International Fleet World August 2018

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

August 2018

The New

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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

August 2018

contents

The New

HYUNDAI KONA EV Go electric. Drive SUV. internationalfleetworld.com

Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk

20 FEATURE: Risk Management.

28 PROFILE: Citroën’s fleet proposition

32 FEATURE: Alternative Fuels

36 INTERVIEW: John Korte of Donlen.

Editor John Challen john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Content Editor Jonathan Musk jonathan@fleetworldgroup.co.uk Account Directors Claire Warman claire@fleetworldgroup.co.uk Harry Whyte harry@fleetworldgroup.co.uk Yvonne Wright yvonne@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Dan Bennett dan.bennett@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk

04 Fleet Review Editor John Challen talks about the need to embrace change.

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

08 News The biggest stories from the international fleet community.

12 Environmental News Updates from the electrified vehicle fleet market.

16 Fleet Management Analysis of the results of an Alphabet/Capgemini study.

18 Spotlight Highlights of the new Jeep Wrangler – one of the ‘original’ SUVs. 20 Risk Management The challenges of operating businesses across borders.

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

23 Analysis The benefits of centralised fleet management agreements.

24 Fleet Focus Portugal is one of the European countries where diesel remains popular.

28 Profile As Citroën prepares for its centenary year in 2019, we look at its performance.

32 Alternative Fuels An investigation into whether hydrogen is still viable for cars.

36 Interview Donlen’s John Korte gives a US perspective of mobility as a service.

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

38 Driven Peugeot 508 / Suzuki Swift Sport / Hyundai Kona / Mercedes C-Class / Jeep Renegade / Toyota Aygo.

internationalfleetworld.com / 03

fleet review This month, editor John Challen talks about the need to embrace change and wonders why we can’t all just get along.

Automotive arrogance At the recent FIFA World Cup in Russia, the English – mainly the media, but also the general public – were accused of being ‘arrogant’ ahead of England’s semi-final match against perceived inferior competitor Croatia. The heightening of a national team’s expectations at a major tournament is nothing new for England (and possibly for many other ‘big’ teams), but so often these views are based on nostalgic memories of past glories (enough, already with the 1966 references!).

Needless to say, the claims of arrogance came after the Croats defeated England, but nevertheless, there was plenty of evidence of fans and pundits alike getting carried away; social – and mainstream – media was awash with it, dressed up as ‘national pride’.

Could it be that there is a similar situation and similar feeling of entitlement in some areas of the automotive business? A world where a limited number of established players have dominated and where petrol and diesel engines have been proven to be the ‘best’ way to power a car. It’s certainly a fairly conservative industry, with many keen to keep the status quo and expressing resistance to any sort of change. Such an approach makes the proposed sea change of cars moving from internal combustion engines to electric power all the more interesting. For fleets, the biggest deal-clincher is often cost, but with EVs, there seem to be further concerns about charging infrastructure, vehicle range and running costs.

But, in reality, is there really any reason to think the old ways are the best ways? Electric vehicle technology is unrecognisable

visit internationalfleetworld.com

compared with that of its predecessors and the number of charging stations and solutions is increasing on a daily basis. In the UK, BP’s purchase of Chargemaster could be a crucial point in the history of the industry and probably won’t be the last time an ‘established’ power supplier attracted a relative new entrant.

So the market will no doubt react and embrace the changes. The real shake-up could come when Level 5 autonomous vehicles start hitting the streets (not literally), but that’s a conversation for another day…

Shared space shenanigans I’ve been spending a lot of time on my bike recently (self-propelled, as opposed to motorbike) and have been – mostly – treated with respect by my fellow road users.

However, many cyclists are not so lucky and a quick search on YouTube throws up countless hours of camera footage of abuse of bikers from drivers of all sorts of vehicles.

The trouble is, it’s not all a one-way street and there are some cyclists who don’t exactly help the car vs bike scenario. But there are also truck vs car, motorbike vs car, bus vs bike and van vs car flare-ups too. And that’s without even mentioning pedestrians!

The mode of transport isn’t the problem – it’s the individual in control who needs to change their way. Will it ever happen?

Given the growing number of vehicles and people on our roads, probably not, but we live in hope. Maybe accident avoidance technology is the answer, but there’s something to be said for an extra dose of good, old-fashioned common sense!

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD For all your fleet needs, visit internationalfleetworld.com

NEWS from the global fleet community

INSIGHT from experts into the fleet industry

ADVICE best practice for running your fleet

fleet in figures

Western Europe, China and the US help to boost sales Established automotive markets were mostly responsible for a 4.2% increase in sales in June, while South America and Eastern Europe struggled. By John Challen.

L

ight vehicle sales in the US totalled 1.55 million in June, up 5.4% year‐ on‐year (YoY). The US was the only country to grow in North America, meaning that the region expanded 3.8% from June 2017. This June volume trans‐ lates into a selling rate of 17.4 million units a year, up 0.5 million from last month. SUVs soared by 16%, bringing average transaction prices to $32,092, up by 1.4% YoY. Incentives increased 1.8%, to $3,860, which helped retail sales to grow 4.3% YoY. Sales in Canada keep deteriorating and fell 1.8% YoY in June, one percentage point more than in May. The 200,000 units sold in June translate into a selling rate of 1.97 million units a year, the third month in a row that it has fallen below two million.

Mexico faced declining sales for the 13th consecutive month, with 119,000 units sold in June, down by 6.1% YoY.

Europe West European light vehicle sales increased by 4.4% in YoY terms in June, although the regional selling rate fell back from 16.8 million units a year in May to 16.5 million units a year in June.

Overall, the regional market is still set to grow this year, albeit at a slower rate than in recent years, and with signifi‐ cant variation between stronger performers such as Spain and France, and struggling markets such as the UK and Italy.

June’s Russian light vehicle sales came in at just over 156,000, a rise of 10.8% YoY. This increase suggests that underlying demand is holding up well despite higher excise duties, a hike in

06 / internationalfleetworld.com

utilisation fees and currency‐induced price increases. The June light vehicle sell‐ ing rate was just over 1.8 million units a year, representing a small slowdown from 1.89 million units a year in May.

China As expected, sales (i.e., wholesales) in China slowed in June, but not as much as the escalating US‐China trade war would suggest. According to preliminary data, the June selling rate was 28.9 million units a year, down more than 3% from May, and the second consecutive month of month‐on‐month decline. The US‐ China trade disputes have caused uncer‐ tainty over the prices of imports, which apparently made consumers hold off on purchases of imports. Slowing sales also mirror an economy that is losing steam.

Nonetheless, on a YoY basis, sales increased by over 4% in June and nearly 5% in H1 2018.

Looking ahead, some slowdown in sales (especially sales of imports) looks unavoidable, especially in coastal provinces that are heavily reliant on exports. Yet, the Chinese Commerce Ministry announced that it would use the

Sales of the Volkswagen Golf helped Western European figures

higher tariff revenues from the counter‐ measures to relieve the negative impact of the trade war on exporters.

Other Asia The Japanese market lost some steam in June, with the selling rate falling to 5.2 million units a year, although that was not a bad result for this mature market. On a YoY basis, sales declined by 1.8% in H1 2018, amid the clouding global outlook, the scandal at Subaru, and weakening consumer and business confidence.

After two months of robust sales, the selling rate in South Korea moderated to 1.7 million units a year in June, down 5.6% from May. On a YoY basis, sales declined by over 5% in June. The positive impact of new model launches and aggressive incentive campaigns among imports appears to be fading.

South America Sales in Brazil held up well in June, despite the negative impact from the nationwide truckers’ strike in May and disruptions caused by the FIFA World Cup. The June selling rate was 2.38 million units a year, up slightly from May. Nonetheless, the pace of the sales recovery appears to be stalling, in the face of the weakening real, rising inflation and a slow recov‐ ery in the job market.

In Argentina, the plunge in the peso, massive interest rate hikes and higher inflation have started to impact light vehicle sales. Sales fell by 17% YoY in June, the first YoY decline in two years.

The government has secured a $50 billion bailout programme from the IMF, but the peso is continuing to fall.

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

manufacturer news

New technology cuts petrol CO2 by 20% K engineering specialists are working on new engine technol‐ ogy claimed to cut CO emissions by around 20% – aiming to U secure a longer‐term future for the internal combustion engine and 2

boosting the benefits of plug‐in hybrids.

Work by Cambridge‐based Camcon Auto – including develop‐ ment with early investment partner Jaguar Land Rover – has led to the development of an engine that eliminates the camshaft and replaces it with a patented Intelligent Valve Actuation (IVA) system. The result is an engine that is much lighter, smaller, and more importantly produces much lower emissions and better fuel consumption. Camcon says the engine offers diesel fuel consumption with petrol emissions performance, and is expected to be able to exceed all upcoming emissions legislation.

Camcon has already tested the technology on Jaguar Land Rover's Ingenium petrol engine, fitted to one of the carmaker's existing models to evaluate in a roadgoing environment – it says it’s already seeing CO2 emissions cut by around 20% at the engine end.

Research on the engine includes its possibilities for hybrids and the next phase will look at diesel engines.

Diesel-free Volvo S60 revealed

V

olvo has revealed the third‐generation S60 sedan, said to be a vital tool to expand its presence in North America and China.

Unveiled at Volvo’s first US manufacturing plant in Charleston, South Carolina, S60 shares a platform and technology with the 90‐ Series Volvos and will be the first car to be sold without a diesel engine, even in European specification. Drivetrains include T5 and T6 petrol engines, and two Twin Engine AWD plug‐in hybrids, the most powerful of which will produce 415hp with an upgrade by the brand’s performance arm, Polestar.

08 / internationalfleetworld.com

Volvo drives shift to mobility with standalone brand

V

olvo has launched a standalone mobility brand as it looks to provide urban drivers with advanced alternatives to tradi‐ tional car ownership.

Dubbed ‘M’, the brand will debut in Sweden – which will serve as the development base – and the US from the spring of 2019 and will provide on‐demand access to cars and services via an app. In Sweden, this will draw upon Volvo’s Sunfleet car sharing division, which has been operated by the brand since 1998 and will be fully integrated into Volvo’s M brand.

The service will also put proprietary learn‐ ing technology to use to find out more about users’ mobility requirements to cater for their needs going forwards – ensuring it stands out compared to current providers, according to Bodil Eriksson, CEO of Volvo Car Mobility.

He explained: “The services currently available mainly offer alternatives to a taxi or public tran‐ sit. We’re focused on the way people use the cars they own, which sets us apart. We aim to provide a real alternative to that experience. It should enable us to live life on our terms, getting things done and maximising precious time. We see the opportunity to offer a premium experience.”

For the latest news, visit internationalfleetworld.com

Daimler developing multi-marque car sharing solution D

aimler is launching technology that could underpin a multi‐ marque car sharing solution for fleets, powered by its Connect Business telematics system.

Already live in the brand’s home market ahead of an international roll‐out, Connect Business – which operates as a standalone organisa‐ tion under the Daimler portfolio – builds on the Mercedes Me app, which launched in the C‐Class and S‐Class back in 2014, but enables fleet operators and leasing companies to take advantage of data from the car, according to Robert Morris, national fleet operations manager, Mercedes‐Benz Cars UK. This will mean it can offer all the usual telematics functions, includ‐ ing live maintenance, driver behaviour, mileage logs and route plan‐ ning information, as well as enabling fleets to send messages direct to the car’s dashboard screen, controlled via a web‐based back office. The service will also be able to output raw data, which leasing and fleet management companies can utilise.

Connect Business uses built‐in technology from Daimler products, or an adaptor for other vehicles – customers will be able to choose from three levels of connectivity, depending on the functions needed, Morris said.

At the most connected end of that spectrum, the system will be able to underpin corporate car sharing for fleets, and white‐label rental operations for the carmaker’s partners in that sector. The car sharing solution will be keyless, unlike the consumer‐focused Car2Go‐derived technology used in the new A‐Class, Morris said.

In turn it means Connect Business can offer a similar proposition to BMW Group’s AlphaCity service, which also provides the vehicles as well as the technology and was recently expanded to include other marques, including vans.

in brief Volkswagen and Ford to partner on vans Volkswagen and Ford are in talks over several joint projects that could extend capabilities and strengthen competi‐ tiveness – including developing a range of commercial vehicles together to “better serve the evolving needs of customers”. However, they stressed that any alliance would not involve equity arrangements, including cross ownership stakes.

ALD joins MaaS Global mobility service Mobility operator Maas Global has signed up ALD Automotive to provide car sharing for its ‘Whim’ Mobility as a Service app in Helsinki, Finland.

Selected Whim users now have access to a dedicated pool of ALD Automotive car sharing vehicles in Helsinki, giving them the “bene its of using a car with‐ out any of the commitments that the car ownership brings”.

Big data for smart cities Telematics giant, Geotab, has developed a tool leveraging big data to help plan smart cities. The data.geotab.com tool can aggregate information from seatbelt usage, to potholes and parking hotspots.

Stuttgart bans diesels Stuttgart, the home of Mercedes and Porsche, is to introduce a ban on some diesel vehicles from 1 January 2019 in the city centre. The ban will initially apply to Euro 4 diesels and could be expanded to cover Euro 5 if NOx levels do not fall to legal limits.

Chevin launches global fleet consultancy Fleet management software specialist Chevin has launched a new global consultancy service intended to help leets maximise the use of data and identify best practices by coaching them to focus on speci ic data sets.

internationalfleetworld.com / 09

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environmental news

BP steps up electric plans with Chargemaster acquisition

B

P has acquired the UK’s largest charging point company, Charge‐ master, with plans to install a network of ultra‐fast chargers at its forecourts across the country.

Based in Luton, the company adds a wealth of electric vehicle expertise to the BP portfolio, including the facilities to design and build domestic and public charging points, relationships

with multiple vehicle manufacturers, and the 6,500‐unit Polar charging network. Chargemaster has grown rapidly in recent years, including taking over many of the former Government‐ backed Plugged‐in Places schemes.

BP, meanwhile, acquired US‐based FreeWire Technologies in January, aimed at deploying its portable rapid chargers at forecourts across Europe,

and it invested €17.2m in StoreDot in May, which is developing car batteries which can charge as quickly as filling a tank with fuel. It is also working with the Renault‐Nissan‐Mitsubishi alliance, to develop future mobility solutions.

BP Chargemaster’s priority will be extending that network to the fuel supplier’s 1,200 UK forecourts, with the first rapid chargers set to be installed within 12 months. The network will include the company’s Ultracharger 150kW charging units capable of adding 100 miles of range in 10 minutes – three times faster than most of the UK’s existing rapid charge network.

Tufan Erginbilgic, chief executive of BP Downstream, commented: “Combining BP’s and Chargemaster’s complemen‐ tary expertise, experience and assets is an important step towards offering fast and ultra‐fast charging at BP sites across the UK and to BP becoming the leading provider of energy to low carbon vehi‐ cles, on the road or at home.”

The BP Chargemaster acquisition closely follows similar moves by Shell, which added Dutch charging company NewMotion and British electricity supplier First Utility to its portfolio last year, as its first rapid charging points went live on UK forecourts and a hydrogen filling station was introduced on the M40 motorway.

UK sets out plans for carbon-free roads T

he UK Government has set out its long‐awaited ‘Road to Zero’ strategy to decarbonise the country’s road network, including plans for ultra‐low emission vehicles to be over half of new car sales by 2030 as the choice of new models widens.

Delayed from its original publication date in March, the document offers some clarity following last summer’s Clean Air Strategy, which had set out an ambition to ‘end the sale of conventional gasoline and diesel cars and vans by 2040’ but did not stipulate whether this included ‘mild hybrid’ or full hybrid technology.

The strategy seems to suggest a reliance on market demand rather than regulatory push. Instead, the Government expects

12 / internationalfleetworld.com

most cars to be ultra‐low emission vehicles – defined as emit‐ ting less than 50g/km CO2 – by 2040. It also predicts that these will accounting for 50‐70% of new car sales and 40% of vans by 2030. It does not move the 2040 deadline forward, despite calls from cities to do so, nor does it rule out selling non‐ rechargeable hybrids after that point.

To improve uptake, the Government will invest in a ‘massive roll‐out’ of infrastructure and set up a taskforce with the motoring and insurance industry to promote the use of vehicle telematics. Measures are also being put in place to equip homes and offices with charging points, and an extension of purchase incentives until at least 2020.

For the latest EV news, visit evfleetworld.com

in brief

Arval to help French fleets switch to plug-ins

A

rval has debuted a new electric vehicle offer in France, aiming to support the 50% of French fleets who it found were looking to deploy plug‐ins within the next three years.

The service is consultative; fleets are asked to outline their plans and commit‐ ments, and Arval will advise on the most suitable vehicles to meet their needs.

This includes utilising a partnership with Shell’s charging subsidiary, NewMo‐ tion, which offers access to 70,000 charging stations in 25 countries either via a pre‐payable card or a smartphone app, as well as home and workplace chargers to help drivers move to plug‐in vehicles.

The Arval offer also includes the option to rent a conventional gasoline or diesel car, to cover trips where an electric vehicle doesn’t fit their drivers’ needs, as well as sharing vehicles under the Arval AutoPartage car sharing scheme.

Drivers can also opt to test vehicles for three to six months, and return it without a penalty if they discover it is unsuitable for them.

Hyundai’s hydrogen van due in 2020

Volkswagen EV sharing due from 2019 Volkswagen is rolling out a suite of vehicle‐on‐demand services including car sharing, using electric vehicles. Comple‐ menting ride‐hailing and pool car services under the Group’s Moia brand, these will go live on the WE customer platform in Germany next year, before an interna‐ tional launch in 2020 across Europe, North America and Asia.

LeasePlan and Allego to simplify EV charging LeasePlan has partnered with Allego to offer an all‐in‐one home and workplace charging solution, installing units at both locations and handling ongoing mainte‐ nance and management. Drivers will get a charge card for public infrastructure, and access to online billing, monitoring and analytics. The scheme is launching in eight European markets.

UK-first lamp post chargers go live

H

in numbers

yundai Motor Group is aiming to launch hydrogen fuel cell electric light vans and pickups within two years, targeting cost‐parity with diesel from 2025.

Ki‐Sang Lee, senior vice president of the company’s Eco‐Technology Development Center, said commercial vehicles could be an even larger market for fuel cells than passenger cars, due to the way they are used.

Although focused on heavy vehicles at the moment – testing is underway on buses in South Korea – the Nexo fuel cell SUV could provide technology which would bring long ranges and short refuelling times for lighter‐duty electric commercial vehicles, he added.

“We have already started with that application, and in our domestic market we will launch it in around 2020. That’s vans or pickups in the 1.5‐ tonne range. We can easily expand that to other countries,” he explained.

“The next step, to 2025, is we want to reduce our fuel cell stack system on‐ costs so they are comparable with current diesel technology.”

325

The UK’s irst charging points integrated into lamp posts are now live, offering a solution for drivers without off‐street parking. Installed in Marlow, west of London, they use the post’s power supply and to cut installation cost, offer an output of up to 7.7kWh, and are activated via a smartphone app.

Hyundai developing Santa Fe PHEV Hyundai is to add a plug‐in hybrid drive‐ train to the Santa Fe SUV, expected in 2020.

The plug‐in will be positioned alongside ‘mild hybrid’ and full hybrid drivetrains and is likely to offer an electric range of around 50km. Expect this to be paired with a four‐cylinder gasoline engine and eight‐ speed automatic transmission.

Electric Volkswagen e-Golfs joining the Zipcar shared fleet in London this summer.

Source: ACEA

Source: Zipcar

20x

Increase in charging points needed across the EU by 2025, to achieve Commission CO2 targets.

internationalfleetworld.com / 13

business news

Arval develops ‘SMaRT’ approach to going greener

A

rval has developed a new five‐step methodology to help European fleets transition towards cleaner, greener vehicles.

Dubbed SMaRT – Sustainable Mobility and Responsibility Targets – the new approach builds on latest research by Arval’s Corporate Vehicle Observatory research unit that finds 59% of companies prioritise CO2 emissions in their car policies – rising to 75% of large fleets.

The approach allows clients to define their future mobility and fleet strategy ambitions, followed by current fleet analysis then looking at the best match with a powertrain type from an energy perspective, reviewing alternative mobility options and finally measuring progress towards initial ambitions.

Arval said it’s the first lessor in the industry to “proactively offer such a structured and pragmatic approach, whilst ensuring that the implementa‐ tion is duly supported with the current processes and existing digital tools”.

Sixt creates new sales division for global

S

ixt has launched a new sales division that will be able to advise global leets on the irm’s mobility services.

As revealed in the first quarter of this year, Sixt has bundled all of the group’s products – including car rental, ride railing, leasing, fleet management and supplementary services – into a one‐stop shop with the aim of effectively reducing compa‐ nies’ mobility costs and providing flexible and cross‐border solutions for global players.

Now, the business has reorganised its global account management team to advise major customers on the Sixt Group’s services. Customers have a central contact at their disposal who creates individually tailored solutions for car rental, leasing, chauffeur service, ride hailing and mobility manage‐ ment, backed up by comprehensive reporting.

The new Global Account Management team is being headed up by senior director Michael Poglitsch, who has held several positions for Sixt since 2000,

fleetinquotes a few soundbites from a month in fleet

We are already seeing CO2 emissions cut by around 20% at the engine end. Even before you start looking at post-engine technology like Bosch recently announced, we are able to produce a petrol engine with the torque and economy of a diesel engine but without the NOx and other diesel emission particulates.

“

”

Danny Chapchal, CEO, Camcon Auto

“

Volvo Cars is becoming more than just a car company.

We recognise that urban consumers are rethinking traditional car ownership. M is part of our answer. We are evolving to become a direct-to-consumer services provider under our new mission ‘Freedom to Move’

”

LeasePlan lends weight to ZEV initiative

Håkan Samuelsson, Volvo Cars CEO

L

Our ambition is to be at the forefront of changes in mobility and partnering up with MaaS Global will enable us to benefit from the company’s experience and expertise in the field of Mobility as a Service while broadening our presence in the consumer market.

easePlan has joined cities, businesses and NGOs in founding a new global initiative to massively accelerate the adoption of electric and other zero emission vehicles around the world.

The launch of the Zero Emission Vehicle Challenge has been led by non‐profit organisation The Climate Group – the brains behind last year’s EV100 initiative calling on multinationals to commit to EVs – and the C40 Cities climate leader‐ ship group, and is being supported by the State of California, New York City, EDF Energy and Unilever, as well as the cities of Paris, Milan, Copenhagen, Pittsburgh, Mexico City, and the regions of Australian Capital Territory and Navarra.

The programme is intended to send a clear signal to the automotive industry of the increasing demand for zero emission vehicles and to urge carmakers to stop making combustion engine vehicles in the long term – in line with moves already underway in various cities and countries to ban such vehicles in the future – while committing to a zero emission vehicle percentage of sales by 2025.

Partners will also develop and advocate policies and solutions intended to spark mass adoption of EVs.

14 / internationalfleetworld.com

“

John Saffrett, COO at ALD

”

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FEATURE Fleet management

BUSINESS MOBILITY MORE THAN A LEASE CAR

D

ue to digitalisation, urbanisa‐ tion and new ways of work‐ ing, business mobility is on a path of disruptive change. From established OEMs to innovative start‐ups, the business mobility land‐ scape is becoming more diverse, competitive and interconnected.

Elaborating these trends, Alphabet International and Capgemini Consulting have conducted a joint innovation study, which was conducted mainly in Germany and the Netherlands, providing insights of a sample of more than 800 drivers of corporate or private lease cars and thus the end customers of business mobility. The sample can be classi ied as ‘user‐choosers’, which are described as digital‐savvy, lexibility‐ oriented and brand‐loyal to mirror their social position.

The survey summarises trends in three business mobility areas: digi‐ tal/connected services within corporate vehicles, flexible mobility solutions and (fleet) data security.

In the following both mobility providers and fleet managers received a profound overview of these findings.

16 / internationalfleetworld.com

Company car digital basics The results highlight a discrepancy between the interest in digital and connected services and the willingness to pay for them. As an example, on aver‐ age 79% of user‐choosers are interested in additional in‐car services (94% in navigation services, 63% in information services like weather or news, 79% in

repair services) as part of their company vehicle package. Nevertheless, only an average of 14% is willing to spend extra personal budget on these services. On the other side, there is a higher willing‐ ness to pay (20%) for connected communication and entertainment services like smartphone/music integra‐ tion, while readiness to spend extra

Digital and connected lease car services – Interest and willingness to pay extra 94%

Navigation 15% 63%

Information Services 15%

79%

Repair Service 11%

88%

Communication 17% 72% Entertainment

20% 31%

Smart Home/ Office

10%

Interest Willingness to pay extra

Authors Kevin Loeffelbein – senior manager future mobility, Capgemini Consulting

Flexibility is key Besides payment, the survey shows that the demand for lexibility is a major driver even with regards to new business models. Monthly mobility budgets for instance, which can be used for inter‐ modal transportation, are becoming increasingly more relevant for mobility providers, as they support an indepen‐ dent lifestyle. While in Germany 47% of user‐choosers are interested in a mobil‐ ity budget (depending on location), 73% of their Dutch counterparts are wanting to create their own mobility composition by a given monthly budget, partly due to the decentralised structure and commut‐ ing behaviour in the Netherlands. At the same time and across all surveyed coun‐ tries, only one out of 10 respondents was willing to completely give up their private car use, showing that mobility budgets seem to be at least a comple‐ mentary product alongside car‐based solutions. Herewith, there is also a high demand for lexible vehicle solutions like early car change/ return (71%) or full‐ service leasing contracts including fuel, maintenance or other add‐ons (81%).

Mobility Budget

money on of ice or smart home applica‐ tions within the mobility service still lingers at around 10%.

Although there is a tendency of younger user‐choosers from 20‐40 years having a higher willingness to pay extra for connected services, this target group states that they are expecting these features as a commodity offer from their mobility providers. As a further chal‐ lenge, corporate user‐choosers note that their company policies often restrict the use of modern digital services within the company car.

To pay for these services, user‐ choosers prefer pay‐per‐use (40%) or subscriptions added to their monthly leasing rate (38%) instead of single payments or integration into their exist‐ ing leasing contract (25%). This repre‐ sents the mentioned attitude of user‐choosers towards lexible solutions.

“Corporate user-choosers

note that their company policies often restrict the use of modern digital services within the company car.”

Manuel Schneider – business strategy manager, Alphabet International

interest in leasing electric vehicles (63%), they express the well‐known barriers of lacking charging infrastruc‐ ture, range and low subsidies. Shared corporate EVs on the other hand could face these challenges with companies taking the risk and providing incentives to their employees.

Shared data only with incentives With regard to the mentioned services, data privacy is a controversial topic. With 64%, the majority of the survey’s respon‐ dents are not willing or undecided to share personal or vehicle data, mostly because of security or transparency issues towards providers or their own leet managers. However, around 40% would share these data when “the right" incentives like reduced leasing rates or active contribution to improvement programmes are given.

Of those that are willing to share their data, 60% would share vehicle‐related data, while only one out of five drivers would share personal data like driving behaviour. To increase the latter, fleet managers are already introducing incentive programmes to reward their employees for exemplary driving and at the same time to contribute to sustain‐ able solutions.

Early Car Change/Return

Full Service Leasing

36%

Willing to share data

Despite the fact that ownership of cars will still matter, further outcomes of the survey demonstrate a shifting composition of mobility usage in the future. Particularly in urban areas, user‐choosers expect a more inte‐ grated, seamless and hassle‐free jour‐ ney from A to B. With a share of 6% today, respondents state that their car sharing usage is expected to increase up to 11% until 2023 with a continuous upward trend.

Mobility providers are anticipating this trend both in the B2B and the B2C sector, leveraging their car sharing and leet management capabilities more and more. This could also be a channel to push electric vehicles (EVs), which are still far below expectations regarding their share within corporate leets of about 2% at the end of 2017. Although user‐choosers generally show a high

60%

Vehicle data

Flexible business mobility solutions – Interest

64%

Unwilling to share data

20%

Personal data

20% Both

Data security – willingness to share data

Be it digital or connected services, new on‐demand vehicle business models or data analytics and smart leasing contracts: the market of business mobil‐ ity is evolving, together with infrastruc‐ ture developments in a broader sense. It will be important for mobility providers and leet managers to actually listen to their end customers, the user‐choosers, as they will shape both future demand and corresponding services.

internationalfleetworld.com / 17

Tough with the smooth

SPOTLIGHT Jeep Wrangler

The plethora of modern interpretations of the SUV hasn’t stopped the original models of cars fitting that description doing what they do best. The latest example, reports John Challen, is the Jeep Wrangler.

Engine duo debut The Wrangler gets two new engines – the 2.2-litre MultiJet II diesel and a 2.0-litre inline four-cylinder gasoline unit. The diesel delivers 200hp at 3,500rpm and maximum torque of 450Nm at 2,000rpm and features a new emissions management system that helps to boost engine responsiveness. Choosing the 2.0-litre gasoline engine gives drivers 272hp and 400Nm at 3,000rpm. All Wranglers will be equipped with an eight-speed auto ’box that claims to optimise engine output and power delivery both on- and off-road.

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Tech message Keen to show that it can move the with time – and trends – Jeep has equipped the new Wrangler with a host of technology to aid safety, communications and connectivity. In comes blind-spot monitoring, ‘rear cross path detection’, front and rear park assist, reversing camera and electronic roll mitigation technology. Touchscreen technology features in the cabin, in the form of a 7.0-inch or 8.4-inch screen that is compatible with both Android Auto and Apple’s CarPlay. The larger screen features the largest and latest Uconnect screen, which is faster and offers higher-resolution graphics.

What we think...

While it might not be a vehicle that shouts ‘fleet’, there will always be a place for the Wrangler and its peers in the sector. Having begun life as an out and out off-roader, Wrangler now has an impressive amount of advanced technology onboard to help broaden the appeal of the car. Persisting with something so different from the mainstream should be commended. JC

Off-road appearance; on-road persona Some Wrangler customers will obviously take their new addition away from the smooth tarmac of highways and byways, but the fact remains that many off-roaders don’t actually go ‘off-road’. As such, the new Jeep has “a modern design that retains all the authentic styling cues of the iconic Wrangler” but also adds a big dose of creature comforts inside. The manufacturer claims it offers “excellent levels of comfort and superior driving dynamics”, which is what most drivers are now used to, regardless of the vehicle.

FLEET FACT There are more than 180 accessories available to buyers to increase Wrangler customisation possibilities. internationalfleetworld.com / 19

FEATURE Risk management

Taking care of business Risk management is an integral part of fleet operations but can be a challenge for companies operating across borders.

Bart Becker, COO of Arval, explains to Curtis Hutchinson how businesses are addressing this issue.

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C

ompanies operating across international borders are continually looking to achieve the best possible economies of scale through centralised management. This approach can range from the travel and accom‐ modation for business trips to the procurement of goods and materials, to IT systems. Savings achieved in such areas can go straight to the bottom line, allowing more funds for investment and growth.

Risk management should be high on the agenda for all businesses running company cars, with legislation ensuring that processes and procedures are in place with clear audit trails. The challenge facing businesses oper‐ ating across international borders is how these rules should be applied across the busi‐ ness to protect staff equally while adhering to local regulations.

Arval has developed a top‐down approach to risk management but advocates buy‐in from employees to make policies work in day to day operations. Last year, the company managed 1.1 million vehicles in 29 countries, mostly in Europe, but also across Latin America, North Africa and Asia, giving it a valuable perspective on how risk should be managed on a truly global basis.

Bart Beckers, Arval Group’s chief operating officer, is passionate about the subject and the nature of his job leads him to take a global view while drawing on his experience as a previous head of UK operations and as the former managing director of LeasePlan in France and Belgium.

“It always comes down to finding the right balance between what you can do at international level and the specifics you always have to take into account when you focus in on a particular country.”

How do you advise fleets to address risk management when they operate across different international regions?

You always have to look at the local speci ics.

There’s a lot we can do for clients at an inter‐ national level, starting with policies and strate‐ gies, but it always come down to inding the right balance between what you can do at inter‐ national level and the speci ics you always have to take into account when you focus in on a particular country.

In the UK, for example, Duty of Care rules are very important for corporates but that is not necessarily the same as other countries in Europe and globally. All the things you have to do in the UK to protect your staff, and to be seen to take these things very seriously, there is no comparison whatsoever elsewhere. Even within Europe you see quite a difference between countries, but it always comes down to having enough generic best practices that you can use as a check list with your clients to go through that you know exists in different countries and there’s always things you can bring into discussion.

If a company is based in the UK should it use its Duty of Care procedures and processes as a blueprint globally?

Yes. Absolutely. Even if you don’t have to do this for local legislation purposes I still think that what we see in the UK, which are demand‐ ing rules, is something corporates should observe if they take risk management seri‐ ously; by not doing so might mean you are not taking enough care of your employees as part of your management policy.

Of course, you cannot impose this on clients, and we never do, but we would recommend living by those Duty of Care principles and then adapting them to the local situation. With countries such as France and Germany, for instance, this process is sometimes tricky to put in place where you have to go through a very complicated process in terms of works council consultations. But we would always recommend the client adopts the highest stan‐ dards wherever practically possible and when we talk about high standards very often we refer to the UK as a being the standard bearer for safeguarding employees.

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internationalfleetworld.com / 21

FEATURE Risk management

→

Do centralised risk management policies work, or do they need to be significantly customised to adhere to local laws?

Generic solutions are always the same but local legislation requires you to really go into the ine details. You can ind similar, if not identical, training courses for drivers. Also driver licence checking exists in most European countries but the way to carry it out can differ from one coun‐ try to another, so you will always execute on issues like that locally. It’s a matter of the right combination between international strategy policy de initions but always making sure that you have checked the local requirements as well.

How has the introduction of GDPR impacted the way risk management is implemented across territories?

GDPR is not new in itself but it has forced all of us in the industry to become even more stricter in terms of how to run procedures and processes. It does have an impact, but the underlying rules have always been there; GDPR reinforces them. People talk about ines but in all honesty these rules have existed for a number of years, so it has alerted most of us in the industry that you should take this topic very seriously.

If you take your clients seriously then you must always advise them to include GDPR in their car policies because of course they will be asked to deliver information and abide by the rules.

Using telematics as an example, as it is being used more and more by leets, when it is used to monitor a vehicle, then it implicitly also monitors the behaviour of its driver. Staff need to be aware that these devices are on board and should be given the opportunity to opt out or to decide that some parts of their journeys should be treated as private and should certainly not be used for other purposes.

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Can telematics be used to nurture a culture of safety amongst drivers?

These devices can be used as a way to improve driving behaviour in conjunction with appro‐ priate driver training. This is the type of generic risk management solution that we are offering more and more of. With staff consent it can be used to offer tailor‐made solutions, in terms of driver coaching, for individual people who you know, through telematics, need it.

Is a successful risk management policy all about getting buy-in from employees?

Yes. It’s important to always explain to the staff that it is in their own interest because they are the irst ones to be hurt if there is an accident.

The role of driver training and car choice...

ALD Automotive manages over 1.54 million vehicles across 43 countries.

Thierry Faure, head of sales for interna‐ tional key accounts, believes driver train‐ ing plays a fundamental role in delivering risk management on a global basis and more companies should embrace it.

“There is a lack of driver training programmes. In most cases, leets fall under procurement and have an approach very much driven by pricing; when we propose a driver training programme, our procurement contacts see it more as an optional cost rather than an investment with a return,” says Faure.

“Our advice to leet managers is to assess the cost of collisions, including time lost from work. Generally, they will come to the realisation that training programmes result in up to a 30% reduc‐ tion in collisions.

“It is also an opportunity to show that a company is an employer of choice who cares for the safety of its employees while they’re at work, as well as when they are travelling on their time off. The cherry on the cake is that training programmes can also help reduce fuel expenses.”

Faure also believes leets can bene it from more centralised model choice where cars are selected according to those with the best safety features and advocates models with assisted driving features to further increase the safety of drivers and their occupants.

ANALYSIS Residual values

Remarketing notes No stranger to the SUV market, Volkswagen has continued to expand its number of models in the segment over recent years. The latest contender – entering the competitive small SUV sector – is the T-Roc. By Dieter Fess.

What the manufacturer said at launch:

About the residual value grades

The new crossover from Volkswagen brings fresh impetus to the compact SUV class. T‐Roc offers maximum personali‐ sation, innovative digitalisation, perfect connectivity, lead‐ ing‐edge driver assistance systems, dynamic engines and above all modern, expressive design. A car that is just as much at home in the city as it is on rough terrain.

What BF Forecasts says: The Volkswagen brand is strong – even despite the huge diesel scandal. Now, with the new T‐Roc, Volkswagen is entering the popular segment of small SUVs. Considering the above, it should not surprise that the used car prices of the T‐Roc will be on a solid level. However, the residual value performance of the low‐ priced alternative Dacia Duster or premium competitor Mini Countryman cannot be beaten.

Brand: Volkswagen

Model: T-Roc

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

About BF Forecasts BF Forecasts is an independent supplier of accurate and transpar‐ ent residual value forecasts as well as used car value data for the past and current used car market. BF Forecasts has been providing such data to leasing companies (both captive and non‐captive), OEMs, NSCs, major company fleets, as well as to insurance and investment companies inside and outside of Europe since 1998.

Available since: 2017 RESIDUAL VALUE GRADES

Prices from: (incl. VAT)

Engines:

France

Germany

Spain

€21,990

€20,390

€22,040

Gasoline

Diesel

115hp

150hp

150hp 190hp Text and data: bähr & fees forecasts GmbH ( Ø- Values; Trade; 36 Months; 45TKM;05-2018)

10 9 8 7 6 5 4 3 2 1 France

Germany

Spain

internationalfleetworld.com / 23

FLEET FOCUS Portugal

Diesels to remain a plus for Portugal Autorola Portugal country manager Miguel Vassalo looks at how data science is a powerful tool to make smarter business decisions in a country where diesel sales remain very strong.

24 / internationalfleetworld.com

P

ortugal is one of the few countries in Europe now where diesel remains dominant and it looks as though it will not change any time soon. Diesel cars comprised 61% of the 2017 new car market (a fall of just 3%) with gasoline sitting at 34% and plug‐in hybrids and EVs doubling sales to 4,200 cars (1.9%).

New car sales in Portugal continue to grow and are slowly getting back to the pre‐2012 crash levels. Sales rose by a healthy 7.5% in 2017 to 260,654 units, while January to May 2018 the market rose to 123,428, an increase of 5.3% compared with the same period in 2017.

The fall in new car sales experienced in 2012 to 111,299 units is still having a major impact on the supply of used cars coming into the market.

Around 68,000 used cars were imported (around one quarter of new car sales) in 2017 to help satisfy consumer demand. This has been the only way the industry has been able to balance the supply with demand and is likely to continue until such time the industry’s new car market shows strong and consistent levels of annual growth.

MODELS IN DEMAND Diesel Renaults and Peugeots are the most popular and typi‐ cally cost between €8‐10,000. Typically the Renault Mégane, Peugeot 208, 308 and 508 are all in high demand from inde‐ pendent dealers. Many of these used cars are imported via Autorola’s online remarketing portal with cars being purchased predominantly from France, Germany, Belgium and Holland. Within a few days of buying online, the used cars can be on a dealer’s forecourt ready for sale.

Portugal has a strong passion for French cars, with the Renault Clio and Peugeot 208 the year’s best‐selling models. This duo is closely followed by the Nissan Qashqai, while Mercedes is the most popular premium brand.

One key spoiler in the new car market could be the new WLTP regulations set to go live on 1 September. Introduced to measure fuel consumption and CO2 emissions from passenger cars and vans on a more real‐world basis, WLTP affects the global automotive sector and will put all OEMs on the same band width.

The Portuguese government is yet to announce the iscal impact of the new legislation. With new car taxes already very high in Portugal it could be extremely harmful for some brands. The government could choose to introduce a new transitional legal framework to control the taxes' impact based on CO2, which would help support new car sales.

Whichever route they take, it leaves the market in a period of uncertainty, which is not a positive place to be for consumers and businesses looking to buy new cars.

A demanding low‐emission zone has yet to be launched in any Portuguese city and diesel remains the most popu‐ lar fuel. However, low‐emission hybrids and zero‐emis‐ sion cars, such as the popular Nissan LEAF, will continue to grow while the Portuguese government incentives are in place.

THE SHIFT TO DIGITAL Autorola has been at the heart of the used car industry for many years and been a key contributor to the digital transformation of the motor industry. The country contin‐ ues to grow its reputation as having a high technology

internationalfleetworld.com / 25

→

FLEET FOCUS Portugal

Picture credit: islavicek/Shutterstock.com

and used car vendors from dealers and leas‐ → infrastructure ing companies, to banks and rental companies have embraced online selling.

Over the past ive to six years, some 50% of business cars have been sold online at an average price of €10‐12,000. Typi‐ cally, the used cars are between three and four years of age with around 110,000km on the clock. Companies such as leas‐ ing, rentals and dealer groups have had great results online across the Autorola group and, in Portugal, hold regular weekly online sales to dispose of their cars.

Trade buyers have been switched onto buying used cars online for many years. Many use their smartphones to bid online while the smaller independents market many of their used cars via social media. The technology revolution is alive

26 / internationalfleetworld.com

and well across all industries in Portugal, which explains the country’s acceptance to adopt the INDICATA real‐time used vehicle management portal.

Agreements are already in place with Renault, Toyota, Kia and the VW Group as dealer groups value the real‐time insights INDICATA provides to ensure they run their used vehi‐ cle businesses as ef iciently as possible.

Used cars are vital to help drive pro itability within dealer groups, especially when they are in such high demand across the country.

Having access to detailed insights about their local used market and that of their close rivals has been welcomed by deal‐ ers. OEMs are also using it to create a country‐wide picture of their entire used car stock, in particular average stocking times.

Source: FocusEconomics

Portugal economics A

detailed breakdown of GDP con irmed that the econ‐ omy shifted to a lower gear in the irst quarter of the year due to a fall in exports. Available data for the outset of the second quarter offered a mixed picture: indus‐ trial production accelerated markedly in April, while retail sales lost considerable speed. Prospects appeared brighter in May, with consumer con idence and business sentiment climb‐ ing to higher ground. Moody’s recently highlighted that, while the country’s fragile banking system has strengthened on the substantial decline of non‐performing loans (NPLs), banks’ holdings of NPLs are still very high compared to that of Euro‐ zone peers. The continuation of the economic recovery and increased regulatory pressure on banks should help to further cut NPL ratios.

Economic growth is set to remain healthy this year, supported by a thriving tourism sector and a surge in foreign direct investment. The in lux of investors is expected to keep the housing boom a loat. Private consumption growth should remain resilient, underpinned by strong employment genera‐ tion that should buttress wages and keep labour market dynamics improving. Growth is expected to moderate from last year, however, due to an anticipated slowdown in domestic demand. FocusEconomics panellists expect the economy to grow 2.2% in 2018, which is unchanged from last month’s forecast, and 1.9% in 2019.

According to the recent survey of consumer sentiment

released by the National Statistics Institute (INE) on 28 June, consumer con idence fell to a six‐month low of 1.3 points in April, down from 4.1 points in May. It moved closer to the crit‐ ical zero‐point threshold that separates optimism from pessimism; the indicator has been in optimistic territory for more than one year now. The downturn in sentiment re lected less upbeat readings in all components underpinning the headline. This included a less optimistic outlook on the general economic situation in the country over the next 12 months, along with reduced optimism regarding households’ inancial situation over the same time span. In addition, households were more pessimistic about their savings ability over the next 12 months. On the other hand, consumers held a more posi‐ tive view over the unemployment situation in the next year.

Meanwhile, the overall economic climate indicator inched up to 2.4 points in June from 2.3 points in May. Business sentiment in the manufacturing sector deteriorated for the sixth month running owing to reduced demand. The outlook in the trade sector was also slightly less optimistic in June due to less upbeat sentiment on wholesale and retail trade.

Conversely, sentiment in the construction and public works sector was less pessimistic as the outlook on both the current order books and employment over the next three months were more upbeat. In addition, optimism was up in the services sector, thanks to an improved business situation and demand over the next three months.

internationalfleetworld.com / 27

PROFILE Citroën

Vive la Différence Prestige, quirky, innovative, cheap, luxurious – the French manufacturer has been called every name in the book and produced some of the most recognisable vehicles ever created. International Fleet World delves into the oftstrange world of Citroën…

28 / internationalfleetworld.com

Manufacturer Citroën Total key region sales FY2017 770,012 (cars only) – 1,055,676 (cars and LCVs) Headquarters Rueil-Malmaison, France Global market share 2016 0.97% (approx. cars only) No. of models 17

view

from the top

Inspired by desire

I

n 1925, Andre Citroën saw the opportunity to emblazon the side of the Eiffel Tower with his name in lights – just six years after starting the Citroën brand.

A huge publicity stunt, perhaps, but the mere fact it was even allowed on what is now considered a national monument demonstrates just how in luential, and French, the brand is. And there’s little need to mention cars like the Traction that pioneered front‐wheel drive, the DS that’s frequently credited as being the most advanced car built generations ahead of its time, or the SM that captured imagi‐ nations with its Maserati V6 heart. And then there was the antithesis of those cars; the 2CV, which almost single‐handedly enabled French farming to modernise.

Coming up to the company’s centenary year in 2019, today, Citroën’s unmatched history in changing the game is being put to good use, as the company undergoes its latest transition to SUVs and electri ied power. However, once upon a time the company famously ignored its past, stubbornly looking only towards the future.

Today’s Citroën is a very different brand and even its latest advertising campaign focuses on its rich and varied heritage vehicles.

With 10,000 sales and aftersales points in nearly 80 countries, Citroën sold more than one million vehicles in 2017. The year marked Citroën’s highest volume of sales in Europe in six years, with registration volumes growing at twice the Euro‐ pean market rate (cars + LCV). In part, this was thanks to Citroën’s new SUV offen‐ sive; with the C5 Aircross, launched in September in China, and in Europe with the C3 Aircross, launched in October. Each model is planned for global rollout this year and, by July 2018, the C3 Aircross had accumulated an impressive 90,000 customers in Europe.

Unveiled late 2016 and launched 2017, the new C3 became the brand’s best‐ seller, accumulating more than 300,000 sales in fewer than 18 months since launch, by March 2018.

As for the C5 Aircross, which has already sold more than 40,000 units in China, the model will be launched in Europe late 2018 and represents the brand’s lagship model, equipped with Progressive Hydraulic Cushion suspension – a hybrid suspen‐ sion design with notions of the brand’s infamous hydraulic suspension – and will also serve as the platform for Citroën’s irst plug‐in hybrid, due at the end of 2019.

Joining the C5 Aircross in China is the C4 Aircross, which is built on the European C3 Aircross, but with added 12cm length for the Chinese market. It will be built locally by Dongfeng Citroën in Wuhan and launched in the second half of the year and was irst displayed at the Beijing Motor Show in April.

→

Citroën Global sales, by territory Territory

FY2016

FY2017

% change

Europe

762,576

785,662

+3.0

58,662

57,273

-2.4

250,297

131,821

-47.3

Latin America

60,196

68,526

+13.8

Other markets

9,210

12,394

+34.6

1,140,941

1,055,676

-7.47

Middle East & Africa China & South East Asia

Total

Tony Dittli, Group PSA director international B2B operations, VP How has Citroën performed in the past year? For the period 2018 YTD, Citroën B2B sales are up 7% in the key G11 European countries (passen‐ ger cars and LCVs combined). Passen‐ ger cars are up 4% and LCVs are 9% ahead of the same period last year.

What have been the best-selling cars/vans on fleet? The best selling cars are currently the C3 and C4 Space‐ Tourer/Grand C4 SpaceTourer range.

For LCV it’s the current Berlingo (New Berlingo still to be launched) and Jumper (known as Relay in the UK).

What is the outlook for the coming year? The outlook is very encourag‐ ing. New C4 Cactus and New C3 Aircross are establishing themselves successfully in the B2B market across Europe and we will soon have New C5 Aircross, which we have high ambitions for in the European B2B marketplace.

With Citroën targeting China and other markets, will we start to see more market-specific cars? Citroën’s ‘Core Model Strategy’ means each new core model is to be industrialised and marketed worldwide, but with slight local adaptations to meet local expec‐ tations. For example, New C5 Aircross SUV is produced in China and Europe.

The objective is to reduce the number of body shapes and to cover the marketplace more effectively, and therefore to sell each body shape in larger numbers in the interests of ef i‐ ciency and pro itability.

Electrification is on the tip of everyone's tongues. How does Citroën plan to make an impact here? We have already announced that New C5 Aircross SUV will be the irst Citroën with a plug‐in hybrid petrol‐electric powertrain at the end of 2019.

Citroën’s target is to have 80% of the range with an electri ied product offering by 2023 (either 100% elec‐ tric or PHEV) and 100% of the range with an electri ied offering by 2025.

internationalfleetworld.com / 29

Manufacturing plant locations 4 5 6 7 8

18

4-8 9 11-13

1514 16-17

21

22 20 19

9 10

11 12

13

20

3

14

21 1 2 3

South America Argentina (Buenos Aires): Berlingo First Argentina (Villa Bosch): C4, C4 L Brazil (Porto Real): C3, C3 Picasso

15

19

20

21 22

Asia China (Shenzhen), Chang'an PSA joint venture: DS 5LS and DS 6WR China (Wuhan), Dongfeng Peugeot-Citroën Automobile joint venture: C-Elysee, C3 L, Xsara Picasso, C4 L, C5 Japan (Mizushima). Mitsubishi Motors plant: C-Zero Iran (Kashan): SAIPA Citroen JV: C3, C3xr, C4

16 17

18

Europe France (Mulhouse): DS4, DS7 Crossback France (Poissy): DS3 France (Sochaux): DS5 France (Rennes): C5, C5 Aircross France (Valenciennes) PSA/Fiat joint venture Sevel Nord: Citroën Jumpy/Dispatch Portugal (Mangualde): Berlingo Italy (Val di Sangro), PSA/Fiat joint venture Sevel Sud: Jumper/Relay Spain (Madrid): C4 Cactus Spain (Valladolid): C3 Aircross Spain (Vigo): Berlingo First, Berlingo, C4 Picasso / C4 Grand Picasso, C-Elysee Slovakia (Trnava): C3 Czech Republic (Kolín), Toyota/PSA joint venture: C1 Turkey (Bursa): Nemo Turkey, Karsan plant: Berlingo Russia (Kaluga), PSA/Mitsubishi joint venture : C4, C-Crosser

Furthermore, Citroën’s second largest international region after China – Latin → America represents a major challenge in the brand’s offensive outside Europe.

Electric future Having broken away from the core brand in 2009, DS Automobiles is now an inde‐ pendently operating premium arm of Citroën under the PSA Groupe.

Despite relying on the same platforms as its sister brands, DS bene its from sepa‐ rate manufacturing and engineering stan‐ dards, according to PSA CEO Carlos Tavares. However, sales have consistently fallen since the brands introduction with little more than 50,000 units being sold worldwide in 2017 (from more than 100,000 in 2015). Part of the reason for this is an ageing product line, which is all set to change with the recent introduction of the DS 7 Crossback. In addition, the brand announced at the 2018 FormulaE paris ePrix that from 2025 onwards, all new DS models will be available exclu‐ sively in electri ied versions, either hybrid or electric – starting with the forthcom‐ ing DS 7 Crossback E‐Tense 4x4, and building upon the brand’s exposure from the world stage in electric racing. Yves Bonnefont, DS CEO, said, “Our ambition is very clear: for DS to be among the global leaders in electri ied cars on its market.”

Global DS sales FY2016

FY2017

% change

85,981

52,860

-38.5

30 / internationalfleetworld.com

After recording growth of 13.8% in 2017, Citroën will introduce the new C4 Cactus SUV, which is developed and produced at Porto Real in Brazil.

With a new product offensive, Citroën also decided to drop its long standing product name ‘Picasso’ that has been in use since 1999, changing the C4 Picasso’s name to C4 SpaceTourer.

Having sold more than a million units since its introduction in 2001, leet staple, the C1 is undergoing a refresh this summer, having sold more than 14,000 units in France alone in 2017.

Linda Jackson, chief executive of icer, Citroën, said: “2017 unleashed the momentum driven by Citroën’s new product offensive: it was the irst full year for the new C3, the new Jumpy and the SpaceTourer, but also the year we launched the C3 Aircross SUV in Europe and the C5 Aircross SUV in China. The result was that, in Europe, we achieved our highest level of sales in six years and won back market share in both passenger cars and light commercial vehicles. Excluding China, our worldwide sales rose 7.5%. We have the necessary strengths to sustain and inten‐ sify this sales momentum in 2018, thanks to the global roll‐out of our most recent launches, but also to major upcoming launches.”

In a dif icult economic environment, Citroën sold 131,821 vehicles in 2017 in the China & Southeast Asia region, down on 2016’s 250,297 units sold. However, it is noteworthy that sales for the new C5 and C6 were stable versus 2016, despite weaker demand in this market segment. Sales were up 13.8% in most Latin Amer‐ ican markets, with Chile jumping 47% thanks to the success of the new C3.

Sales also rose sharply in the India Paci ic region, (up 36%) thanks to strong demand for the new C3 and ahead of India market launch in 2020.

The momentum in sales for the Grand C4 Picasso (up 126%), particularly in the B2B segment, also pushed up the brand’s sales, by a strong 33.4% in Eurasia.

Finally, the company’s future plans are cemented as a part of the the larger PSA Groupe’s, with electri ication on the horizon. Citroën were one of the pioneers in this ield, launching the C‐Zero alongside the Peugeot Ion and Mitsubishi i‐Miev in 2009. Since then, the Citroën DS5 (pre‐DS breakaway) was sold with a diesel hybrid that was relatively unique on the market but short‐lived. The C5 Aircross will be the irst plug‐in hybrid for the brand, featuring 300bhp and all‐wheel drive – to be launched in 2019. As for battery electric cars, Citroën has con irmed its next EV will arrive in 2020. Critically, every Citroën on sale will be offered with a form of electri ication by 2025.

CitroĂŤn fleet model range

e-Mehari

C-Zero

C1

C3

Variants: Cabriolet Markets: Europe Fuel: N/A (electric) CO2: 0g/km

Variants: 5dr hatch Markets: Europe Fuel: N/A (electric) CO2: 0g/km

Variants: 3/5dr hatch Markets: Europe, Africa Fuel: 4.1-4.3l/100km CO2: 93-95g/km

Variants: 5dr hatch Markets: Europe, Asia, Africa, South America, Oceania Fuel: 3.2-4.9l/100km CO2: 82-110g/km

C3 Aircross/C4 Aircross

C3-XR

C4 Cactus

Variants: SUV Markets: Europe, Asia, Africa, South America, Oceania Fuel: 3.7-5.6l/100km CO2: 96-126g/km

Variants: SUV Markets: China Fuel: 6.2-6.8l/100km CO2: 145-160g/km

Variants: 5dr hatch Markets: Europe, Africa, South America, Oceania Fuel: 4.0-5.3l/100km CO2: 97-119g/km

C4 L/C4 Lounge

C-Elysee

C4/Grand C4 Spacetourer

Variants: 4dr sedan Markets: Asia, South America Fuel: 5.2-6.0l/100km CO2: 122-140g/km

Variants: 4dr sedan Markets: Europe, Asia, Africa, South America Fuel: 3.8-6.8l/100km CO2: 98-157g/km

Variants: MPV Markets: Europe, Asia, Afria, Oceania Fuel: 3.8-6.4l/100km CO2: 100-149g/km

C5 Aircross

C6

DS 3

DS 4S

Variants: SUV Markets: TBC Fuel: TBC CO2: TBC

Variants: SUV Markets: China Fuel: 6.4-6.6l/100km CO2: 150-155g/km

Variants: 3dr hatch, Cabriolet Markets: Europe, Asia, Afria, South America Fuel: 3.4-5.4l/100km CO2: 87-

Variants: 5dr hatch Markets: China Fuel: 6.3l/100km CO2: 147g/km

DS 5LS

DS 6

DS 7 Crossback

Variants: 4dr sedan Markets: China Fuel: 6.3l/100km CO2: 147g/km

Variants: SUV Markets: China Fuel: 6.6-6.7l/100km CO2: 153-155g/km

Variants: SUV Markets: Europe, Asia, Africa, South America Fuel: 3.9-5.9l/100km CO2: 101-135g/km

internationalfleetworld.com / 31

FEATURE Alternative Fuels

WHATEVER HAPPENED TO

HYDROGEN? The number of battery electric passenger car models continues to rise as diesel demand drops. But are other alternatives a viable solution to future transportation needs? Dave Moss investigates.

I

n November 2017, the European Commission proposed new CO2 emis‐ sion standards for cars and light commercials sold in the EU until 2030. A 15% emissions reduction over agreed 2021 standards by 2025 was suggested, with a 30% reduction by 2030 – combined with manufacturer incentives to encour‐ age battery electric (BEV) and fuel cell electric vehicle (FCEV) production. Critics feel the proposals aren’t enough and with Europe’s political situation slowly chang‐ ing, suggested tougher targets of a 25% reduction by 2025 and 50% reduction by 2030 could yet become reality.

Higher targets will increase manufac‐ turer pressure to reduce average vehicle emissions through increased sales of battery electric and fuel cell‐powered vehicles. BEV sales recently passed one million units worldwide, and igures from automotive data research special‐ ists JATO, indicate 1.08m alternative fuel vehicle sales in the irst quarter of 2018.

Yet only 653 of them were fuel cell powered – 4% less than in 2017 – bring‐ ing 19 years’ worth of FCEV sales world‐ wide to just 6,062 cars.

32 / internationalfleetworld.com

What’s holding things back Felipe Munoz, global automotive analyst at JATO, believes manufacturers aren’t currently focused on FCEVs. “The priority now is bringing more fully electric cars to market, as the industry continues to face infrastructure, cost and battery chal‐ lenges,” he says. “Both BEV and FCEV have similar limitations – limited infras‐ tructure and high purchase prices.”

Devin Lindsay, a principal analyst at automotive intelligence consultancy IHS Markit, feels several factors have restricted FCEV development. “Getting the price and size of the fuel cell stack right has been a big hurdle and the global recession left manufacturers with limited R&D funds, demanding a clear focus,” he reasons. “BEV development was then prioritised as it was closer to market‐ ready. R&D is still a major factor for some and conventional engines continue to improve, so makers can’t focus on just one powertrain solution... they’re taking care to retain traditional customers.”

High‐pro ile FCEV trials are being used to convey their advantages to public and leet operators alike. The €26m ($30.4m)

ZEFER project is among the most ambi‐ tious so far, running 180 vehicles as taxis, private hire and police vehicles in Paris, Brussels and London – cities chosen to demonstrate the vehicles’ particular strengths. Rebecca Markillie, communica‐ tions manager at ITM Power, one of the fuel infrastructure suppliers closely involved, sees the project demonstrating FCEV ability in demanding applications.

“By proving their practicality in these situ‐ ations, the project will enable leets to appreciate their capabilities where EVs may not be practical,” she says. “It’ll also help accelerate the commercialisation of hydrogen as a zero‐emission vehicle fuel, with project results and data going to taxi and private hire operators, city regulators and the hydrogen community – and to support national and regional govern‐ ments and others in continued investment in hydrogen mobility.”

Demands on infrastructure development Such trials may raise the pro ile of hydro‐ gen‐powered vehicles, but refuelling remains a big concern. “The lack of a

→

“Both BEV and FCEV have similar limitations – limited infrastructure and high purchase prices.”

internationalfleetworld.com / 33

FEATURE Alternative Fuels

→

WHATEVER HAPPENED TO HYDROGEN? refuelling infrastructure is the largest hurdle,” says Devin Lindsay. “Until the ability to refuel is guaranteed anytime and anywhere, serious growth will remain delayed.” Arvind Leo, senior research analyst, automotive and transportation, at Frost & Sullivan, agrees: “Manufacturers must overcome certain major challenges before fuel cell vehicles will see adoption at the same pace as EVs,” he says. “These include sustainable hydrogen production, reducing costs, and more model availabil‐ ity. But building a modern hydrogen fuel station costs about $750,000 to $1m and that’s the primary choking point in infras‐ tructure expansion.”

Things are moving – but slowly. At the end of 2017, the Hydrogen Council esti‐ mated over 5,000 hydrogen refuelling locations were planned, while Frost & Sullivan’s analysts believe that over 7,500

could be operational by 2030. Yet just 64 new stations opened worldwide in 2017, including 24 in Germany, making its network the second largest worldwide.

Japan has most, with 91 public stations, while the USA has 40.

Fleets seek incentives A recent study of leet operators on future take‐up of hydrogen mobility by the UK‐ based H2 mobility partnership found clear preferences for low‐emission, long‐ range, fast‐refuelling vehicles. Operators were unwilling to pay large premiums for FCEVs, and proved very sensitive to taxes and charges imposed on company vehi‐ cles. Special tax structures or exemptions making FCEVs closely competitive with diesel vehicles were popular, with ef i‐ ciency and zero‐emission levels to match BEVs also important because of company

commitments to responsible environ‐ mental behaviour, and recognition of a growing need to ‘future‐proof’ leets wherever possible.

Governments have long used incentives to encourage low‐emission vehicle purchase – and research in Europe’s seven biggest markets last year con irmed that targeted taxes and incen‐ tives encourage take‐up of lower‐emitting vehicles. The study found widely varying national policies, with 23 European coun‐ tries offering tax and circulation incen‐ tives for electric vehicles including FCEV, and 18 offering bene its ranging from free parking to reductions or exemptions from toll charges or charging zone fees. The study also found company‐speci ic car tax bene its for zero‐ and low‐emission vehi‐ cles were growing rapidly, offered by 12 countries in 2017.

Alternative Fuel Vehicle Sales Q1–18 Source: JATO Dynamics

Canada 12k

Europe-31 232k

USA 128k

Japan 441k

China 174k

Israel 14k

Korea 24k

India 40k Latin America 5k

Asia-Pacific 17k

29%

AFV as % of total sales

15% 5.8% Japan

Israel

Korea

34 / internationalfleetworld.com

4.3%

4.1%

3.1%

2.8%

2.7%

1.6%

0.4%

Europe-31

India

USA

Canada

China

AsiaPacific

Latin America

FUEL CELL FACTS Forecast of BEV, PHEV and FCEV Sales, Global 5,000,000

FCEV PHEV BEV

4,000,000

3,000,000

• The irst fuel cell was built by British legal expert and physicist Sir William Robert Grove in 1839. It works by allow‐ ing the elements of hydrogen and oxygen to react together in controlled conditions, creating electrical energy in a chemical process sometimes known as cold combustion. The principle was used by American space agency NASA to ef iciently provide electricity on 1960s’ manned and unmanned space missions • Fuel cells irst established themselves in space travel and submarines because they allow big stores of energy to be carried as liquid hydrogen and oxygen.

These weigh much less than batteries, and can generate enough power for lengthy missions.

2,000,000

1,000,000

0 2015

2016

2017

2019

2021

2023

2025

Source: Frost & Sullivan, Base year is 2017

What happens now?

Just three FCEV models are currently available worldwide: the Toyota Mirai, Hyundai Nexo – replacing the iX35 (Tucson in the US) and Honda Clarity.

Manufacturers won’t discuss future plans, but industry‐watchers believe at least 20 models – from up to 10 differ‐ ent manufacturers – could join the FCEV marketplace in the next ive years.

Rumoured names include Mercedes‐ Benz, Lexus, BMW and Kia – with other major names soon following.

“The global FCEV market is esti‐ mated to reach about 583,360 units by 2030, dominated by countries such as Japan and South Korea,” predicts Leo. “We’re projecting FCEV markets in Europe and North Amer‐ ica reaching around 117,000 units each, with Toyota and Hyundai‐Kia staking claim to becoming global leaders in fuel cell technology.”

Toyota’s Mirai is currently offered in 11 countries and is the best‐selling FCEV to date, with over 3000 sales last year. “We anticipate global FCEV sales increasing signi icantly after 2020, to at least 30,000,” states Jon Hunt, UK manager of alternative fuels at the Japanese manufacturer. “We’re building two major new facilities in Japan to support that expansion, and aiming for over 10,000 sales annually from 2020.”

More models will help unlock FCEV sales – and ITM Power’s Markillie feels

the vehicles themselves will play a part.

“Drivers want to be able to refuel like they do today – in minutes. They want the range, a good‐looking car and something that is comfortable and drives well,” she says. “Ultimately they do not want to compromise what they have been used to, and hydrogen as a transport fuel allows this.”

That sort of outlook in today’s diverse car market could drive some interesting developments as FCEV sales build, and Lindsay anticipates innova‐ tion: “I would expect development of a vehicle sold on customers’ desire for performance and amenities, not just to ‘be green,’ he says. “Tesla has shown some consumers are willing to pay for a luxury performance vehicle with unique amenities. So I expect a fuel cell‐ based vehicle could capture attention with some sort of performance break‐ through, or high levels of autonomy, making it more attractive – and worthy of a relatively higher price tag.”

Hyundai’s Nexo is one of only three FCEV models on the market

• Fuel cell vehicle powertrain develop‐ ment began in the 1980s at Daimler.

Mercedes‐Benz unveiled the Necar 1, the irst fuel cell vehicle with a ‘polymer electrolyte membrane’ in 1994. An A‐ Class F‐CELL test leet followed in 2003, by which time vehicle makers around the world were working on their own fuel cell‐powered prototypes.

• A worldwide hydrogen vehicle refu‐ elling standard has existed since 2002.

An update in 2008 doubled the original 350 bar tank working pressure, allow‐ ing vehicle range to increase by over 70%. The breakthrough was achieved through multi‐sector cooperation, led by the Clean Energy Partnership.

• The energy density of hydrogen is around 13 times higher than that of today’s lithium‐ion vehicle batteries, which deliver around 125Wh/kg while the igure for hydrogen is about 900Wh/kg. This means hydrogen‐ powered vehicles can carry more energy, giving very long range, which along with faster refuelling is one of their big advantages.

• Today’s fuel cell vehicles already achieve double the overall ef iciency of internal combustion engines, and depending on operating conditions they can be up to 65% more ef icient.

However, a fuel cell converts hydrogen and oxygen into electricity, and as a converter it can never be quite as ef i‐ cient as a battery. However, this isn’t a big weakness, for the waste heat it generates can be used for vehicle heating.

internationalfleetworld.com / 35

INTERVIEW John Korte, vice president, Donlen

A mobility revolution While mobility as a service – known in the fleet world as “MaaS” – is gaining traction among fleets in Europe, there isn’t as much activity to report.

Mark Boada spoke to John Korte, vice president of Donlen’s mobility business development team, to find out what his company is doing about it.

What kinds of products and services is Donlen offering to providers of mobility as a service that could also be used by traditional fleets?

At Donlen, over the last 12 to 18 months we’ve come up with several new products and services that are being used by ride‐ hailing and ride‐sharing companies, three of which we could ultimately offer to our traditional corporate fleet clients.

One is mobile maintenance. In pooled fleets that don’t assign vehicles for exclusive use by a driver, there isn’t a driver who can to take the vehicle to a traditional location for service. In those cases, there’s an opportunity for us to send a service technician to the vehicle.

Mobile fuelling is another opportunity that we’ve developed for the shared mobility space. Today, we can send a truck to multiple locations throughout a city and fill the tanks of fleet vehicles, even with unleaded gasoline, something that has not always been the case.

Finally, we offer a mobile solution for light reconditioning, car washing, and detailing. We’ve got vendors we partner with today in that space that can do a waterless wash on site, detail‐ ing, even light body work, to make sure that that car is ready and fully cleaned before the next share or rental happens.

operation and a reimbursement program. We believe a managed mobility budget program could be a third pillar of their operation.

What this means for today’s fleet manager is that they’ve got to work cross‐functionally with human resources, with the finance team, the safety and risk team, and the legal depart‐ ment to understand how would this change work for them. A mobility program could mean incorporating the use of a ride‐ hailing company, a car‐sharing company, public transporta‐ tion, peer‐to‐peer car sharing, or just any of the multitude of options that are out there. Some fleets might have a stand‐ alone program in which one subset of employees get a company vehicle, another subset is on reimbursement, and then another subset that prefers a mobility budget to be able to move from Point A to Point B in their job.

Which mobility providers are your customers for these services?

We provide one of the largest ride‐hailing companies and a couple of larger car‐share companies preventative mainte‐ nance and accident management services.

Is Donlen is well-positioned to play that role?

Yes – at Donlen, we believe we’ve got an advantage. Being part of the Hertz family we’ve got mobility options above and beyond just the traditional fleet management company. With Hertz, we feel we can leverage many of the things that they offer into the fleet marketplace to really be that full‐service mobility provider, whether you need a vehicle for one hour, one day, or a year or five years.

How do you see fleets being impacted by the shift away from traditional fleet management toward mobility management? What can fleet managers do to prepare for that?

Donlen sees that transformation already starting. For it to come to fruition, though, fleet managers of traditional corpo‐ rate fleets really need to be out front and be leaders in each of their individual companies, to help them understand what a mobility solution could look like so it can be incorporated and shared into their current fleet structure.

More often than not, there’s not going to be a complete elimination of the traditional fleet program. What you’re going to see is that shared mobility is going to augment the fleet program, where a fleet will be hybrid of the two. You already have businesses that manage both a traditional fleet

36 / internationalflfeetworld.com

Is Donlen ready to provide that kind of service for traditional fleet, or is that in the future?

At Donlen, we’re developing that product. But while we really feel like that’s where the industry is going, it’s going to take a while before they’re going to be ready to use the services of a full mobility integrator.

Since Donlen operates overseas, would you compare how far along Europe is in developing a mobility solution as opposed to the United States and Canada?

When you compare fleet operations in Europe and North America, there are differences in both the way fleet operations are handled and in the demographic environment in which fleets operated that have allowed Europe to be further ahead from a mobility solutions standpoint for fleet managers.

One is the way leases are treated and structured in Europe versus the US. In Europe, they rely more on a traditional closed end lease structure, where the leasing company has

“Being part of the Hertz family we’ve got mobility options above and beyond just the traditional fleet management company.”

residual value risk. Another difference is that in Europe a fleet vehicle is treated as part of the driver’s compensation.

But in the U.S. and Canada, the open‐end TRAC lease is predominant, so the fleet enjoys the benefit of potentially higher residual value and the vehicle generally isn’t treated as a form of the driver’s compensation. It’s either a service vehicle or it’s a means for that sales person to do their job and get from Point A to Point B. Mobility solutions are also more readily adaptable to the geography and the urbanisation of Europe, where most people live in the large cities with robust public transport options. The factors have led to more of an early adoption of mobility as a service, shared mobility, and made it much more popular. We are catching up in the US as our urban population is growing and cities are taking a more proactive approach by increasing public transportation options and driving shared mobility

solutions to decrease the number of single occupancy vehicles in cities. So in the coming years the solutions in the US will be catching up to the rest of the world and we need to be prepared for a successful in launch of mobility as a service as a part of fleet management.

So, overseas, does Donlen already offer mobility services that you will eventually bring to North America?

Yes. In Europe today, we partner with Athlon [a vehicle leasing and fleet management company based in the Netherlands] that offers many of those mobility solutions as a mobility inte‐ grator. It enables Donlen’s customers in Europe to manage not only traditional fleet programs, but also to layer in some of the other mobility solutions. So, our partnership with Athlon enables us to make sure that we have a mobility solution in North America that will produce the same result.

internationalfleetworld.com / 37

Peugeot 508 Peugeot goes premium with the 508 – and convincingly, too. By Alex Grant.

SECTOR Upper Medium PRICE €32,000-€48,000 FUEL 3.7-5.7l/100km CO2 98-131g/km

P

eugeot is thriving; a revival kick‐started by the 208 are an acquired taste but they tend to fit average‐sized and 308 and now really getting into its stride with the drivers, while infotainment sub‐menus are accessed via a 2008, 3008 and 5008 SUVs. Ironically those might just row of silver piano key switches under the central display. be the biggest threat to this second‐generation 508.

Climate control settings are still on the touchscreen, but are Even Peugeot admits this is a tough segment in Europe, now always visible, and Android Auto and Apple CarPlay declining for a decade before stagnating for the last four app streaming offer an alternative to the slow factory navi‐ years. So the outgoing car, as competent as it might have gation when needed. been, never really got its time in the fleet limelight as drivers From launch, engines comprise turbocharged 1.6‐litre with the ability to choose continue to swap the traditional gasolines, at 180hp or 225hp, and a choice of 1.5‐litre sedan and wagons for premium brands and soft off‐roaders.

130hp, and 2.0‐litre 160hp and 180hp diesels. Fleet take‐up This new car is an overhaul radical enough to need a new is still expected to be largely diesel‐powered, particularly name. The new 508 is more Arteon than the smallest engine – which is actually Passat; shorter end‐to‐end, with a slightly smoother than the 2.0‐litre units, roofline as low as a 406 Coupe and the more willing around town and emits as frameless windows to match. It’s not a little as 98g/km CO2 (NEDC Correlated) new idea per se, but, with its Tony with the new eight‐speed gearbox.

Montana‐inspired daytime running However, as the larger diesels emit as lights, it’s a distinctive car with on‐road much CO2 as their gasoline counterparts, presence few of its rivals can match. and a plug‐in hybrid with a 50km electric Peugeot isn’t pushing volumes in range is due in 2019, there are some tax‐ Europe. It’s expecting demand to be efficient alternatives for the right users in weighted towards the sportiest GT and some markets.

GT‐Line versions, and the forthcoming Perhaps the biggest step forward is the estate – which is arguably even better‐ way it drives. The 508 is relatively light, looking than the fastback – will certainly cornering with confidence and feeling help. With stylish wood, leather and responsive thanks to the quick steering Peugeot's new 508 aluminium throughout, it feels genuinely and small wheel. Peugeot’s eight‐speed genuinely feels a cut upmarket in either GT trim and the front automatic (standard on all except the above most rivals – seats are approved by Germany’s small diesel) is very smooth, too, though campaign for healthier backs (AGR). It’s the steering paddles are fixed to the good enough to target impressive, but aesthetically compro‐ column instead of the wheel, and have premium brands, and mised in lower trim levels. some sharp moulding marks underneath. question the need for Luckily, it’s not style over substance.

This another example of a thriving brand, an equivalent DS model.

The digital instruments, perched on top even if its SUV stablemates mean it’ll never of the dashboard as in all new Peugeots, be as ubiquitous as it deserves to be.

what we think

38 / internationalfleetworld.com

Suzuki Swift Sport Lighter and more powerful, the new Swift Sport aims to upset the apple cart, discovers Jonathan Musk…

SECTOR Supermini PRICE €21,400 FUEL 5.6 l/100km CO2 125g/km (NEDC) 135g/km (WLTP)

S

uzuki is a company on the move. Both smaller and it’s immediately noticeable how light the doors are, but the lighter than its predecessor, the humble Swift gave rest of the car appears to remain untouched aside from obli‐ Suzuki’s car range the boost it needed and today fleet gatory ‘sporty’ red accents and cossetting bucket‐type seats. numbers are up and continue to climb. The new Swift Sport This means that practicality remains unchanged, including builds on 23,000 European sales of its predecessor, but is a 25% larger, 256‐litre boot than the previous Swift Sport. both lower and 50mm longer than the standard car. Its engi‐ Suzuki has built something special. Out on the road, it’s neers aimed for “ultimate driving excitement” and only the an engaging drive that entices, complements and then best ideas made it off the table. inspires confidence. At pace, this is as good as it gets with‐ The 1.4‐litre Boosterjet petrol turbo engine is the same as out risking your licence. It’s not fast enough to worry that used in larger Suzukis such as the SX4 S‐Cross and anything big and German, but it’s exactly the right blend of pumps out a modest 140hp but with an impressive max‐ performance meets usable enjoyment. The chassis is so torque of 230Nm – 44% more compared sorted that flying over weather‐beaten to its predecessor – and available from a mountain roads is coped with little more low 2,500rpm. than a wobble. Quick but weighted steer‐ Attached to a short‐throw six‐speed ing provides driver feedback at any manual and an uprated clutch to cope speed. Turbo‐lag is conspicuous by its with the torque increase, the Swift Sport absence and yet settling down for a has all the ingredients to deliver a warm motorway jaunt is relaxing. This really is hatch demeanour. a do‐it‐all and do‐it‐well car.

Additional welding and use of ultra‐ Nitpicking: the gearbox could be high tensile steel have been used to smoother and have an even shorter strengthen the standard Swift’s ‘Heartect’ throw to enhance the experience and the platform to make the chassis stronger exhaust note could be more aggressive, and the body a full 40% lighter than the although likely at the expense of around‐ previous generation Sport, contributing town manners. This is a truly impressive to a feather‐light total weight of 975kg – little car that belies its cost and humble The Swift Sport offers 70kg lighter than before. origins; hats off to Suzuki. old-school charm and All these enhancements combine to The only thing standing in Suzuki’s way fun in a thoroughly deliver 14% better fuel consumption and is quality competition from the likes of 15% improved emissions, yet greater the Ford Fiesta ST and Volkswagen Polo modern, efficient and performance over the outgoing model; an and Up GTI, but the Swift Sport is good capable package, but appealing option for those with more enough to give each a headache. And, its price may put flexible choice lists, or the ability to take while the Up GTI undercuts the Swift some off. a cash allowance.

Sport on paper, it lacks the same practi‐ Jumping into the car for the first time, cality and standard equipment.

what we think

internationalfleetworld.com / 39

Hyundai Kona Electric Hyundai’s electric SUV marks a tipping point for EVs, but there’s a catch. By Alex Grant.

SECTOR Compact SUV PRICE From €34,000 FUEL 312-482km (WLTP) 345-556km (NEDC) CO2 0g/km

F

rom the gawky city runarounds of 10 years ago, elec‐ addictively quick, not only off the mark but effortless right tric cars have become rather more mainstream up to highway speeds, and seemingly all the more ferocious lately. Technology has lengthened ranges and short‐ without gear changes interrupting the acceleration. And, ened charging times. Consumer demand has brought although it’s 300kg heavier than diesel versions, that extra wider choice, and less divisive styling. And, in the back‐ weight is mounted low in the body and paired with a ground, talk of air quality has generated interest, eroding reduced ride height, giving surprisingly sure‐footed the arguments against, one by one. handling. Green motoring doesn’t have to be boring.

Hyundai might have the best ‘for’ argument yet. The The upshot is, you don’t have to work it hard to make Kona Electric takes one of the longest‐range batteries on progress. There are four driving modes to stretch the range the market, and slots it into a car in Europe’s rapidly‐grow‐ or performance as needed, plus paddles offering progres‐ ing compact SUV segment. It gives the reassurance drivers sively more aggressive regenerative braking, a bit like need, and the styling they want, without downshifting on an automatic transmis‐ a premium price tag. Which makes it a sion. On a mixed route, we calculated significant newcomer. average energy economy good enough to The Kona was engineered with electri‐ get around 480km to a charge, falling to fication in mind, and that shows up in the 400km on a busy highway. Far enough packaging. The battery is under the back that drivers would want a break anyway. end, so there’s no loss of cabin or cargo Importantly, that break needn’t be space, and the interior is similar to gaso‐ too long. The Kona Electric can charge line or diesel models. It’s a little plas‐ twice as fast as most EVs, regaining ticky, considering the price, but aside 80% of its range in less than an hour, or from selecting forward, reverse or park it will do once there are 100kW charg‐ with a pad of buttons, there’s nothing ers to support it. For now, a 50kW unusual to get used to. rapid charger will get it to the same Hyundai is offering two versions, level in two hours, while AC charging defined by the battery capacity and takes nine. But, per mile, that’s no The Kona Electric feels range. The 39.2kWh battery returns slower than its rivals. like a tipping point; an 312km (WLTP) to a full charge, while the So, where’s the catch? Well, with EV for one-car families, 64kWh pack extends the range to 482km restricted supply, the focus for now is for the top‐spec versions. With a power online sales to retail customers, which with little stacked increase from 136hp to 204hp, plus the will delay the fleet recognition it against it. But it could extra range, the larger‐capacity battery deserves. Ironic, really, that the biggest be a while before fleets is predicted to be the bigger seller. barrier to mainstream EV uptake these see the benefits.

If anything, it’s excessive performance days is building enough cars to meet for a car in this class. But the Kona is the demand.

what we think

40 / internationalfleetworld.com

Mercedes-Benz C-Class Does Mercedes-Benz’s latest C-Class rewrite the rules for the compact segment, asks Jonathan Musk…

SECTOR Compact PRICE €34,914-€61,850 FUEL 4.1-9.3l/100km CO2 108-213g/km

T

he brand’s bestseller accounts for a fifth of all nine‐speed automatics. What the specs can’t tell you, is these Mercedes‐Benz sold worldwide, with 417,000 units impressive new engines are a big leap forward, and are sold last year. With almost two‐thirds going to busi‐ rewarding to drive in any scenario. nesses, this mid‐life refresh is aiming to put it back at the A 1.6‐litre diesel has also been developed, as has a diesel top of the corporate wish‐list – including some notable plug‐in hybrid aimed at fleets. For the lucky few, the new engines.

Mercedes‐AMG C 43 4Matic's fire‐spitting V6 biturbo gains From launch, there’ll be a wide variety of gasoline and 23hp and 44Nm torque. diesel engines, ranging from the C 160 to the range‐topping Half of the components – 6,500 – have been changed C 43 gasolines, through to the frugal C 180 d or powerful C in the new C‐Class. There’s a subtly redesigned interior 300 d diesels. and exterior that sports newly designed LED lights front New to the range is the C 200; a 184hp 1.5‐litre four‐ and rear, while the grille and bumpers give the car more cylinder gasoline turbo equipped with presence and help differentiate a 14hp ‘EQ boost’ mild‐hybrid system, between the models. which is designed to offer more accel‐ With four body styles, four equip‐ erative torque. In its most frugal guise, ment trim lines and 28 upholstery vari‐ the engine achieves 6.0l/100km and ants there’s something for every taste, emits 136g/km CO2. With those perfor‐ while sensible equipment options are mance figures, as one might guess, it now standard including keyless entry drives much like a 2.0‐litre, but is and start. A big change for Mercedes‐ slightly let down by gruff undertones – Benz fans is that cruise control is now at least in comparison to the range’s on the steering wheel rather than its other new engines. own stalk. Missing are niceties such as The C 200 d and C 220 d are the real augmented reality sat nav, like that stars of the show, using the brand’s latest found in the new A‐Class. four‐pot 2.0‐litre diesel engine. The specs Being a Mercedes, there’s plenty do the talking: 4.1l/100km on the of tech on‐board every C‐Class. Clever C-Class has always been combined cycle – a 10% improvement driver assistance tech includes adaptive a favourite in its segment over the outgoing model – and 108g/km cruise control that detects roundabouts and with the latestCO2, thanks to increased outputs of and other hazards, slowing the vehicle 160hp for the C 200 d, while the C 220 d down accordingly. Of interest to generation's sensible gets 194hp. fleets, a new ‘bump’ detection alert refinements and useful Enhancing frugality, the C 180 d and C informs a driver that their C‐Class has technology, it remains 200 d are the only cars in the line‐up to been knocked while parked, which an obvious choice. come as standard with a six‐speed could prove invaluable if needing to manual transmission, while the rest get make a claim.

what we think

internationalfleetworld.com / 41

Jeep Renegade The junior Jeep is taking a step towards a diesel-free future, explains Alex Grant.

SECTOR Compact SUV PRICE From €22,400 FUEL 4.8-6.6l/100km CO2 127-173g/km

J

eep might once have looked like an odd fit under Fiat ownership, but the Renegade is a brilliant meeting of automotive cultures. A chic, Italian re‐imagining of classic American off‐road styling, it’s taken at least three quarters of Jeep’s European volume every year since launch and given the brand its first foothold in fleet.

Mid‐life upgrades align Renegade with the new Wrangler, of which it is essentially a caricature, and follow the old car’s three‐grade trim structure, but it’s only high‐spec ver‐ sions that get the new LED lighting or 19‐inch wheels. The focus has been meeting changing market demands; diesel engines are being phased out, so the 1.6 and 2.0‐litre units are almost unchanged, apart from AdBlue injection to cut harmful NOx emissions, and it’s the gasolines that have had the most attention.

The Renegade debuts two turbocharged gasoline engines; a 1.0‐litre three‐cylinder with 120hp, and a 1.3‐litre four‐ cylinder with 150 or 180hp, all with particulate filters and significantly lower SMR costs than their predecessors. But choose carefully; the smaller engine works well in town but quickly runs out of breath at higher speeds, and even the lower‐powered 1.3‐litre offers much quieter, easier progress on the motorway, potentially with little real‐world

economy sacrifice. The small diesel is likely to remain the best all‐rounder.

Rivals are launching without four‐wheel drive, but the Renegade offers genuine off‐road ability for the handful of drivers who opt for it, particularly in the raucous, go‐any‐ where, Trailhawk spec. Instead, boxy Jeep styling provides a surprisingly spacious cabin and boot, while Android Auto and Apple CarPlay now mean the sometimes‐fiddly info‐ tainment can be bypassed. Still distinctive, even in a segment where rivals include the Hyundai Kona and Nissan Juke, sometimes odd fits work even better than they first appear.

Toyota Aygo Do the latest updates keep the Toyota Aygo at the head of the pack? Jonathan Musk finds out...

SECTOR City Car PRICE €9,990-€13,990 FUEL 4.1l/100km CO2 93-95g/km

F

or a small car, the Toyota Aygo makes a big impact.

Total sales account for more than 760,000 units since the model was introduced in 2005, and last year 85,000 were sold in Europe giving it a 6.6% market share.

Aygo is also no stranger to fleets, which take 38% of sales.

All this is expected to continue, helped by Toyota’s engine fettling of the new 72hp 1.0‐litre unit that emits a class‐lead‐ ing 93g/km CO2, rising to 95g/km for the automatic version (5g/km less than its predecessor). However, fuel consump‐ tion rises slightly for the Euro 6.2‐compliant engine.

The European model range offers X, X‐Play, X‐Play Connect,

42 / internationalfleetworld.com

X‐Cite, and X‐Trend trims, with the middle‐range trims the expected best sellers. All are five‐door, although X and X‐Play can be chosen with three‐doors to cut purchase costs.

You’ll have to fork out for Android Auto, Apple CarPlay and Toyota Safety Sense on the lower grades, while these are included as standard on higher trim levels. Two new colours are available including Blue Burst for X‐Play Con‐ nect and Magenta Fizz for X‐Cite grade. X‐Trend features external decals and 15‐inch alloys plus front fog lights, auto‐ matic headlights, air conditioning and a reverse camera.

Pricing is a slight sticking point, starting from almost €1,000 more than the outgoing model. Of course, all models benefit from Toyota’s five‐year/100,000‐mile warranty.

Driving is predictable and precise, with well‐chosen gear ratios offering effective cruising at any legal speed. However, getting up to motorway pace isn’t what you’d call swift, taking a full 13.8 seconds (15.2 seconds for the auto) for 0‐100kph.

Toyota has made sensible updates to an already popular car. Whether its multitude of trim options and colour com‐ binations will add appeal remains to be seen, but the on‐ board tech, improvements in refinement and efficiency mean there’s really no reason why the new Aygo won’t con‐ tinue its sales success.

internationalfleetworld.com

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SUV FEELING FOR ALL. Crossland X. Grandland X. Mokka X. Ready for your fleet.

Pictures show optional equipment, depending on local market offer. For further information please contact your local Opel/Vauxhall fleet representative or dealer. Fuel consumption combined 6.7–3.6 l/100 km; CO2 emissions combined 155–93 g/km (according to R (EC) No. 715/2007 and R (EC) No. 692/2008).