International Fleet World August 2016

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

August 2016

Intelligent Mobility Frost and Sullivan’s conference looks to fleet’s future

Fresh start Sylvain Champomier of PSA discusses new vans and new plans

Driven Profile

Remarketing

Getting under the skin of Lexus in fleet

Why online auctions are on the rise

Volkswagen Tiguan Mercedes GLE Coupe Volvo S90 / V90 Audi Q2

internationalfleetworld.com

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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

August 2016

contents

Intelligent Mobility Frost and Sullivan’s conference looks to fleet’s future

Fresh start Sylvain Champomier of PSA discusses new vans and new plans

Driven Profile

Remarketing

Getting under the skin of Lexus in fleet

Why online auctions are on the rise

Volkswagen Tiguan Mercedes-Benz GLE Volvo S90 / V90 Audi Q2

internationalfleetworld.com

Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk

16 The end of the physical auction?

22 F&S’s Intelligent Mobility Conference.

30 Lexus’ fleet proposition profiled.

34 On the road in the new Audi Q2.

Publisher Steve Moody steve@fleetworldgroup.co.uk 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 Sales Director Anne Dopson anne@fleetworldgroup.co.uk

04 Fleet Review John Kendall braces himself for deliveries by drone…

Sales Manager Harry Whyte harry@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 Designer Samantha King sam@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk

06 Inside Knowledge Ian Fletcher of IHS Automotive discusses Brexit.

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

16 Remarketing Are physical auctions becoming obsolete? Steve Banner investigates.

20 Autonomous vehicles How Volvo’s Drive Me project could improve efficiencies.

22 Management Key insights from Frost and Sullivan’s Mobility Conference 2016.

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

24 Interview Sylvain Champomier on PSA’s newest commercial vehicle offerings.

26 Fleet Focus The impact of immigration on New Zealand’s vehicle market.

30 Profile Lexus’ dominance in the premium hybrid market and key launches.

36 Launch Report Audi Q2 / Volvo V90/S90 / Mercedes-Benz GLE / VW Tiguan.

STAG Publications

®

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

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

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fleet review

This month, editor John Kendall highlights some of the findings from Frost and Sullivan’s Intelligent Mobility Forum.

Car ownership to start falling?

Frost and Sullivan’s Intelligent Mobility Forum provides some useful insights to the way that developments are taking place.

Several things caught my attention at the event in late June. First is the expected growth in car sharing and ride sharing and generally how this is expected to transform the way people move around, particularly as the trend to urbanisation of populations around the world continues. The suggestion that this could remove 7 million cars from the world’s roads a year by 2025, is a revolutionary shift and one that could improve air quality in cities and have a big impact on congestion. That would be on top of another projected 8.7 million fewer vehicles, as those living in urban areas give up ownership to use ride-sharing services such as Uber. Are we now living through a global peak in car ownership?

Deliveries from the sky Hardly a week goes by without a few stories about autonomous vehicles either and this also came to attention at the Intelligent Mobility Forum. A few years ago, online shopping deliveries by drone sounded like fantasy, but it seems to be gradually moving towards reality, when the legislators and insurers can decide which will be the publicly usable air space – probably some-

Intelligent Mobility Forum Looking to the future... page 22.

04 / internationalfleetworld.com

where in the 200m to 400m region to avoid interference with commercial air traffic. The skies could be buzzing with small delivery drones, bringing you that Amazon order.

Frost and Sullivan highlighted some 1,213 communication satellites that are due to be launched over the next few years, which should mean that GPS for those on the ground will become more accurate and reliable and we will be less dependent on the existing US and Russian satellite networks.

No licence needed?

Can you imagine a world where you will no longer need a driving licence? That’s another possibility floated at the Frost and Sullivan conference and if you think I’m talking about somewhere around 20 years away, think again. Julia Steyn, vice president of GM’s new Maven division told the Forum that she has an eight-year old son and she thinks it is a real possibility that he will not need a driving licence. That brings advanced autonomous vehicles to within 10 years from now.

“Licence to print money” Here’s something else to think about. Tony Douglas, head of strategy, marketing and communication at BMW Mobility Services told the Forum that he thought Autonomous Driving, “Will be a licence to print money – if you own a fleet.” So fleet management companies needn’t panic – car ownership may be projected to fall dramatically as urban populations abandon car ownership, but fleets of car sharing and ride sharing vehicles will still need to be owned and managed and so will fleets of autonomous vehicles. As the expression goes here, “Don’t give up the day job.”

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inside knowledge

UK to bear the brunt Initial post-Brexit market expectations from Ian Fletcher, principal analyst, IHS Automotive...

T

he UK is, unsurprisingly, expected to bear the brunt of the impact of its vote to leave the European Union. We currently expect that the market will remain up in 2016. However, we have reduced the gain to just 1% year on year (y/y) to around 3.045 million units, versus the 3.2% y/y gain we previously anticipated. The declines that were already forecast for 2017 and 2018 are now expected to be greater. Registrations of light vehicles are now forecast to fall by 9.1% y/y to 2.758 million, rather than a 3.5% y/y decline. For 2018, registrations are now expected to hit 2.71 million units versus the 2.94 million units for our pre-referendum forecast.

In addition, our Western European forecast will now fall during the next two years despite further gains during 2016. Although light-vehicle registrations will grow by around 5.0% y/y this year to 15.64 million units, this will be lower than the 15.75 million units expected. Furthermore, registrations in 2017 are expected to dip by 1.2% y/y to 15.45 million units, compared with the expected increase to 15.98 million. During 2018, the total is now expected to remain at 15.45 million units rather than the expected 15.95 million.

Globally, we now expect growth to be lower over the next few years. For 2016, light-vehicle registrations are now forecast to be 89.82 million units, an increase of 2.0% y/y, below the 90.02 million units originally forecast. While a further gain of 1.4% y/y to 91.06 million units is anticipated in 2017, this is around 1.25 million units lower than originally anticipated. For 2018, we expect global sales of 93.12 million units, versus the previous forecast of 94.5 million units.

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Outlook and implications These early indications are based upon the initial macro forecasts published by IHS on the impact that the leave vote will have. They are still subject to a great deal of unknown factors further ahead.

Our economic expectations regarding the UK market were first published on 24 June 2016. Factors that are expected to have a direct impact on our short-term forecast include lower GDP, with growth in 2017 estimated at 0.2% instead of the 2.4% previously forecast. In addition, the depreciation of Sterling against other currencies will have a negative impact on imported vehicles. Some OEMs are already considering how to revise pricing of overseas-built vehicles to counter this. A depreciated pound could benefit vehicle producers initially, by making prices more competitive and attractive.

However, as our forecasts show, Western Europe will not escape the impact of the referendum result. IHS believes that the Eurozone's growth outlook has weakened appreciably following the UK's vote. Prior to it, IHS had been relatively upbeat about Eurozone GDP growth prospects, expecting 1.7% growth in 2016, 1.8% in 2017 and 1.6% in 2018. This forecast has now been cut to 1.4% in 2016, 0.9% in 2017 and 1.4% in 2018. In particular, business and consumer confidence is likely to take a prolonged and appreciable hit from heightened economic and political uncertainties as well as financial market turmoil.

Tighter credit conditions and weaker asset markets could also affect businesses and consumers. Meanwhile, Eurozone exports to the UK – an important destination for many Eurozone countries – are likely to suffer from sharply reduced UK growth and a strengthening of the Euro against the pound. However, the European Central Bank (ECB) has indicated that it is prepared to take necessary action to ensure price and financial stability.

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manufacturer news

ALD Automotive and Wheels partner with AutoCorp in Argentina LD Automotive and its North American partner A Wheels Inc have teamed up with AutoCorp, an Argentinean car leasing company, to offer a fleet management solution for the local market.

In a statement, ALD said it would become the first international fleet management company to have a presence in the country.

Stéphane Renie, sales & marketing director at ALD International, said: “We are eager to provide a complete solution to our customers in South Amer‐ ica, and while we already have a presence in Brazil, Chile and Peru, Argentina still was a ‘missing link’ in our regional offering.”

Alphabet adds chief commercial officer

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lphabet International has named Richard Schooling as its chief commercial officer.

The new position was created as part of a reorganisation of the management team following CEO Ed Frederiks’ retirement announcement in December 2015.

Under the new role, Schooling, previously chief executive of Alphabet (GB) Limited, is now responsible for the strategic coordination and development of all 18 Alphabet markets.

Schooling commented: “Benefiting from many years in direct contact with our clients, I know their chal‐ lenges and requirements first‐hand. Meeting their needs is and remains my top priority.”

European Commission urged to look at IFRS 16 impact on SMEs TCOPlus runs special anniversary offer COPlus is marking its first anniversary within the TÜV SÜD Auto Service Fleet Business Unit by T running a special birthday offer for international fleet decision‐makers.

The Fleet Business Unit was created one year ago with the acquisition of fleet tool development specialist TCOPlus and its sister company, international fleet consultancy FleetVision. Both businesses are based in Belgium and now operate within the unit alongside Fleet Logistics, TÜV SÜD’s European fleet management provider.

To commemorate the anniversary, TCOPlus is making its new generation GreenCube 2020 available free of charge for 12 months to any fleet operator that signs up to take the global fleet reporting solution, FleetCube, before the end of September this year.

New Fleetio mobile app

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leet management software developer Fleetio has launched a new mobile app that enables users to instantly update information and access fleet data anytime, anywhere.

Dubbed Fleetio Go, the app has been designed to provide an easy way to perform vehicle inspections, report issues and log fuel from a smartphone or tablet, and dynamically syncs with Fleetio’s current web‐based platform.

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easeurope has urged the European Commission to consider the effect of the new international lease accounting standard, IFRS 16, on SMEs as part of its assessment.

The review will consider the effects of IFRS 16 on both lessees and lessors in Europe, including whether IFRS 16 is overly complex and the potential effects on competitiveness of European companies.

Mark Venus, chairman of Leaseurope’s Accounting Committee, said: “It is important that the full effects of IFRS 16 are considered before the new standard is accepted for use in Europe. The immediate impacts may be limited to mostly the largest companies who will usually have the accounting resources and expertise to cope, but it is still vital to establish from the outset whether this new way of accounting for leases is likely to be appropriate for SMEs.”

DriveNow launches in Brussels riveNow has expanded its car sharing business to DA total Brussels, marking its 10th European city. of 300 vehicles are available in the Belgian capi‐ tal occupying a 55km2 area. In the first phase of launch, the cars will consist of the BMW 1 Series, the BMW 2 Series Active Tourer, plus the MINI Clubman or Hatch.

The city follows the usual DriveNow ‘free‐floating’ car‐ sharing concept, whereby the cars can be rented and returned to any legal parking space in the business area.

For the latest news, visit internationalfleetworld.com

ABAX enters China’s vehicle telematics market

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ehicle tracking and fleet management technology specialist ABAX has taken its first major step outside of the European market by opening an office in China.

Based in the city of Nantong in Jiangsu province, ABAX China will be led by chief executive Anfinn Hammer Feng, who has a thorough and first‐hand knowledge of the Chinese market.

ABAX Group chief executive Petter Quinsgard said: "In spite of cultural and structural differences between Europe and China, we see the same challenges that owners of company vehicles are facing in terms of savings, mileage claims and documentation to the authorities.”

From August, ABAX will launch its electronic Triplog solution alongside its fleet management and GPS tracking solutions. New products will then be launched later in 2016.

PSA Group and TomTom offer fleet management

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SA Group and TomTom Telematics are teaming up to offer the TomTom WEBFLEET fleet management solution for all connected Peugeot, Citroën, and DS fleet vehicles.

The service goes live from the next quarter and will be offered in France, Spain, Belgium and the Netherlands.

Trakm8 to supply devices to Allianz

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rakm8 has been awarded two initial contracts by global insurance and asset management company, Allianz.

The first contract will see the UK‐based big data, telematics and fleet management specialist supply telematics devices to Allianz's Global Telem‐ atics business. A launch order of 5,000 devices has already been placed for Allianz Insurance telematics in China.

The second contract win covers the development of specific software to meet the requirements of Allianz.

Athlon enters partnership with AlertDriving

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thlon Car Lease International has partnered with global driver risk management solutions provider AlertDriving.

Under its designation as an AlertDriving ADvantage partner, Athlon will be able to help customers consolidate their vehicle safety and driver training operations with AlertDriving’s FleetDefense driver risk management platform, which can identify high‐risk drivers in more than 70 countries worldwide.

Alexander Prinssen, director consulting & mobility solutions at Athlon Inter‐ national, said: “Innovation through building strategic partnerships perfectly fits our strategy. The driver risk management proposition enables our customers to improve driver safety and reduces their fleet operating cost.”

fleetiinquotes a few soundbites from a month in fleet

The current lack of certainty about tariffs places a question mark over the future of a significant number of UK plants and jobs. A lack of overseas investment could have a long term impact on the competitiveness of the UK industry.

“

”

Tim Lawrence, head of manufacturing at PA Consulting Group, on the potential impacts of Brexit.

“

The automotive industry is undergoing seismic changes that require new levels of data insight if it is to exploit new opportunities. The new global code will unlock the ability to share vehicle data across international boundaries.

”

Ian Rendle managing director of cap hpi, on the launch of organisation’s new global analysis code.

“

With Tristar, we will be able to take our service to the next level and into new markets around the world. For the customers of both companies this means a better and more efficient global service.

”

Andy Boland, CEO of Addison Lee on the acquisition of Tristar Worldwide.

internationalfleetworld.com / 09

E-fficiency Class.

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environmental news

Nearly 40% of Norway’s new cars are hybrids and EVs

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ybrid, electric and hydrogen fuel cell vehicles accounted for almost 40% of Norway’s new car market during the first six months of 2016, with volumes up a third on the same period of 2015.

The Norwegian passenger car market grew 4.5% year on year, according to figures from the country’s road traffic information council, the Opplysningsrådet for Veitrafikken (OFV). A total of 77,749 new cars were registered in the first six months, of which 30,107 (38.7%) featured some form of electric drive, compared to 22,479 (30.2%) a year ago.

The large majority of the alternative drivetrain vehi‐ cles registered in Norway so far this year have been plug‐in hybrid or electric models. Almost a third (28.3%) of new cars can be driven using mains‐ supplied electricity, with that volume split almost equally between plug‐in hybrids and fully electric cars.

Last year, 80% of plug‐ins registered in Norway were

fully electric, and the sector accounted for 22.8% of the total new car market.

However, there’s been a shift in demand. Pure elec‐ tric vehicles – including eight hydrogen fuel cell vehi‐ cles – accounted for 15.1% of the market (11,752 vehicles) in the first half of 2016. That’s a reduction of 1,916 units compared to 2015, when 18.4% of new registrations were fully electric models.

Most of the growth came from plug‐in hybrids. A total of 10,279 PHEVs were registered during the first half of the year, compared to 3,827 in 2015. That’s a 168.6% increase, and PHEV sales stand to outstrip pure electric models during the second half of 2016, based on current growth figures.

Sales of conventional hybrids – models which can’t be plugged in – numbered 8,076 units, up 62.0% on the 4,984 registered during the same period of 2015, according to the OFV’s data.

Volkswagen Group plans 30 EVs by 2025

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he Volkswagen Group is planning 30 fully electric cars over the next 10 years, which it predicts will account for up to a quarter of its sales by 2025.

Announced as part of the ‘Together – Strategy 2025’ initiative, proposed by the Board of Management and now approved by the Supervisory Board, the Group will invest ‘double digit billions’ of Euros in sustainable mobility solu‐ tions in the meantime.

It’s said to be the biggest shift of focus in the Group’s history, with investment covering autonomous vehicle technologies, flexible transport such as ride sharing, and will make battery technology a core competency.

Former chairman, Martin Winterkorn, had announced a

12 / internationalfleetworld.com

portfolio of 20 plug‐ins by the end of the decade, though this had included plug‐in hybrids. Although Audi, Porsche and Volkswagen have plug‐in hybrid models, the Group currently only has fully electric versions of the Up and Golf. However, Audi is to launch an electric SUV in 2018, and Porsche has greenlighted an EV too.

Speaking at the presentation in Wolfsburg, CEO Matthias Müller said: “We will be a technology leader and role model when it comes to environment, safety and integrity.

The Group will achieve competitive profitability, and so remain both an attractive investment and an excellent, reliable and secure employer. In short, Volkswagen will be an enterprise we can all be proud of.”

For the latest EV news, visit evfleetworld.com

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ignificant increases in uptake of electric vehicles are essential to meeting future emissions standards, a new report finds.

The analysis by the World Energy Council shows EVs will need to account for 16% of the global new car market by 2020 to meet trans‐ port emission targets, compared to 1% today.

With a collective annual demand of over 40 million passenger vehi‐ cles, three of the largest car markets in the world, the EU, US and China, have all set fuel economy improvement targets of approxi‐ mately 30% for cars from 2014‐2020 (as measured in NEDC gCO 2/km), which are expected to exceed forecasted new internal combustion engine (ICE) powered car capabilities.

To meet these standards, EV sales in Europe will need to grow by 1.4 million, 10% of the estimated 2020 projected passenger sales by 2020. In the US, the figure stands at 0.9 million (11%) and in China roughly 5.3 million, 22% of the projected passenger car sales, according to the research published by the Council in collaboration with Accenture Strategy.

ITM Power supplies hydrogen refuelling station for French fleets

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TM Power has won a €1.5m contract to supply an integrated hydrogen refuelling station, which can produce the fuel on‐site, to Hydrogène de France (HDF), for deployment in France.

The station is being deployed by hydrogen energy operator HDF to serve local captive fleets with fuel cell powered vehicles and will be commissioned mid‐next year.

The electrolyser HRS will be partly funded by the European Union as part of the H2ME2, EU FCH JU funded project. As part of this project, HDF will be able to test the operation of the electrolyser in a live market to provide grid balancing services.

Dr Graham Cooley, CEO of ITM Power, commented: “We are delighted to be working with HDF on this important sale for ITM Power. France is becoming a leader in the development of hydrogen mobility infrastructure and we look forward to further sales.”

EV

Source: Go Ultra Low

in brief Honda hybrids soon won't require rare-earth metals Honda has partnered with Japanese company Daido Steel to develop a world‐ irst hybrid motor which uses no heavy rare earth metals in its manufacture.

Used to improve heat resistance, heavy rare earth metals are subject to short‐ ages and luctuating prices. The new technology will be available in a produc‐ tion car by the end of the year.

Second life for BMW batteries BMW i has revealed a domestic energy storage solution, which can utilise batteries from end‐of‐life i3 electric vehi‐ cles. The system is designed to work with charging points and solar panels, providing an off‐grid energy supply which can enable drivers to avoid peak costs and power outages, as well as extending the useful life of battery cells.

Hyundai extends U.S. fuel cell pilot Hyundai and the U.S. Department of Energy (DOE) have extended their part‐ nership, with a leet of hydrogen Tucson Fuel Cell vehicles set to be rolled out in Washington D.C. next year, using a new refuelling station. This second phase extends the project beyond its original Southern California focus.

Renault launches ‘Airbnb for EVs’ Renault has launched a charging scheme based on the Airbnb concept, enabling Swedish drivers to top up at someone else’s home. The Elbnb programme offers an online marketplace enabling users to ind and rent charging points, and is aimed at illing gaps in the public network.

The time before the UK’s new car market is over 50% plug-in vehicles, research suggests.

in numbers

76%

UK drivers who believe long distance trips are impossible in an EV.

11 years

Source: LeasePlan UK

EV sales uplift needed to meet 2020 C02 targets

internationalfleetworld.com / 13

business news

in brief Connected car project

Real-world fuel economy figures published for 30 PSA models he PSA Group has published the results of real‐world fuel economy TThetests for 30 core Peugeot, Citroën and DS models. results come from a test procedure established with two non‐ governmental organisations, Transport & Environment (T&E) and France Nature Environment (FNE) and are audited by Bureau Veritas.

The measurements show differences to the official NEDC combined figures and are comparable to those made by PSA customers in inde‐ pendent customer surveys.

PSA will publish figures for another 20 models by the end of the year and introduce a simulator allowing customers to reduce their fuel consumption depending on driving conditions. Next year, PSA will add in measurements to cover nitrogen oxides (NOx) in customer driving conditions.

Ford unveils production version of Kuga Vignale ord has revealed the production version of its Kuga Vignale, which F will go on sale alongside the existing Mondeo model.

Along with the Edge SUV and S‐Max MPV, the Kuga is one of three Vignale models to be introduced this year and will bring exclusive specification and hand‐finished craftsmanship, along with a choice of powerful and fuel‐efficient engines.

Vignale models are also focused on offering a personalised purchase experience and are available to order at FordStores across Europe incor‐ porating dedicated Vignale Lounges.

“Our Ford Kuga Vignale speaks directly to the growing trend for luxury SUVs and represents the very best of Ford with premium design, materi‐ als and craftsmanship,” said Roelant de Waard, vice president, marketing, sales & service, Ford of Europe.

Citroën reveals new C3

itroën has taken the wraps off its new five‐door C3 supermini, which goes on sale from the end of this year. Styling draws on the C4 Cactus C with the inclusion of its Airbump panels and also allows for personalisation.

Engine line‐up will offer a choice of three PureTech three‐cylinder petrol engines, with manual transmission: PureTech 68, 82 and 110 (Stop/Start).

Two manual diesel powertrains will also be available: BlueHDi 75 (Stop/Start) and 100 (Stop/Start).

Onboard technologies include the debut of the ConnectedCAM on‐board HD camera and the Citroën Connect Box with SOS Pack.

14 / internationalfleetworld.com

A number of Europe’s leading trade associations for the telecommunica‐ tions and the automotive sectors are to partner on the launch of a large‐ scale, pre‐deployment project to test connected and automated driving at an EU level. The project is focused on strengthening Europe’s leadership in connected and automated driving.

PSA invests in French start-up PSA Group has made an undisclosed investment in TravelerCar, a French start‐up offering new parking and car rental solutions. The investment forms part of the carmaker’s ‘Push to Pass’ strategic plan.

Volvo showcases S90 and V90 The Volvo Cars global fleet sales team has launched its new S90 and V90 to global fleet decision makers from 18 countries. Fleets from as far afield as China and Canada were the first to drive the cars at the launch event, which coincided with the global fleet sales team’s 30th anniversary.

BMW alliance to develop self-driving cars BMW has teamed up with chip maker Intel and Israel‐based tech company Mobileye to develop a fully self‐driving car.

The fully autonomous BMW iNEXT model will be developed by 2021 and will be made available to other carmakers as well as for ride sharing.

NIRO > THE HYBRID CROSSOVER Launching in Q3 2016, the all-new Niro combines Kia’s standout crossover styling with a state-of-the-art hybrid drivetrain emitting less than 89g/km CO2.

Crossover Chic A newcomer with a familiar sense of style, the Niro’s aerodynamic and athletic form is unmistakably part of Kia’s popular crossover family. Developed by our acclaimed design teams in California and South Korea, it brings cool, modern styling and broad appeal to an increasingly popular sector of the European market with company car drivers at its core. And, as with every Kia sold in Europe, it features our industry pioneering seven-year, 150,000km warranty.

Despite its compact proportions, the all-new platform – designed exclusively for hybrid and electric models – underpins an incredibly safe urban crossover. Advanced assistance systems not only offer peace of mind for drivers and operators, but help keep insurance costs down, while the strong bodyshell and extensive passive safety systems mean occupants are well protected.

Cutting-Edge Technology The Niro arrives just in time to meet the rapidly growing demand for alternatively-fuelled vehicles, which has resulted in sales more than doubling in Europe. Launching into a core sector, Niro is a vital part of Kia’s 2020 target to improve fleetaverage efficiency by 25% compared to 2014 levels.

Its hybrid drivetrain comprises a 1.6-litre direct-injection petrol engine and 32kW electric motor, each powering the wheels through a six-speed double-clutch transmission.

There’s no range anxiety, and no need to plug in – the compact, and highly-efficient, lithium-ion polymer battery recaptures energy through the motor while decelerating, which can be used to drive the wheels.

In turn, it makes great business sense. Not only does the Niro offer the convenience and comfort of clutchless driving, but it offers reduced maintenance costs, low fuel consumption and tax-conscious CO2 emissions of less than 89g/km.

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

FEATURE Remarketing

Auction sites or websites?

Is online fleet disposal technology rendering physical auctions obsolete? Not quite yet. if US investment decisions by Manheim are anything to go by, reports Steve Banner.

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ast September the global remar‐ keting giant announced that it was installing a total of 11 double‐block auction lanes at Manheim Detroit, Manheim Statesville in North Carolina and a number of other loca‐ tions. Such lanes double the number of vehicles that can be run down a single lane during a sale.

When it made the announcement, the company had just completed a makeover of its Manheim Fort

16 / internationalfleetworld.com

Lauderdale auction centre in Florida and was proposing to add 28 mobile auctions to its portfolio as a conse‐ quence of the success of the existing 29. “They serve smaller markets by reducing transport expenses and expanding the buying base,” says a company spokesman.

Yet despite all this activity it would be wrong to pretend that online solutions are not gaining ground; and gaining ground rapidly.

Dealer top picks Still in the USA, BMW Financial Services is now making it easier for all dealers to source BMWs and MINIs before they cross the auction block.

Powered by RMS Automotive’s web‐ based vehicle portfolio management system, BMWGroupDirect.com can now be accessed by independent dealers and non‐BMW franchised dealers.

Previously open to BMW franchisees only, the site now gives any buyer with

Manheim Manheim pioneered online sales channels in the Thai market back in 2008.

a valid AuctionACCESS account round‐ the‐clock entry to BMW’s national inventory of off‐lease vehicles.

“With more off‐lease inventory enter‐ ing the market we needed to take our upstream remarketing programme to the next level,” says BMW Financial Services vice‐president of sales and marketing, Nina Englert.

Like Manheim, RMS Automotive is owned by Cox Automotive. In April Cox further expanded its global footprint by acquiring a majority shareholding in Brazilian vehicle valuations business Molicar while last November saw it invest in Indian multi‐site used car oper‐ ation Mahindra First Choice Wheels.

Alphabet spells it out with BCA In Europe, Alphabet International has developed a new online remarketing platform to dispose of its second‐hand ex‐contract vehicles under the Alphabet Used Cars banner. Developed in conjunction with remarketer BCA, one of its key advantages is that once a vehi‐ cle's details have been uploaded to it then all subsequent stages in the disposal process are automated.

Once the sale price and details of the buyer have been recorded then both the invoice and the accompanying docu‐ ments are generated automatically.

The different types of bidding possibil‐ ities include ‘Buy Now’, overnight auctions and longer auctions. The system allows buyers likely to be interested in particular makes and models to be iden‐ tified so that Alphabet can notify them when they will be coming up for sale.

Net result? Hopefully satisfied purchasers and better prices for the vendor.

The standardised approach allows, say, an Italian buyer to purchase a car in Belgium although the platform was not designed primarily with cross‐border trading in mind, says Alphabet.

BCA’s European sales director, Peter Dietrich, says that one of the key driv‐ ers in favour of online disposal is its potential to shorten the selling cycle and cut holding costs.

“Time is of the essence and working capital is increasingly important, so there is a strong desire to minimise and streamline the process that takes vehi‐ cles from the end of the lease to being sold and funds going back onto the company's bottom line,” he continues.

"There is a drive to prevent additional expenditure – the, often invisible, hold‐ ing costs – after the lease‐end,” Dietrich adds. “That means reducing storage requirements, avoiding the need for double inspections and keeping trans‐

port costs to the minimum matter more and more.”

Volvo chooses online platform As if to illustrate the variety of different ways in which web‐based technology can be employed, Volvo is deploying online sales specialist Autorola’s Indicata web‐based business intelli‐ gence platform in support of its second‐ hand vehicle operations and aims to use it in a number of countries. Indicata collects, processes and analyses used car market data so that a manufacturer can better understand the position so far as pricing, supply, demand and inventories are concerned.

“All manufacturers will be using this sort of intelligence within the next five years,” predicts Autorola Group chief executive officer, Peter Groftehauge.

In a bid to support fleet managers, Autorola has launched Fleet Monitor, initially in the Netherlands, Belgium and Denmark. Other European markets will follow.

A workflow management tool able to accommodate from 200 to 200,000 vehicles, it starts with the acquisition of the vehicle and finishes with its disposal, and covers all the key stages in between. It interacts with third‐party suppliers such as smart repairers and

internationalfleetworld.com / 17

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FEATURE Remarketing

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vehicle transport companies and can be linked to the fleet operator’s back office.

“It is designed to make de‐fleeting and remarketing more straightforward and in the case of large leasing and rental fleets ensures that no vehicle is lost in any of these processes,” says Groftehauge.

Listing some 300,000 vehicles a year on its platform – “the total is rising by 25% year‐on‐year,” he reports – Autorola is now planted in 18 countries, mostly in Europe but also embracing Australia, Turkey, Mexico and Brazil.

“We’ll be moving into more countries in 2017,” he says.

Vehicles are offered by fleets, leasing companies, dealers and manufacturers, with anywhere from 30% to 95% of the entry sold depending on the vendor and the demand for what is being offered.

“We sell a wide variety of cars up to and including Lamborghinis and McLarens,” he reports.

Perhaps not surprisingly, he takes the view that online disposal will eventu‐ ally replace physical auctions. “Our approach delivers more value to both vendors and buyers and is more cost‐ efficient, so it’s just a question of time,” he comments.

Using Autorola’s platform means that vehicles can be offered to the market immediately rather than having to be transported to an auction centre and stored – possibly for several days – until the next sale takes place, Groftehauge points out. As a consequence vendors can potentially realise the value of their assets more quickly.

Cross-border sales In Europe some of the platform’s selling is cross‐border, with buyers in Germany for example able to bid for cars in Denmark and vice versa. “In certain European countries cross‐border sales account for 50% of the volume,” he says.

That is one of the advantages of using Autorola if you are a vendor, contends Groftehauge; the way in which it presents what you have to offer to a far wider audi‐ ence than might otherwise be the case.

If you are a purchaser you enjoy greater choice too.

“There has been a shortage of used cars in Spain because so many were exported during the recession,” he says.

The ability to use Autorola to make

18 / internationalfleetworld.com

Online sales “Physical auctions remain a vital part of the remarketing industry in Australia.”

Campbell Jones, CEO of Manheim Australia and New Zealand

purchases in other countries however means that Spanish buyers can obtain the vehicles they need.

“As a consequence a lot are being imported now,” he says.

The key benefit of online rather than physical disposal for vendors he claims is a 5% better performance thanks to a combination of higher prices, faster turnover and lower overheads. “I know of one major European vendor who is saving around €10m a year by switch‐ ing to Autorola,” Groftehauge states.

Businesses such as Manheim – again perhaps not surprisingly – take the view that what is required in many markets is a mixture of a physical and an online remarketing presence with the one complementing the other; although online has clearly established a wide, deep, bridgehead.

“Manheim pioneered online sales channels in the Thai market back in 2008,” says Simon Moran, the company’s Asia Pacific vice‐president.

“Since then we’ve extended our lead through the continued development of online purchasing.”

Mobile sales channels One way in which it has done so is not to assume that everybody who buys online does so from a desktop PC but has instead made it easy for people to make purchases using mobile devices.

“There are no signs of physical auctions diminishing though,” he observes. “In fact growth is still in play and online is very complementary to

this all over the kingdom.”

“Physical auctions remain a vital part of the remarketing industry in Australia,” says Campbell Jones CEO of Manheim Australia and New Zealand (pictured). “However, the growth in online participation is gaining pace.

“Online registrations grew by 55% in the first six months of this year compared with the same period in 2015, driven largely by our launch of a new approach to Simulcast which now allows people to bid and buy online at physical auctions using tablets and smart phones.”

All Manheim’s Australian auctions offer Simulcast.

“We’ve experienced a decline in attendance at physical auctions, but it's only been slight,” he adds. “If anything the appetite for online sales is augment‐ ing the total available audience rather than having a negative impact.

“Some of our manufacturer customers offer online‐only auctions for their dealer networks but we’re not seeing the need for a wider transition to online‐only sales in the fleet and leasing segments.”

“In Europe we’re seeing more in‐lane cars (i.e. those offered at physical auctions) being bought online and some customers selling exclusively online,” says Cox Automotive international busi‐ ness development director, Nuno Castel‐Branco. “All salvage sales are carried out online for example.”

“In South America the market still requires physical auctions,” he adds. “But the number of cars being bought online at such auctions is growing significantly.”

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NEWS from the global fleet community

INSIGHT from experts into the fleet industry

ADVICE best practice for running your fleet

FEATURE Autonomous Vehicles

Can autonomous cars bring us freedom?

Volvo is extending its autonomous Drive Me project to the UK and China.

Chris Wright talks to Volvo’s Anders Eugensson about the project.

F

or the busy executive, salesman or busi‐ nessman autonomous cars will be a life changer – an opportunity to give time back to people.

That’s the view of Anders Eugensson, director of government affairs at Volvo, part of a cross‐functional team responsible for defining the brand’s long‐term safety strat‐ egy. He describes the advance of autonomous drive (AD) as the most exciting time in his 32‐career with the company.

“We can change peoples’ lives,” he said.

“Time spent in congested traffic when they can get on with their work rather than sitting in frustration. It can give them more time to spend with their families. With autonomous drive we can sit back and let the car do the driving while we get connected and stay on top of our work.”

Drive Me Volvo is very much at the forefront of AD tech‐ nology. It’s ‘Drive Me’ project has been running a fleet of 100 vehicles around the busy ring‐road in its home city of Gothenburg in Sweden with selected drivers using the cars autonomously on their daily commute.

Drive Me is now spreading to the UK and China. Erik Coelingh, technical specialist at Volvo said: “The test cars are now able to handle lane following, speed adaption and merging traffic all by themselves. This is an important step towards our aim that the final Drive Me cars will be able to drive the whole test route in highly autonomous mode. The technology, which will be called Autopilot, enables the driver to hand over the driving to the vehicle, which takes care of all driving functions.”

The project involves all the key players: Volvo, the Swedish Transport Administration, the Swedish Transport Agency, Lindholmen Science Park and the City of Gothenburg as well as customers.

20 / internationalfleetworld.com

20/20 Vision AD is an important step towards Volvo’s 20/20 vision, announced in 2008, that no one would be killed or seriously injured in one of its cars by the year 2020. Eugensson said that while the older generation may feel a

little uncomfortable about giving up control, younger people will adapt more easily. “Older people currently find connectivity a distraction, for younger people it’s a necessity,” he added.

This does not mean the fun will go out of driving completely. A fully autonomous

vehicle parc is unlikely to be with us for another 30 years. In the meantime cars will be able to drive themselves on highways or city roads, but out on the country lanes the driver will still be able to take control.

Following on from the Gothenburg experiment, Volvo will start similar trials from next year or early 2018 on major routes into London.

Eugensson said that Volvo is talking to a number of companies who have employees using these routes as their regular commute, to take part in the scheme. Company engineers will also be involved gathering data.

Volvo also plans to launch China’s most advanced autonomous driving experiment on public roads and is in negotiations with interested cities in China to see which is able to provide the necessary permissions, regulations and infrastructure to allow the experiment to go ahead. AD promises to revolutionise China’s heavily congested

roads in four main areas – safety, conges‐ tion, pollution and time saving.

Driver interface To achieve AD, Volvo has developed one of the industry’s most advanced and easy‐ to‐use interfaces to oversee how drivers will transfer control to a car’s autonomous driving mode.

The advent of autonomous driving technology means that the relationship between a driver and a car’s user inter‐ face is of crucial significance. A safe and seamless handover of control is the cornerstone of any new trustworthy AD technology.

Volvo Cars has designed its IntelliSafe Auto Pilot to be simple and intuitive. The autonomous mode is activated and deac‐ tivated with specially designed paddles on the steering wheel.

When entering a route where autonomous driving is available, the car

gives the driver a message that the Auto Pilot is ready. At the same time, lights on the steering‐wheel paddles start flashing.

The driver pulls both paddles simultane‐ ously to activate autonomous mode. The lights on the paddles then change to constant green and Auto Pilot confirms that the driving and the supervision has been delegated to the car.

When autonomous driving is no longer available, the driver is prompted to take over again. A 60‐second countdown is displayed.

Gothenburg trial Volvo’s new IntelliSafe Auto Pilot will be available for the first time on the 100 XC90s it is making available for the Drive Me proj‐ ect in Gothenburg in 2017, the world’s most ambitious AD project.

This is currently ‘level 4’ in autonomous drive‐speak. Relatively straight roads with traffic separated by clearly defined lanes.

The next stage, level 5, is dealing with roundabouts, intersections, cyclists and pedestrians etc, which is when the technol‐ ogy moves into the city.

However, he sees the current growth in car sharing allied to autonomous valet parking, as a “game changer”. He added: “Imagine pulling up outside your house, unloading your groceries and then telling the car to go and park itself.”

As well as freeing up time, driverless cars will be able to ease congestion and speed journey times, said Eugensson.

It will allow ‘platoons’ to travel at greater speed with less separation. “It may allow addi‐ tional lanes within existing roads and even change the shape of the vehicles we drive.”

Interaction challenges The big challenge, he said, is interaction with other road users such as cyclists, pedestrians and even animals. The car will have to anticipate the likelihood of any danger and respond accordingly by perhaps slowing speed or moving to the centre of the road. In the event of any failure, the car will also need to move out of the traffic or a platoon to find a ‘safe harbour’.

Eugensson admitted that different regu‐ lations around the world remain a road block to development but added that the UK’s commitment to being a leader in the development of autonomous drive, having not signed the Vienna Convention which calls for a human to be in control at all times, is very helpful to Volvo’s research. He believes that the UK and the US will see the first take up of driverless vehicles.

internationalfleetworld.com / 21

MANAGEMENT Intelligent Mobility Conference

Car share to trigger reduction in car sales Car share and ride hailing schemes could bring large reductions in car ownership, while also reducing congestion, reports John Kendall.

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ontinued growth in car sharing, particularly in Asia, more car shar‐ ing company mergers, while others will leave the business, the development of deliveries by aircraft drones, more tech‐ nology companies becoming involved in automotive manufacturing and even autonomous Formula 1 racing were all part of the developments that research and consulting company, Frost and Sulli‐ van, expects to see in the coming years.

The company’s Intelligent Mobility Forum, staged in London in June consid‐ ered future business models in connected and automated mobility, with presenta‐ tions from a wide range of speakers.

Developments in mobility were the focus of a number of presentations includ‐ ing those from BMW, GM’s Maven division, Daimler’s Moovel division and Toyota’s new Yuko project. The united theme for all these is car sharing, expected to be a popu‐ lar choice in growing urban areas. Frost and Sullivan’s analysis suggests that 12.5 cars could be removed from the road for every car share vehicle. That could repre‐ sent the removal of 7 million cars from the road per year by 2025. Calculations from Frost and Sullivan suggest that could result in a reduction of 107 billion km plus reductions in emissions from both manu‐ facturing and driving those vehicles, based on 46 million car share members by then, using 570,000 vehicles.

22 / internationalfleetworld.com

This could be in addition to a projected reduction of 8.7 million vehicles by 2020 as a result of car drivers giving up owner‐ ship in urban areas to use ride‐hailing services such as Uber.

Mobility developments BMW Mobility Services recently launched Reach Now in the US, starting with 370 cars in Seattle. Reach Now is effectively a North American version of Drive Now, BMW’s premium car sharing scheme in Europe. Reach Now attracted 13,000 customers in the irst four days, according to Tony Douglas, head of strat‐ egy, marketing and communication at BMW Mobility Services.

Reach Now will offer new services beyond those traditionally associated with car sharing. This includes a vehicle deliv‐ ery service, vehicles available for longer‐ term use, car sharing for closed user groups, initial registration via smartphone, a chauffeur service and the opportunity to rent out your own car through the service.

Drive Now, a joint venture between BMW and Sixt is available in selected cities in Austria, Belgium, Denmark, Germany, Sweden and the UK, with Brussels the latest city to offer the service. In Copen‐ hagen, Arriva is BMW’s partner, operating a leet of 400 electric‐only i3s, currently the biggest Drive Now leet. In total, there are over 800 i3s on the Drive Now leet and 20% of the total leet is electric.

BMW launched its Park Now service in March, in Austria and Germany in co‐ operation with Parkmobile. The service provides on and off‐street parking and BMW says it will be integrated in cars from November.

“The car no longer means freedom,” Julia Steyn, GM vice president of Mobility and Maven told the conference. GM launched Maven in the US in January and the service provides car sharing in Ann Arbor, Boston, Chicago and Washington. The smartphone is key, providing booking and entry to the vehicles. Among the functions available are starting, cooling and heating the vehicle remotely. On Star features in the cars used.

Insurance and fuel is integrated in the pric‐ ing, as it is with BMW’s Drive Now. GM already had a car sharing service in New York – Let’s Drive NYC, which has been incorporated in Maven in partner‐ ship with Stonehenge Partners. This provides on‐demand access to vehicles for users and preferred parking options.

Smartphone integration

“There are around 7bn phones and 2.5bn smartphones on Earth, more than there are cars”, observed Dr Bernd Schmaul, CMO of Daimler’s Moovel divi‐ sion. Moovel is effectively a smartphone app that provides access to a range of mobility services including Daimler’s car2go car sharing scheme as well as a range of ride‐hailing and sharing options including mytaxi, Flinkster and in Germany, rail services through Deutsche Bahn (DB). Schmaul describes Moovel as a “Swiss Army Knife, with digital ticket‐ ing and connecting other apps to bring it all together.”

Toyota launched its Yuko scheme in Dublin, Ireland in June. Yuko, translated as “let’s go”, is being launched in co‐opera‐ tion with Co‐Wheels, a small UK‐based company with extensive ride‐sharing

experience. The scheme is being run with a private pay‐as‐you‐go scheme as well as a corporate car‐sharing model.

Toyota offers its Yaris, Auris and Prius hybrid models with prices starting from €8 per hour or €60 per day for a Yaris.

The scheme provides 50km of free fuel, free on‐street parking in any public park‐ ing space, satellite navigation, a rear view camera and connectivity in every vehicle as well as free insurance. There is also a €50 sign‐up fee and €6 per month subscription. Members can book in advance or on‐the‐spot and must return the car to the place it was collected from.

Three multi‐national corporate part‐ ners, with headquarters in Dublin are planned for the Dublin scheme as well as two 5‐star hotels. Cars will be acti‐ vated using a card, supplied when customers sign up.

As Mark Adams, vice president, New Mobility at Toyota Motor Europe told the conference, Toyota plans to roll out the next location in Italy, once the scheme in Ireland has been established. Adams says that Italy was chosen because it was a mature car‐share market, with an estab‐ lished permit process. Despite this, Toyota has found that the process has involved political red tape, cultural chal‐ lenges, complex expectations and extended time frames.

Adams described car‐share insurance as a “nightmare”, and told the conference that a simple model is needed.

Congestion reduction Congestion and ageing vehicles pose big air quality challenges around the world and International Transport Forum (ITF) secretary‐general José Viegas told the conference about a research project and planned trial for a system designed to reduce both. The challenge is to persuade people to leave their cars at home in urban areas and use an alternative form of transport, based on transport data gathered for the project.

The results produced some surprising indings. The study considered using three modes of transport: shared taxis, taxi buses and a metro system, removing traditional buses. The combination of taxis and taxi‐buses would be designed to replace private cars and buses city travel. The taxis would have a maximum capacity of six, offering a door‐to‐door service with simi‐ lar journey times to a car. The taxi‐buses would offer a street corner to street corner service offering users a maximum walk of 400m, using vehicles with eight to 16 places. There would be no need for transfers and no standing places. In both cases, the operation would be accessed via smartphone app and price would be no higher than today.

Research shows that with an average of two aboard the taxis (2.6 people in peak traf ic) and between ive and 14.6 aboard the taxi‐buses in peak traf ic, daily vehicle distances could be reduced to 77% and 63% of the current levels in peak hours, with CO2 emissions reduced to 66%. This freed up around 95% of parking spaces and removed congestion. It also made access to work far easier. Without subsidy, the prices for users would be around 30% of current prices in Lisbon. The key is to use a single dispatch centre but with a number of operators of the taxis and taxi‐buses. In addition to Lisbon, tests are now under way in Auckland, Helsinki and Dublin.

internationalfleetworld.com / 23

INTERVIEW Sylvain Champomier, PSA

New van, new options and new markets The latest light CV from Citroën and Peugeot offers an expanded range – expect hybrid models too, says John Kendall.

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itroën, Peugeot and Toyota recently launched the replacement for the Citroën Jumpy/Dispatch, Peugeot Expert and Toyota Proace, built in a joint venture at the Sevel Nord plant near Valenciennes in northern France.

The result is a new product in a range of sizes and body styles, based on the PSA EMP2 platform, launched in 2013 and used for a range of Citroën, Peugeot and DS car models. The departure from the previous model, based on the original version launched in 1993, opens up a range of possibili‐ ties for the new vehicle.

The outgoing model featured both passenger and LCV variants, but there are now more varia‐ tions than before, the result of dropping the high roof models that featured in the previous range; “We prefer to switch to three different lengths to add the Compact version, because it makes more sense,” says Sylvain Champomier, international K0 product manager for PSA – K0 is the product code for the new vehicle. “It should attract more customers than the high‐roof version.”

New variants The platform cab variant is being retained. As Champomier explains, this is because it was popu‐ lar for refrigerated conversions, but there are more models than before too. “Now we have a large range of crew cabs. We are ready for customer crew cab versions because sales are increasing, so now we will have two different kinds of offer. We have stan‐ dard crew cabs with a fixed partition wall, with different grades. We have a high grade, which really looks like a passenger car when you are sitting at the back. We also have a folding partition wall, so you can mix. If you need to have six people in the

24 / internationalflfeetworld.com

vehicle, you have a bench seat, but if you need more cargo space, you can fold it away and you have up to 5.5m3 of volume. It’s made in the plant and we are also expanding the passenger range.

“Today we have now added all the range of the Citroën Spacetourer and Peugeot Traveller, for shuttle customers and families, as we have both customers, especially for fleets of shuttles, cabs and so on. It will be good to attract new customers that we couldn’t address with the previous range.”

Models will offer up to nine seats.

Three different body lengths open up new opportunities for the range. “The starting point was to come back into the core market,” says Champomier, “All the competitors are between 4.9 and 5.0m in length for the standard versions and they have a long version – above 5.3m. We wanted to have two versions really in line with these two core markets. This was the starting point. We have the N (standard) and the XL (extra long) versions and we added the Compact because we think more and more customers are only using their vehicles in city centres with many traffic jams, where it’s very difficult to park.

New Peugeot Expert variant from PSA

Compact for urban use “With our Compact version we have 5m3 body volume with 1.4 tonnes of payload and 2.5‐tonnes of towing capacity, but with 35cm less length than what you find on the market today. So it’s easier to park.” The height is limited to 1.9m. Champomier says that the medium and compact length models will all fit in underground car parks. “We think that with the increase of e‐ commerce we really have the opportunity to attract the people who don’t have a middle sized van, where a small van is too small – it doesn’t have the payload they want and they don’t want a big van, so we think we have a key point with the compact version.”

PSA’s core business is in Western Europe and it is unlikely that the company will seek new markets for the new van in Europe. “But we will have offers which are better adapted to the needs of the different countries. Cabs for example for the UK and some other countries. We have a partition wall which is thermally insulated and for some countries it is important to have this,” says Champomier.

New markets?

“We have ambitions to expand our international cover‐ age of the markets. So we are starting with the same market coverage as the previous model, but we are planning to improve our position in the Russian market especially, where we see that there is an increase in demand for this kind of van and passenger version. We would also like to increase our presence in South America. We are selling some Dispatch/Jumpy and Expert in South America, but we really want to strengthen our position there.” Champomier would not rule out other markets in future either.

The previous models were available in around 200 body styles, but with the new model this will increase to around 600 options.

Not surprisingly total cost of ownership has been a focus with the new model. “We know that most of the fleets are focussed on TCO,” says Champomier. To reduce it, the new vehicle is designed to use less fuel.

“We have also reduced the cost of repairing the vehicle and we have also improved quality, so that after three years of use, quality is at the best ever. That’s to improve our residual values and to be at the best ever for TCO.” There are no electric variants of the vehicle from launch, but that could change, “We are now thinking of having an electric version,” explains Champomier, “But at the moment we don’t have all the information concerning the restrictions in Europe and overseas, so we see different scenarios around the possibilities of a range extender, PHEV or EV. We are waiting for more information to select the best solution. Today is too early to go for one solution then after one year to learn that it was not the right decision. We prefer to take our time and to have all the data to hand to make the best choice.”

The Dispatch/Jumpy and Expert offer a range of driver assistance systems including an option for hands free side sliding door opening, cruise control setting from the speed sign recognition system and a range of telematics options.

internationalfleetworld.com / 25

FLEET FOCUS New Zealand

PICKUPS: A runaway success

Immigration and a growing economy are fuelling the expanding vehicle market in New Zealand, as John Kendall reports.

26 / internationalfleetworld.com

N

ew Zealand capital Wellington has the distinction of being the southern‐most capital city in the world, located near the southern tip of the North Island on Cook Strait, which separates the two major islands of the country, the North and South Islands. Wellington might be the capital, but the largest city is Auckland in the northern region of the North Island with around 1,344,000 inhabi‐ tants, compared with 383,000 for Wellington, according to the CIA World Factbook. Christchurch in the South Island is the third largest city with a population of around 380,000.

Overall, the population of the country is around 4.4 million.

New Zealand is also one of the more remote countries in the world, situated in the southern Pacific Ocean separated from Australia by the Tasman Sea. The Eastern Australian coastline is around 2,000km from New Zealand while its closest northern neighbours are New Caledonia, Fiji and Samoa. Cook Strait, which separates the North and South Island, is around 23km wide at its narrowest point and is considered to be one of the most dangerous and unpre‐ dictable stretches of water in the world.

The country is part of the British Commonwealth and still looks to the Queen of the United Kingdom as its head of state, represented by a Governor General, appointed by the British monarch. The Governor General in turn appoints the prime minister, usually the leader of the largest political party. New Zealand secured independence from the UK in 1907.

The population of New Zealand is highly urbanised, with around 86% living in towns and cities according to the CIA. The country has a strong reputation for agriculture, which is responsible for a large part of the country’s exported goods.

Despite the urbanised nature of the population, the majority of the land is used for farming, which is not reflected in the country’s GDP. Agriculture accounts for around 4% of GDP, according to the CIA, while industry accounts for around 19% and the service sector around 74%.

The New Zealand economy seems to have made a swift recovery from the global financial crisis in 2008, pulling out of recession in 2009, according to the CIA. The economy grew at a rate of 2%‐3% between 2011 and 2015.

VEHICLE SALES BREAK RECORDS Not surprisingly, vehicle sales have benefitted from this, with car sales growing year‐on‐year from 2010 onwards. In 2015, total New Zealand new car registrations reached 95,097. For the first half‐year in 2016, registrations reached 47,759. 2016 is already setting records, according to David Crawford, CEO of the New Zealand Motor Industry Associa‐ tion (MIA), “The 2016 new vehicle market continues to perform beyond expectations with sales in June up 5.1% on June 2015 and delivering a steady 5.3% growth for the year to date. New registrations of 13,699 vehicles is the strongest month of June since 1982 and the second highest month of any ever on record. Year to date there have been 69,057 new vehicles registered in New Zealand compared to 65,653 this time last year, an increase of 3,404 vehicles.”

According to LeasePlan, “Key drivers of new vehicle regis‐ trations are record levels of net immigration, a healthy trade sector and strong business confidence. This has also been fuelled by the aftermath of the financial crisis, which had previously caused delays in new vehicle purchases.”

The MIA tends to list total vehicle sales and also separates

Top 10 Passenger Car Registration brands H1 2016 Manufacturer

Volume

Share %

Toyota

6,968

15

Mazda

4,572

10

Holden (GM)

4,323

9

Ford

3,844

8

Hyundai

3,760

8

Mitsubishi

2,836

6

Suzuki

2,657

6

Nissan

2,574

5

Kia

2,479

5

Honda

1,868

4

Source: New Zealand Motor Industry Association

cars and commercial vehicles. Crawford gives further details of the data, “There were 9,186 passenger vehicle registra‐ tions and 4,513 commercial vehicle registrations, which were once again the highest month of June on record for commercial vehicle registrations and only the third time more than 4,000 commercial vehicles were sold in a month.

The previous two times were also in June off the back of field days (4,002 registrations in 2014 and 4,009 in 2015).”

‘UTES’ DOMINATE THE MARKET New Zealand has a relatively high proportion of unpaved roads and like Australia and the United States, this means there is strong demand for SUVs and pickup trucks, usually referred to as utility vehicles or ‘utes’. Looking at the MIA data for June sales, the top three best selling car models were all SUVs – The Toyota Highlander, followed by the Toyota RAV4, then the Kia Sportage. LeasePlan tells us that the top three best‐selling commercial vehicles are all ‘utes’ and the MIA data bears this out. In fact the top ive best‐selling CVs are all pickup trucks.

The Ford Ranger is the best seller, followed by the Toyota Hilux and Holden Colorado, with the Mitsubishi Triton and Nissan Navara close behind. Overall, the Ford Ranger is the best sell‐ ing vehicle in New Zealand with H1 sales of 4,000, followed by the Toyota Hilux with 3,263, both selling in greater numbers than the best selling car, the Toyota Corolla.

Toyota Corolla The Toyota Corolla is New Zealand’s best selling car.

internationalfleetworld.com / 27

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FLEET FOCUS New Zealand

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Looking specifically at the fleet sector, LeasePlan reports that there has recently been an increase in demand for pickup trucks, driven by a boom in house building mainly around Auckland and Christchurch. For LeasePlan, double cab pick‐ ups with automatic transmission tend to be the most popular, while demand for both 4x2 and 4x4 models is strong.

Given the road network and the urban population, it’s not surprising to find that small cars and SUVs tend to dominate the passenger car sector.

LeasePlan describes the leet sector in New Zealand as consisting predominantly of entry‐level models in each cate‐ gory of vehicle type. The company has already stated the impor‐ tance of the light CV sector and says that around 50% of the company’s leased vehicle portfolio is made up of LCV models.

Top 10 Passenger Car Registration models H1 2016 Model Volume Share % Toyota Corolla

2,078

4

Toyota RAV4

1,636

3

Mazda CX-5

1,423

3

Kia Sportage

1,365

3

Suzuki Swift

1,303

3

Holden Commodore

1,266

3

Mazda Mazda3

1,205

3

Hyundai Tucson

1,133

2

Hyundai Santa Fe

1,131

2

Toyota Highlander

1,081

2

Source: New Zealand Motor Industry Association

OWNERSHIP PREFERRED New Zealanders still prefer to own vehicles and this is reflected in how business vehicles are acquired. Smaller businesses still prefer to own their cars, although as Lease‐ Plan points out, “Leasing for businesses with an interna‐ tional ownership model is popular. New Zealand has a higher percentage of finance and Hire Purchase leases than it does operating leases. Otherwise this sector is similar to our European sister companies.”

The same patterns that have emerged in the European

28 / internationalfleetworld.com

sector seem also to hold good in New Zealand too, certainly in LeasePlan’s experience: “We are an island nation which is becoming increasingly commoditised in the vehicle leasing sector. The supply chain is limited and there are a limited number of players so the same parties are using the same channels and target‐ ing the same audiences. High levels of used vehicles are imported from Japan which often results in lower residual values. The supply/demand ratios are therefore not weighted in our favour but are beneficial to our consumers.”

New Zealand may be following established fleet trends from Europe, but the size of the business market is much smaller than it is in the more developed fleet markets of Europe, accounting for around 15% of the total passenger vehicle market, reckons LeasePlan.

Employers are subject to New Zealand Fringe Benefit Tax if they make a passenger carrying vehicle available to employees for use outside work and the tax is payable whether or not they choose to make private use of it. Differ‐ ent rules apply to sole traders and partnerships.

FUNDING CHOICES LeasePlan indicates that there is a wide range of funding available for business vehicles including hire purchase, mortgage funding, business loans, revolving credit facilities, overdraft facilities, novated leasing, operating leases and finance leases. The company has also seen a pattern of fund‐ ing according to fleet size, suggesting that for small fleets of between 0‐15 vehicles, around 20% use operating leases, 60% finance leases while the remainder chooses to own their vehicles. The pattern changes for larger fleets of 16 vehicles and more where 50% choose operating leases, 20% finance leases and the rest a mixed ownership model.

The New Zealand Ministry of Transport produces monthly statistics on the take‐up of electric vehicles and the data indicates that registrations for EVs were 0.5% of total light vehicle registrations in Q2 2016. A total of 1,512 light EVs are on New Zealand roads. Not surprisingly, the EV fleet is concentrated in Auckland, Wellington and Christchurch. In addition to EVs, there are also 16,505 petrol/electric and diesel/electric hybrids in New Zealand. Take‐up appears to be on the increase. Company ownership of EVs is running at 34%, but among new EVs, companies are buying more than private buyers.

REMARKETING New Zealand

Used imports dominate Autorola Australia country manager, Philip Browne, reviews the New Zealand new and used car markets.

N

ew Zealand has been going quietly about its busi‐ ness over the past few years with strong economic growth and further growth predicted of 3% in 2016 and 2.7% in 2017.

The unemployment rate continues to fall and despite a challenging global market situation in the dairy industry (which New Zealand is heavily involved in), the New Zealand dollar is healthy and the economy looks stable.

New car buyers have taken this opportunity to start replacing their traditionally very old cars, with June 2016 representing the largest new car market in the month since 1982, at 13,699 units.

Record new car market Year‐to‐date sales of new cars are up 5% to an all time high of 69,057 units alongside booming commercial vehicle sales, often the sign of a buoyant economy, which have beaten the 4,000 unit mark for only the third time in recorded history.

This has been helped by consumers’ higher disposable incomes and the prices of new cars that are lower in real terms than 20 years ago.

Like the majority of new car markets, the SUV is king and accounted for one third of all new sales in June with Toyota, Ford and Mazda the best selling car brands, with the Korean brands of Kia and Hyundai continuing to grow their share of the NZ market.

The market is also showing the first signs of electric car growth. There are only 1,200 electric cars in New Zealand currently but the government has set a national target for adopting 64,000 electric vehicles by 2021. New Zealanders have started consulting with countries like the UK, USA and Norway about how to achieve this number, particularly

when it comes to setting up public charging networks.

Autorola Australia exports used cars to New Zealand, which are predominantly ex two and three‐year‐old rental cars, but the continuing challenge of the market is the age and quality of used cars being imported on a regular basis, in particular from Japan. In just one year, 125,000 used cars were imported, which more than outweighs the 95,000 new cars that were sold in 2015.

Used imports And despite this surge in new car sales, they are still not reaching the levels of used car imports coming into the coun‐ try, hence the average age of a used car in New Zealand has just broken the 14 year old barrier for the very first time.

David Crawford, the boss of the Motor Industry Associa‐ tion, summed up the situation as: “New Zealand is importing somebody else’s waste disposal problem”, meaning that the cars being imported are near the end of their life, and gener‐ ally have no maintenance history and are in poor condition.

That translates into used cars that have potential safety risks and that are not emission friendly.

In 2000 the average age of used cars was under 11.5 years but in just a decade and a half this has risen to over 14 years with cars on average being scrapped at 18 years of age. Only changes to import regulations will help change this situa‐ tion. Ultimately, fewer old cars that are in a poor condition on New Zealand roads will help improve levels of road safety and many of the associations are in favour of a change to the import regulations for this very reason.

But the argument is that while consumers can buy a car for as little as $6,000 NZ (€3,870) they will always put good value for money ahead of improved safety or reduced emissions.

internationalfleetworld.com / 29

PROFILE Lexus

One million and counting Lexus reached a landmark one million hybrid sales in April and now offers the largest full hybrid line-up of any premium car brand. Lexus’s next-generation hybrid system launches later this year, promising improved economy, performance and international market share‌

Secret of success Lexus NX sales have contributed significantly to the sales boost.

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view

Manufacturer Lexus Total sales 2015 652,000 Headquarters Nagoya, Japan Global market share 1% No. of models 11

from the top

New NX provides sales uplift

L

exus International recorded a sales uplift in all major markets in 2015, closing the year with a 12% global sales increase to approximately 652,000 vehicles. A full year of new RC and NX sales contributed signi icantly to the sales boost, alongside the introduction of redesigned RX and LX models in several key markets.

The brand recorded its largest sales uplift in Europe (+20%) with 64,000 vehicles sold, with Western Europe alone recording a 31% sales increase. Lexus’s best selling model in Europe was new NX, which launched in Q4 2014. The model’s success is indicative of a wider positive sales trend for crossover and SUV models in the sector, with NX competing for market share alongside mid‐size luxury best‐sellers including Range Rover Evoque and Audi Q5.

Volumes in China increased to approximately 88,500 vehicles (+14%) and buyers in North America, Lexus’s largest sales territory, contributed 368,000 vehicles (+12%) to the global total. Lexus also continued to expand its operations in emerging markets, including the UAE. Al‐Futtaim Motors, exclusive distributor of Lexus in the UAE, of i‐ cially inaugurated a new facility in Ras Al Khaimah, making it the irst Lexus 3S Centre in the UAE (sales, service and spare parts) and bringing the total number of Lexus facil‐ ities in the region to 17.

2015 was the brand’s irst full year of sales in Vietnam, after opening a dealership in Ho Chi Minh City followed by Hanoi in 2014. Approved in July 2015, Lexus’s irst dealership in Santo Domingo, Dominican Republic, opened its doors at a temporary location in November, and the brand recently began operations in Turkey. While sales volumes are comparatively low in these regions, the brand is focused on building repu‐ tation and awareness in emerging markets.

Lexus’s hybrid sales totalled approximately 149,000 vehicles in 2015, repre‐ senting 23% of the total sales volume. In April 2016, the brand marked the sale of its one millionth hybrid vehicle, 11 years on from the launch of its RX 400h luxury SUV. “The hybrid powertrain continues to be our signature powertrain technology,” commented Tokuo Fukuichi, president of Lexus International. “We have set ambitious environmental goals for 2050 and the popularity of hybrid worldwide is extremely important for us in achieving these goals. I am extremely happy that more than one million new car customers have put their faith in our Lexus hybrid line‐up,” he added.

Following Lexus’s introduction of full hybrid power to the luxury car market in 2005, every model in its range now has the option to feature the technology. Around the world, Lexus currently sells 11 hybrid models, the largest full hybrid line‐up of any premium car brand. Europe is its largest market, with 64% of all Lexus sales being hybrids in 2015.

The UK is well‐established as one of Lexus’s strongest European markets and from the introduction of the RX 400h in 2005 up to the end of 2015, 65,246 cars equipped with Lexus Hybrid Drive have been sold in the market.

LEXUS Global sales, by market Country Europe China USA Japan Other markets Total

2014 53,300 77,600 329,000 44,000 78,100 582,000

2015 64,000 88,500 368,000 48,000 83,500 652,000

% change +20% +14% +12% +9% +3% +12%

David Cussell, general manager for fleet, leasing and network development at Toyota Motor Europe, on Lexus’s leading position in the hybrid market and focus on in-car connectivity.

What percentage of Lexus’s fleet sales are now hybrids?

In 2016 (YTD May), Lexus’s hybrid mix in the leet market has reached 79% across Europe with over 95% in West‐ ern European markets. We continue to target hybrid growth in all regions as the Lexus point of difference.

Do you see a role for plug-in hybrids in the Lexus range?

Lexus continues to lead the world in advanced engineering technology, and whilst hybrid offers the best balance between ef iciency and driver performance today, we continue to closely monitor consumer trends and are ready to respond as necessary.

Currently, we see a great poten‐ tial in Lexus Hybrid Drive, which is implemented across the range and represents a large part of our sales (2015: in Europe = 64%, in West‐ ern Europe = >95%). We had a 45% hybrid premium market share in 2015.

Is in-car connectivity an important R&D area for Lexus?

New RX is the irst Lexus vehicle with the latest Lexus Multimedia 2015 platform, which is now rolling out on the rest of the Lexus line‐up.

Multimedia 2015 brought design enhancement, usability improvements and the additional Connected services, such as Weather Forecast and the Fuel Prices app. These are coming on top of services that are already available, including Google Street View, Panoramio and Connected Traf ic.

All the multimedia content on new RX is available on the large 12.3’’ central display that can be operated by voice command or Remote Touch. We have also intro‐ duced a wireless battery charger, available on new RX, that can be used to charge compatible smart‐ phones or other electronic devices.

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internationalfleetworld.com / 31

PROFILE Lexus

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Where are they made?

4 5

1 3 2

Manufacturing plant locations

FIN fleet in numbers

335,000 Total number of RX models sold to date, Lexus’s best-selling hybrid model.

2020 Toyota Motor Corporation’s target for the launch of its first automated car – a modified Lexus GS.

No.1

The brand’s ranking for dependability in the UK’s prestigious J.D Power Survey 2015.

32 / internationalfleetworld.com

1

Tahara plant, Aichi Prefecture, Japan – Lexus LS, Lexus IS, Lexus GX, Lexus RC, Lexus LX.

2

Motamachi plant, Aichi Prefecture, Japan – Lexus GS, Lexus GS F, Lexus ES.

3

Kyushu plant, Fukuoka Prefecture, Japan – Lexus ES, Lexus IS, Lexus RX, Lexus NX.

4

Cambridge plant, Ontario, Canada – Lexus RX.

5

Georgetown plant, Kentucky, USA – Lexus ES.

Fuel Cell prowertrains by 2020

L

exus continues its busy schedule of model refreshes into 2017, with new ES due in February next year. The refreshed sedan features a new spin‐ dle grille and redesigned bumper, alongside Lexus’s new Safety System+ bundles offering adaptive cruise, auto high‐beams, lane‐departure warning, auto braking, pedestrian detection, and forward‐collision alert.

IS also receives a range of interior and exterior updates for the 2016 model, which was irst unveiled at the Beijing Motor Show this year. The facelifted compact executive saloon receives a number of changes to keep it fresh, but will not be available in key markets including the UK until January 2017.

Exterior changes include new headlights and an updated front grille design like ES, which together make up the current Lexus family design. Standard 17‐ inch alloy wheels enhance the sporty look, alongside new L‐shaped rear lights.

New IS will have two petrol engines, the 2.0‐litre petrol in the 200t model and a 2.5‐litre unit combined with an electric motor in the hybrid IS 300h model, offering 223hp and 245hp respectively.

Also due in showrooms in early 2017, Lexus’s irst large luxury coupe, LC 500h, features the company’s new generation hybrid technology engineered for high performance – the Multi Stage Hybrid System. Lexus’s most complex powertrain to date, the system is said to: “deliver more power, better traction and greater acceleration while maintaining ef iciency”.

Total power is estimated at 359hp, bringing a 0‐62mph time of less than ive seconds with combined fuel economy approaching 4l/100km. The model is built on the new GA‐L platform, using high‐tensile steel in the chassis and aluminium in the body for weight reduction. Inside, LC 500h offers Lexus’s next‐generation infotain‐ ment system. Previewed as the LF‐LC concept that was irst presented in 2012, the hybrid sports car is said to demonstrate technology due for other models in future.

Commenting on whether Lexus would consider incorporating the hydrogen fuel cell battery seen in Toyota’s Mirai in a future model, Dave Cussell, general manager for leet, leasing and network development at Toyota Motor Europe said: “The fuel cell powertrain is being introduced in the LF‐FC Concept (Lexus Future Fuel Cell). We aim to introduce a Lexus production car with a fuel cell powertrain around 2020.

“Although based on the technologies introduced in the Mirai, it will feature vari‐ ous upgrades to improve vehicle performance, driving performance (longer cruis‐ ing distance through higher fuel ef iciency), and mass production capabilities.”

LEXUS fleet model range

CT

HS

IS

Variants: 5dr hatchback Markets: Global Fuel: 3.6-4.1l/100km CO2: 82-94g/km

Variants: 4dr sedan Markets: Japan Fuel: 4.9l/100km CO2: 113g/km

Variants: 4dr sedan Markets: Global Fuel: 4.2-9.7l/100km CO2: 99-225g/km

RC

ES

GS

Variants: coupe Markets: Global Fuel: 4.9-10.8l/100km CO2: 113-251g/km

Variants: : 4dr sedan Markets: Global Fuel: 5.4-9.5l/100km CO2: 127-224g/km

Variants: 4dr sedan Markets: Global Fuel: 4.4-11.2l/100km CO2: 104-260g/km

LS

NX

RX

Variants: 4dr sedan Markets: Global Fuel: 8.6-11.4l/100km CO2: 199-263g/km

Variants: crossover Markets: Global Fuel: 5.0-8.1l/100km CO2: 116-187g/km

Variants: SUV Markets: Global Fuel: 5.2-9.0l/100km CO2: 120-210g/km

GX

LX

LC (coming 2017)

Variants: SUV Markets: Europe, North & South America Fuel: 12.8l/100km CO2: 303g/km

Variants: large SUV Markets: Global Fuel: 9.5-14.6l/100km CO2: 250-350g/km

Variants: coupe Markets: Global Fuel: 8.6-11.4l/100km CO2: 199-263g/km

internationalfleetworld.com / 33

Audi Q2 Is Audi’s Juke-sized crossover all style and no substance? Alex Grant finds out.

SECTOR Crossover PRICE €22,900–€34,000 FUEL TBC CO2 TBC

A

udi has long defined itself by its understated sense of premium style, on subtle accents of aluminium, soft metallic colours and futuristic LED light signa‐ tures. So the Q2 might seem like a step away from the norm.

Bigger than an A1 but smaller than the three‐door A3, with which it shares a platform, this is a new nameplate and a new segment for Audi. It’s Ingolstadt’s interpretation of the urban crossover, a concept pioneered by the Juke and Yeti, but with the advantage of a premium badge on the grille.

There aren’t many direct competitors. Most similarly sized crossovers fit into a lower price bracket than the Q2, and Daimler has yet to launch a crossover under the Smart brand. So that puts Audi up against the ageing MINI Coun‐ tryman, with a palette largely comprising primary colours and bodywork which appears to have been cut out of a square block of concrete.

It’s got an obvious business case. The Juke has found its place in the market by targeting upsizing supermini drivers and those for whom a hatchback or small MPV is too boring.

Audi now has a similar offering, filling a gap between the A1 There are plenty of other choices for company car driv‐ and A3 and potentially bringing completely new customers ers. The lively 1.0‐litre, three‐cylinder, turbocharged petrol into showrooms. This corner of the market is unlikely to be engine from the A3 is also available and is a sensible neglected for long. option for city‐based drivers. Audi is also Audi sees demand being retail‐weighted, but offering a pair of 150hp engines – the 2.0‐litre FLEET FACT hopes to attract company car drivers with the TDI and 1.4‐litre TFSI – which will both be Q2. Fleet operators will be glad to hear that, available with quattro four‐wheel drive, and beneath its new sense of style, there isn’t much the 190hp 2.0‐litre diesel at the top of the All Q2s feature to adjust to. Particularly in terms of the engine range. Recent Volkswagen Group products autonomous choice, with the likely corporate favourite 1.6‐ suggest fuel economy and CO2 for the petrol emergency litre TDI available from launch. It’s a quiet engines won’t be far behind their diesel coun‐ braking. engine, and gets a slight increase to 115hp, but terparts, which, with the lower screen price, it’s still reliant on shifting up and down could make them an attractive alternative. through the gears to get the best performance. Expect fuel Audi also seems to have benchmarked MINI‐esque agility economy of around 4l/100km with CO2 emissions of for the Q2. The platform and wheelbase are the same as the 105g/km when figures are released during the summer.

A3, but the smaller body pushes the wheels out to the corners resulting in confident roadholding despite the potential top‐heaviness from its increased ride height.

Audi’s variable steering setup is clever, too, offering quick responses while parking or cornering heavily but without the downside of being twitchy at highway speeds.

But it’s customisation that sets this furthest apart from the rest of the range. The C‐pillar ‘blade’ is removable, so it can be swapped for other colours whenever the driver feels like a change, and the A3‐like interior is livened up by brightly‐coloured accents – if desired – and backlit graphics which glow at night. The result is a car which can be tuned to masculine or feminine tastes.

Or, alternately, it can be dialled back to the typical subtle tones that are used elsewhere in the Audi range, becoming a fashionable, understated small SUV. Either way, it’s a welcome injection of youthful character, and Audi should have no problems luring customers into showrooms for a closer look.

34 / internationalfleetworld.com

what we think A stylish and surprisingly practical alternative to the ‘ordinary’ family hatchback, the Q2 is cute and customisable, has plenty of character and the right badge on its grille. But it’s unlikely to have such a free run of this segment for very long.

highlights Rugged SUV styling, but only slightly larger than an A1.

Apple CarPlay and Android Auto across the range.

More boot space than an A3 or MINI Countryman.

internationalfleetworld.com / 35

Mercedes-Benz GLE Coupe Comfort and sporty looks are what the GLE Coupe is all about, reckons John Kendall.

SECTOR Premium SUV PRICE From €56,550–€106,450 approx FUEL 7.2l/100km CO2 187g/km

A

choose between comfort and sport settings, while a self‐ t a glance, the GLE bears a strong resemblance to a levelling function would be welcomed by those choosing the BMW X6 and I’m sure that is no accident, but it’s GLE Coupe for towing. Additional standard equipment debatable how much further the comparison stands included Active Parking Assist, Keyless‐Go starting, a up. Despite the coupe roofline, suggesting a crossover type powered tailgate, reversing camera and LED intelligent light‐ chassis, the GLE coupe is M‐Class underneath and it feels like ing. Check the specification for your particular market. it. So if you like comfort above all else and go for the Merc’s Part of the GLE’s appeal will be in the high driving posi‐ rakish looks, this car is for you, if your budget will run to it. tion. The driver gets a good all‐round view of the road and Launched last year, the GLE Coupe is available with a passengers enjoy plenty of space. At around 2.25 tonnes range of powertrain options including the 258hp 3.0‐litre empty, it’s a heavy car although 258hp can push it to V6 350d equipped with 9G‐Tronic nine‐speed automatic 100km/h in 7.0 seconds, so it has good performance. But transmission fitted to our test car. It’s an excellent gearbox it’s not designed to provide the last and complements the car’s relaxed, word in handling. comfortable nature. More powerful The Dynamic Select drive mode options come in the shape of the 367hp provides a setting for slippery surfaces 450 AMG and 585hp AMG GLE 63. There and individual tailoring so it should are also GLE 400 and GLE 500 models in provide added traction for towing horse‐ the range producing 328hp and 449hp boxes or caravans off‐road. We didn’t respectively. Not all power options are have the opportunity to drive off‐road or available in all markets, so it is advisable with a trailer, but the weight and four‐ to check what is available for you. wheel‐drive combination should ensure Given that the 350d engine offers the useful performance for both. lowest CO2 emissions at 197g/km, this It comes with a long list of standard variant is likely to be more popular equipment, which might be expected for with fleets, but with a starting price the price. Perhaps more importantly for around €56,500, drivers are less likely fleet customers, it’s a Mercedes‐Benz to be so concerned about emissions and The GLE Coupe is a and that means it comes with a long list fuel consumption. car for those who make of standard safety equipment. On our 4Matic permanent four‐wheel‐drive comfort a priority and test car this included Active Bonnet to comes as standard, although the settings protect pedestrians in an impact, Colli‐ vary according to model. Torque is split need a car with good sion Prevention Assist Plus which will 50/50 for the diesel but 40/60 front/rear towing capacity, intervene if the car is too close to the on some more powerful models. Our combined with vehicle in front and Crosswind Assist to UK specification GLE Coupe came with sporty looks. prevent the car being blown sideways Airmatic air suspension as standard and when exposed to strong winds. adaptive damping permitting drivers to

what we think

36 / internationalfleetworld.com

Volkswagen Tiguan A stylish and capable replacement for the first Tiguan, says John Kendall.

SECTOR Compact SUV PRICE From €25,975 approx FUEL 4.7l/100km CO2 123g/km

I

remember testing a new mk‐IV Golf many years ago models will be available and there is a comprehensive and everywhere I took the car people stopped, looked list of familiar petrol and diesel engines including the 1.4‐ and asked questions, despite the relatively conserva‐ litre TSI direct injection, turbocharged petrol (125 and tive design. It was instantly recognisable as a Golf and in 150hp), 2.0‐litre TSI 180hp, and 2.0‐litre TDI turbodiesel many eyes, desirable as a result. It’s a trick that VW has (115hp, 150hp, 190hp, 240hp). Most engines are avail‐ not forgotten. Take a look, even briefly at the new Tiguan, able with a choice of six‐speed manual or DSG twin‐ which made its debut at the Frankfurt Show in Septem‐ clutch automated transmissions. ber 2015, before going on sale earlier this year. If you Experience suggests that Volkswagen’s 150hp TDI know anything about cars, I think you would identify it diesel engine will be the engine to choose for fleet as the new Tiguan, even if you didn’t know it had been customers, offering a good combination of low fuel recently launched. It’s a new and completely refreshed consumption and good performance and it was this car, but there’s no doubt what it is. model, with seven‐speed DSG trans‐ Arguably that’s more important in the mission that I drove on the launch. more conservative SUV sector, where There’s a familiarity to everything relatively high cost means anything that about the Tiguan from the shared could undermine residual values is switchgear and instrument options, to unwelcome. Inevitably, the car uses Volk‐ the familiar layout that carries over swagen’s MQB architecture and is the much of the design of its predecessor, first Volkswagen SUV to do so, but we but updated. This is all reassuring. The know there is more to come, possibly at handling almost feels like a Golf, but the Paris Show and Volkswagen has the higher seating position and greater promised at least one new SUV in each roll angles remind you that it isn’t. The relevant market segment by 2020.

DSG gearbox is reassuringly familiar The car is wider, lower and longer, too with its rapid and smooth gear giving more headroom inside and up to changes with manual override if you 29mm more rear knee room, according think you can do better. The 150hp The new Tiguan is just to Volkswagen. With the rear seat folded, engine feels like it delivers more power what you would hope there is more luggage space, up 145 litres than that, yet returns 5.7l/100km on from a VW – a great, to 1,655 litres. Tiguan is the first Volk‐ the combined cycle. swagen to be offered with an active Rivals like the Kia Sportage have lost slightly understated, but bonnet, lifting it up 50mm in an impact their design edge and that is good news stylish all-rounder that to try and protect pedestrians from for the Tiguan. Externally the subtle re‐ does everything right, injury, by providing more clearance design makes the car look crisper, but most of the time. between the bonnet and solid engine. offers more space inside. It looks like Both two and four‐wheel drive Volkswagen has done it again.

what we think

internationalfleetworld.com / 37

Volvo V90/S90 Alex Grant finds out if Volvo’s stylish newcomer can put the brand back on drivers’ wishlists.

SECTOR Executive PRICE €42,750–€60,600 FUEL 4.4–7.4l/100km CO2 116–169g/km

V

olvo’s global sales figures suggest it’s a brand often overlooked when executive‐level company car driv‐ ers are putting a shopping list together. But the S90 and V90 might be about to change that.

As per the S60 and V60, the newcomers are sedan and wagon versions of the same model. It brings all of the brand’s biggest cars under a single ‘90 Series’ alongside the new XC90, replacing the near‐invisible S80 and ageing V70. The newcomers share a platform, engines and tech‐ nology with the XC90, and sales are expected to be weighted more heavily towards the top trim levels too.

Volvo is being realistic, and isn’t expecting to dominate the executive segment. Residual values were never the S80 and V70’s strongest point, so it’s controlling sales volumes, but it now has a competitive alternative to the A6, 5 Series and E‐Class. The V90 is predicted to be the stronger seller in Europe, by a large margin, while the S90 is targeting sedan‐heavy markets such as Asia and North America.

It’s benchmarking the core of the segment. Volvo is expecting the 190hp D4 to be the most popular engine in and low wind, road and engine noise all add to that laid‐ Europe, and it features an eight‐speed automatic as back character which is a brand hallmark. standard. There’s also a 235hp D5 AWD, which features a However, it’s worth noting that the likely biggest‐selling system that uses a compressed air pump engine wasn’t available to drive on the press to spool the turbocharger and improve accel‐ launch, and Volvo had equipped the entire FLEET FACT eration off the mark, and T5 and T6 petrols fleet with air suspension and the more sophis‐ which aren’t likely to be a common sight ticated multi‐link rear axle, which aren’t where CO2‐based taxation is the norm. expected to be popular options. Front‐wheel Volvo is working The S90 and V90 are tailored a little differ‐ drive versions with the simpler leaf‐sprung on a V90 for the ently. Volvo says its customers value comfort rear axle have a lot to live up to, especially emergency more than outright sportiness, and that’s with the optional 20‐inch wheels. services. reflected in the driving experience. Despite As in the XC90, the range comprises the offering selectable driving modes and impres‐ entry‐level Kinetic and Momentum trims, sive grip and stability, both feel best suited to the default with a choice of chrome‐accented, luxury‐focused Inscrip‐ Comfort setting where they offer an effortless ability to tion and the aggressive R‐Design which will follow shortly cover ground. As in the XC90, the calming hues of the cabin after launch. Volvo wouldn’t confirm it, but the 60 Series range structure suggests there will be V90 Cross Country to replace the XC70 – a popular model with emergency services fleets.

While all of this sounds familiar, there are compromises to be made for Volvo’s prettier new family styling. Rear three‐quarter visibility in the S90 suffers from the kicked‐ up windowline and, while the V90 is the best‐propor‐ tioned Volvo estate since the Amazon, that comes at the expense of the practicality which once defined its prede‐ cessors. There’s less space behind the rear seats than most in this class, and an Astra Sports Tourer has more capacity with the bench folded flat.

But that’s an ongoing trend, and the outgoing V70 was smaller than its predecessor too. Volvo is carving its own niche within this segment, one defined by design and luxury and not driven by a need to copy the sportier Germans. Emerging from the shadows of the executive class could have looked like a genuine challenge, but Volvo’s luxurious newcomers look like a tempting option.

38 / internationalfleetworld.com

what we think

highlights Platform, engines and design shared with the XC90

A stylish executive car with its own sense of character, but one launching into a segment where Volvo hasn’t had much presence recently. Sub-110g/km CO2 emissions for the D4 diesel would certainly have helped sway those seduced by the way it looks.

190hp 2.0-litre diesel includes eight-speed automatic transmission 44-47g/km T8 Twin Engine plug-in hybrid due shortly after launch

internationalfleetworld.com / 39

fleet in figures

Will Brexit dent European growth?

Strong growth continues with European registrations but will the UK’s departure from the EU impact on wider European sales? John Kendall looks at the numbers.

Renault in France Renault saw True Fleet registrations for May rise by 55.1% compared to May 2015.

T

he story dominating European headlines in the past month has been the result of the UK referen� dum on continued membership of the European Union. 52% of those who voted chose to leave the EU, while 48% voted to remain. Although the result is not legally binding on the UK Government, the process of departure from the EU is likely to go ahead. Since the UK Prime Minister resigned immediately after the result

40 / internationalfleetworld.com

was announced, nothing is likely to happen until his successor Theresa May had rearranged the Government.

The UK is the second largest market for cars in the EU and has a similar level of importance in the fleet sector. The country is also the fourth largest motor manufacturing nation in the EU and the third largest car producer. The decision to leave the EU could have a range of impacts on the UK vehicle

market and manufacturing sector.

Very little of the UK automotive manufacturing capacity is owned by UK companies. As we outlined last month, all the volume producers: Honda, Jaguar Land Rover, MINI, Nissan, Opel/Vauxhall and Toyota are foreign owned and with a serious interest in the UK as an EU member. Altogether there are 33 assembly and engine plants in the UK according to data from

ACEA, the same number as in France.

Only Germany has more. In every place in the UK where there is an assembly or engine plant, the referendum recorded a majority in favour of leaving the European Union.

LMC Automotive has been assessing the possible impacts of the referendum result on the UK automotive sector in conjunction with Oxford Economics. As the two organisations point out, the UK exports almost 80% of its car produc‐ tion and over half of this goes to EU countries. Several manufacturers rely heavily on the UK for engine production within the EU as the table below shows:

Light vehicle engine production Manufacturer

UK share %*

BMW

16

Ford

59

Honda

100

Renault Nissan

6

Toyota

51

Source: LMC Automotive

As the table shows Ford, Honda and Toyota all produce over 50% of their European light vehicle engines in the UK, with Honda 100% reliant on the UK. At the same time, LMC Automotive says that almost half the components used in UK‐built new cars are imported from the EU. According to LMCA, the UK imports almost 90% of its new light vehicles, of which 80% are from the EU (but exclud‐ ing those produced in the UK).

LMCA is forecasting that UK light vehicle sales will be lower than previ‐ ously forecast because of an effective

increase in prices, due to depreciation in the value of Sterling, lower economic growth and weaker confidence. The organisation expects this to result in 410,000 fewer light vehicle sales in the UK by 2018, reducing demand from UK light vehicle production by 50,000 vehi‐ cles. Even so, these reductions could be small when compared to the forecasted reduction in global vehicle sales caused by urban populations giving up car ownership in favour of car sharing.

Add the two together and it could prove unhelpful for UK motor manufacturing in the long run.

Other organisations, including IHS Automotive are fore‐ casting similar falls, but since the total UK UK production* market is expected to exceed 2.7m registra‐ 331,997 tions this year, with declines already fore‐ 2,396,218 cast for the following 151,584 years, the overall impact could be quite 233,696 small. IHS predicts that 306,056 by 2018, registrations could reach 2.71m *2016 estimate units, down on the 2.94m the organisation forecast earlier.

Since most vehicles sold in the UK are imported, LMCA expects a UK sales downturn to have a knock‐on effect in other EU countries with production in Germany, Spain, France, the Czech Republic, Poland and others affected as a result. LMCA believes this could affect production in Germany by as much as 100,000 cars. Overall LMCA points to a risk of investment blight and in the long‐ term, atrophy of the UK automotive production capacity.

Data from the UK SMMT suggests that

demand for new cars rose by 3.2% in the first half year (H1) of 2016, with a record 1,420,636 registrations between January and June. Even though the UK referendum occurred too late in the month to have a significant impact on the results, registrations for June declined by ‐0.8% to 255,766, compared with June 2015. Most of this can be attributed to a decline in business car sales, down ‐25% to 10,035 compared with June 2015.

Fleet registrations rose by 4.7% in H1 to 717,483, while business registrations fell by ‐1.5%. Fleet registrations accounted for 50.5% in H1, with a further 3.8% for business registrations.

Russia True Fleet sector While the overall market in Western Europe is a fairly good indicator of the health of the fleet sector, Dataforce suggests that a different picture is emerging this year in Russia. Dataforce has analysed data on the Russian passenger car market for the first five months of 2016. Total sales have reached around 466,000 cars, less than half the market for the same period in 2012, when it topped 1m.

In the January to May period, overall private sales fell by ‐4.7% and in May alone the decline reached ‐14.0%. At the same time, the True Fleet sector grew by 9.4% in the January to May period and by 0.2% in May. Dataforce reports that Lada leads the True Fleet market in Russia although it lost 1% in market share in the January to May period compared with 2015. Toyota is the second best True Fleet seller with sales up 33.4% while third placed Hyundai has seen sales rise by 36.6%.

Sixth placed Kia has seen registrations

Made in the UK The British-built Astra helped Vauxhall become the best selling brand in May in the UK.

internationalfleetworld.com / 41

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fleet in figures

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grow by 55.5%, chasing fourth and fifth placed Skoda and VW. According to Dataforce, the most popular model is the Hyundai Solaris with True Fleet sales up 44.1%, while private sales have fallen ‐12.5%. The second most popular is the Lada Largus, effectively a re‐badged Dacia Logan with True Fleet registrations up 17.1% while private sales have fallen by ‐12.5%. The Toyota Camry takes the third place with True Fleet sales up 18.1% and private sales also up by 2.6%. The fourth placed Toyota Land Cruiser has enjoyed a 69% gain in True Fleet sales and a 32.1% rise in private sales. In fifth place, the Lada Niva has seen True Fleet sales decline by ‐17.3%, while private sales have fallen by ‐ 24.0%.

European registrations Overall car sales in Western Europe grew by 5.7% in June according to LMC Automotive and the organisation believes that the market will grow by 5.5% this year. Sales in Germany rose by 7.1% in H1 to 1,734,082, while Spain has risen by 12.3% to 623,299. For Italy the H1 increase has been 18.7% taking sales to 1,037,584.For France the market is up 8.2% to 1,100,821.

Commenting on the H1 results, LMC

Automotive said, “With one extra selling day in only a handful of markets, June saw another solid month for the West European car market, with around 1.4m units registered. The market was up 5.7% year‐on‐year (YoY), and the year to date (YtD) growth rate now stands at 8.4%. All the Big Five car markets were up YoY with the notable exception of the UK, which saw a contraction for the first time since October 2015. The Italian and Spanish markets continued to lead the way, with the German market also performing well with growth picking up to 8.3% YoY.”

‘Big Five’ True Fleet growth Dataforce has analysed the ‘Big Five’ European True Fleet markets for the January to May period and the average rate of growth across France, Germany, Italy, Spain and the UK was 10.5%. Italy led the rate of growth with an increase of 17.1% for the period, followed by France with a 16.1% gain, Spain regis‐ tered growth of 15.3%.

France almost matched Italy for the growth in True Fleet sales for May, with the market up 29.6%. Dataforce reports that Renault saw True Fleet registra‐ tions for May rise by 55.1% compared with May 2015. BMW and Mercedes also gained from growth of over 30%.

Germany saw more modest growth in the True Fleet sector in May, up 12.4% compared with May 2015, although as Dataforce comments, May 2015 saw strikes and reduced deliveries in Germany. Nissan posted the largest percentage growth rate with May sales up 72.8%. Ford saw growth of 40.3% in May too.

The May rate in Italy saw True Fleet growth of 29.7% compared with May 2015. Dataforce says that a True Fleet sales volume record was set in the month with more than 38,000 cars registered. The big winners were Renault – up 79% on May 2015 and Smart, with a gain of 124.9%.

Spain experienced True Fleet growth of 16.0% in May. Dataforce suggests that the rate of growth for Audi of 73.1% compared with May 2015 can be attrib‐ uted to sales of the new Audi A4 and the A3. The Qashqai is credited with helping to boost Nissan’s growth by 59.3%, making it the second best selling True Fleet car in the month, just five registra‐ tions behind the Renault Clio.

True Fleet growth had already moderated in the UK in May with 5.7% compared with May 2015. Opel/Vaux‐ hall was the May best selling brand, followed by Ford and VW, then Mercedes‐Benz in fourth place.

Audi in Spain Dataforce suggests that the rate of growth for Audi of 73.1% can be attributed to sales of the new A4 and the A3.

42 / internationalfleetworld.com

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