light vehicle markets, but Europe still looks uncertain and markets such as Russia are under heavy pressure, reports John Kendall.

Jeep Jeep was the brand to post the individual largest gain for the period with registrations up 192.7%

True fleet registrations Early data from the five leading Euro‐ pean markets shows that registrations of passenger cars in the true fleet market rose by 9.6% in January 2015 compared with January 2014, according to data from Dataforce (data excludes dealer‐ ships and rental cars).

Spain registered the greatest increase with true fleet registrations rising by

50 / internationalfleetworld.com

27.5%. In Italy the increase was less at 24.4%, while Germany showed an increase of 9.4%. For France and the UK, the gains were smaller, with France show‐ ing an increase of 2.7% and the UK 4.7%.

Dataforce suggests that the private market showed only a small average increase in January for the EU top five markets with an increase of 0.5% com‐ pared with January 2014. Spain was the

exception in the private market, which with support from the PIVE scrappage scheme rose 29.9%.

Volkswagen led the true fleet market in the EU top five, followed by Ford and Audi.

Mercedes moved to fourth place with reg‐ istrations increasing by almost 25%. Other strong performers included Opel with a 20.4% increase in sixth place and Nissan with an increase of 33.5% at ninth place.

EU registrations Overall registrations in the EU27 rose by 7.0% to 1,923,484 for January and February 2015, compared with the same period in 2014. The data showed slight growth over the January figures for 2015, but as in January, the growth was not uniform, with a number of countries showing a decline in registra‐ tions so far this year. As already dis‐ cussed, Spain showed strong growth over the first two months of the year, with registrations rising by 26.7% to 154,836. Other countries showing strong growth included Portugal, Ire‐ land and the Czech Republic. Germany recorded the highest number of regis‐ trations in the period, up 4.6% to 434,591, ahead of France, up 5.3% to 280,754.

Austria recorded the largest reduc‐ tion in registrations for the period, with a decline of ‐14.6% to 44,068. Belgium, Denmark, Estonia, Finland and Luxem‐ burg also recorded declining registra‐ tions. The ‐4.1% fall in Belgium saw registrations decline to 91,828.

Volkswagen maintained its position as the best‐selling brand with January/Feb‐ ruary 2015 registrations up 10.2% on 2014 to 243,855. Jeep was the brand to post the individual largest gain for the period with registrations up 192.7% to 11,737, perhaps reflecting the arrival of the Renegade on the European market.

Other large percentage rises included Mitsubishi, up 76.5% to 18,144, Lexus up 41.9% to 4,825, Smart up 40.5% to 13,408 and MINI up 28% to 21,175.

Brands seeing registrations slide included Jaguar, down ‐19.4% to 2,377 and DS down ‐18.8% to 9,899. Lan‐ cia/Chrysler’s drop of ‐7.3% to 11,445 may increase further in the coming months with the news that the brand will pull out of the UK. LMC Automotive launched its global

light vehicle sales forecast for 2015 in January. The company forecast that global light vehicle sales would reach 88.0m units in 2014 and the actual total was slightly less at 87.3m units. Coun‐ tries that posted the largest reductions included Russia, where sales fell to 2.5m, India with 2.9m and Brazil with 3.3m. LMC expects the Chinese market to continue slowing, with the economy expected to grow by 6.8%, down from 7.7% in 2013.

This is expected to result in a Chinese light vehicle market increasing by 5.9% in 2015 to around 24.9m sales. Indica‐ tions so far this year are that the market has risen by nearly 10% year‐on‐year to the end of February.

Last year’s strong performance in the US is expected to lead to an increase of 2.8% in 2015, to a market of around 16.8m light vehicles. February sales rose 5% in February. LMC suggests fac‐ tors include a strengthening US econ‐ omy, longer loan durations and low interest rates.

LMC still expects a small improve‐ ment in Western Europe of 2.8%, giving a market of around 14.1m vehicles, but as we have seen from data so far this year, growth is not uniform across all 28 member States.

Despite an expected continuing small improvement in the Japanese economy in 2015, LMC is predicting a ‐5.6% decline in the light vehicle market there. The squeeze on the Russian econ‐ omy is expected to result in a major recession and a ‐33% fall in the coun‐ try’s light vehicle market. Opel’s recent decision to withdraw from Russia will obviously have an impact.

India continues to look promising and LMC expects the light vehicle mar‐ ket to break through the 3.0m barrier with a 9.9% increase in light vehicle sales this year.

CV sector Europe After the impact of the introduction of Euro 6 emissions regulations on heavy vehicle registrations in 2014, it seems that the CV market in Europe bounced back in January. Data from ACEA shows that the total CV market in January rose 7.6% with France registering the great‐ est number even though the market declined by ‐9.9% year‐on‐year to 28,697 for January, compared with Jan‐ uary 2014. The UK grew by 23.6% for the month to 24,991, while more modest growth put Germany in third place with a 5.5% increase to 21,635.

Light CVs The driver for European registrations growth in the CV sector has been light CVs and the market grew by 7.4% to 117,138 in January. Again the overall view is variable, with a number of smaller markets registering significant increases but from a small base.

Like the overall CV market, France was the light CV leader even though the mar‐ ket was down ‐8.6% year‐on‐year for January to 24,906. By contrast the UK posted a 21.7% increase to 22,049.

Germany experienced modest growth of 1.4% to 15,177. The strong growth in the passenger car market in Spain was repeated in the light CV sector too. Light CV registrations rose 31.2% to 9,025.

Heavy CV registrations were those affected by the Euro 6 change last year and the first indications are that the mar‐ ket is recovering. January data shows an average rise in registrations for vehicles above 3,500kg GVW across the EU 28 of 8.4% to 18,552. Germany was the largest market with registrations rising 22.3% to 4,429. Registrations in France mirrored the reductions in other sectors with a ‐ 21.8% decline to 2,792. The UK took third place with a 58.2% increase in reg‐ istrations to 1,707.

internationalfleetworld.com / 51

SIMPLY CLEVER

I L A E T S

N O I T N E T T A G N

The new ŠKODA Fabia. For your economical and stylish fleet.

The new ŠKODA Fabia will become the highlight of your fleet. And not only thanks to its dynamic design. Its new generation of economical engines will bring you low running costs as well as the great feeling of environmental friendliness. The car’s exceptional spaciousness will ensure comfort for all aboard. Its advanced systems, such as the ESC (Electronic Stability Control) with the multi-collision brake will take care of your maximum safety. In addition, you can choose from an endless variety of exterior and interior colour combinations for complete car customisation.

In convenient: contact us, we will prepare a special offer fi t to your needs. At the same time we will most gladly introduce you to other ŠKODA car models. skoda-auto.com/fleet

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Combined fuel consumption and CO2 emissions for the Fabia model: 3.4–4.8 l/100 km, 88–110 g/km