International Fleet World February 2016

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet February 2016

Driven

Future finance

Spotlight

Jeep Cherokee Kia Optima SEAT Ibiza

Why operational leasing could work for your fleet

Under the skin of the new MercedesBenz E-Class

Interview Citroën CEO Linda Jackson’s unconventional perspective

Pace attack New Jaguar F-PACE spearheads JLR’s fleet assault internationalfleetworld.com

THE SEAT LEON ST

MORE SPACE FOR YOUR BUSINESS

TECHNOLOGY TO ENJOY The SEAT Leon ST combines contemporary dynamic design with unbeatable practicality, versatility and driving pleasure. It offers a host of functional equipment details that significantly benefit everyday usability.

SPACIOUS AND VERSATILE

YOUR CAR IS YOUR OFFICE

TECHNOLOGY / SAFETY

The 587-litre boot (expandable to 1.470l) has room for all the tools and equipment you need to drive business success.

Easy Connect with Full link (MirrorLink, Android Auto and Apple CarPlay) connects your smartphone to your car. This allows you to use it safely and surely.

Safety has been enhanced with the use of advanced technology, including Drive Profile, the Adaptive Cruise Control or the Tiredness Recognition System.

SEAT FOR BUSINESS Average fuel consumption from 3.6 to 6.0 l/100 km. Average CO2 mass emissions from 94 to 138 g/km.

SE AT.COM/BUSINESS

INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

February 2016

Driven

Future finance

Spotlight

Jeep Cherokee Kia Optima SEAT Ibiza

Why operational leasing could work for your fleet

Under the skin of the new MercedesBenz E-Class

Interview

contents

Citroën CEO Linda Jackson’s unconventional perspective

Pace attack New Jaguar F-PACE spearheads JLR’s fleet assault

internationalfleetworld.com

Publisher Jerry Ramsdale jerry@fleetworldgroup.co.uk

16 Spotlight: Mercedes-Benz E-Class.

24 Steve Zanlunghi talks all things Jeep.

30 JLR’s global fleet portfolio.

36 Kia’s new Optima on the road...

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

04 Fleet Review John Kendall considers the effects of oil being below $30 a barrel.

06 Inside Knowledge Henner Lehne of IHS Automotive on 2016 sales predictions.

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

14 RVs Analysing the latest trends in the Spanish leasing sector.

16 Spotlight An in-depth look at Mercedes-Benz’s high-tech new E-Class.

18 Feature The potential for operational leasing in the SME sector.

22 Interview Citroën CEO Linda Jackson on getting ‘Back in the Race’.

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

24 Interview Steve Zanlunghi on Jeep’s growing international appeal.

26 Feature Austria’s stable business car sector and enthusiasm for EVs. 29 Remarketing Autorola on the rise of the single provider solution in Austria.

30 Profile Jaguar Land Rover’s key new models and expanded global network.

34 Launch Report Jeep Cherokee / Kia Optima / SEAT Ibiza / Suzuki Vitara S.

STAG Publications

®

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

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

internationalfleetworld.com / 03

fleet review

This month, editor John Kendall looks at the future for platooning autonomous vehicles and the ramifications of low oil prices.

Autonomous Driving

I was attending the annual press briefing for Iveco Trucks in the UK a few days ago and got into conversation with UK managing director Stuart Webster about autonomous driving. He doesn’t think it’s likely to happen that quickly, mainly because of the outstanding legal and insurance issues that need to be resolved. There also appear to be two autonomous driving systems under development, one effectively for cars and the other for trucks. Truck manufacturers favour vehicle platooning, with vehicles opting to join convoys behind a lead vehicle, usually a truck, while cars will have greater independence. A long line of vehicles in a platoon could make joining and leaving a motorway a problem.

So there is plenty still to be done. It would be interesting to see statistics on the effect of electronic stability control with adaptive cruise control and autonomous emergency braking on accidents and injuries. These systems are a start, although more work still needs to be done.

Brand image I have attended a number of Iveco’s annual press briefings over the past 25 years and one of the recurring themes is that of market share and brand image. It’s one that I have heard from sister brand Fiat too.

Both companies have argued that customers’ perceptions often lag behind

04 / internationalfleetworld.com

reality, dating back 20 to 30 years to when the brands had quality issues.

Both have a point. Their products stand up well against the competition these days, but persuading customers that is the case is another matter. On the other hand, brand image can have a halo effect where even brands that have experienced problems face fewer difficulties than they might because the brand image is strong and customers appear to be more forgiving. I think we are seeing that to a degree at the moment with VW. We have heard apocalyptic warnings from some about the dire consequences after VW’s problems in the US, but so far, sales appear to be holding up reasonably well. Would a brand with a lesser image be having a more difficult time? I think so.

Oil prices Some doubted that the price of oil would fall below $50 a barrel a few months ago and I was one of them. Now that the price has dipped below $30 a barrel, it is difficult to see where this is going to end, other than in some potentially dramatic price increases when the oil producing nations have finished slugging it out. For now, the latest prediction is that it could fall to $10 per barrel. For once that is good news for fleets and the knock on effect of cheaper transport for the things we buy ought to benefit us all. It is also an opportunity for politicians to try and ensure that things don’t go back to how they were. Oil prices have not only been driven by demand, but also by how the supply has been controlled. We should not slacken our search for alternative energy supplies to end our dependence on oil. Cheap oil is a distraction. We need to keep looking.

visit internationalfleetworld.com

HIGH POTENTIAL EMPLOYEE

Opel’s compact-class flagship.

High functionality, plenty of space and a powerful 1.6 BiTurbo CDTI engine with 118 kW (160 hp) make the Astra Sports Tourer the first choice for your business.

In addition, the Sports Tourer comes with premium trim features: powerful IntelliLux LED® Matrix headlights and the hands-free power-operated tailgate that lets you open and close your boot with just a wave of your foot.

Find out more at opel.com

The new Astra Sports Tourer.

Fuel consumption combined 4.2 l/100 km; CO2 emissions combined 110–107 g/km (according to R (EC) No. 715/2007).

inside knowledge

90 million global car market in 2016?

Sales forecasts from IHS Automotive suggest the outlook for 2016 is likely to be defined by smaller gains, but also less pain than 2015, according to Henner Lehne, senior director, global light vehicle forecasting.

ncremental volume growth in the US and Europe is forecast to be solid but less spectacular, while on the other side of the balance sheet, further downside from Russia, South America and some big ASEAN car markets will be less of a drag on global volumes as their impact lessens, having already suffered severe market contractions.

This, combined with the new autos targeted stimulus in China, is likely to provide a mild uplift in global sales growth of 2.7%. The 2016 global forecast from IHS forecasts sales of 89.8 million units.

The U.S. auto market has been powered by a combination of low interest rates and low fuel prices, allowing for market momentum to remain strong.

Although interest rates will be a slight headwind, buying conditions will remain positive, allowing the market to continue to grow in 2016 and 2017. IHS estimates there is still strong upside potential as a strengthening US economy and stronger employment takes the US market to 18 million units over the next two years or so.

In Western Europe, momentum is also strong, even after the recovery last year being well above expectations. The current forecast for a 2.5% to 3% uplift in sales in Europe could be even stronger. However, some northern European markets are peaking. In Spain, some payback is expected after eight consecutive scrapping incentives in recent years comes to an end.

Despite on-going political and partial economic

I

Wednesday 11th May 2016 Silverstone

06 / internationalfleetworld.com

troubles in the European Union, Western Europe, together with the U.S. will build the fundamentals for solid global demand growth in 2016.

Optimism for sales activity in the Chinese market has increased dramatically since the government announced measures to reduce the vehicle purchase tax on smaller cars. However, continued stock market volatility may intimidate some buyers. Despite a slowing economy, IHS Automotive now expects light vehicle sales growth to increase 5-6% in 2016 – enough to add more than 1.3 million units of additional sales.

For several markets in the ASEAN region, 2016 will be a year of transition from the disappointing sales slump in recent years. In the key volume markets of Thailand and Indonesia, a return to growth should begin by the second half of 2016 and build momentum the following year. India’s auto market should accelerate as lower energy prices and falling interest rates allow a return to double-digit growth for the first time since 2010, according to IHS forecasts.

For Brazil and Russia, 2016 is likely to be a difficult period. Both markets have now been in decline for three consecutive years and 2016 will likely extend that to four years as their economies continue to contract. Brazil’s vehicle market is likely to decline 14% this year. In Russia, the market will continue to contract as well, due to the lingering effects of low oil prices and sanctions on the Russian economy and its exchange rate.

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manufacturer news

IASB publishes new lease accounting standard

ALD Automotive to acquire MKB-Euroleasing Autópark

A

LD Automotive is to acquire Hungarian fleet A management company MKB‐Euroleasing Autópark and its Bulgarian subsidiary MKB‐Autopark eood.

new lease accounting standard (IFRS 16 Leases) has been published the International Accounting Standards Board (IASB).

The new standard becomes mandatory from 1 January 2019 and is intended to bring all leased assets onto the balance sheet, giving a more complete picture of a busi‐ ness’s financial commitments.

The launch of a new standard has been worked on by the IASB since 2006, prompted by concerns over ‘struc‐ turing opportunities’ under the current standard whereby businesses using operating hire didn’t need to disclose assets on the balance sheet, only in the notes to the financial standard.

The final standard differs from the draft issued in 2013 and includes some major simplifications which mean that short term hire vehicles, informal vehicle extensions and ancillary leasing services (e.g. mainte‐ nance) do not have to be reported. It also gives fleets the option to report leases on a portfolio level rather than individually.

Hans Hoogervorst, IASB chairman, commented: “The new standard will provide much‐needed trans‐ parency on companies’ lease assets and liabilities, meaning that off balance sheet lease financing is no longer lurking in the shadows. It will also improve comparability between companies that lease and those that borrow to buy.”

LeasePlan acquires full ownership of Excelease

L

easePlan has become the sole owner of the Excelease business in Belgium after taking over Inchcape’s 49% share.

The business was co‐founded by LeasePlan Belgium in 1994 via one of its group companies and from the beginning, the company owned 51% of Excelease shares. In March last year, LeasePlan opened negotia‐ tions with Inchcape, the owner of the remaining 49% of the shares, with the completion of the deal giving LeasePlan an additional 3,000 lease vehicles at its disposal.

Michel Van den Broeck, managing director at Lease‐ Plan, is very pleased with the move: “Everyone at LeasePlan is obviously thrilled with this agreement. It is important to note that the transaction has enabled us to significantly increase our market share within the SME segment in Belgium.”

08 / internationalfleetworld.com

The leasing giant has entered into a definitive agree‐ ment with MKB Bank Zrt and Letét Kft to acquire 100% of the shares of MKB‐Euroleasing Autópark, which owns a total fleet of nearly 9,400 vehicles: 7,700 in Hungary and 1,700 in Bulgaria.

ALD Automotive said the acquisition enables it to become a major player on the Hungarian fleet market and to consolidate its leading market position in Bulgaria.

Telematics firm launches new service to help European fleets cut costs new service that consolidates GPS fuel saving soft‐ A ware and fuel card data has been launched to deliver major cost and safety opportunities for Euro‐ pean fleet operators.

Aimed at car, van and truck fleets as well as partners such as leasing firms and fuel card companies, the serv‐ ice has been launched by telematics specialist Transpoco.

Dubbed SynX, the cloud computing‐based service integrates the firm’s GPS software with data from fuel cards to provide cost saving business intelligence.

TomTom Telematics acquires Polish fleet telematics provider

T

omTom Telematics has acquired Finder S.A., a leading fleet telematics provider in Poland.

The acquisition strengthens the company's position in the fleet management and telematics fields in Europe and adds more than 60,000 subscriptions to the TomTom Telematics installed base, bringing the total over the 600,000 vehicles landmark.

“Poland is one of the fastest growing telematics markets in Europe,” commented Thomas Schmidt, managing director, TomTom Telematics. “By combining the strength of existing TomTom Telematics activities with Finder S.A., we directly address a large and grow‐ ing telematics market with high potential whilst estab‐ lishing a leading position in Eastern Europe.”

For the latest news, visit internationalfleetworld.com

Fleet Logistics plans for new market launches

F

leet Logistics has announced plans to enter into new markets in 2016 following a record year in 2015.

The independent fleet management provider said it closed last year with a contracted fleet of more than 180,000 vehicles, up almost 25% year‐on‐year, as its expansion continues across Europe and into Asia following the establishment of a new hub operation in Singapore.

Future expansion plans in the region include entry into the fleet markets in Australia and Japan from newly developed local offices, using the existing footprint of parent TÜV SÜD in the locality – a move which is expected to take place by the end of the first half of 2016.

The company is also planning a move into Latin America in the first quarter of next year and expansion into South Africa at a date to be decided.

Tesla’s Ricardo Reyes to speak at 2016 Geneva International Fleet Meeting

D

etails have been announced for this year’s International Fleet Meeting, which takes place on 2 March at the Geneva Motor Show and brings pre‐eminent speakers along with a panel discussion and a bespoke networking platform.

Speaker line‐up includes Ricardo Reyes, vice president of global communications at Tesla, with other additions to be announced. In addition Knut Krösche, director international fleet, aftersales & used cars, Volkswagen Financial Services and Csabo Csisko, global director environment, health & safety, Philip Morris International will participate in the subsequent panel discussion moderated by Anne Dopson, sales director of Inter‐ national Fleet World, which is a media partner for the event.

LeasePlan survey shows increased driver acceptance for telematics and car sharing

i

nterest in telematics and car sharing is increasing amongst drivers globally due to growing recognition of the benefits.

That’s according to the annual global LeasePlan MobilityMonitor, a large‐scale study of nearly 4,000 drivers in 17 countries worldwide.

In total 50% of the drivers surveyed said they would feel comfortable having a telematics device installed in their car while an increasing proportion of drivers (39% versus 35% in 2014) say having a telematics device installed would change their driving behaviour, from driving more cautiously (15% versus 9% in 2014), to paying more attention to fuel consumption (12%) and/or driving slower (9%).

fleetinquotes a few soundbites from a month in fleet

“

Delivering almost 10m vehicles is an excellent result, particularly in view of the continued challenging market situation in some regions as well as the diesel issue in the final quarter.

”

Matthias Müller, CEO of Volkswagen Aktiengesellschaft

We all thought we were doing something special here.

It was all about function over form as we had the farmer and the agricultural community in mind but it very quickly exceeded those expectations. We were surprised when people started using it to take the children to school and do the weekly shop!

“

”

Arthur Goddard, project engineer for the original Land Rover

It is obvious to me that the diesel discussion is a turning point. The world is not as it was before.

We cannot ignore this and it is in the hands of the automotive industry to change the perception of the new reality.

“

”

Dr Karl-Thomas Neumann, CEO of Opel Group

internationalfleetworld.com / 09

environmental news

Workplace charging lets EVs go further than ICE average

E

lectric and range‐extended electric vehicles average a quarter more kilometres per year when owners have access to workplace charging, exceeding the national average for internal combustion engine models (ICE), according to a new study in the United States.

The Idaho National Laboratory’s report analysed usage patterns for 4,000 Nissan LEAFs and 1,800 Chevrolet Volts participating in Department of Energy’s EV Project and ChargePoint America programmes – said to be the largest plug‐in vehicle infrastructure demonstration in the world – over a two‐year period.

Access to workplace charging was found to be a significant enabler of longer distances, particularly for LEAF drivers, who averaged 19,122km per year if they could plug in at work. This is almost a 22.5% higher figure than the 15,605km average for all LEAFs included in the study.

The Chevrolet Volt recorded similar improvements, averaging 18,423km on battery power when drivers

could charge at work, 25.6% more than the 14,664km for those who couldn’t. Workplace charging enabled Volt owners to cover, on average, 83.2% of their 22,142 annual kilometres without using any petrol. Study‐wide, 74.5% of the distances covered by Volt drivers were carried out without using the petrol range extender.

Both the LEAF and Volt were also able to exceed the U.S. national average of 18,260km using only electric power, if they had access to workplace charging equipment.

With or without this, the two cars also covered near‐ identical annual distances on electricity, despite the Chevrolet offering a significantly shorter battery range.

Volt owners averaged 1.5 charges per day, compared to 1.1 times for the LEAF, and tended to deplete the battery fully before plugging in.

The majority of charging – 84% for the LEAF, 87% for the Volt – was done at home, usually scheduled to start after midnight, while most of the remainder was done at three locations or less.

International alliance aims for all-EV sales by 2050

A

trans‐Atlantic alliance formed of four European countries, eight American states and a Canadian province has pledged to make all its passenger car sales zero emission by no later than 2050.

Announced at the COP21 climate change conference in Paris, the newly‐formed International Zero‐Emission Vehicle (ZEV) Alliance is targeting much wider adoption of vehicle technologies which curb tailpipe emissions and can be powered by zero or near‐zero carbon energy.

The alliance said: “We will work to fully realise the climate change benefits of ZEVs, and want to raise our ambition as ZEV technology and markets advance. Accel‐ erating ZEV deployment will achieve greenhouse gas emissions reductions of more than one billion tons per year by 2050.”

10 / internationalfleetworld.com

Measures include purchase incentives, investments in infrastructure and marketing, policy changes to require ZEV deployment, removal of political barriers, use of the technology on government, public sector and public transport fleets, and financial aid for research and devel‐ opment into future drivetrains. By working together, it’s hoped that members can share best practice and encourage others to sign up.

Jurisdictions included in the alliance from launch comprise: Germany, the Netherlands, Norway and the United Kingdom in Europe, and California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode Island and Vermont, and the Canadian province of Québec. Together, these regions account for 38% of global electric vehicle sales.

For the latest EV news, visit evfleetworld.com

U.S. to establish electric and hydrogen highways

U

nited States president, Barack Obama, has passed an act which will install charging points and hydrogen stations on major routes and at Federal buildings nationwide by the end of the decade.

Included in the Fixing America’s Surface Transportation (FAST) Act, which became law in December, the Secretary for Transportation will be required to designate corridors nationwide within a year, offering refuelling infrastructure for electric, hydrogen, propane and natural gas vehicles.

The act suggests working with stakeholders including utilities, gas suppliers, green energy specialists and local and national hospitality companies such as hotels, restaurants and highway rest stops to find locations and utilise existing installations. Initial routes will be in place by the end of the 2020 fiscal year.

Federal agencies will also be able to install charging points in their own car parks, for use by employees’ private vehicles. These will be funded by the agencies, with the cost of installation and operation recovered through a paid access scheme. Internal vendors can be used to operate and maintain the points.

200-mile Chevrolet Bolt EV revealed

C

hevrolet’s 200‐mile electric vehicle, the Bolt, will begin production later this year and go on sale at all 3,000 U.S. deal‐ erships priced from under $30,000 (€27,500) after government incentives.

The longest‐range elec‐ tric vehicle without a Tesla badge, its drivetrain is sourced via an ongoing strategic partnership with Korea’s LG Electronics. Battery capacity of 60kWh is twice that of the longest‐range Nissan LEAF, and the Bolt features a Combined Charging Standard connector enabling 80% of the range to replenished in an hour on a DC rapid charger.

GM has yet to confirm whether the Bolt will be imported to Europe, but Opel chief executive Karl‐Thomas Neumann has said the company plans to replace the Ampera in the near future. With Chevrolet no longer sold in Europe, it’s likely a European version of the Bolt would feature region‐specific styling to match the Opel and Vauxhall ranges, as GM had done with Ampera.

EV

in brief PSA signs deal on hybrid and EV battery recycling PSA Peugeot Citroën has extended its agreement with with the Société Nouvelle d'Affinage des Métaux (SNAM), enabling 80% of the weight of its hybrid and elec‐ tric vehicle batteries to be recycled at the end of their lifecycle. European regula‐ tions only require 50% to be recovered.

Saab plans five-EV range Saab is developing a range of five electric vehicles with plans to sell them globally, president Mattias Bergman has revealed.

Speaking at the Di Stora Bildagen automo‐ tive conference in Sweden, Bergman said the range will comprise two crossovers, a ‘midsize fastback’ similar to the 9‐5 with an additional off‐road bodystyle, and the already‐launched electric 9‐3.

Ford to invest $4.5bn in EV tech Ford will launch 13 electric and hybrid vehicles by 2020, starting with a new Focus Electric this year. The carmaker is investing $4.5bn (€4.1bn) in electrified drivetrains over five years, aiming for 40% of its global nameplates to have the technology by the end of the decade.

OLEV extends UK Plug-in Car Grant The UK’s Office for Low Emission Vehicles (OLEV) has extended its Plug‐in Car Grant until March 2018, introducing different funding for electric and plug‐in hybrid models. From March, electric cars will get a subsidy of up to £4,500 (or 35%), plug‐ in hybrids will be eligible for up to £2,500.

Source: Nissan

in numbers

500km Planned electric range for the next Nissan LEAF, which is likely to get a 60kWh battery.

85,000

Plug-in hybrid carpool lane access stickers issued by the California Air Resources Board (CARB) since 2012 – over twice the original limit, and likely to be extended for a fourth time.

Source: CARB

internationalfleetworld.com / 11

business news

Opel announces new European fleet director

in brief

pel has appointed Wolfgang Stahl to the role of director European OMrfleet, remarketing and used vehicle operations.

Stahl replaces Ian Hucker who has taken the position of executive

Intelligent Telematics appoints new CEO

director sales for Opel Europe, and is now responsible for sales throughout Europe, excluding the UK, German and Russian markets.

Mr Stahl, who holds a degree in Business Administration, brings with him a wealth of automotive experience in operational and strategic functions.

“I am very much looking forward to leading the fleet team at Opel, at a time when we have an outstanding line‐up of products for the fleet market, not least the new Astra which is receiving universal praise,” said Mr Stahl.

“We are in an excellent position in the European fleet market currently, and with the array of new products still to come this year and beyond, we are confident that we will be able to strengthen our fleet position still further. I am looking forward to meeting with our many fleet customers as soon as possible,” he added.

New E-Class to bring best-in-class CO2 emissions

T

he new Mercedes‐Benz E‐Class will feature segment‐lead‐ ing CO2 emissions and semi‐autonomous features when it launches later this year.

Unveiled at the Detroit Motor Show, launch engines will comprise the 184hp E200 petrol and 195hp E220 d diesel. The latter is an all‐new 2.0‐litre unit which will offer class‐leading CO2 emissions of 102g/km and 3.9l/100km fuel consumption with the 9G‐TRONIC nine‐speed automatic transmission, included as standard.

New technology includes a lane change assistant, similar to Tesla's AutoPilot feature, and the ability to manoeuvre in and out of parking spaces controlled by a smartphone.

New 150hp four‐cylinder and 262hp six‐cylinder diesel engines will be available after launch as the range grows to include the first E 350 e plug‐in hybrid, offering CO2 emissions of 49g/km and a 30km electric range. See page 16 for more information.

Saleem Miyan has joined 3G vehicle camera and tracking solutions provider Intelligent Telematics as CEO to help drive its investment and growth plans globally. Mr Miyan will use his experience in both the tech‐ nology and insurance sectors to expand the business in new and existing international markets, with particular focus on the United States.

LeasePlan supports Toyota Belgium Toyota Belgium and LeasePlan have concluded a ‘white label agreement’.

The deal will see all Toyota and Lexus Belgium dealerships continue to offer their customers the same services under the names ‘Toyota Business Lease’ and ‘Lexus Business Lease’ respectively, and involves 100 Toyota dealerships and nine Lexus dealerships.

Euro NCAP reveals Best in Class cars of 2015 Euro NCAP has revealed its Best in Class cars of 2015, with eight cars, including the Volvo XC90, Jaguar XE and Infiniti Q30 gaining top honours out of over 40 vehicles during the year, whilst the XC90 also put in the best overall performance.

The winners are: Large off-road – Volvo XC90 Small off-road – Mercedes-Benz GLC Large family car – Jaguar XE Small family car – Infiniti Q30 Supermini – Honda Jazz Large MPV – Ford Galaxy Small MPV – VW Touran Roadster Sport – Mazda MX-5 Looking ahead, the organisation said 2016 brings new challenges as it introduces an assessment of AEB Pedestrian systems.

12 / internationalfleetworld.com

RVs

Analysing leasing and residual value confidence in the Eurozone and beyond...

European Insight: Trends in the Spanish leasing sector The improving car market in Spain is having a positive effect on Spanish leasing rates thanks to better RVs and lower leasing rates, as Experteye reports.

R

ising forecasted residual values and reduced servic‐ ing, maintenance and repair budgets have resulted in a better deal for fleet operators in the Spanish leasing sector.

Since the end of 2013, Spain’s rental rates have fallen steadily, with the monthly cost for leasing a car now ‐3.3% less than it was two years ago, and ‐1.9% for light commer‐ cial vehicles.

Even though new car prices have risen on average by +3.2% over the last 12 months, rentals remain lower

thanks to a +9.3% improvement in forecasted car residual values (RVs) over the last two years, and a staggering +19.8% rise in anticipated future LCV values.

A drop in servicing, maintenance and repair (SMR) has also helped. The SMR budgets on cars have fallen by ‐1.3% in the last two years and by ‐5.4% since November 2014.

For LCVs, they have dropped by ‐4.6% over the last 24 months and ‐5.3% last year.

The figures come from the latest Experteye European Leas‐ ing index survey, which tracks forecasted residual values

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 Germany

+1.0%

+2.1%

-3.7%

-2.9%

-3.4%

-7.8%

Spain

+1.1%

+2.9%

-2.5%

-5.4%

-3.5%

-2.2%

France

+2.2%

+6.1%

+1.5%

-5.5%

+0.3%

-4.7%

UK

-0.3%

-1.7%

+1.2%

+3.5%

-0.1%

+3.9%

Italy

+1.7%

+8.7%

+0.5%

-2.6%

+0.6%

-4.3%

Portugal

+4.7%

+0.2%

+0.6%

-3.9%

-3.5%

-3.0%

Notes: • The comparisons are for vehicles with a contract duration of 36 months/90,000km.

• Twelve-month comparisons show change since October 2014.

• Three-month comparisons show change since September 2015.

14 / internationalfleetworld.com

• 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.

Market summaries – 3 and 12 months to November 2015 GERMANY: Fleet operators in Germany have seen a ‐7.8% fall in rental rates over the last 12 months, with prices continuing to come down by ‐3.4% in the latest quarter. Fore‐ casted residual values are up by +2.1% for the year and +1% since September 2015, and SMR budgets have come down by ‐2.9% for the year and ‐3.7% for the quarter.

(RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies.

Every month Experteye gathers data from major leasing companies throughout Europe regarding their residual value forecasts, SMR budgets and rental rates across a broad basket of the most popular fleet vehicles.

Rick Yarrow, managing director of Experteye says, “The Spanish leasing sector is enjoying some positive trends. The improvement in forecasted residual values signals confidence in the future used vehicle market and economy as a whole.

“The reduction in the servicing, maintenance and repair budgets built into contract rentals means leasing companies are passing on the savings they are enjoying, which is good news for customers. As a result, rentals are coming down as new car prices rise.”

Back in 2009, when the global recession was taking grip, Experteye gave monthly rentals, fore‐ casted residual values and SMR budgets a nominal index of 100 and have been tracking their move‐ ments ever since.

Six years on and average forecasted residual values, as a percentage of new car prices, are stronger than they were back then, however SMR budgets and monthly rentals have still not risen to pre‐recessionary levels.

“The indexing is a vital exercise,” continues Rick Yarrow, “As it shows that fleet operators are still getting a better deal than before the economic downturn, and the leasing sector’s overall confi‐ dence in future markets is continuing to improve.”

SPAIN: Rental prices are coming down in Spain, with a ‐3.5% reduction in the last three months and a drop of ‐2.2% since last October. Residual value forecasts are up by +2.9% for the year and 1.1% for the quarter. SMR budgets have seen quite a strong reduction, coming down by ‐5.4% since October 2014 and ‐2.5% in the last three months.

FRANCE: French confidence in the future used vehicle market is reflected in a +6.1% improvement in RV forecasts over the last 12 months, and +2.2% for the quarter. Servicing, main‐ tenance and repair budgets are down by ‐5.5% for the year but have climbed by +1.5% since September. As a result, French fleet opera‐ tors have enjoyed a ‐4.7% reduction in their rentals since October 2014 but these have crept up by +0.3% in the last three months.

UK: During the last 12 months the UK is the only nation in the Experteye survey to have seen a fall in its RV forecasts (‐1.7%). This trend continues with a ‐0.3% reduction in the last quarter. The UK has also reported the largest increase in SMR budgets, with a +3.5% rise for the year and +1.2% for the quar‐ ter. Not good news for fleet operators who have seen rental costs rise by +3.9% since October 2014, albeit they fell by a fractional ‐0.1% in the last quarter.

ITALY: Forecasted residual values have risen more steeply in Italy than any other nation surveyed, with a +8.7% annual improvement, although this has calmed to +1.7% for the quarter.

SMR budgets have risen by +0.5% during the last three months after a year that saw them come down by ‐2.6%. Rentals are up by +0.6% for the quarter after falling by ‐4.3% over the 12 months.

PORTUGAL: Portuguese RV forecasts rose by +4.7% during the last quarter, the highest three month rise of all nations surveyed. This follows a year in which they climbed by just +0.2%.

SMR budgets were up by +0.6% for the quarter, after falling by ‐ 3.9% for the year. Monthly rentals came down by ‐3.5% during the last 3 months with a ‐3% reduction for the year.

internationalfleetworld.com / 15

SPOTLIGHT Mercedes-Benz E-Class

Star performer Newly unveiled at the Detroit Motor Show, Alex Grant reckons the high-tech new E-Class could shake up the executive segment this year.

Class-leading efficiency The outgoing E-Class set standards for fuel efficiency with the executive segment’s only diesel hybrid, but its replacement isn’t reliant on a costly electric motor and battery to achieve the same. Although it’s 43mm longer than its predecessor, widespread use of ultrahigh strength steels and aluminium panels keep the weight down, and it’s more aerodynamic than the new Toyota Prius or Tesla Model S. Both maximise the potential of what will be its broadest-ever engine range, including a 49g/km plug-in hybrid. But the E 220 d is likely to be the most popular in Europe. It’s powered by a new 195hp 2.0-litre diesel, and a welcome successor for the gravelly 2.1-litre engine used to date. Preliminary figures suggest a class-leading 72.4mpg and 102g/km CO2 emissions with the standard-fit nine-speed automatic gearbox, depending on wheel size. Additional 150hp four-cylinder and 258hp sixcylinder diesel engines will follow.

For drivers and passengers European drivers have a preference for sportiness, and the E-Class is tailored to offer this. Its shorter front and rear overhangs give a sportier stance and improved handling, and some markets won't be offered versions with the traditional slatted Mercedes-Benz grille and bonnet-mounted upright badge. All-LED headlights with 84 individually-adjustable sections are optional, and the E-Class debuts a new “stardust-effect” rear lamp with a glittering light signature.

But the biggest step forward is the cabin. It’s as much of a segment benchmark as the C-Class and S-Class, with accents of aluminium, panels of gloss black and a tablet-like 312mm infotainment display at its centre. Options include a fully digital instrument cluster, and there’s been a focus on minimising distraction. Steering wheel controls operate with a swipe of the finger, like a smartphone, the touchpad on the centre console recognises handwriting and most functions are voice-activated.

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A step towards autonomy This might be too early to benefit from Daimler’s recently-acquired stake in mapping and connected car innovator, HERE, but the E-Class offers a hint of what the German premium brands’ collaborative purchase is working towards. It is already capable of sending and receiving real-time information about road conditions ahead, in turn providing earlier warnings about problems – a foundation for full autonomy.

But it’s equally aware of its immediate surroundings. By monitoring other traffic, road markings and parallel structures, the E-Class can maintain its speed and position within a lane at up to 210km/h. It’s the first Mercedes-Benz to be able to manoeuvre in and out of parking spaces with nobody at the wheel, controlled via a smartphone app, and can perform semi-autonomous lane changes too. It should make this a very relaxed longdistance car.

FLEET FACT Drag coefficient of 0.23 makes this the most aerodynamic mass-market car ever made.

What we think...

A fiercely competitive segment with some notable new rivals since the last all-new E-Class, but Mercedes-Benz seems equipped to offer the best of all worlds here. Innovative new technology to rival Audi, an attempt at BMW-like sportiness and plenty of luxurious S-Class technology and style. Class-leading fuel economy from the default four-cylinder diesel and automatic gearbox will ensure it gets noticed, and the plug-in hybrid should entice a few tax-conscious company car drivers too. AG

internationalfleetworld.com / 17

MANAGEMENT Operational Leasing

Operational leasing...

finance for the future SMEs can tap into contract hire too, while mobility schemes are growing in popularity, reports Steve Banner.

W

hile big corporations are well aware of the advantages and drawbacks of operational leasing – often referred to as contract hire or full‐service leasing if it is provided with a comprehensive package of support services – this is not neces‐ sarily the case so far as small to medium‐enterprises (SMEs) are concerned. As a consequence its pene‐ tration of SMEs in some countries is surprisingly low.

“Operational leasing has still got a lot of potential to grow among SMEs in France, Italy and Spain for example,” says Stephane Renie, sales and business development director at ALD Interna‐ tional. “As things stand they often prefer to own their own vehicles, more out of custom and habit than for any other reason,” he suggests.

“In France and Belgium the SME penetration may be as low as 5% to 10%,” says Bart Beckers, chief commer‐ cial officer at Arval. “By contrast, however, penetration in the Nether‐ lands and the UK is a lot higher.”

“Russia on the other hand remains very much an acquisition market,” says Renie.

Can contract hire benefit SMEs? The benefits contract hire offers an SME are much the same as those it

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offers to a large multinational group, despite their differences in scale.

It allows customers to outsource the acquisition, taxing, maintenance and disposal of vehicles and potentially reduce their costs as a consequence. Fuel cards and accident management are among the other add‐ons that are available.

“You’re outsourcing stuff that is non‐ core and that you may not have the staff to handle yourself in‐house,” Renie comments.

“Contract hire brings cash flow bene‐ fits too when compared with outright purchase or hire purchase,” says Simon Oliphant. A prominent figure in the automotive leasing industry, one of his many roles involves running a strategy office created by Hitachi Capital Corpo‐ ration Japan with the aim of fostering global vehicle leasing growth.

“Cash flow can be a real issue for SMEs,” Renie remarks.

“Contract hire is another line of credit and makes forward budgeting easier because you are paying fixed monthly rentals for the next three or four years,” Oliphant says. “In fact you are paying a single monthly invoice for everything.”

“This can be beneficial for companies that are looking for financial stability,” says Uwe Hildinger, chief commercial officer at Alphabet International.

“You’re outsourcing stuff that is non-core and that you may not have the staff to handle yourself in-house.”

Stephane Renie, sales and business development director, ALD International

“You’re not spending your own capi‐ tal which means you can invest in, say, research and development instead,” Renie observes.

There may be VAT benefits too, Oliphant adds. “Leasing charges are treated as oper‐ ating expenses and are therefore tax‐ deductible,” Hildinger comments.

Furthermore, the fact that a contract hire agreement involves regular servic‐ ing and ensuring that a car is roadwor‐ thy helps companies discharge their duty of care to their employees.

It reduces the exposure of fleets to financial risk so far as residual values and unexpected expenditure on mechanical repairs are concerned and allows them to take advantage of the buying power the big leasing companies enjoy. “You can obtain good discounts on parts, workshop labour and break‐ down services,” says Oliphant.

Bulk purchase cost benefits “We have 1.5m vehicles on our books and we buy thousands and thousands of cars and thousands and thousands of items such as tyres annually so we have the benefits of scale,” says Jaime Requeijo Gutierrez, senior vice‐presi‐ dent, business development, at Lease‐ Plan. “As a consequence we can leverage costs downwards so that they are as low as they can possibly be and we can pass these savings on to our customers.”

Those customers can also benefit from LeasePlan’s expertise if they need advice on which vehicles to choose for particular applications and where best to get them maintained; expertise they may not have in‐house. “Running a fleet of cars is not their core business after all,” he remarks.

Purchasing clout means that car manufacturers and dealers are more likely to respond favourably to a

complaint from a big leasing company than they would if the same complaint were to be filed by a small business, says Oliphant. “If a dealership has had a car in five times with the same problem and hasn’t fixed it yet then a lessor can put pressure on the manufacturer to sort it out and if necessary get the car replaced,” he observes.

Businesses may of course be wary of entering into a full‐service lease because they may fear they will be penalised if they have to terminate it early.

“Remember that you are signing a contract covering an asset that does not depreciate lineally,” Gutierrez observes.

“It may depreciate by as much as 30% over the first 12 months.”

To allay these concerns lessors have developed a variety of packages that allow for early termination; but there is still a price to pay.

internationalfleetworld.com / 19

’

MANAGEMENT Operational Leasing

“Leasing charges are treated as operating expenses and are therefore tax-deductible.”

Operational leasing...

Uwe Hildinger, chief commercial officer, Alphabet International

finance for the future ’

Rental alternatives?

Arval for example can provide vehicles on what Beckers describes as a mid‐term rental basis for up to 24 months. It is a bit more expensive than one of the company’s more conventional contract hire agreements he says, but can be terminated at any time; and the longer the client keeps the car, the more the monthly rate goes down.

Only the most popular cars that can easily be switched to one of the leasing company’s other clients are likely to be available under such a deal.

Customers may also fear that they will be penalised for every minor blemish when the vehicle is returned. The poli‐ cies pursued by lessors have changed significantly over the past few years, however, with the use of independent arbitrators and the advent of clear, agreed, guidance as to what constitutes fair wear and tear published by the sector’s trade associations.

“In some markets we offer fair wear and tear insurance,” says Gutierrez. “We charge a monthly fee to cover the client against the cost of, for the sake of argu‐ ment, the first €1,000 worth of any repairs that may be required.”

The risk of course is that fleets will take less care of their leased vehicles than they did previously, safe in the knowledge that the insurers will pick up the bill. “We’ve seen no significant change in behaviour so far though,” he remarks.

At present contract hire is viewed as off‐ balance‐sheet finance, although that will change from 2019 onwards so far as many major public companies are concerned, says Beckers. How contract hire is treated for balance sheet purposes is not a signif‐ icant influencing factor when SMEs make their funding choices, he believes.

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“It’s more about outsourcing and the accompanying package of benefits,” he contends.

Challenging contract hire markets Are there any markets where local condi‐ tions make it impossible for contract hire to be introduced?

“China can be a challenge because leas‐ ing companies are constrained by the need to obtain the necessary number plates first and that isn’t always easy,” Beckers replies. “Arval has a joint venture with a local company now, which helps, but contract hire in China involves the provision of drivers; and is as much about managing them as it is about managing the vehicles.”

“China is still really about outright acquisition,” says Renie. “The take‐up of contract hire remains very weak, one reason being that until recently the tax treatment varied from province to province and city to city.”

Countries can change however, he stresses. “Tax changes in Mexico for example mean that contract hire’s pene‐ tration is on the increase,” he states.

Mobility packages – a challenge for contract hire?

While lessors still seem confident that contract hire will grow in popularity, its growth could be curtailed if mobility packages catch on.

They involve the allocation of a budget that employees can use to get them‐ selves from A to B, and not necessarily by car. It can be spent on rail, tram, or bus tickets or perhaps on buying or hiring a bike instead; ideal if your job involves getting around a big, cycle‐ friendly city such as Amsterdam, the capital of the Netherlands, which has a

well‐developed public transport system.

When a car is used it may be on a shar‐ ing basis, with vehicles not permanently allotted to particular individuals.

One out of eight company lease car drivers – 13% – is interested in corporate car sharing according to a recent study commissioned by LeasePlan covering 17 countries. That compares with less than 10% a year ago.

Car sharing schemes The highest level of interest – 16% –is among males aged between 18 and 34.

“There is a tendency in favour of subscription‐based products and serv‐ ices and an increasing demand for shar‐ ing solutions, especially among younger working professionals in large cities where parking costs and living expenses are high,” says LeasePlan chief commer‐ cial officer, Nick Salkeld.

It has just introduced SwopCar, a new car sharing service.

Initially being piloted in the Nether‐ lands and Luxembourg and set to be deployed globally during the coming months, the technology behind it gives eligible employees access to an online reservation platform and smartphone app. That enables them to check vehicle availability and plan their trip accordingly.

The entire process is self‐service.

Cleaning, maintenance and refuelling are taken care of by LeasePlan’s network of service providers.

Usage data is recorded so that costs can be calculated and passed on to the department or employee concerned.

Other leasing companies are offering mobility and sharing packages too; so if demand for contract hire does eventually decline, they will be ready with some suitable alternatives.

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INTERVIEW Linda Jackson, Citroën

Make them quirkier Citroën needs to be unconventional reckons CEO Linda Jackson and not just in design and engineering, as Chris Wright reports.

Q

uirky – adjective (quirkier, quirkiest) having peculiar or unexpected habits or qualities – Derivatives: quirkily or quirkiness. So says the Oxford English dictionary.

It’s a word that Linda Jackson, chief executive of Citroën, believes exactly describes what the brand should be all about. However, when she took up her position in Paris some 14 months ago she found that her French colleagues had no idea what she was talk‐ ing about.

They do now.

Jackson is seeking to re‐establish Citroën’s reputa‐ tion for being unconventional, or even quirky, with the aim of pushing global sales up from 1.2 million a year to 1.6m by 2020.

“The time has come to re‐define 96 years of history,” she said. “Citroën as a brand needs to go back to what it was really good at, being creative, audacious and impertinent. I think ‘quirky’ is a brilliant word in terms of what Citroën did in the past. My problem is that no one had the first idea what it meant when I got to Paris.

“I have spent a lot of time now with the design team and engineers and now they know exactly what I mean and they are buying into the concept. You have already seen a return to boldness with the Airbumps we have put on the C4 Cactus’s panels. This was a model origi‐ nally intended for Europe only but since launch a year ago it has achieved 110,000 sales against a projection of 70,000 and we are launching it now in Australia and Japan. They are really resonating with customers and you will see us start to take more risks with new models coming through.”

Global models Central to Jackson’s model revolution will be the reduction of the current 14 vehicle ‘silhouettes’ to just seven. Citroën currently has different cars for its key markets of Europe and China, but she wants to have global models spanning the A to D segments within the next five years.

This has already started with the launch of the C4 Cactus and two new models will follow in 2016 followed by one a year beyond that. Jackson said that Citroën is re‐defining itself under PSA chief Carlos Tavares’ ‘Back in the Race’ strategy. Since the 1990s, she said, the brand had become “too mainstream – and it hasn’t worked”.

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CX offers design inspiration for modern Citroëns

Her design team in Paris is now drawing inspiration from famous old models such as the CX and Jackson revealed that Citroën is currently working with a French supplier on a new suspension system that will come very close to reprising the brand’s famous hydraulic suspension.

This will be introduced on the next generation C5 and will eventually feature on all models. Jackson said: “I would like this suspension to be standard through‐ out the range and we are working with our partner to bring cost down as much as possible.”

The new system, she added, will be exclusive to Citroën. “While the three PSA brands share a lot of things, each can choose certain technologies that they can keep to themselves.”

Time for change Some conventions will be discarded as well, she added.

“Research told us that customers were not interested in a temperature gauge so why have one? We will also be looking at how we improve connectivity in future models but not in a gimmicky way. I believe that we need to do everything we can in terms of driver aids but we can leave aside social media. That can be left on the smartphone.

“We will concentrate on ‘useful’ technology while making people who buy Citroëns feel different, but good about themselves.”

This will go beyond cars with dealers worldwide being asked to buy into the Citroën revolution, added Jackson. Each dealer, she said, will have advisors to help customers with their choices, vehicles will be cleaned after servicing and consumers will be asked to rate their vehicle and experience online.

“We will concentrate on ‘useful’ technology while making people who buy Citroëns feel different, but good about themselves.”

Citroën for the US? While Europe and China remain the brand’s prior‐ ity, Jackson does not rule out a move into the North American market. “It’s not yet in the mix,” she said, “but if we are to be ‘Back in the Race’ we have to look at all the major markets around the world.

The US is difficult to launch into and distribution is obviously a major issue.

“We constantly have to look at where we might be missing opportunities and as well as North America there are some potentially huge market opportunities in South East Asia and India.”

Car sharing and mobility As well as new places to sell cars, Jackson is also aware that the traditional automotive business model is likely to change as a new generation emerges which is not necessarily interested in car ownership.

Jackson said: “We have to look at innovative ways of doing things and we are already looking at car sharing in a pilot project in Berlin. We are talk‐ ing to a lot of potential partners and we recognise that future buyers may be more interested in pay‐ per‐month leasing rather than ownership. We will not just be selling cars, we will be selling mobility.”

PSA, she added, is also developing an electric vehicle strategy across its three brands, Citroën, DS and Peugeot. This includes a plug‐in hybrid which uses PSA technology. However the French company has put its once‐promising Hybrid Air project, developed with Bosch, on the shelf until another major vehicle manufacturing partner can be found to share the high development costs.

The revolutionary process has the potential to reduce fuel consumption in city driving by around 40% by compressing air in the coasting and brak‐ ing phases and using it for acceleration.

Jackson does see a downturn in the diesel market as concerns grow over NOx emissions. She said: “We are actually seeing (diesel) growth in Japan but significantly there is a steady decline in France. Diesel will reduce but will it disappear altogether? I don’t know. What I do know is that we are spending a lot of money to ensure our engines meet all the emissions requirements for Europe and China.”

internationalfleetworld.com / 23

INTERVIEW Steve Zanlunghi, Jeep

Jeep takes the high road Renegade has given Jeep new impetus in Europe. A C-SUV in 2016 will open sales up further, particularly in fleet, reckons John Kendall. he Jeep Renegade, launched in autumn 2014 has helped to transform the US brand’s fortunes throughout Europe. Annual sales by the end of November 2015 reached 80,653 across The European Union and European Free Trade Area (EFTA), compared with 34,772 for the same period in 2014, an increase of 131.9%. In 2014, global sales reached 1,017,000.

Renegade may have kick-started Jeep sales in Europe, but there is more to come. A C-segment SUV is due to arrive in 2016, which marks the brand’s 75th anniversary. According to Steve Zanlunghi, head of Jeep brand for Europe, the Middle East and Africa (EMEA) there is also a new Grand Wagoneer, reviving an old Jeep name and a new Jeep Wrangler in the pipeline. Grand Wagoneer is not expected until 2018 and is likely to be built on the Grand Cherokee platform. With it, Jeep is planning to take on the Range Rover and other luxury SUV models.

The new Wrangler could appear in 2016 for the 2017 model year. “It’s going to be a complete renewal,” says Zanlunghi, “It will evolve, but it will stay true to its roots because the most passionate fans that we have are the Wrangler fans, so if you get that wrong, you face a big backlash.”

Renegade was the first Jeep to be built outside the US and the plan is to expand this to six models built in six countries by 2018. In sales terms Zanlunghi told IFW how sales break down across the EMEA region, “The Middle East market represents 30% of our sales, there’s a little piece coming from South Africa and pretty much the rest of it is coming from Europe plus EFTA.”

T

Renegade kick-started Jeep in Europe but more is to come

Revised dealers network The Fiat Chrysler (FCA) Group is gradually shaking up its dealer network. Jeep and Alfa Romeo dealers are being brought together as a joint franchise and by 2017 there will be a complete reworking of the network. Zanlunghi says that the company is not discriminating between existing Jeep and Alfa Romeo dealers and those who see an opportunity with the joint franchise. The key factors will be the best operators and those who are in the right locations. “At the end of the day it comes down to the operator, because they would be the face of the brand to the customer,” comments Zanlunghi.

We are not likely to see an electric Jeep in the near future, but the 2021 EU CO2 fleet average of 95g/km will inevitably shape powertrain policy. Zanlunghi says that Jeep does not have a brand strategy for this, but is part of a corporate strategy, so we can expect some electrification of FCA models in the near future, which could be adapted for Jeep use.

No matter how good a product turns out to be, a customer’s experience with aftersales, whether private or fleet can make or break a company’s reputation, “You can always be better in aftersales,” says Zanlunghi, “When you get someone to the Jeep brand, they become very loyal and you have to do a lot to chase them away and to a certain extent we are chasing some customers away, so there’s a big focus on customer satisfaction for us. While the dealers are upgrading the network, it’s not just customer satisfaction, it’s dedicated sales people, we’ve got strict processes for the customer journey from the minute they step onto the shop floor and immersing them in the brands as well, so there’s a big training process going on.”

Zanlunghi sees the current time as a period of transition for both the brand and the dealers, including those that are new to the brand as well as existing dealers, “If you look at it, this line-up that we have now is totally different to what we had in 2012.”

Fleet sales The arrival of a C-SUV model for Jeep in 2016 could open up fleet sales for the company. While Zanlunghi would not be drawn on how this might impact fleet sales, he told us, “We really haven’t

24 / internationalflfeetworld.com

“We’ve done a really good job with the partnership and the merger with Fiat.” talked much about where we want to go. We do have an internal strategy on it, but just take a look at what we’re doing with Renegade. In the UK it allowed us to get into some fleet channels that we’d never been able to get into.

“We’ve got a clear plan for it – clearly it’s white space for us, because traditionally in the past, really it’s been private or retail sales for the Jeep brand. Now we’ve got the products and the CO2 emissions. I joke around, that when I came over to the UK in 2012, the dealers said, “you guys need to fix your engines, you’re really high in CO2,” and I told them that in the US we don’t really look at the CO2. They build the car, ship it over the Atlantic and we measure the CO2 in kilogrammes not grammes.

“We’ve done a really good job with the partner‐ ship and the merger with Fiat. They have given us technical expertise and a focus on what we need to do if we really want to grow in Europe and other emissions sensitive regions.”

New models and a manufacturing network based in the US is putting pressure on supply.

“Right now, our vehicles are constrained,” says Zanlunghi, “We’re at capacity on Grand Cherokee, we’re at capacity on Wrangler and we’re just about at capacity on Renegade as well.

The Trailhawk variant of the Renegade currently accounts for 10% of sales across the EMEA, compared with a forecast of 8%, without a launch in the Middle East yet, which is likely to drive four‐ wheel‐drive demand higher. Overall four‐wheel‐ drive models take a 50% slice of sales across Europe. “That’s great, because we were targeting somewhere between 25% and 30%.”

Despite the traditional Jeep looks of the Rene‐ gade, Zanlunghi says that female customers are also being drawn to Jeep by the model, “We’re also seeing female buyers attracted to it, we’ve seen that 35% of our buyers for Renegade are female. We put a strategy together to appeal to women buyers. We didn’t put an official target on the board, but we were thinking somewhere around 25% and it’s driving a totally new buyer to the brand.”

Will Renegade deliver more body styles? Wait for the Geneva Show, says Zanlunghi.

internationalfleetworld.com / 25

FLEET FOCUS Austria

Against the tide Slow growth and rising unemployment could unsettle Austria’s strong economy, but the business car sector looks steady, reckons Anne Dopson.

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A

ccording to ABA‐Invest in Austria the automotive sector in the country generates €43 billion in revenues annually and employs some 370,000 people in 700 companies. Annual production of around 247,500 vehicles in total each year breaks down into some 124,000 cars, 89,000 motorcycles, 19,500 trucks and 15,000 tractors. In addition, the country produces around 2.2 million engines and transmissions each year.

Magna Steyr is the largest car manufacturer in the coun‐ try, building a range of models under contract, including the MINI Countryman and Paceman, Mercedes G‐Wagen and Peugeot RCZ. The company has built up a reputation for producing four‐wheel‐drive systems too. MAN, part of the Volkswagen Group is the dominant manufacturer of commercial vehicles.

Data from the European Automobile Manufacturers Association (ACEA) show that for January to November 2015, total new car registrations in Austria reached 285,723, marginally less than for the same period in 2014 (285,927). LMC Automotive gives a full year total of 304,261, indicating year‐on‐year growth of 0.3% compared with 2014. Data for November shows registra‐ tions for the month 8.2% up on November 2014 at 23,381.

LMC indicates that this growth trend continued into Decem‐ ber with registrations up 6.6% to 18,538 compared with December 2014.

Slow economic growth: rising unemployment Is that a good sign? In June 2015, Bloomberg reported that Austria had been given one of the lowest forecasts for economic growth in the Eurozone in 2015 at 0.8% GDP, compared with an average of 1.5%. Unemployment was also slowly rising, reaching 5.7% in April 2015. The motor industry may be one of the reasons for this performance. Bloomberg reported that Austria’s eastern neighbours such as the Czech Republic, Hungary, Poland and Slovakia are making a better job of investment in the automo‐ tive supplier sector, providing vehicle parts to Germany in particular. While Poland and the Czech Republic are improving their market share in trade with Germany, Austria has seen its share decline, falling below that of the Czech Republic and Poland in 2013.

MINI Clubman

Magna Steyr is the largest car manufacturer in the country, building a range of models under contract, including the MINI Countryman.

internationalfleetworld.com / 27

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FLEET FOCUS Austria

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According to the US Central Intelligence Agency (CIA) Germany is Austria’s largest export destination, responsible for 30.4% of Austrian exports, considerably larger than the share that goes to Italy, in 2nd place at 6.5%. Germany is also the largest exporter to Austria responsible for a 41.9% share, with Italy again second with 6.5%.

A forecast summary from the OECD in November 2015 suggests that a gradual recovery is underway and GDP could reach 1.7% by 2017. The OECD report suggests that, “The recovery will be driven mainly by historically low interest rates, lower oil prices, a pick‐up in foreign demand and a weaker euro. Consumer confidence remains weak but the income tax reform, to enter into force in 2016, will boost private consumption.”

The forecast summary continues, “Close supervision of banks, in particular those active abroad, is essential to revive confidence. Reform backlogs in services hinder competition and reduce other sectors’ prospects of benefit‐ ing from cost‐efficient intermediate inputs and the diffusion of new technologies. Growth could be further strengthened and made more inclusive by removing remaining impedi‐ ments that restrict the scope of the elderly, in particular women, to participate in work.”

It’s a less than enthusiastic forecast, but even so, Austria has a strong economy, based mainly on the service sector, responsible for some 70.5% of GDP according to the US Central Intelligence Agency (CIA). Industry is reckoned to be responsible for 28.1%.

High renewable energy mix Austria produces just 20.8% of its electricity from fossil fuels, according to the CIA, which states that 67.2% of the renewable energy is generated from hydroelectric plants and 12% from other renewable sources. This would seem to be a good basis for an EV market. That suggestion appears to be borne out by ACEA data on Alternative Fuel Vehicle (AFV) registrations in the EU, which between January and September 2015 rose by 29.2% compared with the same period in 2014 to 4,298, greater than the average growth across the EU of 19.8%.

Even so, this represents around 1.8% of total new car registrations in a full year, in line with AFV registrations across the major EU markets. Not surprisingly it was electrically based AFVs that fuelled the growth with EV

registrations growing by 33.1% to 1,331 and hybrids by 42.3% to 2,424 in the same period.

Fleet Sector Stephan Klier (pictured) is the CEO of Alphabet Austria and gave us some insight into the business car market in the country.

Overall, Klier reckons the business car sector accounts for around 400,000 vehi‐ cles, which is approximately 8.5% of the total car parc in the country. As the ACEA data shows, the overall number of annual car registrations is roughly static in Austria at the moment but Klier thinks there is a slight expansion in the number of fleet cars. “We are currently seeing a move away from the private to the commercial sector,” he observes.

Data from ACEA for 2014 shows that 59.12% of the cars in Austria are diesel powered with 38.42% powered by petrol engines and the remaining 2.46% powered by alternative fuels. It is no surprise that most business cars are also diesel powered, but tax incentives will encourage more E‐mobility in 2016, reckons Klier, “E‐mobility will grow further in 2016 due to no Benefit‐in‐Kind taxation, VAT deduction, no NoVA and no road tax.”

NoVA or Normverbrauchsabgabe is a tax on fuel consump‐ tion, imposed on all new cars registered in Austria. The tax is based on a bonus/malus system where cars with the high‐ est CO2 emissions pay the highest rate of NoVA up to a maxi‐ mum of 32%. The scheme was designed to encourage the use of cars with lower CO2 emissions.

As Klier points out, EVs do not attract a range of other taxes applied to business cars or their drivers. The only one of those he lists that is specific to business cars, as in many other coun‐ tries, is the Benefit‐in‐Kind (BiK) taxation levied on company car drivers. Klier indicates that BiK is levied at a rate of 2% for cars with CO2 emissions of 130g/km or above and at 1.5% for those with CO2 emissions of less than 130g/km.

Klier sees a similar trend in Austria to other major Euro‐ pean markets for SUVs and crossovers. These models are growing in popularity among business drivers.

Closed‐ended leases and finance lease products are the avail‐ able forms of finance for fleet leasing and Klier reckons that operational leasing accounts for around 80% of the market with the remaining 20% accounted for by finance leasing.

Made in Austria...

Mercedes G-Wagen

28 / internationalfleetworld.com

MINI Paceman

REMARKETING Austria

Data Driven More of Austria's leasing companies are seeking a single-provider solution to handle their remarketing dealings, according to Autorola country manager Rene Buzek.

B

usiness cars account for around half the new regis‐ trations in Austria, a market that saw ups and downs in 2015. It began slowly, according to data from Austria's car manufacturer association, Automotive.co.at.

The first half of the year saw a dip of 3% compared with the first six months of 2014.

Mid‐February numbers were particularly stark, down year‐on‐year by almost 8,000 units.

Yet by mid‐March, sales recovered dramatically with figures that eventually leapt above the 2014 numbers. The healthier returns endured as the months passed and by September 2015, new car sales were 4.4% (1,103 units) up year‐on‐year.

Several of Austria’s largest leasing companies are now opting to outsource all non‐financial aspects of the remar‐ keting process. It’s a significant trend that Autorola has responded to with its offer of a full service solution. Clients no longer have to make separate arrangements for stages such as storage, logistics, appraisal, damage calculation, invoicing, etc. Instead, leasing companies are looking to companies like Autorola to support every function between a vehicle's return and its delivery to a buyer.

Austria was one of the few countries in the Eurozone to emerge relatively unscathed from the financial crisis. The car market was not adversely affected by the crash; in fact, record registration figures of just over 356,000 were achieved in 2011. By 2013, Austria had a higher real GDP level than before the crisis, a boast that only half of the EU member states can make.

Nevertheless, the left‐leaning coalition government’s new tax package comes into force in 2016. The aim is to boost economic growth by reducing tax rates on low and middle incomes. Each taxpayer is expected to benefit to the tune of €1,000 per year. Boosts to consumer spending power will always be welcomed by car dealers.

This good news is tempered, however, by additional reforms such as an increase in sales tax rates from 10% to 13% and perks on company cars coming to an end.

As the Austrian consumers buyers tend to opt for higher than average trim, features such as leather upholstery and heated seats are common. Diesel engines dominate; however, petrol is making a comeback in Austria and may soon achieve parity in the car parc.

The Volkswagen Golf dominates new car sales, shifting twice the number of any other model. The rest of the top five places are fought out between VW Polo, VW Tiguan, Skoda Octavia and Skoda Fabia. With the VW Passat and SEAT Ibiza also featuring in the top 10, only Opel Corsa and Hyundai's i20 and ix35 models disrupt the VW dominance.

As the various brands fight it out in the rankings, data is a weapon they all choose to deploy.

As with many other parts of Europe, Austria's dealers are struggling to find much profitability from selling new cars. As a short‐term workaround, pre‐registered vehicles are assist‐ ing some dealerships gain enough OEM bonus to break even or sneak into the black each month. Thankfully, however, more dealers are pursuing a smarter and more stable route to prof‐ itability by stepping up their used car sales activity.

internationalfleetworld.com / 29

PROFILE Jaguar Land Rover

Accelerated pace Jaguar Land Rover held firm against challenging global economic conditions last year, posting a total sales increase in the face of regional difficulties.

The company’s fortunes look set to improve in 2016, with new and refreshed models reaching global markets, and Jaguar’s F-PACE SUV poised to drive sales in a whole new segment…

“The international launch of F-PACE in April 2016 will position Jaguar in the lucrative and fleetheavy SUV sector.”

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Manufacturer Jaguar Land Rover Total sales 2015 487,066 Headquarters Coventry, UK Global market share 0.7% No. of models 10

European and US sales provide stability

J

aguar Land Rover posted its sixth consecutive year of sales growth in 2015, despite facing challenging conditions in the key market of China and insta‐ bility in other global markets, including Russia and South America. Taking the brands separately, Land Rover sold 403,079 vehicles globally in 2015, 6% up on 2014, with new Discovery Sport and rcently refreshed Range Rover Evoque driving sales. Total Jaguar sales were up 3% for the year, with 83,986 vehicles sold, boosted by sales of Jaguar XF and new Jaguar XE. Total North American sales of 94,066 vehicles represented a 25% increase over 2014 figures, carried by the success of Land Rover’s SUV models. For the full year 2015, Land Rover US brand sales reached an all‐time high of 70,582 units, up 37% on 2014. September marked the start of regional sales of 2016 Range Rover and Range Rover Sport featuring a 3.0‐litre supercharged V6 diesel engine. Both models experienced a sales uplift following the refresh, particularly brand volume leader Range Rover Sport, with total sales of 21,459, up 20% over 2014.

Despite Jaguar F‐TYPE performing well with 4,629 units sold in 2015 (13% over 2014), total Jaguar US brand sales experienced an 8% decrease in 2015. A year after the European market, XE arrives in the US this year alongside the new F‐PACE SUV, and these key models coupled with the roll‐out of the EliteCare ownership package as standard should provide a significant boost to regional sales this year.

Europe was the company's largest sales region in 2015, with sales up 28% year‐ on‐year; and with an uplift of 21% over 2014 figures, a total of 100,636 vehicles were bought by customers in the home market of the UK. The high‐profile launch of new XE in Q2 2015 contributed to strong growth in the second half of the year, with 6,648 Jaguars sold in Europe in September alone.

Despite the opening of a new manufacturing facility in Changshu and China’s position as Jaguar Land Rover’s fastest growing market in 2014, the company recorded a 24% sales decline in 2015. Jaguar Land Rover attributed this drop to instability in the Chinese economy and supply issues caused by the destruction of 5,800 brand vehicles in a fire at the Chinese port of Tianjin in August. The company aims to build on the foundation of successful launches of Range Rover and Jaguar XE towards the end of last year to strengthen its position in the Chinese market in 2016.

The company’s ‘rest of the world’ sales suffered a downturn in 2015, impacted significantly by ongoing difficulties in Russia. Jaguar Land Rover chose to briefly halt sales to the region in late 2014 following the collapse of the rouble, and the Russian car market remains sluggish. Before the economic downturn, Russia was a key growth territory for the company, with Russian buyers contributing 20,549 sales in 2012 (+43%). Economists predict it could take up to five years for the Russian economy to fully recover to pre‐recession levels.

JAGUAR LAND ROVER Global sales, by territory Territory Europe Of which UK North America China Rest of the world Total

2014 169,182 82,872 74,981 122,010 96,505 462,678

2015 210,934 100,636 94,066 92,474 89,592 487,066

% change +28% +21% +25% -24% -7% +5%

Expansion of global network Jaguar Land Rover has invested heav‐ ily in the expansion of its global manufacturing network over the past decade, including the signing of a number of manufacturing partner‐ ships with Chinese automakers. The creation of new international plants offer protection against currency fluctuations and allow Jaguar Land Rover to leverage the local sales networks more effectively.

The first vehicles from the company’s inaugural plant in Brazil are due off production lines in mid‐ 2016. Located on the outskirts of Rio de Janeiro, the new plant is posi‐ tioned to supplement UK production and has the capacity to build around 24,000 vehicles annually for Brazil and other South American markets.

It is Jaguar Land Rover’s first wholly‐ owned facility outside of the UK, and will initially manufacture Land Rover’s Discovery Sport and Range Rover Evoque models.

Also under construction is a new facility in Nitra, western Slovakia, scheduled for opening in 2018. The new facility will provide a European manufacturing hub to support the UK sites, with the aim of reduced lead times. The Slovak plant will have an initial capacity of 150,000 vehi‐ cles, and will manufacture a range of Jaguar Land Rover vehicles on the new Lightweight Aluminium Archi‐ tecture. A new manufacturing part‐ nership has also been agreed with Magna Steyr, an operating unit of Magna International, to build future vehicles in Graz, Austria.

During this time, the company has also made significant investment in its UK vehicle manufacturing facili‐ ties at Castle Bromwich, Halewood and Solihull to support the introduc‐ tion of Jaguar XE, XF, F‐PACE and Land Rover Discovery Sport.

Finances have also been ring‐fenced to double the size of the Engine Manufacturing Centre (EMC) and continue the roll‐out of new Inge‐ nium engines across the range.

internationalfleetworld.com / 31

’

PROFILE Jaguar Land Rover

’

Where

Manufacturing plant locations

are they made?

5 1 2 3 4

9

1

FIN fleet in numbers

164g/km CO2 emissions of Range Rover Hybrid with 3.0-litre V6 diesel engine and 35kW electric motor.

80%

Percentage of Jaguar Land Rover vehicles manufactured in the UK that are exported overseas.

5.5 seconds Time new Jaguar F-PACE with 80hp 3.0-litre V6 petrol engine takes to accelerate from 0-100kph.

32 / internationalfleetworld.com

6

Castle Bromwich, West Midlands, UK – Jaguar F-TYPE, XJ, XF, XF Sportbrake.

2

Solihull, West Midlands, UK – Land Rover Discovery, Range Rover, Range Rover Sport, Jaguar XE.

3

Wolverhampton, West Midlands, UK – Engine manufacturing centre.

4

Halewood, Merseyside, UK – Land Rover Freelander 2, Range Rover Evoque, Discovery Sport.

5

Gaydon, Warwickshire, UK – Hybrid engineering centre.

6

Changshu, Jiangsu Province, China – Range Rover Evoque.

7

Pune, India – Jaguar XF, XJ, Range Rover Evoque.

7

8

8

9

Coming soon...

State of Rio De Janeiro, Brazil – Discovery Sport, Evoque. Production begins mid-2016.

Nitra, Slovakia – First vehicles off production line in 2018.

F-PACE launches into the crossover segment...

T

he international launch of F‐PACE in April 2016 will position Jaguar in the lucra‐ tive and fleet‐heavy SUV sector, against rivals such as the Audi Q5, BMW X3 and new Mercedes GLC. Based on the C‐X17 concept unveiled in 2013, F‐PACE uses the same Lightweight Aluminium Architecture that underpins the XE and XF. Marketed as a practical sports car, Jaguar is claiming a spacious, high‐spec cabin with room to seat five adults, and a class‐leading 650‐litre luggage compartment.

The optional electronically‐controlled Adaptive Dynamics system measures body and wheel movement 100 and 500 times a second respectively, and the Configurable Dynamics system first used in the F‐TYPE allows individual settings for the throttle, automatic transmission, steering, and, where fitted, the Adaptive Dynamics system.

Three engines will be offered from launch– one petrol and two diesels. The entry‐ level diesel is the 180hp 2.0‐litre Ingenium diesel seen in XE and XF and bringing CO2 emissions from 129g/km. A 300hp 3.0‐litre V6 diesel will also be available, alongside a supercharged 380hp 3.0‐litre V6 petrol engine.

Land Rover has confirmed it will launch a convertible Range Rover Evoque in 2016, based on positive customer feedback for the concept first shown in 2012. Set to be the only soft‐top option in the crossover class, it’s likely that the production version will be almost identical to the concept, but with styling alterations from the facelifted model launched in late 2015.

The Evoque Convertible will feature versions of Jaguar Land Rover’s new Ingenium 2.0‐litre diesel engine. Gerry McGovern, design director and chief creative officer at Jaguar Land Rover, said the company had built up a business case for the new model, and said it would have the off‐roading capability expected from a Land Rover product.

Jaguar Land Rover unveiled potential future hybrid and battery electric vehicle tech‐ nologies at the Cenex LCV2015 event, held in the UK at the end of last year. The three prototypes, comprising a powerful mild hybrid system with a three‐cylin‐ der engine, a plug‐in hybrid and a plat‐ form demonstration of a long‐range electric vehicle, were designed to show how modular electric drive system could be used across multiple low‐ carbon drivetrains. The protoypes are the product of a two‐year, €21.4m (£16.3m) research project that involves 12 UK technology partners.

JAGUAR LAND ROVER fleet model range

Jaguar XE

Jaguar XF

Jaguar XJ

Variants: 4dr sedan Markets: Global.

Fuel: 3.8-8.1l/100km CO2: 99-194g/km

Variants: 4dr sedan Markets: Global.

Fuel: 4.0-8.6l/100km CO2: 104-204g/km

Variants: 4dr sedan Markets: Global.

Fuel: 5.7-11.1l/100km CO2: 149-264g/km

Jaguar F-PACE

Jaguar F-TYPE

Land Rover Discovery Sport

Variants: SUV Markets: Global.

Fuel: 4.9-8.9l/100km CO2: 129-269g/km

Variants: Coupe, Roadster Markets: Global.

Fuel: 8.4-11.3l/100km CO2: 199-269g/km

Variants: SUV Markets: Global.

Fuel: 4.7-8.3l/100km CO2: 123-197g/km

Land Rover Discovery / LR4

Range Rover Evoque

Range Rover Sport

Variants: SUV Markets: Global.

Fuel: 7.7-11.5l/100km CO2: 203-269g/km

Variants: Crossover Markets: Global.

Fuel: 4.2-8.6l/100km CO2: 109-201g/km

Variants: SUV Markets: Global.

Fuel: 6.2-12.8l/100km CO2: 164-298g/km

Range Rover Variants: SUV Markets: Global.

Fuel: 6.2-12.8l/100km CO2: 164-298g/km

internationalfleetworld.com / 33

Jeep Cherokee Will emissions hold back the Cherokee 2.2 diesel’s fleet ambitions, asks John Kendall?

SECTOR Medium SUV PRICE €35,960–€41,440 FUEL 5.6–6.1l/100km CO2 150–160g/km

J

eep appears to be enjoying something of a revival at the moment, spearheaded in Europe at least by the impressive Renegade, the first Jeep to be built outside the US. The car is built in Italy, sharing its under‐ pinnings with the Fiat 500X and 500L, but about as different as its possible to be from those two products.

The next model up the scale is the Cherokee, although that will change during 2016 with the arrival of Jeep’s C‐segment SUV, likely to appear at the Geneva Show in March. Diesel power for the European Cherokee has previously come from the FCA 2.0‐litre engine, which can trace its development back to the joint project with GM back in the 2000s.

Last year that changed, with the addition of a new 2.2‐ litre diesel which Jeep is using to provide a flagship model with a choice of either 182hp or 197hp. Both engines develop 440Nm of torque at 2,500rpm. Empha‐ sising the upmarket nature of the model, this Cherokee is only available with four‐wheel drive and nine‐speed automatic transmission, a variant of the ZF nine‐speed auto also used in the Renegade and in a range of premium 170hp diesel auto variant. models from JLR, BMW and Mercedes‐Benz.

When the engine was introduced, Jeep took the oppor‐ Vital fleet figures for the 182hp engine are combined tunity to improve the specification across the Cherokee fuel consumption of 5.7l/100km and CO 2 range, so every model now comes with an emissions of 150g/km. This performance is electric tailgate, rain‐sensing wipers and FLEET FACT also shared with the 197hp engine equipped light‐sensing headlamps, a multi‐adjustable with the Active Drive 1 system fitted to the driver seat with lumbar support and auto‐ New 2.2D 182hp version too. 197hp Limited models matic dipping rear‐view mirror, housing a with Active Drive II take a fuel and emissions built‐in microphone. offers lower fuel hit with combined fuel consumption of Options include a ‘Technology Group’ pack consumption & 6.1l/100km and CO2 emissions of 160g/km. which includes a range of driver assist systems C02 than 2.0-litre.

Active Drive II adds a two‐speed transfer box include Advanced Brake Assist, Lane Departure for more serious off‐road work.

Warning Plus, automatic headlamp dipping, full‐ In either case, the emissions will make it a restricted speed collision warning plus, adaptive cruise control, engine sell to fleets in emissions‐taxed markets. Even so, fuel Start/Stop, blind spot monitoring and parallel park assist. economy and emissions are lower than the outgoing Luckily, the new engine loses none of the refinement of the 2.0‐litre diesel. It’s a large car, but handles well and the nine‐speed automatic makes for effortless driving. As we discovered it is also a very capable off‐roader, particularly with the Active Drive II system, giving the car wading and off‐road capabilities that few fleet drivers are likely to call upon. We followed rivers and forded them as well as took on some rocky terrain to challenge off‐road flexibility.

It’s that effortless driving on road that is likely to appeal to most fleet drivers, plus the space for five adults.

Jeep knows that it faces some stiff competition from models such as the Land Rover Discovery Sport, BMW X3, Audi Q5 and Volvo XC60 and the design reflects that. This isn’t the square‐jawed Jeep you might expect, with the lower frontal area of a crossover thanks to the raked windscreen and low front panel.

34 / internationalfleetworld.com

what we think highlights AWD with optional transfer box More power than 2.0-litre diesel with standard nine-speed auto 2.2-litre emissions from 150g/km C02 and 5.7l/100km

Cherokee has not caught buyers’ imaginations in Europe as it has in the US, possibly because Jeep’s heritage doesn’t have the same impact. The Cherokee is a good car, with more off-road potential than many rivals and the 2.2-litre engine gives it better performance and appeal. But rivals like the X3, XC60 and Discovery Sport offer lower emissions with similar power.

List of optional safety and driver assistance equipment

key fleet model Cherokee 2.2 185Auto 4WD (Active Drive 1)

internationalfleetworld.com / 35

Kia Optima Kia can take on the market leaders with the new Optima, reckons John Kendall.

SECTOR Upper Medium PRICE From €24,990–€35,990 FUEL 4.2–7.5l/100km CO2 110–175g/km

t

he Optima’s runaway success when it was launched in North America five years ago was arguably a turn‐ ing point for Kia there, but it meant European buyers had to wait while Kia struggled to keep up with US demand.

The ingredients were right; a comfortable D‐segment sedan with its eyes set on mainstream rivals like the Volk‐ swagen Passat, Ford Mondeo, Opel Insignia, as well as the Peugeot 508, Mazda6 and Toyota Avensis. Something was lacking in the chassis department though, which held it back from taking on more European‐focused rivals.

Some two to three years after the car reached us, it may seem strange that the Optima is being replaced, even if it’s by a car that looks remarkably similar. Its short life cycle has everything to do with the US success that delayed the Optima’s arrival here. The outgoing model is now five years old and Kia’s model line‐up doesn’t usually live much longer without replacement.

The European version debuted at the Frankfurt Show last September. Don’t be fooled by the similar looks.

Underneath the skin the car has been considerably revised markets like the UK only took the 1.7‐litre diesel, carried to offer a range of improvements. The wheelbase is 10mm over to the new model, but with power raised to 141hp. longer at 2,805mm, adding 10mm to overall length at But the hybrid and plug‐in hybrid models may help those 4,855mm. At the same time, it is 25mm wider looking for an alternative to diesel. and 10mm taller. That means more space Even so, the diesel is likely to be a strong FLEET FACT inside, offering more leg and knee‐room as seller for fleet buyers. It will give combined fuel well as more shoulder room. consumption of up to 4.2l/100km with CO2 1.7CRDi offers Externally, aerodynamics are improved with emissions of 110g/km for the six‐speed a drag factor of 0.29Cd, reduced from 0.30Cd. manual variant or 116g/km (4.4l/100km) for 4.4l/100km Nine colours will be on offer and all models will the new version with dual clutch seven‐speed with 116g/km have alloy wheels. Next year a station wagon automated transmission. This model replaces CO2 emissions. version will join the range, essential across the former six‐speed automatic.

Europe, while there will also be petrol/electric Out on the road, even in the torrential rain hybrid and plug‐in hybrid versions during 2016. It is not we experienced around Frankfurt, the car feels completely yet clear whether the new 2.0‐litre petrol engine will be different from its predecessor, mainly because 50% of the offered in all European markets. With the old model, body structure is now made up using advanced high‐ strength steel, giving it the chassis capable of taking on its European rivals. Optima now feels like the car the previ‐ ous model could have been. The revisions bring lower noise levels, which makes it a more refined cruiser than it was before too. If the previous model lacked what it takes to compete with the market leaders head on, the latest Optima will give them a much more difficult time.

The extra interior space is a definite plus for occupants front and rear. The extra 10mm in the wheelbase as well as re‐shaped front seats provide an additional 25mm rear leg room, while shoulder room increases by 20mm in the front and 17mm in the rear. Headroom has been increased by 5mm in the front and 15mm in the rear.

There is now a comprehensive suite of standard safety equipment including seven airbags and Kia’s vehicle stabil‐ ity management (VSM) system. Options include advanced smart cruise control, autonomous emergency braking, lane keeping assist, high beam assist, blind spot detection and rear cross traffic alert.

36 / internationalfleetworld.com

what we think

highlights Four-door and Sportswagon variants More interior space 1.7 diesel manual with Start/Stop emits 110g/km C02 and returns 4.2l/100km

Optima is now a challenger to the established European market leaders. The revisions are all for the better, while the station wagon and hybrid models will give it even more fleet appeal in 2016.

Reduced CO2 emissions and hybrid options should bring increased demand too.

More safety and driver assistance equipment

key fleet model Optima 1.7CRDi manual

internationalfleetworld.com / 37

SEAT Ibiza 1.4 TDI Low fuel consumption and emissions help to boost the Ibiza’s fleet appeal, reckons John Kendall.

SECTOR Supermini PRICE €16,280–€20,660 FUEL 3.4–3.8l/100km CO2 88–102g/km

I

There is also a tiredness recognition system and multi‐ biza celebrated its 30th anniversary in 2015 and the collision brake option. Optional equipment includes a 4th generation model got a substantial re‐working in new sound system, 6.5‐inch colour touchscreen naviga‐ time for the Euro‐6 emissions limits. Among the tion system and a range of option packs. There are new changes, Ibiza came with new steering and suspension paint colours and alloy wheel designs. set‐ups, a new interior with a Leon style dashboard, Taken together, the changes make the Ibiza a better car centre console, steering wheel and upholstery options, to drive and offer improved comfort for passengers. Fleets new engines and new connectivity options. are likely to find the 1.4TDI the more appealing engine From a fleet perspective, it’s the new three‐cylinder because of the low CO2 emissions and fuel consumption. petrol and diesel engines that are likely to attract most Besides the 75hp Ecomotive model there attention with CO 2 emissions in the 88‐110g/km range is a conventional 75hp version (101g/km CO 2) as well and combined fuel consumption between 3.4 and as a twin‐clutch DSG variant with a 4.8l/100km. Of these it’s the 1.0‐litre 90hp version of the engine (99g/km TSI 95hp petrol engine offering CO2) and a 105hp version of the engine 4.1l/100km and 94g/km and the with five‐speed manual transmission 1.4TDI 75PS Ecomotive with 3.4‐ (95/97g/km CO2).

3.5l/100km and 88‐90g/km (depend‐ It’s not the first time that the VW ing on body style) that are the economy group has developed a 1.4‐litre three‐ champions. The petrol model is avail‐ cylinder diesel engine, but the new able with all three Ibiza body styles, SC engine is not related to its predecessor three‐door sport coupe, five‐door and in any way. It uses an aluminium cylin‐ ST sports tourer, while the diesel is only der block to reduce weight, a balancer available with the five‐door and ST shaft to smooth out vibrations and high body options. pressure fuel injection to help meet the Changes in detail include new elec‐ Euro 6 emissions limits. It’s a smooth tric power steering with two modes. engine with the likeable off‐beat sound Smart phone connectivity is available The changes are all for the of a three‐cylinder engine. At tick over as Full Link, which includes MirrorLink, better, improving interior the combustion rattle marks it out as a Apple Car Play and Android Auto. This appearance, while the new diesel, but it is less obvious on the road. includes a touchscreen infotainment With maximum torque produced from system as standard. SEAT DriveApp has three-cylinder engines 1,750rpm, there’s plenty of pulling been developed for MirrorLink and offer good performance, power low in the rev range and with includes a range of functions from impressive fuel economy peak power produced at 3,500rpm, the weather, audio mini player, on‐board and low emissions. engine thrives on low revs, which helps computer functions and Read To Me for to keep noise levels low.

SMS, email, Facebook, Twitter and RSS.

what we think

38 / internationalfleetworld.com

Suzuki Vitara S Downsized petrol engine is a tax-conscious option for fleets, says John Kendall.

SECTOR Crossover PRICE €22,670–€24,170 FUEL 5.4–5.5l/100km CO2 127–128g/km

I

t is less than a year since Suzuki launched the latest the same drivetrain options, which include the FCA‐sourced Vitara range, giving the company’s long‐running model 120hp 1.6‐litre DDiS diesel engine with either six‐speed much more appeal than before. Now it has introduced manual or six‐speed dual clutch (TCSS) transmission. Both 1.6‐ a new petrol engine to the range, which has plenty of litre engines are available with either two or four‐wheel drive, appeal for fleet drivers. while the 1.6‐litre engine is also available with the six‐speed The new engine looks similar on paper to those produced automatic transmission in both two and four‐wheel drive. by other manufacturers, using direct fuel injection and The Boosterjet engine might seem a little down on power turbocharging to enable downsizing. From a displacement of compared with rivals from the VW Group for instance, which 1.4‐litres, the new Boosterjet engine develops 140hp at offers 150hp, but the Suzuki’s kerb weight of around 1.2‐ 5,500rpm and 220Nm of torque between 1,500rpm and tonnes ensures that performance is lively. The small 4,000rpm. Suzuki offers the new engine with either a six‐ turbocharger is designed to offer boost from low revs and speed manual transmission or six‐speed without lag and does so in practice. It’s not torque converter automatic. The days clear why the engine is only available with when a conventional automatic would the ALLGRIP system – the 1.6‐litre diesel bring a heavy fuel consumption penalty produces much more torque (320Nm), yet are passed. With manual transmission, the can be had with two‐wheel drive. But the Vitara delivers combined fuel consump‐ Boosterjet engine is a delight and so confi‐ tion of 5.4l/100km with CO2 emissions of dent was Suzuki in the chassis, that part of 127g/km, while the automatic delivers the driving exercise involved time on a combined consumption of 5.5l/100km race track. Here the car showed itself to be and CO2 emissions of 128g/km. In both very well behaved in conditions that fleet cases these are the right side of 130g/km drivers are not likely to experience. for markets with emissions related taxa‐ My choice would be the automatic. The tion. Suzuki is only making the Boosterjet new auto transmission is perfectly engine available with its ALLGRIP four‐ matched to the engine’s characteristics so mode four‐wheel drive system.

The new Boosterjet engine that it offers the combination of lively By contrast, Suzuki’s 1.6‐litre petrol performance and automatic convenience offers another option for engine offered from launch in the Vitara for town driving. Since the CO2 emissions Vitara and S-Cross buyers, offers 5.6l/100km and 130g/km CO2 or penalty is small it is unlikely to have a big 5.7l/100km and 131g/km CO2 with the impact on lease prices. While the 1.6‐litre providing a small, powersame automatic transmission, but with diesel offers lower CO2 emissions and ful, fuel-efficient petrol 120hp and 156Nm of torque. The same would be a better choice for long distance engine as an alternative 1.4‐litre engine and six‐speed manual or drivers, the new 1.4‐litre petrol engine to the 1.6-litre diesel. automatic transmission is also offered in provides an alternative for those who the S‐Cross. Both S‐Cross and Vitara share would prefer a petrol engine.

what we think

internationalfleetworld.com / 39

fleet in figures

A year of growing sales Car sales seem to have grown in all major regions in 2015 apart from Eastern Europe and South America as Anne Dopson reports.

Citroën C4 The Citroën C4 accounted for more than half the Citroëns sold in Spain in 2015, with 34,705 registrations, putting the SEAT Leon in second place.

I

t’s that time of year in early January when the annual reckoning for car sales across the big trading areas is being calculated and complete final figures are not yet available. LMC Auto‐ motive reckons that globally, some 89,101,663 cars were sold in 2015, 2.0% more than in 2014.

Growth has not been universal though.

The pressure of economic sanctions on Russia has had a serious effect on the car market there and in some neighbouring states, while economic problems in South America have ensured that the Brazilian market is down by around 20% on 2014.

Japan has also been affected by tax

40 / internationalfleetworld.com

changes in 2014 and 2015, slowing the 2015 market by around 10%.

Western Europe LMC Automotive has produced full year data for Western Europe, which the automotive data provider defines as 17 markets in and around the EU. These are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK. Overall, the market rose 8.9% compared with 2014 to 13,178,628, although it should be said that this figure is lower than that shown

for Western Europe in LMCA’s global light vehicle sales report for January to November 2015 (13,611,440), so it’s not clear if the same countries are included in the different reports.

Of the 17 countries listed, only Luxemburg finished the year with fewer sales than in 2014, with the market down ‐5.8% to 46,902. Among the ‘Big 5’ European markets, France, Italy, Germany, Spain and the UK, Spain logged the greatest percentage increase in registrations during the year, up 20.9% to over a million registrations for the first time in several years, finishing the year on 1,034,231 registrations.

This was in part due to the PIVA 8 scrappage scheme, which helped to support new car sales.

Spain According to data from the Spanish Automotive Manufacturers Association (ANFAC), Volkswagen was the best sell‐ ing brand with 88,300, followed by SEAT with 77,529, just ahead of Renault with 77,087, Opel with 76,470 and Peugeot with 76,314. Interestingly, the best selling car for the year came from none of the top five brands, but was the Citroën C4, with 34,705 registrations, accounting for more than half the Citroëns sold in Spain in 2015 (total 55,313). This put the SEAT Leon in second best‐selling place with 33,268 registrations, significantly for SEAT, ahead of the Ibiza in third place with 31,376. Ibiza has been the backbone of SEAT’s sales there for some time. The VW Golf was the fourth best seller with 29,212 registrations, followed by the Renault Megane with 28,890.

Small cars still dominate the Spanish market with a 28.3% market share at 293,183 registrations, followed by C‐segment models with a 26.5% market share at 274,473 registrations. Small SUVs showed significant growth in the year, with registrations rising by 62.7% to 91,757 and taking 8.9% of the market. Medium SUVs enjoyed more modest growth of 24.8% with registra‐ tions reaching 90,709.

market with 329,177 registrations, up 16.9% on 2014, giving the company a market share of 20.9%. Volkswagen saw registrations rise 7.9% to 119,003, giving the company second place in the market. Ford saw registrations rise by 19.3% to 109,250, while Renault also had a good year with registrations rising 16.3% to 94,769. Opel experi‐ enced a healthy rise in registrations, up 17.5% to 88,940.

FIAT Group models took four of the top five places in the list of best selling models in Italy. The FIAT Panda took the top slot with 126,326 registrations. The second placed Fiat Punto racked up 56,501 registrations, less than half those for the Panda, with the third placed Lancia Ypsilon close behind with 55,831 registrations. The Fiat 500L took fourth place with 49,931 registra‐ tions ahead of the VW Golf with 44,436.

Germany Germany registered the highest number of registrations in Western Europe at 3,206,042, up 5.6% on 2014. This was the first time that German car registra‐ tions had risen above 3.2 million in six years. “That is a rise of 6% over the previous year and demonstrates the current dynamism of the German passenger car market. Incoming orders from Germany also give us reason to be confident,” commented Matthias Wiss‐ man, president of the German Associa‐ tion of the Automotive Industry (VDA).

Italy

UK

Italy also recorded strong growth with registrations climbing 15.8% during the year to 1,574,872. FIAT dominated the

The UK notched up a new record for car registrations with 2,633,503, an increase of 6.3% on 2014. Commenting

on the data, Society of Motor Manufac‐ turers and Traders (SMMT) chief execu‐ tive Mike Hawes said, “The new car market defied expectations in 2015, hitting an all time record driven by strong consumer and business confi‐ dence. Buyers took advantage of attrac‐ tive finance deals and low inflation to secure some of the most innovative, high tech and fuel‐efficient vehicles ever produced. The past four years have seen a remarkable period of sustained growth, and the outlook remains posi‐ tive with every reason to expect the market to hold broadly steady in 2016.”

France France recorded the third highest number of registrations with 1,917,230, an increase of 6.8% over 2014. Renault dominated the French share with 22.1% of the market, followed by Peugeot with a 16.9% share and Citroën with 11.3%. Dacia took a 4.4% market share with DS taking 1.3%. French buyers bought more foreign brands than domestic brands with foreign brands accounting for 43.9% of the total market. Diesel powered models accounted for 57.2% of registrations, petrol for 38.6% and hybrids 3.2% with a further 0.3% for plug‐in hybrids.

Battery electric vehicles took a 0.9% share of the market. The Renault Clio was the best selling model in France with 108,408 registrations, followed by the Peugeot 208, Peugeot 308, Renault Captur and Peugeot 2008.

Ireland Ireland recorded the highest percent‐ age increase in registrations, up 29.8%

internationalfleetworld.com / 41

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fleet in figures

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during the year to 124,945. This drew the following comment from Society of the Irish Motor Industry (SIMI) director general Alan Nolan, “We are pleased that 2015 has turned out to be a good year of continued recovery for our Industry which is a very strong indica‐ tor of the health of the general econ‐ omy. We now look forward to 2016 with greater optimism and a real potential to see registrations return to normal levels that we have not seen since before 2008. Sales within the different sectors have performed well in 2015 and we would expect to see this improvement continue in the New Year.”

VW was the best‐selling brand in Ireland during the year and the VW Golf, the best‐selling model.

Although Volkswagen suffered reduced sales in the fourth quarter (Q4) it clearly has not been enough to make a significant impact on VW car sales. The coming months will show how signifi‐ cant the impact of VW’s errors will be on the company’s sales.

US As we have indicated throughout 2015, the US market has been strong all through the year. The Wall Street Jour‐ nal, using data from www.motorintelli‐

gence.com shows that total light vehicle sales in the US reached 17,470,499 in 2015, 5.7% greater than in 2014. This breaks down into 7,740,912 car sales and 9,729,587 light trucks. Light truck sales were 13.1% up on 2014 while car sales fell by ‐2.2% during the year. The data shows that all car sales were down in 2015, but the falls were greater in the large and luxury sectors of the market.

Luxury sales fell by ‐4.4% to 1,138,912, while large car sales fell by ‐50.5% to 1,845, a very small sector of the market. The falls in car sales were picked up primarily by SUV and crossover sales, with crossovers scoring the major gains. Sales rose 18.5% on 2014 to 4,551,632, while SUVs rose by 10.7% to 1,706,273. Pickup truck sales rose by 9.7% to 2,544,589.

There were few surprises at the top of the sales charts either with pickups in the top three best seller slots. Ford’s F Series occupied its usual place in the number one slot with sales up 3.5% in 2015 to 780,354. Chevrolet Silverado sales were up 13.4% to 600,544, while Dodge Ram sales rose 2.6% to 451,116.

The Toyota Camry proved a rarity in the car sector with sales up 0.2% to 429,355, while the fifth placed Honda Accord saw sales slide ‐8.4% to 355,557.

Ford’s F Series occupied its usual place in the number one slot with sales up 3.5% in 2015 to 780,354.

42 / internationalfleetworld.com

The largest percentage gain was posted by the Nissan Rogue (X‐TRAIL in Japan and Europe) with sales climbing 44.2% to 287,190 in 2015 and December 2015 sales 78% higher than in December 2014 at 26,479.

The Jeep Cherokee had a good year too with a 23.4% rise in sales to 220,260.

In numbers, the Toyota RAV4 also had a good year with sales up 17.8% to 315,412.

General Motors will be celebrating passing the three million sales barrier with 3,082,366 sales, up 5.0% on 2014.

All gains were in the light truck sector though. GM light truck sales rose 16.3% to 2,151,574 with all car sales down ‐14.2% to 930,792.

Ford sales rose 5.3% for the year to 2,603,082. Car sales were down 0.9% to 797,817 and light truck sales rose 8.3% to 1,805,265. Toyota kept Chrysler out of the third slot with 2,499,313 sales, up 5.3% on 2014. Total car sales were marginally down 0.5% to 1,281,693, while light truck sales rose 12.2% to 1,217,620. Chrysler, ranked fourth had the satisfaction of seeing both car and truck sales rise in 2015. Total sales were 7.7% up to 2,200,834, with cars up 6.3% to 481,424 and light trucks up 8.0% to 1,719,410.

DIARY DATE

THE GREATEST SHOW IN FLEET

SILVERSTONE CIRCUIT

11TH MAY 2016

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Business? It’s a pleasure!

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