International Fleet World December 2016 – January 2017

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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet December/ January 2017

The New

HYUNDAI i30 The car for our times

internationalfleetworld.com


THE NEW SEAT ATECA

MAKING BUSINESS EFFICIENT AND ENJOYABLE

TECHNOLOGY TO ENJOY The New SEAT Ateca comes with powerful and efficient turbocharged TSI petrol and TDI diesel engines. There are both front-wheel and 4Drive options available, ranging from 85 KW/115PS to 140 KW/190PS with outstanding torque figures across the range, they meet every performance need and do it efficiently, resulting in modest running costs and lower emissions.

EFFICIENT ENGINES

TCO

CO2 EMISSIONS

With a combined lowest fuel consumption of 4.2-6.2, this SUV Ateca is efficient for its size.

SEAT FOR BUSINESS offers you quality vehicles that are cost-effective with a low Total Cost of Ownership and high Residual Value.

With CO2 emissions of between 111-141 in the smallest engines the SEAT Ateca is more environmentally friendly.

SEAT FOR BUSINESS

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Average fuel consumption: 4.2-6.2 l/100 km. Average CO2 mass emissions: 111-141 g/km.

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INTERNATIONAL

FLEETW RLD All that matters in the world of fleet

contents

December/ January 2017

The New

HYUNDAI i30 The car for our times

internationalfleetworld.com

Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk

16 SPOTLIGHT: All-new Honda Civic.

18 INTERVIEW: Simon Dransfield of JLR

32 Renault’s revitalised fleet offering.

36 TESTED: Toyota C-HR.

Publisher Steve Moody steve@fleetworldgroup.co.uk Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Features Editor Katie Beck katie@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Manager Harry Whyte harry@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Dawn Mitchell dawn@fleetworldgroup.co.uk

04 Fleet Review John Kendall on Indian expansion and US crystal-ball gazing.

06 Inside Knowledge How Trump’s victory could affect the US automotive sector.

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

Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Samantha King sam@fleetworldgroup.co.uk Victoria Arellano victoria@fleetworldgroup.co.uk Web Designer Dan Desta daniel@fleetworldgroup.co.uk

16 Spotlight An in-depth look at the bigger and bolder all-new Honda Civic.

18 Interview JLR’s Simon Dransfield discusses the impact of new Discovery.

20 Telematics & Tracking How car fleets could learn from the trucking sector.

24 Interview FCA’s Gianluca Italia on its group-wide approach to the fleet market. 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

26 LA Auto Show 2016 Our fleet highlights from the biannual show in Los Angeles.

28 Fleet Focus INDIA: How new taxes may help the fleet and leasing sector grow.

32 Profile Impressive new product spearheads Renault’s fleet proposition.

36 Launch Report Toyota C-HR / Mazda3 / Nissan NV300 / McLaren 570GT. STAG Publications

®

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

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

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JOHN_IFW_Jan17_Layout 1 23/11/2016 11:45 Page 1

fleet review This month, editor John Kendall looks at what has changed in the US automotive sector and what further changes are to come...

The Trump effect?

India continues expansion

An American said to me in Los Angeles, “I suppose you think we’re all mad for electing Trump?” A bit like the Brexit vote in the UK, it was both a surprise and at the same time a clear possibility. It may or may not have big implications for the US motor industry, depending on whether Trump is serious about trying to bring jobs back to the US and shutting the door on Mexico. No doubt the lobbyists are already moving in.

One country where the motor industry has developed rapidly is India and we profile the automotive and fleet sectors on page 28. Tax changes could help the fleet sector to continue its expansion, although taxes could make cars more expensive. For many Indians cash is still the favoured medium for purchases and the withdrawal of high value banknotes to try and curb tax evasion is likely to affect many car buyers, particularly in the retail sector. Two-wheels are the majority form of motorised transport still in the country and cash is what many use to buy motorcycles, but it could stimulate the finance sector where many cars are already bought with finance.

LA Auto Show I have not visited Los Angeles for around 20 years, before attending the recent LA Auto Show in November. First impressions were that not much has changed, followed by the impression that quite a lot has changed. By that I mean that the cars appear to have got smaller (while those in Europe have got larger). In the show itself, it was cars from Europe that were the ones to see, like the Jaguar I-Pace, promised to be a production model in the next year. In fact Jaguar was making the most of the Show, using it as a platform to launch the continuation XKSS at the nearby Petersen Museum, which houses Steve McQueen’s original XKSS – but I’m straying from Fleet a bit here.

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See you in 2017... It is still over a month away, just, as I write this, but Christmas is coming. As ever it doesn’t seem possible that the year is rapidly coming to a close. It has not been a great year in many respects, but it has certainly been memorable. Whether you celebrate Christmas or not, enjoy the holiday break, thanks for reading IFW this year and please stay with us in 2017. I’m sure there will be plenty to keep us busy in the New Year.

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ALL-NEW DISCOVERY

IT’LL GET YOU INTO AMAZING PLACES. IT’LL ALSO HELP GET YOU OUT AGAIN.

ALL-TERRAIN PROGRESS CONTROL One of the many innovative features in the All-New Discovery is All-Terrain Progress Control. This manages the engine and brakes, so that the vehicle maintains a comfortable and steady off-road speed automatically. Leaving you to concentrate on steering a path through any far-flung landscape you find yourself in.

LOWER EMISSIONS From 163g/km CO2* HIGHER FUEL ECONOMY Up to 6.2l/100km (45.6mpg) LONGER SERVICE INTERVALS 2 years or 34,000km/21,000 miles

The All-New Discovery is also 480kg lighter than its predecessor, delivering improved fuel economy and a reduction in CO2 emissions by up to 22%. Together with device charging in every seating row, it gives a whole new meaning to ‘working remotely’. landrover.com/fleetandbusiness

Official fuel consumption figures for the All-New Discovery range in l/100km (mpg): Urban 7.2 (39.2) – 14.2 (19.9), Extra urban 5.6 (50.4) – 9.3 (30.4), Combined 6.2 (45.6) – 10.9 (26.0). CO2 emissions g/km: 163 – 254. *159g/km in EU markets 5 seat with Aero wheels and low rolling resistance tyres. Drive responsibly on and off-road.


INSIDE_Trump_US_IFW_Jan17_Layout 1 23/11/2016 12:11 Page 1

inside knowledge

Trump & the US auto sector IHS Markit has prepared an initial response to the momentous news of Donald Trump's election in early November. he US election results may have surprised many, but the result does not present any imminent economic rupture or time-critical event, allowing time to evaluate the likely policy eventualities and separate them from the electioneering rhetoric and to then assess the potential policy impact itself. The election has produced a political shock comparable to Brexit. In terms of an actionable timeline, policies have to be first formulated in detail, likely moderated in negotiation, and then only implemented after a process that includes Congressional review, oversight, and approval. It is important to remember the checks and balances inherent in the US system. While the new president will set a policy and a developed agenda, he will need co-operation from the US Congress to enact some of those policies. However, the president does have the authority to pull out of the North American Free Trade Agreement (NAFTA); that could be done six months after the president notifies his intention of pulling out to Mexico, and would not need Congressional approval. However, the first 100-day plan for a Trump presidency, announced pre-election and so arguably part of electioneering, prioritises no changes with direct or immediate impact for the automotive industry. If anything were to emerge, it is more likely to begin to be seen only after late 2017. Trump's campaign statements on trade agreements and the potential for policy change or renegotiated agreements could have a significant impact on the automotive industry. Additionally, the president-elect could influence regulatory issues in the automotive space, including rules on autonomous technology as well as, clearly, fuel economy and emissions.

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US auto market Delivering on tax cuts and infrastructure spending could re-energise consumer spending, with the potential to extend or prolong the current peak in US auto sales for another year or two, despite the expected end of the pentup auto sales cycle. Sales of pickup trucks in particular could benefit from the new policy dynamic on both residential and non-residential construction and a refocusing on domestic energy. What would follow, perhaps around the turn of the decade, would then depend on how much the new policies boost the US economy and, thus, its ability to tolerate higher federal debt. Any effective adjustment to our market outlook has to come after an economic impact assessment of the new administration's policy. Auto production impacts The 100-day plan, however, does announce an intention to renegotiate NAFTA, which may only signal the beginning of a lengthy process of several years. We expect the initial impact to more likely be the possible postponement of any future sourcing decisions involving cross-border relocations, rather than the re-assessment of plans past the groundbreaking stage. In addition, while the president has the authority to negotiate trade deals, these agreements affect US law and require the approval of Congress, both the Senate and the House. There are several steps to the process, and this procedure can reduce the president's ability to effect change. The president does have a fasttrack authority for trade agreements, under which he can negotiate an agreement and put it before Congress to approve or deny but not amend or filibuster. In 2015, 87.5% of Mexico's production was sold in North America and 59.7% in the United States.


ADVERT_IFM_IFW_Jan17_Layout 1 18/11/2016 13:01 Page 1

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Meeting Geneva 2017 Date: 8 th March 2017 (2 nd press day) Place: Geneva International Motor Show Location: Room K, Congress Center Target groups: International Fleet Managers / International Fleet Procurement Managers Capacity max. 250 people Access only with admission ticket and an official ticket for the press day. Registration and additional information: www.internationalfleetmeeting.com Limited number of participants. Timetable: From 09:00 Welcome Desk opened 11:00 Start of the event / networking 11:30 2 Top speakers (in English) Markus A. Falk, CFE, Vice President, Head of Global Car Fleet Global Procurement Organization SAP SE Jürgen Freitag, Head of Global Commodity Fleet Siemens AG 12:00 Panel discussion – Moderator, Anne Dopson Sales Director International Fleet World 12:30 Lunch buffet and networking 13:30 End of the official event 14:00 – 18:00 Lounge-service for sponsors, media partners and guests (only with admission ticket) Contact: aboutFLEET / A&W Verlag AG • Mrs. Jasmin Eichner • Riedstrasse 10 • CH-8953 Dietikon Phone +41 (0)43 499 18 60 • Fax +41 (0)43 499 18 61 • Mobile +41 (0)79 766 99 00 • je@auto-wirtschaft.ch • www.aboutfleet.ch fleetcompetence europe GmbH • Mr. Balz Eggenberger • Alte Landstrasse 106 • CH-9445 Rebstein Phone +41 (0)71 777 15 32 • Fax +41 (0)71 777 15 31 • balz.eggenberger@fleetcompetence.com • www.fleetcompetence.com

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NEWS_IFW_Jan17 23/11/2016 17:19 Page 1

business news

International Fleet Meeting to take place at 2017 Geneva Motor Show he 2017 International Fleet Meeting is to be held at the Geneva Motor Show next March, offering high-class speakers, a topical panel discussion and comprehensive networking platform. Taking place on the 8 March 2017, within the show itself, it’s the fourth time the event has been held, providing a networking platform for fleet operators and the automotive and leasing industry. Markus A Falk, CFE, vice president, head of global car fleet at global procurement organisation SAP SE, and Jürgen Freitag, head of global commodity fleet at Siemens AG will be top speakers while the following panel discussion will be moderated by Anne Dopson, sales director at Fleet World Group.

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Arval and PSA partner for fleet telematics services

rval and PSA Group have signed an agreement to offer new telematics services for Arval Active Link customers. The new Arval Active Access solution will be offered in all countries where the Arval Active Link telematics solution is offered – with particular focus on France, Italy, Spain and the UK – from the end of this year and will offer additional possibilities for fleets to track and manage their Peugeot, Citroën and DS vehicle fleet. The new collaboration will use technical data gathered by PSA Group to offer fleets additional opportunities for optimising vehicles including measurement of vehicle fuel consumption per journey and real-time maintenance and fault alerts.

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Sofico opens Netherlands office lobal software solutions provider Sofico has GBased opened a new office in the Netherlands. at Houten, near Utrecht, Sofico Services

Netherlands replaces the unit at the company’s head office in Ghent, Belgium and is headed up by business unit leader, René Vermeij (below right). Gémar Hompes, Sofico managing director, said: “We believe the opening of a new office in the Netherlands is a natural progression for our business and we see considerable growth for Miles in the Dutch market, especially in the retail and personal leasing channels.

LeasePlan reports strong results for first nine months of the year easePlan Corporation N.V. has published latest results for the third quarter and the first nine L months of 2016, showing a rise in profits and the number of managed vehicles. Announced eight months after LeasePlan was acquired by a consortium of investors, the results show that gross profit for the first nine months increased by 9% to €868.6 million versus €798.7 million for the same period a year earlier. When adjusting for onetime items in both 2015 and 2016, the gross profit increased by 6% year-on-year. In the first nine months of 2016, Lease Plan’s fleet grew from 1.55 million to 1.64 million vehicles. The company also reported further progress in differentiating its client base, with SME and Private Lease representing the fastest growing segment, achieving 19% year-on-year growth in vehicles under management. LeasePlan also record further fleet growth among its larger international clients, growing this segment by 9.2% year-on-year to 450,000 vehicles under management. The corporate segment showed a year-on-year growth of 6.3%.


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For the latest news, visit internationalfleetworld.com

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Fleets’ safety recognised at ETSC awards he European Transport Safety Council (ETSC) has announced the 2016 winners of the PRAISE awards, highlighting organisations that have taken outstanding measures to improve the safety of their vehicle fleets. The large company award was awarded to healthcare giant Johnson & Johnson, which operates a fleet of over 36,000 vehicles worldwide, while the UK’s O’Donovan Waste Management scooped the small and mediumsized enterprise award. The public authority award went to La Défense – Defensie (The Belgian Military), Belgium.

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RAC, VHD and Europ Assistance tie up for pan-European motoring services he RAC, VHD and Europ Assistance have signed a new agreement to bring an enhanced pan-European offering for motor services. The new agreement builds on an existing partnership between the RAC and Europ Assistance and is intended to improve the offering to Europeanheadquartered motor manufacturers, leasing companies and fleets. The firms said the new agreement will put them in a stronger position to offer services to businesses that operate across Europe in 26 different countries. In particular it enables the firms for business on a Europe-wide basis under the umbrella of one organisation providing centralised functionality. The firms added that the alliance may soon be extended, to include other partners covering new geographies as well as products and solutions.

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Fleet Complete acquires Securatrak anada-based tracking specialist Fleet Complete is expanding into Australia and Asia with the acquisition of Securatrak for an undisclosed amount. Securatrak has over 25,000 vehicle tracking and fleet management subscribers across Australia and Asia. “This is an amazing entrepreneurial team that has built great local expertise in the Australian market and that will become the base for Fleet Complete in Australasia,” said Tony Lourakis, CEO of Fleet Complete. “We believe the Australian telematics market is at an inflection point and is poised for major growth, giving Fleet Complete the perfect opportunity to serve this market demand with its comprehensive IoT product portfolio.”

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A chauffeur with a pretty high IQ. DRIVE PILOT is making its debut in the new E-Class. The car’s innovative pilot and driver assistance functions make life so much easier for the driver and prevent hazardous situations. Experience the next step on the road to autonomous, accident-free driving. The new E-Class. The most intelligent business sedan in its class. mercedes-benz.com/fleet

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EVNEWS_IFW_Jan17 23/11/2016 10:42 Page 1

environmental news

Jaguar debuts I-Pace electric SUV at LA Auto Show aguar has unveiled its I-Pace electric SUV concept, which will be launched in production form in 2018, bringing 395bhp and a claimed 311-mile range. Presented at the LA Auto Show in mid-November, the concept is designed to fuse supercar looks, sports car performance and SUV space in an all-electric package and is said to bring “precise, agile driving dynamics as yet unseen on an electric vehicle” plus a 0-60mph time of around four seconds. The I-Pace is powered by two permanent electric motors integrated into the front and rear axles offering 516lb.ft of torque, exactly the same torque rating as the F-Type SVR, along with all-wheel drive. The liquid-cooled 90kWh lithium-ion battery is positioned as low as possible to improve vehicle agility, and can offer full charging capability in just over two hours; 80% charge capacity is reached in 90 minutes. Driving position has been set much lower than a

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traditional SUV and also offers slimline perforated seats. The interior shows a focus on high-quality materials including dark, unvarnished walnut veneers, and features gearshift buttons integrated into the floating metal legs, a full-length panoramic glass roof, and three screens – two touchscreens in the centre console and a virtual instrument cluster behind the steering wheel. The I-Pace draws on the double wishbone and Integral Link suspension set-up from the XE, XF and the F-Pace, and rides on 23-inch alloy wheels. The unveiling of the I-Pace comes as a growing number of premium car makers looks to break into the electric SUV arena. Mercedes-Benz recently previewed its electric ‘EQ’ range with a ‘close-toproduction’ SUV-coupe concept at the Paris Motor Show. Tesla announced earlier this year that it will launch a compact SUV, and Audi is to launch an electric SUV from 2018.

Plans for US ‘Alternative Fuel Corridors’ to boost take up he United States Department of Transportation (DOT) has announced plans to establish a national network of ‘Alternative Fuel Corridors’ on highways, covering nearly 40,000km, with the aim of encouraging investment in electric and hybrid vehicles. 55 Interstates will serve as the basis for the network spanning 35 states plus the District of Columbia, including 48 designated EV Charging Corridors. According to the DOT, drivers can expect the Alternative Fuel Corridors to provide either existing or planned charging stations every 80km to help combat range anxiety. To make it easier for drivers to locate charging stations, states designated as ‘sign-ready’ will be authorised to use signs that identify charging stations along the highways

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similar to existing signage that alerts drivers to gas stations, food, and lodgings. Almost 30 organisations have so far committed to accelerating the deployment of the charging infrastructure along the Alternative Fuel Corridors, including BMW, ChargePoint, EV Connect, General Motors, Nissan, Pacific Gas & Electric (PG&E), Southern California Edison and Texas-New Mexico Power. Early next year, two studies will be published; the first is a national EV infrastructure analysis that identifies the optimal number of charging stations for different EV market penetration scenarios. The second will provide best practices for EV fast charging installation, including system specifications as well as siting, power availability, and capital and maintenance cost considerations.


EVNEWS_IFW_Jan17 23/11/2016 10:42 Page 2

For the latest EV news, visit evfleetworld.com

Fully electric MINI & BMW X3 from 2020 arald Krüger, chairman of the board of management of BMW AG, confirmed the addition of a fully-electric MINI to the range in 2019, followed by a fully-electric BMW X3 from 2020, in a recent stakeholders conference call. The production-ready fully-electric MINI follows successful trials of the MINI E in 2010, which was a key part of BMW Project i. Powered by a lithium-ion battery pack, the converted MINI Cooper undertook a series of field trials in several countries, including the UK, US, Germany, France, Japan and China. The extension of the range forms part of Phase II of the company’s electrification strategy, alongside the development of a new R&D centre for autonomous vehicle research in the Munich area. Operating from 2017, BMW claims the campus will be the largest of its kind Europe, and together with the FIZ Research and Innovation Centre in Munich and cooperating partners, will develop and test fullyautonomous vehicles at the new site.

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in brief Nissan trials Vehicle-to-Grid Developed by Nissan in partnership with energy provider Enel, eight Vehicle-toGrid 2G chargers have been installed at the UK-based Nissan Technical Centre Europe (NTCE) site, for use by all employees. Nissan is seeking companies running EVs to take part in additional trials as it rolls out the technology across its major European facilities.

Toyota ‘ to consider introducing’ EVs In a statement, Toyota hinted that electric vehicles were under consideration as part of a broad brush approach to alternatively-fuelled vehicles. “We will consider the roll-out of EVs alongside Toyota’s FCV lineup(…)as well as the market conditions of each region/country, as we continue to closely monitor the corresponding situations,” the carmaker said.

Rotterdam wireless charging pilot

Tesla to introduce Supercharging credit scheme esla is to implement a system of Supercharger credits, replacing the current free set-up. Although CEO Elon Musk had previously said he preferred not to charge for use of the network and build the cost into the vehicles, Tesla will now introduce a charge “that allows us to reinvest in the network, accelerate its growth and bring all owners, current and future, the best Supercharging experience”. For vehicles ordered after 1 January 2017, 400 kWh of free Supercharging credits (roughly 1,000 miles) will be included annually. Further Supercharging beyond that will attract a fee that will be charged incrementally and is said to cost less than the price of filling up a comparable petrol car. The changes will not impact current owners or any new Teslas ordered before 1 January 2017, as long as delivery is taken before 1 April 2017.

in numbers

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Europcar expands Mirai fleet Europcar UK is taking delivery of several Toyota Mirai hydrogen fuel cell cars for its fleet after securing a €200,000 OLEV grant. The vehicles will be used to support the firm’s recently acquired ridehailing business Brunel as well as being available for corporate customer use, and will give the firm “the largest privately owned fleet of hydrogen cars”.

Sixty

49%

Number of additional Hyundai ix35 Fuel Cell cars deployed by Paris-based electric taxi start-up Société du Taxi Electrique Parisien (STEP).

Increase in UK plug-in hybrid take up to the end of September over the same period last year. The UK is now Europe’s largest market. Source: ACEA

Energy firm Engie and the Municipality of Rotterdam are running a pilot scheme to trial wireless charging for EVs using dynamic induction charging. Electricity is created by a magnetic field between a coil in the induction plate and in the vehicle. The pilot ends in the first quarter of 2017, with possible expansion options.

Source: Société du Taxi Electrique Parisien (STEP)

Source: Transport and Environment

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NEWS_IFW_Jan17 23/11/2016 17:20 Page 3

manufacturer news

Volkswagen reveals 2017 Golf

in brief

olkswagen has unveiled its facelifted Golf, which gains a midlife VSubtle refresh prior to the launch of the eighth-generation model in 2018. design modifications include new bumpers, front wings and

Online grey fleet guide

updated headlights while the interior gains new technologies and infotainment systems, including the range-topping ‘Discover Pro’ system, which comes with a 9.2-inch screen and can be operated by gesture control – said to be a first in the class. The new Golf also debuts the optional Active Info Display, providing a fully digital instrument cluster with numerous interactive functions via a 12.3-inch colour display. Changes to driver assistance technologies see the City Emergency Braking system gain a new Pedestrian Monitoring function while there’s a new Traffic Jam Assist and Emergency Assist feature and updates to the Park Assist 3.0 semi-automated parking and manoeuvring system. Engine line-up includes a new 150hp 1.5 TSI ‘Evo’ four-cylinder turbo with Active Cylinder Management to be followed by a 130hp BlueMotion version. Golf GTI models gain increased performance and the 2017 Golf also brings a new seven-speed DSG that gradually replace the six-speed DSG.

The ETSC has published a free guide on running grey fleet vehicles. The 20page guide is free to download from the ETSC website, and explains the legal and business benefits of an effective grey fleet management policy.

ARI’s new vehicle replacement tool ARI has launched a new tool that provides fleets with vital data allowing them to pinpoint the right time to replace a vehicle. The solution is available as a value-added benefit to current ARI clients in the US.

Enterprise takes stake in Unidas Enterprise Holdings is to take a 20% stake in Brazilian car rental firm Unidas for an undisclosed amount. The transaction is expected to complete this year and will give Enterprise a seat on the Unidas board.

Arval reaches milestone

U.S. rules to ban silent EVs

Arval has passed the one million leased vehicle milestone across the 28 countries where it operates. The increase comes a year after it reported a total leased fleet of 949,000 vehicles, including those of GE Fleet Services.

ybrid and electric vehicles will soon be required to feature audiH ble warnings for pedestrians if they’re sold in the United States, as part of a new federal safety standard. Originally proposed in 2011, the National Highway Transport Safety Administration (NHTSA) has set a 1st September deadline for manufacturers to equip fourwheeled vehicles with the warning systems, which it said will help prevent 2,400 injuries per year once it comes into force.

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Volvo trials concierge A new concierge service that would take care of servicing, cleaning and refuelling for XC90 and S90 drivers is being trialled by Volvo. The pilot has started in San Francisco and will eventually cover around 300 drivers, offering services that will become part of the Volvo On Call mobile platform.


MEET THE NEW EMPLOYEE OF THE YEAR

The New ŠKODA Superb. The mighty and the elegant, the joyful and the intelligent - the new ŠKODA Superb. In both Limo and Combi versions, the new Superb boasts a unique body shape, class-leading spaciousness and dynamic curves, making it a true flagship of our range. And given its cost-effective operation, modern technology, low emissions and beneficial fleet offers, you are about to meet one of your most efficient and reliable employees ever.

www.skoda-auto.com

Combined fuel consumption and CO2 emissions for the Superb model: 3.8–7.2 l/100 km, 100–165 g/km.


SPOTLIGHT_HondaCivic_IFW_Jan17_Layout 1 23/11/2016 11:50 Page 1

SPOTLIGHT Honda Civic

Bigger & bolder Revealed at the Paris Show, the 10th Generation Honda Civic aims to be more appealing to younger drivers than its predecessor, as John Kendall explains.

Two petrol engine debuts Honda will launch two new petrol engines in the Civic, including the company’s first 1.0litre, three-cylinder VTEC turbocharged unit, generating 129hp. This engine is joined by a four-cylinder 1.5-litre VTEC turbo engine producing 182hp. Both will be offered with a choice of six-speed manual or CVT automatic transmission, offering seven fixed speeds in manual mode. The latest Euro-6 variant of Honda’s 120hp 1.6-litre diesel will also be available and is likely to be a fleet favourite. Honda has yet to publish fuel consumption or emissions figures, but with a focus on aerodynamics and weighing on average 16kg less than the current model, an improvement on the 94-99g/km CO2 emissions seems likely from the diesel. The company says the petrol engines, “Achieve highly competitive fuel economy and efficiency.” The 1.5-litre engine offers more power than the outgoing 1.8-litre VTEC engine.

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FLEET FACT Active safety system suite, Honda Sensing will be standard on all Civics.


SPOTLIGHT_HondaCivic_IFW_Jan17_Layout 1 23/11/2016 11:53 Page 2

Longer and wider – more space A 30mm longer wheelbase and wider platform bring more interior space. This includes 10mm more front shoulder room with 30mm more space between the front seats. Hatchback rear seat passengers can expect 20mm more shoulder room and 95mm more legroom. Honda also claims 45mm more rear knee clearance. Outboard rear passengers also get adjustable seat base cushions. With rear seats up there is 478-litres of boot space. The centre console includes a seven-inch Honda Connect colour touchscreen. Instruments are also displayed on a seven-inch colour Driver Information Interface (DII) including a large digital rev counter and speedometer. The driver can switch between displays including navigation, SMS and email text display, audio track, smartphone contacts, journey and maintenance information.

Safety as standard

What we think...

Standard Honda Sensing will bring a high level of safety equipment to all models. Equipment includes Collision Mitigation Braking, Lane Departure Warning, Road Departure Mitigation, Lane Keeping Assist, Adaptive Cruise Control, Traffic Sign Recognition and Intelligent Speed Assistance. Honda Connect now includes Apple CarPlay and Android Auto for smartphone connectivity. Initial body styles include five-door hatchback and four-door saloon, with estate and Type R models to follow in time. Other features include a new suspension system, lower centre of gravity and stiffer body shell for improved handling and ride comfort. Honda says that the outgoing generation of Civic lost some of the essence of the Civic and was too conservative for younger buyers. All new Civics for all markets including North America will be built at Honda’s Swindon, UK plant following a €234m investment.

The new Civic has all the ingredients for a successful C-segment model. Fresh design should help to draw in new customers, while the high level of standard safety equipment and new engine range will help to raise the Civic’s fleet appeal, with a choice of low emission diesel and petrol engines. More interior space will help to make it a better family car. Upmarket brands could have a new challenger. JK

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IVIEW_SDransfield_IFW_Jan17_Layout 1 23/11/2016 12:26 Page 1

INTERVIEW Simon Dransfield, Jaguar Land Rover

New models new fleet potential New Discovery will add to a growing line of Jaguar Land Rover models with strong fleet appeal across Europe, as John Kendall finds out. aguar Land Rover has not waited for the UK to leave the EU – the company’s definition of Europe already excludes the UK, but includes a total of 43 countries, including Norway, Finland and across to Israel, Turkey, Iceland and Portugal. “It’s quite a broad spectrum, but our core markets are France, Germany, Belgium, the Netherlands, Italy and Spain,” says Simon Dransfield, general manager Fleet and Business Europe for Jaguar Land Rover. “That’s where our core fleet volume sits and also our core fleet competence,” says Dransfield, “I was brought in five or six years ago to start the fleet business, not from a standing start, but our product portfolio wasn’t really aligned to the fleet segment. Over that period of time, we are now in the position that fleet has become the leading contribution in terms of sales channels across Europe. That has been partly through investment at market and dealer level, but predominantly having the products that are appropriate for the market. So whether that is a lowering of CO2 emissions, or the all aluminium architecture that reduces the weight of our vehicles, our performance has pretty much been positioned on the back of the product development. So now around 40-46% of sales are coming from fleet.” That figure applies to Jaguar and Land Rover sales across the company’s defined Europe region.

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Lighter, aluminium-rich Discovery will offer tax benefits for fleets

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Stronger proposition This proportion includes markets that are new and emerging for JLR, such as Poland, Switzerland, Norway and Finland, while in other markets such as Belgium and the Netherlands, over 50% of sales are already through fleet. “It’s quite an exciting journey that we have been on,” says Dransfield, “At the same time we have brought together the Jaguar and Land Rover networks. The financial viability of your brand and proposition has to have some traction in the market and through bringing the two together it has allowed us to work with the right dealers on a long term basis. “In some ways we work in tandem with the UK. The market dynamics are obviously different, but in terms of the general principles of good business, we are very much aligned. We have the fleet business centre programme, so in 67 key metro areas across Europe we have dedicated people and dealerships that have the fleet knowledge and capability and knowledge to position our products in the market, not just with big accounts. Our heartland is really the small to medium enterprise. “In the five to 99 sized fleet is where we really have the traction through the network and also with our leasing partners. So we have a strategy where we work with our leasing companies to leverage their reach, because clearly, we are still, relatively, a small manufacturer in the fleet world. So we see them all as partners, rather than competitors, so we have a very strong relationship there. “That has been the platform to get strong residuals, strong leasing rates and reduction in SMR costs to really make it price competitive. The challenge we have always had is background perception. The brand perception of Jaguar especially has been one of quite a luxurious choice. Our whole challenge has been about making it a viable luxury choice, so it is not seen to be an inappropriate choice. For us that in a way, is the last step that we have to get over, because I think we have got the pricing right, the RVs right and the leasing rates right, so the product is very strong on its own capabilities and now it’s about the brand acceptance and considerations. Is it on your shopping list, is it at the front of your mind if you are thinking about changing your car?”


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Based in Germany The JLR fleet team is based in Germany, which makes the company only too aware of the dominance of the competition from Audi, BMW and Mercedes-Benz. Dransfield believes that JLR still has a considerable distance to go despite having a very capable product range. “Now it’s about making it very relevant to the fleet audience,” comments Dransfield, “That five to 99 is where we see the real heartland. It’s why we get involved in rental. Our rental proposition is not about driving sales, it’s about driving considerations, our presence on the road. We have selected partners that we launch cars with in the rental sector. It’s very select and in controlled numbers. It’s about getting the cars on the road. We are very keen to promote that. If you think about the two factors that we never addressed with Jaguar, it was age – drivers below 50 and women.” Dransfield thinks that the XE was the first Jaguar to break the dominance of men behind the wheel of a Jaguar, “Now we are in the position that the F-Pace is absolutely attractive to both male and female customers. I think we are really widening the attractiveness of the brand through the products and I think products do define brands in terms of how they finish up.”

“In some ways we work in tandem with the UK. The market dynamics are obviously different, but in terms of the general principles of good business, we are very much aligned.”

Discovery grows fleet appeal Land Rover launched the new Discovery at the Paris Show and Dransfield sees this as another step forward with aluminium reducing the weight of the car and the introduction of the 4cylinder diesel to the model line-up. Both have helped to reduce CO2 emissions, making the car more tax friendly in some of the major European fleet markets. He points out that the Discovery 4 was some 480kgs heavier than the new model. “Amazingly, in my key six markets in Europe, Discovery grew 20% in this last year, in fleet,” says Dransfield, “So we have the bizarre situation that Evoque, at six years old, grew 18% yearon-year, last year (2015) to this year. So I have what would be considered ageing model lines, but our life-cycle curve does not peak and then decline, it tends to keep climbing, so what we are doing is replacing an already successful car with an even better proposition. “Our expectations in terms of volume are not huge, but we don’t see any dip off the back of the Discovery model change. I think we are going to be pleasantly surprised, particularly in terms of some of the bigger markets. Italy is a fantastic market for us. We’re taking over 25% of the segment in Italy and on Jaguar as well. They take the cars on the basis of how they look. “I’ve got the right people. It is still a people-led business. We have recruited real specialists, it’s about bringing in expertise from outside. They have brought with them that momentum to look at things in a different way and challenge the way we do things.”

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FEATURE_Telem_IFW_Jan17_Layout 1 23/11/2016 11:25 Page 1

FEATURE Telematics & Tracking

Learning from truck success...? Telematics systems have been much more successful with truck fleets than among car fleets. What could car fleets learn? Steve Banner reports.

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Lower fuel consumption

wo Northern Ireland-based heavy truck operators could teach car fleets the world over a thing or two when it comes to making cost-effective use of telematics systems. Haulier number one is Dungannon, Country Tyrone, international freight specialist Ewing Brothers. Making frequent deliveries to destinations in France, Hungary and Spain, it is achieving savings of around €300/340 per truck, per month, following the installation of Fleet Manager from MiX Telematics some four years ago.

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This equates to an annual saving of 3,710 litres of fuel for each lorry in its 25-strong fleet. As a consequence, its overall fuel bill is down by a claimed 5%, significantly beating its initial 4.3% target. A key reason for the fall in diesel bills is an in-cab driving aid called RIBAS. Offered as an option with Fleet Manager, it monitors the driving style of whoever is behind the wheel and delivers alerts and warnings as appropriate. RIBAS disapproves of practices such as excessive engine idling and harsh acceleration and braking and makes its feelings known. As a consequence drivers are more inclined to switch the engine off whenever possible when stationary and to drive more smoothly, cutting fuel usage and putting themselves at less risk of having a collision. Fleet Manager helps the fleet operate more efficiently in other areas too, says Ewing Brothers managing director, Steven Ewing. “We use the live tracking function 95% of the time we’re in the office,” he says. “It’s a great time-saving tool that allows us to monitor the location of our vehicles and communicate arrival times to our clients. “Even when we’re not in the office we can view the system via the mobile phone app, giving us complete control.” Haulier number two is Newtownards, County Down-based milk collection specialist North Down Grain. Using Fleet Manager has enabled it to achieve savings of up to 12% on its yearly fuel expenditure, it reports. Average diesel consumption of its 29,000-litre milk tankers has improved from 48.7l/100km to 43.5l/100km and in some cases up to 40.4l/100km. “We’re now into our second contract with MiX and have become very satisfied users of the system,” says North Down Grain director, Philip Davidson. “We had some concerns in the early days that led us to question its value, but when I expressed them we were assigned a MiX Telematics fleet consultant who worked closely with us to help us achieve our goals.”

Achieving fuel targets That involved setting up fuel targets. “I now have a full set of reports that I run on a weekly basis,” Davidson says. “They give me access to information on fuel usage and driver and vehicle performance, providing me with the overview I need and allowing me to make strategic business decisions.”

One of the techniques used by North Down Grain to obtain fuel savings is to rotate its drivers on different routes with different vehicles over specific time periods. It enables the company to identify its best drivers, its most fuel-efficient vehicles and its toughest routes; all valuable information that helps bring down expenditure on diesel.

Minimising false claims Fleet Manager has also helped protect the firm against two false claims about the conduct of its drivers made by other road users. On both occasions North Down was able to use historic tracking data to prove that its trucks were not present at the times and places specified. Based in South Africa, MiX Telematics is an independent supplier of driver behaviour monitoring and tracking services. Truck manufacturers have been busy developing their own in-house packages; with Scania and MAN parent Volkswagen Truck & Bus launching RIO at the recent IAA Hanover Commercial Vehicle Show in Germany. A cloud-based operating system, it can link an entire distribution chain, and its open-platform architecture means it can embrace vehicles of all makes. Not to be outdone, DAF launched DAF Connect. It allows hauliers to view realtime data on what their drivers and trucks are up to. An online dashboard is used to display information on everything from idling time to fleet utilisation and its Live Fleet View facility can be employed as an aid to route planning. Car fleet managers would doubtless love to obtain similar, telematics-derived, information. Some do, but others find that their path to connectivity nirvana is littered with obstacles. In some cases they can include a downright refusal by fleet car drivers to accept remote monitoring by the boss. It is a refusal that may be backed by privacy legislation in some markets and may be difficult to overcome without a protracted battle if the drivers concerned happen to be trade union members. The ability telematics gives them to refute false claims of misconduct at the wheel is a powerful counterargument however – especially if the telematics package is combined with a dashboardmounted camera – as is their awareness that their employer has a duty of care towards them.

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FEATURE Telematics & Tracking

Legal obligations The European Union’s Lone Worker Directive obliges companies to put policies in place to help protect employees who regularly have to work on their own away from home base. That can include setting up arrangements that allow their vehicles to be tracked remotely. In this context it is worth noting that eCall will be mandatory for all new car Type Approvals in the European Union (EU) from 31 March 2018 onwards. If there is a major smash then it automatically rings 112 – Europe’s single emergency number – and alerts the fire, ambulance and police services to the stricken vehicle’s precise location. The EU emphasises that this does not mean the car is constantly tracked. The SIM card used to transmit the alert stays dormant until there is an impact. There is no denying however that SIM cards allow mobile smartphones – and their users – to be tracked when the phone is switched on. The implicit acceptance by users that this is the case may mean that telematics and the ability it gives businesses to monitor vehicles remotely will become more widely accepted by employees as the years go by. If this is the case then car manufacturers are determined to offer businesses the services they will require. In some cases they are forging links with independent telematics specialists in order to do so.

OEM and fleet telematics links Earlier this year PSA Group and Masternaut announced that they were joining forces to offer telematics packages to fleets. The move will see the Masternaut Connect platform made more easily accessible to Peugeot,

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Citroën and DS connected cars and light commercials in Europe. Two months ago Nissan announced that it was teaming up with Telogis to provide a European fleet telematics solution. NissanConnect Fleet can be deployed using hardware installed on the production line or fitted by a certified Nissan dealer and connects the vehicle to the Telogis Mobile Resource Management software platform. Determined not to be left behind, the major leasing companies are marketing telematics systems to their car and light commercial clients too. Arval for example has been rolling out Active Link, which is now available in France, Italy and Spain among other countries. It allows customers to access data on a vehicle and its driver’s on-the-road behaviour and take advantage of a variety of optional services including GPS tracking and mileage capture for audit purposes. Arval is also working with PSA to ensure that data from the latter’s vehicles can be delivered to its clients more easily under the Arval Active Access banner. “We will be paying close attention to any opportunity to extend this collaboration for the benefit of our customers,” says Arval chief digital officer, Angela Montacute. “It definitely represents the future for manufacturer/ leasing company relationships.” “The accuracy of the data generated by our on-board calculators will enable Arval to enhance its offer and deliver even more value to customers looking to reduce the total cost of ownership of the vehicles they operate,” says PSA director of connected services and new mobility, Brigitte Courtehoux.

Mileage capture and taxation Mileage capture is particularly important in markets that require private and business mileage to be reported separately. It is a service provided by the TomTom PRO 2020 terminal from TomTom Telematics, which among other things enables drivers to improve their performance through visual and audible feedback as they drive. Woven around all the foregoing is the trend towards vehicles being able to communicate with the surrounding infrastructure, with vulnerable road users and with each other. Continental Automotive is among those Tier One OE suppliers playing a key role in developing the necessary technology; technology which will be vital if the semi- and fullyautonomous vehicles now being developed are to function properly. Insurers are encouraging car fleets to invest in telematics and behavioural monitoring devices because of the positive impact they can have on driver behaviour and because of the volume of useful data they can generate. One potential drawback could be that yet another in-vehicle device will increase the risk of distracted driving. In the USA Ford is already redesigning its vehicles to accommodate the growing number of digital products that many Americans carry around with them; although it is to be hoped that they will not attempt to use them while at the wheel if they are hand-held. The latest Fusion has 59% more storage space compared with its predecessor so that drivers and passengers will have somewhere to put all their smartphones, tablets and e-readers; and the trailing cords that regularly accompany them. Like telematics systems, they all draw power; so expect a steady swing towards 48v in vehicles.


ADVTL_Alphabet_IFW_Jan17_Layout 1 22/11/2016 19:26 Page 1

Copyright: Alphabet International GmbH

Office on wheels: the autonomous car’s potential There is no doubt that mobility – with its increasing complexity – is in a state of change. New-fangled features and functionalities are gaining traction by the day. But what exactly does the future hold and how will it affect fleets? Business Mobility expert and Chief Commercial Officer at Alphabet International, Richard Schooling, shares his perspective on what is about to revolutionise the road and company fleets.

What role does autonomous driving play in the fleet industry today? Its revolutionary approach to mobility! In the past, it was implicit that an active driver assumed full control of a car. Now the tables are turning and the car is taking the driver’s seat. Used on a wide scale, autonomous driving has great potential to disrupt the mobility sector. But before this can happen, there are still some fundamental questions we need answers to, one obvious one being insurance. When driverless cars finally do accelerate into mainstream – it’s already technically possible – it will introduce new potential to the fleet industry. What are the key benefits you see for company fleets? Certainly enhanced productivity for business people on the go. Today, business time spent in the car is essentially lost. In a fully autonomous car, passengers could finish a presentation or write emails en route. Also, an autonomous car can maximise vehicle utilisation: it drops one person off for a meeting, then drives itself to collect another. Optimum fuel

efficiency is another huge plus, because autonomous cars rely on real-time software to plan routes and set the right speed. There is no doubt autonomous driving will disrupt the market. Why? Soon many things we have taken as given will come into question. Will companies require individual company car fleets in the future or simply provide shared fleets consisting of autonomous cars? How will governmental regulators react? Will companies be willing to pay higher upfront costs when the benefits are greater? We can’t predict all the consequences, but we need to see autonomous driving as an opportunity we must take. How important is the fleet industry in testing innovative mobility concepts? I’m proud to say it’s very important. We have a track record of being early adopters of new technology, for instance we embraced eMobility and corporate carsharing long before they were commonplace. I am confident that it will be no different for autonomous cars.

What other trends do you currently observe? Telematics is quickly gaining importance, especially since it influences all areas of mobility. Specifically, its omnipresence can be explained by the integral role it plays in popular mobility concepts such as carsharing programmes. Going back to the idea of complexity, we are also seeing a growing demand for mobility budget solutions. Instead of assigning one form of mobility to an employee, such as a company car, a mobility budget gives employees the freedom and flexibility to choose the most suitable means of transport on a case by case basis. In future, it could also include autonomous cars, of course.

“In a fully autonomous car, passengers could finish a presentation or write emails en route.”

Further information www.alphabet.com/autonomous-driving advertisement feature


IVIEW_GItalia_IFW_Jan17_Layout 1 23/11/2016 11:32 Page 1

INTERVIEW Gianluca Italia, FCA Group

Strategic approach FCA is approaching the European fleet market on a group-wide basis, not as individual brands, as John Kendall finds out. CA – Fiat Chrysler Automobiles is now moving on from the initial phase when the company was establishing itself, having included its established European brands with Jeep and the North American Chrysler brands and is now expanding its operations. At the recent Los Angeles Auto Show, Alfa Romeo launched the Giulia-based Stelvio SUV, which will also make its debut in Europe, probably at the Geneva Show next March. Reviving Alfa in the the US – Stelvio is the third launch since Alfa returned to the US - will help to give FCA a sportier profile, allied with more premium products than are available to the US operation through the Fiat brand. Before the LA Show, at the Paris Show the previous month, we caught up with Gianluca Italia, managing director of FCA Italy and EMEA fleet and business sales director. How is the company progressing in its home territory? “In general, FCA in Europe in 2016 is growing month after month,” he says, “The good news is that we are basically growing in every market, more or less. Of course there are some markets where we would want more performance, but in general, we are seeing very sustainable growth.” Outside its traditional strength in Italy, Italia says that the company has a good presence in France and the UK. “The home market (Italy) is mainly driven by Fiat, so it’s important to us as well.” We asked about Spain too; “The Spanish market is characterised by a large volume of direct sales, meaning short-term rental, but we do well in Spain as well.” Italia is satisfied with FCA’s current European performance in terms of registrations and also the quality of those sales. “In terms of profitability, this is in line with our expectations.”

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Tipo presents new opportunities Italia points to new product that is important for the group, “Tipo family is a huge, huge opportunity and responsibility for us, because we simply were not present in the segment. We have two successful cars in the I-Zero segment, the Jeep Renegade and Fiat 500X, which

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somehow can fish in the C-segment, but now with Tipo, we are in the core of that segment and we do it with three versions. We have the sedan, the hatch and the wagon and these of course will open important opportunities for us. “On the premium side of our product range, the Alfa Giulietta is already playing a key role, because when we speak about fleet, it is important to highlight the fact that we don’t talk about single brands. We approach companies as FCA Group. So we really cover all products from Panda, 500, up to commercial vehicles, then Jeep Grand Cherokee. We believe and we have plans to further grow in 2017.”

Italian experience The Alfa Romeo Giulia is one of the more recent launches for FCA, launched first in Italy last July. Although there are no full year figures for registrations yet, Italia draws on the experience of the Giulia in the Italian fleet sector so far, “In Italy, we classify companies depending on the number of cars they have in their fleet. The most important group is made up of 400 medium enterprises. In two months we managed to introduce the Giulia in the car policy of 300 companies and this is a huge number. “Of course, Italy is our own market. If we make the calculation, we were not as successful in the past in introducing new Fiat models or even Alfa Romeo. This has been a big positive surprise to us and it gives us the possibility of seeing the same kind of success for other countries.” Ride sharing and car sharing look as though they could offer big growth for the future, particularly in the fleet sector. FCA has decided not to enter the car sharing market directly, but to do so through partners. In both Italy and other countries, FCA supplies cars to car sharing partners. Would FCA follow the lead of other manufacturers and make deals with Uber and others involved in ride-sharing? “Yes absolutely,” says Italia, “As a supplier, there is no reason why we shouldn’t be available to them.” As Italia has already suggested, where fleet business is concerned, FCA approaches customers on a group-wide basis, not as individual brands. “Our proposition as FCA means it is not really common to offer such coverage in the automotive market. We think it is more strategic to go with all our brands,” he explains.


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Middle East launch Fleet business in Europe is mainly focused on the five largest markets: France, Germany, Italy, Spain and the UK. Different brands find other markets that are either strong or offer potential and for FCA, this includes Belgium, the Netherlands, Greece, as well as the Middle East and Africa. “We are about to launch a strong offensive in the Middle East,” say Italia, “We’re looking at the whole region, working with importers there. Jeep has huge potential, but also RAM (FCA’s US-based pickup truck and light CV business)”. RAM will be introduced to the Middle East at the end of 2016, along with Alfa Romeo. The pickups could be an attractive proposition for Middle Eastern buyers.

Fleet specialist dealers Across Europe, FCA has been rolling out a series of fleet specialist dealers. “This is an interesting project that we launched around eight months ago,” says Italia, “It is already well established in the UK. In Italy we now have 50 centres and in France we are growing as well. We are basically doing the same everywhere in Europe, because we believe we need high standards of professionalism in our network when it comes to business.” The UK referendum result which favours leaving the European Union could have far reaching implications for the automotive business between the UK and the rest of the EU, “So far there has been zero impact on our performance,” says Italia, “Also from the profitability point of view, again, so far, zero impact. I’m not so sure there would be such a dramatic impact. Let’s see what the future brings us.”

“Tipo family is a huge, huge opportunity and responsibility for us, because we simply were not present in the segment. Now we are in the core of that segment.”

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SHOW_IFW_LA Auto_Jan17 23/11/2016 12:08 Page 1

LA Auto Show 2016 Highlights Some of the future fleet highlights from the biennial LA Auto Show. By John Kendall.

Alfa Romeo Stelvio

Audi Q5

The Stelvio SUV made its global debut at the LA Show. Based on the recently launched Giulia compact executive saloon and will be available with a range of power options. On display in LA was the Quadrifoglio with 505hp, 2.9-litre V6 bi-turbo petrol engine. Other US models will feature a 280hp 2.0-litre turbo petrol engine. Since Stelvio uses Giulia engine options, expect 150hp and 180hp 2.2-litre diesel options for Europe. All US models will feature Alfa’s Q4 all-wheel-drive system. Stelvio will be built in Italy.

Audi unveiled the latest Q5 at the LA Show before it goes on sale in spring 2017. Standard equipment for the US will include a 252hp 2.0-litre TFSI turbocharged petrol engine. European buyers will also get a 190hp 2.0-litre TDI diesel with a 286hp V6 TDI following. Quattro all-wheel-drive will be standard in all markets. The new model offers more interior space, with improved headroom and rear knee room, plus 10 litres more luggage space. A revised 5-link rear suspension system will be fitted, with adaptive air suspension as an option. Audi claims the model is up to 90kg lighter than the current model.

Jaguar I-Pace

Mazda CX-5

The I-PACE electric SUV, unveiled at the LA Show, is more than just a concept – a production version will be on the road in 2018, after being launched in 2017. The car is powered by two 200hp electric motors, one driving each axle, generating a total of 700Nm of torque. The 90kWh capacity lithium-ion batteries are fitted under the floor. Jaguar describes the car as an, “All-electric performance SUV.” Features include a panoramic glass sunroof and two touch screens for the driver.

Another SUV undergoing renewal is the Mazda CX-5. In addition to the petrol engine range of 4-cylinder Skyactiv G, 2.0 and 2.5-litre petrol engines, Mazda announced that the company will offer its Skyactiv 2.2-litre clean diesel engine in the model in the US from mid 2017. It will be the first time that Mazda has sold a diesel-powered model in North America. Other features include a raised gear selector position, smaller door mirrors to improve diagonal visibility, a 2-step reclining mechanism for the rear seats, which have been re-shaped and a slightly larger boot at 505 litres.

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Porsche Panamera Executive The Porsche Panamera Executive made its debut in LA, featuring a 150mm longer wheelbase than the Panamera. The car will be offered in all-wheel-drive with Porsche’s new 330hp V6 turbo petrol engine, E-hybrid model with combined 462hp, in S form with 440hp and Turbo with 550hp. Standard equipment includes a panoramic roof, heated seats with electric adjustment front and rear, electronically controlled damping and rear sunblind. 4S Executive and Turbo Executive models gain rear axle steering and soft-close doors. The new models will be available from January.

MINI Countryman The new Countryman was unveiled at the LA Show and is the first Mini model to be offered with a plug-in hybrid option. Power comes from a range of 134hp 3-cylinder and 189hp four-cylinder turbo petrol engines. The plug-in hybrid Cooper SE ALL4 combines the 134hp engine with an 87hp electric motor driving the rear wheels. This model offers an electric range of 24 miles and a re-charging time of 3hrs 15mins. 2.0-litre diesel models are also available for Europe with 150hp and 190hp outputs. Models will go on sale next March followed by the plug-in hybrid in June. Standard equipment for the US will include a panoramic sunroof, keyless entry, rear view camera, parking sensors, Bluetooth connectivity, automatic headlights and rain-sensing wipers.

Subaru VIZIV-7

Volkswagen Atlas

Seen for the first time at the LA Show was the Subaru VIZIV-7 concept, described as a concept series embodying the future vision of car development for the “enjoyment and peace of mind” that it wants to provide to customers.” The concept shows the company’s vision for a future SUV with three rows of seats for seven occupants. VIZIV-7 is a pointer to a 7-seat SUV to be introduced to the US market in early 2018.

Making its show debut at the LA Show, the Atlas is the largest Volkswagen model ever assembled in the US. The 7-seat SUV is designed to accommodate two adults in the 3rd row seats. Built in Chattanooga and based on the VW MQB architecture, the 238hp 4-cylinder turbocharged 2.0 TSI powered model comes with front-wheel-drive as standard, while the 280hp 3.6-litre VR6 powered models come with optional all-wheel-drive. LED headlamps and daytime running lights are standard. Third row seats can be accessed even if child seats are in place in the second row seats.

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FLEET FOCUS_India_IFW_Jan17_Layout 1 23/11/2016 17:37 Page 1

FLEET FOCUS India

Indian fleet sector expected to grow New taxes may help the vehicle fleet and leasing sector in India to grow, as John Kendall finds out.

ndia is a force to be reckoned with in the motor industry. In the country’s 2015-16 financial year, which ran from 1 April 2015 to 31 March 2016, India produced a total of 23,960,940 motor vehicles, according to the Society of Indian Automobile Manufacturers (SIAM). This total includes passenger vehicles, commercial vehicles, 3-wheelers, 2-wheelers and quadricycles. That sum represents an increase in production of 2.58% compared with the previous financial year (FY). Total domestic sales have risen steadily since 2010, reaching 20,469,385 in FY 2015-16. But the vast majority of that total is two-wheelers, reaching a total of 16,455,911 in FY 2015-16. Breaking the figures down further, passenger cars accounted for 2,789,678 sales and commercial vehicles 685,704. The remaining 538,092 were accounted for by

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sales of 3-wheelers. The passenger car total represents a 7.2% increase in sales compared with FY 2014-15. “SUNRISE” MARKET Commenting on the market, LeasePlan told IFW, “The Indian automotive market has been seen as a sunrise sector by economists. From a time in the 1960s to 1980s when one could choose from just two models, the Hindustan Ambassador or Fiat Premier Padmini, we have rapidly moved to an era where buyers are spoilt for choice - with both international and Indian brands. Today you can spot hatchbacks, sedans, super premium cars and SUVs on Indian roads. “Ownership driven consumer mindsets have also been evolving over the last few years with cars being viewed increasingly as commodities.”


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LeasePlan has also helped to break the SIAM statistics down further. The company reckons that around 92% of passenger car sales are retail, leaving around 223,174 sales as corporate purchases. Commercial vehicle sales can also be broken down further. Of the 685,704 CV sales total in FY 2015-16, LeasePlan suggests that between 400,000 and 420,000 were light CVs. E-COMMERCE DRIVING LIGHT CV MARKET LeasePlan believes that part of the popularity of light CVs is due to e-commerce. “With the e-commerce business expanding in India, the light CV sector is gaining importance. The logistics and delivery sectors are becoming more organised and we see new professional players in the market with a need for good LCV options. Ambulances, cash carry and retail chains are also driving the LCV growth.” LeasePlan has made a particular study of the light CV market and has a good idea which manufacturers are leading the market. “Tata Motors and Mahindra & Mahindra are the top two players in the CV segment (<3.5 tonne gross vehicle weight (GVW)) with Tata Motors leading the market in the sub 2t GVW truck category with Tata ACE and the light Passenger segment. Mahindra & Mahindra dominates the 23.5t GVW category in the light CV Cargo segment due to its stronghold in the pickup segment, with Mahindra Pickup, and Maxxitruck. “Ashok Leyland is one of the late entrants but has been successful with the DOST range cornering 14% market share in the 2-3.5t GVW category.” These comments were extracted from an LCV market study conducted for LeasePlan India by business consulting and market research company BDB India. Ashok Leyland is well established in the heavy truck sector. The company came into being in 1954 as a joint venture between Indian Ashok Motors and UK commercial vehicle builder Leyland Motors. Mahindra and Mahindra became well known in India in the late 1940s when the company started building the Willys Jeep under licence. This triggered a move into building light CVs. The company acquired a controlling stake in Korean Ssangyong five years ago.

uniform tax rate on leasing across the country, seamless tax credit for car purchases as well as availment of all services which should eventually help in making lease pricing better.” GST will be applied in bands according to the goods or services concerned. Rates of 5%, 12% 18% and 28% have been set and car sales will attract GST at the top rate of 28%, as will fast moving consumer goods (FMCG) and consumer durables. Not everyone is happy about the proposals. Autocar India reports that SIAM recently recommended a standard tax rate for small cars and multi-utility vehicles, with an additional 8% for other cars. Luxury cars are also likely to attract a supplemental tax, but as we write, the Indian government has not yet defined a luxury car for tax purposes. HIGH-VALUE BANK NOTES The Indian Government has also begun withdrawing 500 rupee and 1,000 rupee notes recently in an attempt to reduce tax evasion and corruption. The motor industry fears that the move may slow down car sales by as much as 25% in the medium term. According to SIAM around 75% to 80% of car sales are financed. Some 35% of car sales are in rural areas and this is where many buyers will rely on cash to buy cars. If the large denomination notes are not available, many expect that car purchases will be deferred. India is a large country, slightly more than 33% the size of the USA, according to the CIA. The terrain is varied from motorways around the major cities to congested city streets and narrow country roads. With that comes varying demands for the kinds of vehicle that are used by fleets, as LeasePlan explains: “Different fleet applications demand different kinds of vehicles. We divide the Indian company car market into two broad yet distinct segments as shown below. • The salary sacrifice segment usually has a good makemodel mix and is a reflection of the overall industry uptake of models. • The perquisite segment tends to have a slightly higher share of luxury cars and SUVs by virtue of entitlement. • Tool for Trade vehicles (those generally used by field staff) have more sturdy vehicles. The Indian-manufactured Mahindra Bolero is one of the most preferred vehicles, which is suitable for rough terrain.

GOODS AND SERVICES TAX India is in the throws of introducing a new tax regime, which will have far reaching effects including on the automotive sector. The Goods and Services Tax (GST) will function in a similar way to the value added taxes that are applied in many European states, by adding taxes to raw materials, finished goods and to retailers at a uniform rate which can be offset against the purchase price of the supplied goods or raw materials. GST will replace the array of indirect taxes that were levied by the central government as well as individual states. LeasePlan reckons that, “The introduction of GST will move India into a uniform tax structure that will have a positive impact on the fleet management Tool for trade industry as well. “Key benefits expected from GST include a

Company car policy type

Business Applications

Salary Sacrifice Employee self-use (facilitated by employer)

Business vehicles

Perquisite

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FLEET FOCUS_India_IFW_Jan17_Layout 1 23/11/2016 16:39 Page 3

FLEET FOCUS India

Indian fleet sector expected to grow... →

• Business Vehicles are used for specialised applications such as car rentals, cash vans, ambulances, logistics and delivery. Depending on the usage, companies opt for vehicles that suit the need: • Car rentals typically use saloons/sedans • Cash Vans (Pick ups and custom made vehicles referred to as SCVs/LCVs) • Ambulances (OE made ambulances with necessary fabrications manufactured by Maruti, Mahindra, Force & Tata) While GST will have wide implications for car sales and fleet companies, other taxes are also levied on company cars, as LeasePlan explains, “Road tax and toll tax are levied on a different basis from vehicle usage, while taxes applied on lease rentals such as VAT and service tax remain the same irrespective of the usage of the vehicle.” EV TAKEUP India’s rapidly growing cities present an opportunity for EV take-up if there is a reliable electricity supply and charging infrastructure. According to LeasePlan there is potential for growth, “For many years there has been only one vehicle option in India which has been in the form of a small passenger EV – the Mahindra e2O. While the awareness about EVs exists and is increasing, there are still very limited options for vehicle users.”

“With India becoming a friendly ground for green cars, we expect several manufacturers to introduce EVs in India in the coming months and years. In fact, in the last month, we saw Mahindra launch its Mahindra e-Supro, India’s first electric Passenger and Cargo Van.” LeasePlan

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VEHICLE FINANCE Where vehicle finance is concerned, LeasePlan quotes from the February 2016 Frost and Sullivan report, Strategic Analysis of the Vehicle Fleet Leasing Market in India. “Outright purchase and bank loans dominate the market. Operating lease is expected to grow at a 25% CAGR from 2015-2020 and is expected to drive the vehicle leasing market growth. “LeasePlan, ALD Automotive and Arval contribute 69% of the total market for Operating Lease. Auto Infrastructure Services Ltd and Magma Auto Lease contribute to more than 92% of the total financial lease market. Vehicle leasing companies currently provide only operating lease, finance lease and fleet management services. Few firms provide LCV leasing, corporate car sharing and short term leasing, but it is not prevalent across the market.” LeasePlan uses further data from the report to describe the market for finance and operational leasing, “As of 2015, operating lease is a Rs. 1,120 Crore (€154,800,000) market, with an active fleet of 42,100 passenger vehicles in the organised market. While financial lease is a Rs. 370 Crore market (€51,100,000), with an active fleet of 10,200+ passenger vehicles in the organised market.”


IAM_India_IFW_Jan17 23/11/2016 16:46 Page 1

IAM REPORT India

Driving in India Advice from IAM RoadSmart. If you travel to India on business, the chances are that you will be assigned a driver for the time you are there, who will have his own vehicle. In addition to public transport, taxis and other transport services are plentiful and inexpensive. It would be very unusual to need to drive solo in India while on business; in fact many car hire operators don’t even give you the option of hiring a vehicle without a driver. But if you need to drive by yourself, we have some advice to help you get through the experience unscathed. Although you drive on the left in India, as in the UK, sometimes it might feel that in India this is more for guidance than a matter of law! And while lanes are marked, it is commonplace for them to be ignored and drivers will cut across you with no warning. And not just drivers … pedestrians and animals can and will cross in front of you without looking, or acknowledging you even being there.

I

Rental agreements It’s often said that if you are not accelerating, your foot should be hovering over the brake pedal, as you are likely to need it regularly. If you are hiring a car, you should be aware your rental agreement could contain a number of extra charges for items like depreciation on metal and plastic. So you should read your agreement closely, and query anything you don’t under-

stand. Third party claims though are very rare, and they would need a police report to accompany them. Avoid driving late at night as not only are the roads poorly made, they are also badly lit. Motorcycles, cars and large trucks might not have working lights. Again manoeuvres without notice are common. Add to that, people driving under the influence of alcohol are not uncommon – so do have your wits about you. As a road user in India, you will be sharing the tarmac (or perhaps the gravel) with many other things. You will encounter carts, cycles, rickshaws, three-wheelers, trucks, buses, and of course cows. There are no ‘slow’ lanes as such, so be prepared to brake and stop frequently. Other things that can slow you down on your journey include wedding processions or religious ceremonies, which are many and frequent. Many drivers choose to take unplanned ‘detours’, which includes driving along the sides of unpaved roads. If you are heading out of the cities and into smaller towns, it is likely the roads will be very narrow and cannot support two lanes of traffic side by side. If you encounter oncoming traffic, move to the left so you are taking up as little of the road as you can. Hopefully the driver approaching you will do the same. Even on wider roads as you would find in Chennai and other places, be alert for smaller cars driving on your side of the road. This is just a small picture of what you can expect as a driver in India.

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PROFILE_Renault_IFW_Jan17_Layout 1 23/11/2016 11:04 Page 1

PROFILE Renault

Setting the scene Groupe Renault has invested heavily in its refreshed range, and now has the youngest vehicle portfolio in Europe. With further major launches (including new Scenic), planned from early 2017, the group plans to increase its global appeal…

Available now... All-new Renault Scenic looks set to be a hit with global fleets.

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PROFILE_Renault_IFW_Jan17_Layout 1 23/11/2016 11:04 Page 2

Manufacturer Groupe Renault Total sales 2015 2.8m Headquarters Boulogne-Billancourt, France Global market share 3.9% No. of models 13

view from the top

Expansion of global range roupe Renault (comprising Renault, Dacia, Renault Samsung Motors and the commercial vehicle portfolio) recorded a third consecutive year of sales increases in 2015, despite steep declines in the Brazilian and Russian markets due to economic instability in the regions. Sales downturns in these markets were offset by a positive European trend, alongside gains in global territories, particularly by the Dacia brand. Groupe Renault’s total PC+LCV worldwide registrations rose by 3.3% to 2.8m vehicles, in a market that grew by 1.6%. Registrations increased 10.2% to 1,613,499 vehicles in Europe. The Group increased sales in all countries in the region, with strong performances in Spain (+22.3%), the UK (+17.7%) and Italy (+18%), with a record market share of 9.1%. Clio remained Renault’s best selling vehicle in Europe. New Kadjar SUV recorded 49,016 European registrations during its first year on sale, and new Espace MPV contributed 20,930 registrations, three times more than its previous version during the same period in 2014. Renault also recorded gains for its electric vehicle range, with sales increasing 49% over 2014. ZOE was the best-selling electric vehicle in the European market with 18,453 registrations, and accounted for 60% of the EV market in France. In Eurasia, the Group’s market share increased by 11.9%, boosted by a particular upswing in Turkish sales (+21.7%), where a new sales record was set. This growth offset the economic crisis in Russia, where the market slumped by more than -35% and Groupe Renault’s registrations fell by -38.1%. By contrast, the Group now has more than one-third of the North African market. In Algeria, the company saw a record market share (35.6%) benefiting from the local manufacture of Symbol (based on second-generation Clio) in Oran. In Egypt, the secondlargest market in Africa, sales rocketed by 73.8% following an expansion of the range. Renault also made significant gains in India where it remains the leading European automotive brand, with sales up by 20%. An entry-level crossover called Kwid was launched specially for the market in September 2015, and has contributed significantly to the sales uplift. Performance in the Americas was generally strong, with share in Brazil, the Group's second-largest market, increasing by 7.3% in a market that contracted by 25.5%. H1 2016 data shows a continued positive sales trend for the company, with Groupe Renault recording 1.57m registrations, up 13.4% over 2015. The Renault brand alone recorded growth of 15.6% thanks to the renewed range with Kadjar, Espace, Talisman, new Megane and Megane Sport Tourer. In the Asia-Pacific region, 2016 sales were up 12.8%, mainly due to a strong performance of Renault Samsung Motors in South Korea, which recorded growth of 25.9%. H1 also marked the start of local production of Kadjar in China, which should boost sales.

G

Groupe Renault Sales, by region Country France Brazil Germany Turkey Spain UK Total

2014 577,601 237,187 173,479 133,212 127,666 109,014 2,712,527

2015 607,173 181,504 177,787 162,175 156,108 128,269 2,801,592

% change +5.0% -26.6% +2.5% +19.6% +20.0% +16.2% +3.3%

Olivier Gaudefroy, VP of corporate sales and used cars at Groupe Renault, on the success of the EV range and importance of connectivity. How important are the crossover models to fleet sales in Europe? Today we have a very complete range, including our crossovers which have had a lot of success. Captur and Kadjar now represent 15% of the total fleet sales volume. The arrival of crossovers within the range is thus a very positive asset for our brand, and enables us to cover even more widely the different customers’ needs. How strong is fleet take-up of the electric range? In our range, we have petrol, diesel, electric and hybrid assist solutions currently. For the electric range, we have Kangoo Z.E. and ZOE for our fleet customers. The EV sales towards them is expanding, especially now that we have launched ZOE with its new Z.E. 40 battery. ZOE boasts maximum NEDC driving range of 400km, which is a record for a mass produced all-electric vehicle available since the Paris Motor Show. In real life, the autonomy can go up to 300km, which is plenty for many fleets and makes ZOE a truly realistic green alternative. How important is in-car connectivity as a R&D area for Renault? By 2020, combined with the development of the autonomous car, Renault will launch a suite of new connectivity applications that will make it easier for people to stay connected to work, leisure activities and social networks. Driving time could then gradually become extra free time to benefit from on-board connected applications, when conditions enable it. Already available on a large range of Renault models, R-LINK has been recognised as one of the best on-board infotainment system on the market. R-LINK connects the dots between the digital and automotive worlds.

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PROFILE_Renault_IFW_Jan17_Layout 1 23/11/2016 11:05 Page 3

PROFILE Renault

Where

6

are they made?

2 3 4

1 5

Manufacturing plant locations France Batilly, France – Master Renault Alpine, Dieppe – Clio R.S Douai – Scenic, Grand Scenic, Megane Aubergenville – Clio, ZOE Maubeuge – Kangoo, Kangoo Z.E Sandouville – Laguna, Espace, Trafic Europe 7 Nova Mesto, Slovenia – Twingo, Wind, Clio 8 Palencia, Spain – Megane 9 Valladolid, Spain – Captur, Twizy Americas 10 Argentina – Clio, Symbol, Fluence, Kangoo 11 Parana, Brazil – Megane, Logan, Master, Duster, Sandero 12 Colombia – Logan, Clio, Sandero, Duster Africa - Middle East 13 Tangier, Morocco – Lodgy, Dokker 14 Casablanca – Kangoo, Logan, Sandero 15 Oran, Algeria – Symbol 16 Chennai, Tamil Nadu, India – Koleos, Fluence Eurasia 17 Moscow, Russia – Logan, Sandero, Duster, Fluence, Megane Argeș, Romania – Logan, Sandero, Duster 18 Bursa, Marmara Region, Turkey – Clio, 19 Fluence, Megane, Symbol Asia-Pacific 20 Busan, South Korea– Scala, Sunny, Almera, Fluence, Latitude, Talisman, Koleos 21 Wuhan, Hubei province, China – Kadjar 1 2 3 4 5 6

FIN fleet in numbers

10% Claimed reduction in fuel consumption using new Scenic’s hybrid system.

400km Range of the new Renault ZOE with ZE40 41kWh battery.

150,000 Orders of Kwid SUV in India to H1 2016.

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17

7 9

18 19

8

20

15 14

21 16

12

11 10

Scenic & SUVs take centre stage reviewed as the R-Space concept in 2011, the fourth-generation Scenic MPV and seven-seat Grand Scenic variant will be available across Europe from 1 December. Longer in wheelbase with shorter overhangs and optional two-tone paint, it gets Renault's R-LINK 2 infotainment system and unusually large 20-inch diameter wheels across the range. Its bespoke tall and narrow tyres are said to be no more expensive to replace than on 17-inch wheels, and with no economy sacrifice. Diesels comprise the Energy dCi 95, 110, 130 and 160, with a Hybrid Assist version of the Energy dCi 110 to be made available before the end of 2016. Petrols comprise the Energy TCe 115 and 130. Commenting on the fleet potential of the new model, Gaudefroy said: “The most important points we put forward to our fleet customers concerning Scenic are the design, the hybrid assist system, the different driving aids and features such as its active emergency braking system with pedestrian detection.” Also joining the range is new Koleos SUV, which was unveiled at the Beijing Motor Show. Billed as the brand’s flagship SUV and sitting above the Captur and Kadjar, the D-segment SUV is based on the same platform as the Nissan X-Trail and will bring both front and four-wheel drive models. Full R-Link connectivity will also be available. Koleos will be available in more than 80 countries across all the continents. Sales began in the third quarter of 2016 in Australia, Turkey, the Gulf states and some Latin American countries, followed by China at the end of 2016, then Russia and Europe at the beginning of 2017. The company is focused on expanding its share in global markets, and is set to launch three SUVs to the South American market in 2017 – Captur, Kadjar and Kwid. A one-tonne pick-up called Alaskan was also developed for the Latin American market in late 2016, with the potential to expand to other territories. Speaking about Groupe Renault’s international plans for 2017, Gaudefroy said: “Renault is extremely well organised in Europe in terms of fleet, and we now need to focus on India, China and Brazil, which are completely different markets. We will work together with the leasing companies to adapt our offer to what local fleets require. Further enhancing our internal remarketing performance is also at the top of my list of priorities.”

P


PROFILE_Renault_IFW_Jan17_Layout 1 23/11/2016 11:06 Page 4

RENAULT fleet model range

Twizy

Twingo

Clio/Lutecia

Variants: Quadricycle Markets: Europe, North Amercia, Asia, Africa Fuel: N/A (EV) CO2: 0g/km (tailpipe)

Variants: 5dr hatchback Markets: Europe, Asia Fuel: 4.2-4.5l/100km CO2: 95-105g/km

Variants: 5dr hatchback/wagon Markets: Europe, Asia, Africa, North America, Oceania Fuel: 3.2-5.9l/100km CO2: 82-135g/km

ZOE

Kwid

Captur

Variants: 5dr hatchback Markets: Europe, Africa Fuel: N/A (EV) CO2: 0g/km (tailpipe)

Variants: : Crossover Markets: Asia, Africa Fuel: TBC CO2: TBC

Variants: Crossover Markets: Europe, Asia, Africa, Oceania Fuel: 3.6-5.5l/100km CO2: 95-127g/km

Kaptur

Megane

Variants: Crossover Markets: Europe, Asia Fuel: 7.4-8.9l/100km CO2: 171-206g/km

Variants: : 5dr hatchback, wagon, sedan Markets: Europe, Africa, Oceania Fuel: 3.3-6.0l/100km CO2: 86-134g/km

Scenic / Grand Scenic

Kadjar

Koleos

Variants: MPV Markets: Europe Fuel: 3.9-5.8l/100km CO2: 100-139g/km

Variants: Crossover Markets: Europe, Asia, Africa Fuel: 3.8-7.3l/100km CO2: 99-170g/km

Variants: SUV Markets: Global Fuel: 5.0-8.3l/100km (TBC) CO2: 130-192g/km (TBC)

Talisman

Espace

Variants: 4dr sedan, wagon Markets: Europe, Asia Fuel: 3.6-6.0l/100km CO2: 95-135g/km

Variants: MPV Markets: Europe Fuel: 4.4-6.2l/100km CO2: 116-140g/km

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ROAD_IFW_Toyota C-HR_IFW_Jan17 23/11/2016 12:24 Page 1

Toyota C-HR Hybrid technology makes Toyota’s sub-RAV4 crossover an attractive fleet car, says Dan Gilkes. SECTOR Crossover PRICE €24,350 - €32,468 FUEL 3.8 - 5.9 l/100km CO2 86 - 135g/km

ew manufacturers can ignore the rapidly expanding C-SUV crossover segment, with sales growing every year. Unlike many competitors though, Toyota is among the first to join the sector with a petrol hybrid, boasting impressive fuel economy and emissions. Toyota’s C-HR, which stands for ‘coupe high rider’, is certainly a distinctive car, with Lexus-like contours in a shape that combines a coupe roofline with chunky running gear. It’s the first Toyota outside Japan to be built on the Toyota New Global Architecture (TNGA) platform, boasting a 65% stiffer chassis with many components mounted lower in the frame, for improved road holding and a lower centre of gravity. The car has MacPherson strut front suspension with double wishbones at the rear, both tuned for European roads and on Spain’s smooth asphalt the C-HR certainly delivers on the promise of a refined ride. The car handles more like a hatchback than an SUV too, with a lower seat height than some competitors. There are two drivelines on offer, a 1.2-litre turbocharged C-HR uses a new hybrid drive system. Although marketed petrol or the hybrid, which uses a 1.8-litre petrol engine and as a CVT (continuously variable transmission), it is in fact a a Nickel Metal Hydride battery pack that nestles below the transaxle housing a single planetary gear set with two elecrear seat. The 1.2T develops 114hp and 145Nm tric motor-generators. This allows the C-HR to of torque, while the hybrid, which Toyota move off in electric drive with initial acceleraFLEET FACT expects to grab up to 75% of sales, creates a tion boosted by torque from the electric motors combined 120hp with 142Nm of torque. when required. The hybrid offers a claimed combined fuel Around town that results in smooth, quiet The C-HR hybrid figure of up to 3.80l/100km, with CO2 emisprogress, with the car slipping seamlessly offers up to sions of just 86g/km (both with 17” wheels). between electric and petrol/electric drive. 3.8l/100km & Opt for petrol power and those figures drop to Indeed only a graphic on the dash signifies 86g/km CO2.. 5.9l/100km and 136g/km. While the petrol is which power system is in use. Move away from on a par with similarly fuelled versions of rival urban streets however and the familiar CVT crossovers like Nissan’s Juke and Vauxhall’s recently drone is still present, despite the geared driveline. updated Mokka X in CO2 emissions terms, the hybrid more When cruising though it’s a different story, with the car than cancels out the benefits of a diesel engine. happy to keep pace with traffic. Once up to speed, the battery will be charging and the engine barely consuming any fuel. There are three trim levels on offer, all of which boast plenty of equipment. The entry Icon model has dual-zone air-con, 17” alloys and Toyota’s Touch 2 multimedia system. The mid-range Excel trim adds part leather upholstery, heated front seats, keyless entry, 18” alloys and a host of electronic driver aids. The range-topping Dynamic trim gets LED headlights, privacy glass and metallic paint with a contrasting black roof. Toyota is looking for residual values of around 45%, which should promote some highly competitive lease and purchasing costs. A 5-year/100,000 mile warranty is also part of the package. With that in mind the company expects around almost half of sales to be to fleet buyers. Build at the company’s plant in Turkey, Toyota is hoping to sell up to 100,000 C-HRs a year in Europe, making it an important model in the line-up. Of that number it expects up to 75% to be the hybrid model, giving the C-HR a unique selling point that, for now at least, its competitors simply cannot match.

F

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ROAD_IFW_Toyota C-HR_IFW_Jan17 23/11/2016 12:25 Page 2

what we think The 1.2T petrol engine makes a strong case for itself out of town. But for urban drivers and those looking for a crossover with low emissions, this stylish hybrid ďŹ ts the bill.

highlights SUV styling with car-like agility Petrol and hybrid line-up, with no diesel version Five-year, 100,000-mile warranty

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ROAD_IFW_Mazda3-NV300_Jan17_Layout 1 23/11/2016 16:05 Page 1

Mazda3 A good car gets even better, reckons John Kendall. SECTOR C-segment hatchback, fastback PRICE From €16,450 approx FUEL 3.8-5.6 l/100km CO2 99-129g/km

modifications. For the diesels this means the introduction of lthough there’s undoubtedly a migration towards a system Mazda calls Transient Control. This is said to fashionable crossovers, the lower-medium reduce turbo lag and boosts torque so that power delivery is segment remains vital to any carmaker operating more like a petrol engine. Diesels also benefit from Mazda’s in Europe. And, for Mazda, a competitive and sufficiently Natural Sound Smoother, which is said to reduce engine different offering has helped both its retail and fleet sales knock noise on starting and during low speed acceleration. in this area. All models benefit from additional noise suppression Headlining the changes are some design tweaks – the new measures around the cabin, including optimised door seals. nose and frontal treatment bring the Mazda3 into line with Suspension revisions are designed to improve ride comfort other Mazda models, then there are new technology addiand reduce vibrations. tions and a revised interior. Foremost among the technology So does it work? In short, yes it does. The Mazda3 was upgrades is Skyactiv Vehicle Dynamics, introducing torque already one of our favourite C-segment vectoring – G-vectoring in Mazda terms. models, with high quality finish, good A revised grille with redesigned fog ride and handling and good engines, lamp bezels distinguishes the 2017 enhanced by the arrival of the 1.5-litre model from previous 3s. Door mirrors diesel a year or so ago. Now diesel now incorporate a wraparound indicator refinement is improved and the 1.5-litre repeater lamp and hatchback models get engine is yet more impressive, thanks to a revised rear bumper. There are new its lively performance, which makes you exterior colours too. think that it must be a larger and more Inside, there are a range of changes powerful engine. It is quite capable of including an electrical parking brake providing entertaining performance on which frees up more space on the centre fast A-roads. console. There’s a new leather trimmed The interior revisions are for the better steering wheel too, which when leather too. There’s an improved instrument trim is specified is also heated. display and a better quality impression, The engine range is unchanged from These are tidy improvenot that the previous model provided before which means there’s a choice of ments to Mazda’s bestanything but a high quality interior. 105hp 1.5-litre (99g/km CO2), or 150hp Mazda’s attention to detail with 2.0-litre diesel (107g/km CO2 manual, seller and help to make frequent revisions makes it seem as 127g/km CO2 automatic), as well as a good car better still. A though it really is responsive to feedback 120hp (119g/km CO2 manual, 129g/km classy C-segment model, on its model range. The company seems CO2 automatic) and 165hp 2.0-litre the Mazda3 should be determined to keep pushing quality and (135g/km CO2) petrol engines. Although on your shortlist. driveability forwards and that can only the engines look similar to the current be a good thing. range, Mazda has introduced a range of

A

what we think

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ROAD_IFW_Mazda3-NV300_Jan17_Layout 1 23/11/2016 16:05 Page 2

Nissan NV300 Nissan’s NV300 van goes on sale in November and John Kendall looks behind the familiar face. SECTOR Panel van PRICE TBA FUEL 5.6-6.5l/100km CO2 145 -170g/km

nnounced in February and unveiled at the Hanover 95hp, 120hp, 125hp and 145hp, the 125hp and 145hp CV Show in September, the Nissan NV300 did not engines featuring twin turbocharging. come as much of a surprise. Like its Primastar predService intervals of two years/40,000km and a fiveecessor, it is based on the Renault Trafic, built in a joint year/160,000km warranty look like good news for operaventure with GM. NV300 is in fact the fourth variant of the tors, keeping the NV300 on the road for as much time as van to be launched, following the Trafic, Opel/Vauxhall possible while the warranty will be particularly useful for Vivaro and more recently the Fiat Talento. Like the Renault low mileage users. and Fiat variants, it will be built at the Renault plant at Like the larger NV400, Nissan has managed to distinguish Sandouville in France. the model from its joint venture cousins with a bold front There is a familiar model line-up, with the range running grille design. At the launch, Nissan provided 125hp and to short and long (L1 and L2) wheelbase models, both avail145hp variants to drive in both van and combi variants. Not able with standard and high roof (H1 and surprisingly, they were similar to the H2). Then there are two six-seater crew other variants of the van that we have vans based on L1H1 and L2H1 variants driven before, providing a well thought and a platform cab, based on the L2 platout cab with plentiful storage space, form. In addition there are two passenincluding an optional space under the ger-carrying models, the NV300 combi passenger seat. based on L1H1 and L2H1 variants giving The driving position benefits from a seating for up to nine. reach and rake adjustable steering wheel Vans can all carry up to three standard and more seat adjustment than earlier Europallets, including L1 models and versions, so it is a comfortable place to Nissan reckons that 10 2.5m long plasterspend a working day. board sheets will fit. Like its tin cousins, The twin-turbo engines deliver plenty of an optional hatch in the standard full steel pulling power. Our L1H1 125hp van came bulkhead will accommodate long objects with a light load, which did little to dent the up to 3.75m long (L1) or 4.15m long in L2 performance. Refinement is notable too, The NV300 is a good models, while a second hatch under the with little engine noise penetrating the addition to the Nissan passenger seat gives 80cm more available cabin and gearing designed to keep engine LCV range, plugging the length. Load volume spans 5.2m3 to 8.6m3. revs down at motorway speeds. With gross weight options of 2,700kg and Nissan does not intend to rival the gap between the NV200 2,900kg, payload for the range covers sales aspirations of either Renault or and larger NV400, left by 1,073kg to 1,310kg, less for the crew vans. Vauxhall, with little more than a thouthe demise of the PrimasPower comes from the Renault-Nissan sand sales in a full year and will use its tar. Worth considering. Alliance 1.6-litre common-rail injection business centre network to handle diesel engine with power outputs of NV300 sales.

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what we think

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ROAD_IFW_McLaren_570GT_Jan17 23/11/2016 16:56 Page 1

McLaren 570GT You couldn’t ask Santa for much more than this, reckons John Kendall. SECTOR High performance PRICE From €180,960 approx FUEL 10.7 l/100km CO2 249g/km

his is a car that is unlikely to appear on many fleet options lists, but since it’s Christmas, we thought you might like to dream about what Santa could bring you, if you have been particularly good this year. The McLaren 570GT is the third model in McLaren’s Sports Series alongside the 570S and 540C coupes. It shares the powertrain of the 570S with power coming from a midmounted 570hp, 3.8-litre twin turbo V8 petrol engine. This engine produces 600Nm of torque between 5,000 and 6,500rpm and drives the rear wheels through a 7-speed automatic transmission. With a dry weight of 1,350kg, that gives the 570GT a power to weight ratio of 422hp per tonne, sufficient to accelerate it from 0-100km/h in 3.4 seconds. Believe me, it’s quick. The 570GT shares the same basic construction as the 570S, based on a carbon-fibre moncoque, designed to keep weight to a minimum. Because the 570GT is designed as a two-seat grand tourer, it weighs 37kg more than the 570S, but the additional weight is designed to bring a few more creature comforts. The visual difference between the two cars is the central 7-inch touchscreen, for air conditioning, navigation, standard fixed glass panoramic roof, treated to reduce solar phone and audio systems, while other controls for the car heat and exterior noise. Beneath this is 220 litres of addican be set up using the centre console controls and the TFT tional storage space on the leather lined Tourdigital instrument cluster in front of the driver. ing Deck, behind the seats, that the 570S does Inevitably the car comes with adaptive FLEET FACT not share. This space is accessed through the damping and the driver can select between side hinged glass hatch. This space is in addition Normal, Sport and Track settings, which alter to the 150-litre luggage space under the front both the suspension and engine responses The McLaren hatch, which is shared with the 570S. accordingly. 570GT’s carbon Leather upholstery comes as standard for Cast alloy wheels are standard equipment fibre chassis the two 8-way electrically adjustable heated with 19-inch wheels at the front and 20-inch weighs 75kg. seats, while leather is used to trim the inteat the rear. Pirelli P Zero 235/35 R19 tyres are rior throughout. Dual-zone climate control is standard at the front with 285/35 R20 tyres also standard equipment, as is the 8-speaker McLaren at the rear. Dual wishbone suspension is standard with Audio Plus system. anti-roll bars. All vehicle controls are managed either through the The result is outstanding. The car can be driven gently around town and unleashed on the open road. It is remarkably simple to set the car up as you want by dialling in the settings you prefer, which can be changed on the move. The car is surprisingly refined, considering the twin-turbo V8 is mounted not far behind your ears. If you have the chance to unleash the performance, the car behaves as well as you would hope from a car designed to deliver the ultimate in driving pleasure. It is extremely quick and handles beautifully, while ride comfort is far better than you might imagine. You can either choose to change gear manually using the paddle shifts or leave the automatic to its own devices, particularly useful while you get used to the width of the car. All round visibility is good with good rearward visibility, which is not always the case in cars of this type. You will need a degree of athleticism to get in and out through the dihedral doors, which hinge upwards from the front. Once in place, the driving position can be tailored easily to suit your size.

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ROAD_IFW_McLaren_570GT_Jan17 23/11/2016 17:13 Page 2

what we think The McLaren 570GT is one of the most desirable road cars available, fulfilling its aim of providing stunning performance with the comfort required for a grand tourer. Ask Santa nicely.

highlights Twin-turbocharged 3.8-litre V8 produces 570hp, consumes 7.4l/100km on an extra-urban cycle. Luxury-focused equipment and quieter exhaust designed for everyday use. 370-litre luggage capacity via front compartment and leather-covered ‘touring deck’.

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ACEA_IFW_Jan17_LAW 23/11/2016 16:32 Page 1

fleet in figures

Will the Trump victory be good for the US motor industry? The Trump victory could be good or bad for the US automotive sector. John Kendall looks at the story so far.

t is too early to assess the impact that Donald Trump’s victory in the US presidential election might have on the US auto sector. For one thing, he will not take office until the New Year and it is difficult to assess how much of what he had to say about the North American Free Trade Agreement (NAFTA), Mexico and bringing jobs back to the US will actually be turned into action. Both US-based and foreign motor manufacturers have taken advantage of lower wage rates in Mexico to establish assembly operations there to feed finished products into the US and Canadian markets via NAFTA. If policy decisions made those plants unviable, there would be heavy cost implications for the manufacturers there and potentially a large impact on the job market in Mexico. LMC Automotive believes that Trump’s election has the potential to impact the light vehicle industry negatively in two main ways: “First, negative macroeconomic consequences could weigh on US and global growth, diminishing vehicle demand and

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reducing vehicle output from the top down. There are multiple channels through which this would operate. “Second, trade within NAFTA could be distorted if barriers (tariff or other) were to be imposed with the most negative risks evident for future Mexican vehicle production volume and sourcing decisions. “Countering the negative elements could be the tax cut and other incentives promoting investment in the US for OEMs and suppliers. In addition, there is the growing possibility that CAFE regulations will be relaxed, which may ease concerns that the targets will are too challenging to achieve.” This is all speculation for now and we will have to wait until the new President has taken office to see what impact his policies have on the US motor vehicle sector and how far beyond US borders any decision would reach. At the recent LA Show there was no shortage of concept models from US manufacturers including, Lincoln, Buick and Cadillac and no shortage of new model launches either.


ACEA_IFW_Jan17_LAW 23/11/2016 16:34 Page 2

US market still strong

European registrations easing?

Double-digit growth in China

Looking at available data on the US market for the first 10 months of the year, Scotiabank suggests that early October data indicates that sales climbed to an annualised 18 million units, the highest level in the past year and notably higher than the 17.3 million average of the first 9 months of the year. Scotiabank attributes the strong performance mainly to retail sales. The bank also indicates that North American motor manufacturing is set to reach an all-time production record in 2016. Manufacturers are expecting a total output of 18.2 million units in 2016, up from 17.9 million in 2015. Following the pattern set so far this year, light truck sales are expected to outstrip car sales by over 3.5 million units, by the end of the year. LMC has assessed the global light vehicle market to the end of October and suggests that 2016 global sales reached 76,728,843 by the end of the month, a 4.8% increase compared with the same period in 2015. LMC suggests that the strong US retail market was the result of a 12% increase in manufacturer incentives. Canada, by contrast saw October sales down 5.2% compared with October 2015, the fourth month in a row when light vehicle sales have declined in the country.

Data from the European Automobile Manufacturers Association ACEA shows that in October, there was a slight fall in European registrations, down -0.02% to 1,104,506 units. Among the “Big 5” markets, both Germany and France recorded reductions in registrations of -5.6% and -4.0% respectively. The overall picture in 2016 is still buoyant with EU car registrations up 7.2% for the January to October period (YTD) to 12,348,502 units. Over this period, all 5 major markets recorded growth compared with 2015, with registrations in Italy up 16.7% to 1,553,394 and in Spain, up 10.8% to 957,468. The Volkswagen Group remains the bestselling group in the EU, with registrations up 2.8% YTD to 2,949,330. VW as a brand is still feeling the after effects of the emissions scandal from over a year ago with VW brand registrations down -0.6% to 1,391,004. Even so it remains the best selling brand in the EU. PSA Group is the second best selling group in the EU with registrations up 1.7% YTD to 1,235,118. Peugeot has enjoyed a healthy increase in registrations this year, up 3.5% to 720,369, enough to make it the fifth best selling brand in the EU after VW, Renault, Ford and GM. Renault Group is close behind PSA in 3rd position with registrations up 11.5% YTD to 1,224,778. Both Renault and Dacia have performed well this year. Sixth-placed FCA Group has experienced the largest percentage growth in EU registrations in 2016 with a 14.9% increase to 831,313, thanks to strong performances from all brands.

Elsewhere around the world LMC reports that light vehicle sales in China continue to rise, ahead of the end of the temporary tax cut and fuelled by manufacturer and dealer incentives. YTD, sales have risen 12.8% to 22,099,021. LMC notes that light CV sales have continued to stagnate. In Japan, YTD sales are down -3.4% to 4,104,360, although sales for October are down -0.4% compared with October 2015 to 374,954. Sales in Korea for October were down -9.9% compared with October 2015 while YTD, sales are up by a modest 0.3% to 1,442,018. LMC says that a temporary tax cut that expired in June, depressed sales from July to September. But LMC sounds a note of caution, “Sales in the coming months could, however, be impacted by the slowing economy and the ongoing political crisis surrounding President Park’s corruption allegation.” LMC data shows that the weak market in Brazil and Argentina is showing some signs of recovery, particularly in Brazil. Brazil’s problems are not being helped by VW Brazil’s supply constraints and continuing adverse economic conditions, which include double-digit unemployment. The company reports that the selling rate in Argentina fell sharply to 672,000 units per year in October after a surge in the previous two months. Combined sales in Brazil and Argentina were down 15.6% YTD to 2,193,174.

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