International Fleet World April 2017 by Fleet World Group

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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet April 2017

8 steps to...

Volkswagen

Successful ï¬&#x201A;eet management

ARTEON Meet the new Mercedes-Benz C-Class, BMW 4 Series and Audi A5 rival

Driven

Fleet Focus

Geneva 2017

Tesla Model X Toyota Prius Kia Rio

Looking at the Spanish fleet market

All the fleet stars of the future internationalfleetworld.com

SAFETY THROUGH INNOVATION THE NEW SEAT LEON ST

TECHNOLOGY TO ENJOY A SOLUTION TAILORED TO YOU If it isn’t safe and easy, it isn’t mobility. And at SEAT, safe and easy comes in a range of features. Like the Kessy Keyless System, Navi System, LED Headlights, ACC up to 210 km/h, Lane Assist, Emergency Assist, Traffic Jam Assist and Pedestrian Protection to make everything safer, and easier. Because everything we do puts you first. So find out more about the SEAT LEON ST, a car designed for your needs; whoever and wherever you are.

NAVI SYSTEM

LANE ASSIST

SEAT FOR BUSINESS

WIRELESS CHARGER

SE AT.COM

Average fuel consumption from 4.1 to 7.2 l/100 km. Average CO2 mass emissions 96 to 164 g/km.

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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

contents

April 2017

8 steps to... Successful fleet management

Volkswagen

ARTEON Meet the new Mercedes-Benz C-Class, BMW 4 Series and Audi A5 contender

Driven

Fleet Focus

Geneva 2017

Tesla Model X Toyota Prius Kia Rio

Looking at the Spanish fleet market

All the fleet stars of the future internationalfleetworld.com

Chairman Jerry Ramsdale jerry@ﬂeetworldgroup.co.uk

13 Geneva’s International Fleet Meeting.

16 Forthcoming WLTP emissions testing.

30 FCA Group’s diverse fleet portfolio.

38 Behind the wheel of Tesla Model X.

Publisher Steve Moody steve@fleetworldgroup.co.uk Editor John Challen john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Content Editor Katie Beck katie@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk

04 Fleet Review Editor John Challen discusses the elephant in the room at Geneva.

Sales Manager Harry Whyte harry@ﬂeetworldgroup.co.uk

06 Fleet in figures Breaking down the latest global vehicle sales by region.

Circulation Tracy Howell tracy@ﬂeetworldgroup.co.uk

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

Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Victoria Arellano victoria@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk

13 Events All the news from the International Fleet Meeting at Geneva. 14 Spotlight An in-depth look at Volkwagen’s premium new Arteon. 16 Feature How the introduction of WLTP emissions testing will impact ﬂeets. 20 Feature Examining the potential of the booming short-term rental market.

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

22 Management White Clarke’s Global Leasing Report reveals positive trends. 24 Feature Simple management tips for a more efficient fleet operation. 26 Fleet Focus Alphabet’s Rocío Carrascosa on Spain’s maturing fleet market. 30 Profile FCA’s expanding range and focus on autonomous technology. 36 Show Report All the key launches from the 2017 Geneva Motor Show.

STAG Publications

To subscribe to Interational Fleet World visit: www.ﬂeetworldsubscriptions.co.uk

38 Launch Report Tesla Model X / Toyota Prius / Mazda CX-5 / Kia Rio.

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fleet review This month, editor John Challen discusses the elephant in the room at Geneva...

Geneva had its usual surprises on the stands and plenty of new metal in the halls, but the biggest story was the one that no-one wanted to talk about...

Changing of the guard As well as previews of the new show cars, news of the acquisition of GM’s Opel and Vauxhall brands by PSA Peugeot Citroën broke on the eve of the first major European auto show of the year. It had already been on the cards for some time with initial conversations confirmed earlier this year, but all of a sudden, the deal was done. To what extent this timing was deliberate remains unclear, although judging by the tight-lipped position adopted by representatives from all four brands (five if you include DS) involved, they probably would’ve preferred the announcement to have been made when the world’s media was NOT on their doorstep! A roundtable discussion with one of the manufacturers involved in the deal started with participants being informed that they could ask questions on any subject, apart from the takeover. Cue a room full of frustrated hacks and (probably) some awkward silences. So no-one was any wiser about how the new business was run, or what affect it could have on the European car

“This [deal] will allow the group to conquer the rest of the world step by step.” Jean-Phillipe Peugeot

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market, as the new organisation becomes the second largest player in the region. But just recently, members of the Peugeot family have since commented with some clarity and reassurance. “This [deal] will allow the group to conquer the rest of the world step by step. This remains an important goal for PSA,” family shareholder, Jean-Phillipe Peugeot is quoted as saying. Robert Peugeot, chairman of PSA Group's strategy committee, added: “All large carmakers have a volume of three million cars in one important market. Opel is strong in markets where PSA is not so strong,” highlighting the fact that that Opel sells more cars in Germany than Peugeot, DS and Citroën combined, while Vauxhall sells more cars in Great Britain than all of PSA's brands together. “There is very little cannibalisation between the brands,” he added. With a millions of new ﬂeet vehicles accounted for by all of the affected brands, the industry will watch with interest to see how the new structure will impact businesses and affect prices. The hopes are for improved service, more competitive products and a more favourable working relationship, but only time will tell…

visit internationalfleetworld.com

ALL-NEW DISCOVERY

IT’LL GET YOU INTO AMAZING PLACES. IT’LL ALSO HELP GET YOU OUT AGAIN.

ALL-TERRAIN PROGRESS CONTROL One of the many innovative features in the All-New Discovery is All-Terrain Progress Control. This manages the engine and brakes, so that the vehicle maintains a comfortable and steady off-road speed automatically. Leaving you to concentrate on steering a path through any far-flung landscape you find yourself in.

LOWER EMISSIONS From 163g/km CO2* HIGHER FUEL ECONOMY Up to 6.2l/100km (45.6mpg) LONGER SERVICE INTERVALS 2 years or 34,000km/21,000 miles

The All-New Discovery is also 480kg lighter than its predecessor, delivering improved fuel economy and a reduction in CO2 emissions by up to 22%. Together with device charging in every seating row, it gives a whole new meaning to ‘working remotely’. landrover.com/fleetandbusiness

Official fuel consumption figures for the All-New Discovery range in l/100km (mpg): Urban 7.2 (39.2) – 14.2 (19.9), Extra urban 5.6 (50.4) – 9.3 (30.4), Combined 6.2 (45.6) – 10.9 (26.0). CO2 emissions g/km: 163 – 254. *159g/km in EU markets 5 seat with Aero wheels and low rolling resistance tyres. Drive responsibly on and off-road.

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fleet in figures

Solid performance from worldwide markets An overall increase in year-on-year sales volumes is achieved thanks to strong performance in Europe, North America and Asia. By John Challen. anuary’s welcome sales performance carried on into February as the global light vehicle market maintained a positive year-on-year momentum, with sales volumes up 7.7%, according to LMC Automotive ﬁgures. In selling rate terms, the global market surpassed 96 million units a year, from an upwardly revised 94 million units a year in January. A strong Chinese market and major sales ﬁgures in Western Europe and the US were the driving forces behind the performance.

North America February 2017 US light vehicle sales totalled 1,332,000 units, which translated into a selling rate of 17.5 million units a year. Fuel prices, while rising slowly, are still perceived as favourable as they are lower from a few years ago and are stable. Consumer conﬁdence continues to rise as stock market indices continually establish new records, with

no expected economic shocks in sight – assuming trade negotiations do not result in a tariff war. Canadian light vehicle sales for February were up 3.2%.

Europe Just as January beneﬁtted from an extra selling day versus the year-ago month, for February 2017, most markets faced one fewer selling day compared to February 2016. The latest result for Western Europe translated into a selling rate of 16.4 million units a year, only slightly lower than the previous month; Italy was the star performer as the light vehicle market there continued its recovery momentum.

China After being disrupted by the Chinese New Year holiday in January, sales in China rebounded strongly in February. The holiday-adjusted February selling rate was 29 million units a year, up 4% from an upwardly revised January. On a year-on-

Baojun 560 The best-selling car in China.

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year basis, sales increased by 7.4% in the ﬁrst two months of this year, which is not a bad result, given that the rate of the temporary tax cut has been halved since the beginning of this year.

Other Asian markets In Japan, sales -in particular those of LCVremained buoyant in February, as a weaker Yen boosted business conﬁdence. After years of weak LCV sales, replacement demand must be picking up, too. Yet, an uncertain global outlook continues to present a major risk to Japan’s economy and vehicle sales. The South Korean market rebounded after a weak January, with the selling rate reaching 1.9 million units a year. Sales in the ﬁrst half of this year are expected to be supported by the ongoing scrappage tax incentive for old diesel vehicles.

South America In Brazil, sales continued to decline yearon-year, amidst the deep recession. While inflation and interest rates are falling, the job market remains depressed, undermining consumer confidence and spending. The economy contracted in Q4 2016 for the eighth consecutive quarter, indicating that the recovery in vehicle sales will take some time. Mirroring an improving economy, the Argentine market maintained a solid pace in February, with the selling rate rising to 770,000 units a year. Falling inflation and easing credit conditions are helping to support consumer spending. Nonetheless, the government’s fiscal austerity measures are likely to continue to constrain the sales recovery in the near term.

For rediscovering life beyond the office INTRODUCING THE NEW VOLVO V90 CROSS COUNTRY Reignite the passions that working life has made your drivers leave behind, with a car created for more than just business. The final addition to our pioneering 90 series, the new V90 Cross Country delivers refined elegance with a rugged, robust edge. Groundbreaking safety, efficiency and connectivity systems provide all the expected executive benefits. But through a wealth of all-road, all-weather features, the spirit of adventure can be effortlessly recaptured to re-energise your drivers. VOLVOCARS.COM/FLEETSALE S INNOVATION MADE BY SWEDEN

Official fuel consumption for the new Volvo V90 Cross Country range in l/100km: Urban 10.4 – 6.1, Extra Urban 6.5 – 4.6, Combined 7.9 – 5.1. CO2 emissions 241 – 120g/km. Fuel consumption figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. Models may vary depending on market.

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NEWS_IFW_Apr17 22/03/2017 11:19 Page 1

manufacturer news

PSA conﬁrms €2.2bn Vauxhall/Opel buyout M’s Vauxhall and Opel business has been GThesold to the PSA Group for €2.2bn. move, announced simultaneously in

Detroit and Paris, will create the second largest automotive company in Europe behind Volkswagen, with a 17% market share and comprising the DS, Citroën, Peugeot, Vauxhall and Opel brands. Announcing the deal, PSA chairman Carlos Tavares said: “We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround. “We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage. We intend to manage PSA and Opel/Vauxhall capitalising on their respective brand identities. Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level.”

Toyota to invest in upgrading UK plant

Renault-Nissan creates LCV business unit he Renault-Nissan Alliance is forming a joint LCV business unit in a move to increase sales and explore new markets. The automakers said the single unit will help with maximising cross-development and cross-manufacturing, technology sharing and cost reduction while still ensuring brand differentiation. “The combination of Renault, Nissan and the early collaboration with Mitsubishi Motors in a single Alliance LCV Business Unit will boost sales and deliver greater synergies,” Alliance chairman and CEO Carlos Ghosn said. “With this move, we plan to expand our market leadership by accelerating our performance in current and new, high-growth markets, based on each company’s core products and market knowledge, and driven by customer needs.”

oyota is investing more than £240m (€276.3m) to upgrade its Burnaston plant in Derbyshire, UK, to enable production of vehicles using its new global platform. The investment programme also includes up to £21.3m (€24.5m) of support from the UK government for training, research and development and further enhancements of the plant’s environmental performance. The carmaker said the investment will improve plant competitiveness and promote UK supply chain eﬃciencies, and forms part of a global programme to upgrade its manufacturing sites to produce vehicles based on the new Toyota New Global Architecture (TNGA) platform. Models already built on the new platform include the new Prius and Prius Plug-in and the CH-R crossover.

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Renault Kangoo was the top-selling model of the Reanult-Nissan Alliance in 2016

NEWS_IFW_Apr17 22/03/2017 11:20 Page 2

For the latest news, visit internationalfleetworld.com

VW Group and Tata to explore strategic alliance in India

fleetinquotes a few soundbites from a month in fleet

CO2 emissions declined. The rate of decline has, however, slowed. With WLTP imminent this is a significant year and it remains to be seen the impact it will have on emissions monitoring.

“ olkswagen Group and Tata Motors have signed a memorandum of understanding to explore a strategic alliance for joint development projects. The plans will explore a long-term partnership on the Indian sub-continent, including jointly developing vehicle components and possibly also vehicle concepts. The project will be led by Skoda and comes as the Volkswagen group looks to expand its product portfolio in the fast-growing emerging markets. Matthias Müller, CEO of Volkswagen AG, said: “Our aim with the envisaged strategic partnership with Tata Motors is to lay the foundations in the Group and the brands that will enable us to offer customer-orientated mobility solutions in the emerging, fast-growing automobile markets, as elsewhere.”

”

Felipe Munoz, global automotive analyst at JATO Dynamics

Order books open for VW Arteon

“

We are very pleased that together, GM, our valued colleagues at Opel/Vauxhall and PSA have created a new opportunity to enhance the long-term performance of our respective companies by building on the success of our prior alliance.

”

Mary Barra, GM’s chairman and CEO

“

olkswagen has started pre-sales of its new Arteon model following its VOrder world premiere at Geneva. books have opened for the two most powerful petrol and diesel engines – the 280hp TSI and a 240hp TDI biturbo – both of which come as standard with DSG dual-clutch gearbox and 4Motion all-wheel drive. Trim levels will cover an entry-level version along with ‘Elegance’ and ‘R-Line’, with a 9.2-inch glass screen and gesture control. Prices in Germany for the launch model start from €49,325 for the TSI and €51,600 for the TDI. See our in-depth Spotlight on pages 18-19.

We have been through demonstrable change in focus and energy during the last 24 months, and our new name reﬂects our ambition to become the leading automotive pricing intelligence provider across Europe – something we are well on course to achieving.

”

Lindsey Roberts, CEO of Autovista Group – formerly EurotaxGlass’s Group

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EVNEWS_IFW_Apr17 22/03/2017 10:25 Page 1

environmental news

Kia debuts two plug-in hybrid models ia will add two new plug-in hybrid models to its line-up later this year, both offering sub-50g/km CO2 emissions. Debuted at the Geneva Motor Show, the Niro and Optima Sportswagon Plug-in Hybrids are scheduled to go on sale in Europe this summer. The Niro crossover version features a 1.6-litre petrol engine paired to a 8.9kWh battery pack – while type approval tests have yet to take place, Kia’s engineers are targeting sub-30g/km CO2 emissions and a range of more than 55km when driven in pure electric mode. As well as offering improved economy and reduced emissions, Kia claims the addition of a plug-in hybrid powertrain has had ‘minimal impact’ on the car’s packaging – installing the battery pack under the boot floor and rear seats has left the cabin unchanged. Technical features of the powertrain include regenerative braking technology to harvest energy and recharge the batteries

Kia Niro PHEV

Kia Optima Sportswagon PHEV

while coasting or braking, and an Eco Driving Assistant which offers coaching on how to drive in the most efficient manner. Unusually for a vehicle such as this, Kia will offer the Niro with a towing pack option, giving the ability to tow braked trailers up to 1,300kg. The second new plug-in hybrid comes in the shape of the Optima Sportswagon, joining the saloon version which is already on sale. Due to arrive in showrooms in the third quarter of 2017, this larger plug-in model pairs a 2.0-litre petrol engine with a 50kW electric motor and 11.26kWh battery pack. With a combined 205hp, the Optima is claimed to deliver a pure electric range of more than 60km with CO2 emissions of 34g/km (echoing the BiK perfomance of the Niro). Both new models will be sold as standard with Kia’s seven-year, 100,000-mile warranty.

Honda reveals plans for 'Electric Vision' onda has outlined its ‘Electric Vision’ for Europe, with the aim of having electrified powertrains in two-thirds of European cars sold by 2025. Speaking at the Geneva Motor Show, Honda Motor Europe’s president and COO, Katsushi Inoue said: “We will leverage Honda’s global R&D resources to accelerate the introduction of a full portfolio of advanced, electrified powertrains for the European customer.” The plans will be spearheaded by a roll-out of hybrid technology across its car range. The first new hybrid model, which will feature Honda’s two-motor hybrid system, will go on sale in 2018. Honda will also make plug-in hybrid, battery electric and hydrogen fuel cell vehicles commercially available to European customers and announced in February that it is to partner with GM on mass producing advanced hydrogen fuel cell systems in the US from 2020. Inoue’s comments came as Honda showcased its Clarity Fuel Cell model at Geneva. Honda has also published a teaser sketch of its Clarity Electric and Plug-in Hybrid models prior to their debut at the New York International Auto Show.

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Honda says the Clarity Electric will be targeted at affordability while the Clarity Plug-in Hybrid will be the volume leader in the series and will bring an all-electric driving range rating in excess of 65km. The Clarity series also features technologies, including Display Audio with Android Auto and Apple CarPlay, and standard Honda Sensing safety and driver assistance technologies.

EVNEWS_IFW_Apr17 22/03/2017 10:24 Page 2

For the latest EV news, visit evfleetworld.com

in brief

Engie to acquire EV-Box rench utility Engie is to acquire Netherlands-based charging specialist EV-Box for an undisclosed amount. Engie said the acquisition would place it in a “unique position to offer customers in all segments, across the globe, innovative, attractive and comprehensive electric vehicle charging and related energy services”. The agreement will see EV-Box remain an autonomous entity and retain its own brand. Kristof Vereenooghe will stay on as CEO of EV-Box, reporting to Thierry Lepercq, executive vice-president research, technologies & innovation at Engie. EV-Box started developing and selling electric vehicle charging solutions in 2010 and recently began extending its geographical reach into Belgium, France, Scandinavia, Germany, the UK and the USA, while remaining present in 20 countries through a network of partners. Engie’s Thierry Lepercq commented: “Engie and EV-Box share a common vision for electric mobility and a conviction that combining our capabilities provides a rare opportunity to create a global, leading electric vehicle charging player uniquely positioned to offer customers very attractive charging and energy solutions.”

EU clears plans for German charging network The European Commission has greenlighted German plans to roll out an EV charging network. The plans would cost a total €300m over four years and would promote the installation of new standard and highspeed charging stations for electric vehicles, as well as the extension of the existing infrastructure.

Networks partner for Open Fast Charging Alliance

Hyundai FE Fuel Cell Concept: more than 800km range

Five European fast charging networks have signed a new agreement that will create an Open Fast Charging Alliance. Planned to start implementation within the year, the deal will enable drivers to use any stations from Fastned, Sodetrel, Smatrics, Grønn Kontakt and GOtthard FASTcharge using bilateral roaming agreements.

Electric Peugeot Partner Tepee set to launch

yundai has previewed its plans for a hydrogen SUV with a new concept presented at the Geneva Motor Show. The FE Fuel Cell Concept forms part of the company’s bid to launch 14 or more new eco models by 2020 and will be used to inﬂuence an SUV Fuel Cell model set for launch in 2018, which will feature ‘Hyundai Smart Sense’ driver assistance technologies, alongside an extensive hydrogen-powered range. The concept showcases the fourth generation of the brand’s hydrogen fuel cell technology, which is 20% lighter with 10% greater eﬃciency than the current generation system used in the Tucson ix35 Fuel Cell. In addition, the power density of the fuel cell stack is increased by 30% – as a result the car is designed to run for more than 800km (497 miles) between refuelling.

in numbers

Peugeot is to launch an electric version of its Partner Tepee MPV, bringing an NEDC range of 170km. On sale in Europe in September, the fiveseater model uses the electric set-up from the Partner Electric van. The line-up includes an optional rapid recharge model, which can recharge to 80% in 30 minutes.

New project to create Austria-wide charging network A new project to create a network of EV charging stations across Austria has begun. It teams up 11 state energy suppliers with the Hubject GmbH platform to provide 2,000 charge points by the end of 2017.

26g/km CO2 output of Hyundai Ioniq Plug-in unveiled at Geneva

354hp Total system power of hybrid powertrain in new Lexus LS 500h

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business news

ALD appoints new deputy CEO LD Automotive has named Gilles Bellemere as deputy chief executive officer, with immediate effect. Mr Bellemere joined Societe Generale in 1987 and was appointed as director of operations at ALD Automotive France in 2001 before becoming its deputy chief executive officer in 2006. Since 2014, he has held the role of regional director of Société Générale’s French retail banking network. He replaces Pascal Serres, who moves to parent firm Société Générale. The appointment comes as ALD Automotive reports its 2016 results, which saw fleet growth of +14% with approximately 1.4 million vehicles managed worldwide. Total income last year was up +6.1 to €1.24bn.

Fleetcompetence Group expands fleet consulting team obias Kern has joined the fleetcompetence Group as it expands its international network of specialised fleet consulting experts. Kern, a fleet consulting specialist, becomes managing partner for the international fleet consulting business and will be in charge of leading and expanding the business within the group. Kern brings over a decade’s experience in the automotive industry, including international positions at a vehicle manufacturer, fleet management providers and consulting companies. He is also the lecturer at the University of Applied Sciences Sankt Gallen for ‘Fleet and Mobility Management’.

LeasePlan names Zagorianakos head of Central Eastern Europe easePlan has appointed Philippos Zagorianakos – currently managing director of LeasePlan Hellas – as head of the Central Eastern Europe region of the group. Zagorianakos will be responsible for the markets of Ireland, Poland, Russia, Turkey, Hungary, Slovakia, Romania, Czech Republic and the United Arab Emirates as well as retaining his current duties.

Hertz partners with Blacklane for chauffeur services ertz is to launch a new chauffeur service in more than 50 countries under a new partnership with global professional driver service provider, Blacklane. Hertz Driver Services will offer the option to book airport transfers, limousines and chauffeur services at competitive rates with professional, insured drivers. Initially, the services will be available via Hertz websites and a customer service telephone number to customers in Belgium, Czech Republic, France, Germany, Italy, Luxemburg, Netherlands, Spain and the UK before being rolled out internationally to a total of 50 countries.

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in brief Safo Group acquires UK’s TR Fleet Italy-based fines management and automotive IT specialist Safo Group has taken a 75% share in TR Fleet. The acquisition will see Safo further develop TR Fleet’s ‘DriveSecure’ grey fleet compliance software package and market it throughout Europe.

JLR invests in new design and engineering centre Jaguar Land Rover has begun construction work on a £200m (€230m) redevelopment of its design and engineering centre at Gaydon in Warwickshire in the UK. The new development will centralise the brands’ design, product engineering and purchasing functions.

Former senior Ericsson executive appointed Tantalum CEO Telematics specialist Tantalum Corporation has appointed former Ericsson CEO Ozgur Tohumcu as CEO. Current CEO, Cédriane de Boucaud Truell becomes president, while also remaining on the Board as a key investor director.

PSA reveals real-world fuel consumption data PSA Group has published online certified calculations of real-world fuel consumption for more than 1,000 versions of Peugeot, Citroën and DS vehicles. The figures can be found on the brands’ respective country websites under the Technology sections.

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2017

Geneva hosts international community The 2017 International Fleet Meeting drew the great and the good to the Geneva Motor Show and IFW was there. oncentrating on concepts for international fleet management, the fourth International Fleet Meeting took place during the Geneva Motor Show, with speakers including Markus A Falk, vice president, head of global car fleet, global procurement organisation SAP SE; and Jürgen Freitag, head of global commodity fleet, Siemens Falk drew attention to the opportunities and challenges that the world's largest provider of business software had to cope with when outsourcing the vehicle fleet. According to him, this situation is about so much more than merely managing the vehicles of SAP which operates in more than 20 countries. Administrative, legal, commercial, or sustainable aspects had also to be arranged for with external service providers. Freitag also explained his company's sustainability issues. The German technology company is committed to reducing the CO2 emissions across its 50,000-strong fleet by 30% in the next few years and by 2030, aims to become CO2-neutral. For this purpose, a global strategy was developed in nine months, which, in addition to guidelines, also includes strict controlling. Freitag pointed out explicitly that, despite the global strategy, national characteristics must always be taken into account.

Questions for the panel Following the two main speakers a panel discussion was chaired by IFW’s Anne Dopson, where Paul Verkinderen, Chevin Solutions’ VP Europe and Africa, emphasised the importance of global reporting in order to harmonise national strategies on an international level. According to his findings, many companies still work on Excel spreadsheets. Elsewhere in the conversation, Harald van Meel, head of international key account management at Volkswagen Financial Services AG drew attention to the fact that the added value of the car manufacturer comes from the synergies between manufacturers, leasing companies and the dealer network. He also pointed out that, for example, Volkswagen now offers comprehensive mobility services in the Netherlands – in addition to leasing, car-sharing, public transport and even the rental of e-bicycles. Vinzenz Pflanz, chief sales officer of Sixt Leasing SE, explained that the maturity of fleet management services in Europe between the north-west and south-east is decreasing severely. According to Pflanz the most comprehensive range of services is available in Great Britain. He sees three great advantages in working with an external fleet manager: taking over the operational activities, providing a global fleet reporting and, in the future, increasing monitoring of the driving behaviour.

Forum biznesowe

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SPOTLIGHT_VWArteon_IFW_Apr17_Layout 1 22/03/2017 11:50 Page 1

SPOTLIGHT Volkswagen Arteon

Premium economy Positioned above its Passat, Volkswagen believes the Arteon will provide major competition to the fleet customers currently in a BMW 4 Series or Audi A5. John Challen takes a look around the new class contender. A new frontier Wind the clock back two years and the origins of the Arteon can be found in the Sports Coupé Concept GTE from the Geneva 2015 show. Some 24 months later the covers were lifted off the production model at the same show. According to Volkswagen’s design boss, Klaus Bischoff, the new Arteon “combines the design elements of a classic sports car with the elegance and space of a fastback.” As well as a more upmarket feel than your average Volkswagen model, the German manufacturer has ensured ample legroom in the new ﬁve-door model.

Volkswagen on a charge The new Arteon debuts with a range of six turbocharged four cylinder direct injection engines. Entry level diesel and petrol units have the same output (150hp) and next in the range are 190hp engines for both fuels. The most powerful TSI engine delivers 280hp, while the top of the range oilburner is 240hp. The base petrol engine, the 1.5 TSI Evo, is a new design and thanks to such features as Active Cylinder Management (ACT) it is exceptionally efficient.

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SPOTLIGHT_VWArteon_IFW_Apr17_Layout 1 22/03/2017 11:51 Page 2

Arteon’s advanced technology As you’d expect, the new premium model means specification levels are improved, with new or revised versions of current technology making their debut on the car. These include: adaptive cruise control; emergency assist; lane assist; predictive cornering ; proactive occupant protection (PreCrash); side assist and sign assist. New infotainment systems – with screens ranging from 6.5in to 9.2in2 – form part of a ‘digital cockpit environment. Elements include a head-up display, gesture control and digitised instruments.

What we think...

FLEET FACT A 2-litre TDI Arteon claims 5.9l/100km and 152g/km of CO2.

BMW and Audi already had a premium element when they launched the 4 Series and A5 respectively, but both models have proved very popular. Volkswagen is keen to get in on the act, but comes at it from a slightly different background, with its cars perceived as more conservative. A sensible range of engine options should appeal to a lot of business customers. JC

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FEATURE_FuelMgt_IFW_Apr17_Layout 1 22/03/2017 11:53 Page 1

FEATURE Fuel Management

The RDE test will utilise a Portable Emissions Measuring System (PEMS) similar to the equipment used by independent company Emissions Analytics (pictured), which has carried out on-road testing since 2011.

REALITY

CHECK A new testing regime is being introduced later this year aimed at providing a more accurate reﬂection of a car’s fuel economy and emission. Julian Kirk ﬁnds out what’s in store. ithin the next two months the European Parliament will vote to finalise the structure of a new way of assessing and monitoring fuel economy claims and emissions from new cars – ushering in two new acronyms which will soon become common among fleet operators. The first is WLTP, or Worldwide Harmonised Light Vehicle Test Procedure, and the second is RDE – Real Driving Emissions. Both will result in what is claimed will be far more representative figures for a car’s average fuel economy performance, and exhaust emissions.

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WLTP replaces the Europe-wide NEDC test which is currently applied to all vehicles. Now widely discredited independent on-road testing by Emissions Analytics has shown fuel consumption is underestimated by around 30% – NEDC will morph into WLTP from September. It will run alongside the RDE test which will complement laboratory tests by measuring pollutant emissions in real conditions on the road. The WLTP test aims to offer a more representative fuel economy figure thanks to differences in the testing

regime. Firstly, it will take into account optional equipment fitted to cars, such as bigger alloy wheels, lower suspension, etc. Although the tests are still conducted in a laboratory, they include higher speeds which are more representative of real-world driving, and it will also feature more aggressive braking and acceleration. However, the EU warns that “even though WLTP will be more accurate, it will not cover all the variations globally – and certainly not each individual driving style. There will, therefore, still be a difference between emissions meas-

FEATURE_FuelMgt_IFW_Apr17_Layout 1 22/03/2017 11:53 Page 2

ured in lab conditions and the real world, as driving behaviour, traffic and weather conditions will continue to differ from one country to another”. So while the new fuel economy tests will be representative for now, the RDE test could have the bigger impact on the fleet market. Its more accurate emissions data, could form the basis of more stringent motoring-based taxes in the future – potentially tying in with the Euro VII regulations pencilled in to launch alongside the new Benefit-inKind mechanism post-2020. The eventual transition to WLTP could cause confusion, too, according to Phil Stones, chief engineer, powertrain at Millbrook Proving Ground in the UK: “There’s going to be a time where you’ll have two identical vehicles that are a model year apart, that could have completely different CO2 and fuel consumption figures just because they’ve been approved over different drive cycles,” he says. “In terms of fuel consumption and what the end-user gets, it will make no difference, but if a vehicle is tested over a different cycle and gets a different CO2, that’s what it’ll be declared with. The exact same vehicle could, by default, fall into a higher tax band.” This, coupled with issues of generating ever more data on vehicles, is causing concern among the fleet industry. The BVRLA points to the extra work which will be generated for its leasing company members, who will have to expand their systems in order to accept the additional data that is being provided by their suppliers – for example, an NEDC figure and a WLTP figure as well as additional entries for cars fitted with optional equipment such as larger alloy wheels. A BVRLA spokesman said: “The process of quoting prices to customers may become more complicated as it will need to take into account the impact upon emissions of optional extras, such as roof racks.” Matt Freeman, managing consultant at cap hpi, agrees: “The new testing regime has wide-ranging impacts across the supply chain. We have been engaging with manufacturers to understand their current position about generating the new WLTP data. The majority are working through the

requirements with their head offices in Europe, and this information will then be shared with the UK.” The RDE test also has the potential to disrupt the new car market because in a bid to reduce pollutants such as NOx, most diesel vehicles will be required to have selective catalytic reduction systems installed – essentially AdBlue tanks to filter exhaust emissions. This will lead to increased costs and the potential to see smaller diesel models disappear because of cost and packaging issues (AdBlue tanks typically being around 10 litres). Indeed, both Volkswagen and Renault have intimated that small-capacity diesels will not be financially viable within the next few years. The new WLTP test may also result in reduced economy claims for vehicles such as plug-in hybrids, by potentially factoring in mileage completed on the electric motor.

“The new testing regime has wide-ranging impacts across the supply chain.” Matt Freeman, managing consultant, cap hpi

WLTP vs NEDC: KEY DIFFERENCES • • • • •

WLTP test is 30 minutes – 10 minutes longer. Proportion of time at a standstill is reduced from 25% to 13%. The length of the test cycle increases from 11km to 23.5km. Average speed is now 46.6km/h – up from 34km/h. Additional EU test involves running the test at a lower temperature (14ºC).

• WLTP takes into account the eﬀect of weight, aerodynamics and rolling resistance of optional equipment ﬁtted, such as bigger tyres.

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FEATURE_FuelMgt_IFW_Apr17_Layout 1 22/03/2017 11:54 Page 3

FEATURE Fuel Management

→ RESULTS Vauxhall and Volkswagen are among the earliest manufacturers to release indicative data of fuel economy under WLTP conditions.

e’re yet to see any official results from the WLTP testing programme, but some manufacturers have already issued some advance data based on simulations running the new testing protocols. Tests by Vauxhall comparing NEDC and WLTP results show some marked differences. An Astra 1.4 100PS petrol manual recorded figures ranging from 7.5l/100km to 4.2l/100km on the NEDC test, falling to 9l/100km to 5.4l/100km on the WLTP cycle. On the diesel side, an Astra 1.6 CDTi 110PS manual returned 4.2-3.3l/100km on the NEDC and 6.4-4.3l/100km on the WLTP. Elsewhere, and indicative of the trend, data for the new Volkswagen Golf shows increased emissions and lower fuel economy for some versions – the new GTD hatchback, for instance, has seen claimed average fuel consumption to increase from 4.4l/100km to 4.7l/100km – this is down to Volkswagen taking a decision in the wake of Dieselgate to not ‘push the limits’ in terms of economy testing. In the course of the development of WLTP, the Joint Research Centre (JRC) of the European Commission has tested 21 petrol and diesel vehicles, on both the current European type approval test procedure (NEDC) and the progressive versions of the WLTP. The results (which should viewed as an initial indication) showed minimal average differences between CO2 emissions over the NEDC and WLTP tests. However, CO2 emissions measured on the WLTP were on average 9% higher than the respective type approval values,

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therefore suggesting that for the tested vehicles, CO2 emissions over WLTP were almost 10% higher than the respective NEDC type approval values. That difference is likely to increase with application of the full test procedure. This ties in with the thinking at Arval – its fleet consultant David Nicholas (pictured below) said: “We expect to see official l/100km figures increase, while CO2 ratings will also increase. However, until we see any real comparison data from manufacturers, we do not know for definite the extent of this. It’s also likely that the difference between the two testing programmes will impact individual models in different ways. “From an operator’s perspective,

assuming the new figures reflect real life more accurately, they will provide greater insight into the potential wholelife cost of a vehicle prior to purchase and will make fuel management a much more refined and accurate process in terms of individual driver and vehicle performance.”

“We expect to see oﬃcial l/100km figures increase, while CO2 ratings will also increase.” David Nicholas, Arval

TIME FRAME April 2017: European Parliament to vote on type approval reform. Mid-2017: EU to ﬁnalise legislation on RDE test. September 2017: WLTP and RDE to be applied to all new types of car being launched. September 2018: WLTP to be applied to all new cars registered. September 2019: RDE to be applied to all new cars registered. 2020: Current beneﬁt-in-kind tax system expires. Potential introduction of Euro VII emissions regulations.

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MANAGEMENT Short-term Rental

The long and short of it More and more options appearing of how to acquire a car, the rental market is booming. Johan Verbois , managing partner at 5S Consulting, looks in detail at the growth – and potential – of short-term rental. n the automotive industry, most data and analysis is focused on the true fleet and the leasing markets. Only rarely does the short-term rental market merit some attention. Is that because of the labelling confusion? I have become used to hearing the same market being described as STR (shortterm rental), RAC (rent-a-car), SDH (self-drive-hire) or just rental. Which one do I use when I visit a car manufacturer? STR seems to work best, so let’s stick with that. In 2016, the STR market in Europe generated close to 1.4 million new vehicle registrations, which was an all-time high. We would have to go back nearly a decade for the previous record: 1.3 million, in 2008 – before the start of the financial crisis. As consumers cut back on holidays and businesses slashed – or even completely cut – travel expenditure, that figure fell below 900k in 2009. Recovery took its time. Only in the last three years, with an average of 100k units added annually, has the STR market regained its pre-crisis bounce.

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European registrations For more than a decade, Germany has consistently been the biggest STR market in Europe, with 350k new registrations in 2016. The UK was second, with 240k units, closely followed by France and Spain, each with over 200k registrations. Spain was last year’s biggest grower, thanks in part to tourists returning to the ‘Costas’ out of a

growing sense of unease about the security of popular destinations in Egypt, Turkey and Tunisia. Of all European markets, Spain has always had the highest share of STR registrations in the overall total. For the previous few years, private sales share had been growing faster, but last year the STR share grew again, to almost

FEATURE_Rental_IFW_Apr17_Layout 1 22/03/2017 11:29 Page 2

18%. Needless to say that this share increases dramatically in tourist hot spots like the Balearic or Canary Islands, where the average STR share is 40%, and in some months even exceeds 60%. If you rent a car in Spain, you’ll most likely take it for a cruise along the country’s beautiful coasts. That is why the Spanish STR market is dominated by ‘small’ and ‘mini’ vehicles – most (but not all!) car manufacturers’ call these the A and B segments. Together, they account for about 40% of the total STR fleet, not just in Spain, but also in Italy and France. In most other countries, including in the UK, Germany, the Nordics and Eastern Europe, the compact cars are the centre of gravity for the STR market. In these countries, business travellers represent a proportionally larger segment of the customer mix, hence the preference for compacts. Taking a look at the brands, we see some interesting European trends, revealing strengths, weaknesses and strategy shifts. Up to 2010, Ford was the main STR brand. Then the brand decided to cut 20% of its STR volume, and it has been at that level ever since. Which is why Volkswagen has had the highest STR volume for the last six years, averaging 150k per year and on the rise over the last three years. Mercedes is the leading premium brand in the STR ranking, before Audi and BMW. RVs for STRs About 20% of my consulting work for car manufacturers focuses on Residual Value strategies. Manufacturers often ask me what would be the ideal share of STRs in the overall sales mix in order to generate the best RVs. At a recent webinar, I heard an expert propose 5% as the maximum. But if that were true, no more than one of Europe’s Top 15 brands would qualify. Personally, what I think is more important is how manufacturers manage used-car flow when the STR fleet comes offline. I have more confidence in some brands that have 10% STRs in their sales mix than in others that have only half of that. There are a handful of measures that can make a hell of a difference in managing STRs (and their RVs) as a part of the overall mix. These are: managing the diversity of your offer, motivating the dealer network, securing the right spread in time, having flexible contracts, using

Market leader... In the short-term rental market, Mercedes-Benz is the leading premium brand.

an omni-channel approach, and managing used-car pricing. However, they are very hard to manage seamlessly. Pressure to hit sales targets and other objectives is never far away, and Residual Value – because its effect only kicks in at the end of the life-cycle – is a hard argument to sell at the start of that life-cycle. You can see this clearly when looking at registrations per brand, month and country. Everywhere and always, there is someone who needs these last units at the end of a certain quarter or the (fiscal) year. Not a problem, of course – as long as the process is well planned and the de-fleet period is appropriate. Hybrid/electric STRs? When it comes to alternative powertrains, STR fleets nor their customers are early adopters. In true fleet and private sales, the various forms of nontraditional motorisations – EV, hybrid, PHEV, CNG, LPG – are approaching 5%. In the STR segment, they are still stuck at 1.8%. Even hybrid and PHEV, the least challenging technologies from a customer point of view, generate uncertainty. Disregarding the higher ticket price, integrating these cars into your STR fleet means additional staff training, more time needed for explanation and at hand-overs, etc. All of this generates extra costs, and in a sector that greatly values and rewards efficiency, charging these costs to the consumers could fatally reduce competitiveness.

In recent years, we have been witnessing a shift in the role of STR companies. Previously, brands saw them primarily as a sales and registration opportunity. But more and more brands are now using them as strategic supports for their launch activities. They dedicate substantial portions of their launch volume specifically to STR, in combination with advertising. The result, for example: new models displayed prominently by rental agencies in the Arrivals area at airports. Other brands however, use STR to a bigger extent at the end of the life-cycle. Whichever the strategic choice: as the STR market continues to emerge from its post-crisis slump and move to new all-time records in the years to come, it is certain that manufacturers will put more emphasis on their STR strategies. And opinion and analysis pieces on STR, like this one, will become less rare… • Data in this article is based on Dataforce, a leading company in providing data transparancy in the International fleet market. www.dataforce.de

“More and more manufacturers are now using short-term rental companies as strategic supports for their launch activities.”

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FEATURE_Op Leasing_IFW_Apr17_Layout 1 22/03/2017 15:55 Page 1

MANAGEMENT Leasing Market

Global leasing industry set to thrive A new report states that the leasing industry is in rude health and predicts further growth in the future. hile big corporations are well aware of the advantages and drawbacks of operational leasing – often referred to as contract hire or full-service leasing if it is provided with a comprehensive package of support services – this is not necessarily the case so far as small to medium-enterprises (SMEs) are concerned. As a consequence its pene-

tration of SMEs in some countries is surprisingly low. For the fifth consecutive year since the global economic crisis, the global equipment leasing industry maintained an optimistic outlook and experienced growth in new business volumes in 2015. The top 50 countries, according to the new White Clarke Group Global Leasing Report – published in association with

“Europe accounts for 33.2% of world volume and five European countries feature in the world’s top 10 countries for new business.”

the World Leasing Yearbook – reported growth in new business volume of 6.5%, from US$994.31 billion in 2014 to more than US$1 trillion in 2015. Three regions, North America, Europe and Asia, account for more than 90% of total world volume. North America The North American region maintained its position as the world’s largest market, with new business volume of US$407.8 billion in 2015. It has now increased its share of the total global market in equipment leasing to 42.1%. The US is the dominant player of the region, and is the largest single market in the world. In 2015, new business volume was US$374 billion, 15% greater than the subsequent largest region (Europe with US$322.8 billion). Canada reported sales volume of US$26.21 billion and modest growth of 3.4%, which was impacted upon by the collapse of oil prices in 2014. Mexico experienced growth of 32% and new business volume of US$7.19 billion showing the solid development of the leasing industry in that region. Europe Europe accounts for 33.2% of world volume and five European countries feature in the world’s top 10 countries for new business, contributing 68% of the total volume. The UK and Germany are positioned as the third and fourth largest leasing markets in the world and remain the dominant players in Europe. Jointly they accounted for 46.9% of the European market and 15.6% of the world market. This performance was aided by the healthy performance of the

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FEATURE_Op Leasing_IFW_Apr17_Layout 1 21/03/2017 14:15 Page 2

Figure 2

Volume of leasing in North America, Europe & Asia 1995 - 2015

Annual leasing volume in US$bn 450

N. America 400

350

300

Europe

250

200 Asia 150

100

0 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Source: White Clarke Group Global Leasing Report and World Leasing Yearbook. No information may be reproduced without the prior permission of White Clarke Group and World Leasing Yearbook.

UK economy with GDP growth of 3.02% and Germany at 1.71%. In 2015, the UK leasing industry captured US$87.13 billion in new business volume, leading to another rate of growth of 14% compared with the previous year and positioning it in a strong third position after the US and China. The IT equipment market reported the largest rate of growth in the UK, around 38%, followed by commercial vehicle and car finance segments which also experienced double-digit growth. Overall, the UK market has demonstrated stability and efficiency when it comes to asset financing and leasing. The second largest European market is Germany with a growth of 8.42% (in local currency) in comparison to 2014 and with new business volume of US$63.84 billion. The German leasing sector is one of the most mature in the world, and hire purchase stills plays a secondary role accounting for only 13% of equipment finance compared to finance leasing of 48% and operating leasing of 39%. In 2015 the share of leasing as a financing tool for investment became larger and the equipment and construction industries adopted leasing more frequently.

Global trends show increases in leasing volumes from 1995 to 2015 France secured the sixth place in the Global Leasing Report rankings, with new business volume of US$30.92 billion and growth of 10%. This growth was mainly facilitated by low inflation and high household consumption, which led to a greater investment in leasing assets. Most of the central and eastern European countries reported low or negative growth (i.e. Ukraine, Russia, Serbia and Estonia). The Russian leasing market was affected by the bank lending rates, and experienced a decline in growth of –20%. Asia New business volume in Asia increased by 14.4% in 2015 and takes a 22.2% share of the world market (around US$223 billion), up from last year when the market volume for Asia was 20.6%. The Chinese leasing industry has positioned itself as the second largest market in the world for asset finance through leasing and hire purchase, despite experiencing the lowest growth in GDP for the past 25 years. The infrastructure and the manufacturing sectors

have traditionally dominated the leasing market, but in recent years the car industry has gained market share. The Japanese leasing market recovered (-17% in 2014) and experienced an increase of 9% in 2015. New business volume increased from US$55 billion to US$60.84 billion, a growth favoured by the Abe administration’s ‘Japan Revitalization Strategy’ introduced in 2013 where leasing became an instrument to promote technology. The third biggest leasing market in Asia is Korea and it is ranked 13th in the world achieving an increase in new business volume of 8% in 2015 to US$11.39bn. Rest of the world Four countries in Africa (Egypt, Nigeria, Morocco and South Africa), five countries in Latin America (Argentina, Brazil, Chile, Colombia and Peru) plus Australia and New Zealand make up the remainder of the top 50 for 2015. The complete White Clarke Global Leasing Report is published in World Leasing Yearbook 2017.

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FEATURE Fleet Management

steps to... Successful fleet management

Changing the way you think – and ditching the bad habits – could be the key to improving your business. hen it comes to the average worker – regardless of what they say – there is a lot of unused potential. The key is working out how to unlock this potential and becoming more effective. For fleet managers overseeing complex fleet operations on a daily basis, the potential to manage your fleet effectively while growing your bottom line is huge. There are a number of habits that can make for highly effective fleet managers. These best practices, when applied appropriately, can really make a difference to a company’s bottom line and the overall safety of the workforce. Taking lessons from customers around the world as well as fleet professionals, here’s a list of principles that are pretty much guaranteed to improve fleet operations.

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Act, don’t react, when it comes to fleet safety With the many distractions and safety hazards for drivers, it is always a good idea to get ahead of any potential problems. By waiting until an accident or near miss, a company and employees could pay dearly. The cost of a hands-free device, driver behavior monitoring app or in-cab camera may seem unnecessary, but in relative terms it can be extremely cost-effective – the alternative is always going to be more expensive. Be proactive by understanding what your drivers are doing when you’re not looking.

Fleet MGT_IFW_Apr17_Layout 1 21/03/2017 14:18 Page 2

“Best practices, when applied appropriately, can really make a diﬀerence to a company’s bottom line and the overall safety of the workforce.”

Make maintenance management easy Referring back to the opening comments, people are inherently lazy. If you want drivers to keep up with routine vehicle service and maintenance, you need to make inspections, scheduling and reporting as effortless as possible. It’s not unusual to see whiteboards, handwritten notes and file folders used to keep fleets on schedule. Cloud-based fleet management software with mobile accessibility and automated features like service reminders are the key to a successful vehicle maintenance programme. Simplify maintenance management by making it mobile, automated and accessible by anyone you want on your team. Set guidelines for vehicle purchasing and disposal Consistency is key. Without purchasing guidelines, personnel from varying departments and locations may buy vehicles as needed and keep them for as long as they see fit. Without bulk purchasing and insight into the right time/mileage for selling vehicles, your company could be haemorrhaging money. Take the time to spec out vehicle options to meet the requirements of your fleet and put a purchasing plan in place. You should aim to optimise vehicle replacement.

Set goals and expectations for driver performance Some fleet managers incentivise drivers for doing a good job – whether this be for achieving high fuel efficiency, performing vehicle inspections regularly or exhibiting high driving performance. While this may not work for everyone, you should always hold your drivers to a performance standard. The potential fuel savings for better driving habits and a well running vehicle can really add up across an entire fleet. With driver behaviour monitoring, it’s even easier to promote safe driving habits. Create actionable goals for your drivers to inspire safer, more responsible driving habits.

Measure everything that matters Metrics are important – they can help monitor progress, but they can also become a bunch of numbers if they aren’t measuring anything useful. In order to be on top of your fleet operations, you need to make sure you’re measuring well. After all, how can you improve upon something when you don’t know the starting point? A few metrics that give solid insight into vehicle performance and fleet performance overall include cost per mile, total cost trend and operating cost summary. In other words, monitor and measure specific data that directly impacts your fleet. Document everything digitally Ditch your file folders. In the world of cheap online storage, there are no excuses for not knowing where your fleet information is stored. Invoices, work orders, receipts, photos, employee records, product manuals and more can be kept in one central digital location and accessed from any internetconnected device. It’s time to join the modern era of fleet management. Move your fleet documents to the Cloud and find your fleet information instantly.

Constantly educate yourself about industry advances The fleet industry is constantly changing – it’s important to keep up. Join an industry association, read industry publications and news and keep up with what is happening in vehicle technology. Everything you need to be a fleet management expert is right at your fingertips.

Don’t be afraid to adopt new ﬂeet technology Alternative fuels, once seen as a long shot, may actually be within reach and cost-effective for your fleet. The same goes for vehicle technology where if you have accurate data for your vehicles, you can make educated decisions about payback on investments.

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FLEET FOCUS Spain

Spain set for market maturity As it aims to build on year-on-year growth figures, Spain must continue to meet the ever-increasing demands of its fleet and business car customers. Alphabet España’s CEO, Rocío Carrascosa, explains how this will be possible.

he rental market in Spain is evolving rapidly. The focus on the vehicle is losing relevance, as users demand different mobility solutions according to their needs at any given time. We are faced with the challenge to digitise our services and adapt to a world where vehicles are connected, vehicles will be shared, and urban mobility will be electric. At Alphabet, we are not unfamiliar with these changes and we are adapting to this transformation process. We believe that those remaining in the traditional renting formulas will lose market share, and the companies of the sector will become comprehensive managers of the mobility of our clients, who right now are demanding efficient mobility, costs saving and sustainability. For this reason, the renting companies must keep making progress in developing our services and products portfolio to offer a more economic service with more benefits, always adapted to the needs of our clients. Products such as AlphaCity, which allows to share an electric car among different drivers, our electric vehicle solution AlphaElectric, or the renting of motorcycles are a good example of this progress.

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KEEPING UP WITH THE NEIGHBOURS The Spanish rental market is still less mature than other European markets such as the Netherlands or the UK, where this market has been traditionally seen as a simple form of financing, being indeed a product of frequent demand. Regarding the Spanish market, even though it has not still reached the penetration of those countries, rental has evolved as a more complex and more complete product, offering many added features such as workshop appointments, full maintenance and many more services. Currently, we are moving in a fleet of more than 490,000 units, but we still have a long way to go for the next years, especially given the number of SMEs that are still unaware of the advantages of renting. SPANISH RENTAL SIZE During 2016, the rental sector invoiced €4,342 million, with a total fleet of 491,337 vehicles. During the year, the rental sector registered 203,548 units. Regarding total registrations, in the period from January to November, the market grew at a pace of the 11%, with a volume already exceeding a million units, specifically, 1,318,547 registrations.

FLEET FOCUS_Spain_Apr17_Layout 1 22/03/2017 10:53 Page 2

The Volkswagen Passat (right) and Nissan Qashqai (below) are popular rental choices in Spain.

It is worth highlighting that the companies channel continues showing a strong dynamism due to the fleets renewal, as a consequence of a greater economic activity. In 2016, this channel already represented the 31% of the total registrations. This momentum, jointly with the commercial offers of the brands, has allowed to keep the growth of the market as a whole, compensating the slowdown of the private parties channel. SCRAPPING THE SCRAPPAGE SCHEME For the recently concluded PIVE 8 scrappage scheme, â&#x201A;Ź225 million was used to boost the renewal of the transport fleets, one of the most efficient measures for energy consumption reduction. Since this initiative has finished there has been a bit of a cooling off period within the private parties channel, with just 3.9% growth. In Alphabet, we agree with the creation of plans and incentives helping the rental sector. In this regard, we believe that it has been well understood the great importance of the automobile as a growing sector and also in terms of employment generation.

the current regulation (invoicing, temporary imputation, correlation with income and accounting). The electric vehicle is already a reality in our country. Despite representing a minimum percentage of the vehicle fleet in Spain (0.5%), the demand for electric vehicles is growing year after year. According to the III Radiography of Spaniards Mobility Habits, more than 64% of the citizens believe that the electric vehicle is the ideal solution for mobility in the cities. In fact, the 82% of the interviewees at national level would like to use an electric vehicle, even though they have never used one, 10% more than in 2015, especially men between 18 and 30 years.

FLEET FAVOURITES The brands registering most rental operations are, in order: Renault, Volkswagen, Peugeot, Ford, and Opel. Regarding the most popular models, these would be the Seat Leon and Renault Kangoo. The next most-demanded models are Nissan Qashqai and the Passat and Golf from Volkswagen. Compared with taxation of private cars, renting has very interesting advantages for companies and self-employed individuals. The rental share is deductible to the 100%, provided that it can be justified that the vehicle is a necessary investment for the development of a business activity and if it complies with all other requirements provided by

CLEAN LIVING Even though there are still certain barriers preventing the penetration of this vehicle from being greater, the cities are increasingly demanding less polluting vehicles, which is helping to position the electronic vehicle as a sustainable solution. In addition to environmental awareness, money saving is also an important plus point of electric vehicles. According to the ANFAC (Spanish Association of Vehicles Manufacturers), in the European Union the sales of electric and hybrids plug-in cars have doubled every year since 2010, and in Spain, the growth speed of electric vehicles is 15 times higher than the one hybrids had when they first appeared. The projections are that, in 2040, 35% of vehicles will be electric. And it is worth highlighting that the companies are the ones particularly betting on this type of mobility (growth in companies has been of 138%), and, besides, they are betting on renting to hire them (registrations in renting have grown 300% so far, this year). TO RENT OR LEASE? Looking at the split between rental and leasing services, the Spanish rental market is still maturing, offering more and more solutions that adapt to the specific requirements of a market demanding a more complex product than a simple financing of the vehicle. Even though renting does not cease to grow every year, according to data as of February 2017, renting represents 16.8% of the total vehicles market in Spain, with a growing trend.

internationalďŹ&#x201A;eetworld.com / 27

â&#x2020;&#x2019;

FLEET FOCUS_Spain_Apr17_Layout 1 22/03/2017 10:53 Page 3

FLEET FOCUS Spain

Spain’s positive February Registrations top 100,000 units and big year-on-year improvements.

→

pain has continued with positive numbers for February 2017. The passenger car total market managed 102,000 registrations which produced a 1.6% growth for the month on month comparison and as we looked into the market segmentation, it was True Fleet showing the best growth rate. True Fleet delivered + 8.9% and inside the Top 10 manufacturers there were some good results from Renault, BMW and Opel. Renault pushed into second place achieving a + 38.3%, helped by good results from the Clio and Megane. BMW jumped three places into fifth with 15.5% growth expansion which was powered predominantly by the X1, and Opel entered the Top 10 in 10th showing a 26.1% increase with the Astra and Mokka as the biggest contributors. Looking deeper into True Fleet with a focus on fuel type we have seen some interesting activity. Since 2013 we have seen a reasonably steady volume increase for True Fleet with diesel the number one fuel type of choice. This does however mask somewhat the steady drop of market share from a high of 86.0% to a low in December 2016 of 77.6%. Obviously we have seen increases from alternative fuels as more manufacturers enter the space but it is the petrol share that is growing fastest. As we added vehicle segment to the analysis it was surprising to see that SUV is growing into one of the biggest contributors and not the obvious choice of mini, small and compact cars with them being smaller, lighter and perhaps offering the best size vehicles for maximum fuel economy. SUV has claimed its highest share of the True Fleet petrol market for February with 29.2% only beaten by small cars with 34.0%. However there is a diverse range of segments represented in the Top 10 models for petrol. Small cars had the majority with six entries and took the top spot with the Renault Clio jumping 20 places into first place. SUV was represented by two different models (third and sixth) from the same manufacturer, Toyota with the CH-R and RAV4. Finally the mini segment filled two places (fifth and 10th) with the Fiat 500 and Smart Fortwo.

Spain’s performance in February show signs of positivity and optimism for the rest of 2017. Source: Dataforce

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TOP 10 TRUE FLEET PETROL MODELS FOR FEBRUARY 2017 1

Renault Clio

Volkswagen Polo

Toyota C-HR

SEAT Ibiza

Fiat 500

Toyota RAV4

Citroën C3

Audi A1/S1

Opel Corsa

Smart Fortwo

TRUE FLEET DIESEL SHARE AT

78.3% FOR FEBRUARY 2017

8.9% TRUE FLEET GROWTH FOR FEBRUARY 2017

ADVERTS_FWFS_2017_v2_Layout 1 03/03/2017 18:20 Page 3

Jose Gonzalez becomes the first ever Grand Prix winner for Ferrari, in 1951 Ayrton Senna gets a taxi ride from victor Nigel Mansell in 1991 Emma Blaine finds a telematics solution that will transform her logistics business, at Fleet Show 2017 What will be your memorable moment at Silverstone this year?

et champion at fle a Be . ng ki or w et N overing.

Fleet Show 2017

Driving. Disc

thefleetshow.co.uk

THE GREATEST SHOW IN FLEET

SILVERSTONE CIRCUIT

10TH MAY 2017

PROFILE_FCA_IFW_TINA-Apr17_Layout 1 21/03/2017 16:29 Page 1

PROFILE FCA Group

Bringing fleet to the fore Alongside a busy schedule of new vehicle launches and model updates, FCA Group, and Fiat in particular, made fleet a priority in 2016. A greater focus on business sales should help to boost performance in Europe, and the refreshed range is already selling well in international marketsâ&#x20AC;Ś

Pointing to success Jeep Compass is now available in global markets following a successful launch in Latin America.

30 / internationalďŹ&#x201A;eetworld.com

PROFILE_FCA_IFW_TINA-Apr17_Layout 1 21/03/2017 16:29 Page 2

view

Manufacturer FCA Group Total Group sales 2016 4.7m Headquarters London, UK Global market share 6% No. of models 28

from the top

Appealing to global markets CA Group incorporates an extensive portfolio of vehicle brands, the largest of which are Fiat, Alfa Romeo, Jeep, Chrysler and Dodge. Worldwide combined shipments in 2016 were in line with the prior year at 4.7 million units. FCA launched nine products worldwide in 2016, including Fiat Tipo, Toro, Fullback and updated Alfa Romeo Guilia. At the Los Angeles Auto Show in November, FCA unveiled new Stelvio, Alfa Romeo’s first-ever SUV, and new Jeep Compass made its North American debut, following its successful launch in Latin America earlier in the year. FCA closed 2016 with sales in Europe (EU28+EFTA) totalling nearly 993,000 vehicles. FCA outperformed the industry in most major market, with sales increasing 19% in Italy, 9% in Germany, 13% in France and 27% in Spain. Driving these results was the strong performance of the Group’s leading models. Fiat 500X and Jeep Renegade continued among the top ten in the small SUV segment. It was also a positive year for Fiat 500, 500L and Panda (at the top of the rankings in their respective segments). Newly launched Tipo continued to post increases throughout the year, closing with almost 61,500 units sold. Alfa Romeo sales totalled 66,200 units (+16.5%), with sales driven by new Giulia. The latest addition to the Alfa Romeo family sold 10,500 units, despite its gradual launch in markets across Europe beginning only in the second half of the year. Jeep’s European sales were also up 19% for the year to 105,000 vehicles, with sales of Renegade up 40% to 77,000 units. For the full year, the Ram Truck and Jeep brands each recorded year-over-year sales gains in the USA, although full-year sales were flat for FCA Group compared with sales in 2015. In December, fleet sales represented 19% of total FCA US sales. For the full year, Jeep’s US sales were up 6% compared with 2015 – Grand Cherokee was the volume leader of the Jeep brand with sales of 212,273 units. Fiat did not perform so strongly with American buyers, with sales down 54% year-on-year in December 2016. Although Group sales in Latin America decreased, FCA remained the market leader in Brazil, where Fiat also led the small and medium pickup truck market with the Fiat Strada and Toro at 55% and 74% of segment share respectively. Jeep continued its momentum in the small and medium SUV segments, with Jeep Renegade achieving a segment share of 18%. Asia-Pacific currently represents the smallest mass-market segment by vehicle sales, but FCA has been investing in building relationships with key joint venture partners in China and India to grow market share. In 2010, the GAC FCA JV was formed to produce Fiat brand passenger cars to meet demand for mid-size vehicles in China. In 2016, the Jeep brand made its return to India, with the launches of the imported Jeep Wrangler and Jeep Grand Cherokee. Production of new Jeep Compass is planned for the Ranjangaon, India plant for sale in India and other right-hand drive countries in 2017.

FCA Group Global sales, by territory Territory NAFTA Latin America Asia-Paciﬁc EMEA Total

2016 2.6m 0.5m 0.2m 1.4m 4.7m

2015 2.6m 0.6m 0.2m 1.3m 4.7m

Mkt share 12.2% 12.9% 0.7% 6.5% N/A

Gianluca Italia, FCA Group’s EMEA ﬂeet & business sales director, on upcoming key launches and a re-focus on fleet. How was 2016 for FCA Group? 2016 was very positive for the Group. Last year we introduced several models in the Group, and for all of them we over performed in the market. The important and positive news is that not only did we manage to sell well, but the appreciation of our product has been very positive. Alfa Romeo Giulia, for example, has won 27 awards in one year at every level across Europe. Which key launches are you most excited about? Starting with Jeep, we are introducing new Cherokee, which has always been the flagship for the brand. Then in the second half of the year we will introduce updated Jeep Compass into the mid-size segment. We are also introducing new Alfa Romeo Stelvio, the first SUV in our history. How are you supporting ﬂeet customers? As we all know, great product alone is never enough. Corporate buyers are looking for a combination of several factors, including assistance and total cost of ownership. We have developed all sorts of tools, services and marketing ideas for each of these stakeholders. On top of this we have appoints 250 of our best dealers across Europe to become Fleet Specialists. We are investing a lot in the professionalisation of our network. This includes fiscal counseling and all the aspects of customer care. Our business centres are the territorial bases of our strategy, and we have worked hard to improve specialist knowledge and organisation in each country. We are also supported by FCA Bank. FCA Bank is specialised on leasing and we have developed a strong plan to expand everywhere in Europe – we will be launching in Germany very soon.

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internationalﬂeetworld.com / 31

PROFILE_FCA_IFW_TINA-Apr17_Layout 1 21/03/2017 16:30 Page 3

PROFILE FCA Group

→

Where are they made? Manufacturing plant locations

Europe 1

Cassino Assembly Plant, Cassino, Italy

Melﬁ Assembly Plant, Melﬁ, Italy

Miraﬁori Assembly Plant, Miraﬁori, Italy

Giovanni Agnelli Plant, Grugliasco, Italy

Tychy Assembly Plant, Tychy, Poland

Kragujevac Plant, Kragujevac, Serbia

Tofaş Assembly Plant, Bursa, Turkey

5 14 13 11 12

6 7

The Americas 8

Betim Assembly Plant, Betim, Brazil

Goiana Plant, Pernambuco, Brazil

Toluca Assembly Plant, Toluca, Mexico

Belvidere Assembly Plant, Illinois, USA

Toledo Assembly Plant, Ohio, USA

Brampton Plant, Ontario, Canada

Windsor Assembly Plant, Ontario, Canada

9 8

Asia

FIN fleet in numbers

100 The number of Chrysler Paciﬁca Hybrid vehicles involved in the Waymo autonomous vehicle trials.

Global sales target, set out as part of the Group’s ‘Five Year Plan’ in 2014.

5.7 seconds 0-100kph time of Alfa Romeo Stelvio, with 280hp 2.0-litre Turbocharged petrol. 32 / internationalﬂeetworld.com

Ranjangaon Plant, Pune, India

Guangzhou Automobile Group Assembly Plant, Guangzhou, China

Focus on autonomous technology CA Group unveiled the Chrysler Portal concept at the CES Show in January 2017. Portal is a semi-autonomous electric vehicle that is engineered to be upgradeable as advances in technology enable higher levels of autonomy, and alternative mobility solutions continue to evolve. Portal delivers autonomy at a level which still requires the driver to be alert and ready to intervene, even in the limited situations in which the vehicle is handling the driving tasks. Portal has several methods for monitoring the attention of a driver, as well as a fail-safe to pull the vehicle to the side of the road if it determines that the driver is simply unable, or unwilling, to pay enough attention. Infotainment features include facial and voice recognition, the sharing of media content between passengers in a central zone, the ability to enjoy music at each seating position without headsets or without infringing on other passengers, and a driver-to-passenger intercom system. The Windsor Assembly Plant in Canada began producing new Chrysler Pacifica Hybrid in late 2016, as part of FCA Group’s electric vehicle development strategy. The brand claims that its electrified minivan is the “most fuel-efficient ever”, with a US EPA rating of 135km-per-gallon equivalent. FCA Group announced a collaboration with Waymo (formerly the Google SelfDriving Car Project) in late 2016, and has since manufactured Chrysler Pacifica Hybrid vehicles purpose built for fully self-driving operations. This marked the first time that Google has worked directly with an automaker to integrate its self-driving system into a passenger vehicle. Engineering modifications to the minivan's electrical, powertrain, chassis and structural systems were implemented to optimise Pacifica Hybrid for the technology, including the installation of sensors and software. Extensive testing was carried out at various sites across the US before the implementation of the public trials in early 2017. “As consumers' transportation needs evolve, strategic collaborations such as this one are vital to promoting a culture of innovation, safety and technology,” commented Sergio Marchionne, chief executive officer, FCA Group. “Our partnership with Waymo enables FCA to directly address the opportunities and challenges the automotive industry faces as we quickly approach a future where fully self-driving vehicles are very much a part of our daily lives.” In a statement, FCA said it hoped the collaboration would help FCA Group and Waymo better understand what it will take to make self-driving cars a reality.

ADVERTS_FWFS_2017_v2_Layout 1 03/03/2017 18:19 Page 2

Crowds go wild as Johnny Herbert wins in 1995 in a Benetton A first lap crash in the 1973 British Grand Prix sees 11 cars retire Henry Leach finds a ULEV for his employee mobility solution, at Fleet Show 2017 What will be your memorable moment at Silverstone this year?

et champion at fle a Be . ng ki or w et N overing.

Fleet Show 2017

Driving. Disc

thefleetshow.co.uk

THE GREATEST SHOW IN FLEET

SILVERSTONE CIRCUIT

10TH MAY 2017

PROFILE_FCA_IFW_TINA-Apr17_Layout 1 22/03/2017 12:36 Page 4

PROFILE FCA Group FCA Group fleet model range

→

FCA Group incorporates an extensive portfolio of brands, operating across several global territories. The key models are profiled here: Fiat Panda

Fiat Punto / Avventura

Variants: 5dr hatch/crossover Markets: Europe, Asia Fuel: 4.1-4.7l/100km CO2: 95-125g/km

Variants: 5dr hatch/crossover Markets: Europe, Asia Fuel: 5.3-5.7l/100km CO2: 124-132g/km

Fiat 500X

Fiat/Abarth 124 Spider

Chrysler 200

Variants: Crossover Markets: Global Fuel: 4.1-6.9l/100km CO2: 109-175g/km

Variants: Roadster Markets: Europe, Africa, North America, Oceania Fuel: 6.4-6.6l/100km CO2: 148-153g/km

Variants: 4dr sedan Markets: North America Fuel: 6.5l/100km* CO2: 151g/km*

Dodge Charger

Dodge Challenger

Dodge Journey

Variants: 4dr sedan Markets: North America Fuel: 7.8-9.4l/100km* CO2: 181-218g/km*

Variants: Coupe Markets: North America Fuel: 7.8-10.2l/100km* CO2: 181-237g/km*

Variants: Crossover Markets: North America, South America, Oceania Fuel: 9.4l/100km CO2: 218g/km

Jeep Renegade

Jeep Compass

Jeep Cherokee

Variants: Crossover Markets: Global Fuel: 4.6-6.9l/100km CO2: 120-175g/km

Variants: Crossover Markets: Europe, Asia, Africa, North America, Oceania Fuel: TBA CO2: TBA

Variants: SUV Markets: Europe, Asia, Africa, North America, Oceania Fuel: 5.3-10.0l/100km CO2: 139-232g/km

Alfa Romeo Giulietta

Alfa Romeo Giulia

Alfa Romeo Stelvio

Variants: 5dr hatch Markets: Europe, Asia, Africa, South America, Oceania Fuel: 3.8-6.8l/100km CO2: 99-157g/km

Variants: 4dr sedan Markets: Europe, Africa, North America, South America, Oceania Fuel: 4.2-8.5l/100km CO2: 109-198g/km

Variants: SUV Markets: Europe, Africa, North America, Oceania Fuel: 4.8-7.0l/100km CO2: 127-161g/km

34 / internationalﬂeetworld.com

PROFILE_FCA_IFW_TINA-Apr17_Layout 1 22/03/2017 12:36 Page 5

Fiat Tipo

Fiat/Abarth 500/595

Fiat 500L

Variants: 5dr hatch/4dr sedan/wagon Markets: Europe, Africa Fuel: 3.4-6.3l/100km CO2: 89-147g/km

Variants: 3dr hatch/cabrio Markets: Global Fuel: 3.8-6.5l/100km CO2: 88-155g/km

Variants: crossover/MPV Markets: Europe, North America Fuel: 4.0-7.0l/100km CO2: 105-163g/km

Chrysler 300

Chrysler Pacifica

Dodge Dart

Variants: 4dr sedan Markets: Asia, North America, South America, Oceania Fuel: 9.7-13.0l/100km CO2: 225-302g/km

Variants: : MPV Markets: North America Fuel: 2.8-8.4l/100km* CO2: 65-195g/km*

Variants: 4dr Sedan Markets: North America Fuel: 5.7-7.1l/100km CO2: 132-165g/km

Dodge Durango

Dodge Grand Caravan

Variants: SUV Markets: North America Fuel: 9.0-10.7l/100km* CO2: 209-248g/km*

Variants: MPV Markets: North America Fuel: 9.4l/100km* CO2: 218g/km*

Jeep Wrangler

Jeep Grand Cherokee

Alfa Romeo MiTO

Variants: SUV Markets: Global Fuel: 7.1-12.1l/100km CO2: 187-280g/km

Variants: SUV Markets: Global Fuel: 7.4-13.0l/100km CO2: 198-304g/km

Variants: 3dr hatch Markets: Europe, Asia, South America Fuel: 3.5-5.6l/100km CO2: 90-130g/km

Maserati Ghibli

Maserati Levante

Maserati Quattroporte

Variants: 4dr sedan Markets: Global Fuel: 5.9-9.7l/100km CO2: 158-226g/km

Variants: SUV Markets: Global Fuel: 7.2-10.9l/100km CO2: 189-253g/km

Variants: 4dr sedan Markets: Global Fuel: 6.2-10.7l/100km CO2: 163-250g/km

internationalďŹ&#x201A;eetworld.com / 35

SHOW_IFW_Geneva_Apr17 22/03/2017 13:08 Page 1

Geneva 2017 Highlights

Geneva Fever With nothing being said about the biggest story of Geneva 2017 – PSA and Opel bosses staying tight-lipped about the future – it was left to the cars to do the talking. John Challen takes a walk around the show.

Touring time with new BMW 5 Series Another new car, another bigger boot. This time it’s the BMW 5 Series Touring with it’s 1,700 litres of space (with rear seats folded) all housed within a longer and wider body. The new car range comes with xDrive all-wheeldrive options and covers everything from the 187bhp, 114g/km 520d to the 335hp 172g/km 540i xDrive.

Hyundai’s family car gets the boot Alongside the Korean manufacturer’s visions of a fuel cell future was a new generation Hyundai i30 Tourer. As well as more than 600-litres of space in the rear with the seats folded, the i30 Tourer adds extra appeal with what it claims to be the best standard safety package in its class. Autonomous emergency breaking, driver alert, high beam assist and lane keeping technologies are available on all models, while a whole host of other options are available.

DS grows up with Crossback PSA has continued to boost its ‘alternative’ brand with the arrival of the DS 7 Crossback – an SUV that maintains all of that ‘unique personality’ and luxury that is offered through the rest of the range. It’s very much style, but not to the detriment of substance – the Crossback offers a wealth of new technologies in safety, infotainment and comfort. There is night vision, attention assist, dual instrumentation screens and high-quality materials used throughout the cabin. A plug-in hybrid petrol powertrain has been selected as the heart of the car, consisting of a 200hp engine; two 80kW electric motors; a 13kW/h lithium-ion battery and a powered rear axle driven by a second electric motor. In pure electric mode, the car has a range of up to 60km and a fast charge takes just 2.5 hours (4.5 hours for standard charging).

36 / fleetworld.co.uk

SHOW_IFW_Geneva_Apr17 22/03/2017 13:08 Page 2

Peugeot’s take on autonomous vehicles Fresh from an official launch at the Mobile World Congress in Barcelona, the Instinct concept from Peugeot took pride of place on the French manufacturer’s stand in Geneva. The autonomous vehicle – a plug-in hybrid shooting brake vision – offers standard driving mode, as well as autonomous. Instinct has the ability to adapt to certain behaviours by interpreting technology from mobile phones and other devices and re-arrange journeys according to traffic conditions, prior to departure. Inside the car, there is an evolution of Peugeot’s i-Cockpit seen on production vehicles, featuring a 9.7in screen in the centre console.

Slimmed down Swift cleans up The third car to be built on Suzuki’s HEARTECT vehicle platform, the latest Swift is 10% lighter than the outgoing model, while 19% more powerful and 8% more fuel efficient. They are the headline figures for a car that tips the scales at 890kg and offers CO 2 emissions as low as 98g/km – recording fuel economy of 4.3l/100km. Swift will be available in five-door spec only and is powered by a choice of the 90hp 1.2-litre Dualjet or the 111hp 1-litre Boosterjet – which is also offered with Suzuki’s mild hybrid system.

Velar is set to go far In a world where many manufacturers are putting a large amount of their efforts into smaller, more economical vehicles, others are sticking to what they know best. Land Rover ﬁts perfectly into the latter category, with the fruits of its labour being shown in Geneva. The latest model to join the Range Rover family is the Velar, which will sit in between the Evoque and and Range Rover Sport, bringing the total number of Range Rover products to four. The new off-roader gets a touchscreen infotainment system, LED headlights and ﬂush door handles, to hint at the level of luxury and innovation onboard. However, delve a little deeper and there is a sensible engine line-up – the mode economical of the six powertrains being the 180hp 2-litre diesel with CO2 emissions of 142g/km.

Fastest Ferrari ever is Superfast It’s unlikely to find many customers in the world of fleet, but Ferrari used the Geneva show to unveil its latest offering, the 812 Superfast. A reworking of the Italian’s 12-cylinder engine has enabled maximum power of 789hp to be achieved from the 6.5-litre block. Oﬃcial prices have not been announced yet but are expected to be in the region of €288,000. If that’s not enough to put you off, Ferrari has stated a CO2 ﬁgure of 340g/km and fuel economy of 14.9l/100km.

Volvo shows its staying power with new XC60 Nearly a decade after the original XC60 made its entrance onto the world stage, Volvo unveiled the new model. It’s an important car for the Swedish manufacturer – representing 30% of total global sales. Power comes from the D4 and D5 diesel engines – putting out 190hp and 235hp respectively – while the petrol range runs from the 254hp T5 to the plug in hybrid T8, with 407hp. Other manufacturers might have caught up with Volvo’s high safety standards, but XC60 offers something new, in the form of Oncoming Lane Mitigation, which uses steering inputs to help prevent head-on collisions. internationalﬂeetworld.com / 37

ROAD_IFW_Tesla_ModelX_Apr17 22/03/2017 12:21 Page 1

Tesla Model X Insurgent luxury brand Tesla can only widen its appeal with an electric SUV, reckons Alex Grant. SECTOR Large SUV PRICE €107,000-€163,000 FUEL 417-565km range CO2 0g/km

he rapid rise of Tesla across Europe might have sounded unlikely when the Model S first arrived here back in 2014. But by understanding the technology and breaking new ground, it’s gone from unlikely insurgent to established luxury brand. The Model X – an all-electric SUV – looks likely to shift things up a gear. Positioned above the Model S, it’s a bit of a diversion from Elon Musk’s masterplan, a strategy based on launching progressively higher-volume, lower-price vehicles. But, with a footprint similar to a Range Rover, the Model X takes Tesla into the more popular SUV segment with the potential to outsell its sibling in the UK. The X is to the S what the BMW X5 is to the 5 Series, albeit with considerably more shared architecture underneath. Tesla’s underlying platform is skateboard-like, with a battery pack as the deck and – on four-wheel drive versions – an electric motor at each axle. That this looks like a chubbier Model S is no coincidence. For now, there’s nothing like it. Which almost seems remise of other manufacturers. It’s fully electric, not a But that’s sort of missing the point. On a cold February plug-in hybrid, and available with 75kWh, 90kWh and afternoon, the 90D was showing an indicated range of well 100kWh batteries, the largest of which can travel 563km over 322km to a near-full battery, without hypermiling or between charges. No small achievement on a deactivating the cabin heaters to save energy. car which tips the scales at two and a half That’s enough to travel useful distances FLEET FACT tonnes. All include dual-motor four-wheel between charging stops and, using Tesla’s drive and the option to add a towing pack. ultra-fast Supercharger network, it doesn’t A large proportion of orders are likely to be take long to get that range back. All versions the 90D, as tested here, which offers a 488-kiloIt’s not just about electric driving; the qualify for 7% BiK metre range under NEDC conditions and can Model X is a great people-mover. Options and 100% ﬁrstout-drag even the most powerful Range Rover. include third-row seating – forward-facing, year allowance. Brochure ﬁgures hint at a 4.8-second sprint to unlike in the Model S – and with enough 100km/h from rest but, with explosive off-theroom for adults in the back. Air suspension mark acceleration, almost no noise and no gear changes to is standard across the range, which means the biggest 22break that linear sprint up to motorway speeds, it feels inch wheels won’t loosen fillings, and the cabin feels quicker still. It’s unnaturally fast for something so large. bright thanks to the huge panoramic windscreen. Both rear rows also fold flat, turning it into a generously-sized van when needed. Utilising that flexibility reveals its party piece. The rear doors open electrically, hinging at the edge of the roofline and lifting upwards and outwards so passengers can get in without stooping. Hinging in two places also means they need less room to open than a sliding door – a useful feature in a car which fills most UK parking spaces. Sensors in the doors stop them battering low ceilings or neighbouring cars as they open, and they close automatically when the driver presses the brake pedal to drive away. But threats are on the way. Audi, Jaguar and MercedesBenz all have long-range, high-power electric SUVs in the pipeline, with the advantage of a broader model range to offer fleets. The Model X works brilliantly, and can only broaden Tesla’s appeal, but taking electric luxury cars into the mainstream has laid some solid foundations for its closest rivals to follow suit.

38 / internationalﬂeetworld.com

ROAD_IFW_Tesla_ModelX_Apr17 22/03/2017 12:24 Page 2

what we think A clever, versatile and tax-eﬃcient SUV for those who can pick a company car costing over €100,000, but Tesla isn’t the only manufacturer with its sights set on this corner of the market.

highlights Four-wheel drive and air suspension as standard Eight-year, inﬁnite-mileage battery and drivetrain warranty Five, six or seven-seat versions, all with ‘Falcon Wing’ rear doors

key fleet model Tesla Model X 90D internationalﬂeetworld.com / 39

ROAD_IFW_Toyota_Prius_Apr17_Layout 1 22/03/2017 12:26 Page 1

Toyota Prius PHV Unquestionably clever, but the Prius PHV has one major sticking point, explains Alex Grant. SECTOR Upper Medium PRICE €37,500-€40,000 FUEL 1.0l/100km CO2 22g/km

4l/100km is relatively easy to achieve – anything else is s a hybrid pioneer, Toyota knows better than most that missing the point anyway. arriving early isn’t easy. Launched back in 2012, the There are compromises. Although interior is shared with old Prius Plug-In Hybrid perhaps arrived too early to the Prius, which means even the tallest passengers can get take advantage of growing market acceptance of PHEVs. And comfortable inside, the battery is physically two thirds larger there’s a chance that this second generation could be on track than in its predecessor and takes up a fifth of the boot to do something similar, but for different reasons. volume, leaving a shallow load area behind. The colour That’s not due to bad technology. Far from it. As an early displays showing trip data and what’s happening under the hybrid adopter, Toyota is blazing a trail, and the new Prius bodyshell are useful, but Toyota’s infotainment system is with its uncompromising focus on efficiency works brildated and – though there’s a wireless liantly. It’s good to drive, makes better charger for phones – Apple CarPlay and use of its electric power even at motorAndroid Auto aren’t available. way speeds, and returns staggeringly It’s also relatively slow to charge, high fuel economy without relying on reaching 65% capacity in two hours from being plugged in. a wallbox and with no rapid charging Which makes a good base for a PHEV, option to maximise efficiency on longer particularly as some of the old car’s trips. There’s now a mode to charge the issues have been resolved. The battery battery using the engine, with an obvious capacity has doubled, to 8.8kWh or just effect on fuel economy, but enabling drivunder a third of the Nissan LEAF’s capacers to save electric miles for inner-city ity, doubling the range to 50km. Once that use. It’s a more logical sacrifice than the range is exhausted, it reverts back to optional solar roof, which is unlikely to being a conventional Prius, albeit with an make financial sense over a typical threeadditional 150kg or so on board. year fleet life cycle. That driving experience will be familBut the big problem is what it’s up iar to anyone who’s driven the latest Brilliant technology against. Though it’s an entirely different Prius. Lower, wider and significantly focused on minimising proposition, Prius is likely to be compared longer than the old one, it feels as surefuel consumption on all to other similarly-priced PHEVs, which footed as any large family car, gliding road types. But the price makes this a rival for more user-chooser lazily around town and up to motorway and today’s buyer habits, friendly tax-efficient cars like the BMW speeds with minimal interruption from 330e. This is unquestionably the right way the petrol engine. It’s only obvious that make the Prius PHV's to use plug-in technology, particularly with its running on liquid fuel when it’s under take on plug-in hybrids forthcoming low-emission zones in cities, heavy load, such as while climbing steep ahead of its time. but Toyota could have an uphill struggle hills or overtaking. Drive it gently, use the against more flexible alternatives. Eco mode, and fuel consumption under

what we think

40 / internationalﬂeetworld.com

ROAD_IFW_MAZDA_CX5_Apr17_Layout 1 22/03/2017 13:33 Page 1

Mazda CX-5 Mazda's updated CX-5 puts the emphasis on comfort, reﬁnement and technology, says Dan Gilkes. SECTOR C-SUV crossover PRICE from €27,700 approx. FUEL 5.0-6.8 l/100km CO2 132-159g/km

As part of the redesign, body shell torsional rigidity has been aunched in 2012, Mazda’s CX-5 has been a big success, improved by 15%. In combination with revised steering and with more than 1.5m sold globally. In Europe the suspension, plus the adoption of Mazda’s G-Vectoring Control, company has found homes for 350,000 CX-5s, with this leads to improved handling and ride comfort. G-Vectoring 73,000 sold in 2016 alone. While there has been little change Control monitors the steering and throttle when entering a to the mechanical specification, the car has been considerably corner under power, reducing torque to increase grip and upgraded in terms of equipment and interior design. steering precision. The exterior has not escaped the designer’s pen, though The increased rigidity also contributes to reduced noise, based on the same wheelbase, the bonnet is now 100mm vibration and harshness, making the CX-5 a quieter place to longer and the A-pillar base has been moved 35mm rearward. spend the day, though the diesel engines The car also sits 35mm lower and the grille still make their presence felt under hard is far more imposing, with a much more acceleration. sculptural feel to the front end of the car. The CX-5 is equipped with Mazda’s MZD Inside its all change, with new heated Connect system. This expands on mobile front and rear seats, an updated steering connectivity, including Bluetooth, email wheel, revised layout and a 7-inch screen and SMS integration with the navigation that now perches on top of the dash. This is and audio system. A number of optional combined with a much-improved head-up connected services will make additional display that is projected onto the windlive features available, such as traffic screen. A powered tailgate is available for updates and access to fuel pricing on route. the first time on CX-5. The car’s Radar Cruise Control system There are three engines on offer: the will now completely stop the car, previSkyActiv-G 2.0-litre petrol engine, which ously it cut out at 30km/h. This means that develops 163hp (158hp with all-wheel the system can be used in stop/start trafdrive) and returns a best of 6.4l/100km with fic. Traffic Sign recognition is available for 149g/km of CO2. The more popular choice Mazda continues to the first time, along with Smart City Brake will no doubt be between two versions of the Support, which even works in reverse. firm’s Skyactiv-D 2.2-litre engine, available buck the downsizing Mazda’s global sales have risen by 25% with 148hp or 173hp. The lower powered trend, concentrating on since the CX-5 was launched in 2012. In motor offers 5l/100km and 132g/km, reﬁnement and improvthat time the firm’s European sales have while the 173hp version returns a best of ing the premium feel grown by 60% demonstrating the impor5.4l/100km and 142-152g/km of CO2. tance of the European market to the JapanAll three can be ordered with six-speed of its best-selling SUV. ese manufacturer. SUVs now account for manual or automatic transmissions. The There is much to like 40% of sales, with the CX-5 leading the 173hp engine can only be had with 4WD, in the updated CX-5. charge. This second generation CX-5 while the two lower powered motors can should push those sales further. be specified with front or all-wheel drive.

what we think

internationalﬂeetworld.com / 41

ROAD_IFW_KIA_RIO_Apr17_Layout 1 22/03/2017 13:33 Page 1

Kia Rio The Rio feels suitably tailored to European tastes considering its global roots, says Alex Grant. SECTOR Supermini PRICE €11,500-€22,500 FUEL 3.5-6.1l/100km CO2 92-140g/km

navigation featuring internet-enabled traffic, weather and ia’s product range has changed dramatically over the destination information, as well as Apple CarPlay and last decade. Once famed for cheap and cheerful small Android Auto connectivity functions. cars, it’s the Sportage that is now driving volume, Aesthetically it’s not up to high standards set by the Polo, accounting for a third of European sales last year, while even and the over-reliance on black plastic can make it feel a bit the Sorento SUV is extending its footprint across the region. drab, but it scores well for functionality. Re-shaped seatbacks So it seems almost anomalous that the Rio - a small Kia mean there’s plenty of room for adults to get comfortable in competing in Europe’s largest-volume segment - should be the back, and the boot is generously sized with a wide opening. built in South Korea rather than Slovakia, and outsold by a For now, fleets are likely to be drawn to one of the two 1.4crossover. Instead, its importance is global. This is the litre diesel engines, which produce 76hp brand’s biggest-selling model worldwide, or 89hp. The former replaces the threewith half a million sold last year, and it’s cylinder 1.1-litre CRDi offered in the not resting on its laurels. previous Rio, its extra size should mean Although it looks like a heavy facelift, it’s not working as hard which could what’s underneath is new. The body is make the claimed 3.5l/100km easier to more rigid than its predecessor, which achieve under ‘real-world’ conditions. means there’s less need to over-compenRefinement is impressive for such a small sate with stiff suspension. Don’t expect car, too. Fiesta-like sportiness, but it corners neatly But diesel isn’t the obvious choice it and rides over rough surfaces like a bigger once was, and there are some appealing car – it feels more substantial, more like a petrol alternatives. Particularly the 1.0European supermini, than the outgoing Rio. litre turbocharged three-cylinder at the It’s also grown up visually. Kia has middle of the range, which produces a dropped three-door version to match lively 99hp and brisk mid-range performcustomer demand, and the remaining fiveance, while also offering 102g/km CO2 door hatchback looks understated and A competent supermini emissions and undercutting the diesel on German; more Polo than Fiesta, though with plenty in its favour, price. It feels like the right engine for the arguably also a little too close to the i20. the Rio feels better car, and is only likely to make more finanIt’s perhaps not quite as daring as its predsuited to its small petrol cial sense in the coming years. ecessor, but it’s also less prone to looking engines than the default So the Rio shapes up to be a competiunder-wheeled in lower trim levels. tive supermini, in a segment which can Perhaps more importantly, the cabin is diesel, and they’re likely be hard to rival in Europe with a product much improved. It feels a lot like a downto make increasingly developed for global tastes. Behind spotsized Optima inside, neatly laid out more financial sense too. light-stealing crossovers, Kia hasn’t lost around a touchscreen which, depending its talent for thinking small. on specification, can be equipped with

what we think

42 / internationalﬂeetworld.com

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