International Fleet World August 2015

INTERNATIONAL

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

All-time

HIGH

Remarketing How online technology simplifies the global process

Intelligent mobility Why smartphones are fuelling the revolution

Audi continues to set new records

plus...

Understanding the forthcoming lease insurance rules internationalfleetworld.com

THE NEW SEAT IBIZA

BEST IN CLASS FUEL CONSUMPTION 4,1l/100km with the 1.0 EcoTSI engine

TECHNOLOGY TO ENJOY SAFETY AND CONNECTIVITY: THE BEST COMBINATION FOR BETTER BUSINESS The New SEAT Ibiza is the ideal car for all your Fleet requirements. Stylish yet practical, it has everything your drivers need to do serious business while riding in total comfort. SEAT’s Full Link technology transforms the infotainment system into a mirror of your drivers’ smartphones, seamlessly bringing total connectivity safely to the road – and keeping you constantly in touch with your Fleet. The New SEAT Ibiza has an EcoTSI engine at its heart. That means there’s no need to sacrifice power for efficiency. And the many elegant Colour Pack combinations available let you give your Fleet the look that reflects your business.

EcoTSI ENGINE

SEAT DRIVE APP

MORE SAFETY, LESS STRESS

The EcoTSI engine can cover 100 km on 4.1L of fuel, emitting just 94 g of CO2 per km.

Technology that seamlessly brings the connectivity experience safely to your car.

Safety has been enhanced with the use of advanced technology.

SEAT FOR BUSINESS Average fuel consumption from 3.4 to 5.2 l/100 km. Average CO2 mass emissions from 88 to 119 g/km.

SE AT.COM/BUSINESS

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

August 2015

All-time

HIGH

Remarketing How online technology simplifies the global process

Intelligent mobility Why smartphones are fuelling the revolution

Audi continues to set new records

plus...

contents

Understanding the forthcoming lease insurance rules internationalfleetworld.com

Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk

16 Online remarketing platforms.

22 Nick Salkeld of LeasePlan.

Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Fleet Consultant Ross Durkin ross@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executives Darren Brett darren@fleetworldgroup.co.uk Claire Warman claire@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Dawn Mitchell dawn@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha King sam@fleetworldgroup.co.uk

MPG marathon 201 5

38 Sign up for the MPG Marathon 2015.

49 BMW’s new 3 Series on the road.

04 Fleet Review John Kendall discusses the growing trend for fleet mobility.

06 Inside Knowledge LMC Automotive on the implications of Greece in the EU. 08 News The biggest stories from a month in the international fleet world.

16 Management How online remarketing platforms can make defleeting easier.

20 Management A closer look at Alphabet’s newly-launched Used Cars offering.

22 Interview LeasePlan’s Nick Salkeld on growth potential for operational leasing.

24 Management Key discussion topics from Frost & Sullivan’s Mobility Conference.

28 Insurance Why vehicle insurance and rentals could become more expensive.

30 Interview Simon Oliphant on Hitachi Capital’s plans for international expansion.

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

32 IAM Report Advice for driving through Australia’s diverse landscape.

34 Fleet Focus How China could help to offset Australia’s manufacturing woes.

38 Events MPG Marathon 2015: Sign up now for the UK’s premier eco-driving event.

40 International Fleet Academy The variation of fuel quality in a global market.

42 Profile Audi’s technology-rich new models and plans for premium SUVs.

STAG Publications

46 Launch Report BMW 3 Series / VW Polo GTI / Mondeo Hybrid / VW Transporter. ®

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

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

internationalfleetworld.com / 03

fleet review

This month, editor John Kendall discusses the fleet ‘mobility’ buzzword, alongside the benefits of the latest in-car technologies.

China repercussions

Autonomous driving

Market watchers have been warning that the Chinese economy could be facing trouble ahead for a while now and the stock market falls in July seem to be bearing that out. The economy is still growing, but there are warnings about the level of debt in the economy, with Bloomberg pointing out that household and company debt now stands at 207% of GDP. Bloomberg quoted the fund manager BlackRock in pointing out that there have only been four other credit booms similar in size to that in China and all resulted in a banking crisis within 3 years.

The motor industry has been able to exploit the growing Chinese economy, particularly when sales have been slack in more traditional markets. Serious problems in China would have repercussions for the global motor industry.

Inevitably, autonomous driving was on the agenda at the Intelligent Mobility conference too. As some speakers pointed out, we have the technology to do it now, the barriers are mostly in other areas – legal and insurance. How would insurance risk be calculated if the driver’s record was no longer part of the reckoning? What happens when a driver who might not have been paying attention in an autonomous driving phase has to rapidly take control? Can we make cars less crashworthy if drivers are no longer controlling them? All these questions were asked in the Intelligent Mobility Conference, but the one that set me thinking concerned something I had not thought of. If a car is being driven autonomously and a fatal impact becomes inevitable, who should the system save, the car occupants, or other road users? Would you like to decide?

Smartphone mobility There is much discussion in the fleet business about the shift away from traditional company cars to business mobility. It’s something that would not have been possible even 10 years ago, but the enabler for the technology needed is one that you almost certainly have in your pocket or bag. The smartphone is the key and we use them more for business than ever. There are apps for booking flights and storing boarding passes, booking rental cars, hotels and so on.

The opportunities are there to integrate all the functions into an app that will cover them all. It’s only a matter of time before you will be using one too. These matters were the subject of the Frost and Sullivan Intelligent Mobility conference recently and you can read about it on page 24.

04 / internationalfleetworld.com

Lane Departure let-down At a recent safety demonstration arranged by insurance research organisation Thatcham in the UK, a speaker highlighted that whereas autonomous emergency braking systems are having a real effect in reducing accident injuries and fatalities, lane departure warning (LDW) systems are falling short. The reason is that most of us, me included, turn these off when we get into our cars, because we find them irritating. The next generation systems will be a lot more user friendly and less irritating, you will be pleased to hear, so we will be more likely to leave them on.

visit internationalfleetworld.com

SIMPLY CLEVER

INVEST IN THE SPACE PROGRAMME.

Combined fuel consumption and CO2 emissions for the Superb model: 4.0–6.2 l/100 km, 100–165 g/km

The New ŠKODA Superb. With attractive TCO. Employees want to travel in style. The CFO wants to travel on a budget. Finally, as Fleet Manager, you can satisfy them both with the new Superb. With class-leading spaciousness and dynamic design this car is stylish yet practical. And with minimum operating costs and low emissions, it could be your most efficient employee ever. Add to it some of the finest safety and connectivity features available today, and this car is an incredible return on your fleet investment. skoda-auto.com

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inside knowledge

Greece, the Euro & the Automotive Sector Greek membership of the Eurozone hangs in the balance. LMC Automotive’s Pete Kelly, Arthur Maher and Jonathan Poskitt consider the possible outcomes.

A

n exit with limited contagion might not inflict major damage on the broader European economy or vehicle markets. However, the effects of an exit would still be felt: in this scenario our partners at Oxford Economics would reduce the GDP growth forecast for 2016 to 1.2%, from 1.8%. If the economic gains are to be curtailed in this way, then vehicle demand recovery will also be impacted.

Scenario: Greece exits Eurozone with limited contagion In this scenario it is assumed that Greece exits the Eurozone after being forced into adoption of a new currency in order to restore solvency of its banking system. The Greek economy itself suffers a profound recession, but contagion beyond Greece is limited as support mechanisms within the Eurozone are sufficient to allay market concerns over other countries’ membership of the currency bloc. Some minor loss of growth momentum takes place, but the region eventually moves on. The Greek economy would begin to recover within a couple of years, spurred by the devaluation of the new currency, but comes from an impoverished base.

tries. Action by European policymakers, not least at the ECB, ultimately stave off the risk of further countries considering exit from the currency, but confidence is hit hard, causing the Eurozone economy to fall back into recession in the second half of 2015 and 2016. A Eurozone recovery begins to emerge but only gets back to recent growth rates by 2017.

Scenario: No Grexit In this scenario, Greece does not exit the Eurozone as new measures agreed begin to be implemented. The Eurozone economy – and that of Western Europe – continues to recover slowly in 2015, without major disruption beyond very minor ripples in confidence relating to recent news from Greece and ongoing concerns over the return of more stable conditions.

This scenario would result in ongoing solid light vehicle market recovery over the next few years.

Impact on Vehicle Production The large majority of the impact on vehicle production would be felt within Europe itself as over 80% of European Light Vehicle output is destined for European markets. However, while the impact on individual markets “The large majority of Scenario: Greek Eurozone Exit, outside Europe would be mostly with significant contagion very small, there is potential for the impact on vehicle It’s a rapidly changing situation, further shaving of export demand production would be felt so we have also outlined other from Europe’s vehicle plants, possible outcomes in the quaradding to lost volumes. Furtherwithin Europe itself.” terly Scenarios Service that we more, a risk-averse response from produce alongside Oxford vehicle manufacturers towards Economics. In one downside scenario, the exit extra-lean vehicle inventory management might exacbecomes chaotic and leads to extreme damage to the erbate the situation, leading to production being cut Greek economy as normal financial channels fail to back more than sales for a few months. operate for months. The effects in Greece are extreme Our monthly assessment of European vehicle invenbut not disastrous elsewhere. Nonetheless, there is tories shows that current European levels are in the some contagion and heightened market anxiety in normal range, implying that a switch to ‘emergency relation to other Southern European Eurozone mode’ could see an over-correction. Vehicle production economies as borrowing costs rise to levels that create could be cut faster than sales for a period of time. This questions over sustainability of debt in some counwould of course unwind once markets begin to recover.

06 / internationalfleetworld.com

INTERNATIONAL

FLEETW RLD

Online now!

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NEWS from the global fleet community

INSIGHT from experts into the fleet industry

ADVICE best practice for running your fleet

industry news

Fiat targets fleet growth with all-new Focus rival

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iat is planning to re‐launch its fleet presence with a replacement for the Bravo, set to be unveiled at the Geneva Motor Show next March with a focus on user‐chooser volume.

Luca Napolitano, head of brand for Europe, Middle East and Africa, told International Fleet World that the as‐yet‐unnamed new model would be offered as a hatchback and wagon. Both will be based on the Fiat Aegea Project, a compact sedan unveiled at the Istan‐ bul Motor Show earlier this year.

Production is earmarked for the carmaker’s plant in Bursa, Turkey, and engines will include two MultiJet diesel engines and two petrol engines with power outputs between 96 and 122hp, with fuel economy of around 4l/100km from the most efficient version.

It arrives as the manufacturer looks to clearly mark out two ‘families’ within its model range, Mr Napoli‐ tano said. The aspirational family includes the 500, 500L, 500L Trekking and 500X, with a new Spider due for a 2016 Geneva reveal.

A second family, based on functionality and value for money, will be offered alongside it. This comprises the Panda range and the new hatchback and wagon – and will allow Fiat customers to choose what level of tech‐ nology and design they require.

Renault unveils Talisman D-segment sedan

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enault has taken the wraps off the new Talis‐ man, the replacement to the Laguna, which goes on sale in Europe at the end of this year.

Not currently planned for sale in the UK or Ireland, the Talisman will bring sedan and estate versions and will make its debut at the Frankfurt Motor Show in the autumn.

Based on the CMF platform co‐developed with Nissan, the Talisman measures 4,850mm long with a width of 1,870mm and a 2,810mm long wheel‐ base, with Renault promising best‐in‐class cabin space, plus boot space of 608 litres.

The engine range comprises two petrol units and three diesel powerplants, and includes the Energy TCe 200 petrol unit and the Energy dCi 160 and Energy dCi 130 diesels, also available for the new Espace. Emissions start at 95g/km for the 110hp Energy dCi unit.

Alfa Romeo unveils new Giulia

T Italian police sign fleet deal with SEAT

T

he Italian Polizia di Stato and the Carabinieri have awarded the fleet contract for their service cars to SEAT. The carmaker will supply the police forces with Leon 150hp 2.0 TDI models, marking the first time that both police forces have tendered and selected the same brand and the same vehicle. Major factors included the Leon’s low fuel consumption and emissions figures.

Overall, the contract includes the option for up to 4,000 vehicles over the next three years. So far, orders have been placed for 925 cars, split between 475 ‘panthers’ (Polizia di Stato) and 450 ‘gazelles’ (Carabinieri).

08 / internationalfleetworld.com

he new Alfa Romeo Giulia has been unveiled in Milan, providing a rival to the BMW 3 Series and Jaguar XE. The rear‐wheel drive model – which will also be avail‐ able in all‐wheel drive – brings a carbon and aluminium construction to improve performance and efficiency, and also debuts the brand’s new logo.

Inside, the design is centred around the driver, with the main controls grouped together on the small steer‐ ing wheel in a similar fashion to a Formula 1 car and two central controls for adjusting the Alfa DNA selector and the infotainment system.

Full details of the engine line‐up haven’t been revealed but the range of lightweight aluminium petrol and diesel units is topped by the flagship V6 turbo petrol power‐ plant with 510hp for the top‐of‐the‐range Quadrifoglio version.

The new Alfa Romeo Giulia is due to go on sale at the start of 2016.

For the latest news, visit internationalfleetworld.com

fleetweet a few soundbites from a month in fleet

@ACEA_eu Twitter of ACEA, The European Automobile Manufacturers' Association

Did you know that 25% of all passenger #cars in the world are produced in the European Union?

Opel launches OnStar in Europe

O

pel is introducing its OnStar connected car services across its passenger car range from this month.

The first introduction wave will see Opel OnStar being rolled out in 13 European markets with additional countries following later.

The next generation of the Opel Astra, which debuts at the Frank‐ furt Motor Show, will be the first completely new Opel model to be available with OnStar from its market launch. Furthermore, the system can already be ordered for Insignia, Mokka and Zafira Tourer in certain markets.

Building on the company’s plans to make premium technologies available to a wider audience, customers will be able to use the entire service portfolio provided by Opel OnStar including the 24‐ hour Emergency Call Service as well as the high‐speed Wi‐Fi hotspot free of charge for the first 12 months after registration.

@MartinW_CAP Martin Ward, manufacturer relationship manager CAP

Driving VW Passat GTE in Holland. It's powered by a 1.4 TSI petrol and a electric motor, combined power is 218PS.

@carscribe Sue Baker, motoring writer

Just watched a driverless electric VW Golf park itself and a robot plug it in to recharge. A bit creepy but it's the car parking future.

@GoUltraLow Twitter account for GoUltraLow campaign

2015 Mercedes-Benz A-Class unveiled

M

ercedes‐Benz has revealed the 2015 A‐Class, which will bring upgraded interior and exterior styling as well as a new 89g/km version.

As well as gaining updated styling , the range also gets an expanded engine line‐up, with a new efficiency champion in the form of the 109hp A180d SE. This offers an NEDC fuel consumption of 3.5l/100km with CO2 emissions of 89g/km. Also new are the manual transmission versions of the A250 AMG. The engine‐line up also sees an extra 7hp power for the A220d to 177hp, while the A250 AMG and A250 AMG 4MATIC now develop 218hp instead of the previous 211hp. And the range‐topping A45 AMG model receives extra power to take it up to 381hp.

Mercedes‐Benz is also using the A‐Class model facelift as an opportunity to introduce the new naming system. This sees petrol versions switch to just a number to denote the model whilst diesels replace the previous ‘CDI’ with a single ‘d’ – the A200 CDI is now called the A200d, for example.

Registrations of electric vehicles are up 256% in the first half of 2015, & have already exceeded last year’s total!

@LexusPR Scott Brownlee, general manager, PR & social for Lexus and Toyota UK

ACEA confirms Lexus fastest growing premium brand in Europe (EU+EFTA) in Jan-Jun 2015.

@GarethEvansUK Gareth Evans, motoring journalist

Just driven the new R8 V10 on track in Portugal. Absolutely mind-blowing car and circuit.

Quattro simply outstanding.

@theseoldcars Lewis Kingston, motoring journalist

One of the things I like about the VW Golf R: it has a conventional key.

Twist and go, no faff. #itjustworks.

internationalfleetworld.com / 09

The most important meeting of 2015.

The new CLA Shooting Brake.

A Daimler Brand

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

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

environmental news Broader role for electric and hydrogen vehicles at BMW

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lectrification is to be a core technology for BMW, with hydrogen fuel cells to be used in core models as well as the i brand and a plug‐in hybrid 2 Series Active Tourer close to production‐ready.

The latter is a realisation of the Concept Active Tourer shown in 2012, and will be the brand’s third plug‐in hybrid after the X5 and 3 Series as BMW plans to offer this across its mainstream product portfolio.

This uses a drivetrain which is similar to the i8 supercar’s, but fitted the other way around. There’s a 136hp 1.5‐litre three‐cylinder turbocharged engine under the bonnet, connected to a generator which can charge the high‐voltage battery, while the rear axle features an 88hp electric motor.

BMW is claiming this will reach 62mph in around 6.5 seconds, with a 38km electric range contributing to official economy figures of less than 2.0l/100km with less than 50g/km CO2 emissions. The electric and

petrol motors can also offer four‐wheel drive. Pricing is expected to be similar to the 225i Active Tourer.

Further ahead, hydrogen fuel cell technology will join the range as part of an ongoing partnership with Toyota, formed in 2013. Shown in a prototype based on a 5 Series Gran Tourer, the hydrogen tank is located in the transmission tunnel and is said to offer a range of 500km on one five‐minute fill, with water vapour as the only exhaust emission.

This supplies a hydrogen fuel cell stack developed

by Toyota, which produces electricity to drive a 245hp electric motor derived from BMW’s i models.

For the first time, BMW has confirmed that hydrogen fuel cell technology is destined not only for its electric sub‐brand, but for its mainstream passenger cars too. The carmaker has previously experimented with using hydrogen as a fuel for a conventional engine, as opposed to the electricity generation.

Plug-in hybrids increasingly making inroads with fleets, finds CLM

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K fleets are increasingly turning away from diesel power in favour of hybrids and electric vehicles, according to research conducted by fleet management specialist CLM. The company looked back over months of new vehicle registrations and found that at the end of Q4 in 2014, diesel models accounted for 90.4% of all new models ordered on the CLM fleet. However, by the end of Q1 of this year that rate had fallen by 4.8% to 85.6% of all new orders.

Although CLM’s data shows that fleets are switching to more efficient petrol models, hybrids and electric vehi‐ cles are beginning to increase their toehold on the CLM

12 / internationalfleetworld.com

managed fleet of 14,000 vehicles. Although the starting point is still from a very low base, the number of hybrids and plug‐in hybrids now being ordered by CLM has increased to 4.9% of the fleet mix.

However, it said that pure electric vehicles continue to struggle to make an impression on the order statistics, accounting for just 0.2% of the fleet mix at the end of 2014, but enquiry levels are rising.

CLM said the reasons for the changes could include the introduction of stricter new Euro 6 emissions standards and increasing health concerns about the safety of diesel emissions, particularly nitrous oxides.

For the latest EV news, visit evfleetworld.com

Australian Electric Highway goes live

F

ive fast charging stations are now live on Australia’s first ‘Electric Highway’, which will soon enable electric vehicle owners to drive the 192‐mile route from Perth and Augusta.

Once complete, the network will include 11 publically accessible fast charging stations, purchased and installed by the RAC and maintained by local governments. Charging is free of charge until the end of the year.

The first five are located in Perth, Mandurah, Bunbury, Busselton, Margaret River and Augusta, with the remainder to be installed within months in Dunsborough, Nannup, Bridgetown, Donnybrook and Harvey, as well as Freemantle before the end of the year.

RAC executive general manager, Pat Walker, said: “It will provide the infrastructure required to help eliminate the issues currently facing owners of electric vehicles, including ‘range anxiety’, and for the first time, it will also provide the opportunity for electric vehicles to now visit the State’s South West.

“The RAC Electric Highway will also benefit the South West region by attracting electric vehicle drivers to destinations along the route, helping to support the region’s tourism industry.”

New CleanPEA tool to see if fleets can switch to EVs

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new system that can help firms iden‐ tify if electric vehicles are a viable fleet option has been launched by fleet mileage and GPS experts Fleet Innovations.

Called CleanPEA (Promoting Electric Alternatives), the new system is based on the short‐term use of a small GPS device powered by the 12‐volt socket to record driver usage behaviours. The data is then compared to the range restrictions and running costs of available electric cars to identify the drivers that could run an EV and what potential savings would be available.

Alex Baker, MD of Fleet Innovations, said: “We have been using GPS devices in cars for some time with the CleanPEA sister product, PEAK Miles, which is used by more than 35,000 users for their monthly mileage expenses. Once we have enough data we can run our reports and help an organisation decide what their EV policy should look like going forward.”

EV in numbers

500km

Record-setting zero emission driving range of the Toyota Mirai hydrogen fuel cell vehicle, on sale later this year.

in brief King of Jordan places record Renault ZOE order The King of Jordan has placed the world’s largest order for the Renault ZOE, ordering 150 for the Royal Hashemite Court fleet. Agreed during the World Economic Forum on the Middle East, the cars will be 100% powered by solar panels installed on royal property and are set to be delivered by the end of the year.

Posten Norge to deploy 300 electric delivery vehicles Norwegian postal service, Posten Norge, has purchased 300 electric vehicles for its fleet, aiming to have them in service within the next 12 months. Set to be deployed nationwide, the new vehicles will be used for mid‐length routes and urban deliveries, and are expected to save millions of krone per year in operating costs.

Hyundai-Kia begins wireless charging R&D Hyundai‐Kia has begun a collaborative project with Mojo Mobility to develop a wireless charging system with 92% grid‐to‐vehicle efficiency, capable of transferring at up to 10kW – faster than many current public units. Real‐ world durability will be demonstrated using a fleet of five Kia Soul EVs.

EVtweet of the month @MartinW_CAP Scientific research by Profs from UK has proved Hybrid drivers are; happier, more relaxed, less stressed.

1/3

Share of new vehicle registrations in Norway in Q1 2014 which were electric vehicles – 8,000 units.

Source: IHS Automotive

Source: Toyota

internationalfleetworld.com / 13

business news

Element Financial & Arval to acquire bulk of GE global fleet business

G

E has announced that it has reached an agreement to sell the majority of its global fleet business to Element Financial Corporation and Arval.

The group has reached an agreement to sell its US, Mexico, Australia and New Zealand fleet businesses to Element Finan‐ cial Corporation for $6.9bn. The move follows GE Capital’s sale of its Canadian fleet business to Element in 2013.

Separately, GE has signed a memorandum of understanding for the potential sale of its European fleet businesses to Arval for an undisclosed amount.

Excluded from the transactions is GE Capital’s fleet business in Japan.

The move follows GE’s announcement earlier this year that it was looking to divest itself of its fleet business in line with its strategy to create a simpler, more valuable industrial company.

The US and Mexico transaction is expected to close in the third quarter of 2015, and the A&NZ transaction in the fourth quarter of 2015, subject to customary regulatory and other approvals. If approved, the Arval transaction is targeted to close in the fourth quarter of 2015.

Arval launches Arval Active Link telematics solution

A

rval has unveiled its new telematics offering, Arval Active Link, as well as its enhanced digital offerings.

Arval Active Link is a new telematics offering that fully integrates with Arval’s existing digital services and is accompanied by a wide range of optional services, including pinpoint GPS tracking and mileage capture for audit purposes.

Available in the UK now, it will be launched in France, Italy, Spain, the Netherlands and the Czech Republic from September 2015.

Arval also announced that its Analytics, Fleet View and Mobile+ tools have all received upgrades.

Vehicle segment drives European leasing growth in 2014

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ew leasing business in Europe saw its highest annual volumes growth since 2007, with the vehicle segment driving the market, according to new data from Leaseurope.

The organisation’s Annual Statistical Survey of the European leasing market for 2014 shows that new business reached €276bn in 2014, increasing by 9.5% compared to 2013.

Growth was particularly seen for vehicles, which remained the driving force behind the market’s positive performance in Europe. New leasing volumes for passenger cars rose by 14.6% in 2014 compared to 2013 with slightly lower but still strong growth for commercial vehicles at 10.6%.

14 / internationalfleetworld.com

in brief ALD acquires Munsterhuis Lease ALD Automotive has acquired Dutch firm Munsterhuis Lease for an undisclosed amount. The acquisition will see ALD take over the opera‐ tional management of more than 800 leases. The move will see both the Munsterhuis naming and its sales office in Hengelo maintained.

New Alphabet EV solution Alphabet has launched a new tool that can identify where fleets can introduce electric vehicles in line with their individual mobility needs.

The Electrification Potential Analy‐ sis (EPA) too reveals the total fleet energy consumption and CO 2 emis‐ sions, and can be used as the basis for an eMobility proposal.

Viasat acquires Cefin Systems European telematics specialist Viasat has acquired a controlling interest in Cefin Systems of Romania, marking its seventh European acquisition.

The purchase is the first stage of Viasat’s current growth project to invest between €10m and €15m over the next three years as the group expands into Eastern Europe.

Zipcar to drive EMEA expansion Zipcar has appointed Nicholas Cole as president, international in a move to drive its international expansion in Europe, the Middle East and Africa (EMEA), Asia and Australia, and for accelerating the company’s growth in these key territories.

Mr Cole will replace Massimo Marsili, who has been appointed managing director, Western Region, Avis Budget EMEA.

THE NEW BENCH MARK

Opel’s compact-class masterpiece.

Meet Opel’s new flagship compact with premium-class German engineering: the new Astra combines striking design, first-in-class IntelliLux LED® Matrix headlights and unprecedented connectivity with sporty handling.

Find out more at opel.com

The new Astra.

Fuel consumption combined 5.5–3.4 l/100 km; CO2 emissions combined 128–90 g/km (according to R (EC) No.715/2010).

MANAGEMENT Remarketing

Remarketing Redeveloped Disposing of ex-fleet cars for the best-possible price is a mammoth task for operators worldwide: but online technology is making the process an easier one in many markets.

L

easePlan manages some 1.42m multi‐brand vehicles in 32 countries and these numbers lead to 1,000 cars a day being remarketed in Europe alone. So says Wolf‐ gang E Reinhold, senior vice‐president, car remarketing and procurement operations.

Any company handling that level of volume has to have a

16 / internationalfleetworld.com

sophisticated remarketing operation and that is precisely what LeasePlan has set up.

Single remarketing platform “We have established a single in‐house world‐wide platform that we control ourselves and we dispose of vehicles by means of online auctions,” Reinhold says. “That way we know we get the best price – the highest price wins – and the process is a transparent one. In my view electronic auctions are the way to go. They represent the future.”

The bidders for LeasePlan vehicles tend to be independ‐ ent dealers who have registered with the platform after being checked for, among other things, their VAT number.

“In my view, electronic auctions are the way to go.

They represent the future.”

Wolfgang E Reinhold, LeasePlan’s senior vice-president, car remarketing and procurement operations.

However, just because a dealer is based in a particular coun‐ try does not necessarily mean that the car will ultimately be sold to a retail buyer who lives there.

“70‐80% of the cars we sell in Belgium for example leave that country 5 to 8 days later,” says Reinhold. Ex‐LeasePlan cars can ultimately end up in countries all over Europe – mainly in the east and south‐east – as well as in countries such as Israel or further east.

“In central Europe, stock is often sent to neighbouring countries where the used market is more established and where they can achieve higher prices,” says Nuno Castel‐ Branco, Cox Automotive’s regional managing director for Europe, Turkey, Brazil and Thailand.

Cross-border taxes Getting vehicles re‐registered is not usually that difficult but taxes may be imposed in some countries. “That is the case in Denmark and Portugal for example while Algeria has in effect become a closed market because of the high import tax,” Reinhold says.

Looking further afield, the variety of different local taxes levied by states in India can make de‐registering a car in one state and re‐registering it in another a complicated exercise,” he says.

LeasePlan stores cars that are being disposed of in a number of big compounds dotted around Europe. Once they are sold dealers either collect them themselves or delivery can be arranged for a fee.

While the majority of LeasePlan’s European vehicles go through an online auction, around 20% are retailed by the company through its own outlets. “We have 13 of them trad‐ ing under various names in countries such as France, Italy, Spain, the Netherlands and the Czech Republic,” Reinhold says.

ALD International operates retail outlets in a number of European countries including Germany and France, says deputy chief executive officer, Tim Albertsen. “Our retail activities account for around 20% of the vehicles we remar‐ ket and we sometimes sell cars to the people who are currently driving them,” he explains.

“The other 80% or so are wholesaled to dealers primarily through ALD Carmarket, an electronic platform,” he adds.

“Usually this is done by means of auction but other mecha‐ nisms are used too. In France, for example, we use a tendering process because you need a licence to run an auction,” he says.

“The commission in France is dictated by legislation,” adds Castel‐Branco. “Auctions can operate more flexibly in other markets.”

internationalfleetworld.com / 17

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MANAGEMENT Remarketing

Remarketing Redeveloped →

Returns policy LeasePlan does not refurbish its cars prior to offering them for sale because it has found that it is not cost‐effective to do so. What it does have however are clear return condi‐ tions, which ensure that the majority of lessees bring their cars back in a presentable state.

“Every lessee receives a copy of our fair wear and tear guidelines in advance of acquiring their vehicles,” Reinhold explains. “They include for example an assurance that any small dent that can be covered by a 1 euro coin will not be charged for.”

Cars are independently inspected by either DEKRA or SGS on their return to ensure accurate reports and realistic photography. If there is any severe damage then customers are informed and told how much they will be charged to get it repaired.

“The secret of our success is our transparency,” he says.

Only a handful of the cars LeasePlan handles are subject to manufacturer buy‐backs. “Tesla for example has a buy‐ back arrangement with us but we’re talking in terms of 30 or 40 vehicles,” Reinhold remarks.

Online or physical auction?

Outside Europe the disposal process is often different because the markets concerned have yet to attune them‐ selves to online auctioneering. “In the USA, Australia and New Zealand for example we use conventional auctions,” he says.

None of this of course should be taken to imply that online management and disposal of ex‐lease vehicles is unknown outside Europe because that is very far from the case.

In April, for example, Porsche Cars North America (PCNA) inked a deal with Cox Automotive to use its Actuos platform to manage the return of cars from the lessee to the lessor and their remarketing. It captures information on the car’s condi‐ tion, makes it easier for it to be bought by the dealer or customer and enables the entire process to be integrated with the services offered by the auction companies. An online portal allows sales to be made to any defined group of users.

“Providing us with access to the entire lifecycle of our vehicle portfolio will enable us to make better decisions in the future,” says PCNA remarketing manager, Jim Kuna. “We will be better equipped to channel the right vehicles to the right dealers at the right time.”

Actuos comes from Cox’s RMS Automotive division, which made its debut in the USA this year with commitments from Nissan and BMW Financial Services as well as PCNA. Having already processed over 1m vehicles for manufacturers such as Volkswagen, PSA and BMW in Europe to date – including upwards of 100,000 for PSA – it has won a Fleet World award for Innovation: Fleet World is the sister title to Inter‐ national Fleet World.

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Perhaps not surprisingly, Autorola chief executive officer, Peter Grøftehauge (left), believes that the online remarketing of ex‐ fleet cars will ultimately render physical auctions obsolete. “They’re old‐fashioned,” he contends. “They represent the past.”

Based in Denmark, the company disposes of some 220,000 vehicles annually – “and the number is increas‐ ing,” Grøftehauge says – through its online platform to buyers in over 35 countries.

It lists Arval, Alphabet, ALD Automotive and LeasePlan among its regular users: evidence that independent suppli‐ ers still have a role to play working alongside lessors who may have in‐house online remarketing channels.

Online auctions go global Most of the countries Autorola is active in are European.

“However, we have a presence in other markets including Australia and Brazil and we are looking to expand our global activities,” he says.

Autorola keeps a close eye on marketplace trends.

“One thing we have noticed is that Spain, Portugal and Italy are no longer exporting used cars to the rest of Europe to the extent they were a few years back,” he reports. “That’s because second‐hand vehicles are fetching better prices in their domestic markets as their economies have improved.”

“The used market in most of southern Europe is pretty good right now,” says ALD’s Albertsen (right).

Other global markets throw up their own challenges to remarketers however, he adds.

“China’s used market is not very mature, as ALD we can only sell to dealers and while the prices aren’t bad it’s diffi‐ cult to get hold of the licence plates you need to put a car on the road, especially in Shanghai and Beijing,” he observes.

Aside from Fleet Monitor, which helps operators handle the whole de‐fleeting process, Autorola offers an online business intelligence tool called Indicata. It helps fleets gauge the general health of the used market and assess how much their cars are likely to fetch should they choose to dispose of them.

A somewhat different approach to remarketing is pursued by Hertz says Rui Ferreira. Vice‐president, Hertz Car Sales, he is responsible for remarketing the company’s vehicles in seven European countries.

“The rental business is my used car factory,” he remarks.

Try before you buy

Direct sales Physical and online auctions account for a mere 6% of the busi‐ ness’s total annual sales volume of around 45,000 vehicles with an average age of 18 months. “The percentage is declining year‐ on‐year,” he says.

Far more significant is the Hertz Dealer Direct online opera‐ tion, which sells vehicles to registered small‐ to medium‐size used car dealers at a fixed, no haggling price. It accounts for over 20% of sales.

“Every car is independently inspected by DEKRA, any damage is disclosed and each vehicle offered is accompanied by photos, including photos of damage,” he says.

So how can Ferreira and his colleagues be sure they are getting the best possible price for Hertz’s cars? “We work closely with the major used price guides in each market and we co‐operate closely with EurotaxGlass in particular,” he replies.

A high percentage of Hertz’s volume is dealt with through its wholesale operation. Its customers include buyers from the big dealer groups who may want to purchase, say, 150 small hatchbacks at a time that they can then sell through their own channels; from dealership forecourts for example.

“It’s interesting to note that in some markets the customers want to come to our compounds and physically inspect the cars them‐ selves,” says Ferreira. “That’s often the case in Italy for instance.”

On the retail side Hertz has been rolling out an initia‐ tive, which enables consumers to test drive one of its cars for several days then buy it if they like it. If they decide the vehicle is not for them then they simply return it to the company and are charged a discounted rental rate for the period they have used it.

“It’s a service that’s available from 80% of our rental locations and 96% of people who use it end up buying the vehicle they try,” Ferreira says.

“Business‐to‐consumer sales account for 10% of what we do and that’s something we intend to grow,” he adds.

“We run one or two retail locations ourselves. In France we’ve got one in Paris and one in Nice and in the UK we’ve got one in Lancaster.”

Ferreira is also responsible for remarketing some 10,000 to 12,000 Hertz cars annually in Australia and New Zealand.

Buy‐back agreements have a role to play in Hertz’s entire remarketing mix but he believes they should be treated with caution. “The car manufacturers lay down tight age, mileage and condition parameters and that makes buy‐backs the most expensive option for us,” he says.

“We have a few manufacturer buy‐back arrangements but we need to achieve somewhat higher residuals than the manufacturers are prepared to offer,” says ALD’s Albertsen. “To be honest we’d rather take any risk on the residuals ourselves.”

internationalfleetworld.com / 19

MANAGEMENT Remarketing

Alphabet

launch Alphabet International has launched a new remarketing platform to handle the remarketing of de-fleeted vehicles, as John Kendall reports.

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lphabet International has developed a new online remarketing platform to handle the disposal of its vehicles at end of contract. It carries the branding Alphabet Used Cars in all markets to give it a unique identity and a standard format for users wherever they are based.

One advantage of the system is that once data about a partic‐ ular vehicle has been uploaded to it, all following stages are automated. After the sale price and buyers details have been recorded, the invoice is automatically generated and the accompanying documentation is also generated automatically.

BCA PARTNERSHIP The system has been developed in partnership with BCA and is gradually being rolled out across Europe. First to use the system was Alphabet Italy, followed by the company’s operations in Spain, Poland, France and the Netherlands.

The next markets to follow will be Belgium and Luxemburg, which will adopt the new system from September. Alphabet Germany is scheduled to follow in Q1 next year, with the UK operation following in Q2.

“It’s important that we are a reliable partner,” comments Jules Blijde, chief operations officer of Alphabet Interna‐ tional. “In online auctions, the buyer is buying from the system, so we need a good overview, with a complete set of pictures, we need to be transparent about damage. We don’t need complaints afterwards that the quality of the car is not as expected. We need to make sure the buyer doesn’t have any surprises. If you can build up this reliability, the dealers will have a positive impression and that’s important.”

The standardised layout will incorporate the different bidding possibilities that were available before, but now

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Taking Charge Remarketing the growing electric vehicle market is a looming challenge for the leasing industry.

they will all be included under the Alphabet Used Cars label.

These include a ‘Buy Now’ option, overnight auctions and longer auctions. “Different types, but all in one platform, so it doesn’t differ by country,” says Andrea Meissner, head of international operations.

CROSS-BORDER BIDDING The system is designed for buyers in one particular coun‐ try to buy cars in that country, but that does not prevent cross border bidding, “At the moment, we are selling the cars in each market, so we don’t normally sell a Spanish car in Germany for instance,” explains Andrea Meissner. “But a buyer from Germany can, of course, log into the Spanish platform and buy a car there. So there is export across markets also but not actively.

“For Alphabet itself, we looked at standardisation and this is the way to go for an international company.”

“We have a huge range of cars from light commercial vehi‐ cles to premium brands. We need to sell all these vehicles and we need to do it in a trustworthy way. With the system the idea is to give the used car buyer the same look and feel with all the functionalities to make it efficient

for used car buyers and also for Alphabet.”

The new system also brings high quality reporting for Alphabet internally. This helps to identify which buyers are interested in which cars so that Alphabet can let them know when particular cars will be coming up for sale.

The growth of the electric vehicle market is likely to present leasing companies with one of its big issues over the next five years. Currently many OEMs have buy‐back agree‐ ments. “I think this is something that we might all look at in the future. I think how it’s developing is an interesting topic,” says Meissner.

Alphabet Used Cars is in some ways a sign of the times too as it is designed for online selling. Meissner believes that it will be interesting to follow how the market develops and what effect it is likely to have in countries where physical auctions are the commonest way to dispose of used cars.

Once the cars for re‐marketing have been logged onto the system Alphabet and BCA registered users can view the cars, which gives more buyers an opportunity to bid for them. Alongside the new online system, Alphabet will continue to sell cars through its Alphabet Used Car Centre network where sales are open to retail buyers.

BUSINESS MOBILITY “I think the whole mobility thinking is still in the teething phase,” says Alphabet International chief oper‐ ations officer Jules Blijde. “When you ask a customer what their mobility needs are, it is very difficult for them to explain what they want. If you look at it from a fleet leasing company’s perspective, I think the core is the switch from ownership into ‘usership’. In fact, leasing is already a ‘usership’ model. We take all the risks and make it available for you.”

“We need to know where the market is moving to, if there will be disruption of the market and how the car leasing market might be disrupted, as the taxi market has been disrupted by Uber. It’s also good to understand how you might disrupt you own business.”

“So business mobility is in a teething phase, but the customer needs are central and that’s why we have invested in understanding mobility needs. These are partly connected to cost savings. If you take mobility from a customer point of view, it consists of many things.

It can be a car, it can be a bike. Cars need parking spaces.

A potential customer may need to fly and book a hotel and you need to decide what is in scope and what is out of scope. Where do you want to position yourself as a mobility provider? You can’t cover everything.

“When you look at leasing companies, they are some kind of connector, or integrator. When a car is damaged, we connect to a body repairer or dealer, you make sure there is roadside assistance, possibly a rental solution for before the car is delivered and also when it is in the garage. So we are already connecting and integrating and the question is, how can we broaden this connect‐ ing, integrating and value adding role that we play in mobility and what should we focus on?”

internationalfleetworld.com / 21

INTERVIEW Nick Salkeld, LeasePlan

Leasing on a global scale There’s still room for growth in operational leasing, LeasePlan’s Nick Salkeld tells Steve Banner.

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ith profits up to €372m, return on equity hitting 13.8% and total assets up to €19.7bn, LeasePlan enjoyed a healthy 2014. The prospects for this year in global markets are proving to be healthy too, says chief commercial officer Nick Salkeld.

With LeasePlan for over 20 years, he became chief commercial officer last August. A member of the company's four‐strong managing board, he is leading its drive for growth.

Based in Almere in the Netherlands, LeasePlan manages over 1.4m vehicles worldwide, is active in 32 countries and employs over 6,800 people.

Last year saw LeasePlan open LeasePlan Canada through its Canadian partner Foss National Leasing while February of this year saw the global automotive leasing giant become the 100% owner of LeasePlan Turkey. “We enjoyed a 30% growth level in Turkey in 2014 and we believe that double‐digit growth is a possi‐ bility this year too,” Salkeld says.

Operational leasing potential European countries with potential for further growth include Denmark, Poland and the Czech Republic, “We expect to expand in line with and possibly ahead of the market in all these countries and it is worth noting that the level of penetration of operational leasing in Poland is still less than 10%,” he says.

Some of the more‐mature European markets offer surprising levels of potential too. “The uptake of opera‐ tional leasing in Italy and France for example is still quite low,“ comments Salkeld.

Looking further afield, Mexico, India and the UAE have market growth of more than 10% and should generate healthy levels of business too. So should Russia, despite its well‐documented problems.

How about China?

“China has huge market potential but is not yet mature so far as operational leasing is concerned – there is still

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a strong preference for ownership – but it’s developing slowly,” Salkeld replies. “Furthermore, there are certain cultural challenges in China that have to be respected and that we have to work within.”

LeasePlan is not yet present in China and is hoping to target small fleets there over the next two years, along with international clients with whom it already has a rela‐ tionship and who have established a Chinese operation.

Its fleet management expertise should aid businesses that prefer to continue to own their assets.

“Once they’ve experienced our approach to fleet management we can go on to talk to them about opera‐ tional leasing and its ability to reduce their exposure to risk,” Salkeld observes. “Our aim must be to get in front of customers and explain operational leasing's benefits.”

Infrastructure challenges?

Despite its complexities, India offers good long‐term prospects for operational leasing too, Salkeld believes, although finance leases remain popular.

“We’ve been in India for more than 10 years, grew by 9% during the past 12 months and we’ve now got just over 10,000 vehicles there,” he says. “We’re doing well with small fleets.”

Outside the big cities India, China, and other emerging markets do not enjoy the support infrastructure (comprehensive dealer networks for example) that bene‐ fits leasing companies in Western Europe. That should not be viewed as a barrier to entry however, says Salkeld.

“You have to adjust to any limitations and work with them while being aware that things are bound to improve,” he says. “You have to think in terms of a long‐term plan.”

In some countries, that plan is likely to include a focus on delivering mobility by whatever means appropriate (train, bus, bicycle, car‐sharing and so on) rather than the traditional provision of a company vehicle.

“Younger drivers especially are expressing growing interest in mobility budgets, particularly in Western Europe,” he concludes.

“Our aim must be to get in front of customers and explain operational leasing’s benefits.”

internationalfleetworld.com / 23

MANAGEMENT Intelligent Mobility Conference

Intelligent Mobility How will it work?

Business mobility is undergoing great change and smartphones are fuelling the revolution. John Kendall reports.

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easing companies are gearing up for a great deal of change in the coming years and this was the subject of the third annual Frost and Sullivan Intelligent Mobility Conference, staged in London recently. The working title of ‘Future Busi‐ ness Models in Connected and Automated Mobility’, set the theme for the day.

The shift from the traditional company car model of business mobility to a new model was a theme throughout the conference, described by Frost and Sulli‐ van senior partner Sarwant Singh as the shift from TCO (Total Cost of Operation) to TCM (Total Cost of Mobility). Setting the scene, he outlined the transformational shifts underway in business travel, includ‐ ing new business models in car sharing, which grew by between 40% and 50% between 2013 and 2014.

Emerging car share models Car sharing is developing in different ways. Leasing companies will be familiar with corporate car sharing schemes, designed to let companies offer its employees who may not be eligible for a company car the short‐term use of a

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company owned vehicle. Car share clubs such as Zipcar or Car2go offer rental by the hour in city locations with the conven‐ ience of pick up and drop off from city public spaces. In addition there are peer‐ to‐peer car sharing schemes where people choose to share cars with others, usually through car‐sharing schemes.

sharing schemes, involving 14.9 million people, 222,210 cars in peer‐to‐peer schemes involving 3.3 million people and 84,649 cars in corporate schemes, involv‐ ing 4,000 companies.

Similarly car‐pooling is expected to grow from schemes with 24.1m members in 2014 to 45m members by 2020.

Hitching a ride

In 2014 Frost and Sullivan reckons that across Europe, there were 49,368 cars involved in ‘traditional’ car sharing schemes, involving 2.5 million people, 81,380 in peer‐to‐peer schemes involving 1 million people and 2,896 in corporate car sharing schemes involving 250 companies.

Looking ahead, Frost and Sullivan expects significant growth in the sector by 2020. Then the company believes there will be over 236,000 cars in traditional car

Ride sharing schemes are another car‐ sharing variant in that these are designed as rivals to taxi operations or otherwise as means of generating income for the vehicle owners involved in the schemes. There are similarities even so and Singh identified different types of ride sharing schemes.

The key to them all is the smartphone, which is the tool linking those operating the scheme with drivers and passengers.

Uber was the name that recurred through‐ out the conference. The US based company operates in 58 countries, 311 cities and has 7.5 million customers. Its operations have proved controversial in several cities around the world, meeting opposition from established taxi operators and licens‐

ing authorities. Singh told the conference that Uber sees itself as a logistics company with a mission to carry three passengers and three parcels per car.

How much of a threat is Uber to estab‐ lished taxi operations? Shai Agassi, the founder and former CEO of Better Place told the conference that since Uber began its operations in New York, taxi revenue per cab had fallen by ‐5%, within the limits of normal expected variations in revenue.

Freight expectations Besides ride sharing, the rise of the smartphone app opens up new possibil‐ ities for the transport sector. Back loads – a return load for a truck operator once the original delivery has been made, have been a problem for many years. Although truck utilisation has improved, the prob‐ lem still remains and app‐based systems offer another way of giving transport operators a means of maximising truck use and profitability.

Frost and Sullivan gave developments in North America as an example, where mobile‐based freight brokerage systems are expected to grow rapidly. Schemes

such as cargomatic, Coyote, Transfix and Keychain Logistics have already appeared.

In 2014 these systems generated revenues of €0.4bn and by 2020 compound annual growth of 39.3% is expected to push revenues to €15.8bn.

Frost and Sullivan also expects to see a convergence of vehicle rental businesses, currently split between car sharing, car rental and car leasing. This will come with a shift towards integrated mobility where vehicle manufacturers, leasing compa‐ nies, travel management companies, soft‐ ware platform providers, fleet management providers, public transport operators, integrated solution providers and car rental companies will be increas‐ ingly integrated into new mobility plat‐ forms, a process that has already begun.

Ladies First?

More women drivers than men are expected to become the norm in many countries. Frost and Sullivan data suggests that 51% of driving licence hold‐ ers in the United States are already women, with 50% in Canada, 47% in the UK, 44% in Japan, 44% in Italy, 41% in

Spain and 40% in Brazil. These numbers are expected to grow and since women are said to prefer leasing vehicles to men, this development is likely be significant for leasing compa‐ nies. In Japan, Nissan already has 300 ‘Lady First’ dealerships which feature child play areas, stylish interior design and female sales and technical staff.

Cars connected to the Internet are already on the road in number. Frost and Sullivan reckons that there were some 8.5 – 9m on the roads of North America and Europe in 2013 and this is likely to grow to between 34‐34.5m by 2020.

Although vehicle technology already makes autonomous driving a possibil‐ ity, Internet connectivity will extend the possibilities available and the shift towards autonomous driving is another emerging factor for drivers and fleets to take on board. The shift to autonomous driving will also have implications for vehicle insurance, as the current driver risk‐based model may be less relevant. This may see a reduction in vehicle insurance revenues and revised insurance offers.

internationalfleetworld.com / 25

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MANAGEMENT Intelligent Mobility Conference

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Corporate mobility shifts

Smartphones are key

Of particular interest to leasing compa‐ nies and customers was Session 2: ‘The Future of Corporate Mobility’, which included presentations from Alphabet International and LeasePlan. Since one of the threads in the conference was about future integration, we also gained an insight into how the operational leasing schemes of today are likely to transform into the mobility platforms of tomorrow – the shift from TCO to TCM. That thread was picked up by Graeme Banister from Frost and Sullivan who told the conference that some €453bn worth of new lease contracts are written annu‐ ally and the market is growing at between 5‐10%, while around €1.1 trillion is spent annually on business travel, with the global market growing by around 10%.

A small sample taken in Belgium, France, Germany, the Netherlands and the UK among those who have a company car or cash allowance shows some interest in being granted a mobility allowance instead of a company car based scheme, with more interest in Belgium and the Netherlands.

Samples taken in SMEs and large companies also show that where there is existing corporate car sharing, pooling or car club use interest is expected to grow by 16% on average over the next five years. Although corporate car sharing has grown slowly in recent years, with around 4,900 vehicles in use now, this is expected to benefit from average growth of 71% between now and 2020 and reach 84,649 vehicles.

This is likely to involve the development of multi‐modal transport systems that can be accessed from mobile devices.

Carsten Kwirandt, head of marketing and business development at Alphabet Inter‐ national told the conference that tradi‐ tional lease cars will be replaced. “The customer is at the centre and we must understand what they need,” he said, “We would prefer them to have a one‐stop shop experience.” This might involve a corporate car sharing scheme and a mobility budget for the end user so they can choose how to spend it.

Long distance travellers use multi‐ modal transport anyway, a combination of car, rail, air, taxi and other transport modes. Co‐ordinating this travel and developing a model that can be used for booking, tickets and payment is the objective of the All Ways Travelling Consortium, a project initiated by the European Commission.

The project was outlined by Nigel Alston of Amadeus, which is a partner in the consortium. The first stage of the project, a study of multi‐modal transport has already been completed and the second phase is underway to develop a means of delivering an outline for a pan‐ European system to be developed. Trav‐ ellers are becoming more selective and want a smooth door‐to‐door travel expe‐ rience, said Alston. Amadeus estimates that there will be a doubling of travel need from 2014 to 2030. Obstacles to development of a system include techni‐

26 / internationalfleetworld.com

cal standardisation. Alston identified a need to define standards. Business mobility is often handled by a range of departments including human resources, expenses and fleet, which makes it diffi‐ cult to find information.

If we take integrated mobility as combining fleet and business travel, Frost and Sullivan has found that the most preferred service in using an inte‐ grated solution is hotel and flight book‐ ing (55%) followed by car rental (53%), train ticketing (44%), fuel payment (41%) and a trip planner (38%). The least preferred options were car pooling (16%), cycle rental (11%) and a naviga‐ tion service (8%).

Priorities changed when respondents were asked about mobile applications once the trip had started. Here journey planning generated the most interest (49%), followed by an airline boarding pass (43%) and online check‐in (41%), arguably all things that travellers would be familiar with.

Who did Frost and Sullivan’s respon‐ dents think would lead the adoption of mobility solutions? Step forward leasing companies who polled the largest share of the vote with 25%, followed by rental companies with 16%. Vehicle manufac‐ turers were also expected to play a part with 14% of the vote.

“Long-distance travellers use multi-model transport anyway.”

COMMITTED TO FOCUSSING ON

QUALITY AND INCREASING YOUR SATISFACTION

DIALOGUES CONSEIL

ALD Automotive is committed to offering you the highest quality of service, allowing you to concentrate on your core business.

Going the extra mile is part of our culture.

Providing customer care processes, satisfaction surveys, drivers’ support, we make your satisfaction our top priority and ensure to be at your side wherever you need us.

www.aldautomotive.com

MANAGEMENT Insurance

IMD2 – where do we stand?

Lease and rental vehicle insurance could be about to become more expensive and complicated. John Mitchell, regulatory affairs & real estate leasing adviser at Leaseurope explains.

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ate last year, the Council of the European Union agreed on a general approach to a Proposal for an Insurance Mediation Directive (‘IMD2’) to replace the original Directive adopted in 2002, allowing negotiations to begin and putting the onus on the EU Institutions to now agree a final text for the new Directive.

There is a common understanding that the new Directive should increase consumer protection, improve consis‐ tency between the regimes operating in the different Member States by creating common standards for insurance sales and also improve the regulation of retail insurance sales and distribution practices across the European single market.

It is unclear, however, which issues will prove most contentious. In‐depth discus‐ sions can be expected on key concerns for the leasing and automotive rental indus‐ try, including the definition and treat‐ ment of ancillary intermediaries, professional knowledge and training as well as disclosure requirements.

How did it all start?

The first Insurance Mediation Directive (IMD1), implemented in 2005, hoped to facilitate the establishment of a single market for the sale of insurance prod‐ ucts. However, a review of the Directive carried out by the European Commission a few years later found a lack of harmon‐ isation of regimes across the Member States, with some governments gold‐

“Once the Proposal has been approved and the Directive has been adopted, Member States will have two years to transpose the Directive into national law.”

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plating the measures (i.e. applying more stringent provisions than the require‐ ments specified under IMD1) and others implementing the bare minimum neces‐ sary for compliance.

As a result of the review, the Commis‐ sion proposed to replace IMD1 with a revised Directive, or ‘IMD2’ as it is known.

What is next?

With the recast of the Insurance Media‐ tion Directive, a number of important reforms relating to the distribution of insurance are envisaged together with more stringent standards in line with legislative efforts to increase consumer protection following the financial crisis.

Currently, the EU Institutions are in the middle of a difficult negotiating process with the hope of finding consensus among their differing views for a revised Insur‐ ance Mediation Directive.

Once the Proposal has been approved and the Directive has been adopted, Member States will have two years to transpose the Directive into national law.

As things stand, Member States should have until the middle of 2017 to imple‐ ment the IMD2 requirements into national law.

What is at stake for the leasing and automotive rental industry?

The Commission Proposal aims to regu‐ late all intermediaries involved in insur‐ ance distribution, including ancillary intermediaries. Leasing and automotive rental companies would traditionally be considered as ‘ancillary insurance inter‐ mediaries’, i.e. companies that do not sell insurance as their principle business. As such, the Commission correctly suggested a proportionate and lighter regulatory regime for ancillary intermediaries, in line with Leaseurope’s longstanding position.

In their original Proposal, ancillary insur‐ ance intermediaries only needed to comply with a light ‘declaration proce‐

dure’ to reflect the fact that their main professional activity lay outside the distribution of insurance.

However, more recently the European Parliament and the Council sought to change those provisions relating to ancil‐ lary intermediaries in such a manner that requirements may become dispropor‐ tionate for them. Likewise, the Council proposed to modify the provision exempting certain ancillary intermedi‐ aries and wants to restructure the Direc‐ tive. Differing from the Commission Proposal and that of the European Parlia‐ ment, ancillary intermediaries, who are not exempt, would have to comply with the entirety of the Directive and the specific provisions regarding knowledge and information requirements as well as the rules regarding conduct of business.

Importantly, it appears that the Council wants the light ‘declaration procedure’ for ancillary intermediaries to be removed. Simply put, ancillary interme‐ diaries would be registered similarly to more specialised insurance intermedi‐ aries. While they propose to retain discretion for Member States who can require an insurance distributor to be responsible for the registration of an ancillary insurance intermediary if they are responsible for their activities, the fact remains that ancillary intermediaries would be registered similarly to all other insurance intermediaries. The discretion in the Proposal only extends to identify‐ ing who it is that will be responsible for that registration process. This would be unfortunate.

Such a move would reintroduce aspects of the problematic discretion afforded to Member States under IMD1 allowing different national authorities to treat similar ancillary intermediaries in a variety of ways. This would promote the existing fractured nature of the insurance distribution market and be contrary to one of the original aims

of IMD2, which is to provide further harmonisation across the EU. Secondly, the Commission Proposal seeks to strengthen minimum profes‐ sional knowledge requirements, to ensure that all distributors’ compe‐ tences match their distribution channel and the complexity of the products they distribute.

While this is a welcome proposal, the Council is looking for a Directive where these requirements are organised primarily by distributor type, with no real consideration given to the complex‐ ity of products being distributed. Hence a business that distributes non‐complex, low value, short‐term insurance prod‐ ucts but that does not qualify as an ancil‐ lary intermediary would need to comply with the much more stringent and burdensome professional knowledge and training requirements applying to, e.g., life insurance brokers. In our view, this is completely disproportionate and unwarranted.

Will the consumer be better protected?

Some trade bodies and consumer organ‐ isations consider that all points of sale should be regulated identically. We believe that this would only cause unnec‐ essary complication for the provision of useful and needed insurance products at the point of sale and that it may in fact be against the interests of the consumer. A Directive disproportionately impacting sales channels where the sale of insur‐ ance is only a side‐line activity, may lead to less competition, a reduction in consumer choice, potentially higher prices and less convenience.

Additional costs required to achieve compliance may mean that it simply will not be worth it. If the provision of these products becomes too expensive and/or burdensome, leasing and rental compa‐ nies may indeed stop distributing them.

Taking car rental as an example, insurance products mediated are typically of low risk and of very low value and they

normally cover only a very short period of time, usually less than five days. The opin‐ ion of the conciliation service in the UK and of the European Car Rental Concilia‐ tion Service (ECRCS) at European level confirm there is little evidence of miss‐ selling or consumer harm attached to these products. The most likely source of consumer harm may therefore become automotive rental customers no longer being in a position to get the right level of insurance cover in a convenient manner or at all. This cannot reasonably be the objective of the legislators.

Ultimately, if the compliance burden is disproportionate, it will only be to the consumers’ detriment because of the lack of protection available. However, on a posi‐ tive note, we remain hopeful our message has been received and understood and that key stakeholders will recognise the importance of a certain and proportional regulatory regime, as originally espoused by the Commission, it being to the benefit of all, particularly the consumer.

internationalfleetworld.com / 29

INTERVIEW Simon Oliphant, Hitachi Capital

New lease of life Leasing and business mobility products have growth potential but there’s no universal model, Simon Oliphant of Hitachi Capital tells Steve Banner.

S

imon Oliphant must sometimes wonder whether his business card is big enough given the number of posts he occupies after a series of management changes at Hitachi.

Now UK chairman of Hitachi Capital Vehicle Solu‐ tions having previously served as chief executive offi‐ cer, he remains a director of parent company Hitachi Capital UK as well as being placed in charge of a new strategy office created by Hitachi Capital Corporation Japan. The aim of this new operation is to help foster global growth, with a particular focus on Europe.

Room for growth Having led last year’s acquisition of Poland’s Corpo Flota he is well‐suited to this role; and there is still plenty of scope for operational leasing to grow in Eastern Europe in particular, he contends.

“In Poland its penetration is less than 30% compared with the 50% to 60% seen in more mature markets,” he observes. The Czech Republic and Hungary offer potential too, he believes.

Move further east however and things become rather more problematic, he admits.

“Leasing businesses are suffering in Russia what with the devaluation of the rouble and the impact of sanctions and the economy there is struggling,” he says. Ukraine’s difficulties need no further explanation.

Turkish delight Turkey however offers bright prospects, he believes, thanks in part to the high front‐end price of executive cars.

“The special consumption tax that is imposed means that something like a BMW 5 Series can set you back well over €200,000,” he points out.

“However, strong residuals mean that you can typi‐ cally recoup 70% to 80% of this when it is disposed of second‐hand.”

It is a scenario that is almost tailor‐made for oper‐ ational leasing. “The position in Singapore is very similar,” he adds.

How about the situation in China? “In the long term the possibilities are massive but at present the pene‐

30 / internationalflfeetworld.com

tration of operational leasing is comparatively low,” Oliphant observes.

Sudden tax changes One difficulty is the risk of sudden and unexpected changes made by the government to the way in which leases are treated for tax purposes. “That happened quite recently and leasing companies were not consulted in advance,” he says.

Other countries in South East Asia offer potential too, he adds. “At present, however, they are for the most part relatively immature so for the moment the packages offered are less‐complex than those offered in Europe,” he comments.

A challenge posed by many of these countries is the absence outside urban areas of the comprehen‐ sive supporting infrastructure (franchised dealers, high‐calibre independent workshops, fast‐fits and so on) that operational leasing typically requires. That need not make life impossible for lessors says Oliphant, but it does mean they have to adapt to the prevailing local conditions.

Past meets future “It may mean for example that you have to resort to manual invoicing – raising an invoice and putting it in the post – and to getting any work that needs done authorised by telephone,” Oliphant says. In effect it means turning the clock back to the way Western Europeans did things 20 or 30 years ago; but it is an approach that worked then (albeit slowly) and can work now.

“Remember too that there are many emerging markets that make good use of technology,” he says. “Thailand for example is very advanced in its use of GPS.” Mobility budgets will however only work satisfac‐ torily in countries with highly‐developed support mechanisms he says; an all‐encompassing rail network for example.

“The use of rail travel, car clubs and so on has a lot of potential,” Oliphant comments. “The key challenge is how you set about joining all these things up.”

“South-east Asian markets are for the most part relatively immature so for the moment the packages offered are less-complex than those in Europe.�

internationalfleetworld.com / 31

IAM REPORT Australia

Driving Down Under Driving advice for business travellers from the Institute of Advanced Motorists.

A

ustralia’s historical ties with the UK show in that Australians drive on the left. Similarly all road signs are in English. Main routes are wide and largely of very good quality. All distances are measured in kilometres, which should be easier for Continental Europeans.

Overseas visitors to Australia can drive using their home country driving licences for up to three months, but there are restrictions and you should consult the rules of each Australian state to ensure that you comply.

Generally you can drive on a current overseas licence as long as: You are still a visitor, you have not been disqualified from driving, your licence has not been suspended or cancelled or your visiting driver privileges have been withdrawn. Tourists, people on limited‐duration business visits and working visa holders are all regarded as tempo‐ rary visitors. Some Australian states specify that licences must be written in English, or if not that the driver has obtained an international driving permit (IDP). Drivers must carry their current overseas licence, IDP or transla‐ tion with them when driving.

Some car rental operators require a licence that includes photo ID. If your licence does not include this, you will need to obtain an IDP before travelling to Australia, if you want to rent a car.

Many road traffic laws are common across state borders.

The blood alcohol limit is 0.05% throughout Australia and the police are very vigilant about this and on wearing seat belts.

Any accident involving injury must be reported to the police, and any driver involved in an accident must give assistance to any injured party if they are able to. Leaving the scene of an accident is regarded as a very serious offence and penalties are harsh.

A standard 50km/h speed limit applies in urban areas with streetlights. Signposted school zones have a 40km/h limit during certain school hours and are signposted in New South Wales and Victoria, often with flashing lights.

These limits also apply to days when teachers but not students are in school. Be aware that school holidays vary from state to state so crossing borders can suddenly mean you are in a school zone.

The speed limit outside the cities also varies between states. In Victoria, Tasmania, New South Wales, Queensland and South Australia the default speed limit is 100km/h.

32 / internationalfleetworld.com

In Western Australia and the Northern Territory the default speed limit is 110km/h and in the Northern Territory it can be up to 130km/h on major highways.

In Australia’s major cities, where you are most likely to be driving, early morning and early evening commuter traffic can bring congestion so best avoid these hours if you can.

A peculiarity of Melbourne is the tram system. Normally cars drive over the tram tracks and there will be a dotted yellow lane marker left of the tracks meaning cars can drive in the tram lane. If there’s a solid yellow line next to the tram lane, cars must not drive there.

Tram passengers have right of way when crossing the road to or from a tram. Open tram doors count as a stop sign; some (but not all) actually have a sign that pops out.

Never drive past a tram at a stop.

It is illegal to turn left on a red traffic signal unless sign‐ posted, and in some states it is illegal to do a U‐turn at a traffic signal, unless otherwise signed. In Victoria and the Australian Capital Territory this move is allowed on a right arrow except where signposted. Pedestrians always have the right of way.

FLEETW RLD FRIDAY 23RD OCTOBER 2015 AWARDS DINNER THURSDAY 22ND OCTOBER 2015

MILTON KEYNES

www.vanfleetworldlive.co.uk

FLEET FOCUS Australia

Car manufacturing is ending, the economy is slowing and Australians are moving away from big saloons, as John Kendall finds out.

34 / internationalfleetworld.com

A

ustralia is squaring up to losing its car manufacturing industry. Ford pulls out in 2016, followed by Toyota and GM in 2017, bringing an end to Australian built Holden models, arguably the motor manufacturer that many Aus‐ tralians have identified with. It’s not quite the end though. The truck industry is still active in the country with four manufac‐ turers represented.

Volvo Trucks has an assembly plant at Wacol in Queensland and also owns the US Mack Trucks brand, popular in the country, Kenworth, part of the US PACCAR truck maker, builds vehicles in Australia and Iveco also produces trucks in the country.

Australian Jac Nasser, former Ford boss had warned before Ford announced its decision that if any of the three decided to quit, the other two would follow, as the supplier base for the industry would not be viable. In March, the Australian Government reinstated €340.4m in State funding to ensure that the industry can continue until 2017. The funding should benefit suppliers too.

CHINA-AUSTRALIA DEAL Import operations will continue for all three manufacturers but the signing of the China‐Australia free trade agreement last year could open up the market to Chinese manufactur‐ ers. Under the agreement, the 5% tariff levied on Chinese manufactured products will be phased out, in return for a similar relaxation of import duties on Australian manufac‐ tured exports and commodities.

Australia appears to enjoy thriving vehicle sales at the moment, even though the economy is beginning to slow down after 23 years of consecutive growth. Data from the Federal Chamber of Automotive Industries (FCAI) shows that in June, sales reached 125,850 vehicles, 6.4% up on June 2014. June sales were up 0.4% on May. SUVs saw the highest growth with 42,256 sales, which were 14.7% higher than in June 2014. Passenger cars rose 4.7% to 56,386, while light CVs fell 33.1% to 23,758.

Australia

moves on internationalfleetworld.com / 35

→

FLEET FOCUS Australia

SUVs like the Holden Trax are replacing large saloons on Australian roads.

→

BUSINESS CAR SALES RISING FCAI chief executive Tony Weber commented, “In June 2015, we have seen new car sales to business increase 10.5%. Specif‐ ically, business buyers purchased 20.8% more SUVs, 9.1% more passenger cars and 3.4% more light commercial vehicles.

“Sales to private buyers rose 3.7% and sales to government buyers rose 3.5%.”

For the January to June year to date (YtD), total sales reached 578,427, 3.3% higher than the same period in 2014. Total 2014 sales stood at 1,113,224, 2% down on 2013.

Part of the current story is discounting, which propelled the Hyundai i30 to become the best‐selling car in Australia in June, with a price reduced by around €4,765 for many models, putting the i30 ahead of the 2014 best seller, the Toyota Corolla, and Mazda3. Over 5,500 i30s were sold, compared with 4,150 Toyota Corollas and 4,130 Mazda3s, with the Corolla in the lead so far this year, according to the news.com.au website. The website says that three ‘Utes’ – pickup trucks were in the top 10 best selling cars for June, with the Toyota HiLux the second best seller overall after the i30. The other utes to feature were the Mitsubishi Triton and Ford Ranger in fifth and sixth places respectively.

SUV SALES GROWING FAST As LeasePlan points out, the Australian love affair with the V8 and large saloons has slipped away into history. The market that was dominated by the Holden Commodore, Ford Falcon and Toy‐ ota Camry has given way to smaller cars and the rise of the SUV – arguably well suited to Australia’s mix of tarmac and unpaved roads. SUV sales were up 13.8% YtD compared with 2014.

For these reasons, LeasePlan does not expect the decline of the Australian car industry to have a dramatic impact on the business car sector, with one exception, “Where there may be an impact is in Government or public fleets, where there may have been a policy that required purchasing of locally made vehicles. These fleets will need to adjust their future fleet composition considerations and review their fleet policies,” reckons LeasePlan.

36 / internationalfleetworld.com

The company reckons that currently 55% of new car sales are retail, 37% are business, but the figure is in decline, while Gov‐ ernment business accounts for 4% and rental companies 4%.

As Tony Weber of FCAI indicated, business car users are asking for a broader range of cars. According to LeasePlan, “The business fleet tends to mirror private buyer trends.

There is a decrease in appetite for the large, six‐cylinder sedans, and an increase in demand for smaller cars, as well as SUVs and Light Commercials. Small cars dominate the passenger car segment and SUV sales are up 13% YtD (June) compared to 2014.”

As we have seen, Australians have been big buyers of ‘Utes’ for decades, while the SUV sector is also growing in popularity.

LeasePlan says that SUVs and light commercials accounted for almost 50% of new car sales in 2014, with SUVs accounting for around 32% of sales and LCVs 17%. 4x4 twin or dual cab ‘Utes’ dominate the Light Commercial segment and as we have seen three out of the top five best sellers in June were ‘Utes’.

Business and private cars attract the same levels of taxa‐ tion in Australia, but business vehicles are treated differently as a business operating cost.

LeasePlan has identified several trends in the fleet man‐ agement sector, “Fleet management providers need to deliver increasing efficiencies and innovations to satisfy a demanding customer base.

“With a slowing economy, the focus sharpens on cost con‐ trols and additional services that will improve fleet operations.

“The responsibilities of the employer to provide a safe workplace also results in growing expectations of fleet providers to assist with risk management services, and deploy new technologies such as telematics to monitor and report on driver and vehicle behaviour.

“Providing system support for more pool car and car shar‐ ing within fleets is also important.

“Maintaining a competitive cost base while delivering these expanding services is a challenge for any Australian fleet provider.”

REMARKETING Australia

Changing markets Philip Browne, director of Autorola Australia, discusses the ever-changing nature of the country’s new and used car sectors.

T

he 2015 Australian new car market is running in parallel with 2014. Sales to the end of May totalled 452,577, compared with 441,642 for the same period in 2014. On paper all looks rosy in the market, but looks can be deceiving.

The market is undergoing change, which is set to continue over the coming two‐three years. At the heart of this change is the closure of the Ford, GM (Holden) and Toyota produc‐ tion plants following the Government’s decision to cut subsidies for the industry.

This will mean that once these plants have closed, all cars will be imported into the country and despite a current 5% import duty in place, the world’s auto makers all have importers and franchised dealer networks.

While Australia’s remaining new car production plants continue to build cars, the 5% import duty is likely to continue as it safeguards the many hundreds of jobs in the Australian car manufacturing sector.

But with less than a year to go until a General Election, how that import duty is set to change remains undecided.

One option is to mirror New Zealand, which removed its car import duty completely.

Already Korean and Japanese brands are very dominant and their sales continue to grow, while some enterprising motorists are importing high value prestige cars privately rather than buying through a franchised dealer in a bid to save money.

Already used car dealers are importing thousands of Japan‐ ese used cars into the market. Like Australian cars, these are right‐hand‐drive and in addition, extremely cheap, although their quality and roadworthiness is regularly under scrutiny.

The market is flooded with cheap Japanese used cars, which is helping keep new car price inflation in check as well as keeping used car prices lower.

Keeping new car inflation in check is a positive for any government. If import duty is removed, new car prices are likely to remain constant, which is good news for Australian motorists. Prices might even start to fall, as the Chinese manufacturers are the next to eye up the opportunities to launch their value for money brands in the country.

Meanwhile the used vehicle and salvage remarketing companies continue to proactively use online remarketing more and more as they look to optimise residual values and look at selling a vehicle in situ, rather than having to move it hundreds and even thousands of miles to a physical auction.

Outright purchase fleets are also switching to online. Not for profit organisations like charities and Government bodies purchase vehicles outright to reduce their tax burden. These organisations therefore need help and support when it comes to disposal time, which is where online remarketing is coming into its own.

As the new and used car markets continue to evolve, so the further adoption of online remarketing will just be a small piece in the jigsaw of change that is modern day Australia.

internationalfleetworld.com / 37

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29-30th September 2015 • Cotswolds, UK internationalfleetworld.com / 39

NAFA International Fleet Academy

Cleaning up emissions CHAPTER 15

International fuel quality This chapter explains how the level of sulphur and other harmful particulates found in fossil fuels can be controlled, and why fuel quality varies in a global market place.

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

40 / internationalfleetworld.com

Concerns about sulphur Government regulations establish standards that apply to all fuels in a given country. Those regulations are now requiring significant changes in the configuration of fuels to make them cleaner and less polluting. In particular, regula‐ tions are requiring reductions in the sulphur content of both petrol and diesel fuels globally.

Studies have shown that lowering fuel sulphur leads to reduced overall emissions of hydrocarbons (HC), carbon monoxide (CO), nitrogen oxides (NOx) and airborne toxins such as benzene. Sulphur is found naturally in crude oil and passes into refined products such as transportation fuels. When sulphur is emitted into the air as a result of fuel combustion, its compounds can have negative environmental and health effects.

Reducing emissions Overall, the majority of countries around the world are moving toward low‐sulphur, clean fuels. In industrialised countries where vehicles soon will have to follow the most advanced emission limita‐ tions for NOx and carbon dioxide, ultra‐low sulphur fuels at 10 parts‐ per‐million (ppm) have been requested by the governing bodies.

This will require the fuel refin‐ ing industry to continue to invest billions in new desulphurisation capacity and technology to address the zero sulphur fuels requirement in Europe as well as the Emission Trading Scheme in the European Union. The impact of this requirement will equate to higher fuel cost with the benefit of lower emissions.

Fuel Quality rankings In 2011, The International Fuel Quality Centre (IFQC) ranked the top 100 countries based on sulphur limits in petrol, each of which is measured in parts per million. Countries were ranked based on maximum allowable sulphur limits in national stan‐ dards, limits in local/regional standards (such as specifications for cities/states), and year of implementation (see right).

“ The fuel refining industry will continue to invest billions in new desulphurisation capacity and technology.”

International Fuel Quality Centre Ranking of Countries (cross-section) Rank Countries 1.

Germany 2.

Japan 3.

Austria, Denmark, Estonia, Finland, Hungary, Sweden 4.

Albania, Belgium, Bulgaria, Cyprus, Czech Republic, France, Greece, Iceland, Ireland, Israel, Italy, Latvia, Liechten‐ stein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Switzerland, United Kingdom 46.

United States 48.

United Arab Emirates 51.

Georgia, Russia 53.

Australia 54.

China 55.

India 64.

Mexico 79.

Indonesia, Philippines, Sierra Leone, South Africa, Trinidad & Tobago 100. Ecuador

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

Taxation of fuel Increased fuel cost can be predicted when a fleet is located in a region of the world that is in the process of converting to low‐ sulphur fuel standards. Global fleet managers should anticipate the cost‐per‐ liter for European fuel to be higher as regulations on the reduction in sulphur affect the yield of fuel refined for use.

On the other hand, it is also an opportu‐ nity to reduce emissions. The reduction in sulphur and benzene in both petrol and diesel fuel will result in a higher quality fuel product for the European consumer.

Fleet managers can expect to achieve cleaner emissions and improved engine life through the use of these more efficient fuel products.

Hedging Many sophisticated markets offer hedging as a means of budgeting fuel cost. In basic terms, hedging means that the fleet manager agrees to buy a certain number of gallons of fuel at a specified price during the year, and is guaranteed to pay that price regardless of prevailing fuel costs. Hedging is a type of risk management that can stabilise a company from market fluctua‐ tions such as those experienced in 2008.

There is a potential danger to this strat‐ egy, however. While hedging can provide fleets a competitive advantage if fuel prices rise, if prices fall, fleets also risk a higher cost of operations as fuel prices become lower.

Next month...

We look at global regulatory, legislative and legal environments.

internationalfleetworld.com / 41

PROFILE Audi

Age of e-tron Audi’s international range will grow to 60 variants by 2020, with fully electric and hybrid drivetrains at the forefront of the brand’s product drive, alongside a cluster of dynamic new SUVs.

“Audi became the first premium carmaker to sell over half a million units in China within a single year.”

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Manufacturer Audi AG Total sales 2014 1,741,100 Headquarters Chemnitz, Germany Global market share 2.4% No. of models 14

Worldwide availability of the A3

Three new SUVs by 2020

A

udi AG achieved an 11% sales uplift year‐on‐year to 1,741,100 units in 2014, exceeding the sales target of 1.7m set out by the Audi 2020 growth plan. The brand’s ever‐popular compact SUV Q model range posted sales increases in all markets to represent 507,500 vehicles, and worldwide availability helped to boost sales of the A3 family by 53% over 2013 levels. Launched in August 2014, but not avail‐ able in many major markets until this year, the A3 Sportback e‐tron plug‐in hybrid is expected to further broaden the A3’s appeal.

Overall, Audi reported new all time sale highs in 50 countries last year, with deliv‐ eries increasing by more than 100,000 units for the fifth year in a row. With 19,238 deliveries, December 2014 was the strongest ever month for Audi sales in the USA. The Q5 SUV played a significant role in this sales uplift, rising to become the best sell‐ ing Audi model in the market, while the Q7 also made progress in its ninth year on sale, with a sales increase of 16%. In the compact segment, the Q3 extended Audi’s SUV portfolio in the US in the second half of the year.

Canada (+20%) and Mexico (+11%) also contributed to Audi’s successful year in North America, with both countries posting double digit growth. Sales in South Amer‐ ica increased considerably for Audi AG, above all in Brazil (+90% to 12,350 cars) following the opening of a new manufacturing facility.

In Europe, Audi UK in particular recorded a strong boost in sales, reaching the 150,000 mark for the first time with a 12% uplift to 158,829 sales. Audi also saw strong growth in Spain (+9%); the home market of Germany (+2%) and Italy (+4%). In Russia however, due in large part to the challenging economic and political conditions in the market, deliveries were 6% below 2013’s results.

Orders for the Ultra portfolio (which incorporates Audi’s most efficient technolo‐ gies and engines for improved fuel consumption and lower emissions), on the A3 accounted for nearly 10% of the brand’s sales in Europe last year. For the A6, the share of Ultra models in Europe was around one third.

Among the major Asian markets, South Korea recorded the strongest growth for Audi, up 38% to 27,647 units in 2014. Thanks to strong demand for the compact models in particular, the brand’s sales figures have increased more than four fold in the market over the past five years. Despite slowing overall market growth, Audi reported a positive sales performance both in Japan and India, with both markets up 9%.

Sales increased by 18% to 578,932 units in China, meaning that Audi became the first premium carmaker to sell over half a million units in China within a single year.

Audi manufactures long‐wheelbase versions of the A8 and A6 specifically for the Chinese market, and the mid‐range SUV models perform well. Premium car sales currently account for around 9% of the total sales in China, compared to between 13% and 15% in mature markets, representing a target market for Audi.

AUDI Global sales, by territory Territory Europe (of which Germany) USA Mexico China Total

2013 732,278 250,025 158,061 11,712 491,989 1,575,480

2014 762,900 255,582 182,011 12,939 578,932 1,741,100

% change +4% +2% +15% +10% +18% +11%

Q1

Arriving next year, the Q1 will be under‐ pinned by the same platform used in the A3 and broaden the A1 family to include a crossover version. The 2016 Q1 will sit at the bottom of the SUV line‐up, and is positioned to rival the Nissan Juke.

The Q1 is expected to offer a range of fuel efficient combustion engines; most likely brought forward from the A1, alongside an electric hybrid e‐tron system. The Crosslane Coupe concept shown at the Paris Motor Show in 2012 also hints at the potential for a fully‐ electric drivetrain for the Q1.

Q8 The Q8 – which will take on the Mercedes‐Benz GL‐Class (soon to be renamed GLS) will follow in 2019 and is likely to share its platform with the new Q7. The premium Q8 will top Audi’s SUV range, and is described as being on a par with the A8 in terms of performance and technology features.

The Q8 will extend Audi’s reach at the top of its SUV line‐up, and could prove crucial in markets such as China and the Middle East where sales of premium models are particularly strong.

Electric SUV There are fewer details about the third SUV, likely to be badged Q6, which Audi says will be a sports‐focused model featuring an electric drivetrain, due in 2018. This could denote a fully‐electric system similar to the forthcoming Tesla Model X, or possibly a plug‐in hybrid or range‐extender setup – both of which have been displayed in concept cars and production models.

Audi says the newcomers will set out the foundations for ongoing growth.

The carmaker delivered 591,000 cars in the first four months of the year and, with the new Q7 and A4 arriving during 2015, it expects this to be a record year.

→

internationalfleetworld.com / 43

PROFILE Audi

→

Where are they made?

Manufacturing plant locations Europe

1 Audi Neckarsulm, Germany – A4 Sedan, A5 Cabriolet, S5

Cabriolet, RS 5 Cabriolet, A6 Sedan, A6 hybrid, A6 Avant, S6, A6 allroad quattro, RS 6 Avant, A7, S7, RS 7, A8, A8 L, A8 hybrid, S8, R8, R8 Spyder, R8 LMX 2 Audi Ingolstadt, Germany – A3, A3 Sportback, S3, S3

Sportback, A3 Sportback e-tron, A3 Sportback g-tron, RS 3 Sportback, A4, A4 Avant, S4, S4 Avant, A4 allroad quattro, RS 4 Avant, A5 Sportback, A5 Coupe, S5 Sportback, S5 Coupe, RS 5 Coupe, Q5, Q5 hybrid quattro, SQ5 TDI 3 Audi Brussels, Belgium – A1, A1 Sportback, S1, S1 Sportback

7

3 1 5 2 4

6 8 9 10

4 Audi Hungary Motor Kft., Győr – TT Coupe, TT Roadster,

A3 Sedan, A3 Cabriolet 5 Volkswagen Slovakia, Bratislava – Q7 (made to order) 6 Volkswagen Group Russia, Kaluga – A6, A8 L (made to order)

11

7 SEAT Martorell, Spain – Q3 (made to order)

Asia

8 Audi Changchun, Jilin province, China – A4 L, A6 L, Q3, Q5 9 Audi Foshan, Guangdong province, China – A3 Sport-

back, A3 Sedan 10

Skoda Auto India PVT Ltd., Aurangabad – A3, A4, A6, Q3, Q5, Q7

11

Pt. Garuda Mataram Motor, Jakarta, Indonesia – A4, A6 (made to order)

FIN R

New models and technology

fleet in numbers

33%

The percentage of Audi customers who chose an SUV in 2014.

241,657 Total number of A6 Avants sold in 2014, making it Audi’s second-best selling model after the Q5.

3.2 The number of seconds it takes for the forthcoming Audi R8 V10 Plus to go from 0-100kph.

44 / internationalfleetworld.com

evealed during the carmaker’s 126th Annual General Meeting in May, Audi’s product expansion strategy will see the range swell to 60 variants by 2020 – assisted by an €24bn investment in facilities, the development of new tech‐ nologies and increased production capacity.

The new Q7 spearheads this ambitious launch schedule. Lighter by up to 325kg and up to 26% more efficient than its predecessor, the new Q7 is the lightest in its class and brings an all‐new chassis. It is also 37mm shorter and 15mm narrower than the outgo‐ ing model, but offers markedly more room inside for passengers and luggage thanks to a clever redesign of the interior.

In Europe, the new Q7 launches with two V6 engines: a TDI and a TFSI. Shortly after launch the Audi Q7 e‐tron quattro will be made available, which is the first plug‐in hybrid from Audi with a diesel engine. A full battery charge is sufficient for a distance of 56km, and prices start at €60,900 for the Q7 3.0 TDI (200 kW).

Also due later this year, the new A4 is built on the latest version of the Volkswagen Group’s MLB platform and despite its larger dimensions; the model’s weight has been reduced significantly – by up to 120kg depending on the engine – thanks to lightweight materials used in its construction.

The new Audi A4 and A4 Avant (due early 2016) will launch with seven engines – three TFSI and four TDI – with fuel economy improved by up to 21% whilst CO2 dips below 100g/km in the 150hp 2.0 TDI ultra sedan and Avant. A g‐tron version that can use natural gas or the sustainably produced Audi e‐gas as fuel will follow later in markets with the appropriate infrastructure. New technologies include Audi’s Virtual Cockpit all‐digital instrument cluster, wireless on‐board charging for mobile phones and a completely new MMI system with smartphone‐like controls.

Further ahead, Audi has hinted at the technology and design due for its future models with the Prologue concept. Shown as a coupe, Avant and crossover, similar to the carmaker’s allroad vehicles, it features a high‐performance plug‐ Prologue concept in hybrid drivetrain and is similar in size to an A8. The 14.1kWh lithium‐ion battery pack in the rear gives the car a range of 54km in pure electric drive mode. With its AWC (Audi wireless charging) tech‐ nology which Audi is developing for series production, the battery can also be charged inductively.

Audi fleet model range

A1

A3

A4

New A4

A5

A5 S

A6

A7

A8

Q3

Q5

Q7

TT

R8

Variants: 3/5dr hatchback Markets: Global Fuel: 3.4-7.2l/100km CO2: 89-168g/km

Variants: : 4dr sedan, wagon Markets: Global Fuel: 3.7-5.4l/100km CO2: 95-134g/km

Variants: 4dr sedan, wagon, crossover, long wheelbase Markets: Global Fuel: 4.2-9.6l/100km CO2: 109-223g/km

Variants: Crossover Markets: Global Fuel: 4.4-8.4l/100km CO2: 114-198g/km

Variants: Coupe, cabriolet Markets: Global Fuel: 4.2-7.3l/100km CO2: 110-169g/km

Variants: 3/5dr hatchback, 4dr sedan, cabriolet Markets: Global Fuel: 1.5-8.1l/100km CO2: 35-189g/km

Variants: Coupe, cabriolet Markets: Global Fuel: 4.2-7.9l/100km CO2: 109-184g/km

Variants: 5dr coupe Markets: Global Fuel: 4.8-9.5l/100km CO2: 124-221g/km

Variants: Crossover Markets: Global Fuel: 4.9-8.5l/100km CO2: 129-199g/km

Variants: 4dr sedan, wagon, crossover, long wheelbase Markets: Global Fuel: 4.0-7.8l/100km CO2: 104-180g/km

Variants: 5dr coupe Markets: Global Fuel: 4.2-7.7l/100km CO2: 109-179g/km

Variants: Limousine, long-wheelbase Markets: Global Fuel: 5.7-11.0l/100km CO2: 146-254g/km

Variants: SUV Markets: Global Fuel: 1.7-7.7l/100km CO2: 46-179g/km

Variants: Coupe Markets: Global Fuel: 11.4-12.3l/100km CO2: 272-287g/km

internationalfleetworld.com / 45

BMW 3 Series With new engines, the segment pioneer is re-asserting itself against newcomers, says Alex Grant.

SECTOR Compact Executive PRICE €30,200–€53,860 FUEL 3.8–7.9l/100km CO2 99–185g/km

W

three‐cylinder diesel yet, but it can only be a matter of time. hile BMW might seem focused on niche models, Absent from the new range is the ActiveHybrid 3, a model the 3 Series is a reminder that its core products are never that well‐tuned to European tastes, but its shoes are the most important. Claimed to be the figurehead more than filled by the 330e plug‐in hybrid due next year. of its driver‐focused brand identity, the sedan and Touring With a combined 252hp from the combination of petrol and account for a quarter of BMW’s global sales, with 14 million electric power, and 35km of electric range available at high sold in the 40 years since the line was first introduced. speed, this will offer tax‐conscious CO2 emissions of 49g/km But the car that was once the pioneer now faces and official fuel consumption figures of 2.0l/100km. BMW competition not only from other German brands, but from reckons it should have plenty of corporate appeal. a resurgent Lexus, Jaguar and soon Alfa Romeo too. With But it’s the staple 320d versions which are likely to continue this mid‐cycle refresh, the 3 Series is reasserting itself to be the corporate favourites. This badge covers two versions – against rivals’ latest innovations – three‐cylinder engines, the upgraded 190hp model consumes a plug‐in hybrid and sub‐100g/km CO2 as little as 4.0l/100km, while emitting emissions among them.

106g/km, and the lower, more streamlined Visually, it’s an easy update to miss, 320d EfficientDynamics Edition takes the comprising LED‐lined headlights similar 3 Series sedan under 100g/km for the first to the Concept 4 Series Coupe from time. The latter does take a drop in power 2013, and a few accents of chrome to 163hp, though, and the 3.8l/100km inside. Mercedes‐Benz still has the economy figure is only achieved with the segment lead on cabin aesthetics, but it’s eight‐speed manual gearbox. hard to pick fault with the fuss‐free solid‐ Regardless of engine choice, the 3 Series ity of Munich’s efforts. A high‐speed LTE still sets a high standard for driver enjoy‐ data connection means the navigation ment in this segment. Stiffer pickup system can download map updates for points, revised dampers based on the free for the first three years, which is M235i and a re‐tuned steering setup good news for business users. lightly polish what was already a fine Drivetrains are the focus this time, Minor mid-life revisions driver’s car, balanced, agile and commu‐ particularly the petrol engines which are and double-digit CO2 nicative. But, as with the styling, it’s hardly now based on a 500cc‐per‐cylinder modu‐ emissions show BMW a black‐versus‐white transformation. lar design. For the first time, the 3 Series In reality, it didn’t need to be. There’s range kicks off with a 1.5‐litre, three‐ hasn’t got to change been a clear evolution of BMW’s sports‐ cylinder turbocharged petrol engine, much for the 3 Series sedan lineage through six generations of topped out by the effortlessly fast 340i to hold its own in the car, and in a market full of niches, the straight‐six, which delivers effortless, this segment.

3 Series is a deservedly popular slice of linear acceleration with surprisingly low enjoyable familiarity.

CO2 emissions from 168g/km. There’s no

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Volkswagen Polo GTI A fine hot hatch from Volkswagen for those who need less space than in a Golf, reckons John Kendall.

SECTOR Lower medium PRICE From €22,275 FUEL 5.6–6.0/100km CO2 129–139g/km

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.8‐litre engine? GTI badge? There’s almost something To distinguish it from lesser Polos, the GTI comes with nostalgic about the Polo GTI – the latest version of new bumpers, GTI badging and 17‐inch alloy wheels. Red which has an engine of approximately the same size stripes and markings on the radiator grille help to give it as the late Mk I Golf GTI, similar badging, while the Polo a GTI family image. The suspension has been lowered too, is even slightly larger than the original Golf. The idea of by 10mm at the front and 15mm at the back. Three and a performance car based on a hatchback body shell is still five‐door versions are available. at the core of Volkswagen’s GTI range and arguably, the Check your local specification, but expect to find Polo GTI gives drivers the option of a smaller, perhaps included standard LED lights, a GTI roof spoiler, dark red more nimble car than the Golf but still with power that rear light clusters, and chromed dual exhaust pipes. ESC Mk I Golf GTI owners could only have wished for with Sport is standard and can be adapted for track use.

192hp available.

Inside there’s a leather sports steering wheel with The latest Polo range was launched red stitching, cloth seats with black at the Paris Show in September 2014 side bolsters which all hark back to and the GTI model was among the the original Golf GTI. The black interior models to be launched then. Not is another GTI trademark, but there surprisingly performance is brisk with is enough glass to prevent it from the car reaching 100km/h from rest in being oppressive. an impressive 6.7 seconds. But the car The car is as impressive as other GTI can still return low fuel consumption models on the road too. The ride is firm and emissions, if you don’t exploit the but not unacceptably so, the seats are performance. The car has recorded EU supportive and performance brisk. combined consumption of either 5.6 Handling and road holding are as good or 6.0l/100km, depending on which as you would hope. transmission option is chosen.

There is space for four adults, five at a There’s a choice of six‐speed manual squeeze, but legroom would require some or seven‐speed DSG twin‐clutch auto‐ compromise between front and rear seat Everything that a VW mated transmission. It’s the manual that occupants. Boot space is OK but again GTI should be – strong returns the slightly higher consumption, would be a bit pushed for four people. In performance and matched to 139g/km carbon dioxide fleet terms it is realistically a car for some‐ emissions. Again the DSG‐equipped one who rarely uses more than two seats, handling with hatchvariant offers lower emissions at likes good performance but doesn’t want back versatility. It’s 129g/km of CO2 compared with to spend more time at fuel stations than quick too but capable of 139g/km for the manual version. A necessary. At the same time they need a low fuel consumption. generous 320Nm of torque is good for car that is versatile, so the hatchback both performance and economy. layout ticks the right boxes.

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Ford Mondeo Hybrid Alex Grant tries a familiar fleet car, with an unfamiliar drivetrain.

SECTOR Upper Medium PRICE €34,950 FUEL 4.2l/100km CO2 99g/km

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sion, small wheels and a lack of wind and road noise – ress the start button in the Mondeo Hybrid and some‐ doubly impressive with such a quiet drivetrain – make it thing unusual happens – it’s silent. We’ve become so an exceptionally relaxed long‐distance car. used to Ford’s fleet stalwart rumbling into life with Like most hybrids, this is best suited to town driving, but the clatter of a cold diesel engine that the silence of an elec‐ the Mondeo doesn’t disappoint on the motorway. It can tric drive almost seems incongruous. It’s rather nice, too. drive electrically at up to 140kph with gentle use of the This won’t make diesel Mondeos obsolete, but it’s an throttle, and screens either side of the instrument cluster interesting proposition. Fuel economy of 4.2l/100km with give advice on efficient driving. Brake gently to charge the CO2 emissions at 99g/km are both respectable in this battery, keep the power bar within the white box to avoid segment, particularly in a car producing 187hp. But can it burning fuel, and it rewards with fuel consumption that’s compete in a segment which, in Europe at least, is domi‐ easily below 5.0l/100km. nated by diesel engines?

However, that’s achieved by sacrific‐ Electrification is joining the Mondeo ing the eager performance of a diesel range almost as an offshoot of Ford’s engine. This delivers its power in yawns, ‘world car’ plans. So this is essentially accompanied by a dull drone from the the same saloon sold in North America engine as the transmission revs it for as the Fusion, a market where diesel extra kilowatts. It’s not a pleasant car to penetration is tiny and hybrids hold up drive quickly, but that’s not the point. the economy‐focused end of the sector.

Otherwise, its appeal is curbed Ford hasn’t brought the plug‐in version slightly by its saloon‐only range and the to Europe, but clearly it sees space for a battery compartment which takes up a petrol‐hybrid in the range. large section of the boot. The cabin, It isn’t just a rebadged Fusion, though. while neither uncomfortable nor badly Built in Europe, the Mondeo features a built, feels more like a Japanese saloon 2.0‐litre petrol engine instead of the than a European Ford with its plentiful 2.5‐litre used in the Fusion, but with use of shiny grey plastic panels. the same continuously variable trans‐ A brave move on Ford’s The Mondeo is so ubiquitous in fleet mission and two electric motors. One part considering even that it’s an entirely known quantity, which lessens the load on the petrol engine, the Toyota doesn’t offer a makes the hybrid a refreshing proposi‐ other works as a generator, charging the tion. It’s not a car for heavy‐footed diesel lithium‐ion battery in the boot. hybrid Avensis, but with drivers, but it’s one of the segment’s most The drivetrain works seamlessly, with clever technology and refined long‐distance cruisers short of a a smooth handover of power between no price premium over a premium badge, and genuinely fuel effi‐ electric‐only and petrol drivetrains, diesel, it can hold its own. cient with it. Features which make some with the latter making barely more than gentle‐footed cruising very worthwhile. a whirr when driven gently. Soft suspen‐

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Volkswagen Transporter Volkswagen builds on success with sixth generation Transporter, says Dan Gilkes.

SECTOR Mid-weight van PRICE From €24,700 FUEL 5.9–9.3l/100km CO2 153–219g/km

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350Nm and Start/Stop is standard on both engines. olkswagen’s mid‐weight Transporter light Volkswagen has incorporated a host of active safety systems commercial, and its people‐carrying Caravelle and and car‐based technologies in the T6. This includes the usual Multivan counterparts, have been a huge success ESP and ABS braking, plus Automatic Post‐Collision Braking. since the first generation ‘Bulli’ was launched in 1950.

The vans also come with Adaptive Cruise Control, Lane More than 12 million Transporters have been sold in total, Change Assist, Hill Hold Assist and a Driver Alert system. with over two million of the current T5 models alone.

Both driver and passenger have airbags.

The big change for T6 is the adoption of Euro 6 diesel There are also upgraded information and entertainment engines, with Volkswagen offering four outputs from its systems in the cab, with standard DAB radios, Bluetooth updated EA288 2.0‐litre diesel motor. The TDI engines can connectivity and a 5.0‐inch colour touchscreen on all be had with 84hp, 102hp, 150hp and in bi‐turbo form, a models. An optional 6.3‐inch screen can be supplied with a powerful 204hp. Maximum torque from this new range‐ range of navigation and media functions, topping engine is a substantial 450Nm, including MirrorLink, which allows the available from just 1,400rpm. operation of smartphone applications All four engines come with BlueMo‐ through the infotainment system. tion Technology as standard, including Electric windows and heated electric Start/Stop and regenerative braking, mirrors are standard on all trim levels resulting in up to 15% fuel savings. The and the driver’s seat has height, lumbar, Euro 6 TDI engines use SCR, with a 13‐ reach and rake adjustment. Higher trim litre AdBlue tank. Volkswagen has models also come with auto dimming dropped the standard fuel tank capacity rear‐view mirror, auto lights and wipers, from 80 litres to 70 litres to offset this Climatic air conditioning, arrival/leaving additional weight, though the larger lighting, daytime running lights, a heated tank remains available as an option. windscreen and leather covering for the The two lower‐powered engines drive multi‐function steering wheel. through five‐speed manual gearboxes; While both the front and rear of the while the top two come with a choice of With more power, vans have been smartened up, with six‐speed manual or seven‐speed DSG improved economy tighter lines and new lights, the load area automated transmissions. Front wheel and new technology of the Transporter remains unchanged. drive is standard across the range, with The van is offered in two wheelbases and 4Motion all‐wheel drive available as an the Transporter should three roof heights, delivering load option on the higher‐powered vans. maintain Volkswagen’s volumes of 5.8‐9.3m3. Transporter is also The T6 Transporter will also be offered position in the available as a kombi, with a second row with a 2.0‐litre petrol TSI engine, deliv‐ mid-weight market. of seating and load volumes of ering either 150hp or 204hp, in some 3.5‐4.4m3. markets. Maximum torque is 280Nm or

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fleet in figures

China rocks the boat Could the falling Chinese stock market destabilise global growth patterns? John Kendall finds out.

Nissan The Nissan Qashqai was the best-selling SUV in Spain.

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he end of June sent analysts into a frenzy as global car sales data for the first half of 2015 was scruti‐ nised. One of the biggest factors in the past month has been the impact of the slowing of the Chinese economy. It has been much forecast as concerns have grown in recent months. The sharp falls in the Chinese stock market are likely to affect financial markets around the world over the coming months.

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China crisis?

Not surprisingly, the Chinese vehicle market has also felt the fallout. Accord‐ ing to preliminary data from LMC Automotive, the selling rate in June was over 4% lower than in May at 22.8m units/year. Comparing June 2015 with June 2014 shows that sales fell year‐on‐ year (YoY) by ‐2% to 1,819,362, which LMC notes is the first time sales have fallen YoY in June since the global

financial crisis. The effect has been to continue the slow down in year‐to‐ date (YtD) sales, which for the January – June period rose by 2.6% overall compared with 2014 to 12,034,402.

Given the size of the Chinese market, it is not surprising that the slowdown in China is having an impact on global vehicle sales. The overall market is still growing, with January to June YtD sales up 1.2% to 44,261,418. LMC data

shows that the annualised selling rate for June was 87,222,404, which was running below the YtD average of 87,763,693, some 0.5% up on 2014.

LMC data suggests that global demand for light vehicles has declined this year.

North America and Western Europe are holding up well but Brazil and Russia seem unlikely to return to growth in the near future.

Economy boosts US sales Scotiabank indicates that US June light vehicle sales are at their best since mid‐ 2005, up 4% on June 2014 at 1,475,062.

YtD LMC data suggests that 2015 sales are up 4.4% compared with 2014 to 8,508,210. “Gains continue to be driven by the strongest labour market since the late 1990s, rising consumer confi‐ dence and improving household balance sheets. In particular, the ratio of debt‐to‐net worth for U.S. households is now at the lowest level since the turn of the millennium, while wealth levels are at record highs,” comments Carlos Gomes at Scotiabank.

He singles out crossover utility vehicles as the big US sellers with sales volumes 17.5% higher than in June 2014. LMC attributes the US success to, “An improving labour market, high consumer confidence, low interest rates, increased OEM incentives, and lower‐than‐normal summer gasoline prices.”

Charles Chesbrough, senior principal economist at IHS Automotive suggested that, “The strong June auto sales report was no surprise. Buying conditions remain very favourable for consumers with continued low interest rates and manufacturers offering aggressive leas‐ ing deals. There is also new product in the market which is just starting to gain momentum as it arrives in dealer show‐ rooms – such as the new Jeep Renegade, Honda HR‐V and F150 – and these will support continued robust sales as well.”

Southern Europe boosts European Union registrations European Union registrations rose by 8.2% YtD compared with 2014 to 7,169,984, according to ACEA data.

With registrations up 14.6% YoY, this represents the largest YoY increase since December 2009. Amongst the five major markets, Spain posted the largest increase YtD with January to June registrations up 22.0% to 555,222 compared with the same period in 2014. In Italy the YtD market was up 15.2% to 872,951, followed by the UK, up 7.0% to 1,376,889, France up 6.1% to 1,017,493 and Germany up 5.2% to 1,618,949. Overall, the Volkswagen Group took 24.8% of the EU market with 1,775,021 registrations and Volk‐ swagen as the single largest brand with 801,333 registrations.

Jeep posted the largest percentage gain with YtD EU registrations up 186.7% from 14,995 in 2014 to 42,994 in 2015. June 2015 was the brand’s best ever monthly performance in the EU with 8,500 sales according to Jeep, up 176% on June 2014. Of these 5,400 registrations were of the new Renegade.

European True Fleet Dataforce data for the True Fleet market in Europe was only available for the January to May period at the time of writing. Overall, the true fleet market for the European top five countries: France, Germany, Italy, Spain and the UK rose by 9.7% YtD, with Spain post‐ ing the largest average gain for the period of 30.9%. For May, Spain also led the YoY gains with growth of 34.5% while both France and Germany experi‐ enced falls in the market of ‐0.4% and ‐4.8% respectively.

France Taking each country, Dataforce sees Nissan and Opel as the winners in the sector in France with 19.4% growth for

Nissan thanks mainly to Qashqai sales, but with X‐Trail and Pulsar also perform‐ ing well. The new Corsa also performed well with registrations up 189.3%.

Germany Dataforce suggests that in terms of volume growth, the Mercedes C‐Class was the winner in Germany in May, helping to raise sales by 13.4% YoY for the month. Renault and Toyota both recorded double digit growth too.

Italy Small cars were the True Fleet winners in Italy, taking 22.8% of the sector. Fiat led the segment with the 500L, followed by the Ford Fiesta and Fiat 500X, Fiat Punto and Renault Clio. Italians like their SUVs too. The sector took a 21.7% share of the True Fleet sector in May with the Jeep Renegade leading the sector, followed by the Peugeot 2008 and Nissan Qashqai.

Spain Volkswagen recorded a 40.8% rise in Spain in May, giving it True Fleet market leadership, followed by Renault, Peugeot and Ford. BMW experienced a rise of almost 70% taking it to joint fifth place with Opel. Land Rover took a record share of the market at 3.0% for May. The Range Rover Evoque was the second best selling SUV in the sector after the Nissan Qashqai.

UK SUVs accounted for the highest share ever in the UK True Fleet market in May, reckons Dataforce. With a share of 27.2% it’s not surprising that the segment also represented the best sell‐ ing vehicle class in the sector. Nissan Qashqai led the sector, followed by the Vauxhall Mokka, Nissan Juke and Ford Kuga. Mitsubishi Outlander sales contin‐ ued to grow among fleet buyers, domi‐ nated by the PHEV Plug in Hybrid.

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