NEW: the Opel
GRANDLAND
Business meets pleasure
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Official fuel consumption for the SEAT Arona FR 1.0 TSI 115 PS in mpg (litres per 100 km): urban 47.9 (5.9); extra-urban 65.7 (4.3); combined 57.6 (4.9). C02 emissions 113 g/km. Standard EU Test figures for comparative purposes and may not reflect real driving results.
contents NEW: the Opel
GRANDLAND
Business meets pleasure
Chairman Jerry Ramsdale jerry@fleetworldgroup.co.uk
16 SPOTLIGHT: New Citroën C4 Cactus.
20 INTERVIEW: Linda Jackson of Citroën.
24 How to tame high collision repair costs.
39 DRIVEN: New Volkswagen T-Roc.
Publisher Steve Moody steve@fleetworldgroup.co.uk Editor John Challen john@fleetworldgroup.co.uk Deputy Editor Alex Grant alex@fleetworldgroup.co.uk Business Editor Natalie Middleton natalie@fleetworldgroup.co.uk Content Editor Jonathan Musk jonathan@fleetworldgroup.co.uk Sales Manager Claire Warman claire@fleetworldgroup.co.uk Sales Manager Harry Whyte harry@fleetworldgroup.co.uk Circulation Tracy Howell tracy@fleetworldgroup.co.uk Head of Production Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk
04 Fleet Review Editor John Challen looks ahead to the fleet market in 2018. 06 Fleet in figures Breaking down the latest global vehicle sales by region. 07 Van Fleet World iD Experience the new, interactive LCV magazine online now. 08 News The biggest stories from a month in the international fleet world.
Victoria Arellano victoria@fleetworldgroup.co.uk
16 Spotlight Under the skin of the more premium New Citroën C4 Cactus.
Web Designer Dan Desta daniel@fleetworldgroup.co.uk
18 Analysis Analysing the residual value of the popular Audi A2. 20 Interview Citroën’s CEO Linda Jackson discusses plans for a 30% sales increase.
Published by Stag Publications Ltd, 18 Alban Park, Hatfield Road, St Albans, Herts, AL4 0JJ tel +44 (0)1727 739160 fax +44 (0)1727 739169 email ifw@fleetworldgroup.co.uk web internationalfleetworld.com
24 Feature Advice on how to contain and control spiralling collision repair costs. 28 Fleet Focus Alfredo Hernandez of Autorola Mexico outlines a growing market. 32 Profile MINI: BMW Group’s success story continues to increase global sales. 36 Feature How GM’s OnStar has changed the way drivers interact with their vehicles. 39 Launch Report Volkswagen e-Golf / Volkswagen T-Roc / Skoda Karoq.
To subscribe to International Fleet World visit: www.fleetworldsubscriptions.co.uk
42 EV Charging Plans for a collaborative pan-European EV charging network.
internationalfleetworld.com / 03
fleet review This month, editor John Challen indulges in a bit of crystal ball gazing at what 2018 could hold for the fleet industry...
Greetings of the season As we prepare to enter another year – and say goodbye to the old one – it’s an ideal time to take a look back at the past 12 months in fleet. It also provides an opportunity to do a bit of crystal ball gazing and try to secondguess what impact the actions of manufacturers, legislators and national authorities will have on our lives. The past 12 months have seen buoyancy in different markets at different times – making it difficult to really pick out any strong trends. In general, car sales remain strong, although there have – occasionally – been worrying times in historically strong markets, such as Western Europe and North America. It remains to be seen how that will play out, but with many European markets retracting over the past few months and China continuing to strengthen, 2018 could see a real shift in market dominance. China, of course, is one of the countries investing heavily in and committed to electric vehicles. In 2017, we have seen many statements made about an electric future, with governments keen to outlaw by a certain date vehicles powered by internal combustion alone. The EV technology may still be maturing, but it is doing so at such a rate it makes you think anything is possible. Will motor shows be filled with more battery-powered concepts than you can cope with? Quite possibly, but it is how they
stand apart that makes a difference. Just before International Fleet World went to press, Tesla announced an electric truck (an HGV as opposed to a van) that raised eyebrows with many. There was also a new version of the Roadster, with some interesting (and, to some, puzzling) performance figures. The startup is not without its doubters, but it does seem to create a lot of interest and attention. It’s been a momentous year for driverless vehicles too, with plenty of talk about autonomous, connectivity and usability but there is no doubting that self-driving cars are coming. More pilot projects are being announced all the time. Also at the time of going to press, Jaguar announced that it was ‘driving’ autonomous vehicles around Coventry – and this trend will only continue throughout 2018. Manufacturers have to be seen to be onboard – these are challenging times for OEMs, with their traditional and core products under threat from new pretenders. For consumers, it will hopefully bring more choice without more cost. Will procurement methods change? Will the industry move away from ownership to usership? What new business tools will help run your company more efficiently and effectively? These are tough questions to answer and, really, only time will tell. Let’s hope the answers come sooner rather than later. See you in 2018…
visit internationalfleetworld.com
Who’s driving the industry?
DECISIONS, DECISIONS. INTRODUCING THE JAGUAR AND LAND ROVER RANGES FOR BUSINESS Efficiency or performance? Ride comfort or driving dynamics? Connectivity or capability? Choosing vehicles for your fleet is a huge responsibility, but who said you can’t have it all? The Jaguar and Land Rover ranges offer uncompromised solutions for every fleet. We also understand the importance of low Total Cost of Ownership – that’s why we consider it throughout the design and development of all our vehicles. Featuring our innovative InControl infotainment system and state-of-the-art Ingenium engines, our vehicles deliver everything your business demands. The only decision you need to make is which one to test drive first.
fleet-business.jaguarlandrover.com
fleet in figures
October growth despite a falling selling rate Western Europe records strong figures in October, but the US market drops. By John Challen.
O
ctober light vehicle sales in the US totalled 1,353,000 units, down 1.3% from a year ago, while the month’s selling rate reached 18.1 million units a year. Fleet sales drove the month’s positive results; while they soared 18.8%, retail sales dropped 1% (selling day adjusted). Incentives grew 2.4% from last year, to $3,925 on average. Canada kept its growth streak going. October sales added 164,000 light vehi‐ cles, 6.2% more than in October 2016, although the selling rate fell to just under two million units a year from 2.1 million units a year in September. Incentives reached a record high last month. Mean‐ while, sales in Mexico fell to 123,000 units in October, down 15.4% from a very strong October 2016, when sales soared 21.8%.
units a year in September to 1.71 million units a year in October. Based on these figures, LMC Automotive increased its 2017 light vehicle forecast for the coun‐ try slightly to 1.58 million.
China Preliminary data indicated that the Chinese market maintained a solid rate through October, ahead of the expiration of the temporary tax cut on smaller vehi‐ cles at the end of this year. The October selling rate was 30.4 million units, down 2% from September, but still a good result. On a YoY basis, sales declined marginally in October. There is a good chance that sales (i.e. wholesales) will remain subdued during the rest of this year, since the end of the temporary tax cut is expected to dampen retail sales in 2018.
Europe The Western European light vehicle market grew by 5.9% year‐on‐year in October, on a comparable number of sell‐ ing days to October 2016. However, the selling rate continued to slip back, to 15.9 million units a year, from 16.1 million units a year last month. Nevertheless, the regional market is set to achieve its best full‐year result since before the global financial crisis. This is chiefly a reflection of strong economic growth in the Euro‐ zone, which this year is likely to be the highest since 2007. The recovery in the Russian market remains on track following a 17% increase in sales in October, taking the year‐to‐date increase to 11.3%. The sell‐ ing rate was generally quite flat over the summer, but increased from 1.67 million
06 / internationalfleetworld.com
Other Asia In Japan, the selling rate abruptly slowed to 4.9 million units a year in October, dragged by a plunge in Nissan’s sales after the revelation that the automaker was using unlicensed employees to conduct the final inspection of new vehi‐ cles. With Nissan resuming normal deliv‐ eries, however, total Light Vehicle sales are expected to rebound in November and exceed 5 million units in 2017 on the back of the buoyant economy. After a spike in September, the selling rate in South Korea decelerated sharply in October, distorted by the timing of the Chuseok (mid‐autumn festival) holiday. With September and October combined, however, the selling rate averaged 1.74 million units a year, maintaining a solid
pace. Sales are expected to fall marginally this year, due to the pull‐ahead effect of the temporary tax cut in 2016.
South America The recovery in the Brazilian market is firming up. The selling rate exceeded 2.3 million units a year for the third consec‐ utive month in October. On a year‐on‐ year basis, sales increased by nearly 27% in October and 9.7% so far this year. The sharp declines in inflation and interest rates, as well as a nascent recovery in the job market, are helping to boost consumer confidence and spending. After a marked slowdown in Septem‐ ber, Argentina’s selling rate accelerated to 844,000 units a year in October. On a year‐on‐year basis, sales increased by 21% in October and 27% year‐to‐date. Following the decisive victory in the October mid‐term elections, President Macri’s centre‐right government has unveiled sweeping tax reform proposals, which could boost light vehicle sales in the long term. Ford sales in the buoyant Russian market jumped 33% in October.
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manufacturer news
EU plans for 30% cut in emissions by 2030
he European Commission is looking to cut car and LCV T emissions by nearly a third by 2030 under a proposal for post‐2021 CO targets. 2
The plans set out that average CO2 emissions from new passenger cars and LCVs registered in the EU in 2025 would need to be 15% lower compared to 2021, rising to 30% lower by 2030. This would bring the ceiling for fleet average emissions down from the 95g/km limit currently levied from 2021 to 66g/km from 2030. The proposals – which will now be considered by the Euro‐ pean Council and Parliament – fall in line with the objective of reducing greenhouse gas emissions from transport by at
least 60% on the 1990 level by 2050, as reaffirmed in 2016 under the European Strategy for low‐emission mobility. The European Automobile Manufacturers’ Association (ACEA) said setting an additional target already in 2025 “does not leave enough time to make the necessary techni‐ cal and design changes to vehicles, in particular to light commercial vehicles given their longer development and production cycles”. It added that the 30% reduction level proposed by the Commission is also “overly challenging” and said the Euro‐ pean auto industry considers a 20% reduction by 2030 for cars to be achievable at a “high, but acceptable, cost”.
Premium refresh for Citroën C4 Cactus
C
itroën will launch a heavily updated version of the C4 Cactus early next year, with toned‐down styling and a step up in refinement and comfort in a move to broaden its appeal. The biggest change is a thorough styling overhaul, reducing the size of the protective ‘Airbump’ panels on the bodywork, with front and rear lighting more aligned
to the C4 Picasso than its predecessor. Discrete but notable, the ‘Cactus’ badging has been removed from the tailgate, suggesting the model could soon replace the C4 hatchback, though it’s still visible on the C‐pillars. Most of the changes are mechanical; this is the first car launched in Europe to feature the Progressive Hydraulic Cushion suspension, a unique system designed to offer pliant ride quality without blunting handling. Comfort features also include new seats designed to improve posture and long‐distance comfort, as well as thicker windows and improved sound deadening to cut wind and engine noise. Updates also bring a new capacitive touchscreen, featuring Android and Apple smartphone mirroring and internet‐connected navigation, and a range of assis‐ tance technology, including lane‐keeping, autonomous braking and keyless access.
See more about Citroën C4 Cactus on page 16.
08 / internationalfleetworld.com
For the latest news, visit internationalfleetworld.com
Mazda engines to target sub-EV levels of CO2 emissions
in brief
azda is targeting a combustion engine with lower well‐to‐wheel CO M emissions than an electric vehicle, as part of a suite of fuel‐saving solutions to cater for varying global market needs.
2
A spokesperson for the carmaker said well‐to‐wheel CO2 emissions (taking production and distribution of the fuel into account) from its 2.0‐ litre Skyactiv‐G petrol engine are around 142g/km, compared to 128g/km for an electric vehicle at the same power level, the latter using power gener‐ ated from a typical mix of sources. Building on from this, a 10% improvement in CO2 emissions for future petrol engines could enable them to potentially match an electric vehicle while a 30% improvement in fuel economy compared to today’s engine tech‐ nology could bring well‐to‐wheel CO2 emissions beneath that of an EV using energy produced using liquefied natural gas (LNG) – the cleanest form of electrical generation at the moment, at 100g/km on a well‐to‐wheel basis. Mazda’s aim is a 50% improvement in fuel economy by 2030, compared to 2010 levels, and a 90% improvement by 2050. These will be through a combination of better engine technology and progressive electrification.
Radius launches telematics service in US Radius Payment Solutions is expand‐ ing into the United States of America with a range of fleet services. The irm, headquartered in the UK and with of ices in 13 countries in Europe and Asia, has now opened an of ice in Boston, initially focused on its Kinesis telematics solution but with plans to also debut its fuel cards busi‐ ness and a full suite of leet solutions.
Audi develops sustainable diesel from water Audi is to start producing ‘virtually CO2‐neutral’ e‐diesel from early next year. Planned for production at a new Swiss production facility, the e‐diesel will be made using energy supplied from hydropower to turn water into hydrogen and oxygen via electrolysis. The hydrogen is combined with CO2 from the atmosphere to create hydro‐ carbons, used for the synthetic diesel.
Opel financial ops acquisition closes
Real-world fuel consumption gap hits 45% for company cars
T
he gap between official fuel consumption figures and real‐world perfor‐ mance in the EU has quadrupled since 2001, hitting an all‐time high, new figures suggest. Latest research by the International Council on Clean Transportation (ICCT) and the Netherlands’ Organisation for Applied Scientific Research (TNO) finds the discrepancy between the figures now stands at 45% for company vehicles and 39% for privately owned vehicles – with an overall figure of 42%. Based on data for more than 1.1 million vehicles from eight European countries, the study follows previous research in 2013 that found the aver‐ age gap stood at around 25% – from 10% in 2001. However, the ICCT noted a slowdown in the rate of increase in the gap for the first time ever, in particular for company cars – and said that with all new cars set to get ‘real‐world’ figures within the next year under the new WLTP protocol, the gap is expected to halve under the new procedure.
Opel and Vauxhall’s financial opera‐ tions have now been hived off into a new automotive finance company, jointly owned by PSA and the French bank BNP Paribas. The move forms part of PSA’s acquisition of the carmaker, which closed some three months prior.
Kia to deploy Indicata Kia Motors Europe is to use the Indi‐ cata used vehicle intelligence platform to support growth plans for its used vehicle operations. The web‐based platform monitors all used cars currently for sale in a market by collect‐ ing and analysing live used car market data in real‐time from online sources.
internationalfleetworld.com / 09
Masterpiece of Intelligence. The new E-Class. The new E-Class demonstrates that intelligence has many different sides. Whether in a Saloon, Estate, All-Terrain, CoupÊ or Cabriolet – with Intelligent Drive, you experience a whole new dimension of innovative safety and comfort. www.mercedes-benz.com/fleet
environmental news
Electric Corsa to debut in 2020 under Opel turnaround plans
O
pel, and sibling Vauxhall, is to debut a next‐generation electric Corsa and a plug‐in hybrid version of its Grandland X crossover by 2020 under post‐takeover plans to bring the company back into profit. Revealed by recently appointed Opel CEO Michael Lohscheller 100 days after PSA’s acquisition of the carmaker closed, the PACE! performance plan is intended to secure the future for both brands, bringing them back to profit by 2020. This includes an accelerated shift to using PSA’s CMP and EMP2 platforms to underpin all future Opel/Vauxhall passenger car models from 2024 – three years earlier than planned – reducing the number of platforms from the current level of nine. PSA engines and transmissions will also be used in all models. Opel will also make use of PSA’s electric drivetrains in future models, with plans for four ‘electrified’ models on the market by 2020, including the Grandland X PHEV and electric Corsa. All passenger car lines will be “electrified” by 2024 – meaning that they will offer a fully electric or plug‐in hybrid version alongside “efficient” internal combustion engines, likely to mean mild hybrid usage. The plans also look to explore fuel cells and automated driving technologies. Plans for the light commercial vehicle (LCV) business will also see Opel/Vauxhall launch new models and enter new markets with the clear goal to increase its LCV sales by 25% by 2020 against 2017. The brand also said there would be more attractive financial offerings as well as full service leasing offers via the Financial Services of Opel and Vauxhall. Opel/Vauxhall will also expand into more than 20 new export markets by 2022 with the brand to explore “global midterm overseas profitable export opportunities”.
Eon’s pan-European charging network due by 2020
U
tility company Eon is to install a network of 10,000 charging points across Europe, including ultra‐fast units on key routes, creating a network spanning from the UK to Romania by 2020. This will include a mixture of charging speeds; lower‐ powered units where people stop for longer, such as at super‐ markets and train stations, and ultra‐fast charging points offering an output of 150kW (three times faster than today’s rapid chargers) at short‐ stop locations. The announcement came as BMW Group, Daimler, Ford Motor Company and the Volkswagen Group all committed to plans to launch a network of 400 ultra‐fast charging stations for electric vehicles along major European routes.
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Building on last year’s announcement of the network, the carmakers have formed a joint venture, dubbed Ionity, that will ensure the scheme is completed by 2020, with production of around 20 stations having already started on major roads in Germany, Norway and Austria, at intervals of 120km. Stations in the scheme will bring a charging capacity of up to 350kW, delivering a signi icantly reduced charging time compared to existing systems. The project also takes care of multi‐brand compatibility for current and future generations of electric vehicles by using the Combined Charging System (CCS) protocol. Founding partners have an equal stake in the scheme, but other manu‐ facturers and regional partners are being encouraged to support it.
For the latest EV news, visit evfleetworld.com
Toyota reveals long-range electric future
T
oyota is sticking with hydrogen fuel cell technology despite pressing ahead with research into longer‐range solid‐state batteries, revealing two concepts at the Tokyo Motor Show to showcase the technology. Unveiled as the carmaker marks 20 years since the first Prius was revealed in Tokyo, the Fine‐Comfort Ride luxury saloon features the brand’s latest‐generation fuel cell system and will target a range of 1,000km on a full tank. But the company said its success with hybrids – claimed to be a 43% share of the global electrified vehicle market, with 37 models sold in 90 countries worldwide – was also a good foundation for pure electric vehi‐ cles. Toyota recently signed a joint venture with Mazda and Denso, and is hoping to have solid‐state batteries in production vehicles within a few years, providing longer ranges and significantly shorter charging times than today’s technology. Speaking at the event, executive vice president, Didier Leroy, said: “We believe our solid‐state battery technology can be a game‐changer with the potential to dramatically improve driving range.”
Volvo’s Polestar reveals plug-in hybrid with 150km EV range
P
olestar, Volvo Car Group’s performance subsidiary, has revealed a 600hp plug‐in hybrid coupé with a fully‐electric range of 150km, due to go into production in mid‐2019. The Polestar 1, which looks almost identical to Volvo’s S90‐previewing Concept Coupé of 2013, is based on the platform used by the S90, V90 and XC90, but around half of the chassis parts are said to be unique and some of the bodywork is made of carbon fibre to save weight. Polestar hasn’t revealed full details of the technology underneath, but the rear axle features an electric motor at each wheel, producing a combined 216bhp and with a battery‐only range of 150km when fully charged. Perfor‐ mance and range is extended with a 2.0‐litre Volvo petrol engine at the front wheels, boosting output to 600hp and offering four‐wheel drive.
in brief Webtool to help find electric vans Clean energy consultancy company Voltia has launched a free online tool aimed at helping businesses ind electric light commercial vehicles to suit their leet. Free to use, EVXpert shows suitable vehi‐ cles based on criteria including range, payload, cargo space, charging availability, nearby road characteristics and more.
Mitsubishi’s next ‘Evo’ could go electric Mitsubishi has revived its Evolution line with a fully electric crossover, revealed at the Tokyo Motor Show. The e‐Evolu‐ tion Concept is the irst car to get the badge since the tenth‐generation Lancer Evolution was discontinued last year, and is the strongest hint yet that Mitsubishi may use this for its most powerful electric vehicles in future.
LeasePlan to help large corporates switch to EVs LeasePlan is launching a new electric vehicle pilot programme to help large corporates make the transition to electric vehicles. The fully scalable programme will enable leets to trial electric vehicles while also facilitating the implementation of charging infrastructure at customers’ of ices and employees’ homes.
Tesla Model 3 production still far behind global demand
in numbers
Tesla has pushed back its production target of 5,000 Model 3 electric saloons until January. The carmaker said increased automation compared to the Model S and Model X, and complexity of manufacturing the battery modules were the main bottlenecks, which it hopes to increase over the coming weeks.
Source: Nissan
20
Maximum number of rapid charge points at new UK off-grid EV rapid charging mega sites planned for launch next year.
600km
Official range (Japanese JC08 standard) of Nissan IMx zero-emission Crossover concept shown at Tokyo.
Source: eVCentres
internationalfleetworld.com / 13
business news LeasePlan and TomTom Telematics team up for real-time fleet data
L
easePlan is to offer the latest fleet management technology to its corpo‐ rate customers under a new partnership with TomTom. Forming part of LeasePlan’s ‘Any car, Anytime, Anywhere’ service, the agree‐ ment enables customers to access TomTom’s cloud‐based fleet management and connected car solutions, including Webfleet, in all markets where the firms have a joint footprint. The solutions will provide fleets with real‐time data on key fleet metrics while also supporting customer compliance with the forthcoming GDPR data privacy legislation. LeasePlan is also deploying the cloud‐based TomTom Telematics Service Platform, which will bring developments in areas such as vehicle maintenance and contract management.
fleetiinquotes a few soundbites from a month in fleet
“
We are now thoroughly committed, alongside all of the teams, to building the strategic plan with the clear purpose of improving the performance of the company's businesses and the competitiveness of our financial solutions for Opel and Vauxhall customers.
”
CEO of new Opel/Vauxhall finance organisation
In this second edition of the European Day Without a Road Death, we recorded again a significant improvement compared with 2015. This shows that awareness and education, together with effective enforcement of traffic rules, make our roads a much safer place.
“
Allianz to launch Europe-wide telematics services for OEMs
A
llianz Worldwide Part‐ ners is to expand its portfolio of manufacturer‐ branded roadside assistance and warranty schemes with new telematics services for its automotive manufac‐ turer clients. The new solutions will cover services such as crash alerts, theft prevention and stolen vehicle tracking, as well as concierge and remote services including vehicle unlocking, and will be offered to the firm’s manufacturer clients in markets including the UK and Ireland. Lee Taylor, chief sales officer for Allianz Worldwide Partners in the UK, said: “We will still focus on offering vehicle breakdown and emergency assis‐ tance services as our primary services, otherwise known across the indus‐ try as bCall and eCall, but expanding our offering means we can deliver a complementary group of services for manufacturers and their customers.”
14 / internationalfleetworld.com
”
Violeta Bulc, EU Transport Commissioner
“
Whoever aims for sustainable competitiveness and profitability must continuously evolve and adapt to rapidly changing surroundings – technologically, culturally and also structurally. Dr Dieter Zetsche, Daimler CEO
”
ANOTHER WAY TO EXTEND YOUR CAR PARK The New Å KODA KAROQ.
www.skoda-auto.com
Combined fuel consumption and CO 2 emissions according to the legislation of the concerned country y
SPOTLIGHT CitroĂŤn C4 Cactus
Magic carpet car A new suspension system and re-designed door panel protector panels. John Challen casts an eye over the new, smoother, CitroĂŤn C4 Cactus.
Things that go bump One of the standout features on the exterior of the original C4 Cactus was the Airbumps on the door panels. Designed to prevent scratches and scrapes from other doors or objects, the plastic mouldings made the debut on the Cactus and then went on to adorn other models. For this new model, however, the bumps have been moved and made smaller. The overall design shift from quirky to conservative is sure to be welcomed by many customers, but others will be less impressed with the changes.
FLEET FACT The interior design has been improved, allowing for extra passenger space for occupants as well as more comfortable seats
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The hatch is back The current demand and fascination with SUVs has meant conventional models such as sedans and hatchbacks are slipping down the pecking order in the overall list of most popular body styles. However, Citroën is aiming to take the comforts from the standard C4 and combine them in something with a bit more ‘personality’. There are 12 driver assistance systems available to be specified, three connectivity technologies and a revised engine line-up with the most powerful unit offering 130hp.
Comfort with cushions The C4 Cactus becomes the first Citroën model in Europe to be fitted with the French manufacturer’s latest suspension system, which features ‘Progressive Hydraulic Cushions’. This innovation uses hydraulic bump stops in place of conventional mechanical items, alongside the conventional shocks and springs. One of the stops is used for compression, the other for decompression. The result? ‘Incomparable levels of comfort’, according to Citroën…
What we think... There are some cases when derivatives of already existing vehicle models goes too far, but the C4 Cactus – like the C3 Picasso – isn’t one. The love-them-orhate-them Airbumps have been altered, but there is still enough innovation to make this car an attractive proposition for customers looking for an alternative to the standard hatchback. JC
internationalfleetworld.com / 17
ANALYSIS Residual values
Remarketing notes Analysing the resale value of the Audi Q2 Dieter Fess provides the details for the compact SUV. What the manufacturer said at launch:
About the residual value grades
Head of Audi design Marc Lichte and his team have taken the compact SUV in a bold new styling direction designed to appeal to a younger audience and have combined this with a quality of finish and a portfolio of connectivity, infotainment and assistance systems that will be instantly familiar from the larger Audi models. The Audi Q2 is a distinctively geometric form language with model‐specific design characteristics. The car exhibits an independent character within the Q family.
The residual value grades assess the residual value perfor‐ mance of the car model in question. Additional to the grades, a short statement addresses some of the cars’ characteristics or other factors, which are relevant to its residual value performance. The residual value grades are calculated accord‐ ing to their residual value percentages and the monetary depreciation within three years after the purchase as a new car, considering a common mileage for the respective segment. The performance is put in relation to the residual value performance of competitor models.
What BF Forecasts says now: No matter where an Audi is being sold the residual values are amongst the highest in the segment. The Q2 emphasises this “RV‐DNA” in Spain, Germany and France impressively. However, there is a slight lack of courage regarding the design of the Audi line‐up (with the exception of the R8), which is not a problem today, but could be a problem tomorrow, especially when you look at the bold and elegant Volvo, Maserati or Jaguar designs. Even Kia, Hyundai and Mazda are showing their focus on individual shape and formal expression. This is a trend that will last for a long period of time. Audi should be sensitive to this. Brand: Audi Model: Q2 Available since: 2016 Prices from: (incl. VAT)
France
Germany
Spain
€25,420
€23,400
€28,910
Engines:
Petrol
Diesel
116hp
116hp
150hp
150hp
190hp
190hp
Text and data: bähr & fees forecasts GmbH ( Ø- Values; Trade; 36; Mon; 45TKM;10-2017)
18 / internationalfleetworld.com
About BF Forecasts BF Forecasts is an independent supplier of accurate and trans‐ parent residual value forecasts as well as used car value data for the past and current used car market. BF Forecasts has been providing such data to leasing companies (both captive and non‐captive), OEMs, NSCs, major company fleets as well as to insurance and investment companies inside and outside of Europe since 1998. RESIDUAL VALUE GRADES 10 9 8 7 6 5 4 3 2 1 France
Germany
Spain
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INTERVIEW Linda Jackson, CEO, Citroën
Character building Citroën CEO, Linda Jackson, has plans to increase the brand’s sales 30% to 1.6 million units by 2020, through a combination of products and customer service. Alex Grant finds out more.
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It’s three years since the PSA Group outlined plans to define its three brands more clearly; how is Citroën’s renewal shaping up? Citroën is asserting its identity as a popular brand in the best sense of the word; a carmaker of and for the people. We’ve implemented this positioning over the last three years with a 360‐degree strategy that makes the customer experience central, from new products, to changing sales outlets, to connected and mobility services. For the first half of this year we’ve recorded the highest number of registrations in six years; a 5.6% increase [to 426,000 units] over the same period last year. Sales due in great part to the C3; 200,000 sales in one year after its launch, with 50% higher end and 60% two‐tone. Also, the latest generation C4 Picasso continues to see success, now reaching 500,000 cumulative sales.
With a mid-life refresh of the C4 Cactus positioning it as a replacement for the soon-to-be-discontinued C4 hatchback, which other segments do you see as important? Within the Citroën range we will have eight core silhouettes, which covers small, medium and large cars, including SUVs. At the same time, we have a core model strategy for commercial vehicles and we have a co‐operation which will continue with Toyota on C1. So, when we talk about models we have three parts. We are currently in the SUV phase, with C3 Aircross and C5 Aircross, which comes to Europe in the back end of next year, then we go through to 2020 launching another vehicle, and the range will be complete by 2021/22. As you move into 2020/21 you’re coming into a new era of platforms. Last year you hinted that a sedan would be part of that line-up – what can we expect from that? The easiest way to imagine what we’ve got in mind is by going back to the Paris Motor Show last year, and the Cxpe‐ rience concept. It was a test. We wanted to create a large sedan that had none of the sedan markers; little wood, no leather, no chrome. When we come to market, it will be a sedan of sorts but it won’t be a traditional, C5‐type sedan. The Chinese market needs a three‐box sedan, so we need to under‐ stand how we can be innovative in delivering that. To come to market with a traditional sedan and go against the Germans would be silly. You’ve got to come in with something that’s different for customers.
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INTERVIEW Linda Jackson, CEO, Citroën
“We looked at whether Opel customers hesitate with a Citroën and vice versa, and they are a completely different customer base.” The products we’re producing now are relevant for the mainstream, at the prices we’re trying to do. Therefore I don’t see any point moving upstream as we’ll go back to the same problem, which is why we started this in 2014, of competing for the same customers. We looked at whether Opel customers hesitate with a Citroën and vice versa, are they are a completely different customer base. We don’t believe there’s any issue or cannibalisation within the brands, but each must have a very strong positioning in terms of their key assets.
marketing message for the C4 Cactus has changed → The since it first launched, now focusing on comfort and refinement instead of low running costs. Is this a sign of Citroën repositioning itself now that Opel and Vauxhall are part of the PSA Group? Not at all. Citroën is in the heart of the mainstream, there are lots of people around there, but we are not moving. Opel will create its own positioning, it is currently doing its own plan, but it won’t affect Citroën. We will remain in the heart of the mainstream and concentrate on two distinct things; one about design – we will be different in the market as that’s where we need to be – and comfort is a major factor. Opel will produce its plan and positioning, but that won’t affect Citroën, or any of the brands [in the PSA Group].
With the prevalence of leasing and finance, residual values often play a bigger role in whole-life costs than the actual price of the car – how are you looking to strengthen these? It started four or five years ago in terms of building quality into the car, and benchmarking against the German brands. So it’s in the conception of the vehicle; it’s fit, finish, parts used. It’s much easier to improve residual values of a new car. Then it’s a matter of coming to market. When I first joined in 2005, we were the cashback kings of the market. You don’t build any value in a car by doing that. It’s a strategy of building volume, but it’s a short‐term strat‐ egy because the residual value is no good. From 2010 onwards, we Introduced finance offers to move away from cashbacks. That way everybody that’s doing the quoting sees the value of your car, and that you’re not distressing the car. So it’s quality build, quality conception, and how you come to market. It takes years to do it. Given the popularity of sports-styled trims in other model ranges, do you see a role for similar offers within the Citroën line-up? We need something. Whether it's sporty, which Peugeot does well, we're looking at what we can do. But it needs to fit in with the positioning of Citroën, which isn’t about sportiness – it’s about comfort. PSA chairman, Carlos Tavares, said last year that the group will have 11 plug-in vehicles by 2021. When will Citroën introduce its first electrified models? From 2023, 80% of our vehicles will be electrified or plug‐in hybrid. New vehicles that we launch after 2020 will be on multi‐engine platforms, so will have electric or plug‐in hybrid [technology], depending on the market.
New Citroën C4 Cactus has lost its distinctive Airbumps, with the new model still being very much design-led and comfort-focused.
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The new Opel
INSIGNIA German Technology for Everyone Ï
Ï
Ï
Safety first: IntelliLux LED® Matrix headlights, Opel OnStar and advanced safety systems Full transparency: addressing real-life fuel consumption (WLTP driving cycle) and OnStar fleet manager portal Leading its category: state-of-the-art innovations and premium-class features
Fuel consumption combined 11.2–3.6 l/100 km; CO2 emissions combined 197–105 g/km (according to R (EC) No. 715/2007). Picture shows optional equipment and Exclusive trim. Availability depends on local market offer.
FEATURE Accident Repair
ROUGH WITH THE SMOOTH New technology is driving collision repair costs upwards. Dave Moss finds out why and what can be done to stop the trend.
E
ven as increasing fitment of new technology such as Advanced Driver Assistance systems (ADAS) is working to reduce collisions involving newer cars, the cost of repair‐ ing bodywork damage is rising. Insurers are usually amongst the irst affected by such increases, so motor premiums natu‐ rally follow. But typical end of lease repairs and other bodywork completed without an insurance claim will also soon cost more. Thomas Hudd, Repair Tech‐ nology Centre operations manager at the UK’s Thatcham insurance research centre sees several key reasons: “The reparabil‐ ity of parts such as headlamps, the increasing complexity of vehicle materi‐ als and technology, and the rising cost of spare parts, sometimes in luenced by currency luctuations, have all contributed toward signi icant rises in average repair bills,” he says. Technology itself must take some blame; the centre’s research suggests average repair costs can increase greatly when ADAS technologies such as Autonomous Emergency Braking are itted. Though every market is different, Thatcham believes ADAS itment could
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increase UK pricing for a Ford Focus windscreen replacement by 123%, and for a VW Golf by 78%. Hudd explains: “We welcome ADAS and the continued growth in its itment, but the identi ication and calibration of its features makes repair processes much more complex.”
OEM responsibilities Robert McDonald, secretary general of RCAR, an association of insurance research centres operating on ive conti‐ nents, feels manufacturers have some responsibility for increased repair costs involving such technology. “Car makers sometimes fail to consider replacement cost, damageability or repairability in the design, and the recalibration of sensors after a repair,” he says. Hudd agrees: “This is a key focus for us – the only way forward is to collaborate and work in partnership with vehicle manufacturers, as requirements shift from one carmaker to another, and no single piece of neces‐ sary equipment covers the market. This means bodyshops must invest in expen‐ sive, highly specialised equipment – and with rapidly changing technology, who knows how long its life will be.”
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FEATURE Accident Repair
Hybrid and electric education
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McDonald points out that ADAS is only one driver of fast rising vehicle repair costs around the world. “Headlamps are a good example of how technology in lu‐ ences parts prices,” he states. “In the not too distant past, the average halogen headlamp for popular cars could be bought for US$200 – $400. Today, head‐ lamps can be Bi‐Xenon, include daytime running lamps, or have LED or even computer driven Laser elements for cornering or automated dimming. It’s not uncommon for popular car headlamp replacement to now cost US$1,000 – $2,000 each – with many costing over $4,000.”
“It’s not uncommon for replacement popular car headlamp replacement to now cost US$1,000 – $2,000 each – with many costing over $4,000.”
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With battery‐electric and hybrid car sales growing around the world – a trend likely to accelerate in more sensitive markets as leets and consumers turn away from diesel engines over pollution issues – these technologies are also currently challenging the vehicle body repair indus‐ try. “Training for technicians is still being developed, so it can keep pace with tech‐ nical advances in vehicle design and construction,” says Thatcham’s Hudd. “Technicians must know how to deal with the technical architecture of high voltage and hybrid systems. This is ever more urgent – over the next 12 to 18 months they will increasingly need to recalibrate electric batteries, and repair such systems safely and effectively.” Electric, hybrid or conventionally powered, increased use of new, more advanced materials in vehicle construc‐ tion is a much less visible force driving rising costs – with its own new strings attached. “Modern cars need to be stronger for safety, and lighter for energy and emissions ef iciency, demanding more sophisticated materials in their construction – such as aluminium and magnesium alloys, composites and high strength steels,” says McDonald. “These can’t be repaired as easily as materials used even in the recent past – and in some cases they can’t be repaired at all.
Complexity of materials, and expense of components, will mean collision damage that was quite economical to repair just a few years ago could result in the vehicle being declared a total loss, and broken up to gather reusable parts.” Despite international concerns over occupant injury risks bringing pressure to improve vehicle safety, in some regions new cars are still being sold with safety standards far below those of more demanding markets. Representing members researching repair techniques in 20 countries across the globe, McDon‐ ald is acutely aware of the effect on repairability where lower standards are applied to vehicle structures, safety systems and technology – often for cost saving reasons. “The impact of technol‐ ogy‐driven increased repair costs is actu‐ ally sometimes worse in markets such as Asia and South America,” he says. “Often cars in these markets have the same repair complexity requirements – if they are repaired correctly – though collision‐ reducing technology is often removed. I say ‘if they are repaired correctly’ because in many emerging markets, modern cars are repaired using tradi‐ tional methods that are inappropriate – or simply unsafe. Cars built in these regions may also have damage‐reducing bumper reinforcements removed, so they suffer more structural damage in front‐ to‐rear collisions – a concern for both safety and repair cost.
Today’s cars feature an array of different materials in their construction, including aluminum and magnesium alloys, high strength steels and composites.
Body of work Dealing with all these issues – and the associated damage assessment, repair, replacement and calibration techniques, demands a widening range of skills from those involved in the work – tailored to the region where the vehicle is used. The IMI is the world’s only automotive profes‐ sional association and quali ications provider, with international membership across 80 countries, which works to ensure operatives have the necessary professional expertise. Its chief executive, Steve Nash, underlines an often‐forgotten link between body repair skills, quality of work, and repaired vehicle safety: “Its absolutely essential for those working on collision repairs to be well trained and properly quali ied,” he says. “Consumer and businesses alike need operatives
with the skills to deliver repairs to a high standard – meeting all safety regulations.” As the body repair industry tackles rising costs, and seeks to recruit more quali ied operatives to ill a long‐term global shortage, another trend will raise cost and availability concerns for leet operators. Specialisation could reduce the number of bodyshops offering a full range of major repairs on future high tech cars. “It’s inevitable that bodyshops will need to specialise in both vehicle and repair types, improve training – and invest in new equipment – if they are to survive a future with reduced repair numbers and higher repair costs,” says McDonald. “Such specialisation will drive ef iciency, and help justify the purchase of equip‐ ment, and training of staff. The industry is going through the same technological
REPAIRS IN NUMBERS...
Products and services segmentation (2017) Products and services segmentation (2017) 1.7%
Average 700 cost to replace a windscreen increases with ADAS fitment 700600
£160
600500
1.7% 1.6%
Body repair services Painting services
11.6%
Glass replacement and repair 20.7%
Emerging technologies are costly Average costtechnologies to replace a windscreen Emerging are increases costly with ADAS fitment
59.7%
Merchandise sales
£160
COST £ COST £
3.0%
Upholstery and interior repair Other Services
£160
500400
£160
400300 300200 200100 100
£160
£464 £382 £464
£382
Detailing services and body conversions
advances as many others, so its inevitable that collision repair costs will continue rising. But new technology should also reduce collision numbers – hopefully at a similar or greater rate.” Nash, meanwhile, points out the body repair industry’s heavy reliance on people. “Bodyshop repairers, techni‐ cians and painters frequently undertake the largest, most complicated repairs possible – on highly sophisticated modern cars,” he says. “Yet pay rates are often amongst the industry’s lowest – largely dictated by price constraints placed on repairers by insurance companies. Insurers and drivers must come to terms with the fact that repair costs may need to rise – so the sector can continue to recruit, train and retain suitably skilled individuals.”
£212 £212
0
BMW BMW 0 7 Series 7 Series BMW BMW (without) 7 Series 7 Series (without) Without ADAS Without ADAS
£313 £313
Ford Ford Focus Focus Ford Ford (without) Focus Focus (without) With ADAS With ADAS
£160 £206 £206 £206
£206
VW Golf VW (without) Golf VW Golf VW (without) Golf Estimated Caibration Estimated Caibration
Hope for the future... Though technology is driving up car repair costs today – it could reduce fleet insurance costs tomorrow. Insurance Europe, the regional insurers association, says modern vehicles produce increasing amounts of data, which could allow insurers to develop new costing methods for motor insurance services. Development of ‘connected cars,’ as intelligent transport systems expand and vehicles incorporate more automation, could provide a useful data stream for external service providers when coupled into telematics systems delivering fleet management and vehicle tracking information. Such linked technology could see expansion of usage-based, ‘pay-as-you-drive’ or ‘pay-how-you-drive’ insurance premiums, by monitoring driver behaviour and using specific information to accurately assess individual driver risk. This might cover factors like driving habits, vehicle condition, or geographic operating range. Risks might even be decided by the hour, bringing the possibility of daily fleet insurance premiums. Data advancements made possible through better connected cars will have an increasing impact on motor insurance, and hopefully allow insurers to reduce premiums and claims. Subject to suitable data protection rules, examples here might include provision of driver behaviour feedback, aimed at reducing long term collision risks – and allowing insurers to progress incident claims more quickly, by accurately analysing pre-collision data.
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FLEET FOCUS Mexico
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Photo: Ulrike Stein/Shutterstock.com
Will Mexicans wave goodbye to traditional vehicle ownership? Alfredo Hernandez, country director for Autorola Mexico reveals how the new and used car markets continue to grow amid changing car procurement trends.
T
he Mexican new car market reached an all‐time high in 2016 at 1.6 million units and with a fair wind behind it could match this igure again in 2017. There are some car makers that believe the new car market has further to go and could hit two million in the future fuelled by a continually growing economy and low in lation. Nissan, GM and Volkswagen are the dominant players in the new car market, which has generally remained stable during 2017 based on a better than expected economic performance in the irst six months this year. Even the two strong earthquakes experienced in September – which the
country is still dealing with – haven’t impacted the markets showing that the country is being more resilient than in previous years. Despite President Donald Trump’s threats to introduce trading sanctions, the country exported 1.16 million vehi‐ cles to the US in the irst half of 2017, according to the Mexican Automobile Industry Association. BMW contin‐ ues with its plans to open a new car factory in Mexico in 2019 that will build the 3 Series and feed demand in north America while Ford announced plans to scrap its $1.6 billion investment in a car plant in Mexico.
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FLEET FOCUS Mexico
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CHANGING LANDSCAPE Car ownership is changing in Mexico with the 35‐70‐year‐old age group keen to buy their cars, keep them for ive to 10 years and then buy another car. This trend has been further aided by more auto loans being made available to consumers. They may sell their car through a website to another consumer or they may source their next car online, but still they are nervous about completing the entire car transaction online. This apathy has meant that there has been very little to no growth in personal leasing in Mexico, which has proved popu‐ lar in so many countries around the world. For many car makers, personal leasing has contributed to a growth in car sales across the globe but not in Mexico. The market is quite traditional; drivers still like to see the whites of the owner’s eyes during the used car transaction. They also like to kick the tyres and give the car a once over before they commit to buy, which is why few consumers will commit to buying a big‐ticket purchase online without irst seeing the car. That’s what has kept physical auctions popular with consumer buyers. That compares with the B2B market where Autorola is help‐ ing many car makers sell their ex‐management and ex‐rental cars directly online to their dealers via its online portal. This adoption of the online buying and selling process has been based on the understanding that buyer trust can be achieved with accurate vehicle descriptions supported by images. Buyers know if there is a problem it will be sorted quickly and that buyer funds automatically go into an escrow fund and
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are only released to the vendor once they have taken delivery of and are happy with the car. Car makers are now approach‐ ing us to understand how we can roll out online auctions for their dealers. Autorola has started to in luence the market and change buying and selling trends in the 18 months it set up its Mexican subsidiary. Meanwhile the younger members of society in their early 20s are choosing to utilise the growing number of car share services, such as Uber and Camplify, that have sprung up, particularly in Mexico City in the past 12‐18 months. The younger generation seem to like the lexibility of being able to call up a car as and when they need to make a journey rather than automati‐ cally aspire to owning a car. There are even more tailored car share services, for instance one that is run by women for women passengers, such is the demand for mobility services. No‐one quite knows how many used cars there are in Mexico owned by the 110 million population, guesstimates range from 30‐45 million. The Mexican Automobile Distribu‐ tors’ Association has reported that used car imports continue to fall to less than 200,000 in 2015 compared with 1.6 million used car imports 10 years earlier. And while a used car industry continues to grow and buy and sell Mexican cars, so the entire automotive industry is more capable of standing on its own two feet. The entire Mexi‐ can market has not stopped changing for sure, with Autorola’s range of online inspection and auction services continuing to support those changes and helping to keep increasing the professionalism of the used car industry.
Source: FocusEconomics
Mexican economics T
he Mexican economy’s better‐than‐expected perfor‐ mance in H1 was due to resilient household consump‐ tion and renewed momentum in the manufacturing sector. However, leading data suggests some of the tailwinds that boosted growth in H1 faded in Q3. Although August’s trade report and PMI indicators for the July‐to‐September period still paint a bright picture of the manufacturing sector, data for consumption suggests the long‐touted moderation in private spending may have inally arrived. Retail sales barely expanded for a second consecutive month in July, while auto sales continued to contract through August, reaf irming the narrative that multi‐year high in lation is dent‐ ing households’ real income growth despite a tight labour market and robust remittance in lows. Q3 growth will also re lect the economic impact of the two earthquakes that devas‐ tated Mexico in September, although reconstruction efforts are expected to shore up economic activity in the quarters to come. The economic outlook remains clouded by uncertainty linked to the renegotiation of NAFTA and the elections sched‐ uled in Mexico for next July. While resilient in H1, GDP growth should moderate in H2 due to the immediate effects of the earthquake on economic activity and slower private consump‐ tion growth. Our panel expects growth of
2.2% in 2017. Next year, the economy is expected to bene it from stronger government consumption ahead of the election and softer in lation. FocusEconomics Panelists see GDP growth at 2.3% in 2018, which is up 0.1 percentage points from last month’s forecast. Remittances totalled US$2.3 billion in September, a 1% drop from the same month last year, contrasting the 9.3% year‐on‐ year increase recorded in August. The 12‐month trailing sum of remittances reached a total of US$28.2 billion in September. This represented a 7.5% increase compared to the same period last year, which was below the 9% expansion in the 12 months up to August. September’s decline was likely due to the natural disasters that hit Mexico and the US in September. Remittance in lows have underpinned household consump‐ tion so far this year, contrasting the effects of rising in lation‐ ary pressures and weakening credit growth. The good shape of the labour market in the US has pushed wages up, which has translated into stronger remittance lows despite fears of a crackdown on immigration in the Northern neighbour. Notwithstanding the risk of tougher measures against Mexican immigrants in the US, analysts continue to expect remittances to increase further this year and to reach US$29.9 billion by the end of 2018. For 2019, the panel sees remittances rising to US$31.1 billion.
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PROFILE MINI
Not normal... Introduced in 1959, the original Mini is regarded as being one of the most influential cars of the 20th century. The BMW Group acquired Rover Group in 1994, yet retained the MINI brand after the Rover Group collapse of 2000. Keeping the brand alive, just a year later in 2001, the BMW Group launched the contemporary first new MINI.
“MINI continues to demonstrate solid growth around the world.� Peter Schwarzenbauer, Member of the BMW AG Board of Management responsible for MINI
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Manufacturer MINI Total sales 2016 360,233 Headquarters BMW Group, München Global market share 2016 0.518% No. of models 4
view
from the top
Exceptional growth…
B
MW Group now regards MINI as a “cult urban brand” and, in December 2016, Plant Oxford celebrated the three millionth MINI to roll off the assembly line since 2001. 2016 also proved a pivotal year for the brand, setting a new sales volume record with a total of of 360,233 units sold. Between 2015 and 2016, the MINI brand witnessed above average growth compared to the global market. Europe and Asia (including Mainland China) saw 10.6% and 107% sales increases, while Mainland China alone increased by 10.6%. Latin America witnessed the highest individual growth for the brand, selling 9,306 units compared to 2015’s 3,658 – an improvement of 154.4%. However, the Americas saw a decrease in sales, from 74,749 in 2015 to 68,272 in 2016 – a reduction of ‐8.7%. Positive contributions to this performance came from the new Convertible (29,758 units; 2015: 14,145 units) and the new Clubman (63,509 units; 2015: 8,003 units). However, with 198,373 units sold, the MINI Hatch 3‐ and 5‐door models fell short of the previous year’s high level (2015: 221,982 units; – 10.6 %). In the irst quarter of 2017, sales of MINI brand vehicles continued to climb, achieving increases in January (3.7%), February (3.2%) and March – the latter providing the company’s best ever result, with an increase of 8.7% compared with the same month in 2016. April continued the same trend, with a 3.6% global increase in sales, followed by 4.2% in May and 3.0% in June. “MINI continues to demonstrate solid growth around the world,” said Peter Schwarzenbauer, Member of the BMW AG Board of Management responsible for MINI. “The MINI Clubman in particular has shown strong growth of over 21% in the irst quarter, proving that its perfect blend of everyday usability and MINI‐typical emotional characteristics is exactly what our customers want,” he continued. “With the new MINI Countryman we’ve just recently brought to market, I’m sure the momentum we’re seeing at MINI will continue through the year,” he added. After the irst half of 2017, MINI sales slowed a little but managed an increase of 0.7% in August and a 3.1% year‐on‐year rise, with the Countryman serving as the main growth driver. Likewise, demand in September picked up to 2.8% thanks in part to 2,700 plug‐in hybrid sales – accounting for one in 10 Countryman. Year‐to‐date igures released in November showed global deliveries of MINI in the irst 10 months topped 300,000 for the irst time ever by this point in the year, an increase of 2.5%. With a sales increase of 19.3% and 64,339 units delivered so far in 2017, the MINI Countryman has quickly become the brand’s bestseller, possi‐ bly an indicator of both public and leet interest in electri ication and the trend preference for crossover vehicles. Sales of the plug‐in hybrid MINI Cooper S E Countryman ALL4 model also aided the BMW Group overall, boosting its electri ied vehicles sales by 63.7% compared to last year – on course for the Group’s target of 100,000 electri ied vehicle sales.
MINI Global sales, by market Territory
2015
2016
% change
Europe
189,132
209,332
+10.6
Americas
74,749
68,272
-8.7
Asia inc. China
67,676
74,933
+10.7
(Mainland China only)
30,886
34,169
+10.6
Latin America
3,658
9,306
+154.4
338,466
360,233
+6.4
Total
Steve Roberts, head of corporate and used cars, MINI UK How are MINI fleet sales so far in 2017? For the UK, fairly consistent with 2016 being our best ever year in the leet market. Whilst the leet market remains challenging, with overall volumes declining, MINI continues to hold its market share. Has the downturn in the UK market affected MINI, considering the UK is its second largest market? MINI sales have been broadly resilient against the backdrop of the UK market in 2017. We expect to deliver the second best UK sales result since the formation of the MINI brand at BMW Group in 2001. 2017 has seen the first MINI PHEV launch and Electric concept reveal. How do you see electrification affecting fleet sales? We believe that combustion engines – petrol or diesel – will still be around for many years. The share that can be attained by electro‐mobility varies in forecasts, depending on the market and how framework and legislative condi‐ tions develop. However, the combustion engine will still be the dominant tech‐ nology worldwide for years to come. The segments in which we compete and the vehicles we offer to the market are in high demand among customers in urban areas. These are the same leet and retail customers considering an electri‐ ied vehicle for their next purchase. The MINI Countryman PHEV has certainly created a lot of interest. Our corporate demonstrators have had a lot of use and we are quoting 2018 delivery dates after selling out of 2017 UK alloca‐ tion in late Q3. We see many customers taking a different view on how they use their leet vehicles, rather than just look‐ ing at government legislation, which helps prove that electri ication does make sense. Speaking to our leet and corporate customers at this early stage, we antic‐ ipate strong demand for [the MINI E] when it does come to market.
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Where
Manufacturing plant locations
are they made?
5 4 1 2 3 6
7
8
Europe
FIN fleet in numbers
5,387,862 Original Minis built.
109
Countries you can buy a MINI.
1.75 Billion GBP B invested BP inves e te t d in MINI UK by BM B BMW W Gro Group. r up u . 34 / internationalfleetworld.com
1
Hatch, Convertible, Clubman, John Cooper Works – BMW Group Plant Oxford, UK
2
Countryman – Magna Steyr Fahrzeugtechnik, Graz, Austria
3
Hatch, Countryman PHEV – VDL Nedcar, Born, the Netherlands
4
Engines – BMW Group Plant Hams Hall, UK
5
Panels – BMW Group Plant Swindon, UK
6
Components – BMW Group Plant Landshut, Germany
7 8
Asia Countryman – BMW Group Plant Chennai, India Countryman – BMW Group Plant Rayong, Thailand
Beyond 2017... As a part of the BMW Group’s centenary celebrations in 2016, the MINI Vision Next 100 was revealed showcasing MINI’s answer to several key questions concerning urban mobility expected to arrive over the coming years, including a strong focus on electri ication, anti‐ownership and car‐sharing. These ideals are being applied to the company's present and near‐future, with the con irmation that MINI will produce a new, fully‐electric car as one of a series of electri‐ ied models to be launched by the BMW and MINI brands between now and 2025. The battery‐electric MINI has been con irmed as being a variant of the brand's core 3‐door Hatch model. The car is slated for production in 2019, increasing the choice of MINI powertrains to include petrol and diesel internal combustion engines, a plug‐in hybrid and a battery electric vehicle. The battery‐electric MINI’s drivetrain will be built at the BMW Group’s e‐mobility centre at Plants Dingol ing and Landshut, in Bavaria, before being integrated into the car at Plant Oxford, which is the main production location for the MINI 3‐door Hatch. Oliver Zipse, BMW AG Management Board member for production said, “BMW Group Plants Dingol ing and Landshut play a leading role within our global production network as the company’s global competence centre for electric mobility. If required, we can increase production of electric drivetrain motor components quickly and ef i‐ ciently, in line with market developments.” By 2025, the BMW Group expects electri ied vehicles to account for between 15‐25% of sales across the company's electri ied BMW i, iPerformance and MINI electric brands. Today, the only electri ied MINI on sale is the Countryman Plug‐in Hybrid, which is produced by VDL Nedcar in the Netherlands and follows in the footsteps of worldwide large‐scale electric vehicle trials that began in 2008 with the MINI E. In early November 2017, the BMW Group, including MINI, announced its partner‐ ship with Daimler AG, Ford Motor Company and the Volkswagen Group to form the IONITY network of rapid chargers for electric vehicles. The irst 20 charge points serv‐ ing up to 350kW via the CCS standard will appear along European trunk routes by end‐2017, with the network culminating in about 400 charging stations by 2020.
MINI fleet model range
Clubman Variants: 5dr hatch Markets: Global. Fuel: 3.8-7.4l/100km CO2: 99-168g/km
Convertible Variants: Convertible Markets: Global. Fuel: 4.0-6.5l/100km CO2: 105-152g/km
Hatch Variants: 3/5dr hatch Markets: Global. Fuel: 3.7-6.6l/100km CO2: 96-150g/km
Countryman Variants: Crossover Markets: Global. Fuel: 2.1-7.4l/100km CO2: 49-169g/km
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FEATURE Telematics
“The key USP is that drivers using the system can talk to a trained advisor at the push of a button.�
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STAR
ATTRACTION The global rollout of OnStar has changed the way fleet drivers can interact with their vehicles and how managers can extend their duty of care. Curtis Hutchinson asks what's next for the telematics offering
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ven as increasing fitment of new technology such as Advanced Driver Assistance Systems (ADAS) is working to reduce collisions involving newer cars, the cost of repair‐ ing bodywork damage is rising. Insurers are usually amongst the first affected by such increases, so motor premiums naturally follow. But typical end of lease repairs and other bodywork completed without an insurance claim will also soon cost more. Thomas Hudd, Repair Technology Centre operations manager at the UK’s Thatcham insurance research centre sees several key reasons: “The reparability of equipment – and with rapidly changing technology, who knows how long its life will be.” Thousands of companies around the world running GM marques on their leets are reaping the bene its of the OnStar telematics service. The system may date back to the late 1990s but its evolution has accelerated in recent years with the rollout of new generation telematics tech‐ nology and the promise of more to follow. The subscription‐based GPS service had already clocked up seven million users in North America, China, Mexico and South
America before it launched in Europe in November 2015. The global igure is now closer to 13 million users with over 1.5 billion customer interactions logged since it irst debuted in the US in 1996. With the plethora of connected and telematics services available in the auto‐ motive sector, OnStar arguably leads the way in terms of its sheer scope. While the system provides useful in‐car connectiv‐ ity features, such as a Wi‐Fi hotspot, it also boasts many tangible leet‐friendly func‐ tions including vehicle diagnostics (cover‐ ing tyre pressures, oil life and bulb outages), an accident response service and stolen vehicle tracker.
24% of whom are leet users; a igure Vauxhall and Opel expect to grow as the technology is introduced into successive new generation vehicles. "OnStar offers a free leet portal avail‐ able to leet managers who have Vauxhall or Opel vehicles. This portal is able to give increased control over their leet and provide them with vital information on the health of their vehicles enabling them to better manage their leet and save money," says Rebecca Lawman, marketing manager for OnStar Europe. Importantly for Vauxhall and Opel the technology gives both brands the oppor‐ tunity to differentiate themselves in the fiercely competitive fleet market. "OnStar provides an attractive offering when making a decision about which brand to choose from,” believes Lawman. “We currently have a large number of fleets signed up to OnStar accounts in 21 countries across Europe. OnStar can also work with companies to provide a direct data feed with key vehicle information directly in to their own fleet manage‐ ment platform.” A fundamental part of any company’s role is ensuring the safety and security of their drivers, something that Lawman says is achieved with the system she markets. “OnStar is able to support leet managers in providing a duty of care to their drivers through key services such as automatic crash response, which means that in the event of a crash OnStar is there; an advisor will work with the local emer‐ gency services to dispatch help even if the driver is unable to communicate."
Closely connected The key USP, though, is that drivers using the system can talk to a trained advisor at the push of a button, adding a reassuring level of personal interaction. Just two years after its European debut in the UK and Germany, the service has been rolled out to 22 countries with conti‐ nental operations run from Vauxhall’s head of ice in Luton and a contact centre in Bucharest. Its usage is high with 494,000 active subscribers across Europe,
OnStar IN NUMBERS... Service launched in US in 1996 Debuted in Europe in 2015 118,560 fleet users in Europe 13 million global 1.5 billion customer interactions since launch
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FEATURE Telematics
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What’s next for OnStar? Clearly there are some tantalising oppor‐ tunities that could further bene it leet operators and company car drivers around the world. For instance, while OnStar is introduced to new car lines launched by GM’s brands it is not currently available in vans. A rollout to commercial vehicles would create a significant new market for the system and would help boost the connectivity potential of hundreds of
thousands of businesses around the world. There’s also the issue of what happens next with Vauxhall and Opel as both Euro‐ pean brands were sold by GM to PSA in August. This means the OnStar service is now operated in Europe under licence from GM in Detroit. Although the precise details of the licensing agreement are not known, a tantalising prospect could be the future appearance of a Blue OnStar button in Peugeot, Citroen and DS models. Time will tell.
What is OnStar? OnStar uses GPS and cellular technology to provide connectivity and telematics services to cars. The service connects drivers directly with an advisor, providing them with a real‐ life trained personal assistant 24/7. So, if a driver is on the move and either has not had time to key in their destination or does not know the exact address then they can ask for help from the advisor by pushing the OnStar button and having a hands‐free conversa‐ tion. The clever part is the address, once identi ied, is then downloaded into the car’s sat nav system without any driver intervention. An extension of this service is the emergency response noti ication that detects if an airbag has been deployed, which prompts an assistant to call the driver to check if they’re okay and ask if they need assistance. If there is no response then a call is made to the emergency services who are given the car’s precise location. The system also includes roadside assistance services where a call to the OnStar team will ensure users receive help as quickly as possible. Additionally, the technology can be used to track and disable a stolen car. Once the theft is reported to the police and the driver has passed the crime number to OnStar, the vehicle is then tracked and disabled once the ignition is switched off and the police are noti ied of the location. OnStar also offers a comprehensive vehicle diagnostics service particularly useful for leets. Information on fuel economy, tank range, oil life, mileage and tyre pressure is easily accessible, while OnStar can also send a monthly email showing a host of data to help anal‐ yse and monitor costs. A diagnostics check can be requested at any time by drivers at the push of a button, providing peace of mind before setting off on long journeys. The system also provides a Wi‐Fi hotspot, via 4G, for up to seven devices.
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OnStar tested I’ve been testing the OnStar service in a Vauxhall Insignia Tourer. It’s an impressive and engaging piece of technology that can empower drivers by helping resolve all manner of issues from inding the nearest restaurant or hotel in an unfamiliar location, to unlocking the car if you’ve managed to lock yourself out. The system works by way of a blue OnStar button located in the over‐ head centre console. Once activated this puts you in touch, hands‐free and at any time of day, with a friendly personal assistant. There’s also an SOS button for users to request assis‐ tance if, for example, they witness an accident or have broken down. There’s also a geek‐friendly app, which provides real time data on the car’s range and fuel consumption. It also lets you lock and unlock the car. Best of all, though, is the ability to sound the horn and lash the lights if you’ve forgotten where you parked in a busy car park.
Volkswagen T-Roc Volkswagen has big plans for its compact crossover, says Alex Grant. SECTOR Crossover PRICE : €20,390-€32,000 FUEL 5.1-6.7l/100km CO2 117-133g/km
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or Volkswagen, the T‐Roc is a sign of the times. Not the same power level. However, other Group cars with the only because it’s taking the newly‐discontinued same platform suggest the former will be more appealing to Scirocco’s space on the production line in Portugal, but drive, while CO2 emissions of 117g/km are likely to be close also as it’s expected to become one of the brand’s biggest‐ to the as‐yet‐unavailable diesel. The 150hp 1.5 TSI, at selling models, with the potential to outsell fleet stalwarts 5.3l/100km and 121g/km CO2, could make sense for some such as the Passat. Hints of a seemingly unending appetite fleets too. for crossovers. But the 150hp 2.0‐litre TDI offered for early drives bodes Bigger than a Juke, but smaller than a Qashqai, this is a well; it’s lost little of the Golf’s sure‐footedness despite the component of what will be a 19‐model Volkswagen SUV line‐ raised ride height, and that isn’t as a result of heavily‐ up within a few years. In Europe it’s positioned below the sprung suspension to keep body roll in check. All versions Tiguan, which got bigger in its latest generation, but it’s also include a multi‐link rear axle, which deals better with bigger than cars such as the Renault bumpier surfaces than the simpler setup Captur, leaving space for the Polo‐based used on some entry‐level versions of the T‐Cross crossover which is due next year. Golf. Likewise, relatively long wheelbase Platform shared and almost indentical in offers plenty of head and legroom for all size to an Audi Q2 – with which it has the occupants, and the windowline isn’t potential to compete head‐on – it’s a swept up to restrict the view for those threat to the Toyota C‐HR, Honda HR‐V sat in the back; features a coupé can’t and Mini Countryman too. match. Consumers might have fallen out of However, even colour accents, an love for coupés, but the T‐Roc is still optional digital instrument cluster and focused on kerbside appeal. The full the excellent high‐resolution infotain‐ range won’t be available until early next ment system can’t distract from the abun‐ year, but will offer a choice of versions dance of shiny, hard plastics inside. It’s tuned towards bright colours and two‐ not up to Volkswagen’s usual high stan‐ tone paint, or R‐Line with its large wheels dards, nor the price bracket this car is It’s joining, rather than and sportier styling. Volkswagen will positioned in. Even the cheaper Polo feels redefining, a segment, offer a gasoline and diesel engine at more premium than the T‐Roc. but the T-Roc is a safe bet 115hp, 150hp and 190hp, with four‐ Not that it’s likely to dissuade buyers. The wheel drive available on the two more T‐Roc has the Golf’s strong points without for Volkswagen, offering powerful diesels, and the range‐topping its ubiquity, and some of the Scirocco’s badge cachet and a Golfgasoline version. sporty styling without the impracticality of like driving experience in The expected biggest‐seller, the 115hp a coupé. It’s not hard to see why consumer a booming sector. 1.0‐litre TSI, wasn’t available to drive at demand for products like this is showing no the launch, and neither was the 1.6 TDI at sign of slowing down.
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Volkswagen e-Golf A longer range and more power make the electric Golf even easier to live with, explains Alex Grant. SECTOR Lower Medium PRICE €36,000 RANGE 300km CO2 0g/km
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onger ranges, quicker charging, more choice and speeds. Soft ride quality on small wheels, and regenerative better end‐user awareness means swapping to an braking which can be set at three levels, or turned off electric car doesn’t feel like the giant leap it once used completely enabling it to coast at high speed, add up to a to. But ditching the combustion engine rarely feels as normal very comfortable car. as it does in a Volkswagen e‐Golf. Of course, a bigger battery affects charging times. A DC Even after a subtle update, this 100% battery‐powered rapid charger can restore 80% of its range in around 40 Golf is barely distinguishable from its gasoline and diesel minutes, which is a bearable wait on long trips, while counterparts, wearing only an aerodynamic bodykit and domestic charging points can take as little as six hours. A small, hubcap‐like alloy wheels. But behind minor styling cable for a three‐pin socket is included, but as a full charge alterations, the big news is a 50% increase in the energy takes 17 hours it’s really only an emergency backup. Thank‐ capacity of the battery, to 35.8kWh, with a matching uplift in fully, the physical size of the battery hasn’t increased, which range. Volkswagen claims 200km means boot space is still significantly between charges under real‐world condi‐ larger than the plug‐in hybrid Golf GTE – tions – for comparison, that’s 300km a benefit of not having to accommodate a under NEDC testing. battery and a fuel tank. If anything, that seems conservative. The e‐Golf is sold in a single trim‐level, There are three driving modes available, based on a mid‐spec Golf but adding a 9.2‐ and even the mid‐point Eco mode easily inch glass‐fronted navigation system with offers a range of more than 200km at Android Auto, Apple CarPlay, two‐zone highway speeds. Around town, with climate control, a wire‐heated windscreen frequent regenerative braking opportuni‐ and LED lighting. It’s not cheap, but ties and lower loads on the motor, it can consider this as an alternative to a 2.0 TDI go even further. Granted, that’s still short DSG, and factor in local incentives for elec‐ by combustion engine standards, but the tric vehicles, and it starts to make sense. ability to travel 150km between charging The only obvious equipment it’s missing is stops without worrying about range only heated seats, which are more energy‐effi‐ The e-Golf makes elecmakes this feel more normal to live with. cient than a cabin heater in cold weather. tric driving feel almost Range updates are only part of the Unfortunately, it’s also very close to the entirely normal, but it’s story. The new electric motor produces GTE’s pricing, and, as financial incentives 136hp, instead of 115hp, resulting in tend not to differentiate between plug‐in facing a growing list of performance that’s more like a 2.0‐litre hybrid and fully electric vehicles, the alternatives still offering TDI than a 1.6‐litre TDI. This is no perfor‐ sportier version is perhaps this car’s more range, as well as mance car, but it’s quick enough for biggest threat. Even when it feels this the popular GTE hybrid. relaxed overtaking and is incredibly quiet normal, not everyone is ready to ditch – even for an electric vehicle – at high that combustion engine just yet.
what we think
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Skoda Karoq The Yeti’s larger successor has the market’s best crossovers in its sights, explains Alex Grant. SECTOR Crossover PRICE €24,290-€35,000 FUEL 4.4-5.5l/100km CO2 117-138g/km
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Similarly, the two high‐powered engines are hard to koda’s distinctive Yeti was just ahead of the choose between. The 2.0‐litre TDI offers a broad spread of crossover pack when it launched in 2009, and good pulling power and is remarkably quiet, but it’s only offered timing means it’s been useful for finding new with four‐wheel drive and CO2 emissions are higher than the customers. This was the model tasked with taking the 1.5‐litre petrol. Factor in an even wider price gap, and the brand into new markets, with 600,000 sold globally since petrol engine’s ability to run on two cylinders at low loads, and volumes rising each year in line with the growing and there’s a head‐over‐heart case for not choosing diesel demand for crossovers. here too. That might sound like solid foundations for a new one, but The big change, though, is the way it rides. The Karoq the Yeti is actually being discontinued. Its successor, the has one of the most compliant suspension setups in its Karoq, is also a larger car, positioned in the popular and still class, especially with the multi‐link rear axle fitted to four‐ growing Qashqai segment. A sensible move, as it fills an wheel drive versions, and feels like a important gap in Skoda’s range, particu‐ real step up compared to the Yeti. larly for fleets, while leaving space for a Thankfully, it hasn’t abandoned the best Fabia‐based crossover in future. bits of its predecessor in the process, Competition is plentiful, but the closest including a rear bench that not only rival comes from within the Volkswagen folds flat but lifts out in three sections to Group. The Karoq is platform‐shared extend the load capacity. It’s a clever with the Ateca; the two cars share a feature, and unique in this class, but the production line in the Czech Republic. seat sections are heavy and cumber‐ That bodes well but, with near‐identical some to lift out and it’s not standard on dimensions, engine options and very all trim levels. similar body pressings, it’s mainly Skoda is already growing its fleet pres‐ personal preference that separates them. ence across Europe, the latest Superb Skoda’s engine offer is slightly different; bolstering the Octavia as a hard‐to‐argue‐ this launches with two petrol and two with pair of options for job‐need and diesel engines, at equivalent 115hp and Comfortable, clever and user‐chooser drivers. The Karoq is 150hp power outputs, and all are available with petrol and diesel launching with similar ambitions; busi‐ with a DSG transmission. Although the options for fleets, Karoq is ness trim levels offering essentials such 1.6‐litre diesel is likely to find the most as navigation, Android and Apple smart‐ favour with fleets, it’s worth noting that a latecomer to a crowded phone mirroring, and the option to retain the 1.0‐litre petrol offers identical CO2 segment, but it’s also one the smaller wheels to keep CO2 low. emissions and a four‐figure price advan‐ of the best in its class. And Bigfoot left some big shoes to fill, but this tage, which may suit low‐mileage drivers. that’s saying something. should have no problem building on its It’s also livelier to drive, and lacks the predecessor’s solid foundations. diesel’s high‐pitched whirr under load.
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EV charging
European superpowers Craig Thomas looks at plans by car manufacturers to collaborate on a pan-European EV charging network.
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ull details of a pan‐European high‐ powered EV charging network – a joint venture involving four carmak‐ ers – have just been announced, making clear the scale of the changes facing the automotive industry in adapting to an electric future. The Ionity network plans to open 20 stations by the end of 2017, another 80 during 2018 and 400 by 2020, which constitutes an €80 million investment in total. The BMW Group, Daimler AG, Ford Motor Company and the Volkswagen Group (which numbers Audi and Porsche among its brands) are collaborating on the joint venture, which will prepare the ground for a raft of electric vehicle launches in the next decade. Based in Munich, Germany, the joint venture is headed by CEO Michael Hajesch leading a team with a projected headcount of 50 by the start of 2018. Charging ahead Europe currently has just under 80,000 public charging stations for electric cars, but according to the International Energy Agency, at the end of 2016 there were only about 5,800 European fast charging stations, which operate at a rate of 43kW or above. The Ionity charge points, however, will each have a power of 350kW, placing 42 / internationalfleetworld.com
them among the fastest high‐powered chargers (HPCs) available to the public to date. The network will use the Combined Charging System (CCS) Euro‐ pean standard in an attempt to signifi‐ cantly reduce charging times compared to existing systems. For example, Tesla’s Superchargers have a rating of 120kW, taking 30 minutes to supply cars with around 170 miles of driving. In contrast, the Ionity chargers will be almost three times faster, but Tesla CEO Elon Musk has already suggested that he has ambi‐ tions to improve on that, describing the 350kW chargers as a “children’s toy” in a post on Twitter. Either way, a charging arms race will only benefit users of electric vehicles as the number of models on‐sale promises to increase dramatically from the end of the decade. Premium brands such as Volvo, Porsche, Audi and BMW all have all‐new EVs slated for launch by the end of the decade, while Daimler CEO Dieter Zetsche expects electric vehicles to comprise 15‐25% of Mercedes‐Benz sales by 2025. Ionity’s brand‐agnostic approach and Europe‐wide coverage is designed to help make electrified vehi‐ cles more appealing to consumers by eliminating the range anxiety that is currently acting as a barrier to uptake.
Mission statement from Stuttgart One of the new models that will be able to take advantage of the new network is the Porsche Mission E. The brand is playing an active role in Ionity, in preparation for the launch of the car, with Oliver Blume, chair‐ man of Porsche’s executive board saying: “The launch of Ionity represents a break‐ through in the move towards a comprehen‐ sive rapid charging infrastructure in Europe. “Creating a functioning charging infras‐ tructure is necessary for ensuring electro‐ mobility is accepted and further expanded. With the rapid charging network from Ionity, we are ensuring that our customers can use electric cars on long journeys with‐ out compromising on convenience. These high‐charging stations are capable of charg‐ ing our Mission E to 80% in just 15 minutes – equivalent to a range of 400km,” he adds. Officially launching the company, Hajesh said: “The first pan‐European HPC network plays an essential role in establishing a market for electric vehicles. Ionity will deliver our common goal of providing customers with fast charging and digital payment capability, to facilitate long‐ distance travel.” Initially located on major roads in Germany, Norway and Austria, at 120km intervals and situated at Tank & Rast, Circle K and OMV service stations, the nascent network will expand to other European countries over the next three years. Ionity also says that, in principle, it would welcome other manufacturers to its ranks. As General Motors, Fiat‐Chrysler, Tesla, Hyundai and Toyota all support the CCS standard, any or all of them could potentially jump onboard the HPC juggernaut that might be trundling along at the moment, but which – if the carmakers backing Ionity are right – is set to accelerate in the next decade.
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