International Fleet World February – March 2018

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

Feb/March 2018

STAYING MOBILE Why fleets need to be flexible when faced with the challenge of keeping staff moving on a local, regional or national level

Interview Sandra TappermannPieper outlines LeasePlan’s ambitions

Daily Rental

Fleet Focus

Driven

The case for sole or primary crossborder suppliers

UK sees value in alternative sales methods

Peugeot 5008 BMW X3

internationalfleetworld.com

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The new SEAT Arona.

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Official fuel consumption for the SEAT Arona FR 1.0 TSI 115 PS in mpg (litres per 100 km): urban 47.9 (5.9); extra-urban 65.7 (4.3); combined 57.6 (4.9).

C02 emissions 113 g/km. Standard EU Test figures for comparative purposes and may not reflect real driving results.

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

Feb/March 2018

contents

STAYING MOBILE Why fleets need to be flexible when faced with the challenge of keeping staff moving on a local, regional or national level

Interview Sandra TappermannPieper outlines LeasePlan’s ambitions

Daily Rental

Fleet Focus

Driven

The case for sole or primary crossborder suppliers

UK sees value in alternative sales methods

Peugeot 5008 BMW X3

internationalfleetworld.com

Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk

14 ANALYSIS: Renault Koleos.

16 Daily Rental across borders.

30 PROFILE: Toyota and its hybrid story.

40 DRIVEN: Peugeot’s striking 5008.

Publisher Steve Moody steve@fleetworldgroup.co.uk Editor John Challen john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Content Editor Jonathan Musk jonathan@fleetworldgroup.co.uk Sales Manager Claire Warman claire@fleetworldgroup.co.uk Sales Manager Harry Whyte harry@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 looks into real-world autonomous technology.

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

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

10 Environmental News Updates from the electrified vehicle fleet market.

14 Analysis Under the residual value skin of the Renault’s Koleos SUV. 16 Feature Examining the best options for Daily Rental across borders.

22 Feature Further results of Shell and Fleet World’s fleet executive survey.

Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email ifw@fleetworldgroup.co.uk web internationalfleetworld.com

28 Fleet Focus UK: How online is becoming the sales channel of choice for vendors.

30 Profile TOYOTA: How hybrids are driving fleet sales for the Japanese giant.

36 Feature Looking at fleet procurement options to manage employee mobility.

40 Launch Report BMW X3 / Peugeot 5008.

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

42 Interview Sandra Tappermann-Pieper of LeasePlan on the company’s plans.

internationalfleetworld.com / 03

fleet review This month, editor John Challen discusses the evolution of exhibitions, real-world autonomous technology and an opportunity for the fleet world to meet...

Techs in the city

From the bottom up?

It’s encouraging to see that advanced communications and technologies have not impacted on the world of exhibitions, conferences and other opportunities for people to meet face-to-face. The days of sticking a VR headset on and ‘walking’ around an exhibition hall (from the comfort of your own home or office environment) might come one day, but for now, folks continue to flow through the doors of conference centres all around the world.

At automotive exhibitions, however, there have been certain changes to the norm – the biggest one being the growth of relevant news coming out of CES. Formally known as The International Consumer Electronics Show, CES is now owned and managed by the Consumer Technology Association – the very name change being enough to encourage a broader spread of exhibitor and visitor to descend on Las Vegas every January.

Manufacturers, suppliers and startups were all in attendance, showing off their latest advances in autonomous, electric powertrain and in-car electronics to the world. The days of Detroit and – more recently – Los Angeles being the North American auto shows of choice could well be numbered if the growth of CES continues.

Much of the technology showcased at CES might be some way off, but a week in a semi-autonomous car reminded me how far we have come. This wasn’t – with all due respect – a premium vehicle. It was a rangetopping Volvo V40 but it was equipped with lane assist, adaptive cruise control, voice command and many other clever features that ‘helped’ make the driver’s life that bit easier. The V40 isn’t the only car with these type of assistance features – there are countless others even in the same segment. What was encouraging was that the technology is now in reach of the many, not just the few.

International Fleet Meeting In spite of what people say and think about ‘new’ shows such as CES, Geneva is still special. Great location, a manageable size to get around in a day and the one where almost everyone seems to be. This year promises to be no different and another key element will be the 5th International Fleet Meeting on 7 March, winning alongside the show.

The event will feature presentations from key fleet industry figures and also offer insights into what the future might hold for the sector. I look forward to seeing many of you there.

visit internationalfleetworld.com IFW will be present at the International Fleet Meeting at the Geneva Motor Show in March

WHAT IS IT ABOUT THE NEW OCTAVIA?

IS IT THE TCO?

IS IT THE SAFETY?

IS IT THE RELIABILITY?

Low total cost of ownership is necessary for your company. But when it comes combined with reliability and safety, it becomes an incredible asset to your car fleet. So it isn’t that nobody knows exactly what it is about the New OCTAVIA. It is that when it comes to benefits, it’s almost impossible to pick just one.

skoda-auto.com

Combined fuel consumption and CO 2 emissions according to the legislation of the concerned country

fleet in figures

Disappointing December, but 2017 was a record year Year-on-year figures and selling rate declined in December, but over 95 million vehicles sold worldwide last year. By John Challen.

T

he US light vehicle market decreased 1.9% in 2017 over 2016, slightly ahead of the 1.5% drop in North America. Despite the decline, 17.2 million vehicles were sold in 2017, the fourth largest annual volume in history. In December alone, 1.6 million units were sold, a decrease of 5.2% from a year ago; the selling rate was 17.9 million units a year. Incentives in Decem‐ ber were 10.9% higher than a year ago.

The Canadian market added 88k units in 2017 to sell more than two million units for the first time in history. Thanks to positive labour force dynamics, long loans, and recovering commodity prices, sales were up by 4.5%, to 2.04 million units. In December 2017, 125k units were sold, down 0.8% from December 2016. In Mexico, December light vehicle sales plunged 17.6% YoY, to 158k units.

Europe The West European market fell by 5% YoY in December, with most markets facing two fewer selling days than for December 2016. For 2017 overall, the market expanded by 2.7% to 16.2 million units, the fourth consecutive year of growth, and the best result since 2007.

For 2018, West European market growth is forecast to slow once again. While there is limited scope for growth in Germany and ongoing headwinds expected for the UK, further recovery in the Italian and Spanish markets should support the West European light vehicle market’s growth towards 16.4 million units.

Russian light vehicle sales surged to 166,000 in December, an increase of 14%

06 / internationalfleetworld.com

YoY. For the year as a whole, light vehicle sales totalled just short of 1.6 million units, up 11.9% from 2016.

China Preliminary data indicate that the Decem‐ ber selling rate in China was 29.7 million units a year, unchanged from a slightly upwardly‐revised November. The tempo‐ rary purchase tax on smaller vehicles expired at the end of 2017, but there was no spike in sales, probably because automakers and dealerships had already started to correct inventories. YoY, sales declined marginally last month.

Nonetheless, in 2017 as a whole, total Light Vehicle sales reached a record high of 28.6 million units. Sales growth in 2018 is expected to be modest, due not only to the higher purchase tax, but also to slower economic growth. While sales in major cities are constrained by the government’s measures to reduce air pollution, sales in Lower Tier cities are expected to remain the key driver of the market.

Other Asia Mirroring the buoyant economy, the Japanese market ended 2017 on a strong note, with the December selling rate reach‐ ing 5.2 million units a year. On a YoY basis, however, sales fell marginally in December, continuing to be impacted by the scandals at Nissan and Subaru. In 2017 as a whole, total light vehicle sales increased by 5.4%, the first expansion since 2014.

In South Korea, sales unexpectedly fell sharply in December, due to supply disruptions caused by the labour strikes at Hyundai. The December selling rate

was 1.5 million units a year, down nearly 17% from a strong November. Total light vehicle sales fell by almost 2% in 2017, dragged down by the pull‐ahead effect of the temporary tax cut in 2015‐2016.

South America After several months of strong sales, the Brazilian market slowed abruptly, with the December selling rate falling to 1.94 million units, down nearly 14% from a strong November. It is possible that both dealerships and consumers are waiting to see whether the government’s yet‐to‐ be‐announced new automotive policy brings incentives. Nonetheless, total light vehicle sales increased by nearly 10% in 2017 as a whole.

The Argentine market ended 2017 on a robust note. The December selling rate of 944,000 units was down 5% from November, but that was still a four‐year high. In 2017 as a whole, total light vehicle sales increased by 26%, aided by sharp falls in inflation, the brightening economic outlook and rising business and consumer confi‐ dence. In addition, the recent tax cuts on vehicles have brightened the sales outlook for this year.

Ford’s F-Series helped Canada hit two million sales in 2017

NEW: the Opel

GRANDLAND Ï

Impressive 360° Surround Vision Camera*

Ï

Advanced IntelliGrip for a ride in control*

Ï

Spacious load volume with up to 1,652 litres

Ï

Premium AGR seats for healthy long-distance travelling*

Business meets pleasure *The listed features are optional. Availability depends on local market offer or trim level.

Fuel consumption combined 5.5–4.0 l/100 km; CO2 emissions combined 127–104 g/km (according to R (EC) No. 715/2007 and R (EC) No. 692/2008).

manufacturer news

New A-Class previews small-car focus M

ercedes‐Benz is to extend its small car line‐up to eight model lines, as it focuses on broadening its appeal and find‐ ing a younger customer base.

Previously the carmaker’s compact car platform accounted for five model lines, covering the A‐Class, B‐Class, CLA, CLA Shooting Brake and GLA, but Mercedes‐Benz has now said its small car family will soon grow to eight models, hinting that the Concept A Sedan could preview a three‐box A‐Class to rival the A3 – partic‐ ularly important in North America. Meanwhile the Concept EQA shows how the brand’s electric vehicle sub‐family could become part of the line‐up too.

The new A‐Class shows what to expect from them; it gets the latest driver assistance technologies from the E‐Class and S‐Class, an optional all‐digital floating instrument and infotainment display, more intuitive voice controls and connected navigation which can receive live data from other vehicles’ on‐board sensors.

The initial launch line‐up brings a new 163hp 1.4‐litre petrol engine with cylinder shut‐off (5.1l/100km, 120g/km), and an upgraded 116hp 1.5‐litre diesel (4.1l/100km, 108g/km), now featuring selective catalytic reduction, both of which feature seven‐speed dual‐clutch automatic transmissions.

fleetiinquotes a few soundbites from a month in fleet

The A-Class has been a big driver of change at MercedesBenz. It is the single best example on how we managed to rejuvenate our entire brand. There’s not much of an ‘entrylevel’ feel left in our new entry-level car.

“

”

Dieter Zetsche, Daimler chairman.

Iveco has a longstanding commitment to sustainable transport. With the Green Finance schemes, we take our commitment a step further, by helping our customers’ energy transition as they make their fleets more environmentally friendly.

“

”

Pierre Lahutte, Iveco brand president.

Updated Škoda Fabia drops diesel

Š

koda’s updated Fabia will introduce an exclusively petrol engine line‐up as it drops the 1.4‐litre TDI. Said to be on a par with diesel for fuel efficiency, the four 1.0‐litre petrol engines comprise the 60hp and 75hp MPI units currently in the line‐up as well as the 95hp and 110hp units introduced in last year’s facelift. Also seen in the Octavia, Rapid and Rapid Spaceback models, the TSI units come with turbocharging and direct petrol injection while the 110hp variant can be specified with a seven‐ speed DSG gearbox as an option.

Due in the second half of 2018, the facelifted Fabia will also intro‐ duce a redesigned front and rear end as well as new driver assis‐ tance technologies.

08 / internationalfleetworld.com

“

Cities globally are dealing with increased congestion and environmental issues. Ford is helping to alleviate these challenges by developing mobility solutions – such as Chariot – that are finely tuned to the unique challenges of commuters in different locations.

Marcy Klevorn, president, Ford Mobility

”

For the latest news, visit internationalfleetworld.com

International Fleet Meeting spotlights mobility

T

he topic of mobility management is to come under focus at the 5th Inter‐ national Fleet Meeting at Geneva.

Taking place on 7 March 2018 within the Congress Center at the motor show, the one‐day event – which is free to attend – will see Hervé Girardot, head of Arval Consulting & Corporate Vehicle Observatory and Vinzenz Pflanz, vice president group sales Sixt SE, take part in a panel discussion, moderated by Thilo von Ulmenstein, managing partner Fleetcompetence Europe GmbH. The event will also give attendees the chance to hear from Michael Müller, senior director head of mobility & facilities, Daiichi Sankyo Europe GmbH, and Marc A Odinius, managing director Dataforce GmbH, on the latest industry developments.

The International Fleet Meeting will also provide a networking platform for international fleet operators and the automotive and leasing industry.

Arval targets non-company car drivers under growth plans plans to significantly grow its international business by target‐ ALastrval ing non‐company car drivers within its clients’ organisations. year the business saw significant growth across its operations with its global fleet increasing 7.4% to 1,103,835 units. It’s now target‐ ing further growth to 1.3 million units by the end of 2020 as it also repositions itself as a ‘mobility solutions company’.

This comes on the back of a raft of new products and services due to be rolled out in phases to fleets across 29 markets and aimed at employees of existing and future customers who do not qualify for company cars.

This includes a new solution with Renault, Nissan and NewMotion, which builds on Arval’s existing EV leasing options with features including domestic charging point installation, card payments and reimbursement for domestic charges.

Arval will also expand its Arval For Me solution, which provides non‐ company car drivers with access to Arval’s established network cover‐ ing repair and maintenance, relief cars, pick‐up and drop off, and its Arval Car Sharing alternative pool car service.

The firm will also debut its Arval For Employee scheme for staff employed by Arval’s clients, which covers salary exchange, car leas‐ ing and leaver offers plus Arval Car Sharing and Arval For Me. Finally, the My Arval full digital solution will be rolled out to all 29 markets.

ABAX acquires Danish tracking firm elematics firm ABAX is continuing its European expansion plans with the TFleetfinder acquisition of Danish tracking firm Fleetfinder for an undisclosed amount. has 17 years’ experience in the Danish tracking and fleet management market and brings a total of around 7,000 subscriptions to ABAX Group’s existing portfolio – marking nearly a 100% increase. It also brings the group’s total base up to 220,000 vehicles.

in brief Astrata expands LCV market HGV telematics and fleet manage‐ ment provider Astrata has branched into the European LCV market with the launch of its new VanLinc solu‐ tion. The new technology offers a comprehensive solution designed to give real‐time insights on drivers, vehicles and other assets.

Iveco develops Green Finance schemes Iveco and BNP Paribas Leasing Solu‐ tions are offering preferential inanc‐ ing deals on a range of Iveco Natural Poser vehicles. The schemes are avail‐ able in Belgium, France, Germany, Italy, the Netherlands and the UK and include the Daily Blue Power range and the Daily Electric.

Ford ride-share solution debuts in London London commuters can now use a Ford ride‐sharing service to plug gaps in public transport. Already available in ive US cities following Ford’s acqui‐ sition of the San Francisco start‐up a year ago, the Chariot service uses 14‐ seater Ford Transit minibuses operat‐ ing across four routes currently underserved by public transport.

Europcar to launch global chauffeur service uropcar Group is launching a chauf‐ E feur service as part of its ongoing focus on meeting new mobility needs.

Dubbed Global Driver Services and set to roll out across all Europcar markets, the solu‐ tion expands the Europcar portfolio by offer‐ ing professional driver services particularly aimed at business and leisure travellers look‐ ing to get to and from train stations or airports, and will offer three levels of service: economy, business and first class.

internationalfleetworld.com / 09

Masterpiece of Intelligence.

The new E-Class.

The new E-Class demonstrates that intelligence has many different sides. Whether in a Saloon, Estate, All-Terrain, CoupÊ or Cabriolet – with Intelligent Drive, you experience a whole new dimension of innovative safety and comfort. www.mercedes-benz.com/fleet

environmental news

UK leads Europe’s growing electrified vehicle market in 2017

T

he United Kingdom was the largest‐volume market in Europe for electrified vehicles during 2017, accounting for one in every six registered across the region, figures from ACEA reveal.

Including hybrid (HEV), plug‐in hybrid (PHEV), range‐extended electric (E‐REV), battery electric (BEV) and hydrogen fuel cell (FCEV) models, a total of 747,688 electrified cars were registered in the European Union and EFTA countries during 2017 – 46.4% year‐on‐year increase. Roughly one in every 20 new passenger cars (4.8%) registered in the region last year was electrified.

Of those, 119,827 (16.0%) were registered in the UK, closely followed by Germany (109,853 units) and France (106,515 units). However, with 82,813 electrified vehi‐ cles registered last year, Norway became the first country where over half (52.2%) of all new passenger cars could be driven using an electric motor. Sweden, at 45.2%, looks likely to follow suit during 2018.

The UK’s electrified car market is heavily weighted towards HEVs, at 60% of the total. Last year, 72,523

(+40.0% year‐on‐year) were registered in the UK, with Toyota and Lexus holding a combined 80.4% market share. Hybrid versions of the Yaris (12,553 units), C‐HR (10,760) and Auris (10,728 units) its biggest‐selling products, while 98.8% of Lexus’ UK registrations were hybrids last year.

Hybrid volumes in the UK were just ahead of France (69,680) and Italy (63,398). It is also the biggest market for plug‐in hybrids, with 31,154 registered last year (+25.1%), ahead of Germany (29,439) and Norway (25,165).

However, the Norwegian market continues to lead on BEV registrations. More than one in five passenger cars registered in Norway last year (20.8%, 33,025 units) were BEVs, making it both the largest market by volume and by share. The second‐largest market share was the Netherlands, where BEVs accounted for 2.4% of all passenger car registrations.

Germany (25,056 units), France (24,910 units) and the United Kingdom (13,597 units) were the second, third and fourth‐largest markets for BEVs last year.

Plans underway for pan-European urban fast charging hubs

D

utch charging firm Allego and Nordic charge point operator Fortum Charge & Drive are planning pan‐ European interoperable charging network, focused on metropolitan areas and highways.

The MEGA‐E network, which is in application for Euro‐ pean Union co‐financing and open to additional partners – will install its first units before the summer. This will grow to include 322 ultra‐fast chargers and 27 charging hubs in 20 countries across the region, said to be a unique feature.

Anja van Niersen, CEO of Allego, said: “Around 70% of traffic in Europe takes place in urban areas, where the CO2 impact is the highest. With the charging network of MEGA‐ E we facilitate several forms of e‐mobility and support

12 / internationalfleetworld.com

emission free travelling not only within, but also from one metropole area to another.

“Unique is the creating of so called ‘e‐charging hubs’ in which we combine multiple charging solutions on the same location to charge electric vehicles. The e‐charging hubs would therefore have an optimal impact and effectiveness for both the energy and mobility system.”

The plans follow the announcement late last year that four of Europe’s largest forecourt operators have signed up to host ultra‐fast electric vehicle charging points under strategic partnerships with the manufacturer‐backed pan‐ European Ionity network, which is planning to roll out 400 sites on major routes by 2020.

For the latest EV news, visit evfleetworld.com

BP to roll out EV rapid chargers in Europe

B

P sites across Europe will get electric vehicle rapid chargers from later this year, as the oil giant seeks to keep pace with the transition away from petrol and diesel.

The move is being facilitated by BP’s $5m (€4m) investment in US‐based mobile electric vehicle charging company FreeWire, whose technology will enable flexible deployment of the units on trial at selected sites while also exploring options for other locations.

Tufan Erginbilgic, chief executive, BP Downstream, said: “EV charging will undoubtedly become an important part of our business, but customer demand and the technologies available are still evolving.

“Using FreeWire’s mobile system we can respond very quickly and provide charging facilities at forecourts where we see the greatest demand without needing to make significant investments in today’s fixed technologies and infras‐ tructure. The opportunity also to explore options for providing charging services away from our existing retail sites makes FreeWire an ideal partner for BP.”

in brief Hyundai Kona Electric range revealed Hyundai has begun taking pre‐orders for the Kona Electric in South Korea, revealing some of the options likely to come to Europe when it launches this summer. The small SUV will feature a 204hp electric motor and two battery capacities, 64kWh and 39.2kWh, offering 390 and 240km ranges. Pricing starts at KRW 43m (€32,500).

Volvo XC40 PHEV due in Q4 2018 Volvo will add a plug‐in hybrid drivetrain to the XC40 SUV late this year, badged T5 Twin Engine. The newcomer will use a different setup to the brand’s large models; a three‐cylinder petrol engine, augmented by a powerful electric motor and a mains‐rechargeable battery likely to offer a range in excess of 20 miles.

Hydrogen stations added to UK fuel card

Ford boosts electric mobility investment

F

in numbers

ord is more than doubling its investment in electric vehicles, reviving the Mach nameplate made famous by early Mustangs on a high‐performance electric SUV due in 2020.

Executive vice president and president, global markets, said the company would invest $11bn (€8.9bn) in “electrifying the best of Ford” – offering the freedom and road‐trip spirit of the brand, including high‐performance models, but via battery‐powered drivetrains.

Next year, the carmaker will launch its first PHEV in Europe – based on the Transit Custom – and a longer‐range electric version of the next Focus, due to be revealed this year, is also likely. In 2020, the line‐up will grow to include a fully‐electric SUV called the Mach 1, sold globally and offering a range of 500km.

Hybrid versions of the Mustang and F‐150 pickup, as well as electrified police vehicles, will also be available before the end of the decade.

UK fuel card company, Allstar Business Solutions, has added ITM Power’s network of hydrogen refuelling stations to its service. The partnership establishes a cashless solution catering for mixed vehicle leets, and is said to be the irst of its kind. ITM said it follows a request from one of its large customers to bring hydrogen under its fuel card offer.

Volkswagen launches electric mobility division The division will oversee plug‐in hybrids on the modular MEB electric vehicle plat‐ form, and develop its centre in Zwickau ahead of the irst models launching under the I.D. sub‐brand.

€11.6m 60%

PHEV sales share of the new Panamera in Europe.

UK government funding for 1,000 vehicle-to-grid chargers for fleets.

Source: UK Department for Business, Energy and Industrial Strategy

Source: Porsche AG

internationalfleetworld.com / 13

ANALYSIS Residual values

Remarketing notes Renault Koleos undergoes IFW’s resale analysis. By Dieter Fess.

What the manufacturer said at launch:

About the residual value grades

The new Koleos delivers a blend of robust SUV design cues together with the refinement and features associated with large saloon cars. The new car boasts a powerful stance that sets it apart from its D‐segment SUV rivals and provides a refined, comfortable interior that boasts record room for passengers.

The new Koleos also delivers all‐terrain ability while ensuring excellent ride, handling and stability.

What BF Forecasts say now: A lot of car, this Koleos. The styling is much better than previ‐ ous attempts by Renault to establish a decent car in this segment. Besides the fact that the Koleos is good looking, the finish and quality of the interior material underlines Renault’s ambition to lift the Koleos to a new level. There are two diesel engines and although the 130hp engine isn’t bad, the 177hp engine seems for us to be the number one choice. That Renault has done the right thing with the Koleos emphasises the very good residual values that are essentially the same in France, Germany and Spain. Only the very ambitious high price level in Germany leads to a slight decrease of the RV. Brand: Renault Model: Koleos Available since: 2017 Prices from: (incl. VAT) Engines:

France

Germany

Spain

€29,900

€30,900

€30,500

130hp

Text and data: bähr & fees forecasts GmbH ( Ø- Values; Trade; 36; Mon; 60TKM;11-2017)

177hp*

* Listed in France with 175hp

Diesel

14 / internationalfleetworld.com

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

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

RESIDUAL VALUE GRADES 10 9 8 7 6 5 4 3 2 1 France

Germany

Spain

A unique sporty five-door coupé.

The new Hyundai i30 Fastback.

For everything you care about.

You care about the dynamic image of your business. You care about agility and powerful, efficient performance. You care about comprehensive safety and state-of-the-art connectivity technologies. And, not least, you care about low operating costs and high residual values.

With its sleekly raked roofline, turbocharged petrol engines, advanced SmartSense driving assistance systems and our 5-year Unlimited Mileage Warranty, the new i30 Fastback delivers just about everything that you could care about. Discover more at Hyundai.com/eu

The Hyundai 5-year Unlimited Mileage Warranty applies only to Hyundai vehicles that have been originally sold by an authorised Hyundai dealer to an end customer, as set out in the terms and conditions of the warranty booklet.

Fuel consumption for the Hyundai i30 Fastback range: combined 5.2–5.7 l/100 km, CO2 emissions 120–134 g/km.

FEATURE Rental Opportunities

ONE DAY AT A TIME For companies requiring daily rental services across different countries and regions, the best options are sole and primary suppliers.

Curtis Hutchinson asks the leading providers to state their cases.

I

t's a familiar scenario. Some employ‐ ees need to travel on business around the world and require transport when they arrive at their destination. For trips involving busy itineraries with travel to multiple locations and requiring maxi‐ mum lexibility, then access to a car is the only option.

The solution is daily rental, an estab‐ lished means of providing short‐ and medium‐term mobility solutions to busi‐ ness travellers. But how should busi‐ nesses manage their overseas daily rental usage?

In many cases the onus will be on the employee to source a car at the airport, or their hotel, go for the cheapest deal and claim back on expenses. This could result in employees running around in high mileage hire cars, sourced from an unknown local supplier, which may have been heavily used by holidaymakers over a long and busy season. Whether that car will comply with the business' duty of care policy, be it for purpose and project the right corporate image is debatable.

With this in mind International Fleet World approached three of the biggest providers of daily rental to see what they offer corporate customers.

The sole supplier route James Turner, sales director, of Avis Budget Group, advocates the sole supplier route for businesses with of ices around the world or with staff requiring short term vehicles when overseas.

16 / internationalfleetworld.com

“There are a number of advantages to having a sole supplier daily rental agree‐ ment in place for companies which have of ices and staff based across different regions,” he says.

“At Avis Car Rental we operate one of the world’s best‐known car rental brands with a global spread of approximately 5,500 locations in 165 countries. This, along with over 70 years of experience working in the industry, enables us to offer a consistent customer experience.

“Additionally, moving to a centralised vehicle rental policy provides ef iciency, transparency and lexibility,” adds Turner.

“Businesses deal with one local Avis account manager in their country and all the bookings go through a central point with the account manager overseeing the agreement. This ensures the company’s bookers and travellers are familiar with our processes and the way we operate.”

There are also quanti iable cost ef icien‐ cies of going down this route, argues the Avis man. “Pooling all global volume to a single supplier also means there are ixed and competitive rates throughout the year, as well as simple pricing and clear terms and conditions, allowing companies to control their vehicle rental costs and policy management more effectively.

“Furthermore, those drivers that hire frequently can join our free Avis Preferred loyalty programme which provides fast‐track counter service and member‐only rewards,” he says.

The sole supplier route is also advocated

by Caroline Parot, chief executive of icer of Europcar Group. “Clearly a sole supplier agreement should deliver cost and opera‐ tional ef iciencies for a business. And where a irm has employees in multiple countries, it should also deliver consistent standards in terms of the driver experience,” she says.

Parot adds that a co‐ordinated sole supplier policy helps organisations better understand and manage their mobility needs. “Working with a single rental partner should also mean a business can use one booking and management system, which ideally should provide access to all the different services available from the supplier. This should not only make it easier to apply travel policies across an organisa‐ tion, it should also mean that real insight can be provided into how mobility services are being used within an organisation to improve ef iciencies and reduce costs.

“Crucially, leet managers and their employ‐ ers need to be able to understand and analyse how the use of different mobility solutions is impacting inancial and environmental targets,” states Parot. “Working with one supplier means they can gain that insight much more easily than if they were working with multiple suppliers.”

“Clearly a sole supplier agreement should deliver cost and operational efficiencies for a business.” internationalfleetworld.com / 17

→

FEATURE Rental Opportunities

→

The primary supplier option However, according to Rob Ingram, direc‐ tor of business development EMEA at Enterprise Rent‐A‐Car/National Car Rental, there is also a counter argument for a two‐tier approach to daily rental services, with a primary supplier work‐ ing, when necessary, with third parties to provide daily rental solutions. “The ques‐ tion is whether a sole supplier agreement is realistic for global daily rental, as there are very few circumstances where a sole supplier contract captures all of a busi‐ ness’s rental requirements,” he says.

“It’s more realistic to approach daily rental looking for a ‘primary provider’ irst and potentially secondary providers as well,” adds Ingram. “This is why so many organisations appoint a primary supplier as their main partner, supported by secondary

rental companies in markets where needed.

“This can be more effective than using a range of different suppliers in different countries, as it allows businesses to develop one tailored, strategic partner‐ ship with their primary partner with a set of service indicators and requirements.

The partner is then also responsible for ensuring the quality and service delivered by its third parties. Plus, all employees get one service standard and the business can work with the rental company to create a bespoke business travel programme.

Ingram argues such an approach offers lexibility whilst also maintaining standards.

“There is much more scope for advising, consulting and adding value where there is one primary supplier engaging with a complete requirement rather than just

being one component, so a rental company becomes a business partner rather than just a supplier. For example, we can work more effectively with senior decision‐makers to help create a travel policy that reduces costs and keeps employees mobile and we can suggest a wider range of options.”

Clearly there are two distinct daily rental options to be considered for busi‐ nesses with staff requiring access to cars whilst abroad. While companies can assess the pros and cons of the sole supplier and primary supplier routes, both offer centralised control, budgeting accountability and consistency from the main suppliers. That's got to be better than a member of staff queuing in line behind holidaymakers for the best deal from an unknown local provider.

DAILY RENTAL VEHICLE CHOICE TRENDS We asked Enterprise Rent-A-Car/National Car Rental, Europcar and Avis Budget to identify any trends they have noticed over the last 18 months when it comes to businesses specifying the types of cars that staff use for their international travel.

Rob Ingram, director of business development EMEA at Enterprise RentA-Car/National Car Rental.

“Hybrid vehicles are becom‐ ing a rental workhorse and have become increasingly common in rental leets.

Plug‐in hybrids and pure electric vehi‐ cles are a growing market that remains more context‐speci ic, say, for car clubs where a number of employees always make lots of short trips, due to range and infrastructure considerations.”

18 / internationalfleetworld.com

James Turner, sales director of Avis Budget Group.

“We plan to have more than 100,000 connected cars by early this year. Our entire leet in the greater Kansas City area is connected as part of our irst‐ever Mobility Lab. We have also committed to operating a fully connected global leet by 2020.”

Caroline Parot, chief executive officer of Europcar Group.

“We continue to focus on the delivery of environmentally sustainable mobility solutions, both through the use of hybrid, electric and even hydrogen fuelled vehicles on our leets and through the deliv‐ ery of car share solutions, working in partnership with employers and public sector organisations.”

GOLD SPONSORS:

ORGANIZED BY:

Date: 7 th March 2018 (2 nd press day) Place: Geneva International Motor Show Location: Room K, Congress Center Target groups: International Fleet Managers / International Fleet Procurement Managers Capacity max. 250 people Access only with admission ticket and an official ticket for the press day.

Registration and additional information: www.internationalfleetmeeting.com Limited number of participants.

Timetable: From 09:00 11:00 11:30

12:30

13:00 14:00 14:00 – 16:00

Welcome Desk opened Start of the event / networking 2 Top speakers (in English) Michael Müller, Senior Director Head of Mobility & Facilities, Daiichi Sankyo Europe GmbH Marc A. Odinius, Managing Director, Dataforce GmbH Panel discussion – Moderator, Thilo von Ulmenstein, Managing Partner fleetcompetence europe GmbH «Mobility Management – Vision and Reality» Lunch buffet and networking End of the official event Lounge-service for sponsors, media partners and guests (only with admission ticket)

Contact: aboutFLEET / A&W Verlag AG | Mrs. Jasmin Eichner | Riedstrasse 10 | CH-8953 Dietikon Phone +41 (0)43 499 18 60 | Fax +41 (0)43 499 18 61 | Mobile +41 (0)79 766 99 00 | je@auto-wirtschaft.ch | www.aboutfleet.ch fleetcompetence europe GmbH • Mr. Balz Eggenberger | Alte Landstrasse 106 | CH-9445 Rebstein Phone +41 (0)71 777 15 32 | Fax +41 (0)71 777 15 31 | balz.eggenberger@fleetcompetence.com | www.fleetcompetence.com

Please note this programme may be subject to change

SILVER SPONSORS:

MEDIA PARTNERS: FOR INTERNATIONAL FLEET & MOBILITY LEADERS

Forum biznesowe

D ECISIO N S , D ECI S I O NS .

INTRODUCING THE JAGUAR AND LAND ROVER RANGES FOR BUSINESS Efficiency or performance? Ride comfort or driving dynamics? Connectivity or capability?

Choosing vehicles for your fleet is a huge responsibility, but who said you can’t have it all?

The Jaguar and Land Rover ranges offer uncompromised solutions for every fleet. Featuring our innovative InControl infotainment system and state-of-the-art Ingenium engines, our vehicles deliver everything your business demands. And with 104* derivatives below 130g/km CO2, the only decision you need to make is which vehicle to test drive first.

fleet-business.jaguarlandrover.com

*

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

FEATURE Fleet Management

VALUING PEOPLE survey In association with

INTERNATIONAL

FLEETW RLD In the second part of our series of exclusive surveys, Shell and Fleet World questioned 266 fleet executives to find out how they interact and monitor their drivers. Covering car, van and HGV operators, the results reflect some surprising attitudes to the issues facing fleet management.

What are the risks?

W

ith drivers often on the road for long hours at a time, a key part of leet management is ensur‐ ing their safety. Yet over a third of leet managers (38%) said they feel the indus‐ try under‐appreciates the road safety risks their drivers face.

Drivers need to feel con ident that they are supported on the road and that their leet manager is aware of and addressing issues that could pose a risk to their safety, while customers need to have

22 / internationalfleetworld.com

con idence that their delivery will be made as safely and ef iciently as possible.

Driving safety (including issues such as mandatory use of seatbelts and a ban on the use of mobile phones behind the wheel) was rated as the biggest issue by 29% of respondents.

Poor road and weather conditions were also among the top factors leet managers need to consider when managing their drivers’ safety, particu‐ larly among those operating cars; 69%

of whom rated it as a main concern.

Driving in poor weather is perhaps the hardest to manage because weather is hard to predict – events such as snow, fog and heavy rain can occur without warning and impact seriously on driving conditions – reduced road grip and reduced visibility add up to an increased risk of an accident or vehi‐ cle failure. And driving at night is another area that leet managers must be alert to – 40% of all collisions happen in the hours of darkness, according to research by RoSPA.

Overcoming Fatigue

D

river fatigue is a major issue for leets; a contrib‐ utory factor in up to a ifth of all road traf ic acci‐ dents according to research from the Department for Transport’s Think! campaign. Not only are these incidents more likely to be fatal, but it’s also a shared hazard, potentially affecting other road users too.

Unsurprisingly, respondents were very concerned about monitoring working hours. Asked to rank concerns from 1‐9, half of those surveyed placed this at seven or higher. That’s weighted towards HGV operators, 71% of whom ranked it this way, while car and LCV leets were fairly equal at just under 50% each. In all groups, driver fatigue was ranked highly, similar to working hours. Likewise, larger leets tended to be more concerned about both factors.

Planning is a key weapon in the fleet manager’s arsenal in this respect – creating journey plans that include regular scheduled breaks for rest, as well as having a policy in place ensuring employees are medi‐ cally it to drive. It’s an aspect addressed by Shell’s latest sites, such as the Berchem service station in Belgium, which has been designed to provide ef icient, queue‐free refuelling and AdBlue top‐ups for drivers, and discounts on refreshments. Shell also offers Fatigue Awareness information for leets, aimed at helping factor this into drivers’ working lives.

→ internationalfleetworld.com / 23

FEATURE Fleet Management

“In total, more than 32% of respondents to the survey cited employees’ mental health as having an impact on drivers’ road safety.”

→ Stress and Mental Health

B

ut it’s not just being behind the wheel that causes employees issues; stress is another impor‐ tant consideration for companies requiring staff to be on the road and/or away from home regularly.

In total, more than 32% of respondents to the survey cited employees’ mental health as having an impact on drivers’ road safety – the vast majority (66%) being those who run car leets. But nearly half of leet managers questioned said their business never provides training to

24 / internationalfleetworld.com

employees regarding their mental health.

In fact, just 10% offer such training.

Added out‐of‐hours demands on employees are indicative of the chang‐ ing workplace; 9‐5 of ice‐based jobs are giving way to new levels of lexibility thanks to technology such as teleconfer‐ encing and applications like Facebook and Skype, which make keeping in touch remotely easier than ever. But there is a danger that the good aspects of remote working could be undone by the damag‐ ing mental implications – stress

accounts for a third of all work‐related ill health, according to the Health and Safety Executive, and contribute to 43% of sick days taken.

What this technology does is create pockets of potential stress problems which can go unchecked because the employee is not in face‐to‐face contact with people. Issues include a lack of social interaction, working longer hours and a blurring of the work‐life balance – all issues that can creep on up on some‐ one prone to issues like stress.

Driver Training

F

leet managers’ roles are expand‐ ing and becoming increasingly complex. New technologies, legis‐ lations and customer demands have shaped both the industry and the fleet manager’s role. The role has developed to become more strategic, gradually evolving into ‘Mobility Managers’ responsible for end‐to‐end travel and transport arrangements.

This is placing considerable pressure on the time (33%) they have available to conduct training and get their drivers engaged with it. A third said they ind insuf icient interest from drivers a key barrier to implementing driver training and 26% cited insuf icient senior management support. Budget (11%) and dif iculty in accessing experts to deliver the training (3%) were other key issues. Even so, 60% said they provide regular training to drivers, and only 13% said they don’t offer any at all.

With more than a quarter of all road

traf ic accidents involving someone who is driving for work, according to Health and Safety Executive data, the need for driver training among business drivers

is paramount. Fleets that had under‐ taken driver training said they found it was one of the most effective ways to retain employees.

Vehicle Monitoring

T

he vast majority of leets questioned (67%) said they do not use in‐vehicle monitoring systems (IVMS). As a result, they are missing out on potential ef iciency, safety and cost savings, which these telematics devices can bring, particularly in terms of identifying areas where driving behaviour could be improved.

Of the 28% who do use in‐vehicle monitoring systems, the vast majority (84%) reported an improvement in driver behaviour, and around half of those said they had seen a signi icant improvement since using the technology.

It appears driver concerns remain the key issue when it comes to installing IVMS – cited as an issue by more than half of those who have implemented it. That’s a signi icantly higher percentage than cost, time, or lack of management buy‐in.

Drivers can be naturally suspicious, seeing the devices as ‘a spy in the cab’, so working with a mobility solutions provider who can help to reassure them, address their concerns and highlight the bene its these systems can provide for them is key. A company should be clear to its staff on the expectations and uses of the systems and how they it within its overall road safety programme.

It is recommended to involve drivers from the outset, so they do not see this as ‘big brother’ but rather as a support tool that helps them enhance their driving skills, recognises good performance and rewards it accordingly.

The rewards are huge; those leets who implemented IVMS and who cited driver resistance as a key issue reported a signi icant improvement in driver behaviour (54%) while a third (32%) saw a mild improvement.

In general terms, vehicle monitoring has been proved to be very effective in building safer and more economical leets. The devices have been shown to result in a 60% reduction in incidences of speed‐ ing, a 29‐100% reduction in high potential, catastrophic, major or serious accident rates, and also identi ies poor driver behaviour such as sudden braking and harsh acceleration.

internationalfleetworld.com / 25

FLEET FOCUS United Kingdom

UK sees value in alternative sales methods Jon Mitchell, group sales director for Autorola UK discusses growth of used cars and consumer finance in the UK and how online is becoming the sales channel of choice for vendors.

26 / internationalfleetworld.com

A

fter years of new car sales growth, the UK has seen the market falter in 2017 with nine consecutive declining months up to the end of December. While the market exceeded 2.5 million new car sales last year, it also fell by 5.7% in 2017 with diesel sales dropping by 17.1%, replaced by a growth in petrol, hybrid and EV sales. Alternative fuelled vehi‐ cles rose by 34.8% to 119,000 registrations.

But this stalling of the new car market has been positive for the second‐hand market with many franchised dealers turning to used cars again as they struggle to hit their new registration targets. There is even talk that 2018 could be a landmark year with more used cars sold than ever before in the UK market.

Consumer demand of used cars has been strong through‐ out 2017. Average prices have been constant according to our own data starting at £9,621 in Q1, falling to £9,237 in Q2 and rising back up again to £9,412 in Q3 2017. They ended the year at £9,504.

Average used diesel prices have also stabilised. According to our quarterly prices survey, diesel started Q1 at £11,443, fell to £10,893 in Q2 but by Q4 had recovered to £11,132. We believe after a knee‐jerk reaction by the market in Q2 because of the bad press that diesel received, traders have seen continued strong demand from consumers. It remains the wholesale buyers’ fuel of choice on the Autorola portal.

SHIFT TO ONLINE For decades the UK market has been very traditional, with physical auctions selling the majority of used cars in the UK. While buyers have always been very accepting of the convenience and power of buying online, vendors have been more cautious.

We believe the industry has now reached a tipping point where online is playing a key part in vendor remarketing strategies. Peugeot, Nissan, Audi, Volkswagen Commercial Vehicles, Seat, Renault, Kia, Hyundai, Volvo and Citroën deal‐ ers all use our online portal to sell unwanted part exchanges to our 2,000 active buyers and to buy used stock from traders. Vendors such as Peugeot were early online adopters and one of the first OEMs to sign up to the online revolution.

That was over 10 years ago.

Meanwhile we also run closed UK online auctions for Porsche GB and Bentley selling used stock to their dealers and for Lamborghini and McLaren to sell used cars to dealers worldwide.

But the biggest change in 2017 has been the adoption by leasing companies of selling their used stock online. We run weekly online auctions for LeasePlan and Arval. They have begun to appreciate how selling cars in this way beats physical auction therefore reducing stocking days. LeasePlan is now a group wide customer of the Autorola Group and sells used vehi‐ cles online in many other countries through our portal.

At a recent Vehicle Remarketing Association conference, the MD of Manheim, Tim Hudson, predicted that 80% of used cars in the UK could be sold online by 2022 reinforcing the speed of which the UK market is changing.

There are a growing band of UK OEMs also selling new cars online – Peugeot, Hyundai and Mitsubishi have all got websites in place where the consumer can visit and not only build and finance their new car but also get a price for their part exchange.

internationalfleetworld.com / 27

→

FLEET FOCUS United Kingdom

THE FINANCE FACTOR → Finance has been a key enabler for car manufacturers and dealers to sell new cars over the past few years with Personal Contract Purchase (PCP) and more recently Personal Contract Hire (PCH) accounting for 86% of all new private car sales according to the Finance and Leasing Association (FLA). The volume has reached such a level that the Finan‐ cial Conduct Authority which regulates consumer credit has launched a review into the risks caused by the recent expan‐ sion of motor finance which will be released in 2018.

The growth of used PCP is also very prevalent at franchised dealers with many selling used cars based on an up‐front deposit followed by fixed monthly payments and a fixed balloon payment that they can pay at the end of the contract to own the car. Ironically the steady supply of good quality two‐ and three‐year old ex‐PCP cars with 20‐30,000 miles on the clock coming back from drivers are those that are then being offered back into the market financed on PCP.

28 / internationalfleetworld.com

The UK’s current favourite used car is the Ford Fiesta, followed by the Ford Focus and then the Vauxhall Corsa. The Ford Fiesta is also the nation’s favourite new car followed by the VW Golf and Ford Focus. Mercedes has been concen‐ trating on increasing its sales and market share and has the C‐Class and A‐Class in the top 10 best‐selling list.

No article on the UK motor industry is currently complete without a mention of the word Brexit. The UK Pound has seen its value fall by 18% since the Brexit vote in June 2016 which has increased margin pressure on overseas manufac‐ turers. New car prices have risen as a result but only by 3%, with further price rises likely in 2018.

Currently Nissan, Toyota, Honda, Jaguar Land Rover, Vauxhall and Mini are the main car and van makers that produce vehicles in the UK and while many have already committed their futures to the UK they will also be keeping a close eye on the trade terms and conditions that will be in place post Brexit.

Source: FocusEconomics

British economics T

he UK economy continues to send conflicting messages. In December, consumers were less upbeat, while in November the services Purchasing Managers’ Index (PMI) dipped; however, the manufacturing PMI surged thanks to greater new orders from home and abroad.

Employment fell in July–October from the previous quarter, and real wages continued to shrink, albeit at a more moder‐ ate pace. On 22 November, the chancellor presented the mildly expansionary Autumn Budget, which included measures to boost housebuilding, reduce stamp duty for first‐time homebuyers, increase the minimum wage and allo‐ cate extra funding to health. These announcements could make it more difficult for the chancellor to meet the mandate of reducing the structural budget deficit to below 2% of GDP by 2020/21, despite better‐than‐expected borrowing numbers in 2017. In early December, the UK and EU reached an agreement on Brexit separation terms, which paves the way for talks on a transition period and a future trade deal early next year. Agreeing swiftly on a transition period will be vital to providing certainty to firms and safeguarding investment in the UK. Consumer prices rose 0.4% in December over the previous month, up from November’s 0.3% rise and matching analysts’ expectations. December’s figure was largely driven by higher prices for transportation and furniture, household equip‐ ment and maintenance.

Inflation in December ebbed to 3%, down from 3.1% in the prior month and in line with market expectations. The largest downward contribution to the figure came from air fares, which didn’t rise by as much as they did in the same period last year. Annual average inflation increased from 2.6% in November to 2.7% in December.

The Bank of England sees inflation reaching 2.4% in Q4 2018 and 2.2% in Q4 2019. FocusEconomics Consensus Fore‐ cast panelists expected inflation to average 2.5% in 2018 and 2.2% in 2019, as the impact of the depreciation of the currency gradually fades away.

Industrial production increased 0.4% in November over the prior month, up from October’s revised 0.2% uptick (previously reported: +0.0% month‐on‐month) and slightly overshooting analysts’ expectations. The result was driven by growth in the manufacturing and electricity, gas, steam and air conditioning sub‐sectors, while the mining and quar‐ rying, and water supply, sewerage and waste management sub‐sectors contracted. November’s cold snap – which came after unseasonably warm weather in October – was behind the solid performance of the electricity, gas, steam and air conditioning sub‐sector.

Industrial production increased 2.5% year‐on‐year in November, down from October’s revised 4.3% rise (previ‐ ously reported: +3.6% YoY). Annual average growth in indus‐ trial production was steady at 2.4% in November.

internationalfleetworld.com / 29

PROFILE Toyota

Global vision Regarded as being at the forefront of innovation, Toyota has led from the front with electrification and hybrid sales reached more than 1.5 million in 2017, contributing heavily to the global giant’s income. However, never one to sit on the fence, Toyota has big plans for the future.

“In just over 20 years, we have seen electrified new vehicle sales increase from under 500 sales to more than 1.5 million sales�

Shigeki Terashi, executive vice president, Toyota

30 / internationalfleetworld.com

view

Manufacturer Toyota Total sales 2017 9,384,000 Headquarters Aichi Prefecture, Japan Global market share 8.83% (2017 est.)

No. of models 34

from the top

Regional success story

I

n terms of markets, Toyota is a global force with success in every region of the planet. The company can trace its humble beginnings as Toyoda Automatic Loom Works, Ltd. making looms for the textile industry in the 1930s before forming the Automotive Production Division in 1933 and inally registering Toyota Motor Corporation Ltd. (Toyota) as a new company on 27 August 1937.

Today, the company is one of the largest in the world by revenue and was ranked ifth overall in October 2016 and had capital of a not inconsiderable £4.13bn (¥635bn) in March 2016. Consequently, in automotive terms, Toyota has frequently been classi ied as the world's largest automotive manufacturer over the past decade.

In 2008, Toyota ended GM’s 77‐year reign as the world’s largest car maker, hold‐ ing on to the top annual sales spot until 2011, when it surrendered the title after production was disrupted by natural disasters in Japan and Thailand. The Japanese company regained the lead in 2012 and kept its position until the end of 2015.

To reach this stage, the company has of course changed beyond recognition and today Toyota incorporates other brands to strengthen its market position and appeal to a broad demographic. This includes its luxury arm, Lexus, more‐budget oriented brand Daihatsu and commercial vehicle maker Hino. In addition, the company makes everything from sewing machines to industrial robots.

Toward the end of December 2017, Toyota had accrued enviable sales and by the year‐end had produced 9,007,511 vehicles; a 0.4% increase over 2016 and the irst time Toyota had increased annual production in ive years.

Sales outside of Japan numbered 7,751,000 (a 1.4% increase overall) and world‐ wide sales were an impressive 9,384,000, a 1.7% increase over the preceding year.

Worldwide exports increased too for the irst time in ive years and this was credited to increased exporting to North America, Latin America, Asia, Oceania and Africa. The most important market for the company is North America (31.6%), with Japan second (25.3%) followed by Asia (17.7%), Other Regions (15%) and inally Europe (10.3%).

For the iscal year ending March 31, 2018, Toyota revised its consolidated vehicle sales forecast from 8.9 million units to 8.95 million units, in consideration of the latest sales trends worldwide. The company also updated its consolidated inancial fore‐ casts for the iscal year. Toyota forecasts consolidated net revenue of ¥28.5tr, operat‐ ing income of ¥2tr, income before income taxes of ¥2.25tr, and net income of ¥1.95tr.

Naturally, electri ication is playing an important role in Toyota’s global sales and in 2017 the company sold more than 1.52m electri ied vehicles globally. The mile‐ stone was made three years ahead of Toyota’s of icial 2020 targets and in‐line with the company achieving its 2030 target of 5.5 million electri ied vehicle sales a year and its Environmental Challenge 2050.

“In just over 20 years, we have seen electri ied new vehicle sales increase from under 500 sales to more than 1.5 million sales,” said Shigeki Terashi, executive vice president, Toyota Motor Corporation.

TOYOTA Global sales, by territory Territory Japan North America Europe Asia Other markets Total

FY 2017 FY2018 2,274,000 2,260,000 2,837,000 2,790,000 925,000 970,000 1,588,000 1,550,000 1,347,000 1,380,000 10,251,000 10,250,000

*(Figures are for Toyota only and do not include Lexus).

% change -0.62 -1.66 +4.86 -2.39 +2.45 -0.01

How did Toyota fleet sales perform overall in 2017? Which were the strongest markets and products?

2017 was a very good year for Toyota in general and leet speci ically. We saw an overall increase of more than 10% compared to 2016*.

We saw signi icant share gains in the major leet markets (UK, Germany and France) and in Poland have increased leet sales by 24%.

Toyota C‐HR was a major contribu‐ tor to this performance, alongside our re‐vitalised Commercial Vehicle range.

Yaris and AYGO remain our biggest leet models.

A shift in drivetrain preference accelerated during 2017, with over 40% of corporate customers selecting hybrid electric power.

And how will previous experience with hybrids help? (“fuel cell vehicle 1m, battery and plug-in hybrid vehicle about 4.5m”) Our long history of developing, market‐ ing and selling alternative powertrains – over 20 years of hybrid electric, the development of the Mirai, and other mobility solutions – has prepared our network for the future and the advances of electri ied and other powertrains.

Will plans to deliver fleet vehicles via dealerships – which is being introduced in the UK this year – be mirrored across Europe?

TME provides overall strategic guide‐ lines for network and retail standards, but each National Marketing and Sales Company (NMSC) will develop their own local strategies, based on local leet customer requirements and logistic organisation. Other markets will look at the UK business model to see whether it would work for them.

Has Toyota found attitudes to diesel, hybrid and petrol drivetrains change across the region?

Clearly, leet customers are reviewing their policies towards a more sustain‐ able mobility. The rate of change and the development of new strategies differ slightly by region, but a general trend can be seen.

¡

internationalfleetworld.com / 31

PROFILE Toyota Car assembly plant locations

¡

Where are they made?

South America Toyota Argentina S.A, Buenos Aires, Argentina 2 Toyota do Brasil Ltd., São Paulo, Brazil 3 Toyota de Baja California, Tijuana, Mexico 4 Toyota de Venezuela, Porlamar, Venezuela

31 21

30

27

26

28

23 22

3

25

Asia-Pacific Arab American Vehicle Co., Cairo, Egypt 6 Toyota Kirloskar Motor Private Ltd., Bangalore, India 7 Indus Motor Company Ltd., Karachi, Pakistan 8 Aftab Automobiles Ltd., Dhaka, Bangladesh 9 Tianjin FAW Toyota Motor Co., Ltd., Tianjin, China 10 Sichuan FAW Toyota Motor Co., Ltd., Sichuan, China 11 GAC Toyota Motor Co., Ltd., Guangzhou, China 12 Kuozui Motors, Ltd., Taoyuan County, Taiwan 13 Toyota Motor Manufacturing Indonesia, Karawang, Indonesia 14 Astra Daihatsu Motor (ADM), Jakarta, Indonesia 15 Assembly Services Sdn. Bhd., Selangor, Malaysia 16 Toyota Motor Philippines Corp., Laguna, Philippines 17 Toyota Motor Thailand Co. Ltd., Chachoengsao, Thailand 18 Toyota Auto Works Co. Ltd., Bangkok, Thailand 19 Toyota Motor Vietnam Co. Ltd., Hanoi, Thailand 20 Toyota Motor Corporation Australia Ltd., Melbourne, Australia

41%

of Toyota EU sales in 2017 were hybrids.

5.5 million Electrified vehicles Toyota expects to sell by “around 2030”.

1997

The year Toyota introduced the Prius hybrid.

32 / internationalfleetworld.com

32-38

10

11

7

8 6

4

5

fleet in numbers

9

29

5

24

FIN

Japan Motomachi Plant, Toyota City, Aichi Prefecture, Japan 33 Takaoka Plant, Toyota City, Aichi Prefecture, Japan 34 Tsutsumi Plant, Toyota City, Aichi Prefecture, Japan 35 Tahara Plant, Tahara City, Aichi Prefecture, Japan 36 Toyota Auto Body Co. Ltd., Kariya City, Aichi Prefecture, Japan 37 Toyota Motor Kyushu Inc., Fukuoka Prefecture, Japan 38 Toyota Motor East Japan Inc., Kanagawa Prefecture, Japan

32

1

19 18 17

12 16

15 39

2

14 13

40 20

1

39

26

21

22

23

24 25

North America & Canada Toyota Motor Manuf’ing Canada Inc., Ontario, Canada Toyota Motor Manuf’ing Kentucky Inc., Kentucky, USA Toyota Motor Manuf’ing Indiana Inc., Indiana, USA Toyota Motor Manuf’ing Texas Inc., Texas, USA Toyota Motor Manuf’ing Mississippi Inc., Mississippi, USA

27

28

29

30

31

Europe Toyota Peugeot Citroën Automobile Czech, Kolin, Czech Republic Toyota Motor Manufacturing France S.A.S., Valenciennes, France Toyota Caetano Portugal, Oliveira do Douro, Portugal Toyota Motor Manufacturing Turkey Inc., Sakarya, Turkey Toyota Motor Manufacturing (UK) Ltd., Derbyshire, UK Toyota Motor Manufacturing Russia Inc., St. Petersburg, Russia

40

Africa Associated Vehicle Assemblers Ltd., Mombasa, Kenya Toyota South Africa Motors Ltd., Johannesburg, South Africa

New growth goal...

W

ith the introduction of the Toyota Prius in 1997, Toyota quickly became the market leader for hybrid vehicles. Its success has been the result of solid on‐ road manners, decent economy, adequate performance and low emissions – all powered through the divisive eCVT transmission.

Overall, this has allowed Toyota to install its hybrid‐know‐how in many of its models, with the powertrain accounting for 41% of sales for Toyota Europe and 52% for West‐ ern Europe, according to igures released in January 2018.

A raft of new models have been well‐received globally, with cars like the striking C‐ HR Hybrid almost stealing a march on stable mate Prius by sharing the same technol‐ ogy in an arguably more desirable and fashionable crossover package.

But Toyota is never one to sit still despite being reluctant to add anything with a plug to its ranks and Toyota UK has discontinued diesel versions of the Auris as part of a 2018 refresh, in line with customer demand shifting in favour of the hybrid.

During a press conference relating to Toyota’s long‐established corporate links with Panasonic who together are developing the next generation of solid‐state lithium‐ion batteries, Toyota’s CEO Akio Toyoda stated that by 2030 Toyota’s global sales will consist of “electric vehicle and fuel cell vehicle would total 1m; battery and plug‐in hybrid vehi‐ cle about 4.5m, so in total about 5.5m electri ied vehicles”.

Furthermore, Toyota has been a pioneer with hydrogen fuel cell vehicles, introducing the Mirai to market in 2015 after its of icial reveal at the 2014 Los Angeles Auto Show.

As of December 2017, the company had sold more than 5,000 units globally, which is no small feat considering slow up‐take due to a lack of supporting infrastructure. However, the company aims to install a power plant capable of producing water, electricity and hydrogen using bio‐waste as a fuel at the Port of Long Beach and generating enough hydrogen for the daily needs of 1,500 fuel cell vehicles.

Additionally, in May 2017 11 companies including Toyota signed an agreement to develop hydrogen recharging stations for fuel cell vehicles across Japan. The target is to offer 160 hydrogen‐refuelling stations and 40,000 fuel cell vehicles by 2020.

Both hybrids and hydrogen fuel cells, as well as plug‐in hybrids and, latterly, battery electric vehicles are all part of Toyota’s larger plan to be zero emissions by 2050, both in the vehicles it produces as well as how they’re made.

For the leet market, the UK is acting as something of a pioneer, with the rest of Europe watching closely. Toyota UK plans to deliver leet vehicles via dealerships and in Febru‐ ary 2018 introduced a new Business Drive Direct service to support leet and business customers by providing a prompt, simple and seamless experience that not only manages all aspects of vehicle sales, contract hire and inance, but also provides an introduction to services provided by the customer’s local retailer.

PROFILE Toyota TOYOTA fleet model range

THANKS to Toyota's established business in global markets and with worldยก wide production facilities too, the company is able to offer a diverse range of vehicles that typically cater for local markets. Only a few models are sold globally, including the Prius and C-HR crossover. Naturally, much of the range is available with hybrid power.

Porte/Spade Variants: 3/5dr hatch Markets: Japan.

Fuel: 4.5-6.3/100km* CO2: 103-145g/km*

Aygo

Etios

Yaris/Vitz

Variants: 3/5dr hatch Markets: Europe, Africa.

Fuel: 4.1-4.2l/100km CO2: 95-97g/km

Variants: 3/5dr hatch Markets: South America.

Fuel: Not available CO2: Not available

Variants: 3/5dr hatch Markets: Europe, Asia, Africa, North America, Oceania.

Fuel: 3.3-5.0l/100km CO2: 75-112g/km

Prius C/Aqua

Yaris L/Vios

Auris/Corolla

Variants: 5dr hatch Markets: Asia, North America, South America Fuel: 5.1-5.4l/100km CO2: 117-124g/km

Variants: 5dr hatch, 4dr sedan Markets: Asia, North America, South America.

Fuel: 5.1-5.4l/100km CO2: 117-124g/km

Variants: 5dr hatch, wagon Markets: Europe, Asia, Africa, North America, Oceania.

Fuel: 3.5-6.7l/100km CO2: 79-156g/km

Corolla/Levin

Avensis

Prius

Variants: 4dr sedan Markets: Europe, Asia, Africa, North America, Oceania.

Fuel: 3.7-6.6l/100km CO2: 96-150g/km

Variants: 4dr sedan, wagon Markets: Europe, Asia.

Fuel: 4.2-5.9l/100km CO2: 106-149g/km

Variants: 5dr hatch Markets: Global.

Fuel: 3.0-3.3l/100km CO2: 70.76g/km

Prius Plug-in Hybrid/Prime

Camry

Mirai

Variants: 4dr sedan, wagon Markets: Europe, Asia, North America, South America, Oceania.

Fuel: 4.2-9.3l/100km CO2: 96-215g/km

Variants: 5dr hatch Markets: Global.

Fuel: 0.76kg/100km (hydrogen) CO2: 0g/km

Variants: 5dr hatch Markets: Europe, Asia, North America.

Fuel: 1.0l/100km CO2: 22g/km

34 / internationalfleetworld.com

Allion/Premio

Avalon

Crown

Variants: 4dr sedan Markets: Asia.

Fuel: 6.1-6.4l/100km CO2: 140-147g/km

Variants: 4dr sedan Markets: North America.

Fuel: 5.9-9.8l/100km* CO2: 135-225g/km*

Variants: 4dr sedan Markets: Asia.

Fuel: 7.1-7.4l/100km CO2: 163-170g/km

Mark X/Reiz

Century

Sienta

Variants: 4dr sedan Markets: Asia.

Fuel: 8.8-9.1l/100km CO2: 202-209g/km

Variants: 4dr sedan Markets: Japan.

Fuel: TBA CO2: TBA

Variants: MPV Markets: Japan.

Fuel: 3.7-6.5l/100km* CO2: 85-149g/km*

Noah/Voxy/ Esquire

Verso/E'Z

Prius+/Prius V/Prius

Variants: MPV Markets: Japan.

Fuel: 4.2-6.8l/100km* CO2: 96-156g/km*

Estima/Previa /Tarago

Variants: MPV Markets: Europe, Asia.

Fuel: 4.5-6.8l/100km CO2: 119-157g/km

Variants: MPV Markets: Europe, North America, Oceania.

Fuel: 4.1-4.4l/100km CO2: 96-101g/km

Sienna

Alphard/Vellfire

Variants: MPV Markets: North America.

Fuel: 10.7-11.7l/100km* CO2: 246-269g/km*

Variants: MPV Markets: Europe, Asia.

Fuel: 10.5l/100km CO2: 218g/km

C-HR

RAV4

Highlander/Kluger

Variants: Crossover Markets: Europe, Asia, Africa, North America, Oceania.

Fuel: 3.8-6.3l/100km CO2: 86-144g/km

Variants: Crossover Markets: Global.

Fuel: 4.9-8.5l/100km CO2: 115-196g/km

Variants: Crossover Markets: Asia, North America, Oceania.

Fuel: 10.2-10.7l/100km* CO2: 234-236g/km*

Harrier

4Runner

FJ Cruiser

Variants: Crossover Markets: Asia.

Fuel: 4.7-7.7l/100km CO2: 108-177g/km

Variants: SUV Markets: North America.

Fuel: 13.0l/100km* CO2: 300g/km*

Variants: SUV Markets: Asia, Africa.

Fuel: 11.4/100km CO2: 264g/km

Land Cruiser (Prado)

Land Cruiser 200

GT86/86

Variants: SUV Markets: Global.

Fuel: 8.6-11.3l/100km CO2: 190-266g/km

Variants: SUV Markets: Asia, N. America, South America, Oceania.

Fuel: 9.5-13.4l/100km CO2: 250-309g/km

Variants: MPV Markets: Asia, Oceania.

Fuel: 8.3-10.3l/100km CO2: 184-277g/km

* Figures converted from economy tests other than NEDC

Variants: Coupe Markets: Europe, Asia, Africa, North America, Oceania.

Fuel: 7.0-7.8l/100km CO2: 161-180g/km

internationalfleetworld.com / 35

MANAGEMENT Corporate Mobility

For the love of leasing The ability to keep staff moving on a local, regional or national level can be a challenge. Dave Moss looks at how more flexible vehicle procurement options are helping to ease the pain.

36 / internationalfleetworld.com

“Leasing is currently the most popular way of financing company cars in 26 European markets”

“

If you can’t beat ‘em, join ‘em – or buy ‘em’”. That appears to be the approach taken by the major daily rental operators when faced with the potential threat posed by the leading car‐sharing companies.

According to new data from Frost and Sullivan’s global Automotive and Trans‐ portation practice, leasing is currently the most popular way of inancing company cars in 26 European markets, with an estimated 13.3 million units on lease in 2017. Operational or full‐service leasing accounts for 18.5% of leet vehi‐ cles in use, and inance leasing another 9.9% – with the EU ‘big ive’ countries alone accounting for two‐thirds of the European (EU26) leasing market.

Full service leasing is still growing fast in several emerging markets, particu‐ larly Eastern Europe and Asia, but the products and services offered are increasingly lexible, and widening far beyond vehicle sourcing, inancing, management and control.

Shwetha Surender, Frost and Sullivan’s industry principal for mobility, sees public attitudes shifting from viewing cars as products towards cars as a service, and evolving towards a broader view of Mobility as a Service. (MaaS) “This trend is iltering through to the corporate sector,” she says. “Increasingly, corporates are re‐evaluating the way they budget transport, shifting from a total cost of ownership approach to total cost of mobility, including expenditure on all modes of transport – such as car rentals and taxis.

It’s a change noted by Berno Klein‐ herenbrink, senior corporate VP commercial at LeasePlan. “The vast majority of our customers are still

focused on total cost of ownership,” he says. “The cost of inance and operating a vehicle is not increasing, as we, and our competitors, are willing to share savings with customers. But companies are revisiting mobility solutions – there’s a new trend – moving from pay for avail‐ ability to pay for use.”

The green factor

Free2Move Lease is part of the French PSA group’s leet mobility solutions enter‐ prise, currently being rolled out in Europe, beginning with the UK. Managing director Duncan Chumley (pictured above) agrees big changes are underway: “Large leets are looking at how they can reduce their environmental impact, asking if they can reduce or share the way people travel on company business to deliver a positive effect. And technology is improving as more vehicles become connected, allowing more analysis than has ever been possible before.”

Technology has already brought 24/7 mobility to the work environment: now its potential to revolutionise staff busi‐ ness travel is increasingly being recog‐ nised – and utilised. Providing mobile access across telematics‐equipped, connected cars, cloud‐based company

systems and mobility services from grow‐ ing numbers of specialist international providers promises more ef icient company travel – and improved controls.

Chumley sees an important issue here: “To make corporate mobility solutions work in the future, they must be simple, providing one single tool, most likely a smartphone, for users to look at all the options,” he says. “The key is how to successfully link internal and external platforms in one place, connecting to telematics in the car and mobility solu‐ tions outside, to decide on the best way to complete a journey – by car, train, or other means such as bikes.”

Such ‘always‐on’ mobile systems, allowing secure, controlled contact between a company, its vehicles, staff and chosen external mobility services, open up a new world of big data, capable of providing leet, travel and inancial managers with a continuous company‐ wide view of staff travel – and its costs.

“Today managers are focused on owned assets, but by using big data they could look at introducing alternative modes of transport, and analyse employee move‐ ments,” states Justin Whitston, chief exec‐ utive of Fleetondemand, a business MaaS provider. “Bene its include increased engagement, smart decision‐making, cost and time reductions, introduction of new mobility services ‐ and greater corporate social responsibility,” he adds.

A problem shared…

Technology is a big driver for adoption of shared leets and enabling MaaS, accord‐ ing to Surender ‐ though some disadvan‐ tages will have to be overcome. “There are concerns around system interfaces, and integrated mobility would need

internationalfleetworld.com / 37

¡

MANAGEMENT Corporate Mobility

For the love of leasing ¡

interactions with customer systems,” she says. “Those requiring deep connections will likely put opportunity into the ‘too hard to deliver’ box.”

That the leet management role must change as mobility technology advances seems certain. Could a merging of company services and systems eventually turn leet managers into travel managers, or the reverse? “We’re seeing a trend in which companies – especially in urban areas – are de ining mobility in broader terms,” believes David Voggeser (below), manager of HKP group, a Frankfurt‐based

international compensation consultancy.

“Instead of only describing how and which company car an employee may receive, more often now its about detail‐ ing which mobility solutions a company offers. Changes in peoples’ mobility behaviour are driving companies to rethink their corporate vehicle leet; sometimes making cars less desirable.”

Voggeser makes the point that in urban areas, cars can have downsides and that there are plenty of other mobility solu‐ tions which can be utilised. “It therefore makes good sense for companies to include available mobility solutions as part of their policies,” he reasons.

Look who’s driving A move towards mobility rather than leet management brings questions about who might need company cars in future – and their use. “Among the forces of change, some will affect attitudes to mobility,” says Tom De Vleesschauwer, transport and mobility practice leader at IHS Markit – and one of the authors of a study looking at future trends to 2040.

“The younger generation don’t necessar‐ ily equate car ownership with mobility

and its also likely that corporate social responsibility and ‘green issues’ will start affecting approaches, with larger public companies wanting to show their caring attitude and environmental responsibility – by relying less on cars, and encouraging car‐pooling and other initiatives.”

Chumley believes the days of company cars as status symbols may be passing: “Today, fewer people, especially those work‐ ing in cities, see a company car as a status symbol – and in some instances they may not even drive, so its not as relevant as it was for the younger generation moving into more senior positions,” he says. “One of the keys for company car drivers will be the bene it available if your car could be used differently, and by other people. Maybe rent‐ ing your car out could bring tax concessions, or allow a better car. From a company asset perspective, most cars represent a daily cost.

If costs can be reduced by using the asset more ef iciently, that has to be bene icial.”

Also looking forward, Surender thinks corporate mobility will eventually centre on comprehensive Mobility as a Service offerings, accessing multiple modes of transport. “The irst step is uptake of corporate carsharing, where in the last

CASE STUDY Corporate mobility management: Stuttgart, Germany In Stuttgart, corporate and urban mobility are now closely linked following recent attempts to reduce traf ic congestion and emissions. Support for companies to move towards more sustainable transport modes has become part of the city’s Sustainable Mobility Action Plan, run within the European Commission’s CIVITAS framework.

Over 55% of Stuttgart’s 472,000 employees were commuting every day, with 60% using cars and mostly travelling alone, so the City decided to promote better corporate mobility management. A series of conferences and workshops with local companies discussed strategies that could lead to more efficient, environmentally‐friendly employee mobility. Consultancy services were offered, including employee mobility behaviour surveys, which brought measures such as subsidised public transport ticketing, shuttle services, bicycle parking, and traffic

38 / internationalfleetworld.com

infrastructure improvements. Other suggestions included improving walking and cycling conditions, optimising fleets and encouraging car‐pooling.

Stuttgart’s Mobility Department advised on developing various new measures, introducing priority handling of enquiries about traf ic, public transport timetables and cycle routes. Joint workshops with municipal of icers and local public transport companies provided new insight for city centre companies where limited parking and congestion restricts deliveries, and can affect how potential staff view a future employer’s attractiveness.

Five major organisations took part, and over 10,000 employee mobility surveys were completed. Improvement measures are under way, and Stuttgart is now working towards a long term cooperative strategy for company mobil‐ ity management.

WAVE 1

WAVE 2

$ OWNERSHIP

Mobility as a Service

USERSHIP

TRANSFORMATION IN MOBILITY SERVICE INDUSTRY three years Europe has seen compound annual growth around 34%,” she says.

“There are over 15 corporate carsharing providers across Europe, ranging from leet and leasing companies to OEMs, as well as emerging third party telematics providers such as Vulog and Inverse.”

Corporate urban mobility is undergoing a hidden revolution...

Over 60% of EU citizens live in urban areas with populations over 10,000 people, and for many years the European Commission (EC) has worked towards providing cleaner and better urban transport – through targeted policies, and by inancing speci ic projects.

The EC’s Directorate‐General for Mobil‐ ity and Transport has funded the CIVITAS initiative since 2002, and its work is central to the Commission’s urban mobil‐ ity agenda. It is currently supporting three “living labs” projects, involving sustainable mobility solutions, and 14 EC‐funded research projects.

The CIVITAS 2009 Urban Mobility Action Plan is now delivering many new, efficient, and sustainable urban trans‐ port systems and approaches in

Europe – though the most high profile target so far announced is to phase conventionally‐fuelled vehicles out of European cities by 2050.

Currently over 250 European cities are either part of the organisation’s co‐funded urban mobility programmes, or are inde‐ pendently inancing similar high‐level commitments to introduce ambitious, sustainable, urban transport strategies.

Meanwhile “Cities for Mobility” promotes similar aims globally, encourag‐ ing cooperation between business, city administrations, transport companies and science. It seeks to safeguard smoothly functioning cities as attractive locations for the local economy, with members in over 50 countries in Latin and North America, Europe, Africa, and Asia.

Future urban area travel – could mobility budgets be the answer?

Mobility budgets are gaining acceptance amongst European companies using vehi‐ cles in urban areas where regulations limiting vehicle access exist or are planned to reduce congestion or pollution. Brus‐ sels has just introduced an environmental zone covering its 19 metropolitan areas,

and last year Belgium began a ‘Cash for Car’ plan allowing company car bene its to be exchanged for cash payments at a low tax rate – when used for alternative mobil‐ ity. France, which recently announced six more ZCA and ZPR environmental zones, requires mobility plans for companies with over 100 employees.

More vehicle usage restrictions are anticipated in major cities, mostly low emission zones or urban area congestion charging. The possibility of a Europe‐wide ban on diesel engines by 2040 has also been suggested.

Growing environmental and conges‐ tion‐based traf ic restrictions make care‐ ful planning essential to ensure ef icient staff mobility in future. While mobility budgets are one possibility, today a wide choice of available solutions allow lexi‐ bility and innovation in developing new urban transport policies for business. This might involve modifying existing arrange‐ ments ‐ or considering completely new options including public transport, so‐ called ‘last mile’ shuttles, corporate car sharing, ride hailing, and a growing range of smartphone‐accessible, subscription‐ based mobility services.

internationalfleetworld.com / 39

Peugeot 5008 Transforming into an SUV does little to dent the 5008’s family-moving ability, says Alex Grant.

SECTOR Large SUV PRICE : €27,000-€44,000 FUEL 4.1-6.1l/100km CO2 107-140g/km

W

hile it probably didn’t come top of many drivers’ padded, so quite firm for long trips, and they leave almost wishlists, the old 5008 was a great compact MPV. no boot space when they’re upright. Unlike the old car, Comfortable, adaptable and with competitive there’s no under‐floor storage for the load cover when CO2 emissions on its side, those who needed cargo and it’s not in use. If you have a sudden need to carry large people‐moving abilities would have had no reason to feel loads and fold both rear rows, it’ll end up in the middle short‐changed. row footwell.

But tastes change. MPVs have fallen out of fashion, and Peugeot is offering the usual Active, Allure, GT Line and GT Peugeot wants to wrap those rational benefits into some‐ trims, and all are generously equipped. The digital instrument thing with kerbside appeal. So the latest 5008 has taken a cluster and touchscreen infotainment system, with Android sideways step, becoming a seven‐seat large SUV with the and Apple smartphone mirroring are standard features, while Nissan X‐Trail, Škoda Kodiaq and Volkswagen Tiguan sat nav comes in at Allure. The cabin is well laid out, with Allspace firmly on its radar. upmarket grey fabric inserts, silver The foundations are brilliant. This is, accents and plenty of storage spaces essentially, a seven‐seat version of the dotted around. The only frustration is the excellent new 3008. Which means it’s infotainment system, which isn’t particu‐ home to a cabin that feels much more larly intuitive or quick to respond. expensive than its price point, and Depending on trim level, there are two Peugeot’s smart new family styling, its petrol engines (at 130hp and 165hp) thick metal window surround managing and a choice of 1.5‐litre 130hp, and 2.0‐ a half‐respectable job of masking the litre 150hp or 180hp diesel engines. extra bulk at the back end.

Brochure figures suggest the most effi‐ There’s more to this than a third row cient version is the entry‐level diesel, of seats. Inside, it’s closer to an MPV than but that’s likely to be limited in real‐ a typical crossover, with the 3008’s world use by its five‐speed gearbox. At single‐piece rear bench replaced with 118g/km, the BlueHDI 150 is in line with three individually sliding ISOFIX‐ smaller SUVs with downsized engines, The 5008 impresses for equipped seats. The wheelbase is and will be more comfortable with near-premium features 165mm longer, accommodating longer moving heavy loads. A 1.6‐litre, 120hp at a competitive price, rear doors for easier access to the third diesel is also available, but only with a row of seats, which are big enough for six‐speed automatic transmission, and but don’t be too tempted adults. Fold them away, and the boot there are no four‐wheel drive models. to opt for the small diesel offers as much capacity (beneath the Overall, then, it’s a very successful if you’re planning to use parcel shelf) as the 5008 MPV. transfer of the best MPV qualities into a that extra space.

It has the usual small MPV pros and bodystyle drivers might want as well as cons. Those third row seats aren’t well need. Full marks, Peugeot.

what we think

40 / internationalfleetworld.com

BMW X3 BMW’s third-generation SUV is a technological showcase – with plenty more to come. By Alex Grant.

SECTOR : Large SUV PRICE €44,000-€66,000 FUEL 5.0-8.4l/100km CO2 132-188g/km

W

new X3 offer the same off‐road themed xLine, perfor‐ ithin two decades, BMW’s SUV range has mance‐tuned M Sport, and the Luxury Line, to suit broad expanded from the first X5 to include every customer tastes. It features a softer new leather uphol‐ segment from the X1 to a the first pre‐production stery from the entry‐level version, and there’s an exten‐ examples of the X7 flagship. It’s a core product offer in fleet sive choice of technology to add as options. Most of the as much as it is among private customers, and continuing to connected and partially‐autonomous driving features grow. The X3 will play a large role in that expansion. from the 5 Series can be added here – BMW’s excellent To give some idea of this segment’s popularity, BMW Professional Navigation system with a wide touchscreen sold 50% more second‐generation X3s globally than it did is highly recommended. of the first, and it’s expecting to double that again with the With an electric version due in 2020 and a plug‐in third‐generation car. Considering this is a segment span‐ hybrid likely too, the X3 feels future‐proof in terms of driv‐ ning from Porsche to Volvo, that’s saying something. etrains, but the launch line‐up is entirely Sales aren’t all that’s growing; styling conventional. A new entry‐level 20i mirrors the X1, which is no bad thing, petrol and high‐performance M40i join but it’s now 5cm larger in every direc‐ the familiar 30d and 20d in European tion than the old X3, and also bigger markets, and all have four‐wheel drive than the original X5. But it’s also more and an eight‐speed automatic transmis‐ aerodynamic, despite adding larger sion are fitted across the range. wheels to meet customer demands, Though it’s grown between genera‐ while the platform is derived from the tions, the 20d remains a great fit. It’s latest 5 Series and splits its weight barely audible – though test cars had the 50/50 over the two axles, just like a optional acoustic glass, which certainly BMW saloon. helps – and the X3 drives more like a BMW’s broad SUV line‐up means sportwagon than a high‐side SUV. The there’s been no need to soften its practi‐ trade‐off is ride quality on M Sport cality in the name of sportiness. It’s wheels is typically firm, though it coped incredibly spacious and well glazed, The X3 offers an well with rough road surfaces, and the with loads of room in both rows and appealing package of variable steering system has feels space for three child seats across the space, flexibility and unnaturally over‐assisted at speed – it’s back. Though boot capacity is best dialled back to the heavier Sport unchanged, it’s reshaped to accommo‐ on-road driver appeal mode. But, in the 20 years since the first date bulky items, extended over a fold‐ which could make you X5s arrived in showrooms, BMW’s SUVs ing three‐piece rear bench, and question the need for have become just as suitable for the augmented by more cubby holes than the larger X5. variable needs of modern life as its even the messiest family could fill. sports tourers.

Trim levels vary by market, but the

what we think

internationalfleetworld.com / 41

INTERVIEW Sandra Tappermann-Pieper, LeasePlan

The next level of leasing Sandra Tappermann-Pieper, global director of marketing and branding at LeasePlan, speaks to Natalie Middleton about global marketing campaigns and new propositions for the corporate, SME and private sectors.

Q. What’s the basis behind the ‘What’s next’ global marketing campaign?

A. LeasePlan is always looking at what’s next and the answer is any ‘Any car, Anytime, Anywhere’. That’s what we’d like to make possible for everyone. We have a couple of examples where you can see we are really working on it. One this year is a completely new way of buying a used car using our ex‐lease cars. We plan to do that through a sophisticated digital platform and also link to a seamless experience where you can test‐drive your car and pick it up if you want to, but also complete the full buying process online with home delivery if that’s what you want.

What is unique here is that we talk about fixed price – no negotiations; we’re very transparent on pricing.

Another main strength is that a lot of people feel very uncomfortable buying a used car. Because our cars are leased cars,

potential buyers have full transparency of the maintenance and the full history of the car and can see immediately how well we have taken care of these cars. They can try the car for 14 days and if they don’t like it after this, they can just give it back with no questions asked.

We are also trying a new car subscrip‐ tion model in the UK from January. This model provides drivers with more flexi‐ bility for what type of car they’d like to drive and what period, and enables them to change it as required, for example when they go on holiday. We will trans‐ form ourselves more and more to this type of model in this future.

A ‘Click & Drive’ offering will also be introduced for the SME segment, offering special online lease deals, an all‐inclusive service package and fleet reporting along with fast delivery times – so if you order a car now, you can drive it next week.

Q. How are you targeting bigger fleets with the ‘What’s next’ programme?

A. If we look at the bigger fleets, we see more developments there to make them‐ selves more sustainable and we’re committing ourselves to a point where there are no emissions anymore.

We’ve already signed up to the EV100 campaign for multinationals, with plans to have all our employ‐ ees driving electric cars by 2021.

And we are also helping to migrate our customers to EVs with

an end‐to‐end service, so we offer initial consultancy on which vehicles will work for that particular fleet. We make sure that the charging infrastructure is in place and can ensure there’s just one travel card for every‐ one, including employees in hybrids.

The ‘360 formula’ will also be new for 2018. This initiative covers three elements. First of all, we cover the total cost of ownership: looking at the total cost involved and how we can make sure those costs become lower in future. The second part is how we can increase the sustain‐ ability of your fleet and last but not least, how we cn improve your employee satis‐ faction and driver safety.

Of course in the very far future we’re looking at autonomous vehicles, which will bring lots more opportunities; that’s the area where we really think we can also play a role.

Q. What about the shift to mobility solutions?

A. In certain countries such as the Nether‐ lands, we can already provide mobility cards, but it’s still really hard to see the take‐up. I believe we will see the market move to a position where mobility is provided through the vehicle. I can also imagine in the future that bigger compa‐ nies will say that if you just provide the driver with some cash, they can just sort it out themselves. That’s also going to be an area where we see the industry proba‐ bly evolving over the years.

“We’re committing ourselves to a point where there are no emissions anymore.”

42 / internationalflfeetworld.com

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NEWS from the global fleet community

INSIGHT from experts into the fleet industry

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SMARTER STORAGE

CONNECTIVITY ON THE MOVE

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

EMAIL GLOBALFLEET@VOLVOCARS.COM OR CALL 00 46 313258377

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

CO2 emissions 178 – 131g/km. Fuel consumption figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. Models may vary depending on market.