International Fleet World April 2018 by Fleet World Group

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

April 2018

Two fuels. Twice as efficient. TGI by SEAT. Natural gas and petrol.

The eco way to go longer for less. TGI by SEAT brings together two fuels to reduce your environmental impact and your costs – saving you up to 50%* on fuel in gas mode. SEAT FOR BUSINESS. ∙ Available in Leon, Leon ST and Ibiza. ∙ Reduced total cost of ownership. ∙ No parking restrictions.

* Percentage obtained by comparing a SEAT model with TGI engine while driving in CNG mode to the same SEAT model. with a petrol or diesel engine, using official and homologated data of CO2 emissions and average fuel consumption, and average fuel prices in Spain. SEAT Ibiza TGI: average fuel consumption 4.9 l/100 km, average CO2 mass emissions 88 g/km. SEAT Leon TGI 5D & ST: average fuel consumption 5.7 l/100 km, average CO2 mass emissions 130 g/km.

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

April 2018

contents

Two fuels. Twice as efficient. TGI by SEAT. Natural gas and petrol.

Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk

20 INTERVIEW: Philippe Bismut of Arval.

24 Cross-border remarketing for fleets.

32 PROFILE: Nissan’s electric momentum.

40 DRIVEN: Striking Hyundai Kona.

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 Jonathan Musk jonathan@fleetworldgroup.co.uk Account Directors Claire Warman claire@fleetworldgroup.co.uk Harry Whyte harry@fleetworldgroup.co.uk Yvonne Wright yvonne@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Dan Bennett dan.bennett@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk

04 Fleet Review Editor John Challen delves into the world of electric vehicles. 06 Fleet in figures Breaking down the latest global vehicle sales by region. 08 Business News The biggest stories from the international fleet community. 14 Environmental News Updates from the electrified vehicle fleet market. 18 Analysis The residual values of the new Skoda Kodiaq SUV. 20 Interview Arval CEO Philippe Bismut on the company’s mobility focus. 24 Feature How BCA is delivering a cross-border remarketing service for fleets.

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

28 Fleet Focus USA: Looking at how the American market is faring under Trump. 32 Profile NISSAN: Success from electric cars to popular crossovers... 36 Geneva 2018 Six fleet vehicle highlights from this year’s vibrant Salon Auto. 38 Launch Report Nissan Leaf / Hyundai Kona / Range Rover Velar.

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

42 Show Preview NAFA 2018: Why you need to head to California in late April.

internationalfleetworld.com / 03

fleet review This month, editor John Challen discusses electric cars, Fleet Show 2018 and the impact of snow on the UK...

Generation Game

Snow joke

As if we didn’t know already, the number of different electric vehicle models in the halls of the Geneva motor show was confirmation that our industry is heading for a battery-powered future. Besides all of the connectivity and autonomous elements to the new models, the biggest impression I took away from the show was how normal it has become to talk about EVs and expect electric versions of ‘regular’ cars. Yes, Renault’s EZ-GO won’t be to everyone’s taste and is clearly designed with nondrivers in mind – but electrification was everywhere. That includes on the Nissan stand where the latest LEAF was on show. A car that, to my slight surprise, my mother has decided to upgrade to from her humble Fiat Punto. She doesn’t drive many miles a year, but it seems the chance to save money (and time) by not filling up at a fuel station – and save the planet, knowing mum – was enough incentive to ditch the ICE. She’s not alone – many of her generation are following suit and, while the manufacturers might not have them in mind as the target market, it’s an indication of how times and attitudes are changing. Gone are the days of the idea of an electric vehicle being a milkfloat, they are now desirable and impressive in every way.

We had snow in the UK recently and – just like EVERY time it happens (once every few years) – it was a big deal. Mass train cancellations, road closures, warnings of ‘don’t travel unless the journey is essential’, people slipping on pavements – all of the regular UK winter clichés were there. You would think the country would be prepared for it, but it wasn’t long before news bulletins were streaming images of gridlocked motorways with cars either abandoned of packed with passengers trying to keep warm. I’m not sure what the impact was on productivity levels, but the number of vox pops with people who were ‘working from home’ proves there’s no reason not to be connected to ‘the office’ these days, whatever the weather.

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Showtime... again Back once again – and aiming to bring the words of this publication, not to mention sister title, Fleet World, to life – it’s almost time for the Fleet Show. Returning to the familiar surroundings of Silverstone, Fleet Show 2018 takes place on 9th May, offering test drives, seminars, exhibits and networking opportunities. If you’ve got a question about fleet, where the industry is going, or what car is best for you, there’ll almost certainly be someone in attendance who can give you an answer.

7yr 150,000km warranty

EX-CEED-ING EXPECTATION New Ceed sets the standard for fleets with fresh design, innovative engines and cutting-edge technology. Built in Europe, for Europe Quality as standard Lower, longer, wider, and brimming with the latest Meeting diverse buyer needs, the new Ceed is powered by technology, the new Ceed nomenclature stands for a wide range of engine options, including gasoline 120PS Community of Europe with European Design. The athletic 1.0-litre T-GDi engine, as well as a new 1.4-litre T-GDi power third-generation Ceed has been designed, developed and unit. Replacing the earlier 1.6-litre GDI engine, the new engineered in Frankfurt by Kia’s European design, product ‘Kappa’ 1.4-litre T-GDi engine produces 140PS, 4% more development and R&D teams, giving it the same sporty, than its predecessor despite its lower displacement. emotional design character of the Stinger, with a more selfReduced emissions are made possible by the addition confident new look. of particulate filters on the gasoline engines. Additionally, Ceed occupies a unique position in the Kia line-up, new diesel 115 and 136PS ‘U3’ 1.6-litre CRDi engines use perceived by buyers as a dynamic and sporty vehicle to Selective Catalytic Reduction active emissions control to drive, while also being one of the most reliable, practical significantly reduce emissions. These technologies enable and recognisable. the new Ceed to go beyond Euro 6d TEMP standards, for Packed with technology, and a first for any Kia sold in example emissions of less than 110g/km (WLTP*) are Europe, the new Ceed is available with Lane Following expected on the ‘U3’ diesel. Joining the Kia line-up at thedriving end oftechnology. the year, Kia’sThe stylish Optima Assist; a ‘Level Two’ autonomous Ceed’snew optional ECO Pack features an Active Air Further enhancements Smart Cruise Control Flap, which closes and opens depending on engine Sportswagon is as include desirable for drivers aswith it is cost-efficient for fleets. Stop & Go, Blind Spot Collision Warning, Rear Cross-Traffic cooling requirements, enhancing the car’s aerodynamic Collision Warning, Smart Parking Assist, and pedestrian efficiency for even greater fuel economy. recognition with haptic steering wheel warnings for the On sale across Europe from the end of Q2 2018, as one Forward Collision-Avoidance Assist system. would expect, the Ceed is covered by Kia’s industryAvailable as both five-door hatchback or practical leading quality promise: a 7-Year, 150,000-kilometre Sportswagon, the new car meets all your fleet needs. warranty as standard. *WLTP figures converted from NEDC.

Lane Following Assist, ‘Level Two’ autonomous driving technology

For more information, visit kia.com/eu advertisement feature

fleet in figures

Mixed fortunes for major markets in Februrary Global vehicle sales fell by 1.3% in February, caused by drops in demand in the US and China. Meanwhile, Eastern European and South American markets fared much better. By John Challen.

S new light vehicle sales totalled almost 1.3 million units in Febru‐ ary, down 2.4% from a year ago. This volume translates into a seasonally adjusted annual rate (SAAR) of 17.0 million units a year, down 400k from last year and 100k from January. While retail deliveries dropped 5.7%, to 969,000 vehicles, ﬂeet sales soared 8.9%, to 330,000 units. As trucks continue to outperform the industry, vehicles were 3.3% more expensive than last year, averaging $35,823. Cash incen‐ tives also continue to grow – they were 2.5% higher than last year. Canada was the only North American market to perform positively in February as sales grew 2.3%, to 126k units. This brings Canada’s SAAR to 2.2 million units a year, up 180,000 from last year. Mexico had the worst YoY performance of the region, with sales down 6.8%.

Europe West European light vehicle registrations grew by 3.8% YoY in February. As in January, Germany and Spain delivered the most notable results, with German car registrations up 7.4% YoY, and the Span‐ ish car market up by 13%. While French car sales were up by a respectable 4.3%, the Italian and UK car markets both fell slightly. Overall, the Western Europe light vehicle selling rate dropped from a decade‐high 17.2 million units a year in January to a still‐buoyant 16.9 million units a year in February. Russian light vehicle sales impressed again in February, growing by 24.7% YoY. Experts estimate the February light vehi‐

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cle selling rate at 1.9 million units a year, up from 1.69 million units a year in January, and the highest for any month since January 2015. So far this year, Russian light vehicle sales are up 27.6% YoY on the ﬁrst two months of 2017.

China The Chinese market maintained a solid momentum in February. The holiday‐ adjusted selling rate was 28.2 million units a year in February, little changed from 28.5 million units a year in January. On a YoY basis, however, sales (i.e., wholesales) declined by 9.1% in February, due to the timing of the Chinese New Year (which fell in February this year, while it was in January last year). In the first two months of this year, sales increased by 2.5% on the year, driven by still buoyant car sales. Sales growth this year is expected to be modest, because of the expiration of the temporary purchase tax cut in December and a slowing economy. The economic outlook has become increas‐ ingly uncertain, with the renewed trade frictions with the US and the global financial volatility. China’s decision to remove the term limit on President Xi could potentially impact FDI inflows in the country over the longer term.

Other Asia In Japan, the February selling rate of just above ﬁve million units a year was slightly lower than the January rate, and the second consecutive month of month‐ on‐month slowdown. The positive impact of new model launches in the last year has faded. The volatile global ﬁnan‐

cial markets and the strengthening yen may have dampened conﬁdence, too. Yet, the ﬁve million‐unit rate is still a good result for Japan. February sales in South Korea were disrupted by the PyeongChang Winter Olympic Games and the Lunar New Year holidays. The selling rate slowed to 1.62 million units a year in February. On a YoY basis, sales declined by nearly 8% in February after a 9% increase in January.

South America The Brazilian market continues to recover strongly after the deep and long slump. While the February selling rate of 2.3 million units a year was slightly lower than the rate in January, sales increased by 14% on the year in February and almost 19% in the ﬁrst two months of this year. The strengthening job market and rising wages are supporting consumers’ willingness and ability to spend on new vehicles. In Argentina, the selling rate slowed to 937k units/year in February after an exceptionally strong 1 million‐unit rate in January. On a YoY basis, however, sales increased by nearly 17% in February, boosted by the tax cut on vehicles that went into effect on 1 January. Kia Rio sales in 2018 have boosted the Russian market

SILVERSTONE CIRCUIT

9TH MAY 2018 THE GREATEST SHOW IN FLEET

PUT YOUR FLEET IN POLE POSITION The fleet industry is undergoing change like never before: explore the issues and discover how new vehicles, products and services could benefit your business and give you a competitive advantage... Test Driving. Seminars. Exhibits. Networking.

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business news

Alphabet grows operational lease portfolio 5.5% A

lphabet International saw growth in both its operational lease portfolio and overall order volumes in 2017 while also outperforming the new car market on uptake of electric and plug‐in hybrid vehicles. New figures show the leasing and fleet management giant grew its operational lease portfolio by 5.5%, to 680,000 cars and light commercial vehicles in 2017, while its order volume increased by 4% to more than 240,000. Meanwhile the firm also expanded its customer base by 10% to over 86,000 companies. Take‐up of electric vehicles (EVs) and plug‐in hybrid electric vehicles (PHEVs) gained ground, growing by 51% in total – this compares to an over‐ all increase of 36% in the EV/PHEV market over the same period. In total, Alphabet introduced 11,000 EVs and PHEVs, which equates to a 5.2% market share of all EV/PHEV registrations in the 12 relevant countries. The firm said it would continue its focus on providing clients with tailor‐made solutions “as an increasing number of companies look to adopt new mobility forms and practices within a framework that fits their business requirements”.

TMC drives European expansion

MC has created a new role of international sales market director for Belgium, France, Germany and Spain as it reports growing interna‐ tional demand for its consolidated ﬂeet and fuel solutions. Álvaro Bonnardeaux has stepped into the new European role, bringing more than 20 years’ experience in sales and business development and management consulting in eight countries on three continents. Paul Hollick, TMC’s managing director, said: “Demand for TMC’s unique services are growing at an exponential pace across Europe. It is exciting times for TMC and Álvaro will be instrumental in the delivery of our services to both new and existing customers in the German, French, Span‐ ish and Belgian markets.”

Movolytics launches telematics business in Spain

elematics specialist Movolytics is expanding into Spain as it reports a period of rapid growth. The UK‐based firm, which was founded in 2016, has established a Span‐ ish subsidiary with a dedicated team of sales, marketing and customer support staff. Additionally, a Spanish‐language version of the software has been developed. Chris Smith, CEO at Movolytics, said: “Spain, with its huge road trans‐ port infrastructure, is the target of our first international expansion. We’re excited to show the Spanish market, in particular the construction, engi‐ neering, utilities and transportation industries, what is possible with our technology and to demonstrate the considerable return on investment that can be achieved.”

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fleetiinquotes a few soundbites from a month in fleet

This exceptional ruling has made it absolutely clear that German cities have first and foremost to comply with EU law – and therefore have the power and the obligation to put diesel restrictions in place.

“

”

James Thornton, CEO, Clientearth.

Toyota’s HEV mix in passenger cars reached equality with the diesel mix in 2015. Since then, HEV sales have substantially exceeded those of our diesels.

“

”

Johan van Zyl, president and CEO, Toyota Motor Europe.

“

Our corporate clients highly value our international product offer and global network. Now they can also rely on an Alphabet testified partner to provide suitable cutting-edge mobility products for their subsidiaries or offices in Portugal.

”

Rüdiger Ebel, head of new markets, Alphabet.

For the latest news, visit internationalfleetworld.com

Daimler takes full control of Car2Go Europe aimler Mobility Services has acquired the remaining shares in Car2Go Europe after Europcar sold its 25% stake for €70m. DCar2Go Europe was founded in 2012 as a joint venture by the two ﬁrms, owned 75% by Daimler and 25% by Europcar. Since then, it has expanded into North America and China, and has more than three million users worldwide. Daimler Mobility Services has acquired the shares as it ramps up its investments in mobility services to create a “holistic mobility system with a broad portfolio”. Europcar said the funding would contribute to plans to signiﬁcantly expand its exposure to new mobility segments – such as car sharing, ride hailing, multi‐modal platforms and car pooling.

Alphabet expands into Portugal is now offering its products and services in Portugal under collaboration with local leasing firm Finlog. AThelphabet move provides international and pan‐Iberian fleets with access to a range of Alphabet‐compatible solutions along with a number of auxiliary services, such as fuel cards, replacement vehicles, roadside assistance and legal insurance. The move marks Alphabet’s expansion into its 20th market and means it offers services throughout the Iberian Peninsula. Portugal becomes the 20th country where fleet management provider Alphabet conducts Rüdiger Ebel, head of new markets at Alphabet, said: “Our corporate clients highly value our international product offer and global network. Now they can also rely on an Alphabet testified partner to provide suitable cutting‐edge mobility products for their subsidiaries or offices in Portugal.”

German cities win right to ban diesel ermany’s highest administrative court has ruled that cities can ban diesel cars to tackle air pollution in a move that could set a G precedent worldwide. Brought about by environmental lawyers representing ClientEarth and national NGO Deutsche Umwelthilfe (DUH), the landmark decision by the Federal Administrative Court overturned appeals from authori‐ ties on regional court rulings that diesel bans were the most effective way to bring down illegal nitrogen dioxide (NO2) pollution down as quickly as possible in Stuttgart and Düsseldorf. Instead the court said national‐level laws could be bypassed to allow regional authorities to protect people’s health in areas where air pollution exceeds legal limits. The ruling is expected to have major implications, not just for the 19 clean air cases open in German cities, brought by DUH and eClientEarth, but also for cities across the globe.

in brief Sofico opens German office Software provider Sofico has opened a German subsidiary with a local office to enhance its service to customers in the country. The firm said the new office fits in with its growth strategy of establishing a local presence in key markets to support customers.

Seat expands into car sharing sector Seat is developing its mobility services focus with the acquisition of Spanish car sharing firm Respiro. The acquisition will enable Respiro to expand its car sharing business to new cities in future years, explore new channels and further develop its business model.

Ridesharing service debuts in Europe Mercedes‐Benz Vans and US technol‐ ogy start‐up Via are introducing on‐ demand ridesharing to Amsterdam through their ViaVan joint venture. The city marks the irst deployment of the scheme ahead of launches in Berlin and London this year, along with other cities depending on inal approvals.

Higher taxes on road fuels considered Increasing taxes on road fuels could be one of the ways to help mitigate a future €12bn‐a‐year gap as a result of the UK’s departure from the EU. The proposal was advocated by a group of economists to bring about new revenues from taxing transport, which is Europe’s biggest emitter of green‐ house gases.

internationalfleetworld.com / 09

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manufacturer news

Toyota phasing out diesel cars by 2019

oyota will have no diesel passenger cars on sale in Europe by the end of this year, citing limited demand and widespread uptake of hybrid alternatives. In 2017, Toyota Motor Europe registrations rose 38% to 406,000 units, of which hybrid electric vehicles (HEVs) made up 41% of total sales. In contrast, diesel made up less than 10% of registrations during the same year. Regis‐ trations have become increasingly weighted towards hybrids since 2015, when sales were split evenly between hybrids and diesels. In the UK, Toyota sold 101,692 units last year, of which hybrids made up 45,803 units – equating to 45%, similar to Europe. However, diesel registra‐ tions came to under 7,000 units – less than 7%. The new‐generation Auris – debuted at Geneva – will be offered only with petrol and HEV powertrains; as with the C‐HR in 2016, there will be no diesel version. Engine line‐up for the Auris will bring the 123hp 1.8‐litre HEV driv‐ etrain from the C‐HR and Prius along with a 116hp 1.2‐litre turbo petrol and a 181hp 2.0‐litre HEV. Product plans beyond 2018 are unconﬁrmed, a spokesperson said, but the plans will involve phasing out the Avensis, Verso and diesel RAV4 – in the case of the latter, HEV sales outsell the petrol/diesel models two to one. Toyota will continue to offer diesel engines in commercial vehicles (includ‐ ing Hilux, Proace and Land Cruiser) to meet customer needs.

New Peugeot 508 targets the premium brands eugeot hopes to attract fleets back to the D‐segment with the new 508, re‐ P designing it as a four‐door coupe with a view to improving residual values and keeping running costs low. The new car is lighter and more compact than its predecessor, with a lower roofline, frameless windows and rear hatchback. It features Peugeot’s unique i‐ Cockpit layout, positioning the (optionally digital) instruments on top of the dashboard, and a suite of driver assistance features. Most cars will get a 10‐inch capacitive touchscreen with Android Auto, Apple CarPlay and TomTom live traffic data. Launch engines cover two gasoline options at 180hp and 225hp and BlueHDI diesels at 130hp, 160hp and 190hp. The entry‐level 1.5‐litre diesel is the only version available with a manual transmission, although it can also be equipped with the same eight‐speed automatic fitted to the rest of the range. CO2 emissions range from 98g/km for the most efficient diesel, while the Blue‐ HDI 180 comes in at 123g/km. A plug‐in hybrid will follow in autumn 2019.

in brief Diesel economy for new gasoline Golf Volkswagen is adding a new 130hp gasoline engine to the Golf, consuming as little a 4.8l/100km. The 1.5 TSI ACT BlueMotion features variable turbocharging, as used on high‐perfor‐ mance cars, cylinder deactivation and a modi ied combustion cycle, to offer 10% better economy than comparable gasoline engines, the carmaker said. It can also switch off completely when not under load, using a small battery to power on‐board systems.

Europe records first CO2 rise in a decade Average CO2 emissions from new cars in Europe were 117.9g/km during 2017; up 0.3g/km on 2016, and the first rise in 10 years, according to Jato Dynamics. The company said grow‐ ing demand for SUVs, and the lowest diesel share since 2003 had both contributed to the increase.

Third defeat for UK government over illegal pollution The UK and Welsh governments will be required by law to draw up new plans to cure illegal levels of air pollution, following a third defeat in the High Court in London to environmental activists ClientEarth. This latest defeat is likely to accelerate the roll‐out of clean air zones and new tax structures, both of which could affect leets.

Senior appointments at Cox Automotive Cox Automotive has appointed UK chief executive of icer, Michael Buxton, as chief operating of icer for its inter‐ national operations, effective 1 July 2018. His former role will be assumed by Martin Forbes, managing director of Cox’s Modix, Incadea and Motors.co.uk operations in the UK.

12 / internationalfleetworld.com

evfleetworld.com

For all your fleet electric vehicle needs and to stay up to date with the latest news and developments, visit

evfleetworld.com @EVFleetWorld

EV Fleet World

environmental news

EVs unlikely to counteract rising demand for oil by 2040 G

lobal oil demand and CO2 emissions will be higher in 2040 than in 2016, even with a total worldwide ban on all new combustion engine vehicles, according to the 2018 BP Energy Outlook report. The research looked at several scenarios for future energy use, recognising that long‐term changes were based on a combination of policy, technology and societal preferences. But the data released assumes the pace of change follows the same pattern as it has so far. According to this scenario, global demand for oil and energy will continue to rise in the years leading up to 2040, largely due to the rapid growth of emerging economies. The knock‐on effect is a 10% rise in carbon emissions during the same period, which is lower than the last 25 years but not enough to meet climate change targets set out at COP21 in Paris. Transport plays a big role in the rising demand for oil –

accounting for 50% of that increase – but BP said improved fuel economy for next‐generation vehicles would play a big role in such rising demand plateauing towards the end of the Outlook period. Overall, transport (including rail, air and sea) demand will more than double, while energy use will increase by 25%. By 2040, BP predicts only 15% of the world’s car parc – some 300m vehicles – will be electric. But driverless and car‐sharing technology means these vehicles will account for 30% of the miles driven by that point. The report suggests banning combustion engine vehicles completely by 2040 will cut oil consumption by 10m barrels per day, which is still not enough to curb the rising demand from emerging economies. A scenario where carbon emissions fall by almost 50% by 2040 is, by comparison, largely due to almost completely decarbonising the power sector over that time.

Europe has no shortage of charging points, says report

low uptake of electric vehicles across Europe has more to do with limited avail‐ ability of vehicles than a lack of charging infrastructure, according to a new report. The Platform for Electromobility, an alliance of 31 manufacturers, utilities, infras‐ tructure providers, cities and other organi‐ sations, looked at current and planned charging point roll‐out across Member States, based on government plans submitted to the European Commission. According to the Commission’s targets, there should be one charging point for every ten electric vehicles. Europe is well ahead of this, currently averaging ﬁve per charging point (albeit with some areas of over and under‐supply), while sales

14 / internationalfleetworld.com

and roll‐out plans suggest it will still meet the Commission target by 2020. Plans to put rapid chargers at 60km (37‐ mile) intervals along major routes are also looking likely to be beaten by the end of the decade, with projections that this could be as short as 40km (25 miles) instead. After this, investment will need to be stepped up, the report said, to meet demand with further impacts from longer‐range batteries and faster charging times, as well as an increase in EV drivers without off‐street parking. Instead, the report suggests it’s limited availability of the electric vehicles themselves that is holding the market back. Across Europe, these totalled 1.4% of total new registrations last year.

For the latest EV news, visit evfleetworld.com

Arval spearheads flexible EV solution

rval is set to significantly grow its EV offering following a new partnership with Renault, Nissan and charging point provider NewMotion. Following on from its initial launch of EV fleet solutions in 1995, the new Arval Electric Vehicle service offers workplace and home installation and a card payment service to customers. Other services will include refunds for charges carried out using a domestic supply and the offer of a substitute petrol or diesel car for adhoc needs, including holidays. A mobile app will enable drivers to find charging points and access prices, as well as monitor vehicle performance. Fleet managers will be able to access KPI data on usage and costs. Fleets will also be offered 3‐6 month trial periods to enable them to assess the suitability of running EVs. The service has gone live in the UK as well as France, Belgium, Norway and the Netherlands. Nine other European markets will follow during the second quarter of the year.

Fastned installs first 350kW EV chargers

V charging network Fastned has installed its first 350kW stations as it gears up for future charging demands. Developed by technology group ABB, the stations bring seven times higher output than today’s rapid chargers – and 100 times faster than home chargers – along with a modular design. They’re also claimed to be the world’s first‐ever fast chargers to be CE certified by an independent party and approved for consumer use. The stations introduce a new design with a roof of glass solar panels and sustainable wood that also offers higher vehicle clearance. The first 350kW station is located on the A8 highway near Amsterdam and will be followed by a further 10‐20 stations in the Netherlands, along with a number in Germany, while the UK is expected to receive its first station at the end of this year.

in brief Tritium expands into Europe Australian EV charging specialist Tritium has opened a new sales, service, training and testing facility for Europe in Amsterdam. The irm said it would target the leet, workplace, public transport, multi‐residential and ‘on‐street’ public charging sectors, having already taken 20% of the market in Western Europe.

V2G trial in Amsterdam Charging solutions provider NewMotion has installed V2G‐charge points in Amsterdam under a new pilot with grid company Alliander, technology company Enervalis and innovation platform Amsterdam Smart City. Stations are available at a number of public locations, as well as at the of ices of accounting irm PwC and at a large sports facility.

Pre-orders start for Polestar’s debut plug-in hybrid The Polestar 1 plug‐in hybrid coupé is now available to pre‐order with a fully‐ refundable €2,500 deposit in 18 coun‐ tries. Based on the same platform as the Volvo S90, V90 and XC90, the Polestar 1 offers 600hp, 1,000Nm of torque and four‐wheel drive. Limited volumes will be available.

eMotorWerks sets up European HQ

in numbers

US charging point manufacturer eMotor‐ Werks has set up new European head‐ quarters as it looks to drive take‐up of vehicle‐to‐grid technology. The Cali‐ fornia‐based irm, which was acquired by Italian energy company Enel four months ago, has established headquar‐ ters in Berlin, Germany, along with of ices in London and Paris.

650km

Claimed range of Volkswagen I.D. Vizzion luxury saloon concept shown at Geneva.

Source: Toyota

Number of Toyota Mirai hydrogen fuel cell electric vehicles being deployed by the Metropolitan Police Service, marking its first zero-emission response vehicles.

Source: Volkswagen

internationalfleetworld.com / 15

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The ŠKODA 4×4 range with its intelligent all-wheel drive oﬀers great traction and stability in any driving condition. The sophisticated system constantly judges the terrain under each wheel and rearranges the power distribution within milliseconds, without you ever noticing it. So whatever your needs, you can stick to a ŠKODA while it sticks to the road. www.skoda-auto.com

SIMPLY CLEVER

Combined fuel consumption and CO2 emissions according to the legislation of the concerned country

ANALYSIS Residual values

Remarketing notes Skoda’s first SUV, the Kodiaq goes under the microscope. By Andreas Birklen.

What the manufacturer said at launch:

About the residual value grades

“With the Skoda Kodiaq, we are striking out in a new direction and opening up new markets. With our ﬁrst large SUV, we are conquering a new segment for the brand – and new customer groups. Our new addition to the Skoda model range is truly as strong as a bear: it makes the brand even more attractive thanks to its concept, striking design and as the ﬁrst Skoda that has the option of always being online and thereby offering more comfort, safety and real‐time information.”

The residual value grades assess the residual value perfor‐ mance of the car model in question. Additional to the grades, a short statement addresses some of the cars characteristics or other factors, which are relevant to its residual value performance. The residual value grades are calculated accord‐ ing to their residual value percentages and the monetary depreciation within three years after the purchase as a new car, considering a common mileage for the respective segment. The performance is put in relation to the residual value performance of competitor models.

What BF Forecasts say now:

About BF Forecasts

To give an interpretation on the different Kodiaq residual values in different countries, it all comes down to German manufacturers. In Germany, most people tend to buy German manufacturers and – if it has to be one of the Volkswagen Group – buyers prefer the “original” rather than the different VW Group “spin‐offs” such as Skoda and Seat. This applies for French customers too, only vice versa. French buyers have a huge aﬃnity to German brands and Skoda has enough German “genes” to count as a German brand. So what is Skoda then? Well, everyone is right, somehow. The Kodiaq is not a Tiguan, but comes with so much identical parts that in the end it is a VW built in the Czech Republic. But there is even more about Skoda: handling, driving, quality and in case of the Kodiaq a lot of “simply clever” solutions such as the hidden ice scraper and umbrella, the removable ﬂashlight in the luggage room or the formidable edge protection for the doors which slides out automatically whenever you open them.

BF Forecasts is an independent supplier of accurate and trans‐ parent residual value forecasts as well as used car value data for the past and current used car market. BF Forecasts has been providing such data to leasing companies (both captive and non‐captive), OEMs, NSCs, major company ﬂeets as well as to insurance and investment companies inside and outside of Europe since 1998. RESIDUAL VALUE GRADES 10 9 8 7 6 5 4 3 2 1 France

Brand: Skoda Model: Kodiaq Available since: 2017 Prices from: (incl. VAT) Engines:

France

Germany

Spain

€25,300

€26,550

€26,360

Petrol

Diesel

125hp

150hp

190hp

180hp*

Text and data: bähr & fess forecasts GmbH ( Ø- Values; Trade; 36; Mon; 60TKM;11-2017) *Only available in Germany and Spain

18 / internationalfleetworld.com

Germany

Spain

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INTERVIEW Philippe Bismut, CEO, Arval

Global thinkers Arval, under chairman and CEO Philippe Bismut, is transitioning from a funding company to a mobility provider. Curtis Hutchinson met him in Paris as the company launched an ambitious suite of global services.

t might be Europe’s biggest leasing company, but Arval is repositioning itself as a mobility solutions business offer‐ ing a plethora of new services aimed at fast tracking its transition. The new Arval is good news, because businesses will potentially beneﬁt from better ﬂeet services and the abil‐ ity to improve their HR offering to employees. Arval’s CEO, Philippe Bismut, has a clear focus on where he wants to take the business he has led since 2010. “We do not see ourselves as a funding company and clients don’t see us as a funder; we are a service company. Our proposition is around the usage of the vehicle.” The breadth of the new services (see panel), which are already being rolled out across multiple markets, is probably the most ambitious in Arval’s history and will see it expand beyond its traditional B2B remit by offering mobility solutions to consumers, starting with employees of existing clients who do not run company cars. As part of this B2C offering it is also targeting staff within

20 / internationalflfeetworld.com

Arval, which employs 6,500 people in 29 countries as well as its sizeable BNP Paribas parent, which has a headcount of 192,000 employees in 74 countries. Last year Arval saw big growth across its operations with its global ﬂeet increasing 7.4% to 1,103,835 units. The brand is targeting further growth to 1.3 million units by the end of 2020. The business is truly global with operations in 29 coun‐ tries across Europe, Latin America, China and India. Arval’s largest market is France where its leased ﬂeet totals 304,717 units, followed by Italy (184,677) and the UK (161,418). For Bismut, the latest announcements signal that it’s all change for Arval in what is both a clearly thought out and executed strategy across all its international markets. “We are ready to make a new strategic move as a mobility solutions company; the move into the consumer market will be a change in scale for us,” he says. “Until now our focus was to supply company cars for corporate organisations but now we have a

The move into mobility solutions Arval’s repositioning as a mobility solutions company is based on the launch of an ambitious range of services and products covering five main areas: Arval For Me provides non‐company car drivers access to Arval’s established network covering repair and maintenance, relief cars, pick‐up and drop off. Initially launched in Italy, Spain, UK and France, Arval plans to make it available in all markets across the world. much wider target: the individual. In our client’s businesses there are more employees than company car drivers, but they also have the need for a car. Our new ambition is to address this wider market.” Bismut’s background French‐born and a graduate of the Massachusetts Institute of Technology, Bismut’s early career in data processing manage‐ ment has given him an invaluable first‐hand appreciation of the necessity of having a single digital foundation across the group. “Since the beginning of my career, I have always believed that digital technology would be an enabler of inno‐ vation and creation and that software would open infinite possibilities,” he explains. Consequently, Arval has invested heavily in delivering a new and evolving IT and digital infrastructure to share across the business making it ideally placed to operate on a truly global basis. With different markets sharing the same platform, services developed in one market can easily be launched in another. Bismut cites the example of Italy, which has an under‐devel‐ oped fleet market, leading Arval to establish a strong presence in the personal leasing area. This made Italy the perfect place to trial the pivotal Arval For Me service, offering access to vehi‐ cles to non‐company car drivers within client organisations, as well as Arval Car Sharing, a digitally‐led alternative for firms running pool cars. “Italy is an internal lab for many initiatives. It was the first country where we rolled out our full IT and digital infrastruc‐ ture and for that reason they are slightly ahead of the game, internally they are around six months ahead of other coun‐ tries, explains the Arval man. “Also, as a result of a lack of a strong network of service providers, Arval Italy has managed the relationship with the driver end to end with a network of logistics that we control, as a result we had the opportunity to pioneer new services in Italy more so than other countries.” Future thinking Thinking locally but acting globally is at the heart of the Arval plan to become a mobility provider as the company opens itself up to a massive new customer base which should help it achieve its ambitious 2020 numbers. But, that’s just the start, where does Bismut see the company in five years’ time? “In theory there will be one Arval brand that we don’t have today as it is just in its infancy,” he says.

Arval Car Sharing is an alternative pool car service, for business and private usage, providing employees with access to a car for a pre‐reserved period. Initially trialled in Italy it will be progressively deployed throughout Europe. Arval For Employee is designed for Arval’s client’s staff and covers salary exchange, car leasing, leaver offers as well as Arval Car Sharing and Arval For Me. Tailored on a country basis it will debut in France, UK, Spain, Italy, Germany, Belgium and the Netherlands. My Arval is a full digital suite with a web portal for ﬂeet managers and an app for drivers. The service is already available in 23 countries and will be rolled out to all 29. Electric Vehicle is an extension of Arval’s existing leas‐ ing options on EVs based on a new partnership with Renault, Nissan and NewMotion but with added services such as work and domestic charging point installation. It will be launched in France, followed by the UK, Belgium, Norway (a new market for Arval) and the Netherlands with a further nine countries going live in Q2 2018.

“We are treading into the consumer market. Before, the core business of Arval was corporate but several years ago we set up the SME Solutions division with a specific purpose to take the same value proposition we were offering corpo‐ rates but make it simple, efficient and easy to use and install for small businesses. “We now have a third leg, which is our consumer proposi‐ tion. That will be the main difference. This new business will make the existing business progress a lot. In many other sectors when you launch into the consumer market then there is a positive effect on the corporate business. “We still have some way to go in our digital transformation. The foundation of our IT systems is the My Arval reporting but we have another set of internet projects underway which is basically a full reengineering of all our processes end to end including the drivers of the networks. In ﬁve years, let’s say, we will clearly be a new company.”

internationalfleetworld.com / 21

D E CISI O N S , D ECI S I O NS . INTRODUCING THE JAGUAR AND LAND ROVER RANGES FOR BUSINESS Efficiency or performance? Ride comfort or driving dynamics? Connectivity or capability? Choosing vehicles for your fleet is a huge responsibility, but who said you can’t have it all? The Jaguar and Land Rover ranges offer uncompromised solutions for every fleet. Featuring our innovative InControl infotainment system and state-of-the-art Ingenium engines, our vehicles deliver everything your business demands. And with 104* derivatives below 130g/km CO2, the only decision you need to make is which vehicle to test drive first.

ﬂeet-business.jaguarlandrover.com

104 models as of December 2017. Listing based on EU offer, all models and speciďŹ cations are market dependent, please check with your local retailer.

FEATURE Remarketing

CENTRE

STAGE

BCA’s new European CEO Jean-Roch Piat talks to Curtis Hutchinson about how the business is delivering a cross border remarketing service for fleets.

or companies operating large vehi‐ cle fleets across different regions the ability to centralise the remar‐ keting of these vehicles can make a significant difference to bottom lines. One company that recognises this need and has successfully built it into its DNA is BCA Marketplace. Although set up and based in Great Britain more than 70 years ago to serve the domestic UK market, the business now operates 50 centres and remarkets

24 / internationalfleetworld.com

more than 1.3 million used vehicles every year. It is active in 10 countries: the UK; France; Portugal; Spain; Germany; the Netherlands; Switzerland; Denmark; Italy and Sweden – making it Europe’s largest vehicle remarketing company. Heading up the business is Jean‐Roch Piat, BCA divisional CEO for Europe, who has been with the group for more than 10 years, having been promoted to this position in January 2018 from chief operating officer – remarketing Europe.

Prior to joining BCA in 2007 he was the general manager of Summit Motors, the French dealer group. Before that, he was the general manager of Mazda in Switzerland, gaining valuable experience of how both retailers and OEMs approach remarketing.

European harmony Piat maintains the scale of BCA’s European operations makes it better placed than anyone else to centralised remarketing

programmes for businesses operating across multiple borders. “There has always been an aspiration of international businesses to leverage the potential of the large portfolio of 44 different European markets, which offer additional demand and arbitraging possibilities,” he says. “However, those businesses have found out that being a true international remarketing player, in an efficient and safe way, is much more complex than it initially appears.

Differences in languages, regulation, prod‐ uct speci ication and taxation bring their own issues, alongside logistic demands that require vehicles to be shipped quickly from one point to the other. Piat believes there is a willingness amongst international vendors to engage in international remarketing programmes. He also maintains that the move towards centralised disposal strategies has been helped by buyers willing to purchase across borders. This

“There has always been an aspiration of international businesses to leverage the potential of the large portfolio of 44 different European markets.” → internationalfleetworld.com / 25

FEATURE Remarketing

→

CENTRE STAGE measure, he adds, is helping find a ready market for de‐fleeted vehicles from daily rental and leasing companies. “Buyers are quickly adopting different purchase patterns and sourcing from multiple markets. This is profoundly transforming the European market and providing additional remarketing opportunities for vendors. “Cross‐border sales are a regular part of the BCA programme across Europe, so there is an established infrastructure that fleet sellers can tap into,” explains the BCA man. “This framework provides solutions to the complex issues of the import/export process, language differ‐ ences, national and pan‐European regu‐ lations and local and international tax requirements. “In the corporate world, one of our flagship partners is Hertz, which has been among the first international fleet owners to leverage BCA’s European foot‐ print, and is increasingly doing so.”

Much more to come Piat says BCA is now in the develop‐ ment stage of rolling out similar services to a “large number” of lease companies, fleets and international dealer groups. “The untapped potential is huge,” he teases. As BCA was established and grew in the UK before expanding its operations into continental Europe, Piat points to the many differences and similarities in the way the remarketing model has evolved. Clearly lessons learnt in the UK are being applied across the continent as European dealers have come later than their British counterparts to the value of sourcing and retailing good quality used car stock, especially from fleet operators. “The key difference lies in the matu‐ rity of the dealer model in the UK,” he explains. “The vast majority of UK deal‐ ers have adopted a high stock rotation model, where retail vehicles are churned on 45, 60 or 90‐day timescales. This

PSA GROUPE A REMARKETING CASE STUDY

n internal review of the remar‐ keting activities across PSA Groupe’s European business resulted in the identi ication of the need for a service to handle the remar‐ keting of more than 240,000 cars in 10 markets. The group identi ied the need for optimising and increasing the value of its remarketing portfolio and inally opted for the MOVE platform from RMS Automotive, a subsidiary of US giant Cox Automotive. MOVE now manages and remarkets the vehicle inventory across PSA’s Peugeot, Citroen and DS brands by linking defleet, wholesale and retail activities while also providing end‐to‐ end inventory reporting. The improvements in process efficiencies saw an increase in net returns on PSA asset values and a 40% increase in stock rotation in the first two years. Christian Vanoni, head of interna‐ tional used car wholesale operations

26 / internationalfleetworld.com

for PSA Groupe admits PSA’s remar‐ keting process was in need of an overhaul. “The problem we had was we couldn’t publish all of our stock at the same time to different buyer types in various sale sessions and as a consequence we were holding too much stock and the financial losses weren’t acceptable anymore.” After a tendering process PSA signed a remarketing agreement with RMS Automotive and integrated the MOVE platform into its IT system. “It took us roughly 12 months to roll it out across our seven major European countries, 10 countries are live now with all three brands of the PSA Groupe and we can register over 430,000 transactions,” reveals Vanoni. “MOVE is a major contributor to reducing our stock levels. Before MOVE PSA was strongly direct sales orientated. After two years we could reach a ratio of 50% of online sales.”

focused, professional approach encour‐ ages them to invest more of their best people and resources in the growth of their used car business.” Pat maintains that this system allows the fleet owners to count on a reliable level of demand, supported by a very efficient exchange, securing liquidity. As a result, the UK fleet owners and retail‐ ers are intensively using value added services such as efficient reconditioning, which will contribute to even faster churn and dealer profit. “In contrast, European dealers, who have lived too long under the block exemption rule – allowing them to make a living from sell‐ ing new cars and servicing them – are in catch up mode. They are now seeking support of their goals to retail used cars swiftly, efficiently and profitably. BCA is focusing on supporting modern retail‐ ers, helping them to master the basics and to grow quickly, thus leading the consolidation of the industry.

Investing in growth BCA has made considerable investments in offering Euro‐ pean fleets a one‐stop shop service with European CEO Jean‐Roch Piat making it clear that this successful strat‐ egy will continue. “BCA is focusing on the creation of the first, largest and easiest to use marketplace in Europe and is devoting significant resources to this initiative. This implies a thorough change in the way we do business, as well as a willingness to invest in the creation of new services such as an international delivery network. “We have progressed quickly with this and have seen a rapid increase in the share of cross border units which suggests we are providing what the market wants,” he adds. “This process, in turn, triggers the willingness of international vendors to engage in international remar‐ keting programmes with BCA.”

Managing the marketplace “Piat believes the key services for Euro‐ pean dealers focus on enabling the part‐ exchange process and making it easier to source stock – which can be through discrete online marketplaces managed by BCA, on behalf of the OEMs or through our One Europe marketplace. “The other major opportunity is to help dealers improve their churn,” he furthers. “Services such as recondition‐ ing are less developed in Europe at this stage, but we are quickly progressing with high‐speed delivery throughout Europe for example, as this is a key to a

profitable business for our buyers.” However, any successful remarketing channel has to factor in the all‐impor‐ tant role of digital marketing which has transformed the way used cars are brought to market,” he says. “The Euro‐ pean market is increasingly digital, and the number of new online retailers is rising sharply. They require support with imagery and order fulfillment, or to streamline the part‐exchange process and BCA is delivering services in these areas. “It is less a case of ‘this channel versus

‘that channel’ or ‘the European way versus the UK model’, and more about getting continual exposure across a range of routes to market and ensuring the right buying power is in place. In addition, there needs to be the logistics and tech‐ nical services in place to support the buying platforms, particularly when cross‐border trade is involved.” Remarketing is an increasingly sophis‐ ticated business and BCA is clearly look‐ ing at ways at delivering the best possible disposal services to companies operating across multiple borders across Europe.

internationalfleetworld.com / 27

FLEET FOCUS USA

US well prepared for possible stormy times ahead Dick Dennis, Autorola USAâ&#x20AC;&#x2122;s country manager, shares his thoughts on how the American markets for new and used car and light trucks are faring under the Trump administration.

28 / internationalfleetworld.com

he USA new car and light truck market hit 17.25 million units in 2017, a 2% decline from the 2016 record year of 17.55 million sales. This sales volume was supported by big incentives from the OEMs, along with the increasing GDP (recently up 2.6% from the third to the fourth quarter 2017). Under the Trump administration’s business‐oriented policies which have focused on reduced regulation and major tax reform, GDP is expected to strengthen and positively impact all segments of the economy. However, these OEM incentive levels aren’t sustainable, with the predictions for the new car market to fall slightly in 2018 as OEMs aim to increase their pro itability in place of keeping sales volumes arti icially high. The current forecast is for US light vehicle sales to range between 16.7 million and 16.9 million units. The high demand from consumers for used SUVs particu‐ larly means this sector accounts for half the car and light trucks sales. Used demand and prices also are strong, partic‐ ularly for light trucks, SUVs and crossovers.

RETAIL LEASE RESURGENCE One trend that continues is the strength in new retail leases. Some premium brands are underwriting 60‐70% of their new light vehicle sales on retail leases, but generally across the market about 30% of light vehicles sold in the USA are acquired on a personal lease. While this trend spells good news for OEMs, it isn’t such great news for used residual values. Most recently, Decem‐ ber’s used market values returned to their normal (i.e. post Harvey and Irma hurricane impact) to a 2.5% decline for cars, while prices for SUVs and crossovers increased by 0.3% Off leases from the retail sector increased 23% from 2015 to 2016 and by 17% from 2016 to 2017. These high volumes coming back into the used market saw used prices fall by 3% during 2017, but predictions are that off leases will increase by just 8% year on year the feel is the used market is getting back under control. A total of 39 million used cars were sold last year with 2018 likely to see that number approximate the 40 million barrier despite less retail off leases coming to the market. A factor in luencing this higher number is due in part to the effect of the new tax reform, which increased take‐home pay for many Americans.

internationalfleetworld.com / 29

→

FLEET FOCUS USA

→

USED FEARS UNFOUNDED There were major concerns in 2016 and 2017 that there would be ields full of $99 deposit and $99 a month cars coming back from lease, but the general growth of the economy and the fall in unemployment levels have helped create a strong demand for 4‐5 year old used vehicles. On this basis it’s a pretty good time to be a new and used car retailer in the US. Technology is playing a big part in a used car retailer’s life. Up to one in three used cars are now being purchased from the physical auctions by online buyers which shows retailers are becoming more savvy than ever as they spend less time at the auction and more time selling cars to customers. A growth in real time used vehicle insight software such as the Autorola INDICATA system means dealers can identify the cars most in demand locally and what they are being sold for. This allows dealers to buy used cars in a much more strategic fashion and ultimately sell more used cars, reduce stocking days and improve pro itability.

30 / internationalfleetworld.com

Another focus for OEMs in the past year or two is to force fewer cars into the rental sector on buy back schemes. Volumes of buy back cars have reduced signi icantly, with rental companies having to buy more of their own cars, which are kept in rental service longer. Consequently, rental companies are keeping these ‘risk’ cars up to 18 months of age before replacing them. That compares with manufacturer buybacks which can range from four months to 12 months. This move by the OEMs to restrict buyback slide has been made as they seek to not only make more pro it per unit but also as a means of not distressing the used car market. REASONS TO BE CHEERFUL A nice mix of four to 18 months ex‐rental cars is a much better way of maintaining strong residuals and with used dealers looking to buy more cars these lower age and mileage cars are generally inding buyers very quickly. The leet sector continues to feed the used market, gener‐ ally with ive to seven‐year old stock. Leasing companies are also using newer software tools to understand the best replacement cycles for their clients with a view on maximising disposal ef iciency, reinforcing the importance of insights on the remarketing process. So 2018 looks like another positive year for the US automo‐ tive industry with the OEMs continuing to do a volume and pro it balancing act.

Information provided by FocusEconomics

US economics C

onsumer prices increased 0.5% from the previous month in January 2018, following December 2017’s upwardly revised 0.2% rise (previously reported: +0.1% month‐on‐month), coming in above analysts’ expecta‐ tions of a 0.3% increase. A surge in energy prices contributed to January’s reading, with prices of gasoline and fuel oil jump‐ ing 5.7% and 9.5% on a month‐on‐month basis, respectively. Meanwhile, food prices rose 0.2% for the second consecutive month. Despite January’s pick‐up, in lation remained stable from December at 2.1%. Core consumer prices, which exclude volatile items includ‐ ing food and energy prices, rose 0.3% from the previous month in January, slightly above the 0.2% increase that markets had expected and the downwardly revised 0.2% month‐on‐month rise recorded in December. The print was largely driven by strong price increases for medical care, transportation and apparel. Notably, core inflation was unchanged at December’s 1.8% in January, below the Federal Reserve’s 2.0% target. It is worth noting that prices rose in January in nearly all components that comprise the consumer price index (CPI), which analysts view as a strong sign that in lationary pres‐ sures are taking hold. January’s CPI results, coupled with the upbeat wage growth data released earlier this month, will fuel expectations of a rate hike at the upcoming FOMC meeting in March, as largely expected by FocusEconomics panelists. Incoming data suggests that economic growth moderated slightly but continued at a healthy clip early this year. In January, employment data showed that solid hiring activity carried over from last year, which fuelled an acceleration in annual wage growth to its highest igure since June 2009. Strong employment gains saw consumer sentiment moving further into positive territory in the month, while data continued to point to robust momentum in the domestic economy. Weak

spots in January data, however, included sequential declines in retail sales and factory output. On the political front, Congress enacted a budget agreement on 9 February that increases discre‐ tionary spending caps for FY 2018 and FY 2019 and suspends the federal government’s debt limit until March 2019. An expected increase in federal outlays resulting from the budget deal should support growth this year and the next, an effect that will be compounded by the tax rewrite approved last December. Household spending is also projected to bene‐ it from a sturdy labor market and solid housing gains, while business investment should remain resilient on iscal stimu‐ lus and stronger global growth. FocusEconomics panelists see GDP expanding 2.6% in 2018, which is unchanged from last month’s estimate. In 2019, growth is seen moderating to 2.2%. Despite increased market volatility, US consumers were particularly upbeat in February as a result of solid job prospects and a more positive assessment of the economy following the Republican tax cuts. The Conference Board’s monthly consumer con idence index rose to 130.8 in Febru‐ ary, up from a revised 124.3 in January and the highest igure since November 2000. The print came above market expecta‐ tions of a more moderate increase to 126.4 and keeps the index comfortably above the 100‐point threshold that sepa‐ rates consumer optimism from pessimism. The solid increase in the headline reading re lected consumers’ improved appraisal of present‐day conditions. Compared with the previous month, more consumers responded that business conditions are good, while the percentage that reported a deterioration in current business conditions declined markedly. Similarly, views on the labor market were robust, with the labor differential—the difference between the percentage of respondents who state that jobs are plentiful and those who say that jobs are hard to get—widen‐ ing signi icantly to 24.7 in February from 20.9 in January.

internationalfleetworld.com / 31

PROFILE Nissan

Electric momentum From electric cars to popular crossovers, Nissan has observed a miraculous recovery from its near-bankruptcy in 1999. Today, it is part of the worldâ&#x20AC;&#x2122;s largest automotive alliance, selling the lionâ&#x20AC;&#x2122;s share of 10.6 million units.

32 / internationalfleetworld.com

Manufacturer Nissan Total key region sales FY2016/17 5,642,381 Headquarters Yokohama, Japan Global market share 2016 5.49% (est.) No. of models 24

view

from the top

How things have changed:

“

In 1999, when I arrived to Japan, Nissan was on the brink of bankruptcy, sell‐ ing 2.3 million cars, and owing €16bn ($20bn) in debt. Today, we sell 5.6 million cars, with over €12bn ($15bn) in cash. Nissan is also a core member of the largest automotive alliance in the world. We now have every advantage, and no handicap. There is no limit to what we can achieve,” Carlos Ghosn, chairman of the board, Nissan Motor, said in March 2017. Today, Nissan’s global headquarters in Yokohama, Japan, manages operations in six regions: Asia & Oceania; Africa, the Middle East & India; China; Europe; Latin America; and North America. Nissan has a global workforce of 247,500 people and has been partnered with French manufacturer Renault since 1999, the same year as Carlos Ghosn took the helm. In 2016, Nissan acquired a 34% stake in Mitsubishi Motors and today Renault‐Nissan‐Mitsubishi is the world’s largest automotive partnership, with combined annual sales totalling more than 10 million vehicles a year. Nissan now enjoys a healthy European market share of 4.0% where the top four models are the Qashqai, Juke, X‐Trail and Micra; indicating the market acceptance and popularity of SUV and crossover vehicles – an area that Nissan helped pioneer and was earlier than most in recognising its importance. “The improvement in our global crossover and SUV sales made a signi icant contribution to Nissan's growth in 2017,” said Daniele Schillaci, executive vice president for Nissan. Nissan's global crossover and SUV sales increased more than 12% in 2017 to more than 2 million vehicles, driven by the all‐new Nissan Kicks small crossover, the Rogue, X‐Trail and Qashqai compact models and a refreshed Armada full‐size SUV. Over the past ive years, the premium midsize crossover segment has quadru‐ pled in China and more than doubled in the US. Overall, Nissan's record crossover and SUV sales in 2017 were led by a 94% improvement in Latin America and 16% improvements in both North America and China. The Nissan Rogue, X‐Trail and Qashqai platform mates generated more than 1.38 million sales worldwide in 2017, an increase of 10%, and ranked as Nissan's No. 1 platform by volume. In total, Nissan increased global crossover and SUV volume by nearly 230,000 vehi‐ cles last year. The Kicks bene ited from its irst full year of sales in Mexico, Latin America and China, reaching nearly 109,000 sales worldwide. The small crossover will launch this year in the US and Canada and is expected to further accelerate Nissan's crossover momentum.

Nissan Global sales, by territory Territory

FY2016

FY2017

% change

Japan

572,581

557,490

-2.6%

2,010,735

2,129,591

+5.9%

753,621

776,435

+3.0%

1,370,275

1,252,491

+9.4

835,774

808,590

-3.3%

5,425,202

5,642,381

+4.0%

North America Europe (inc. Russia) China Other markets Total

José Muñoz, chief performance officer, Nissan Motor Corporation Performance: Last year Nissan set new records for global sales and production selling more than 5.8 million vehicles worldwide. We also set a new sales record in Europe with more than 762,000 vehicles sold. We also surpassed another great milestone with production of the three millionth Qashqai at Nissan's Sunderland plant in the UK. Electrifying: Today, the Nissan Leaf is the world's best‐selling EV with more than 300,000 sold. Customer satis‐ faction rates for the Leaf are also among the highest in the industry, with a 94% overall approval rating. Last September, we held the world premiere of the latest‐generation Nissan Leaf. The early customer reac‐ tion has been very strong. Before the car even appeared in showrooms we received 13,000 customer orders and we should surpass 20,000 orders in just ive months. Right now, we are selling a Leaf approximately every 12 minutes here in Europe. New opportunities: We have a part‐ nership in France with OK Wind, using solar trackers and energy storage solu‐ tions. This partnership could reduce energy costs for farmers by up to 75%. Nissan has entered a partnership with Eon to explore new commercial opportunities for vehicle‐to‐grid services, renewable energy generation and storage solutions. These will be deployed in the next few years. Growth: Last year, Nissan also launched Nissan M.O.V.E. to 2022. With it, we will achieve sustainable growth and lead the technology and business evolution of the automotive industry. 2017 was also another record‐breaking year for our global alliance with Renault and Mitsubishi. Together, the member companies of the Alliance sold more than 10.6 million units, making it the number one automotive group worldwide.

→

internationalfleetworld.com / 33

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Where are they made?

Manufacturing plant locations

1 2

North America Nissan Smyrna Plant, Tennessee, USA Nissan Canton Plant, Mississippi, USA

6 9

21 18-19

2 1

17 22

4 31

12 3 4 5

South America Nissan Mexicana, Aguascalientes Plant, Mexico Nissan Mexicana, Cuernavaca Plant, Mexico Nissan Do Brasil, Resende Plant, Brazil

25 20

7 8 9

FIN fleet in numbers

1.38 million Nissan Rogue, X-Trail and Qashai sales in 2017.

12%

Nissan’s crossover and SUV sales increase in 2017.

Every 12 minutes a new Leaf af is is sold. d 34 / internationalfleetworld.com

Europe Nissan Sunderland Plant, UK Nissan Barcelona Plant, Spain Nissan St Petersburg Plant, Russia AutoVaz, Togliatti, Russia

30 28-29

Africa Nissan Motor South Africa, Pretoria Plant Nissan Motor Egypt, Giza Plant Stallion NMN, Lagos, Nigeria

13 14-16 25

26-27 27

23-24

Japan Nissan Motor Fukuoka Plant, Japan Nissan Motor Oppama Plant, Japan Nissan Motor Tochigi Plant, Japan Nissan Shatai Co. Ltd., Kanagawa Plant, Japan

Asia Dongfeng Nissan Huadu Plant, China Dongfeng Nissan Xiangyang Plant, China Dongfeng Nissan Zhengzhou Plant, China Dongfeng Nissan Dalian Plant, China Zhengzhou Nissan, Henan, China Yulon Motor Co. Ltd., Miaoli County, Taiwan Nissan Motor (Thailand), Bangsaotong Plant 1 Nissan Motor (Thailand), Bangsaotong Plant 2 Nissan Motor Indonesia, Jawa Barat Plant Tan Chong Motor Assemblies, Kuala Lumpur, Malaysia Tan Chong Motor Assemblies, Selangor, Malaysia Univation Motor Philippines, Laguna, Philippines Universal Motor Corporation, Manila, Philippines TCIE Vietnam Pte. Ltd, Danang, Vietnam Renault Nissan Automotive India, Kancheepuram District Plant Renault Samsung Motors, Busan Plant, Korea

Electrifying the future

s part of Nissan M.OV.E. to 2022, the company plans to extend its lead‐ ership in electric vehicles, symbolised by the world's best‐selling all‐ electric vehicle in history, the Nissan Leaf. Following its successful launch in Europe, Japan and North America, Nissan has since con irmed the Leaf will be introduced into eight Latin American markets during the next iscal year. Under the title, “Nissan Intelligent Mobility” the company aims to offer auton‐ omy, electri ication and connectivity and contribute to “improving the future of mobility”. To achieve this, Nissan is exploring technology at the fringe of science iction, with development in autonomous driving, vehicle‐to‐grid (V2G) and even brain‐to‐vehicle (B2V). B2V interprets signals from the driver’s brain to assist with driving and to help the vehicle’s autonomous and manual systems learnt from the driver. The technology promises shorter reaction times and systems that adapt to maximize driving pleasure. For technology that can be taken home today, Nissan introduced ProPilot with the new generation Leaf in late 2017 and has since introduced it to other vehi‐ cles including Qashqai. ProPilot is a set of technologies offering low‐level auton‐ omy, such as lane keep assist and fully autonomous parking. Nissan has already sold more than 80,000 ProPilot equipped vehicles, indicating its popularity. The Nissan Leaf is, of course, not the only electri ied vehicle in Nissan’s line‐ up. The e‐NV200 – a battery powered electric version of the popular NV200 panel van – is proving a popular choice for leets and last‐mile delivery compa‐ nies. More recently, Nissan introduced ePower in the Note, initially for the Japanese market only. Following its popularity, Nissan has introduced the Serena ePower, also for the Japanese market, at the end of February this year. EPower offers 100% electric drive, supported by a small petrol generator that supplies electricity to via a small battery. The result is a relatively light electric vehicle that can be driven with petrol car convenience. Furthermore, Nissan recently took Alliance partner Renault’s place in Formula E, which the company says will be used to directly influence its future electric vehicles, as hinted by the IMx Kuro concept shown at the Geneva Motor Show. As for the future of fleet at Nissan, the company unveiled a new structure in the UK at the beginning of 2018, to make itself simpler for businesses of all sizes to engage with its range of cars and vans under its new “We Mean Busi‐ ness” strategy.

Nissan fleet model range

370Z

Altima/Teana

Cube

Dayz/Roox

Variants: Coupe, Convertible Markets: Europe, Asia, Africa, North America, Oceania. Fuel: 10.5-11.2l/100km CO2: 245-262g/km

Variants: 4dr sedan Markets: North America, China. Fuel: 7.6-9.0l/100km* CO2: 175-207g/km*

Variants: 5dr hatch Markets: Japan Fuel: 5.3l/100km CO2: 122g/km

Variants: Kei car Markets: Japan Fuel: 4.5-4.9l/100km* CO2: 103-113g/km*

Elgrand

GT-R

Juke

Kicks

Variants: MPV Markets: Japan Fuel: 9.3-11.1l/100km* CO2: 214-255g/km*

Variants: Coupe Markets: Global Fuel: 11.8l/100km CO2: 275g/km

Variants: SUV Markets: Europe, Asia, Africa, North America, Oceania. Fuel: 4.0-7.3l/100km CO2: 104-172g/km

Variants: SUV Markets: Asia, North America, South America Fuel: 5.6-5.9l/100km CO2: 129-135g/km

Lannia

Leaf

Livina

March/Micra Active

Variants: 4dr sedan Markets: China Fuel: 5.7-6.0l/100km CO2: 131-138g/km

Variants: 5dr hatch Markets: Europe, Asia, Africa, North America Fuel: Electric CO2: 0g/km (tailpipe)

Variants: MPV Markets: Asia Fuel: 6.1-6.3l/100km CO2: 140-145g/km)

Variants: 5dr hatch Markets: Asia, Africa, North America, South America Fuel: 5.7-6.6l/100km CO2: 131-152g/km)

Maxima

Micra

Murano

Note/Versa Note

Variants: 4dr sedan Markets: North America, China Fuel: 6.7l/100km* CO2: 154g/km*

Variants: 5dr Markets: Europe Fuel: 3.2-4.8l/100km CO2: 85-107g/km

Variants: SUV Markets: Europe, Asia, North America, South America, Oceania Fuel: 8.3-10.2l/100km CO2: 193-238g/km

Variants: 5dr hatch Markets: Asia, Africa, North America, South America, Oceania Fuel: 2.7-5.5l/100km* CO2: 62-122g/km*

Pathfinder

Patrol/Armada

Pulsar/Tiida

Qashqai/Rogue Sport

Variants: SUV Markets: North America, South America, Oceania Fuel: 8.6-10.1l/100km CO2: 200-234g/km

Variants: SUV Markets: Asia, Africa, North America, South America, Oceania Fuel: 14.4l/100km CO2: 331g/km

Variants: 5dr hatch Markets: Europe, Asia Fuel: 3.6-5.9l/100km CO2: 94-138g/km

Variants: SUV Markets: Europe, Asia, North America, Oceania Fuel: 3.8-7.7l/100km CO2: 99-178g/km

Sentra/Sylphy

Versa/Almera/Sunny

Wingroad

X-Trail/Rogue

Variants: 4dr sedan Markets: Asia, Africa, North America, South America, Oceania Fuel: 5.2-6.7l/100km CO2: 119-154g/km

Variants: 4dr sedan Markets: Europe, Asia, Africa, North America, South America Fuel: 6.3-8.5l/100km CO2: 145-201g/km

Variants: MPV Markets: Asia Fuel: 5.8l/100km* CO2: 133g/km*

Variants: SUV Markets: Europe, Asia, Africa, North America, Oceania Fuel: 4.9-8.3l/100km CO2: 129-192g/km

converted from test cycles other than NEDC

internationalfleetworld.com / 35

Geneva 2018 Highlights

Six of the best The automotive world headed to Switzerland to get a glimpse of upcoming models and learn about new vehicle technology. Here’ are half a dozen of the many highlights...

Hyundai previewed its future design direction with the unveiling of the ‘Le Fil Rouge’ concept at the Geneva Motor Show. Building on the design DNA from the brand’s Hyundai Coupe Concept in 1974, the Le Fil Rouge (which means common thread) four-door coupé concept displays the new ‘Sensuous Sportiness’ theme that will be used across all future models, from saloons to SUVs. Key features of the concept include proportions based on the goldenratio commonly found in nature, a wrap-around architecture for the interior to create a “calm, spacious and comfortable travel environment” and a panoramic floating display coupled with haptic technology.

The third-generation Kia Ceed Sportswagon, which brings increased boot space to rival models from the next segment up, was unveiled in Geneva. Debuting alongside the upgraded Optima and the sport-inspired Rio GT Line, the new Ceed is wider, lower and longer than the current model, bringing cargo space of 600 litres – up 72 litres from the current model as well as trumping the Ford Mondeo’s 500 litres – along with a lower lip to aid loading, a completely flat boot floor, 40:20:40 split-fold rear seats and increased passenger space.

Hinting at the next Skoda SUV was the company’s Vision X concept car in Geneva. Set to go on sale next year, the production version of the Vision X will enter the burgeoning small SUV/crossover sector and compete against the likes of the Renault Captur, Peugeot 2008, Hyundai Kona and Kia Stonic. Aimed at the traditional ‘lifestyle’ market, the Vision X will sit at the bottom of Skoda’s recently expanded SUV line-up below the Kodiaq and Karoq. The concept car featured a hybrid powertrain – a version of the 1.5-litre TSI Evo petrol engine that can run on either petrol or CNG mated to an electric motor driving the rear wheels. Thus, the Vision X can be driven in front, rear or all-wheel drive guise.

36 / internationalfleetworld.com

There’s a new A6 from Audi and it will feature much of the advanced technology from its bigger brother – the A8 – when it launches in the summer. Taller, longer and wider than its predecessor, the new A6 gets just a subtle design makeover, but more extensive upgrades when it comes to features. Onboard technology includes the latest version of the all-digital MMI touch response infotainment system, which is accessed via two screens and brings more intuitive operation and personalisation options. Head-up display is available too and drivers can also use naturallanguage voice control to access onboard stored data and – in conjunction with MMI navigation plus – data from the cloud. Audi connect online services will also provide carto-X services traffic sign and hazard information.

Fifth fleet meeting

Renault revealed how it thinks shared urban mobility could look in the future with the EZ-GO concept. Outlining how the group plans to have ride-hailing robo-taxi commercial services by 2022 at the latest – enabling it to sell on-demand mobility services – the concept is designed to transport up to six people. It will be fully autonomous and could work through an instant-booking service from an app, or from in-town stations, operated by private or public organisations. The vehicle is built on a platform specifically designed for its electric motor, which is located on the rear axle with the batteries located under the floor. It features a 4CONTROL chassis with 4-wheel steering and active suspension.

After experiencing sales and awards success with its SUVs, the Volvo stand in Geneva was dominated by the new V60 wagon. Sharing the same Scalable Product Architecture (SPA) with the XC60 and the ’90’ series Volvos, the V60 offers a premium interior, more spacious cabin and advanced connectivity options. Reflecting Volvo Cars' industry-first announcement to electrify all new cars from 2019, there are two plug-in hybrid powertrain options as well as regular petrol- and diesel-fed vehicles. The new V60 reinforces Volvo’s commitment to safety with a comprehensive list of safety features that come as standard, including advanced driver-support systems known from the 90 series and XC60, making the new V60 – according to Volvo – one of the safest cars on the road.

Running on the second fay of the Geneva Motor Show was the fifth International Fleet Meeting, where members of the international fleet community gathered. The event provided the perfect opportunity to network with colleagues other markets around the world and to learn about new products and trends in the automotive fleet sector. The first presentation of the day, from Michael Müller, senior director head of mobility and facilities, Daiichi Sankyo Europe GmbH, talked about the new mobility concept of Daiichi Sankyo. The pharmaceutical company provides employees with a mobility budget’, which allows them to choose from a combination of different forms of mobility. According to Müller, this approach benefits both the companies and the environment, as well as the employees. Under the terms of the scheme, the employees are free to choose the mobility budget or, alternatively, to continue driving a company car. The other implication of the scheme has meant that around 25% of Daiichi Sankyo employees do not using company vehicles. Following on from Müller was Marc A. Odinius, managing director of Dataforce GmbH, who gave an insight into the tendencies of the European fleet market, which grew last year and – according to figures from January 2018 – is already 7% ahead of target for the year. According to the latest statistics of Dataforce, SUVs are proving very popular on company fleets – possibly unsurprising given that they represented 30% of total European registrations in 2017. The number of SUV models continues to grow too and Odinius said that by 2022 there would be a total of 127 SUV models, compared with the 78 that were on the market in 2017. There was a brief mention of diesel and while Odinius claimed that “diesel isn’t dead”, there was also the admission that the diesel share had been falling steadily for a while, before a big decline in 2017. At the same time as diesel shares had been falling across European markets, their place had been taken by alternative-powered company vehicles – with Slovakia reporting a 96% increase in the number of fleet EVs and hybrids in the vehicle parc. “The importance of fleets to meet forthcoming emissions standards means that electrification is very important to them at the moment,” commented Odinius, who then posed the question of whether or not the market share of fleets ever rise to 100%. “There is the potential there because of the changes we are seeing in mobility trends,” he offered. “I think it is a possibility but I don’t know when it might happen.” The 6th International Fleet Meeting Geneva will take place again on the seond press day – Wednesday 6th March 2019.

internationalfleetworld.com / 37

Nissan Leaf Is the electric trailblazer still leading the way? Alex Grant finds out. SECTOR Lower Medium PRICE €28,000-€33,000 RANGE 270/378km (WLTP/NEDC) CO2 0g/km

issan says customer feedback directly influenced over 100 improvements made to the new Leaf. So it’s ironic that the most obvious, surface‐level change is predicted to make the biggest difference. With less divisive styling, Nissan is confident that it can sell twice as many this time around. In part, that’s because customers otherwise loved the car. The outgoing Leaf had Nissan’s highest satisfaction and customer retention ratings, and sold in big enough numbers that it’s arguably the household name for electric motoring. Looking a bit less challenging removes a hurdle to getting people behind the wheel – and the improvements aren’t just skin‐deep. It’s not obvious, but this is a heavy update of the outgo‐ ing car, largely to incorporate newer technology. The battery capacity has increased from 30kWh to 40kWh (and there’s an even larger pack still to come) within the same overall dimensions, and the motor produces 150hp instead of 110hp. In diesel terms, it’s equivalent of an upgrade from a typical 1.6‐litre to a 2.0‐litre engine. forward makes electric driving suitable for even more The focus is driveability more than outright performance. It people, and the longer‐range model due next year should doesn’t feel any quicker at low speeds, but the power doesn’t bring it in line with forthcoming rivals. tail off like it used to, which makes for easier over‐ Not all of the advances are EV‐specific. ProPi‐ taking and highway cruising. A stiffer bodyshell, lot, Nissan’s suite of assistance technologies, FLEET FACT softer suspension and Qashqai‐derived chassis debuts on the Leaf offering the usual active lane‐ technology all help shed that slightly top‐heavy keeping and adaptive cruise control functions, feel of the outgoing car. It’s not sporty, but it rides as well as hands‐off, feet‐off parking. The latter is Nissan’s e-Pedal and handles well, and inspires a little more high‐ particularly clever, using the surround‐view enables 90% of speed confidence than its predecessor. cameras to recognise white lines in perpendicu‐ driving to be done lar spaces, but is quite slow to manoeuvre. Increased range is important, too. The bigger with one pedal. battery offers a claimed real‐world range of Motorway assistance is useful too, but it strug‐ almost 300km under mixed conditions, and gled with lane markings and was prone to nearly 350km in town. Both seem realistic, and standard‐fit tweaking the throttle and brakes around other cars. rapid charging can restore 80% of that in around 40 The e‐Pedal is simpler, and far more impressive; it’s essen‐ minutes. While the range isn’t ground‐breaking, every step tially a mode that allows most driving to be done without touching the brake pedal. Lift off the throttle and the Leaf seamlessly combines strong regenerative braking and the disc brakes to slow the car, all the way to a stop. It’s a clever system, and doesn’t take long to become second nature. Otherwise, it feels quite a lot like the old car. Exterior dimensions are almost unchanged, the cabin still seats four adults with a fifth straddling the hump between the rear footwells, and boot capacity is among the largest in the segment. The dashboard is completely new, but there’s still no reach adjustment on the steering wheel. The infotain‐ ment system is also carried over – it's not the most intuitive system on the market, but it does at least now have Android Auto and Apple CarPlay as an alternative. Attitudes to electric cars have changed beyond recogni‐ tion since 2011, and the Leaf has had a large role in that shift. By chipping away at its weaker points, the new one feels well placed to capitalise on growing customer demand – the big difference is, there’s no styling hurdle to overcome before they make the switch.

38 / internationalfleetworld.com

what we think

highlights Combined-cycle range of 270km under new WLTP â&#x20AC;&#x2DC;real-worldâ&#x20AC;&#x2122; conditions (urban: 389km)

The Leaf has been a bit of an EV trailblazer, and this new version easily puts it back up amongst the best. But, with a wide choice of alternatives, and some longerrange rivals in the pipeline, not pushing the boat out on range and charging times feels like a bit of a missed opportunity.

Rapid charging to 80% in 40 minutes, and vehicle-to-grid compatible ProPilot assisted parking and cruise control, e-Pedal single-pedal driving

internationalfleetworld.com / 39

Hyundai Kona

Beneath that bold design, the Kona is a game-changer in waiting, reckons Alex Grant. SECTOR Compact SUV PRICE €17,500-€28,000 FUEL 5.2-6.7l/100km CO2 117-153g/km

urope’s appetite for SUVs shows no sign of slowing The only downside is, it’s quite spec‐sensitive. Those large yet; a record 4.56m were registered across the region wheel arches and the raised ride height leave it prone to last year, according to JATO data, accounting for one looking under‐wheeled, and it’s not overly well suited to in three new passenger cars and a 20% year‐on‐year rise. shades of grey. And, though the option of colour‐coding the So a portfolio of soft‐roaders has become a prerequisite, seat belts, stitching and parts of the dashboard in lime green, neatly filling the gaps between the traditional segments for orange or red sounds gaudy, it does a lot to liven up what’s image and practicality‐conscious drivers. otherwise quite a drab, dark and plasticky cabin. This can be a double‐edged sword. Hyundai is aiming the Hyundai is offering two turbocharged petrol engines from Kona at the supermini‐derived SUV segment, positioned launch. The 120hp 1.0‐litre three‐cylinder is the likely big‐ between the i20 and i30 in its line‐up and competing in an seller; a gravelly‐sounding but lively performer, with a good increasingly crowded part of the market. But, even with spread of pulling power fuel consumption of around newcomers arriving ever few weeks, this 6.5l/100km at highway speeds. Opting up one has some interesting tricks up its to the 177hp 1.6‐litre engine adds four‐ sleeve to help stand out. wheel drive and a seven‐speed dual‐ Importantly, distinctive styling comes clutch automatic transmission, but high on that list. With a hint of Iron Man 153g/km CO2 emissions mean it’s unlikely up front, a choice of bold and two‐tone to be a mainstream fleet choice. colours to contrast against the abundant Alternatives are coming soon; two new black body cladding, and large wheels 1.6‐litre diesel engines with 115hp and pushed out to the corners, the Kona sits at 136hp arrive this summer, the latter with the sporty end of a segment where some four‐wheel drive as an option, and should rivals are more like body‐kitted MPVs. take CO2 under 110g/km. Perhaps even Luckily this hasn’t come at the expense more significant are the two electric of practicality. There’s no sliding rear versions coming later this year, one of bench or folding passenger seat as on which will offer a range of almost 300 some competitors, but the Kona offers miles, which makes this a game‐changer The Kona is an eyespace for four adults (five at a push) and in its segment. catching addition to a a competitively‐sized boot for their In the meantime, it’s a competitive segment where styling luggage. You’ll get bigger suitcases into an addition to a close‐fought part of the i30, but this offers most of the day‐to‐day market. Distinctive, good to drive (if a counts, but diesel and flexibility of a larger hatchback in a little firm over rough surfaces) and with a electric versions can’t smaller overall package. As in the i30, little added practicality for upsizing come soon enough there’s an intuitive touchscreen infotain‐ supermini drivers, it’s got all the right for fleets. ment system with Android Auto and boxes ticked to capitalise on that unend‐ Apple CarPlay app streaming capability. ing SUV demand

what we think

40 / internationalfleetworld.com

Range Rover Velar

If you’ve outgrown your Evoque, the Velar might be just what you need, says Alex Grant. SECTOR SUV PRICE €56,000-€71,000 FUEL 5.4-9.4l/100km CO2 142-214g/km

n 1969, the Velar name signalled a new direction for and 240hp diesels the likely big‐sellers – we tested the Land Rover. A prototype of what would become the latter. Four‐cylinder engines can deprive a luxury car of first Range Rover a year later, it was a step into lifestyle the performance and refinement that suits them best, but off‐roaders; genuine terrain‐crossing ability with the luxu‐ the Velar’s heavily‐insulated cabin shuts out most of the ries of a conventional saloon or estate. Today, Velar brings mechanical grumble of its smallest engines and there’s the Range Rover family to four models and, with no enough muscle from the twin‐turbocharged 2.0‐litre to Defender until 2019, ‘lifestyle’ isn’t a tangent, it’s the core avoid it feeling underpowered. The main grumble is the brand strategy. gearbox; at times over‐keen to shift up, and reluctant to It’s a striking newcomer; more sportwagon than SUV, a downshift, it can slow progress. caricature of the brand’s design cues, stretched as if in a Otherwise, the cabin is Land Rover’s best yet; impeccably motion blur, hunkered over wheels of up to 22 inches and high quality and with most controls moved onto a pair of de‐cluttered so aggressively that even touchscreens. There’s an art to making the door handles retract into the body this work, but it’s lag‐free and intuitive, when they’re not in use. Love it or loathe with two rotary switches selecting it, there’s as much wow‐factor here as different drive modes, media settings there was in the Evoque, at least before and climate functions, depending what’s it became so ubiquitous. on screen. Most Velars also get 4G data‐ Velar fills the gap between the Evoque connected services, including live traﬃc and Sport, though it’s closer in size to and fuel price information, and the abil‐ the latter, and the platform underneath ity to automatically send your arrival is shared with the Jaguar F‐Pace – time to selected contacts. arguably one if its closest rivals, depend‐ On the downside, athletic styling ing on spec. All versions get automatic brings predictable compromises in transmissions and four‐wheel drive, terms of interior space, especially in the unlike the Jaguar, which bumps up the back (not that it’s ever hampered entry‐level pricing, and all except the demand for the Evoque), and even the Striking styling and Range entry‐level trim can be up‐specced to a optional air suspension doesn’t entirely Rover badge cachet are more aggressive R‐Dynamic version, cure low‐speed ride quality on its large good foundations for the cutting large vents into the front wheels. Proper off‐road driving modes bumper. Demand tends to be weighted are optional, too, though it’s unlikely Velar. But, with its focus on towards the top of the range and, given that the target audience will miss them lifestyle customers, twohow plain it looks in low spec, that’s much. Velar had once been the name for wheel drive would have probably a good thing here. Land Rover’s step back on road – and given even broader appeal. Land Rover is offering three petrol almost 50 years on, it’s still taking the and three diesel engines, with the 180hp brand in that direction.

what we think

internationalfleetworld.com / 41

SHOW PREVIEW NAFA 2018

Coming to California? There’s a wide-ranging list of exhibitors and a packed conference schedule for this years’ NAFA Institute and Expo, which takes place on 24–27 April 2018.

aving chosen Florida as its destination last year, the NAFA Institute and Expo heads to Anaheim in California for 2018. Taking place between the 24‐27th April 2018, the event is the largest of its kind in the fleet management industry, offering attendees access to groundbreaking education in fleet and mobility, as well as giving them the opportunity to ‘increase their networking power and learn of new fleet products’. NAFA is the association for professionals who manage fleets of sedans, public safety vehicles, trucks, and buses of all types and sizes, and a wide range of military and off‐road equipment for organisations in North America and across the globe. NAFA’s members are responsible for the specification, acquisition, main‐ tenance, repair, fuelling, risk management, and remarketing of more than 4.6 million vehicles that drive an estimated 50 billion miles each year. NAFA’s members control assets and services well in excess of $100 billion each year. NAFA’s members manage fleets for corporations covering a wide range of manufacturing and service organisations, govern‐ ments (whether local, state and/or federal), and public service entities (public safety, law enforcement, educational institutions, utilities, etc.). Other members serve financial institutions, insur‐ ance companies and non‐profit organisations. Taking place as part of the four‐day event, NAFA Fleet Management Association, the vehicle fleet industry’s largest

42 / internationalfleetworld.com

trade association, will be holding a panel discussion of top auto‐ mobile executives that will reveal the mobility and technologi‐ cal improvements that are in store for fleet vehicles. The lineup includes representatives from Ford, Fiat Chrysler, Toyota and GM. The session, ‘How OEMs are Addressing ‘Mobility' and the Future of Fleet’, is scheduled for the morning of Thursday 26th April and NAFA CEO, Phillip E. Russo, is looking forward to it. “The OEM panel is a consistent favourite among I&E attendees. This year's panel will be especially enlightening, thanks to the rapid growth of autonomous driving technology and the evolution of ‘fleet management’ into ‘mobility management’.” Over the course of the four days of the conference, there will be a keynote address from Jody Urquhart, author of ‘All work and no say’ and other presentations from representatives from: SambaSafety; Leaseplan; INVERS Mobility Solutions and Mondelez International. New for this year are extended hours for the expo, including a ‘happy hour’ after the last conference session had finished on Wednesday. Exhibitors include: Fiat Chrysler; Nissan North America; Agile Fleet Commander; Donlen; Microsoft Bing Maps; Toyota; Ford and American Honda. For more information about NAFA 2018, contact Donald Dunphy at ddunphy@nafa.org

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SMARTER STORAGE

CONNECTIVITY ON THE MOVE

INTRODUCING THE NEW VOLVO XC40 The employees of the modern workforce understand that successful business requires innovation and ﬂexibility. So we created a compact SUV that is just as progressive as they are. With pioneering smart storage solutions and connected services including Apple CarPlay™ and Android Auto, the new XC40 will inspire your drivers’ productivity above and beyond their time in the ofﬁce. EMAIL GLOBALFLEET@VOLVOCARS.COM OR CALL 00 46 313258377

Official fuel consumption for the new Volvo XC40 range in l/100km: Urban 10 – 5.7, Extra Urban 6.4 – 4.6, Combined 7.7 – 5.0. CO2 emissions 178 – 131g/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.