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FLEETW RLD All that matters in the world of fleet February 2014
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FLEETW RLD
contents INTERNATIONAL
FLEETW RLD All that matters in the world of fleet
February 2014
SE AT.COM
THE NEW SEAT LEON ST WITH ONLY 85g OF CO EMISSIONS PER KM* 2
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The latest news from the EV Fleet World.
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Why the industry needs more engineers.
SEAT FOR BUSINESS
ENJOYNEERING Average consumption: 3.2* - 5.9 l/100 km. Average CO2 mass emissions: 85* - 137 g/km.
* Available from February 2014 onwards.
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Managing Editor Ross Durkin ross@fleetworldgroup.co.uk
From LA to Tokyo... the future stars, and when they could be on your fleet.
Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Associate Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executive Darren Brett darren@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk
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In profile: The unstoppable force that is Volkswagen.
A sad farewell... I am sorry to see that GM will be winding down Chevrolet’s European operations by the end of 2015, just leaving models like the Corvette on sale. The brand has been in Europe for around 10 years and the product has been carefully thought out to appeal to European buyers. Most models have been sourced from GM's Daewoo operation in Korea. The price has been right and I've been impressed with all the models I have driven over the past few years. The Cruze in particular seemed just right. But with Opel gaining ground again thanks to a resurgent model line-up, and Chevrolet not meaning much to many European buyers with sales down 18.4% in 2013, it’s easier to understand why GM is calling time.
Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk
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FLEETW RLD 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
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Opel Insignia Country Tourer on the road...
John Kendall editor
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internationalfleetworld.com / 03
infleet
European new car downturn slows in 2013
EU slashes CO2 emissions limit for LCVs
he downturn in new car registrations in the EU T continued in 2013 albeit at a slower rate than in 2012 and with strong growth seen in December.
O emission limits from new LCVs are to drop C 28% by 2020 under new plans approved by the European Parliament.
Latest data from the European Automobile Manufacturers’ Association (ACEA) showed that registrations of 11,850,905 new cars were recorded last year, down 1.7% on 2012 and marking the sixth consecutive year of decline. In terms of annual volumes, 2013 is the worst year since 1995 (which had a total of 15 EU countries at the time), and the worst ever since ACEA began the series in 2003 with the enlarged EU. However, the 1.7% contraction marked an improvement on the 8.2% fall recorded in 2012, which was the sector's worst result for 18 years. In contrast, the month of December saw a 13.3% increase in new car registrations, the largest monthly year-on-year growth since December 2009 (+16.6%).
Under the changes, which have already been informally agreed, CO2 emissions from new vans will be capped at 147g/km by 2020 from the current level of 147g/km, and a new testing protocol is to be introduced to provide more reliable methods. The European Parliament also announced that the current system of ‘super credits’, which gives extra weighting to vehicles emitting less than 50g/km of CO2, will not be renewed and will expire in 2018. The changes also call for more trustworthy testing methods, with the loopholes in the current environmental performance test protocol having been highlighted.
Fleet Logistics targets European SMEs with fleet management solution
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leet Logistics International is launching a new supplier-backed initiative for the first four months of 2014, offering a stand-alone fleet management solution to SMEs that is said to offer significant cost and efficiency advantages. The new solution, which will be available from 20th January until 30th April, is aimed at national fleets operating from 50 to 300 vehicles and international, multi-country fleets of up to 1,500 vehicles. It is targeted at fleet markets across Europe, including the UK, France, Belgium, Netherlands, Italy, Spain, Germany and Austria. The new offering is being supported by leading vehicle manufacturers, dealers and leasing companies who are guaranteeing preferential terms for the duration of the campaign. Fleet Logistics will also provide full driver support for each new vehicle from order to return of the vehicles for all drivers.
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Euro NCAP names ‘best in class of 2013’ uro NCAP has named its ‘best in class of E 2013’, which includes the Qoros 3 Sedan, Renault ZOE, Lexus IS 300h and Kia Carens as well as the Ford Tourneo Connect, Jeep Cherokee and the Maserati Ghibli. The best-in-class models are those that have achieved the highest scores in their respective class. In 2013, a total of 33 cars were tested in seven different categories. The top achievers gained the highest overall scores, calculated from the results achieved in adult, child, pedestrian protection and safety assist tests.
For the latest news, visit internationalfleetworld.com
FIN fleet in numbers 200hp Power output of new Opel Astra GTC with the 1.6 ECOTEC Direct Injection Turbo engine, which has a combined fuel consumption of 6.6l/100km and emits 154g/km CO2. SOURCE: Opel
€190m six Approx spend by Daimler AG on the Mercedes-Benz facility in Vitoria, Spain to produce the new generation of medium-size vans starting later this year.
Period in months between Skoda new model launches from now until 2016 as the brand embarks on a major model offensive in line with growth plans.
SOURCE: Daimler
SOURCE: Skoda
fleetweet a few soundbites from a month in fleet
@steve_cars Steve Walker, site editor, Auto Express
The UK builds more cars than France for the first time since 1996. It all bodes well for the #WorldCup
@ D4N_J0NE5 Dan Jones, CV press officer , Ford UK
Ford European commercial vehicle sales rose last year, with sales up 6.3% and market share of 9.2% – highest level since 2007
@NYTjamescobb James G Cobb, automobiles editor, New York Times
If you think $53,995 seems a lot for- a German subcompact, does it mean you’re hopelessly old and out of touch? Asking for a friend #CLA45
@Lebeaucarnews Phil LeBeau, business correspondent, CNBC
85g/km Starting point for CO2 emissions of new Peugeot 308 SW, which goes on sale in Europe this spring. SOURCE: Peugeot
43%
Year-on-year increase in sales of hybrid models by Toyota Motor Europe in 2013. In Western Europe, 28% of all Toyota and Lexus vehicles sold are hybrid models, with the figure rising 94% for Lexus alone. SOURCE: Toyota Motor Europe
IHS Automotive says 82.48 million vehicles were sold in 2013. That’s 2.6 vehicles sold every second last year
@johnhendren John Hendren, English correspondent, LA Times
GM has much of the excitement at the Detroit Auto Show – first female CEO, car (Corvette) and truck (Silverado) of the year #NAIAS
@HenryJFoy Henry Foy, journalist, Financial Times
Global car industry spending more on R&D than ever before. Driven by competition from tech industry
@RR_MTX Roelof Reineman, electric vehicle consultant
30,000! A massive sprint on #EV numbers in the Netherlands last December
internationalfleetworld.com / 05
U.S. Energy Department invests €5.1m in hydrogen fuel cells
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he United States Department of Energy (DoE) has announced a $7m (€5.1m) funding package for hydrogen fuel cell vehicles and infrastructure, targeting a faster market adoption of the technology. Partnering with private companies and universities, the funding will be divided across four projects, three of which are transportation-based, as part of the Obama Administration’s aims to make the United States a leading market for hydrogen fuel cells. The two largest projects are based in Georgia and Tennessee, each of which will receive a $3m (€2.2m) investment from the DoE. Atlanta’s Centre for Transportation and the Environment will use its funding to develop a walk-in delivery van and retrofit 13 California-based UPS delivery vehicles with a hydrogen fuel cell drivetrain, aided by the University of Texas. FedEx Express, in Memphis, will work with Plug Power and Smith Electric Vehicles to trial hydrogen fuel
cell range extenders on its fleet of electric delivery trucks. Plug Power’s fuel cell system doubles the Smith Electric Newton’s 80-mile range, making it suitable for nearby delivery routes. Pennsylvania-based Air Products and Chemicals will receive $900,000 (€660,000) of DoE funding to develop a delivery truck capable of handling high pressure hydrogen, due for real-world trials at refuelling stations in Southern California. A further $250,000 (€183,000) funding will be provided to Kansas-based Sprint, to develop a hydrogen fuel cell backup power system for rooftop telecommunication systems which can be refuelled from the ground. Energy Secretary, Ernest Moniz said: “Reduced oil dependence is an important part of President Obama’s energy security and climate plans, and hydrogen and fuel cell technologies will help ensure America’s continued leadership in clean energy innovation.”
Toyota to help map Californian hydrogen network
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oyota is cutting the cost of its hydrogen fuel cell drivetrain and assisting construction of a refuelling network in the United States as it prepares to launch its first fuel cell electric vehicle in 2015. Speaking at the 2014 Consumer Electronics Show in Las Vegas, Bob Carter, senior vice president of automotive operations at Toyota Motor Sales USA, said research had shown a network of 68 strategically
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placed refuelling stations in California – a launch market – would serve 10,000 vehicles. Government funding is already in place to establish 100 in the next ten years. Carter said: “Yes, there are signi icant challenges. The irst is building the vehicle at a reasonable price for many people. The second is doing what we can to help kick-start the construction of convenient hydrogen refueling infrastructure. We’re doing a good job with both and we will launch in 2015.”
For the latest news, visit evfleetworld.com
Solar-powered Ford hybrid ready for real-world trials
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ord has shown a C-MAX plug-in hybrid concept which can be recharged in four hours using solar power, thanks to a moving canopy which tracks the sun across the sky. The C-MAX Solar Energi Concept, shown at the 2014 Consumer Electronics Show, is a joint project between Ford, solar specialist SunPower and the Georgia Institute of Technology, and will shortly begin real-world tests to assess its production feasibility. Its roof is covered with thin, lightweight photovoltaic cells, claimed to harvest 50% more energy than previous technology allowed. However, these cannot fully charge the C-MAX in a single day, so the concept uses SunPower’s solar concentrator, an acrylic Fresnel lens which focuses the sun’s rays onto the roof and adjusts to match the position of the sun. Charging can also take place through the conventional port, but Ford said the concept will allow the C-MAX to undertake 75% of journeys on off-grid renewable electricity.
How BMW i3 can be smartwatch-controlled
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he BMW i3 has become the first car capable of interacting with the Samsung Galaxy Gear smartwatch, as part of an internal project. Worn as a wristwatch, Samsung Galaxy Gear enables the user to access functions and applications from their smartphone via an additional touch screen or voice controls. Shown at the 2014 Consumer Electronics Show in Las Vegas, BMW has developed a smartwatch app which functions similarly to the BMW i Remote for smartphones, showing battery state of charge and range alongside the time display. It also allows the wearer to check whether the sunroof or windows are open, lock the doors remotely, send navigation data to the car and adjust the climate control settings to pre-heat or pre-cool the cabin, and all functions can be voice controlled. BMW has yet to reveal whether the app will be commercially available, claiming the project is aimed at demonstrating how the internet-connected i3 can work with the latest technology.
EV 2% in numbers
Predicted combined electric and plug-in hybrid vehicle share of the U.S. market by 2040, split evenly. SOURCE: U.S. Energy InformationAdministration
in short La Poste begins hydrogen range extender field trial French postal service, La Poste, has begun testing a fleet of Renault Kangoo Z.E. electric delivery vans fitted with SymbioFCell’s hydrogen fuel cell range extender. Said to double the van’s range with no payload reduction, the system allows the van to offer the same.
1.1l/100km Volkswagen up! unveiled Volkswagen has unveiled a diesel plug-in hybrid version of the up! supermini, based on the drivetrain from the futuristic XL-1. The study vehicle shares its the XL1's two-cylinder diesel engine but the battery and motor are upgraded for the heavier body. Volkswagen claims fuel consumption of 1.1l/100km with 27g/km CO2 emissions.
North Carolina introduces electric vehicle tax The North Carolina Department of Transportation has introduced a $100 (€73) annual fee for the state’s 1,600 electric vehicle owners, aimed at covering road usage and maintenance costs usually funded by fuel tax. Plug-in hybrids, which require petrol, are exempt.
EVtweet of the month @dfondiller (Dave Fondiller, director, public relations and communications, The Boston Consulting Group)
Jim Lentz, CEO of Toyota NA, says of hydrogen fuel cells; “We believe it is a viable technology for the foreseeable future.”@NAIASDetroit
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The recently-doubled network of Combo fast chargers operated by the Danish CLEVER scheme, located at Shell fuel stations. SOURCE: Clever
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LA and Tokyo Highlights
John Kendall on the key themes from 2013’s LA and Tokyo Motor Shows.
BMW opens up the 4 Series for 2014
Industry gets connected The Los Angeles Auto Show held its first Connected Car Expo as a precursor to the first press day, which attracted dozens of exhibits showcasing the latest automotive technologies. Audi revealed more details about its first-ever 4G LTE-equipped vehicle, the Audi A3 and S3 sedans. Coming to U.S. showrooms this spring, the A3 and S3 sedans represent some of the most advanced connected car technology available in the entry-level luxury segment. Among the features available through its Audi Connect suite of services are picture navigation, read-aloud Facebook and Twitter alerts, access to more than 3,000 Internet broadcast stations worldwide, personalised RSS news feeds and a new Audi Connect mobile app that allows advanced functionality between an Audi driver's smartphone and their car's MMI infotainment system. Other exhibitors showing off their latest advancements in the connected car world included Airbiquity, Covisint, Hertz Never Lost, Hyundai, Nokia HERE, Onstar, QNX, Qualcomm, Sprint, Telenav, Verizon, Volkswagen, Livio, Parkopedia, Clip Interactive, and Productification.
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BMW gave a world premiere to the second model in its 4 Series range at Tokyo while offering a first show glimpse into a forthcoming third model. The 4 Series Cabriolet follows the Coupe launched just a few months ago, while the high-performance M4 Coupe Concept, which made its debut at Pebble Beach recently, is appearing at an international exhibition for the first time. The 4 Series Cabriolet will replace the former opentop 3 Series. BMW is rebranding the more glamorous versions of the 3 Series while continuing to offer the practical models under their current badging. It will do the same with the 1 Series, re-christening some versions as the 2 Series. The 4 Cabrio is already in production and is set to go on sale in March, initially as the 435i, 428i and 420d. Further engines will be added soon afterwards. Dr Ingo Lasslop, the head of product management for both the 2 and 4 Series, says the emphasis with the new car was greater acoustic comfort in the cabin and improved accessibility for loading. The three-piece retractable hard top has a noiseabsorbing roof liner which lowers sound levels in the rear of the cabin by 2dB and makes normal conversation possible at speeds of 160km/h, says Lasslop. There is also a new design of windbreak, which improves the comfort of occupants when the car is being driven top-down. BMW's compact convertible now has a load assistance switch which raises the rear of the hard top when the car is closed to make it easier to throughload into the cabin. The US will be by far the major market for the car, followed by Germany and the UK, but China is coming up fast. These four countries will account for 66% of production. “The Chinese market is small but it is growing and the sheer size of the country puts it on the landscape,” says Lasslop. The importance of the Far East, and particularly Japan, for high-performance cars was decisive in BMW choosing Tokyo for the first show airing of the virulent green M4 Coupe Concept. If BMW follows its usual chronology, we can expect to see a production version soon, at either Detroit or Geneva.
New MINI moves on to the US MINI makes its debut in Japan The New MINI began its worldwide roll out at the Tokyo Motor Show. The new model will be available in Japan with three and four cylinder petrol engines. It will be able to access Facebook and Twitter and will even get its own Japanese navigation and infotainment system. The man in charge of exterior design, Christopher Weil said that despite its ‘New’ label, the MINI remains true to its roots, although the focus has been on the hexagonal grille rather than the famous headlamps. “But much of the design is typical MINI,” he said. “It has typical MINI landscaping which you can see from the bonnet and there is a little more sculpting along the sides to give the car a better stance on the road. You can also see the design cues from the original car with its short front and rear overhangs.” The new MINI will go on sale in Japan this year.
The New MINI road show moved to its third continent in as many days, making its US debut at the Los Angeles Auto Show. North America is now MINI’s largest market. BMW board member, Peter Schwarzenbauer, said the US had become the iconic car’s second home since it was launched there in 2002. He added: “Many people said that a small car could not succeed in America but we have proved them wrong. We now have 500,000 customers in the US. We have also proved that small cars can embody premium.” MINI sales in North America have already topped 55,000 this year and Schwarzenbauer said he was confident that 2013 will achieve a new record. “We have nearly doubled the dealer network in the past three years from 65 to 120 and we are also having a lot of success in South and Central America. “Mexico is currently MINI’s fastest growing market, and one in three BMW vehicles sold there is a MINI. Sales in Brazil are also up 20% this year.” Heading north, he added that sales in Canada had grown 38% in the past three years. “Worldwide sales in the first 10 months have already exceeded 250,000 despite the on-going economic problems in Europe. With MINI we created the small premium segment and have sold 2.5 million models since it was first launched. The new MINI will ensure that we stay at the leading edge of the segment because nothing can touch the emotional appeal of the car.”
“Many people said that a small car could not succeed in America but we have proved them wrong.” BMW board member, Peter Schwarzenbauer
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LA and Tokyo Highlights Jaguar banks on aluminium As well as taking the wraps off the new F-TYPE Coupe, Jaguar used the Los Angeles Show to present the latest iteration of the C-X17 SUV concept. While the car looks stunning with its new paintwork called Liquid Aluminium, design chief Ian Callum said; “The C-X17 demonstrates the potential of our new aluminium architecture. When we first showed it at the Frankfurt Show in September it was the most reviewed car there. “The response to the concept has gone way beyond what we imagined it would be. These are certainly exciting times for Jaguar with the F-TYPE transforming the image of the brand worldwide. “The new Coupe is a true sports car which, along with the Cabriolet, returns Jaguar to its spiritual roots. The F-TYPE is the most exciting car I have ever worked on.” The new Coupe was launched almost simultaneously at the LA and Tokyo shows.
Range Rover at a stretch The new long wheelbase Range Rover unveiled at the Los Angeles Show was always in the product plan when the latest version of the luxury off-roader was under development. Head of design, Gerry McGovern, said: “We had always planned for a long wheelbase for certain markets and the key to the look of the car is that it doesn’t look like a stretched version. If it passed you on the road you would think it was a normal Range Rover.” In fact it is 200mm longer and offers 186mm additional legroom in the rear. It is primarily aimed
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at markets such as China and the Middle East where owners often use chauffeurs as well as North America, which has already placed an order for 100 of them. The special Valloire White paintwork as revealed on the show car will retail at $199,000 in the US. Engines come from the standard Range Rover model, the 5.0-litre supercharged petrol V8 and the 4.4-litre V8 diesel. There is also talk of a hybrid long wheelbase version later in 2014.
Race to unveil new F-TYPE Coupe The big show-biz style event may have been happening in front of invited guests in Los Angeles, but the new Jaguar F-TYPE Coupe was given its first public airing, as it was simultaneously unwrapped at the Tokyo Motor Show. Not to be outdone by Tinseltown, the Tokyo event had its own celebrity, Japanese TV personality Norico, who made the introductions. The Coupe will be launched in the middle of next year and will share the same V8 and V6 engines as the Cabriolet, which took to the road earlier this year. As well as a change of body style, the Coupe will also differ from the Cabriolet with the introduction of the higher performance R model powered by a 550hp version of the V8 with 0–60 acceleration in just four seconds. Chief designer, Al Whelan said that the R version will get an enhanced interior specification with more stitching detail and a carbon fibre effect cen-
tre console. Otherwise Coupe models share pretty much the same interior as the Cabriolet apart from the additional rear bulkhead and parcel tray. Whelan added that the Coupe remains fairly close to the C-X16 concept seen at the Frankfurt Motor Show. “There have obviously been a few changes to get the car production ready but what we have achieved is a car that's stiffer and faster.” One thing that had to go, he said, was the sideways-opening rear hatch. “This came from the original E-Type but when we looked at the concept rationally, and at what customers want, we ended up with the conventional uplifting hatch door but I don't think this has reduced the impact. The car looks stunning from the rear. “We have worked hard with the engineers to get as much space as possible in the load area and pocket out every millimetre of space. Officially there is 407-litres of space, certainly enough space to get in two sets of golf clubs.”
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LA and Tokyo Highlights The Mann behind the return of Datsun The reintroduction of the Datsun brand this year is being masterminded by a man who started his career with Nissan when the company’s UK Sunderland plant opened 25 years ago. Trevor Mann was a line leader then. In January he takes over the brand new role within Nissan of chief operating officer. “I will be the head of the Datsun business unit,” he said at the Tokyo Motor Show. “We are currently at the introduction stage. We unveiled our first car, the Goal, in India in June-July and the Goal Plus in Indonesia in September–October. We will start production in India in early 2014.” Datsun will initially be introduced in four markets – India, Russia, Indonesia and South Africa. “These are cars suitable for specific markets,” said Mann, “but I wouldn't be surprised if we got requests from other markets later.” Mann describes his new role within Nissan as “the glue between the regions.” Nissan has split its operations up into six areas instead of the previous three to ensure greater local focus within a global conglomerate. As part of his new job he will be responsible for helping Nissan to hit its Power 88 targets – 8% profitability on its operations and an 8% worldwide market share.
Suzuki’s view to hype next Grand Vitara Suzuki’s iV-4 concept gives a strong clue as to what the new Grand Vitara will look like when it is launched in 2015. It clearly has the likes of the Renault Captur and Nissan Qashqai in its sights. The concept features Suzuki’s next generation ALLGRIP four-wheel drive system and alongside the iV-4 the company showed off the Crosshiker, a small crossover, and the X-Crawler which features a hybrid four-wheel drive system and a 1.3-litre engine with a new automated manual transmission. Suzuki’s other concept, the HUSTLER is described by the company as a crossover for people who “love nature, love the outdoors, and love sports.”
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Volvo makes a return Volvo made a return to the Tokyo Motor Show after pulling out, along with many other foreign brands, following the global financial crisis. It’s a comeback based on rising sales in Japan. Sales in 2013 had risen more than 25% compared with 2012 and reached their highest since the late 1990s. Volvo Japan execs said that its best seller has been the V40 which was voted the 2013 Imported Car of The Year in the country. Nothing new on the stand, but the company gave another airing to its Concept Coupe to give show-goers an insight into the design direction the Swedish company is taking. The concept sits on Volvo’s new modular SPA platform, which will be the base for models from the S60 up, the first will be the XC90 due at the end of next year. The Concept Coupe also previews Volvo's new plug-in hybrid technology, which it says will give V8 performance but with the economy of a four-cylinder.
“Datsun will initially be introduced in four markets – India, Russia, Indonesia and South Africa.”
Panamera goes large with Turbo S
Macan gives Porsche new entry model Porsche’s much-anticipated new Macan compact SUV does not compromise the brand but it will make it more accessible. Launching the car at the Los Angeles Auto Show, president and chief executive officer, Mattias Muller said; “We have been accused of being controversial in the past when we launched the Cayenne but when people got in the car they soon realised that it drove like a true Porsche and it brought new customers to the brand. “Now we are bringing Porsche capabilities to the booming compact SUV segment and the Macan will make the marque accessible to many people who did not think they would one day own a Porsche.” It comes with a choice of three high performance engines including two new twin turbo petrol units and a diesel turbo. Based on the Audi Q5 platform, the Macan – which is the Indonesian word for tiger – will be built at Porsche’s Leipzig plant at a rate of 50,000 a year. Sales and marketing chief, Bernhard Maier said the new model will become a mainstay of the Porsche range. He added; “Demand for urban SUVs has been rising fast and we can now provide a competitor with all the power and performance of a Porsche, and it can go off road as well. “The core of our brand is intelligent performance and we can now bring that to more people with our new entry level model.”
Porsche was one of several companies trying to juggle simultaneous international motor shows in Tokyo and Los Angeles as well as a third exhibition in Guangzhou, China. While the Macan and 918 Spyder both appeared at two of those events, Tokyo has the exclusive introduction of the Panamera Turbo S. This is the most powerful version of Porsche's luxury sports saloon to date, and will be offered in the long-wheelbase format which became available when the Panamera was updated. The stretched version of the car – 150mm longer than the standard model – is seen by Porsche as vital to the Chinese and Far Eastern markets, where a high percentage of customers prefer to be driven, while the standardlength model will be favoured by Europe and the US. Sales of the Turbo S are expected to be shared equally among the three regions. The forced-induction V8 engine develops 565bhp, 50 more than any previous Panamera, largely through changes to the electronic control unit, injection system and engine air supply, Porsche says. The chassis is the same as in the Panamera Turbo, but Porsche says it spent a lot of time developing the car to ensure that the stretched model does not suffer dynamically because of its greater length.
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LA and Tokyo Highlights New engine range for next Honda Jazz Honda announced at Tokyo that it is developing a 1.0-litre three-cylinder turbo petrol unit and a 1.5-litre four-cylinder engine. Honda has pledged to replace all current powertrains with new ones from its Earth Dreams family within the next few years. There will also be a normally aspirated version of the 1.5-litre, which appears in Japanese and American versions of the car. It is already on sale in both countries. Honda is targeting best-in-class torque outputs for its new small turbo engines – 200Nm for the 1.0-litre and 260Nm for the 1.5. Their respective power figures are around 120bhp and 205bhp, but both are still under development. The normally aspirated 1.5 develops 128bhp and 147Nm. Honda's desire to launch the car in Europe with new engines is one reason why it will not be available until the second half of 2015. But it has also not yet been decided where European versions will be built. Currently, Honda’s UK Swindon plant exclusively builds the car for the UK, while left-hand-drive versions come from an export-only factory in China. Swindon is switching its focus to the new Civic range – hatchback, Tourer and Type R – plus the CR-V crossover. Earlier this year Honda opened a new factory at Yorii in Japan devoted exclusively to small cars, including the Jazz. The car will also eventually be made in China, Mexico, Brazil, India and Thailand, any one of which could be commissioned to produce for Europe.
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New Civic Type R shows its aggressive streak Honda has given the world a first look at the 2015 Civic Type R, which has an aggressive new look to go with its vastly more powerful engine. The company has also revealed more details about the car, and announced that it is using it to try to set a new lap record for a frontwheel-drive model around the Nurburgring. Although still in its development stage, the new Type R as currently configured has shed the sober appearance of old and sprouted vast front wheel arches, an elaborate rear wing, larger rear wheel arches which don’t fit neatly around the doors and 19-inch wheels. The early cars are finished in matt black. At the Frankfurt Show in September, Honda announced that it will be switching from the familiar high-revving 2.0-litre engine to a direct-injection 2.0 turbo delivering around 40%more power – “At least 280hp”. The company now says the new engine will more than double the Type R’s torque output from 195Nm to 400Nm, and at much lower revs. All of this should lead to a significant performance upgrade with lower fuel consumption and emissions. Initially the car will be offered only with a six-speed manual gearbox, but Honda engineers say they are investigating adding a double-clutch automatic transmission. One obstacle, they say, is getting a DCT to cope with the high torque output of the engine.
SIMPLY CLEVER
The New ŠKODA Octavia Combi. For your fleet with amazing dimensions.
Combined fuel consumption and CO2 emissions for the Octavia Combi model: 3.8–6.1 l/100km, 99–141 g/km
Timeless design, unrivaled interior space, modern engines that are almost exclusively available in Green tec versions and high level of safety supported by advanced driver assistance systems, all that and much more is offered by the New ŠKODA Octavia Combi. A car that will perfectly represent your company while at the same time it will delight you in terms of operational costs and residual value. The new Octavia is available in many motorizations including a two-litre diesel with an engine power of 110 kW. Contact us and we will find the best solution just for you. At the same time we will most gladly introduce you to other ŠKODA car models. www.skoda-auto.com/fleet
INDUSTRY Operational Leasing
Just add service Leasing companies are as much in demand for their management services as their access to finance, reckons Steve Banner.
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he fact that a country’s economy is healthy and corporate pro its are buoyant does not automatically mean that businesses with plenty of money rolling in use it to buy their vehicles as opposed to leasing them. On the contrary: they may be just as likely to husband their cash and use a leasing company’s funds if they possibly can. Germany’s economic performance during the 2008/9 inancial crisis and subsequently has been solid and its corporate sector has remained strong. However this has not prompted more and more irms to invest in what are in effect depreciating assets. Sixt’s results for the first nine months of 2013 saw leasing revenue grow by 3.4% compared with 2012’s performance, from €282.6m to €292.2m. Much of that expansion was driven by demand from German fleets. “Despite a still-tense situation with margins in the leasing industry, the leasing business unit’s revenue margin was 4.8%, and thus higher than the same period last year – 4.5%, and close to the long term target of 5%,” says a company spokesman. Canada’s economic performance during the 2008/09 crisis and subsequently has been impressive, but its companies are showing no great inclination to switch away from leasing and spend their cash instead. Says National Leasing Group president, Nicholas Logan; “We are having record months and that will continue.” “The Canadian domestic market for equipment inancing is prospering in spite of troubled times in other parts of the globe,” says Peter Horan, president and chief executive of icer of De Lage Landen Financial Services Canada. “The demand for capital assets is still strong and leasing industry consolidation in recent years has provided opportunities for increased
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market share for participants who are willing to invest.” Both men are quoted in a recent survey of approaches to the inancing of vehicles and other assets in Canada produced by White Clarke Group and Asset Finance International. LeasePlan entered the Canadian market in January 2014 under a licensing agreement with Canadian leet management company Foss National Leasing, which will involve the latter operating newly formed subsidiary, LeasePlan Canada. What appears to affect attitudes towards leasing and the type of leasing employed – operational leasing for instance as opposed to finance leasing, as much as the behaviour of the economy and business profitability is legislation and taxation. The latter includes benefit-in-kind and emission taxation as well as the way in which company accounts are treated for tax purposes. Special local restrictions – on light commercial leasing in Turkey for instance – have a bearing too, as do cultural in luences. Possibly the country that invented vehicle leasing – packages were available as long ago as the 1950s, the Netherlands has one of the highest penetrations of car leasing in Europe at around one-third according to ALD and Arval. The concept is culturally widely accepted and triggers little debate. The impact that political decisions can have on leets and their approach to acquisition was writ large in Australia in 2013. Last July saw the Australian government announce that it proposed to scrap the statutory formula used to calculate FBT – Fringe Bene its Tax – for salary-sacri iced and company-provided cars. It did so without consulting leet operators or leasing companies, despite the fact that the system it was proposing to abandon had been in place for a quarter of a century. “The change would have put an end to
novated leases (leases which are offered by vehicle lessors as part of a salary package) as well as affecting leased vehicles with an element of private use,” say White Clarke Group/Asset Finance International in their study of Australian vehicle and equipment funding. The subsequent plunge in demand for leet vehicles was only arrested by an election later in the year, with the new coalition government dropping the proposed FBT change as it had promised to do during the election campaign. As a consequence says the study, “the market has rebounded... this episode is a prime example of the dangers of a government that under-estimates the bene its of
“Operational leasing has a strong appeal in more developed markets too.”
asset inance and demonstrates the need for a co-ordinated approach across the industry to keep government informed and on message.” Something which could have a signi icant long-term impact on the way in which vehicle leases are treated for accounting purposes is a package of proposals now under discussion. These were developed by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB). It will require all leased assets to be placed on a lessee’s balance sheet with the lessee incurring a corresponding liability for future rental payments. Under the
current standard, operational leases do not have to be included. If implemented the new standard will, initially at least, only apply to public companies that already report to IASB/FASB standards. It is nonetheless opposed by Leaseurope, which has recently launched what it refers to as a ‘Leasing for Growth’ campaign. Its aim is to demonstrate that leasing aids European economic expansion by being a major source of investment support for businesses and the public sector. The underlying message is that attempts to tamper with it could harm growth. The way in which leasing – in this case operational leasing – can bene it a fastgrowing economy is illustrated by what is happening in Turkey. According to igures from the Organisation for Economic Cooperation and Development and Eurostat, it enjoyed an average 5% annual growth in GDP every year between 2002 and 2012. The OECD adds that it likely to be the fastest-growing economy of any of its member states between now and 2017, with average annual growth of 5.2%. This has been accompanied by a rapid expansion in contract hire, according to a new report compiled by Frost & Sullivan. In ‘Strategic Analysis of the Turkish Fleet Leasing Market’ it predicts that sales of vehicles to contract hire companies will reach 123,000 by 2018. That compares with 69,000 in 2012, with the additional support services that usually accompany operational leasing underpinning much of its attraction. Operational leasing has a strong appeal in more developed markets too, a point made by LeasePlan. Such markets include Switzerland, where LeasePlan can boast a list of clients that includes Philips, Hogg Robinson and Dun and Bradstreet as well as locally based irms.
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INDUSTRY Operational Leasing
The line-up includes Allega, a leading ¡ Swiss aluminium producer and a subsidiary of Amari Metals Europe for the past ive years. All the cars used by its managers and sales staff have been acquired through LeasePlan under operational leases and it is not hard to see why, says Allega board member, Erika Koller. “Fleet management is not one of our core competences but we still have to keep an eye on mobility costs,” she observes. “If we don’t, then they can easily get out of hand. “Under our agreement with LeasePlan we get straightforward support if there is a breakdown or any damage and we have passed on all the administrative work that arises from maintenance, servicing and invoice handling,” she continues. “That allows us to concentrate on our core business. “If we did it all ourselves then I would probably have to deal with 20 different garages.” It is the support provided by LeasePlan that appeals to Andre Caronni of Philips, who lists part-time responsibility for leet management at the company’s Swiss operation among his other activities. “The support is vital because we have cut back more and more on internal leet management,” he explains. “We used to have one employee whose sole job it was,” he says. “Now I do it parttime and it takes up no more than 20% of my working day.” Adding value is essential believes Jeff Hartley, chairman of the Canadian Finance and Leasing Association and Foss National Leasing’s president, as he recently told the Canadian Business Journal (CBJ). As well as managing maintenance and controlling servicing and repair costs it can include providing fuel cards that show how much fuel was used by each vehicle in a single itemised bill at the end of each month. “We can calculate each driver’s taxable bene its,” he says. “It’s a cumbersome task but we’ve developed the tools for it. “We provide driver training, check driver records, manage accidents and can dispose of clients vehicles at the end of the lease on their behalf,” he adds. He went on to tell the CBJ that Foss National Leasing’s buying power – it is responsible for over 48,000 vehicles – allows it to ring hefty discounts from its suppliers: discounts that irms with ten or
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20 cars or vans could not hope to achieve. There is of course nothing to prevent companies that elect to purchase their vehicles outright or acquire them subject to a inance lease rather than an operational lease buying in some, if not all, of the support services they need. That is one reason why Hooksett, New Hampshire, USA based Merchants Leasing changed its name to Merchants Fleet Management.
“Most of our existing customers use us for much more than the leasing and inancing of their vehicles anyway and it opens up opportunities for us with companies that aren’t interested in leasing and inancing, but want management services,” says sales and marketing vice president, Tom Coffey. Those services embrace everything from accident management and telematics solutions to driver training and insurance.
Other approaches to mobility
he argument over whether leet vehicles are owned outright or leased in T some way could become an increasingly redundant one in future years as other approaches to mobility are explored. That at least is the view of Felipe Barroso, managing director of Zazcar – Brazil’s irst car-sharing operator – as quoted in KMPG’s 2013 Global Automotive Executive Survey. Though small at present and concentrated in the sprawling metropolis of Sao Paulo, Zazcar is growing rapidly, he says. Its ambition is to run a 3,000strong leet and it is targeting business users as well as private motorists. “Apartment blocks are a further source of new customers, with residents having shared access to cars within the complex,” he says. Daimler Mobility Services plans further expansion of its car2go sharing programme in 2014. It is now available in 25 cities worldwide, with the number of monthly rentals recently exceeding 1m. Perhaps companies will increasingly be looking at a lexible matrix of transport provision for their staff: one of which will include shared cars and public transport with the aim of getting employees to their destinations in as costeffective and environmentally-friendly a manner as possible. “We need to align Zazcar with other parts of the transportation jigsaw,” says Barroso. “One way of doing so would be by integrating our Zazcards with the RFID cards used on public transport networks.” One suspects however that it will be some time before the company car, however funded and managed, disappears entirely: and any driver of a company van will tell you that boarding a bus or a tram with a pallet stacked with goods is not exactly practical.
2014 calendar
INTERNATIONAL
FLEETW RLD
IFW’s guide to what’s happening in the fleet industry in the coming months – when, where and how to find out more info...
February 7-11 New Delhi 12th Auto Expo, New Delhi, India (PC, CV) www.siam.in 8-17 Chicago Auto Show (provisional), Chicago, USA (PC, LCV) www.chicagoautoshow.com 14-23 Canadian International Auto Show, Toronto, Canada, (PC) www.autoshow.ca March 6-16 Geneva International Motor Show, Switzerland (PC) www.salon-auto.com 13-18 Cairo International Motor Show, Cairo, Egypt (PC) www.mondial-automobile.com 21-26 Zagreb International Auto Show, Zagreb, Croatia (PC, LCV, CV) www.zv.hr/autoshow 25-29 Belgrade International Motor Show, Belgrade, Serbia (LCV, CV) www.belgradefair.rs 25-6 April Bangkok International Auto Show, Bangkok, Thailand (PC, LCV) www.bangkokmotorshowgroup.com/bangkokmotorshow April 8-11 NAFA Institute and Expo, Minneapolis Convention Center, Minneapolis, USA (PC, LCV, CV) www.nafa.org/conference 18-27 New York International Auto Show, New York, USA (PC) www.autoshowny.com 21-29 Beijing Auto Show, Beijing China International Exhibition Center Exhibition Hall, Beijing, China (PC, CV) www.chinaexhibition.com 29-1 May CV Show, National Exhibition Centre, Birmingham, UK (LCV, CV) www.cvshow.com August 12-21 Indonesian Motor Show, Jakarta, Indonesia (PC, LCV, CV) www.dyandra.com 28-7 September Moscow International Automobile Salon, Moscow, Russia (PC) www.oar-info.ru September 25-2 October IAA Commercial Vehicle Show, Hanover, Germany (LCV, CV) www.iaa.de October 4-19 Paris Motor Show, Paris, France (PC) www.mondial-automobile.com 29-30 Kiev International Motor Show. Kiev, Ukraine (CV) www.mvc-expo.com.ua 31-9 November Istanbul International Motor Show, Istanbul, Turkey (PC) www.odd.org.tr November 21-30 Los Angeles Auto Show, Los Angeles, USA (PC) www.laautoshow.com December 6-14 Bologna Motor Show, Bologna, Italy (PC, LCV) www.gl-events.it KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles
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INDUSTRY Engineering
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Engineering shortfall alert for car industry Industry leaders are growing concerned about a lack of engineers in the automotive sector, as Tony Lewis reports.
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“Imperatives for the industry include finding graduates with the skill to work on advanced manufacturing and product development.”
owards the end of this decade, there will be a “tremendous shortfall” in engineering talent – both graduates and apprentices – that will affect not only the car industry but also related industries, especially in the supply chain where employers are seen as less attractive. That’s the view shared by Graham Hoare, Ford's global director for vehicle evaluation and veri ication, and Jo Lopes, Jaguar Land Rover’s head of technical excellence. And it’s one echoed in the aerospace industry where it is described as a “bow wave” caused by a generation reaching retirement age with too few engineers coming through the system to replace them. While Hoare believes that the "Blue Oval is still a desirable brand to work for, so we are ok for today and tomorrow,” he adds that there is a big fall out of engineers after university. “Of the 800,000 engineering undergraduates just in the UK, only 22,000 remain in the pipeline. Some study in Britain and return to their homeland while 40% choose to use their degree for something other than engineering,” says Hoare, adding: “It’s really important to promote engineering as a way of changing the world.” Hoare’s colleague Paula Leach, who is head of learning and development, Ford of Britain, echoes concerns that a skills shortage is looming, “but because Ford is a relatively attractive employer any shortage is likely to hit us last.” Ford’s UK base takes the global lead in engine development and engine technology described by Leach as “pretty exciting especially with green engines,” so the company
needs engineers who can “focus on small changes to help us meet emission targets,” as Leach puts it. Other imperatives for the industry include inding graduates with the skill to work on advanced manufacturing and product development processes and design for lean, ef icient manufacturing. This means “refreshing the talent pool with much higher technical capability than previously required, especially in the areas of low carbon emissions concentrating on both advanced and conventional powertrains,” says Hoare. A report published in December by Engineering UK which projects the country’s capacity for industrial growth reveals that the shortfall of under 19s taking advanced engineering apprenticeships could jeopardise the UK’s ability to compete with leading economies, such as China and the US. The report highlighted a decline of 12.2% to 16,280 young people under 19 taking engineering-related Advanced Level Apprenticeships – a downward trend which, the organisation says, would damage the UK’s current and future capacity for growth if left unaddressed. Engineering UK chief executive, Paul Jackson, said at the time the report was published that, “positive action has been taken to address the skills gap at all levels. The recent Perkins review and announcement of investment in universities and further education colleges’ science and engineering facilities will build a foundation to accelerate skills growth in the sector. “However, as these indings show, it is vital we focus on attracting new talent into
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INDUSTRY Engineering
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Engineering shortfall alert for car industry
Recruitment drive Both Ford and JLR have launched higher apprentice schemes to attract young engineers.
the industry. As the UK economy’s engine for growth, it is crucial that engineering gains sustained support for education, training and careers inspiration.” It’s a message that the car industry is already heeding. “We try to intervene with scholarship programmes, sponsorship and outreaching to schools and colleges,” says Ford’s Hoare. “The role of engineers is to develop products for people so having input from guys and girls is really important. We have fewer women engineers than in China, Turkey (where Ford has a key manufacturing centre) and even Germany so we have to work harder in the UK to demonstrate that women can add tremendous value especially at human machine interface level. “Auto engineering is a great opportunity for women, 25% of all successful scholarship applicants are women which might not sound much but it is significantly higher than in the workplace at the moment.” Ford’s rate is also higher than at JLR where the female intake is around 15-16%, up from just 7% four years ago. JLR notes that seven out of 10 women who study engineering decide not to pursue it as a career. “There is still a misconception about engineering as a career,” says Robinder Gill, who is responsible for grad-
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uate, undergraduate and apprentice recruitment at JLR. He notes that for some reason not fully understood, women tend to study civil or chemical engineering rather than mechanical or electrical. Set against this background of concern, Ford has launched its higher apprentice scheme; the next intake is September 2014. This is a four-year scheme, which takes post-A level/ Baccalaureate students and combines an apprenticeship with a degree at Greenwich University in London. Ford recruited some 100 graduates in the UK in 2013. While most are British citizens, some are from within the EU or further a ield. In Germany, Ford recruited 40 graduates, a igure that embraces inance, HR and purchasing. JLR’s recruitment drive has been well publicised as it expands its product portfolio. It is recruiting between 200 and 220 graduates a year to work in product development and manufacturing. In 2010 it had what was then a record intake of 150 and in September this year [2014] it expects to be taking on around 230 graduates. JLR’s Jo Lopes says the car industry is much more diverse than it was, but laments the fact that seven out of 10 women engineering graduates choose not to pursue engineering as a career. “There are still misconceptions about engineering,” he says which is why JLR sponsors and mentors women engineers. One recent recruit is Lucia Carassiti, an Italian who studied materials engineering in her home country before taking a postgraduate course at Glasgow University. While there, she attended a Jaguar Land Rover ‘women in engineering’ networking event and learnt from other women what life was like at JLR. “Talking to other women was reassuring,” she said. Carassiti discovered that there was a need for lightweight materials specialists and joined JLR in September 2012. “I didn’t know much about the product, so I spent four months working at a Land Rover dealership in London which was fun,” she explains. But both JLR and Ford do better than the average – only 6% of the UK engineering workforce are women according to the Women’s Engineering Society.
To 2020... and beyond
O
ne of the concerns raised by both companies is how the industry will find the right engineers to take the car into the 2020s and beyond. As the day of the driverless car approaches, what you do inside a car becomes more important than what you do with a car. “The car is becoming a second home on wheels especially in Europe, North America and China with complete connectivity demanded by customers so we’re looking for engineers with human machine interface (HMI) capabilities, possibly from outside regular engineering,” says Ford’s Graham Hoare. “We need engineers who understand people’s behaviour,” he says, noting that particular skill is one reason an Apple iPod is superior to a regular MP3 player. The industry also needs engineers with multi-discipline capability. “Safety has been a major focus since the 1970s but there has been a revolution in the last 10 years in active safety – protecting the driver and passengers with active steering, active braking but also with onboard systems that, for example, let the emergency services know how many people are in a car so they know how many ambulances to dispatch,” says Hoare. The industry also needs those who understand Bluetooth® coding and infotainment systems, notes JLR. “We attract many people at Jaguar Land Rover – the shortage is in the supply chain who need the same people as us but struggle to find them,” says Lopes.
RVs
Analysing leasing and residual value confidence in the Eurozone and beyond...
Rise and fall
2013: A year of mixed opinion in the Pan-European leasing sector, says Experteye.
2
013 was a year of varied opinion, diverse optimism and mixed fortunes for the pan-European leasing sector. At the close of the year, UK forecasted residual values (RVs) were up by +5.4% while in Portugal they fell -5.2%. In France, servicing, maintenance and repair (SMR) budgets rose by +6.2%, but came down by -6.3% in Italy. France saw its rental rates climb by +4.8% when Portuguese fleet operators enjoyed a -5.7% reduction. The results come from the Experteye European Leasing index survey, which tracks forecasted residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies. Whilst showing some considerable variances across Europe, the survey also reflects areas of stability. In Spain there has been no movement in rental prices at all in 2013 (0%) with Italy only reporting a very minor +0.2% shift. UK SMR budgets hardly moved with a small -0.1% change; Portugal seeing a -1.8% fall. In Germany, forecasted residual values only altered by -0.5%, France by -0.8%, Italy -1.2% and Spain +0.9%.
Market summaries – 3 and 12 months to December 2013
FRANCE: French fleet operators experienced the largest increase in rental rates in 2013 with a +4.8% price rise. SMR budgets rose by more than any other nation surveyed (+6.2%), residual value forecasts dropped slightly (-0.8%) and car prices went up by +1.3%. In the latest quarter, from October 2013, rental rates rose by +2%, yet RVs stabilised with a marginal -0.4% fall and SMR -0.1%. GERMANY: With little annual shift in forecasted residual values but a -3.2% fall in SMR budgets, German rental prices fell by -2.1% in 2013. Over the last three months SMR budgets have come down by -2.2%, the largest reduction of all nations surveyed, and RVs have remained stable at -0.1%. Rental rates have remained unchanged during the quarter (0%). ITALY: Italian SMR budgets fell by the greatest margin in 2013, with a -6.3% reduction in costs. Forecasted residual values dropped by -1.2% and with new car prices rising by +1.6% the combination of pricing factors resulted in rental rates hardly moving (+0.2%). The latest quarter shows very little change in pricing, with a +0.1% rise in RVs, -1% fall in SMR and a +0.1% movement in rentals. PORTUGAL: Portugal suffered the largest fall in forecasted residual values with a -5.2% reduction during 2013. However, this has settled in the recent quarter with a +0.7% improvement in RVs. SMR budgets dropped by -1.8% during the year, but have risen by a very slight +0.1% since October 2013. Portuguese fleet operators have enjoyed the most significant reduction in rentals of all nations surveyed with a -5.7% fall in 2013 and -1.7% in the last quarter. SPAIN: Rental prices in Spain were static in 2013 (0%), with forecasted residual values improving by +0.9% and SMR budgets coming down by -2.7%. In the most recent quarter the picture remains relatively stable. Forecasted RVs are up +1%, SMR down -0.5% and rentals -0.2%. UK: The UK led the way in 2013 with its optimism in the future used vehicle market, with forecasted residual values rising by +5.4%. Yet there has been a shift the other way in the last quarter with a -3.3% fall. SMR budgets hardly moved all year with a -0.1% change. In the last quarter they have gone up by +0.4%. Rentals have crept up by +4% in 2013, the second largest rental rise of all nations surveyed, but have seen only a -0.1% change since October.
CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTALS Forecast Residual Values
Forecast Service, Maintenance and Repair Costs
Current Rental Rates
3-month change 12-month change 3-month change 12-month change 3-month change 12-month change France Germany Italy Portugal Spain UK
-0.4% -0.1% +0.1% +0.7% +1.0% -3.3%
-0.8% -0.5% -1.2% -5.2% +0.9% +5.4%
Notes: • The comparisons are for vehicles with a contract duration of 36 months/90,000km. • Twelve-month comparisons show change since December 2012. • Three-month comparisons show change since September 2013.
-0.1% -2.2% -1.0% +0.1% -0.5% +0.4%
+6.2% -3.2% -6.3% -1.8% -2.7% -0.1%
+2.0% +0.0% +0.1% -1.7% -0.2% -0.1%
+4.8% -2.1% +0.2% -5.7% +0.0% +4.0%
• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or twelve months ago. • RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.
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WEDNESDAY 9TH APRIL 2014 SILVERSTONE CIRCUIT, NORTHANTS, UK face to face with the fleet industry
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”Many congratulations on setting up a great day at Silverstone. Very professional. Both informative and enjoyable.”
”A great day, thank you for organising it, some clear decisions made. The day culminated in driving the Jaguar F Type V8 S around the international circuit simply awesome!” Nigel Boyle, Administration & Technical Director PD Hook
Terry Harvey Head of Group Tax Hitachi Capital
TS
EMEN L E W O SH
• indoor exhibition area • track driving experience • off-road driving experience • new technology demo area • conference & seminar area
”Face to face meetings and networking with like-minded peers still have a vital role to play in the fleet market, where relationships count for so much.” Ross Durkin, Fleet Show organiser
The different elements will provide senior fleet decision makers with an informative, innovative and interesting day at Silverstone’s worldclass circuits, allowing them to make informed business decisions. It’s all about bringing together fleet operators who share a commitment and passion for fleet.
TE WHY AT
ND?
”The Fleet Show was a great mix of driving, seminars and networking with manufacturers and fleet managers alike.Well worth a day out of the office.” Liz Hollands, ACFO director and former fleet manager at DTZ
2014! R O F NEW IENCE R E P X E 4x4
The event has developed into the UK fleet industry’s most important one-day event, with virtually every major fleet manufacturer represented, alongside a huge range of fleet service providers. Don’t miss out... ”We managed to talk to different suppliers that we would not normally have had exposure to and the experience of driving around the circuit was fantastic and made the day.”
thefleetshow.co.uk @theFleetShow
Rob Betts Managing Director The Document House Ltd
FLEET FOCUS Switzerland
Time for change? Comparative wealth means Switzerland does things differently from its EU neighbours. Could it be the model for business car changes, asks John Kendall?
Volkswagen Golf
Volkswagen is the best selling manufacturer in Switzerland, with the Golf the top selling car.
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“The strong Swiss Franc is encouraging Swiss car buyers to cross the border and buy a car for less than it would cost in Switzerland.”
S
witzerland, or Confoederatio Helvetica (Swiss Confederation) as the country is also known, giving rise to its international abbreviation CH, is one of the smaller countries in the middle of Europe. It is landlocked on all sides, sharing borders with Germany to the north, Austria and Liechtenstein to the east, Italy to the south and France to the west and south. Not surprisingly the country has a diversity of culture, demonstrated by the fact that it has four official languages: German, French, Italian and Romansh. German is the dominant language, spoken by around 65% of the population and 74% of Swiss nationals. French is spoken by 18% of the population and 20% of Swiss nationals. Italian and Romansh are spoken by far fewer, with around 12% of the population speaking Italian and 4% of Swiss nationals with Romansh spoken by just 1% of the population and Swiss nationals. The population is reckoned to be slightly less than eight million. Famed for its mountains and lakes, this helps give rise to some fairly specific transport requirements. It also ensures that the country has a wealth of renewable energy sources, with over 60% of Switzerland’s electricity produced from hydroelectric power. It is a wealthy country with GDP per capita among the highest in the world, according to the CIA. After recovering from the global financial crisis well with GDP growth of 3.0% in 2010, growth has slowed in subsequent years, dropping to 1.9% in 2011 and 0.8% in 2012, according to the CIA. “It’s definitely the strong Swiss Franc that doesn’t help,” says Aldo Faglia, sales director at ALD Switzerland. Financial services, particularly banking are probably among the country’s best-known businesses, as well as a highly developed manufacturing sector. CIA data shows that the service sector accounts for 72.5% of GDP, while industry takes care of 26.8% leaving agriculture to make up the 0.7% balance. The country is not part of the European Union, but is a member of the European Free Trade Area (EFTA) and the EU is an important trading partner. Switzerland’s secretive banking practices have also come under pressure from the EU, the US and international institutions, as the CIA points out. Switzerland has agreed to conform to OECD regulations on administrative assistance in tax matters, including tax evasion. The country has renegotiated its double tax agreements with a number of countries to incorporate the OECD standard, reports the CIA, and may impose taxes on deposits held by foreigners. GERMAN DOMINANCE Given the dominance of German language and culture, it is not surprising that German car manufacturers also dominate car sales in Switzerland. 2013 new car registrations reached 307,885 according to data from Auto Suisse (or Auto Schweiz, depending on your preferred language), a -6.2% decline compared with 2012 when 328,139 registrations were recorded. Volkswagen claimed the largest slice of the 2013 market with 40,925 registrations, representing a 13.3% market share. The
total was some -7.5% down on 2012. Audi took the second place with 21,254 registrations, -3.8% down on 2012, while BMW took the third place with 20,303 registrations, a 7.2% increase on 2012. Skoda claimed fourth place with 17,939 registrations, a -6.2% decline compared with 2012. 36% of registrations (110,820) were of 4x4 vehicles, an increase of 1.0% on 2012, while 9,331 vehicles were described as being fuelled by alternative fuels, representing 3.9% of the market and a 10% increase on 2012. Swiss buyers still prefer petrol to diesel, unusually for Europe, with diesel powered cars taking 37.1% of registrations with a total of 114,144, representing a decline of -6.0% compared with 2012. MARKET DECLINE The declines in the market are not simply due to the Europewide decline in the car market. As is often the case, statistics alone do not give a complete picture. Aldo Faglia at ALD Switzerland says that the strong Swiss Franc is encouraging Swiss car buyers to cross the border and buy a car for less than it would cost in Switzerland. “What we see is an increase in people going just across the border and buying the car from outside the country.” Mr Faglia says this is definitely something that has increased, although it is difficult to find data to support the suggestion. “I don’t see that much of a decrease. The importers are telling us that the level is below the highest sales they ever had but it’s much higher than last year in total.” So add in those cross-border purchases and the market may be in better shape than the Auto Suisse data suggests. The business car sector is quite different from some of the well-developed business car markets in Europe, reckons Mr Faglia. Some 45-60% of business car use involves companies paying employees an allowance to use their own cars, he reckons. “It seems that companies prefer to pay money and taxes on that money as a part of their expenses to leave the risk with their employees to pay for the car and its related costs for business use.” Around 20% of the sector involves companies buying cars for business use. Then full service leasing also plays a part. “We have around 17% – 22% of all business cars operated under full service leasing,” he says. “The rest is finance lease, which is around 5%–10%. In numbers this translates to between 300,000–350,000 vehicles in Switzerland under full service leasing or leasing contracts.” Altogether that would mean that there are about 1.0m to 1.2m cars in use for business, although because of the nature of the Swiss business car market, it is not easy to find the statistical support for this. The only overall market growth appears to be from BMW and Mercedes, which says something about the Swiss car market and the comparative wealth of the country. “AMAG is the importer of VW Group vehicles and they have a 23/24% share of the whole market,” which also reflects our portfolio”, says Aldo Faglia. “Then in second position we have Ford, which may be something ALD specific as we have a partnership with Ford. But if you look at the total business
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FLEET FOCUS Switzerland
TOP 10
best-selling cars in Switzerland Jan-Nov 2013
Volkswagen Golf
Skoda Octavia
BMW 3 Series
Volkswagen Polo
Volkswagen Tiguan
Peugeot 208
Audi A3
Audi A4
Suzuki SX4
BMW 1 Series
Registrations: 8,971
Registrations: 11,134
Registrations: 3,799
Registrations: 3,882
Top 10 selling car manufacturers – Switzerland 2013 Manufacturer
Registrations: 3,789
Registrations: 4,837
Registrations: 3,524
Registrations: 4,601
Registrations: 3,463
Top 10 selling LCV manufacturers – Switzerland 2013
2013 Total
2012 Total
Change %
40,925
44,258
-7.5%
Volkswagen
Audi
21,254
22,083
-3.8%
Renault
BMW
20,303
18,947
+7.2%
Mercedes-Benz
Skoda
17,939
19,132
-6.2%
Ford
2,741
Volkswagen
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Registrations: 5,073
Manufacturer
2013 Total
2012 Total
Change %
5,541
5,429
+2.1%
3,879
4,525
-14.3%
3,076
3,240
-5.1%
2,663
+2.9%
Mercedes-Benz
16,737
16,638
+0.6%
Opel
2,048
2,111
-3.0%
Ford
14,840
18,179
-18.4%
Citroën
2,003
2,280
-12.1%
Opel
14,192
15,307
-7.3%
Fiat
1,881
1,696
+10.9%
Iveco
1,770
1,779
-0.5%
Peugeot
1,702
1,740
-2.2%
Nissan
1,422
1,437
-1.0%
Renault
13,508
17,084
-20.9%
Toyota
12,646
13,038
-3.0%
Peugeot
11,785
12,298
-4.2%
Source: Auto Suisse
Source: Auto Suisse
market, I would say that it would be Volkswagen, followed by Audi, BMW, then Ford and Peugeot.” With Volkswagen as the best selling manufacturer, it’s not surprising that the Golf was the best selling car, using the January-November data from Auto Suisse, or that two other Volkswagen models appear in the top 10. In fact six out of the top 10 models are from the Volkswagen Group. Only models from BMW, Peugeot and Suzuki otherwise feature from outside the Volkswagen Group. In terms of favoured vehicle types for business use, Aldo Faglia at ALD points to the popularity of 4x4 models, reflecting Rene Buzek from Autorola’s comments about the Swiss market generally (see p.29). “As we are living in the mountains, it’s 4x4, then it’s the Combi, or estate car. We really like the diesel engine, despite the fact that we are not running high distances, which normally makes diesel an easier choice. We have an average of 25,000 to 35,000km per year.” The attraction appears to be high torque output for the mountainous roads. Aldo Faglia also points to downsizing policies, which make it more attractive to choose smaller diesels to maintain good torque output.
giving Volkswagen a market share of 19.2%. Renault took the second place with 3,879 registrations, a -14.3% decline compared with 2012. Mercedes-Benz took third place with 3,076 registrations, down -5.1% on 2012. Ford took fourth place with 2,741, up 2.9% compared with 2012, while Opel took fifth place with 2,048 registrations, -3.0% down on 2012. ALD’s Aldo Faglia points to the French manufacturers as popular makes for their customers, which he attributes to the comprehensive range of the models that Citroën, Peugeot and Renault offer. “Our 3 biggest customers are all on Peugeot and Renault vans, except the Swiss Post, which is Fiat oriented.” This must contribute towards Fiat’s improving sales in the 2013 LCV market. Mr Faglia also says that VW has recently won a contract with the Swiss Post too, so may also contribute to the company’s positive performance. The vehicle tax regime in Switzerland is mostly in the hands of the Cantons, but there are no specific taxes applied to business cars. So what of the future business vehicle sector in Switzerland? That will partly depend on what policy government chooses regarding future environmental sustainability. ALD’s Aldo Faglia expects city-based companies to buy fewer cars and look at broader mobility needs, shifting to pool or shared cars. This will impact on leasing companies whose business depends on providing cars. “Talking to our competitors, the main focus is to develop a new business model,” he says.
LCV SECTOR Turning to the light commercial vehicle sector, overall registrations fell by -5.1% to 28,896, but Volkswagen dominated in this sector too with 5,541 registrations, up 2.1% on 2012,
28 / internationalfleetworld.com
remarketing
Switzerland
VW Group dominates Switzerland Rene Buzek, Autorola’s Austria and Switzerland country manager, takes a look at how the Swiss used car industry is still very much a closed market.
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he Swiss new car market showed signs of consolidation after years of growth with sales down by around -6.2% in 2013, according to data from Auto Suisse, the Swiss automotive trade organisation, which shows that new car sales fell to 307,885 in 2013, from 328,139 in 2012. Volkswagen is the clear market leader with the rest of the German brands – Audi, BMW and Mercedes-Benz, arguing over slots two to four in the sales league. Skoda continues to grow in the country and the Octavia is now the second best selling car after the Volkswagen Golf, and Skoda has been competing with Mercedes as the fourth largest carmaker by sales. The Swiss market is relatively unusual in Europe, in that it has a strong petrol engine bias, with a high penetration of four-wheel drive and SUV models with automatic transmission. Generally cars are very highly specified and combined with the petrol/automatic transmission combination makes Swiss cars less desirable for export to other countries. Higher-powered petrol automatics inevitably mean higher average CO 2 emissions, which the market will have to address over the coming years to meet 2015 EU emission targets. Some experts are predicting a major move
to EVs over the next couple of years. Not only will this reduce average country CO 2 emissions but the high level of electricity generated from hydroelectric sources will mean a lower well-to-wheel ratio, which should appeal to corporates and green political parties. This would be an interesting change to the new car market, and would also start to alter the dynamics of the used car business as more and more EVs reach the second hand market. Unlike the majority of European countries, the import and export of used cars is relatively infrequent, with only some of the highly specified premium cars being offered for sale outside the country. Generally Swiss buyers prefer to purchase cars registered in Switzerland so all used car imports – except for the more exotic cars – are worth far less than the equivalent Swiss cars. The Swiss are also a conservative race and generally avoid the more vibrant lifestyle colours seen in other European markets. Overall Switzerland has a new and used market that works in isolation when compared with others in Europe, partly because of its tax system and its penchant for high-powered petrol cars.
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PROFILE Volkswagen
Power to the people’s car Volkswagen continues to drive growth at its parent Volkswagen Group, with more than two-thirds of all group vehicle sales carrying the VW badge, reports Mark Bursa. hile Audi brand represented the most spectacular W growth within the VW Group, Volkswagen passenger car sales worldwide rose 3.4% to 5.93 million vehicles in 2013 (5.74m in 2012), making a major contribution to overall group sales of 9.7m vehicles. This was a new record for the group, and up 4.3% from 9.3m vehicles in 2012. The total is well on course for VW’s stated objective of 10m sales a year by 2018. Group board member for sales, Christian Klingler, said:
“VW is preparing significant further investment globally in a bid to seize the global number one vehicle manufacturer spot.”
30 / internationalfleetworld.com
“Across the board, all brands contributed to these very positive results which are a very good achievement in light of the dif icult conditions in markets all over the world. As far as the current year is concerned, we expect market developments on a level similar to 2013. Even though the situation in Europe would appear to be stabilising, economic uncertainty will continue and the challenges we will be facing on markets will remain virtually unchanged.”
Manufacturer Volkswagen (Cars) Total sales 2013 5.93m (Europe: 1.64m ) Headquarters Wolfsburg, Germany No. of employees 285,147 No. of models 46 (global) 24 (Europe)
Driving forward VW chairman, Martin Winterkorn, says the brand will continue to invest in innovation and technology.
Global sales in 2013 Volkswagen passenger car sales performed extremely well in the Asia-Paci ic region, up +15% from 2.37m to 2.73m vehicles. The bulk of these sales were in China, where VW has two joint ventures, with Shanghai Automotive (SAIC) and First Automobile Works (FAW). With a total of 2.51m units delivered, the Volkswagen brand reported a year-on-year increase of +16.6%, up from 2.15m in 2012. The excellent result of 2013 was made possible by the good performance of locally produced models such as Lavida, Passat, Sagitar and Bora and newly launched models such as Tiguan, Gran Lavida, CC and Jetta. Growth in Asia more than outweighed a decline in Europe, where conditions remained dif icult, with sales falling -3.7% from 1.70m to 1.64m. VW brand cars accounted for 560,100 sales in Germany, down -4.4% from 586,100 in 2012. Deliveries in Western Europe (excluding Germany) were down -3.9% to 811,800 (844,500) units. In the Central and Eastern Europe region, 263,300 vehicles were sold, down -1.4% from 2012’s 267,100. VW brand deliveries in Russia, the region’s largest single market, fell -5.1% to 156,300 (164,700 in 2012). North American sales also declined. Volkswagen delivered 616,800 vehicles to customers in the North America region (623,300 in 2012), of which 407,700 units were delivered in the United States, down 6.9% from 2012’s 438,100. Klingler attributed much of the global VW brand growth to the latest-generation VW Golf, launched just over 12 months ago. “Our brand’s most important model, the Golf, has once again been a strong driver. The latest generation has got off to an excellent start and we delivered the 500,000th model in December, just one year after the market launch,” he said. “We expect to see further momentum from key countries such as China and the USA, where the Golf will be launched shortly. And we are constantly adding to the Golf family; the new Golf Estate has just gone on sale, and the Golf Sportsvan along with the e-Golf and the Golf Plug-in Hybrid will follow later this year.” Klingler added: “We will be facing new and dif icult challenges in 2014, but we are very well prepared thanks to our young and sustainable product range.” Golf goes electric e-Golf comes to market this year
Commercial vehicle sales Global 2013 sales for Volkswagen Commercial Vehicles also rose slightly (+0.3%) to 551,900 from 550,200 vehicles in 2012. Sales fell 3.5% in Europe from 325,000 units to 314,400 light CVs. Sales in Germany fell sharply – down -6.7% to 114,800 units (123,100 in 2012), though sales were more stable in the rest of Western Europe. Excluding Germany, 159,400 vehicles were shipped (down -1.1% from 2012’s 161,100). In Eastern Europe VWCV shipped 40,250 vehicles in 2013 (down -3.4% on 2012’s 41,670). By contrast, VWCV deliveries in South America grew by +8.3% to 160,400 (148,100 in 2012). Most of these (123,900) were sold in Brazil, where sales grew +9.1% from 2012’s 113,600. In Argentina, 24,200 vehicles were sold, a rise of +20.5% from 2012’s 20,100 units. In the Mexican market, which comes under the North American region, the brand saw sales rise by +24.5% to 9,850 (2012: 7,900).
Investment in automotive division Given Volkswagen Group’s strong position, the company is preparing signi icant further investment globally in a bid to seize the global number one vehicle manufacturer spot from key rivals General Motors and Toyota. Volkswagen Group has recently announced it will invest a total of €84.2 billion (USD114bn) in its automotive division over the next ive years. More than two-thirds of the injection will be used to improve vehicle ef iciency and implement environmentally friendly production. “We will continue to invest strongly in our innovation and technology leadership, despite the uncertain economic environment,” said Volkswagen Chairman, Martin Winkerkorn. Investments in property, plant and equipment in the automotive division will amount to €63.4bn. And around 60% of these investments will be made in Germany. “The amount being invested in Germany is a strong testament to the fact our home locations will continue to play a key role in the globally positioned Group, going forward,” said Winterkorn. “We are clearly committed to Germany as a manufacturing and development location. At the same time, we are also stepping up our investments in the markets outside Europe to further increase our global presence and capability.” Around 65% of the investment (€41.2bn) will go toward modernising and extending the product range for all its brands. New vehicles and successor models will be based on modular technology and related components. Much of the spend involves engines – the advent of Euro 6 standards means VW will have to “completely revamp” its engines. The group says it will continue to press ahead with the development of hybrid and electric motors. In addition, the company will make cross-product investments of €22.2bn during the next ive years, including spending to expand capacity, including new press shops and paint shops. VW’s joint ventures in China are not consolidated and are therefore also not included in the projections. They will invest a total of €18.2bn in new production facilities and products from 2014 to 2018, inanced from the JVs’ own funds.
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internationalfleetworld.com / 31
PROFILE Volkswagen
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Where
are VWs made?
China
European manufacturing Germany remains the cornerstone of VW’s European production network. Wolfsburg, the company’s founding plant, quietly celebrated its 75th birthday in 2013, and signi icantly increased its output over 2012 by 47,000 units to 807,000 units, largely thanks to strong demand for the new 7th-generation Golf, which accounts for around half the output at Wolfsburg alongside Tiguan and Touran, together with the Golf Sportsvan, which launches in 2014. Passat, which rivals Golf globally in terms of output, is made for European markets at Emden, and also at Zwickau, a plant that also makes Golf versions. Golf Cabriolet is made at Osnabruck alongside various Porsche models, while the showpiece ‘Glass factory’ at Dresden continues to build the luxury Phaeton model. VW tends not to mix and match different brands within its plants – rather, it focuses plants on a speci ic brand. Polo production is concentrated at Pamplona in Spain, while Scirocco coupe and Sharan MPV (as well as its badge-engineered SEAT sister, the Alhambra) are made in Setubal, Portugal. VW’s other major European plant is at Bratislava, Slovakia, which builds the Up! city car (plus its SEAT and Skoda derivatives) alongside large SUVs (Touareg, Porsche Cayenne and Audi Q7).
32 / internationalfleetworld.com
Volkswagen was irst mover into China more than 30 years ago, and while its early market lead was eroded as rivals looded into the market, the move is now paying dividends. VW Group now has 16 plants in China building cars, engines and components, and Volkswagen, Audi and Skoda vehicles are all assembled there. Volkswagen led China's vehicle market in 2013, overtaking General Motors. Last year, the Volkswagen brand led the market with sales rising by 16% to a record 3.27m vehicles, overtaking GM, which reported growth of around 11% to 3.16m units. Shanghai-Volkswagen, the joint venture between VW and SAIC established in 1983, last year built its 10 millionth vehicle, a Tiguan. Shanghai-VW currently operates vehicle plants in Anting, Nanjing, Ningbo and Yizheng, Jiangsu province. Production at a new plant in Urumqi, Xinjiang region, commenced a few months ago and a further plant in Changsha, south central China, is scheduled for completion in 2015. Meanwhile the newer FAW-Volkswagen JV, with plants in Chengdu and Changchun, as well as engine production in Dalian, sold 1.23m vehicles in the irst 10 months of 2013, up 21.1% year on year. Its market share was 9.8% by October. Of the total sales, 810,000 units were Volkswagen brand models, mainly Golf and Jetta, up 22% from a year ago. A range of Audis is also made at the JV.
JV success Lavida compact sedan is manufactured by ShanghaiVW for the Chinese market.
North America North America is seen as weak spot in Volkswagen’s global strategy. After an abortive plan to build the Mk1 Golf in the 1970s as the Rabbit, VW has served the US with imports from Europe and from its vast plant in Puebla, Mexico. Nevertheless, the US market accounted for just 5% of the group's worldwide total in 2013. However, it returned to the US as a manufacturer in 2011 with a new $1bn plant in Chattanooga, Tennessee, which builds the Passat and has now been con irmed as the source point for a new compact SUV. Both Passat and the new Jetta, built in Puebla, have been speci ically tailored to mainstream US consumers and re-engineered to be built at a much lower cost than their predecessors. These moves are starting to pay dividends, and VW Group is well on its way to achieving chief executive Martin Winterkorn’s goal of 1m annual US sales by 2018. At the recent Detroit Show, Winterkorn said Volkswagen Group was now also a force to be reckoned with in the US market: “The Group has almost doubled unit sales in the US since 2008, setting a new record of over 600,000 deliveries in 2013,” he said. Of these just over 400,000 were VWbrand vehicles. By 2018, VW wants to sell 800,000 VW-brand and 200,000 Audi-brand vehicles in the market. VW wants to boost the Chattanooga plant's annual production capacity to 500,000 units, adding several new models, including a lower-priced successor to the Tiguan and a larger, seven-passenger crossover. The Puebla plant currently builds four models for world markets: Jetta, Golf Estate, Beetle and Beetle Cabrio. It will start manufacturing Mk7 Golf early in 2014, for supply to North America and Brazil. Capacity is in excess of 600,000 units. Last year an engine plant in Silao in the central Mexican state of Guanajuato was opened to supply both Puebla and Chattanooga with TSI petrol engines. The USD550m plant is designed for a medium-term annual capacity of 330,000 units.
South America Volkswagen has a major presence in both Brazil and Argentina. Volkswagen’s Brazilian subsidiary was the automaker’s irst operation outside Germany, and celebrated its 60th anniversary last year. It has produced more than 20m vehicles in Brazil, including models designed and engineered locally. These include the Gol, introduced in 1980 and number one seller in Brazil every year since 1987. The Gol two- and four-door hatchback is currently in its ifth generation and accounts for 71% of family production, with 11% for the Voyage saloon and 18% for Saveiro pick-up and Parati estate. VW is the largest producer in Brazil and has capacity of around 900,000 cars at four manufacturing plants in São Bernardo do Campo, Taubaté and São Carlos, the latter making engines only, all in the state of São Paulo, and in São José dos Pinhais, state of Parana. The Parana plant was opened 15 years ago and is being upgraded to build the Mk7 Golf. Older Mk4 Golf models are still made in Brazil, though production has inally ended of the T2 Minibus, as it could not meet new Brazilian safety standards. Volkswagen has two production plants in Argentina: the Pacheco plant, located 36km from Buenos Aires, produces more than 100,000 Suran cars and Amarok pick-ups, mainly for export. The Córdoba plant, 710km from the capital, produces gearboxes at a rate of 1m a year.
Russia Volkswagen Group Rus produces cars in Kaluga, central Russia, 170km southwest of Moscow. The plant opened in 2007, and current annual production capacity is 150,000 cars, expandable to 225,000 vehicles per year. The plant currently produces three models – the Volkswagen Tiguan and Polo and the Skoda Fabia, and 700,000 cars have been made since the plant opened. In June 2011, Volkswagen Group Rus and Russian automaker GAZ signed an agreement for contract assembly of Volkswagen and Skoda vehicles at the GAZ plant in Nizhny Novgorod. Production started at the end of 2012 and models include Skoda Yeti and Octavia as well as Volkswagen Jetta. VW has invested around €1bn in Russia up to the end of 2012 and is planning to spend another €840m by 2015. Local component production will commence in 2015 when a new engine plant in Kaluga is commissioned. The VW Group is also planning to open a logistics centre near Moscow.
internationalfleetworld.com / 33
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PROFILE Volkswagen
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Where
are VWs made? cont’d
India Volkswagen Group entered India in 2001 with Skoda, adding Volkswagen brand in 2007. It has two factories in the country, at Aurangabad and Chakan, near Pune. The Chakan plant has cost €580m and is the biggest investment by a German company in India. Construction of the plant started in 2007 and full production capacity of 130,000 vehicles a year was achieved in 2011. Vehicles produced include VW Polo, Skoda Fabia and Rapid. Larger cars including Passat and Jetta are built at Aurangabad, alongside other Skoda and Audi models. Volkswagen Group India has about 5,000 employees working at its various locations. Over 3,500 employees work at Chakan with about 1,000 employees at Aurangabad plant and around 300 people at the national sales of ice in Mumbai.
Environmental targets South Africa VWSA’s Uitenhage plant produces right-hand drive Polo and CrossPolos for local and international markets, as well as the Polo Vivo for the South African market. Polo Vivo and Polo are South Africa’s best-selling passenger cars. In 2013, the Uitenhage plant produced around 110,000 cars, with roughly half of its output destined for export. A new press shop was opened at the plant in 2013. VWSA ceased production of the CitiGolf, based on the original Mk1 Golf, in 2009.
ASEAN and Pacific Rim Malaysia’s DRB-Hicom and Volkswagen plan to jointly invest up to €252m in a new car manufacturing facility in the Malaysian company’s automotive hub in Pekan. DRB currently assembles the Volkswagen Passat in Pekan but a new joint venture factory will be built to produce the Jetta and Polo models. The cars will be sold locally and exported to other ASEAN markets. Volkswagen Group is also mulling a €200m investment to build a car plant in Indonesia, according to local reports last year. Volkswagen is keen to expand its small presence in Southeast Asian markets as it strives to become the best-selling global automaker. “We will certainly become an active player in the region in the next years,” Michael Macht, VW group production chief, told Reuters at the 2013 Frankfurt Motor Show. 34 / internationalfleetworld.com
Volkswagen Group has stated a strategic goal of becoming the world's most environmentally sustainable automaker by 2018 and is planning to reduce the average CO2 output for its European line-up to 95g/km by 2020. Martin Winterkorn said: “That corresponds to a fuel consumption of less than four litres per 100km across all segments and vehicle classes. This is a Herculean task calling for the best efforts of all our 40,000 developers. We can do it." Winterkorn also stated that Volkswagen would reach its self-imposed target of reducing the CO2 output of its European new vehicle leet to less than 120g/km by 2015. Volkswagen intends to outperform by more than 12g/km the legal requirement for its vehicle leet.
Global fleet structure Fleet sales will continue to centre on mainstream models – Polo, Golf, Passat, with niche models such as Tiguan SUV gaining in popularity. Europe remains the main leet market – VW claims 50% of Western European sales are to corporate buyers, with the UK and Germany being the leading markets. Fleet sales tend to be structured nationally, but Volkswagen does have frame agreements with some multinational customers, generally under the umbrella of the Volkswagen Group Fleet International and MultiBrand Sales (VGFI) business, which is responsible for the cross-brand coordination of major leet business for the Volkswagen Group on an international level. This highly successful business coordinates international key account sales of Volkswagen, Audi, SEAT and Skoda vehicles, and VW Group claims VGFI is market leader in the ive largest individual EU markets – Germany, UK, France, Spain and Italy – in terms of key account business. Major leet customer contracts, training and events in Germany will be managed at VGFI head of ice in Braunschweig, Germany.
FIN
Light commercial vehicles Commercial vehicle production is concentrated at Hanover, which builds Transporter/Caravelle as well as some Amarok pick-ups. VW sources its larger Crafter panel van and chassis-cab model from MercedesBenz plants in Ludwigsfelde and Düsseldorf – it shares much of its structure with the Mercedes-Benz Sprinter. However, Mercedes has announced it will terminate this agreement at the end of 2016, leaving VW without a production site for the Crafter. Recent speculation suggests a new plant could be built in Poland to produce up to 100,000 Crafters a year from 2018. Volkswagen already produces Caddy and Transporter commercial vehicles in Poznan, Poland, as well as buses and engines at Polkowice, so production could be reshuf led in the short term.
fleet in numbers
3.4%
Rise in Volkswagen Passenger Cars’ deliveries in 2013 to 5.93 million vehicles.
€3.28 Power cost to run new e-Golf per 100km.
Blue going green VW BlueMotion brand goes from strength-to-strength
40
The next birthday for iconic mk1 Golf.
300
Golf BlueMotion
e-up!
Passat
Power output in hp of forthcoming Volkswagen Golf R
160km Quoted maximum range of VW e-up! on one battery charge.
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INTERNATIONAL
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February 2014
INTERNATIONAL
FLEETW RLD
driven
p38 Opel Insignia Country Tourer p39 SEAT Leon TGI p40 Mazda3 p41 Iveco Eurocargo
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Opel Insignia Country Tourer Lifestyle all-drive estate adds to Insignia’s appeal, says Dan Gilkes. SECTOR Upper medium PRICE €26,795–€37,000 FUEL 5.6–8.1 l/100km CO2 147–199g/km
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Equipment levels are high, with bi-xenon headlights and LED pel has joined a growing number of manufacturers daytime lights, front and rear parking sensors, 18” bi-colour offering a lifestyle 4x4 estate car alongside its SUVs. wheels, a powered tailgate, privacy glass and a new centre conIt’s a sector that Audi’s Allroad and the Volvo XC70 sole with an 8” touchscreen. Buyers can chose between the Inhave dominated for some time, but one that Opel sees telliLink R700 infotainment system or the IntelliLink Navi 900, adding to the appeal of its Insignia range. both of which will be able to download additional applications The Insignia Country Tourer has all the usual 4x4 styling from the GM App Store when it goes live in March 2014. cues, riding 20mm higher than the standard car, with black It’s a big car, with up to 1,530 litres of luggage capacity ‘self healing’ side mouldings emphasising its ability to when the rear seats are folded away. Even with the rear tackle rough tracks and grassy fields. seats in place the car has 540 litres of load lugging ability. It is offered with a choice of single and twin-turbo 2.0Cars with automatic transmission have a 2,000kg towing litre diesel engines, delivering 163hp and 195hp respeccapacity, which rises to 2,100kg with the tively, or with a 2.0-litre ECOTEC manual gearbox. If a towing hitch is fitturbocharged petrol engine with 250hp. ted the vehicle can also be supplied with All three can be ordered with a six-speed Opel’s electronic Trailer Stability Assist automatic transmission, then the petrol system, which uses the ESP system to engine and the lower powered diesel are prevent instability when towing. offered with a six-speed manual gearbox Though riding slightly higher than a that comes with Start/Stop technology. standard Insignia, the Country Tourer Fuel consumption ranges from loses little in ride comfort or handling, 5.6l/100km in the 2.0 CDTI manual, to providing a reasonably firm ride with 8.5l/100km for the petrol auto. Simigood body control through the corners. larly emissions span 147g/km of CO2 The FlexRide chassis has three suspenfor the diesel manual, to 199g/km for the petrol auto. sion settings, Sport, Standard and Tour, The electronically-controlled adaptive which are optimised for handling or for cruising comfort. In the Standard setting 4x4 drivetrain has a Haldex clutch and If you want all-wheel an electronic limited slip differential to the suspension automatically changes to drive, but don’t want the the way the car is being driven in reacmaintain traction. In the default setting high riding stance, or in and in Touring mode, 95% of torque is tion to driver input. transmitted to the front wheels, though The Country Tourer is considerably less many cases the limited expensive than similarly equipped cars up to 100% can be sent to the front or load capacity of a from Audi and Volvo, yet offers increased rear when required. In Sport mode the conventional SUV, carrying capacity. Opel isn’t expecting huge split is 70% front and 30% rear, rising to try the Country Tourer. numbers, but the Country Tourer should 40% front and 60% rear depending on driving conditions and speed. easily account for 5% of Insignia sales.
what we think
38 / internationalfleetworld.com
SEAT Leon 1.4 TGI The SEAT Leon gains natural gas power. John Kendall gets behind the wheel. SECTOR Lower medium PRICE TBA FUEL 3.5kg CNG/100km CO2 94g/km
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ith so much attention focussed on the search advantage is that since it is a spark ignition engine, it for shale gas around the world, SEAT’s launch sounds like a petrol engine – offering far lower noise levof the Leon 1.4 TGI at the Frankfurt Show last els than the diesel models – even though SEAT has done year seems timely. The car – otherwise identical to other an excellent job of installing the diesel engines in the Leon Leon 5-door or ST models, also launched at Frankfurt – is and by diesel standards they are fairly quiet. equipped with a compressed natural gas (CNG) converBecause the engine is turbocharged, the result is not an sion of the 1.4 TSI turbocharged petrol engine. economy car with poor performance. According to SEAT, It’s a dual fuel conversion, so the car can run on either it can reach 100km/h in 10.9 seconds from rest and go on petrol or CNG, which is useful if there is a shortage of natto a top speed of 194km/h. Out on the road, the performural gas fuelling stations where you happen to be driving. ance is certainly lively enough. Another consideration for The car carries two CNG gas tanks, capable of carrying fleet users is that the TGI does not have a particulate filsome 15kg of gas, which would take ter, like the diesel models. Drivers who the car around 400km. There’s also a cover long distances in a modern diesel 50-litre petrol tank, which adds a will be unaware of the filter, which will further 900km in range, giving a total re-generate itself automatically on long theoretical range of around 1,300km. journeys, burning off the soot that has The big advantage for gas is that accumulated. That is more difficult if many countries have tax concessions for the car is used mainly for short distance natural gas fuels, because the exhaust driving, where the exhaust gases rarely emissions are particulate free and low in become hot enough to do this. There other major pollutants. Low tax makes it are many fleets with drivers who use considerably cheaper than either petrol their cars like this and the TGI will be or diesel; CNG prices are currently in better suited to that kind of use, while the €0.75 to €1.34 per kg range across providing low cost fuel. Europe. As a fuel, it is far more efficient The TGI provides all the benefits of the than the other major gas road fuel, liqlatest Leon – comfort, driver appeal and The Leon TGI could uefied petroleum gas (LPG) and can even high quality construction too. Reference be attractive for fleets rival diesel in equivalent fuel efficiency. or Style trim options are available. whose drivers cover Power output is given as 110hp – There is room for five adults on board, short distances and slightly more than the 1.6TDI Diesel enwhile the recently-launched ST variant gine available in the Leon. The gas enprovides additional luggage space and would like a low gine offers 200Nm of torque, from as load flexibility in a stylish station wagon emission alternative low as 1,500rpm, so it feels a little like a package. In short, the Leon TGI just to diesel. diesel and doesn’t give that much away adds another set of options to a car that in torque to the 1.6 TDI engine. The big already has plenty to offer fleets.
what we think
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Mazda3 Mazda’s latest 3 draws on the success of the new Mazda6 reckons John Kendall. SECTOR Lower medium PRICE €19,540–€27,320 (approx.) FUEL 4.1–5.8l/100km CO2 107–135g/km
T
podcasts, Facebook and Twitter feeds. It’s standard equiphe Mazda3 made its debut at the Frankfurt Show last ment in some markets, but check your local specification. September and first went on sale in October. Not surHaving set a high standard of diesel refinement, ride and prisingly, it shares the KODO design language with handling with the Mazda6, it would have been a disapthe Mazda6 and also the SKYACTIV Technology, designed to pointment if the Mazda3 had not shown similar attention reduce fuel consumption and emissions using conventional to detail. Even so, diesel refinement does not necessarily drivetrains. Even so, the petrol hybrid model, using hybrid transfer to a smaller model, but Mazda knows how to get it technology to further reduce emissions and fuel consumpright. There is little to choose between the 6 and 3 in this tion will be sold in Japan, while Mazda showed a comrespect. It is impressively quiet and refined. pressed natural gas (CNG) Mazda3 concept at the recent Interior space is good for this Golf/Focus rival, with reaTokyo Show. Meanwhile, 2.2-litre diesel models are now sonable legroom in the rear seats, even with tall front seat available in Europe, as driven here. occupants. Drivers should find a good Otherwise there’s a choice of 100hp multi-adjustable seating position. Our 1.5-litre petrol in some markets, offering right hand drive example was equipped 5.1l/100km combined and 119g/km CO2 with a comfortable left foot rest and a emissions. A 120hp 2.0-litre SKYACTIV speed limiter/cruise control. petrol engine is available with six-speed The 120hp 2.0-litre petrol performed manual, or automatic transmission. This well, but sounded harsh when extended. also delivers 5.1l/100km and 119g/km The optional six-speed automatic gave CO2 in manual form or 5.6l/100km an indicated 7.0l/100km on our mixed with 129g/km CO2 with automatic transroute in Scotland. It delivers smooth mission. A 165hp version of the changes and came with steering wheel 2.0-litre petrol engine is also offered, mounted paddles for manual changes. with manual transmission returning The car felt like a scaled down 6, which 5.8l/100km combined and 135g/km is no bad thing. That means above averCO2. Predictably the 2.2-litre diesel, ofage ride and handling and a pleasing alfered with 150hp and either manual Mazda adds another ternative to European rivals. or automatic transmission offers the impressive car to the The only possible snag is the lack of a best consumption with 4.1l/100km and range. Good looks and smaller diesel engine, available with most 107g/km CO2 combined, or 4.8l/100km and 127g/km CO2 combined. rivals. Even so, SKYACTIV is clearly helping build quality plus impresto cut fuel consumption and emissions. The Mazda3 comes with MZD Connect, sive engines and low conthe company’s cloud-based connectivity But does it amount to more than many risumption are just what a system. Users must download the free vals offer with lightweight high strength fleet manager needs. Aha app for their smartphone to access steels, lowered friction, improved aerodynamics and more efficient engines? content including Internet radio, news,
what we think
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Iveco EuroCargo Iveco’s EuroCargo gets the Euro 6 treatment. Ian Norwell has the details. SECTOR Light/medium truck GVW 7.5 tonnes ENGINES 4.4 and 6.7 litres POWER RANGE 160–320hp
PERSISTENT PLAYER Like Mark Twain, reports of the death of the ubiquitous 7.5-tonner have been much exaggerated. Taking on the progressive legislative burden of tachographs and operator licensing, as well as the driver licensing restrictions of 1997, were all significant body blows, but the dear old thing refuses to lie down. It’s true that there has been a detectable move down, and up the weight range, to either escape the paperwork, or to lift gross vehicle weight (GVW) to 12 tonnes. But Claudio Zanframundo, managing director of Iveco UK and Ireland, says; “They still make up some 50% of the medium weight market and 6,400 were registered (in the UK) in 2012 alone, an increase of almost 25%. And we are forecasting another increase to almost 6,800 by the end of 2013.” THE SPICE OF LIFE Variety has traditionally been a strength of the EuroCargo’s appeal and that looks set to remain with the Euro 6 models. Engines, cabs, wheelbases, gearboxes and suspensions can be tailored to suit from 7.0-tonnes GVW upwards. Iveco claim over 11,000 ex-factory versions and they’ve concentrated on the need for bodybuilder utility with a flat upper chassis surface and body-mounting brackets that are designed to take body lengths from 4.1 to 10 metres. Transmissions at this weight have had a recent boost in driveability with the arrival of an AMT (automated manual transmission) for most brands, and the gearbox choices could be the fleet manager’s crucial decision. The new Euro 6 EuroCargo has a choice of 13: six manuals of five, six or nine speeds, four AMTs of six and 12-speeds, and three Allison five-speed torque-converter automatics. If you are a traditional buyer who prefers a stick for your drivers to stir, take one AMT onto the fleet and see how it runs. The early bugs were removed when
they were only available in 44-tonne gross combination weight (GCW) tractor units, so light rigid truck customers can take the benefit of that experience. EURO 6 POWER Iveco surprised the truck industry, and proved many competitive manufacturers’ engineers wrong, when they achieved Euro 6 compliance without recourse to EGR (exhaust gas recirculation), relying solely on a highly refined version of SCR (selective catalytic reduction). According to Martin Flach, Iveco’s product director in the UK, their Hi-eSCR has two distinct advantages over the industry norm of a dual SCR+EGR approach: “It’s about reducing complexity and avoiding the higher temperatures that come with EGR,” he says. There are arguments from the chemistry lab too. “Neither do we believe that putting exhaust gases back through the engine is conducive to a long service life,” adds Flach. Hi-eSCR is a patented system, which also avoids an actively regenerating diesel particulate filter (DPF), and the additional cooling equipment associated with EGR. Naturally a higher AdBlue consumption rate will come with the deal, but Iveco is hoping that this will be a small trade-off for fleet engineers hunting the fuel economy prize. Engines follow the industry trend of getting more punch from less, with the arrival of the new Tector 5 and Tector 7 engines (4.5 and 6.7 litres respectively). Horsepower choice ranges from 160hp to 210hp with the Tector 5 unit, and from 250hp to 320hp with the 6.7-litre Tector 7. Iveco have good engineering, exceptionally wide specification choice and relative simplicity all on their side. They will need all that to combat the hot competition from DAF, Mercedes, Volvo and others. They all have new trucks to sell.
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fleet in figures
Strong December curbs European decline December proved the strongest month of the year for European registrations, with the UK the strongest market of the year and Volkswagen the best selling manufacturer. John Kendall reports.
Dacia Duster
Dacia recorded the largest percentage increase with registrations up 23.3% on 2012
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013 closed on a relative high for European registrations. The total number of new cars registered in the 27 European Union countries ended the year at 11,850,905, compared with 12,054,057 in 2012, a decrease for
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2013 of -1.7%. Even though the market was still in decline, the rate has slowed. Just the same, as ACEA points out, EU registrations have now declined for six consecutive years and 2013 was the worst year for registrations since 1995
(for the then EU 15) and the worst since ACEA began the revised series in 2003 to take account of the enlarged EU. That said, December, which is usually a quiet month for registrations, partly because of the reduced number of sell-
ing days over the Christmas and New Year holiday period, was a comparatively busy month. Registrations reached 906,294, a 13.3% increase compared with the December 2012 total of 800,006. According to ACEA, this was the largest monthly year-on-year growth since December 2009. That said, ACEA notes that this was the third lowest number of new registrations for December since ACEA started recording EU27 data in 2003. LMC Automotive notes that the seasonally adjusted annualised selling rate (SAAR) reached 12.3m units/year in December, making it the best monthly performance of the year. Where commercial vehicles are concerned, December saw some extraordinary results as the Euro 6 emissions regulations came into force for all new registrations on 1 January 2014. Forward buying to beat the deadline meant there was a flood of registrations across the EU. This was particularly true in the UK, where manufacturers had decided to handle the derogation issues differently from most other EU countries. We will look at 2013 EU CV registrations in detail next month. Returning to car registrations, most EU countries posted increases for December, compared with December 2012. The Netherlands posted an increase of 115% for the month up from 18,214 in December 2012 to 39,163. JATO Dynamics explains this with company car drivers placing orders for new cars ahead of tax changes planned for January 2014. Among the larger EU countries, the UK finished the year with a strong performance. Registrations rose 23.8% for December compared with December 2012 to 152,918. Similarly registrations for Spain in December were up 18.2% to 60,513, helped by scrappage incentives, according to LMC Automotive. Ireland may have made large improvements in its debt crisis, but registrations were down -32.9% in December to 212 and down -6.6% for the year to 74,303. The UK posted an increase for the year, one of two EU top five countries to
do so, with 2013 registrations up 10.8% to 2,264,737. LMC Automotive attributes this to low interest rates, compensation payments from the mis-selling of payment protection insurance schemes to individuals and the improvements in economic activity seen in the country. Spain was the other top five country to post an increase, with total 2013 registrations up 3.3% to 722,703, but as noted previously, scrappage incentives have helped to bolster the market. Despite the Netherlands strong showing in November and December, the country recorded the biggest decline in registrations among the EU 27 in 2013. Registrations declined by -17.0% compared with 2012 to 417,036. Although France recorded a decline of 5.7% for the year at 1,790,456 registrations, the rate of decline has decreased considerably, from the worst of the financial crisis. Similarly Italy’s decline of -7.1% brought 2013 registrations down to 1,303,534. Although German car manufacturers continue to perform well around the world, German registrations declined by -4.2% in 2013 to 2,952,431.
Manufacturer performance Turning to manufacturer performance, the Volkswagen Group posted the highest number of registrations across the EU 27 countries with 2,957,653, a -0.6% decline compared with 2012. That also ensured that Volkswagen was the best selling individual manufacturer with 1,487,029 of that total, down -3.5% on 2012, but still 69% higher than second placed Ford, which recorded a total of 878,786 for the year, down -3.2% on 2012. Opel/Vauxhall took third place with 807,282 registrations, down -1.4% on the 2012 total for the company. Renault in fourth place recorded 787,351 registrations, down 1.1% on 2012. Peugeot took fifth place with registrations down -6.7% on 2012 to 723,318. Dacia recorded the largest percentage increase with registrations up 23.3% on 2012 to 289,016. Jaguar also recorded a
notable 14.4% increase to 26,520, while SEAT’s performance re lects the brands growing acceptance with registrations up 11.3% on 2012 to 279,460. Land Rover also continued its strong performance with an 8.6% increase to 105,181. Alfa Romeo posted the largest percentage decrease for the year, with registrations down -28.3% compared with 2012 to 62,271. Lancia/Chrysler posted the 2nd largest percentage decrease, not good news for the Fiat Group, with registrations down -20.1% to 73,905. Similarly Jeep registrations were down -13.9% to 22,122. Audi performed best among the premium brands, even though registrations slipped back -1.4% to 664,173. BMW was not far behind with a total of 613,152, down just -0.3% on the 2012 total and ahead of third placed Mercedes-Benz, up 5.3% on 2012, no doubt helped by the debut of the latest A-Class, to 594,876. Among the premium brands, Lexus saw registrations decline by -11.0% in 2013 to 22,314. Elsewhere Mazda’s product renewal is paying off with 2013 registrations up by 16.1% to 133,464. Unusually Hyundai’s registrations declined by -2.2% compared with the strong growth in recent years, but with 408,154 registrations, it was still a good year for the company. Hyundai’s performance was offset by sister brand Kia, up 0.4% on 2012 to 329,285. The Volkswagen Golf was the bestseller of 2013, based on JATO Dynamics data for January to November, when the model was significantly ahead of the second placed Ford Fiesta with 433,452 registrations to 271,912. The Golf Mk VII has undoubtedly helped boost sales, which at the end of November were 5.9% up on the same period in 2012. Based on the same data, the Peugeot 208 saw registrations rise significantly, up 59% during the January to November period to 223,762. Other notable increases were posted by the latest Renault Clio (+16.9%), BMW 3 Series (+16.7%) and Audi A3/S3/RS3 (+25.2%).
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SIMPLY CLEVER
The New ŠKODA Octavia Combi. For your fleet with amazing dimensions.
Combined fuel consumption and CO2 emissions for the Octavia Combi model: 3.8–6.1 l/100km, 99–141 g/km
Timeless design, unrivaled interior space, modern engines that are almost exclusively available in Green tec versions and high level of safety supported by advanced driver assistance systems, all that and much more is offered by the New ŠKODA Octavia Combi. A car that will perfectly represent your company while at the same time it will delight you in terms of operational costs and residual value. The new Octavia is available in many motorizations including a two-litre diesel with an engine power of 110 kW. Contact us and we will find the best solution just for you. At the same time we will most gladly introduce you to other ŠKODA car models. www.skoda-auto.com/fleet