International Fleet World January – February 2012

JANUARY > FEBRUARY 2012

internationalfleetworld.com

INTERNATIONAL

FLEETW RLD Essential Business Information for International Fleet Decision Makers

Who said efficiency can’t be exciting?

The All New

The All New Style meets practicality As Hyundai’s first D-segment vehicle to be developed specifically for the European market, the i40 fits perfectly with the company’s new brand slogan ‘New Thinking. New Possibilities.’

Not only does the i40 offer a package of powertrains, equipment and technology tailored for European tastes but by taking a new approach to the medium family car market, Hyundai has created a new model that sets new standards.

The i40 carves out a bold new identity of its own by embodying Hyundai’s new concept of ‘modern premium’ – the philosophy that premium quality and characteristics should be accessible to everyone. This is reflected in everything from design and performance to practicality and technology features.

To emphasise the company’s unique approach to the market, Hyundai has taken the initiative to launch the Tourer model first.

Designed and engineered at Hyundai’s R&D headquarters in Rüsselsheim, Germany, the i40 is the latest embodiment of Hyundai’s ‘fluidic sculpture’ design language that has been the inspiration for award-winning models such as the ix35 and ix20. Signature features seen on these cars such as the

hexagonal grille and the flowing lines inspired by nature are a key element of the i40 design along with details such as the jewel-like headlamps and wing-shaped fog lights, giving a contemporary, confident look.

This is complemented by an interior that has been conceived for a sculpted appearance and optimized ergonomics whilst still offering enhanced versatility and cargo capacity.

Thanks to its generous wheelbase (2770 mm) and overall width (1815 mm), the i40 Tourer offers impressive cabin space. Front seat occupants benefit from best-in-class dimensions for head (1025 mm), leg (1170 mm) and shoulder room (1455 mm). Rear seat passengers also gain from rear headroom and the unique bonus of reclining seats while an optional three-piece, full-width panoramic glass sunroof helps to further enhance the spaciousness and premium feel of the model.

Cargo capacity sets new ground, with figures ranging from 553 litres, up to 1719 litres with the rear seats folded down. The i40 Tourer also facilitates loading and unloading with the lowest floor level in the D-segment – just 592 mm from the ground.

Stunning i40 Sedan marks the next step of the i40’s introduction to the European market.

For more information on the full range of Hyundai models and services visit www.hyundai-fleet.eu

JANUARY > FEBRUARY 2012

DIARY DATE internationalfleetworld.com

18/4/2012

INTERNATIONAL

Visit evfleetshow.co.uk for more information and to register for the event

FLEETW RLD driving towards lower fleet emissions

Essential Business Information for International Fleet Decision Makers

Reaping the dividends How Ford’s fleet strategy has allowed it to create truly global vehicles

inside SWOT Suzuki SX4

On show LA & Tokyo reviews

Off balance Lease accounting rules

SIMPLY CLEVER

Going green Without cutting corners.

ŠKODA Superb GreenLine. A decision made today can sometimes influence the future. While a Fleet Manager is obviously concerned with lower running costs, the drivers are equally keen on safety, space, reliability, comfort and performance and do not want to make compromises. As a Fleet customer who shares our vision for a sustainable environment, we offer you the ŠKODA Greenline range. Thanks to improved aerodynamics, optimized rolling resistance, Start-Stop system and energy recovery functionality, these eco friendly versions of our regular models offer much lower fuel consumption, and hence lower TCO. Lesser emissions also mean a favourable carbon footprint for your company, thus preserving the future for next generations. Your fleet choice of ŠKODA Superb GreenLine will fully match your company‘s high standards. The ŠKODA GreenLine range does not fail to impress anyone. So whether you need just a few vehicles or a comprehensive fleet solution, do contact us. How about today? www.skoda-auto.com/fleet

Combined fuel consumption and CO2 emissions for the Superb Combi model: 4.4 l/100 km, 114 g/km

DIARY DATE

JANUARY > FEBRUARY 2012

internationalfleetworld.com

INTERNATIONAL

18/4/2012 Visit evfleetshow.co.uk for more information and to register for the event

FLEETW RLD driving towards lower fleet emissions

Essential Business Information for International Fleet Decision Makers

Reaping the dividends

INTERNATIONAL

FLEETW RLD internationalfleetworld.com

How Ford’s fleet strategy has allowed it to create truly global vehicles

inside SWOT Suzuki SX4

On show LA & Tokyo reviews

Off balance Lease accounting rules

Publisher Ross Durkin ross@fleetworldgroup.co.uk Editor John Kendall john@fleetworldgroup.co.uk Deputy Editor Natalie Wallis natalie@fleetworldgroup.co.uk Motoring Editor Alex Grant alex@fleetworldgroup.co.uk Sales Director Anne Dopson anne@fleetworldgroup.co.uk Sales Executive Darren Brett darren@fleetworldgroup.co.uk Circulation Manager Tracy Howell tracy@fleetworldgroup.co.uk Production Manager Luke Wikner luke@fleetworldgroup.co.uk Designers Tina Ries tina@fleetworldgroup.co.uk Samantha Hargreaves sam@fleetworldgroup.co.uk Internet Editor Luke Durkin durks@fleetworldgroup.co.uk

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 fleetworldgroup.co.uk

STAG Publications

VIEWPOINT

CONTENTS

Welcome to our first edition of International Fleet World for 2012. It marks the start of a new phase for the magazine as we increase the frequency to 10 issues per year. I am taking over the reins from Natalie Wallis who is on maternity leave and gave birth to Harry in late January. I’m sure you would all join me in congratulating Natalie on the addition to her family. I would also like to thank her for all the work she has done in building up IFW over the past few years.

To give you some background on me, I have been editing International Fleet World’s sister title VAN Fleet World since 2005 and my background in automotive journalism stretches back to 1990, while I spent a short period in automotive consultancy before that.

We’re keen to develop International Fleet World further, so please don’t hesitate to contact me if you have feedback on what we are doing, or have ideas for subjects you would like to see covered in these pages.

From the final end-of-year registration figures, we have a pretty good picture of what is happening in the major trading areas. Car sales in China have slowed; India is showing strong growth in car and commercial vehicles, Japan has suffered because of the natural disasters this year, which have had far reaching impacts for the Japanese. For the US, car sales are showing growth, but held back by the economy, while truck sales appear to be doing well. In Europe, the car market is still declining, while commercial vehicles have shown strong growth this year.

If we take CV sales as an economic barometer, it seems that recovery from the 2008 crisis is established around the globe, with understandable nervousness in Europe. That suggests that forecasts of further recovery for 2012 seem reasonable, but questions over the European economy could have an impact there.

In this issue, we’re taking a look at the US market and also profiling Ford, which seems to be in good shape after a period of re-structuring. Is Ford’s ‘One Ford’ a blueprint for other US rivals?

04 News Analysis 10 The Environment Looking at trends in alternative fuels.

12 EV sales Why EVs are here to stay...

14 On show...

Los Angeles and Tokyo Show reports.

18 EV & Low CO2 Fleet Show 2012 Fleet World’s event in April at Silverstone.

20 Interview Liam Donnelly, Head of IBO at Arval.

22 2012 Fleet Calendar What’s in the IFW calendar for 2012...

24 Fleet Focus: USA How will the US market shape up in 2012?

27 Fleet Strategy European residual value confidence.

28 Off Balance Analysing current lease accounting rules.

31 Industry Analysis Where new technology is taking the car.

32 Operator Profile: RYDER 34 Fleet Profile: FORD 41 Launch Report Kia Optima/Honda Civic/Nissan NV400.

46 S.W.O.T. Suzuki SX4 48 Fleet in figures

12 20 34 42

®

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

John Kendall Editor

IFW January > February 2012

03

news analysis

Global new vehicle sales predicted to rise 6.7% in 2012 Worldwide new vehicle sales in 2012 are expected to rise 6.7 percent over 2011 volumes to 77.7 million vehicles, according to global automotive market intelligence firm Polk. The firm believes that growth will come from all regions except Europe. China is expected to see the largest increase with a 16% rise over 2011 – according to Polk’s analysts much of this growth is to occur outside of the large metropolitan cities of Shanghai and Beijing.

Growth in the other BRIC countries will outpace many mature markets over the next few years. Polk explains that it expects Brazil to surpass Germany as 2011 sales results are finalised, and new vehicle sales in India are expected to surpass those sold in Germany in 2014. Sales growth in Russia will likely be flat in 2012, however, Polk anticipates sales in Russia to outpace Germany by the year 2015.

Growth in the US market is anticipated to be single digit, primarily due to the relatively strong year for sales in 2011 and the effects of the weak economy that will continue to impact new vehicle demand through most of 2012.

Light vehicle sales are expected to grow at a moderate pace, with a 7.3 percent increase in the region this year, to 13.7 million vehicles, according to Polk analysts, but they do not expect the U.S. market to achieve pre-recession levels of greater than 16 million vehicles per year until 2015.

European sales are expected to be flat or down slightly, to just over 19 million units, with the austerity plans in place preventing governments from boosting car sales through scrappage schemes and other incentives.

ARI snaps up UK’s Fleet Support Group American-based Automotive Resources International (ARI) announces that it is to acquire Fleet Support Group, the largest UK-based fleet management company.

FSG was founded in 1987 and provides fleet management services to over 55,000 cars and trucks throughout Great Britain and Northern Ireland.

According to ARI President Carl Ortell, ”This acquisition is another vital step as we continue to expand the scope of our services and our geographical reach. Everyone at ARI is extremely excited about FSG joining our family of companies and about the opportunities that lie ahead of us in the European market.”

Mr Ortell noted: ”We have many North American clients where our unique ability to deliver customised solutions has provided exceptional results and we believe this acquisition will provide us even more flexibility with our global clients and prospects.”

Another attraction of FSG for ARI is its online RiskMaster programme, said to be the most complete occupational road risk management solution on the UK market.

As per the official announcement, there will be no change in the FSG’s management structure or staff positions as a result of the acquisition. FSG chairman Geoffrey Bray commented that both organisations will ”partner with their customers to create solutions that enables a fleet to perform at peak efficiency.”

He added: ”Existing FSG and ARI customers will benefit from the expertise, skills and range of services that we each provide.

Both organisations already offer turnkey solutions for public and private sector fleets. Added value for our customers will be achieved through the synergies of our affiliation with ARI.” FSG UK clients include Balfour Beatty Utility Solutions, NATS Ltd (formerly National Air Traffic Services Ltd.), Network Rail, RWE, npower, Travis Perkins, Warburtons and WHSmith.

Alphabet International announces new management line-up Following its acquisition of ING Car Lease, Alphabet International has revealed the structure for its top management. The company has previously revealed that it will be led by two CEOs, Norbert van den Eijnden and Ed Frederiks, with the dual CEO structure being in line with German regulations for financial institutions, which require the segregation of front and back office.

From l to r below, Mr Van den Eijnden, who joined Alphabet in 2009 as the company’s new CEO, will head up the back office while co-CEO Mr Frederiks, formerly CEO of ING Car Lease, will manage the front office. Ed Frederiks will work closely with Christian Steiner, head of mobility services at Alphabet, as well as Eric Lelarge and Dr

04

internationalfleetworld.com

Nancy Storp. Eric Lelarge headed the Sales and Marketing department of the ING Car Lease Group in the Netherlands before being made head of international sales at Alphabet. Nancy Storp, from Alphabet’s International Sales and Marketing unit has been named head of marketing and business development.

Mr Van den Eijnden will be supported by Eberhard Schrempf, who remains chief financial officer at both Alphabet International and Alphabet Germany, as well as Jules Blijde from ING Car Lease who has been nominated chief operating officer, and Menno Boekestijn, the former chief financial and risk officer at Athlon Car Lease who becomes chief risk officer.

for the latest news, visit internationalfleetworld.com

New Ford Fusion shows future Mondeo

in brief...

Maggiore signs deal with Alitalia Maggiore, the Italian franchise partner for National Car Rental, has signed a five-year deal to become Alitalia’s exclusive car hire partner.

The MilleMiglia (Thousand Miles) Programme will offer Alitalia customers to a range of special offers and promotions both locally and globally through the National Car Rental international network.

Ford has revealed its all-new Fusion mid-sized car at the Detroit Auto Show, which will be sold worldwide as the Mondeo when it launches in the first quarter of 2013.

Looking similar to the Evos concept car unveiled at the Frankfurt Auto Show in September, the Fusion features Ford’s latest family styling and goes on sale in North America later this year. Engine options in its launch market will include 1.6 and 2.0-litre EcoBoost petrol engines, as well as a naturally aspirated version and two hybrids.

Like the C-MAX, this will include a conventional hybrid and plug-in version both claimed to offer best-in-class efficiency. The Fusion Hybrid downsizes from a 2.5-litre unit sold in the outgoing car to a 2.0-litre four-cylinder, allowing fuel economy of up to 47mpg during inner city driving and beating equivalent variants of the Toyota Camry and Hyundai Sonata.

This will be joined by the Fusion Energi Plug-In Hybrid, aimed at being the most fuel-efficient car of its size anywhere in the world. Ford is claiming over 100mpg on the new electric vehicle fuel economy test cycle, which is higher than the Chevrolet Volt and Toyota Prius Plug-In Hybrid.

Specification for the European market Mondeo has yet to be announced but with the Ford Focus Electric set to be imported it looks likely that the carmaker will offer a D-segment hybrid too.

FleetCor Technologies snaps up Arval’s AllStar UK fuel card division Arval UK has sold its AllStar fuel card business to US fleet transaction firm FleetCor Technologies in a £194m (€234m) cash deal. In addition, Arval and FleetCor have entered into a strategic relationship where Arval will continue to provide fuel card payment solutions to its customers through AllStar.

Ron Clarke, chairman and chief executive officer, FleetCor Technologies, said: ”The acquisition of AllStar is consistent with our global acquisition strategy of identifying attractive assets with performance upside. We believe that we can help AllStar realise its full potential, as we have in previous acquisitions, by bringing our best practices, technology and commitment to this portfolio.”

Andrew Blazye, chief executive officer, FleetCor Europe, added: ”We believe that this sale is a positive move for AllStar employees, partners and customers. FleetCor brings global fuel card expertise, best practices and experience to AllStar, which, we believe, will enable us to improve the products and services available to its customers.”

AllStar has around 40,000 customers and one million cardholders. Inherited in a 2000 acquisition, the UK fuel card business was a unique activity within Arval, benefiting from a multi- branded network and a full UK coverage.

Hyundai and Iveco join ACEA European automobile manufacturers’ association the ACEA has welcomed new members Hyundai Motor Europe and Iveco SpA. The membership follows existing cooperation between the ACEA and Hyundai in numerous ACEA working groups while Iveco had already been a member of the association’s Commercial Vehicle Board

VDIK bullish for 2012 CV registrations German car manufacturers’ association VDIK has said that the local commercial and passenger vehicle markets exceeded expectations in 2011 and the outlook is positive for 2012.

2011 commercial vehicle registrations stood at over 334,500 with a 19% growth rate and the VDIK expects registrations in this segment to remain at an above-average level in 2012.

BMW posts highest-ever sales in 2011 Last year saw the BMW Group record its best-ever sales result, with worldwide sales of BMW, MINI and RollsRoyce automobiles up 14.2% to reach a total of 1,668,982 vehicles.

Looking ahead, the brand says it wants to continue to grow, with balanced sales growth across all continents, and plans to remain the world’s top-selling premium automaker in 2012.

IFW January > February 2012

05

news analysis

Renault to reorganise UK business

Renault is to restructure its business in the UK, dropping a number of models and reducing its dealer network by around one third over the next 12 months.

From February, the firm will no longer sell the Laguna range, including the Coupe, as well as the Wind roadster, both variants of the Modus and Espace and the Kangoo and Trafic passenger versions – a set of models that made up less than 10% of the company’s UK volume.

The Clio, Scenic, Megane and Twingo have been retained, alongside the introduction of four new electric cars towards the end of 2012, while a new Clio and crossover vehicles are due in 2013 and beyond.

Renault’s UK fleet boss Darren Payne also added that Renault UK would also be pulling out of all fleet business except ‘true’ fleet sales, apart from a small volume of van rental. It will result in the firm’s fleet share halving over the next year. Mr Payne said that the firm had taken the decision to only sell cars that were inherently profitable and not dependent on the strength of the pound against the euro to create margins, as well as pulling away from doing expensive fleet business just for the sake of volume.

Advantage Rent a Car opens eight new locations across Europe Advantage Rent a Car, a wholly owned subsidiary of Hertz Global Holdings, Inc, is opening in eight further airports in Europe.

The low-cost car rental provider now has a total of 26 locations in the region across eight countries.

06

internationalfleetworld.com

GM sales hit record levels in China General Motors has announced record sales in China in 2011, leading it to retain its title as the sales leader in the market for the seventh consecutive year.

Along with its joint ventures in China, GM sold a record 2,547,171 vehicles in 2011, an average of one car or truck every 12 seconds. Sales were up 8.3% over the previous record of 2,351,610 vehicles sold in 2010. ”GM stayed ahead of the competition despite a slowdown in the growth of industry demand thanks to our broad portfolio of appealing vehicles,” said Kevin Wale, president and managing director of the GM China Group. ”GM and our joint ventures introduced 12 new models in 2011 while expanding our manufacturing and product development capability to meet rising demand.”

Looking ahead to 2012, Mr Wale said: ”This year will be equally promising for GM in China. We expect the market for both passenger and commercial vehicles to continue to expand, particularly in China’s Tier 3 and Tier 4 cities. With our leading sales position and the strong performance of our brands, GM is well positioned to capitalise on the growth opportunities.”

Honda to expand luxury Acura brand Speaking at the Detroit Motor Show, Honda has announced that it is to expand the Acura brand to some of the world’s growth markets, such as the United Arab Emirates, Saudi Arabia, Russia and Ukraine.

The carmaker plans to introduce the Acura brand to the United Arab Emirates and Saudi Arabia by the end of 2013 and to Russia and Ukraine in 2014. There are no plans to expand the Acura brand into European markets.

Nissan concept points to low-cost electric van Displayed at January’s North American Auto Show in Detroit, Nissan’s E-NV200 concept has provided clear evidence of the manufacturer’s plans to introduce an affordable multi-usage zero-emission small van.

Based on the NV200, the E-NV200 would offer highly versatile, functional interior space within a compact overall body length and a driving range similar to the Nissan LEAF.

for the latest news, visit internationalfleetworld.com

Sixt points to US expansion plans with new Orlando branch Sixt has opened a new branch at Orlando International Airport, Florida as part of its long-term plans to expand within the States.

The new regional outlet is the European rental provider’s fourth location in the United States, supplementing branches at Miami International Airport, Fort Lauderdale Airport and Fort Lauderdale. The branch’s fleet features a range of vehicles for hire from £14.50 per day ($22.35 USD), including economic sedans, convertibles, people carriers, American muscle cars and premium vehicles from brands such as Mercedes Benz.

The new location, which is situated in close proximity to the major transport hub, also offers a free 24-hour shuttle to and from the two airport terminal sites.

Paul McLoughlin, managing director of Sixt UK, said: ”The expansion to a fourth location in Orlando represents our continued business growth in Florida, with a long-term view of expanding across the rest of the United States. Sixt has over 100 years’ experience in the car rental business and we are very excited to be sharing this with our US customers.”

Carmakers to face €10bn fine for missing EU carbon targets The majority of carmakers in Europe must reduce emissions further to meet 2015 targets or face fines.

So said the European Environment Agency (EEA) in a recent report that also showed a number of manufacturers will also be subjected to fines adding up to €10bn if they don’t become more CO2-efficient to meet 2012 targets.

The EEA said that Daimler, Skoda, General Motors-Daewoo, Nissan, Mazda and Dacia need to reduce the average emissions of their fleets by more than 14g/km over the next five years.

However, it added that Toyota Motor Europe is already compliant with its 2012 target, and also less than 1g CO2/km from the more stringent 2015 target.

Peugeot and Citroen are also both close to reaching their 2015 target already and only need to cut their emissions by less than 5g CO2/km to meet the target.

This figure corresponds to the average reduction of emissions from new passenger cars between 2009 and 2010 in Europe.

Cadillac reveals ATS at Detroit This year’s Detroit Motor Show saw the wraps come off Cadillac’s new ATS compact luxury sports sedan prior to it going on sale in North America this summer.

The new model will introduce an all-new, lightweight, rear-wheel-drive architecture with one of the lowest kerb weights in the segment of less than 1,542kg. The ATS also introduces a broad line-up of engines, including an all-new 273PS 2.0-litre turbocharged four-cylinder.

in brief...

Nissan reports record European sales Nissan smashed its sales record for Europe in 2011, achieving ‘best ever’ market share in the region that were up by 25% on the 2010 figures.

Last year saw the brand achieve European sales of 695,702 units, surpassing 2010 by more than 140,000 units.

Geely to launch in UK market Chinese automotive manufacturer Geely is to enter the UK market under an agreement with the UK’s Manganese Bronze Holdings plc (MBH). MBH will become its distributor for the sale of new Geely cars, the supply of parts and will establish a dealer network and provide an aftersales service.

The first vehicles due to go on sale at the end of 2012.

Sergio Marchionne becomes ACEA president The board of European Automobile Manufacturers Association the ACEA has elected Fiat CEO Sergio Marchionne as its president for 2012.

Marchionne said the three main issues for the association in 2012 would be European industrial policy, sustainable mobility and transport, and international trade relations.

Strong growth for Fleet Logistics in 2011 Fleet Logistics has reported significant fleet growth in 2011, which has been attributed to increased centralisation of decision making and continued cost cutting at major international corporations.

The fleet management specialist added 19,000 vehicles to its panEuropean managed fleet in the last 12 months bringing its total to over 100,000 vehicles.

IFW January > February 2012

07

A Daimler Brand

Just 114 g /km CO2: even in silver metallic, this is a green company car.

With emissions of just 114 g /km CO2, the B 180 CDI BlueEFFICIENCY sets new benchmarks when it comes to efficiency – thanks to state-of-the-art technological features such as the ECO start /stop function fitted as standard and new 7G-DCT dual-clutch transmission. The new B-Class combines low fuel consumption and CO2 values with enhanced driving pleasure, high safety standards and a roomy interior space concept. www.mercedes-benz.com/fleet Fuel consumption urban /extra-urban /combined: 5.6–5.4 /4.1–3.8 /4.6–4.4 l /100 km; combined CO2 emissions: 121–114 g /km.* *Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.

the environment

An empowered approach to powertrain choices The last couple of years have seen markets increasingly diversifying in terms of alternatively fuelled vehicles. What are the trends and how can pan-European and international fleets manage such local diversification effectively? Natalie Wallis investigates.

Ask any leet operator about the main challenges that they’re facing at the moment and the chances are that going greener would be in the top ive, along with cost control and road risk management.

But as individual markets develop different solutions to environmental issues, inding a uniform solution is far from being a reality, as shown by the comments from LeasePlan International consultant Nathalie de Vries (see boxout right).

Of course, such variations are as much about the fact that different countries have different taxation models, usage, mobility and vehicle needs as well as different infrastructures. But the upshot of all of this is that the implementation of a pan-European green policy can be rather challenging to say the least.

The way to approach implementing a green leet policy across Europe is to have an overall green leet framework across the EU, or even global, but with national variations to meet local usage and market needs, according to Thibault Alleyn, international account manager at Fleet Logistics.

‘For example, in Austria we see high numbers of all-wheel drive versions on leets for obvious reasons but these are not always the most environmentally friendly of vehicles.

Indeed, when selecting an all-wheel drive system the level of CO2 steeply increases with most manufacturers,’ he comments.

‘In the Netherlands, on the other hand, we ind high proportions of petrol cars rather than diesel, due to fuel prices and different residual value setting. Switzerland tends to have high numbers of executive cars, with a lot more automatic gearboxes which historically also increase CO2 levels. So implementing any green policy needs to accommodate local variations,’ states Mr Alleyn.

To help implement a green leet policy and to encourage drivers to select the least polluting vehicles, Fleet Logistics has also identi ied a trend amongst certain leet owners

10

internationalfleetworld.com

to introduce inancial “rewards” for drivers to ensure they select the right vehicles.

‘We are now starting to see inancial incentives of up to €100 a month as an encouragement to drivers to choose low carbon emitting vehicles and to reward ecodriving based on actual fuel consumption, in order to help keep costs and emissions down,’ says Mr Alleyn.

EV interest high but uptake low Fleet Logistics has also said that it’s currently experiencing increased requests from clients for information regarding new developments such as hybrids or electric vehicles, telematics solutions, and mobility concepts.

“The use of EVs tends to be at clients which have large or multiple sites where EVs can be used to travel within the industrial sites or between of ices in urban areas,’ says Mr Alleyn. ‘Other clients are curiously looking at range extended vehicles, like the Opel Ampera, for longer business journeys.

‘We are also seeing more clients willing to open up their choice lists and move away from single or dual-badge fleet policies to allow hybrids and EVs from manufacturers that have strong reputations in these areas, such as Toyota, Renault and Opel,’ he comments.

Christophe Duprat, director of strategy at ALD International, also says that alternative fuelled vehicles are gaining visibility amongst leasing irms but reinforces that we are still at the very early stage of powertrain diversi ication and that electric vehicle leets did not reach the expected demand last year.

According to Mr Duprat, the continuous but slow start can be explained by two main reasons. Firstly that the alternatively fuelled vehicle offering is not yet mature

and also that leets are looking to test a broader and more consistent range of EV vehicles before making their decision.

Mr Duprat adds that once car manufacturers’ product offers are able to ful il the identi ied “alternative powertrain compliant” ecosystems, and once major car manufacturers’ offers are available for delivery, we will see a stronger interest in EVs from leet operators.

‘In addition, when major tender results are announced, leet owners will analyse again their leet in the spectrum of alternative powertrain mobility,’ he says. ‘The decision criteria will remain the same as before: TCO driven. Alternative powertrain vehicles’ TCO will have to reach their equivalent conventional engine vehicles’ TCO. And this can only be achieved today under usage condition and favourable incentive scheme from regulators.’

One aspect that may help with this is a more uniform approach to the incentive schemes used in different countries.

However, Mr Duprat concludes that the growing variations in powertrain technology will mean that vehicles will more and more be allocated to usages rather that to people.

He adds: ‘Such a shift will require a pooling ability that is not widely present at fleet user level. It will be the role of leasing companies to provide the tools ensuring the right usage of each vehicle and thus the right usage of each powertrain technology.’

Interest in EVs is growing and looks set to continue

LOCAL TRENDS IN POWERTRAIN SELECTION AN OVERVIEW Nathalie de Vries, Consultant at LeasePlan International, reviews the main global and European variations in company car fuel types. f we look at the European company car fleet in general diesel is the predominant fuel type, followed by petrol. In countries such as the US, Australia or New Zealand however, petrol is still predominant although it is losing ground.

But times are changing; due to technological innovation, the fuel efficiency of petrol cars has improved significantly over the last years. Add to that that the difference in pump price for petrol and diesel that has in many countries decreased to a minimum. And with many governments having introduced CO2-related tax (whether that is registration or road tax), people and companies are now making different decisions than some years ago.

If we zoom in on a local level however, we see some deviations from this general trend, for instance in Greece, where in the three main cities diesel cars are to a great extent not allowed due to high levels of pollution. And in Poland, we have seen a change from predominantly petrol to diesel.

This is mainly due to the price difference between petrol and diesel as well as the maturing of the lease market. As the price difference between petrol and diesel is decreasing so may this preference change again in the future.

The use of LPG and CNG cars is marginal although some countries show a stable minority share. There are several reasons for this including the fact that cars running on LPG are not allowed in some (underground) parking garages in Europe. Availability is also an issue. LPG or CNG is not as commonly available in fuel stations as conventional fuel.

Only in countries such as the Netherlands will you find LPG available at nearly every fuel station. However, networks in Belgium, Italy, France and the UK are rapidly increasing.

I

Ethanol or biofuels are only common in a few countries currently. Brazil is the most outspoken ethanol country and in Europe, Sweden is taking the lead.

The recently introduced electric vehicles are still a novelty. Practical concerns such as range anxiety and the coverage of charging locations on public roads seem to be leading the decision and outweighing the environmental aspects and current fiscal advantages.

These fiscal advantages for low and zero-emitting cars are significant although there is a question as to how long the governments will maintain their incentive schemes as this is an expensive measure. In France, for example, we have seen a significant shift in car choice towards smaller and greener cars. This is largely due to the tax system that has made polluting cars far less attractive, eg the tax for a car emitting 120g/km is only one quarter of a car emitting 165g/km.

For international fleet managers it will be important to leave the local entities enough freedom to select cars and fuel type that fit their individual local market requirements, infrastructure and culture. The local choice will be highly influenced by aspects such as costs (fuel price and taxation), usage of the car (long distance, heavy load, high annual mileage) and availability and accessibility of refuelling/recharging.

From an international level, guidelines could be issued with respect to CO2 levels with local countries having to meet certain targets. However these targets will then need to be met by making use of locally available vehicles and options.

Changing tax systems have made polluting cars far less attractive

IFW January > February 2012

11

the environment

Volkswagen’s eT! electric light vehicle concept could point the way to the future

An electric future...

Announcements around the Detroit Show outlining how many electric vehicles have been sold in the US in 2011 indicate that Nissan sold around 10,000 Leaf electric cars and GM sold around 7,000 Chevrolet Volt models. That said, the Volt is actually a hybrid car using a small petrol engine to power the drive motor once the stored energy in the batteries has been used up, but offers a more useable electric-only range than parallel hybrid technology models typi ied by the Toyota Prius.

Out of some 12,800,000 new car registrations, that represents around 0.13 per cent, not the kind of igure that will make the motor industry rich, particularly given the investment required in designing vehicles with a new drivetrain.

Not surprisingly, there is more to come. VW announced details of a concept electric light CV in November, the VW eT! This is designed to offer a glimpse further into the future, presenting an electrically propelled urban delivery vehicle that can, for instance, be driven by a “joystick” control from the passenger side, if needed. Envisaging use as a mail or parcel delivery vehicle, it has been designed to follow the driver along the road as he or she makes house-to-house deliveries on foot. It could also be summoned to the driver when commanded. There will doubtless be a number of technical issues requiring further development and perhaps a greater hurdle – worldwide legislative agreements surrounding the autonomous operation.

12

internationalfleetworld.com

At the Detroit Show, Nissan unveiled the e-NV200 Concept, based on the NV200 van.

As Nissan CEO Carlos Ghosn said at the Show, the concept is near production ready.

In fact the model was promised when the NV200 was launched, so the electric variant is no surprise, neither is the fact that it will use the Nissan Leaf drivetrain.

The low take-up for electric cars is not a surprise. The limited range is an issue for anyone who does not have access to a car with an internal combustion engine for longer journeys. That’s what has given rise

where people have got pre-speci ied journeys. This is going to be a much easier sell, as long as we can sit down and talk about the obvious high price.

“We’ve done quite a lot of work on that and we will be buying the first one ourselves to use in our parts business.

We’ll have real-time experience of how this works.

“The £40,000 price tag can be quite daunting. Everyone is writing the vehicle off in terms of residual value, but they are only going to do 80-90 miles a day.

The prize for manufacturers is massive reduction in driveline development and manufacturing cost. Like it or not, EVs are here to stay... to the Chevrolet Volt/Opel Ampera range extender concept. The cost of electric vehicles also remains a factor and will do for some time until the cost of batteries starts to fall. For the short term at least, it will be small electric commercial vehicles covering daily mileages that do not conflict with available range where electric vehicles can be expected to make market inroads.

Given the high relative cost, it is most likely that these vehicles will be operated on a lease by a fleet.

As Chris Hayden, then Chairman and CEO of Ford Retail told me in April 2011 at the launch of the Transit Connect Electric in the UK: “We’re particularly attracted by commercials because of the limited range,

“If you look after them they’ll run for many years. We currently amortize vehicles over three years. Once you start amortizing them over a bigger period – the battery is guaranteed for five years – we’ll see where they stand in terms of their residual value. It will make for some very interesting conversations and it will make for conversations that will enable people to see a way of accessing the vehicle.”

And you can’t pile electric vehicles high and sell them cheap, so there’s a learning curve for dealers. The prize for manufacturers is massive reduction in driveline development and manufacturing cost.

Like it or not, EVs are here to stay.

WHAT MAKES ARVAL A

SUSTAINABLE PARTNER?

indicators to measure daily fast and accurate service

An average of An average of

424€ identified savings per car per year(2)

530

kilos CO2 emissions reduction per car per year(2)

Arval is Europe’s No. 2 full service leasing company (3). In 20 years, Arval has become a major international player in multi-brand operational leasing. Present in 39 countries through its 22 subsidiaries and its strategic partners, Arval helps develop your corporate vehicle strategy and assists you in defining the car policy that suits the individual needs of your business and optimise your employees’ mobility. Our staff are dedicated to the complete satisfaction of our customers. So, you can focus on the essential: your business.

Discover more about Arval on www.arval.com or call us on +33 (0)1 57 69 50 00.

www.arval.com

Crédit photos : Citroën Communication - J.Lejeune , Renault –

of our customers agree we stand by our customer promise(1)

40

(1) International customer satisfaction survey – TNIS Sofres – 2010 (2) Amount identified by Arval Consulting (3) No.2 Financed fleet, No.3 managed fleet Europe

89%

motor show review LA MOTOR SHOW

LA & Tokyo Motor Shows pave way for future fleet models John Kendall reviews the main highlights for fleets from Los Angeles...

> Cadillac XTS

> Ford Escape / Flex

Cadillac unveiled the 2013 XTS in LA. The model is larger than the CTS range and saw the introduction of Cadillac’s CUE interface and connectivity system. Cadillac claims it is the only luxury US sedan to feature magnetic ride control as standard.

Other features include all-wheel-drive and 305PS V6 3.6-litre direct-injection petrol engine driving through a Hydra-Matic six-speed automatic transmission. Stabilitrak electronic stability control (ESC) is also standard equipment. The XTS is due in US and Canadian showrooms in spring 2012.

Ford unwrapped the latest Escape, (due to arrive in Europe and China as the new Kuga) at Los Angeles, providing another platform for the carmaker’s fuel-ef icient direct-injection petrol 1.6 and 2.0-litre EcoBoost engines delivering 237PS from the 2.0litre engine and 173PS from the 1.6-litre variant, both driving through a six-speed SelectShift automatic transmission.

The Escape marks the North American debut for the 1.6litre engine. Ford will be offering adaptive airbag technology with the models.

Los Angeles was also the launch platform for the latest Flex seven-seat crossover. Among the features is the latest MyFord Touch system, new safety and driver-aid features including adaptive cruise control and Ford’s Blind Spot Information System (BLIS). Other features include push-button start, rear in latable belts, rain-sensing wipers and active park assist.

Power comes from a choice of 3.5-litre V6 engines.

> Chevrolet Spark Already familiar to European, Asian, Australian, Mexican and South American customers, the Spark compact four/ ive-seat supermini was launched by Chevrolet at the LA show, ahead of its launch in the US and Canada around mid-year 2012.

In the US, Spark will take on rivals such as the Fiat 500, Smartfortwo and Scion iQ. Power comes from a 1.2-litre engine driving the front wheels through a ive-speed manual transmission. Chevrolet claims Spark is the only car in its class to be offered with a ive-year/100,000-mile warranty.

14

internationalfleetworld.com

> Honda Fit EV The Fit EV – the electrically powered version of the Honda Fit – sold as the Jazz in Europe – was given its global launch at LA, before becoming available on lease in selected California and Oregon markets in the US in summer 2012. Rollout will continue with six East Coast markets in 2013. Honda claims a 76-mile combined range from the drivetrain – a 92kW electric motor supplied by a 20kWh lithium-ion battery.

Fit EV features Eco, Normal and Sport driving modes and has a claimed rapid charge time of less than three hours.

European versions are not due for launch until autumn 2012 and will be built in Honda’s Swindon, UK plant.

> Hyundai Azera The Azera was launched at LA, ahead of its US launch in early 2012.

Featuring Hyundai’s ‘Fluidic Sculpture’ design language, Hyundai’s premium sedan features nine airbags including a driver’s knee airbag, and standard electronic stability control. The 3.3-litre V6 direct injection petrol engine produces some 293PS and offers fuel consumption of 29mpg Highway. A six-speed automatic transmission is standard equipment as is electronically controlled amplitude selective damping to smooth the ride.

> Infiniti JX Crossover Spring 2012 is the launch date for the In initi JX seven-seat crossover, revealed at the LA Show. Infiniti claims segmentleading overall passenger volume for the JX, more second and third-row legroom than a Caddy Escalade and access to the third row without removing a second row child seat.

Around View Monitor incorporates Moving Object Detection. Featured as part of the onboard safety technology, the Backup Collision Intervention system is claimed to be a world irst. When in reverse, the system can detect moving vehicles and objects behind and can apply the brakes to help avoid a collision. Power comes from a 3.5-litre 265hp V6 petrol engine, expected to deliver 23mpg Highway. Drive is transmitted through a sport-tuned CVT system.

> Subaru BRZ concept Subaru showed the BRZ in concept form at the LA Show ahead of its production debut at the Tokyo show a few weeks later.

The BRZ has been developed as part of an ongoing joint project with Toyota and will be built at Subaru’s Gunma plant in Japan from spring 2012.

Developed around Subaru’s core technologies, the BRZ will use a new 2.0-litre Subaru Boxer engine developed speci ically for the model, using the latest direct-injection technology to improve combustion ef iciency. The boxer front engine and rear-wheel drive con iguration allows the engine to sit low in the chassis and close to the cabin to ensure the lowest possible centre of gravity and to optimise the BRZ’s handling.

> VW CC VW unveiled the revised CC, or Passat CC as we know the current model, at the LA Show.

The CC adopts VW’s latest frontal treatment with horizontal bars for the radiator grille. Bi-xenon headlamps are standard it and there’s a new bonnet and front bumper. The frameless doors are carried over from the current model but the sills are more sculpted and the rear bumper has been completely revised.

There are new rear lamps too, using LED arrays as standard. A number of new driver assistance options will be featured too. US customers will see the new CC in showrooms in early 2012.

> Lincoln MKS 7 MKT Ford’s Lincoln division featured revisions to 2013 model year MKS models, Lincoln’s flagship sedan and the MKT full-size crossover. Standard equipment for 2013 on the MKS includes Continuously Controlled Damping (CCD), the only car in its segment to do so, says Lincoln.

Power rises from 274PS to 300PS, while fuel consumption decreases from 25mpg to 28mpg Highway for the 3.7-litre V6. Other features include uprated brakes, lower noise levels and collision warning.

The MKT crossover gets similar treatment. Models powered by the 3.5litre V6 355PS EcoBoost engine also gain CCD. And it gets a makeover inside. A 300PS 3.7-litre V6 is also an option and models fitted with this engine see a marginal improvement in Highway mpg to 25mpg.

¡ IFW January > February 2012

15

motor show review TOKYO MOTOR SHOW

¡ John Kendall reviews the main

highlights for fleets from Tokyo...

> Mazda TAKERI

> Audi A1 Sportback 5dr Tokyo provided the show debut for the ive-door version of the A1 compact hatchback, which is expected in showrooms early next year, with a price premium of around €670 over the three-door model.

Audi was also showing the A1-based Samurai Blue concept for Japanese customers. The car celebrates the world championship success of the Japanese ladies football team.

The TAKERI concept car adopts Mazda’s new design language, KODO – Soul of Motion – to mid-sized saloon styling.

Mazda is using its much-publicised SKYACTIV Technology to power the car, including the carmaker’s first regenerative braking system. In this case the new SKYACTIV-D diesel engine is teamed up with Mazda i-stop automatic engine stop/start, a new lightweight structure, aerodynamic and chassis technologies and regenerative braking. The end result is that the TAKERI is said to achieve excellent fuel economy.

> Daihatsu ShoCase Small cars are Daihatsu’s forte and they don’t come much smaller than this, even if it doesn’t look it in the photograph. At 3,395mm long and 1,475mm wide, the ShoCase is 145mm shorter and 165mm narrower than a Volkswagen Up! It’s a zero-emission vehicle using fuel-cell technology for propulsion.

The ShoCase was joined by another couple of Daihatsu debutantes at Tokyo.

Looking like a possible Copen K-car successor, the D-X is a crossover compact two-seater, which could be a dune buggy or two-seat open sports car. The Pico on show is a concept tandem two-seat electric city car, similar to many that have appeared at European shows in 2011.

> Honda AC-X AC-X is described as a next-generation plugin hybrid vehicle, designed to offer a comfortable and enjoyable driving experience in urban and long-distance motoring. It offers the choice of an ‘engine drive mode’ for more spirited driving, or an ‘automatic drive mode’ for more relaxed driving.

The Honda stand certainly did not lack for innovation with everything from the EV-STER, a compact EV sports model with 160km range, to the N Concept series of vehicles, which emphasise the use of space.

The irst to reach production is the N BOX, which gives an idea of what future models will look like.

Finally, the Micro-Commuter Concept showed another take on a small electric city car.

16

internationalfleetworld.com

Honda EV-STER

Honda AC

> Toyota FCV-R (Fuel Cell Vehicle – Reality & Revolution)

> Mitsubishi Concept PX-MiEV II Officially a concept but very close to how the next Outlander will look when it makes its debut at the Geneva show in March. It boasts plug-in hybrid (PHEV) technology that is claimed to offer a long cruising range.

The Thai-built Mirage also made its debut at Tokyo. Design is focused on compact dimensions, affordability and high fuel efficiency in order to fit the needs of emerging markets as an affordable entry-level model as well as the needs of advanced markets for fuel efficiency and low-CO2 emissions.

Mitsubishi has targeted best-in-class fuel efficiency in Japan of 3.3l/100km, through a variety of measures including weight reduction in almost every part of the car. The Mirage is due on sale first in Thailand in March 2012.

This concept, measuring 4.7 metres in length, is a practical, family-sized vehicle fuelled by a hydrogen fuel cell to generate electricity. The concept model is said to represent the next step towards the commercial launch of a Toyota fuel cell vehicle by 2015.

The fuel cell is packaged beneath the floor, to optimise cabin and luggage space. Toyota quotes a range of around 430 miles on the Japanese JC08 test cycle.

> VW Cross Coupe > Subaru Advanced Tourer Concept A hint at what the next-generation Legacy could look like, this concept is slightly smaller than the current Legacy and is expected to be powered by a 1.6-litre turbocharged ‘boxer’ engine, a downsized version of Subaru’s current 2.0-litre boxer family.

Subaru was also showing the BRZ coupe production concept, which was given its global debut at the Los Angeles show.

Of icially described as a cross between a fourdoor coupe and compact SUV, therefore a rival to the Range Rover Evoque. The Cross Coupe also shows the new look for VW’s SUV family and is a potential replacement for the Tiguan.

It uses a hybrid powertrain, combining VW’s turbocharged 1.4-litre fourcylinder direct injection TSI petrol engine with a pair of electric motors – front and rear – for a combined maximum power output of 265PS.

> Nissan NV350 A glimpse of Nissan’s abandoned plans for independence from Alliance partner Renault in its European LCV line-up? NV350 is an LCV concept with improved fuel economy and contemporary exterior styling, along with a functional interior styled to emphasise a spacious feel. It offers a load floor up to 3.0m long. The proposed keyless ignition is claimed to be a world first for a commercial vehicle.

Nissan Pivo 3 The Japanese market launch is scheduled for summer 2012.

Elsewhere on the Nissan stand was the latest Pivo concept, the Pivo 3. Always a Tokyo favourite, the latest Pivo features Automated Valet Parking (AVP), which enables it to automatically drive, locate a parking space and park without driver assisNissan tance. It can also charge itself and return to its driver when called by smart phone.

NV350 The compact three-seater features an electric power train with hub motor drive.

IFW January > February 2012

17

in association with

driving towards lower fleet emissions The Electric Vehicle & Low CO2 Fleet Show 2012 is a one-day event providing fleet decision makers and other fleet industry executives with information, advice and guidance on low emission strategies.

Organised by Fleet World magazine in association with the British Vehicle Rental & Leasing Association, the event provides a platform from which motor manufacturers, fleet service companies, infrastructure suppliers and others can explain their products, services and emission control initiatives.

• • •

• CASE STUDY - De-carbonising the fleet >

Director, Willmott Dixon • Future developments in electric vehicle

drivetrain and battery technology > Alex Stewart, Senior Consultant, Element Energy.

• Test drive the latest petrol-electric hybrids, diesel-electric

•

SEMINAR PROGRAMME costs and operational requirements of electric vehicles > Paul Nieuwenhuis, Director, Centre for Automotive Industry Research, Cardiff University

• Operating

hybrids, fuel-cell hybrids and electric range-extenders, as well as the latest low-emission petrol and diesel engine vehicles Discuss future drivetrain strategies with leading fleet motor manufacturers Find out more about low-emission light commercial vehicles Talk to charging point suppliers and infrastructure providers Discuss low-carbon vehicle supply with leasing providers

• Developing the business case for electric

vehicles > Nigel Underdown, Head of Transport, Energy Saving Trust and Robin Haycock from The Climate Group.

• Question

Time-style debate > panel discussion chaired by BVRLA Chief Executive, John Lewis.

EXHIBITION SPACE For further information on exhibiting at the Show please visit the 'EXHIBITORS' section of the website or contact anne@fleetworldgroup.co.uk

VENUE THE SILVERSTONE WING The new Silverstone Wing offers the very latest in state-of-theart conferencing and event facilities. Situated in the heart of the world famous Grand Prix Circuit at Silverstone, the Silverstone Wing has all the unique excitement and prestige needed to make powerful and lasting impressions.

WHERE & WHEN?

THE SILVERSTONE WING WEDNESDAY 18 TH APRIL 2012

DIARY DATE 18/4/2012 RIDE & DRIVE Test driving of electric, hybrid and other low-CO2 vehicles will take place on the Stowe Circuit, a separate infield circuit with its own facilities situated a few minutes away from the Silverstone Wing.

There will be provision for visitors to book provisional test drives in advance direct with the relevant motor manufacturer, though all bookings will be at the manufacturer’s discretion.

for more information and to register... evfleetshow.co.uk

COPSE CORNER

SILVERSTONE THE STOWE CIRCUIT

WOODCOTE CORNER

NATIONAL PITS STRAIGHT BROOKLANDS CORNER

WELLINGTON STRAIGHT LUFFIELD CORNER

MAGGOTTS CORNER AINTREE CORNER VILLAGE CORNER BECKETTS CORNER

ABBEY INTERNATIONAL PITS STRAIGHT

“The Show will feature a wide range of low-emission vehicles which will be available for test driving on the Stowe Circuit.”

THE LOOP FARM CURVE

CHAPEL CURVE

HANGAR STRAIGHT CLUB CORNER

VALE

STOWE CORNER

t +44 (0)1727 739160 e evfleetshow@fleetworldgroup.co.uk w evfleetshow.co.uk

interview

INTERNATIONAL CREDENTIALS As the new Head of International Business Office at Arval, Liam Donnelly comes with truly international credentials.

Natalie Wallis finds out more about his plans for increasing the company’s focus in this vital area.

Born in Ireland and raised in Scotland, Liam Donnelly has had a varied international career. As well as roles in the offshore, airport and food service industries, he also has 16 years’ experience within the leasing industry, which includes four years as sales director for Arval UK, followed by a further four years as managing director of Arval’s recently established Arval India operation.

In his latest role as head of International Business at Arval, Mr Donnelly is based in Paris, heading up Arval’s International Business Of ice (IBO) which, in his own words, forms part of the company’s move to “put a bit more focus on all of the international accounts that we currently manage”.

While Mr Donnelly may be a new face to IBO, the department itself is irmly established and deals with international accounts from any of the 22 countries that Arval operates in or where it has its alliance partners – which include PHH Arval in the US and Canada, Facileasing in Mexico, Sumitomo Mitsui Auto Service Company in Japan, Avis Fleet Services in Africa.

But IBO also serves an important role at a local level, as Mr Donnelly says.

“If you think of the importance of IBO within Arval, IBO leases today roughly some 150,000 vehicles – and in terms of new vehicles every year, we represent something like 25% of all the new cars that are bought

by Arval in a year,” he comments. “So this is the real hub – certainly from an international point of view.

20

internationalfleetworld.com

“But the absolute focal part of the IBO business is driving a growth strategy within the local entities of Arval. We don’t sit here just thinking that we’re growing IBO – that’s taken as a read – but in growing IBO, because all of the cars are in the local entities, we support hugely the growth of the local entities.

“We are here to grow international clients but in growing international clients we help with the development of the local entity.”

Such local entities now include Brazil and India – the latest two major markets to come on board – and will be joined by other markets.

Clearly the international credentials of Arval’s IBO team are very much assured – but the leasing giant’s marketplace offering is also underlined by the services and skills it brings.

Mr Donnelly says: “I think we bring real credibility in terms of the number of years we’ve been in the business – 20plus years. And we bring some credibility by our parentage in terms of BNP Paribas.

We also absolutely have an edge in the marketplace in terms of the quality of our consulting team – as you go global, more and more of the clients want a single view of what is happening across the globe on their fleets and recently our Arval Analytics reporting tool received the ‘Industry Innovation Award’ for servicing this need.”

And Arval has also raised its service game even further of late.

“To demonstrate the importance of our key strategic accounts, we’ve strengthened our dedicated teams this year and we have the absolute buy-in at senior level to maintaining our key accounts,” continues Mr Donnelly.

This move forms part of an ongoing focus to make sure that Arval concentrates on meeting the needs of its existing accounts as much as its new ones.

Mr Donnelly says: “When we look at some of our international accounts, the fleet potential available for Arval to service presents an opportunity. As a business we should put equally as much effort into maintaining and growing our fleet in those clients whilst looking for new – and if you get that formula right then the business grows.”

And it’s this focus on comprehensively meeting its existing international customers’ needs in existing international markets – whilst also adding to these – that underpins Arval’s approach going forward.

“Our strategy for IBO is very simple,” concludes Mr Donnelly. “We have to hold on to every single one of our international accounts in a very competitive world. We have to find new international accounts to continue our growth. And I think we must ensure that we continue to deliver on the basic promises to the customers – if we can deliver that in each of the entities, then I think from a global perspective, that’s a new step forward.”

In growing international clients we help with the development of the local entity Liam Donnelly, Head of International Business Office, Arval

IFW January > February 2012

21

2012 fleet calendar International Fleet World’s guide to what’s happening in the fleet industry in the next 12 months – when, where and how to find out more info...

February 29-3 March Cairo International Motor Show (PC) March 8-18 Geneva 82nd International Motor Show (PC) www.salon-auto.ch 22-1 April Zagreb International Motor Show (PC, LCV) www.zv.hr/autoshow 27-31 Belgrade International Motor Show (CV) www.belgradefair.rs 28-8 April Bangkok International Auto Show (PC, LCV) www.bangkok-motorshow.com April 17-21 Amsterdam International Motor Show (CV) www.autorai.nl 18 EV & Low CO2 Fleet Show, Silverstone Circuit, UK (PC, LCV) www.evfleetshow.co.uk 21-24 NAFA Institute and Expo, St Louis, Missouri www.nafa.org/conference 24-26 The Commercial Vehicle Show, Birmingham, UK (CV) www.cvshow.com 25-2 May Beijing International Automotive Exhibition (PC, CV) www.china-autoshow.com June 6-10 Brno Autotec (CV) www.bvv.cz 14 Fleet Safety Forum Awards, Birmingham, UK www.fleetsafetyforum.org/events August 31-9 Sept Moscow Auto Salon (PC) www.oar-info.ru September 20-27 Hanover 64th International Motor Show (CV) www.iaa.de 22-30 Jakarta, 20th Indonesian International Motor Show (PC, LCV) www.dyandra.com 25-26 National Association of Police Fleet Managers Conference and Exhibition, Peterborough, UK www.napfmevent.org.uk 29-14 October Paris Mondiale de l’Automobile (PC, LCV) www.mondial-automobile.com October 10-12 Kiev International Motor Show, TIR’2012 (CV) www.autoexpo.ua 20-28 Sydney International Motor Show (PC, LCV) www.motorshow.com.au 24-4 November São Paulo, 27th International Automobile Trade Show (PC, LCV) www.salaodoautomovel.com.br November 2-11 Istanbul International Auto Show (PC) www.odd.org.tr 30-9 December Los Angeles Auto Show (PC) www.laautoshow.com December 7-16 Bologna Motor Show, International Automobile Exhibition (PC, LCV) www.gl-events.it KEY: PC – passenger cars // LCV – light commercial vehicles // CV – commercial vehicles

22

internationalfleetworld.com

advertisement feature

OPEL: 150 YEARS OF EXCELLENCE It’s 150 years since Adam Opel engineered his first product, a sewing machine built in his father’s workshop in Russelsheim, Germany. And the century and a half since, his company has grown from those humble beginnings to become one of Europe’s biggest carmakers and a leader in affordable mobility.

Opel’s history is built on innovation. The carmaker was the first in Europe to use an automated assembly line in 1924, and has pushed for safer, better built and more economical vehicles ever since. It’s an effort that’s been widely recognised, with recent accolades including a Euro NCAP Award for its Active Forward Lighting system and DEKRA naming the Astra and Insignia top of the list of Europe’s most reliable cars.

In 2012, as it marks the end of its first 150 years, it’s ready to introduce an all-new era in mass-market electric mobility with the range-extended Ampera – the first of a range of advanced electric vehicles due in the next five years, and the start of the next chapter in Opel’s history.

> Mokka Small in size but big in attitude, this compact SUV will take Opel into an all-new territory this autumn, with chunky styling and frugal engines adding to its user-chooser desirability.

> Ampera Nominated for European Car of the Year, the Ampera’s unique range extending technology is a glimpse of the future of motoring, offering unparalleled electric mobility without compromising performance, style or range.

> Zafira Tourer Launching in March, the Zafira Tourer appeals to both head and heart, packaging adaptive seven-seat practicality with desirable styling, lounge-like luxury and an engaging driving experience.

> New Combo Compact but versatile, the all-new Combo panel van offers the best load capacity and payload in its segment, as well as a choice of two wheelbases and two roof heights and six efficient engines.

> Astra GTC Near identical to the GTC Paris concept car, the Astra GTC boasts the practicality of its hatchback sibling, but with a striking coupe body and Insignia OPC-sourced suspension for true sports car handling.

opel.com

fleet focus USA

NEW BMW 3 SERIES

CADILLAC ATS

What next for the US? The US car market is reviving, commercial vehicles thriving, will the economy hold things back in 2012? John Kendall reports.

24

internationalfleetworld.com

INFINITI JX

The US premium market will benefit from several new product launches this year – BMW 3 Series, Cadillac ATS, Infiniti JX, among others It is the single biggest car market in the world and after the 2008 financial crisis brought down both Chrysler and GM, 2011 saw the US car market firmly on the rebound, an interesting comparison with Europe where the market is still in decline, albeit slowing.

Figures from Polk suggest that the 2011 market for cars and light trucks in the US was up some 10 per cent to 12,777,939. Polk’s Forecasting Practice believes there is more to come, but growth will slow and the company expects sales to grow a further seven per cent in 2012 to reach some 13.7 million units. The forecast does not expect the US to return to the pre-recession volumes of around 16 million before 2015, though.

And what of the leasing market? According to Polk’s Tom Libby, “In the U.S. new vehicle market in 2012, leasing will, at a minimum, continue to play a considerable role, and its influence may even grow

because of the increased availability of money and improved residuals for many makes and models.

“This trend will drive the luxury market to an increased share of the total market as leasing traditionally accounts for more than 40% of all luxury deliveries (41.5% October 2011 CYTD). The premium market will also benefit from several major new product launches (BMW 3 Series, Cadillac ATS, Infiniti JX, among others) as well as intense volume competition among the luxury leaders.”

Scotiabank is forecasting a similar US car and light truck market, of around 13.5 million for 2012, which would make it the best year for the US auto industry since 2007. Among the driving factors, according to Scotiabank’s December 2011 Global Auto Report will be the average age of vehicles in the US, said to be approaching 11 years. In fact Polk puts the current average age at 11.1 for cars and 10.4 for light trucks.

That, reckons Scotiabank, points to pent up demand for replacements, while a rising labour market and improving credit availability will be there to help customers into new models.

ARI manages over 850,000 cars, trucks and equipment in North America and Europe and manages fleets for over 40 per cent of Fortune 100 companies (the 100 companies listed by Fortune magazine annually as having the highest gross revenue in the US).

Elisa Durand, ARI Manager Strategic Consulting (left) told IFW, “It was our experience that 2011 showed improvement over 2010. We saw new vehicle orders increase as average acquisition costs went down. We also saw a strong resale market contribute to a reduced average depreciation rate. Many fleet trade shows, such as AFLA, Green Fleet, and NAFA either boasted record attendance numbers or sold out exhibitor booth space in 2011.”

Mark Smith is strategic consulting manager at GE Capital Fleet Services, which has some 4,300 customers in the US for 762,490 vehicles operating across a range of fleet sizes and organisations from pharmaceutical companies to distribution, IT, manufacturing and construction businesses. The fleet includes cars, and light to heavy trucks.

GE Capital saw that the US economy still presented challenges for their customers in 2011, but that for many, the worst of the

financial crisis is behind them. He told IFW: “US economic growth remained challenged.

However the Commercial Fleet Industry has stabilized and started to grow. The challenges associated with the financial turmoil of 2008 and the bankruptcy of two OEMs are behind us and most of our customers have returned to their regular ordering and replacement cycles.”

So in some respects, the US vehicle market was similar to that in Europe in 2011. The principal difference is that while the US car market is back into growth, in Europe, the market is still falling. On the other hand, the fleet dominated light and heavy commercial vehicle sectors have been rising steadily since 2010.

We asked both ARI and GE Capital what had shaped business development for them during 2011?

“Increased business activity is one factor that influenced vehicle buying trends as well as the need for many fleets to address prolonged vehicle replacements dating back to 2008”, said Elisa Durand at ARI, “the tsunami in Japan also had an acute impact in terms of vehicle and parts availability.

Many strategies had to be shifted quickly to accommodate delays and shortages. This tragedy had global repercussions which has already, and will continue, to impact how the automotive industry diversifies its business models.

“The announcement of multiple governmental fuel efficiency standards also incited many fleets to start thinking about the possibility of higher vehicle acquisition costs in the upcoming years. This will continue to influence fleet activity into 2012 and beyond.”

Similar factors get a mention from GE Capital, but Mark Smith singled out one in particular: “One of the most significant developments of 2011 was the introduction of Electric Vehicles into the Commercial Fleet segment of the market. The majority of the global OEMs already have, or are planning to launch EVs in the near future and several leading companies including GE have begun to incorporate them into their fleet operations.”

Ford, for instance launched the Transit Connect Electric, in partnership with Azure Dynamics, first into the US market during 2010, following up in Europe last year.

Weight and cost will keep battery electric heavy trucks off the roads for some time to come, although some manufacturers are now discussing long-haul hybrids.

IFW January > February 2012

25

¡

fleet focus USA

What next for the US? ¡

Mark Smith also raised a couple of other business factors in 2011 in the shape of new product introductions and in particular automated toll products, as well as the price of fuel. As we go to press, the price of gasoline in the US is currently in the $3.0 to $3.60 a gallon range, after peaking at over $4.00 in the first half of 2011. Diesel prices were in the $3.71 – $4.11 per gallon range having almost reached $4.50 last year. The trend for both fuel prices currently is upwards, with prices rising to date throughout January. The reputation that the US enjoyed as a low fuel cost nation is now history and is undoubtedly shaping attitudes to engine size and alternative fuels.

So what’s in store for the US fleet market in 2012? We asked both Elisa and Mark for their predictions.

“We feel the fleet industry will remain focused on promoting fleet value: increasing performance and verifying best practices management,” reckons Elisa.

“Businesses will continue to closely monitor the maintenance and effectiveness of their vehicles. Fleet management companies will help customers get the most out of their vehicle life cycles and train drivers to properly handle vehicles.

“The use of technology will continue to grow as fleets see the considerable ROI (return on investment) that telematics, GPS and data platforms provide. While a significant initial investment may be required, these tools can ultimately provide information that improves every aspect of fleet performance.”

Not surprisingly perhaps, Mark is in agreement. “We anticipate that we will see industry improvements over 2011 and that our customers will continue to refresh their fleets and embrace new technologies.”

Finally we asked them both which issues they thought would have an impact on business in 2012.

“The top issues that our customers are focused on include sustainability, safety, cost management and developing and implementing strategic fleet plans that position them for both today and tomorrow,” reckons Mark, while Elisa at ARI has concerns about regulations and enforcement. “In 2012, we foresee government regulations and requirements becoming even more intense with stricter enforce-

26

internationalfleetworld.com

ment against violators. Fleet management companies will be active helping clients stay on top of legal requirements.”

Light CVs Global platforms have eluded car makers for many years, which was hardly surprising. Market differences in vehicle size, engine capacity and fuel type, plus differences in national regulations made the goal almost impossible. But in the high fuel price world that is the reality for most markets, the factors are all there for it to happen. As we detail elsewhere in this issue, Ford is enjoying a fair amount of success with its One Ford plan.

If the logic of manufacturing cost reduction works for cars, it makes even more sense for the measurably smaller volumes of light commercial vehicles. Ford had every intention of making the 2000 Ford Transit into a world platform, to the extent that the development team, under Martin Leach, shipped out of the UK in the late 1990s to complete the project in the US. Now with the One Ford project taking hold, Ford announced in December that Ford’s long-running Econoline is heading for the great scrap yard in the sky and will be replaced by the Transit in 2013. This will be a new model replacing the current van, which itself is an evolution of the 2000 model.

Ford’s iconic Econoline will be replaced by an all-new Transit van in 2013.

As Mark Bursa points out in his Ford profile feature on page 34, the Transit will be heavier than the current model with gross weights up to 5,000kg. European Transit models are available in both front and rear-wheel-drive. Whether Ford will bring the front-drive models to the US is not clear, but Europe has a large market for

front-wheel-drive cargo vans, so the doubters should not be too worried about their well-proven abilities.

Like the Econoline in the US, the Transit has become part of the light duty sector scenery in Europe, dominating the UK light CV market for the past 46 years, in fact since the original product line was launched in 1965.

Mercedes has already been there, bringing the Sprinter, a head-to-head rival for the Transit in Europe, to North America around 10 years ago, wearing Dodge and Freightliner badges initially.

Ford will make the Transit work in the US, if for no other reason than it has to. Despite numerous approaches over the years, the Transit remains the only European cargo van that is not produced in a joint venture with a rival.

The Sprinter is built on the same production lines in Germany as the VW Crafter, sharing the same basic structure. The same is true of the Peugeot Boxer, Citroen Jumper/Relay and Fiat Ducato. Most models also share the same engines, which in many Peugeot and Citroen models is a variant of the Transit diesel, produced in another JV between Ford and PSA. GM and Renault-Nissan also build vans in a joint venture and Mercedes and Renault’s light van, based on the European Renault Kangoo is only months away. Building the Transit in the US is the only way for Ford to contain costs without a JV partner.

Fiat has already said that a Dodge-badged Ducato is on the cards for the US to replace the Sprinter, lost in the Daimler Chrysler demerger and subsequent Chrysler collapse.

With the Transit scheduled for 2013 in the US, Chrysler is unlikely to wait until the Kansas production lines start churning before making a move.

If the Ducato is not deemed to be suitable, Fiat’s Iveco truck division builds the rear-wheel-drive Daily, another Transit and Sprinter rival in Europe with gross weights up to 7.0-tonnes GVW. Natural gas and electric versions are part of the lineup too. Somehow, a Dodge Daily looks a surer US market contender than the Ducato in the short run.

Either way, the US looks set for several European light CV launches in the next 18 months. And where they lead, will VW and Nissan follow?

fleet strategy

Residual value confidence eases after an upbeat year The last quarter of 2011 saw confidence in forecasted residual values ease across Europe, perhaps signalling an era of caution after a positive 12 months.

Having reported a +5.3% increase in its forecasted RVs for the 12 months, Germany showed only a +0.3% rise between October and December, with the UK swinging from +4.0% for the previous year to a -4.6% drop in the last quarter.

Of the 6 nations surveyed, only Italy shifted its forecasts upwards with a move from -2.0% for the year to a +0.8% rise for the quarter.

The latest experteye European Leasing Index report which tracks forecasted residual values, maintenance costs and rental rates in six European countries uses data supplied by major leasing companies in each market.

Of the six countries surveyed, Portuguese leet customers have seen the largest overall hike in rental rates, rising by +4.6% during the last 12 months, with French leasing rates showing the next highest increase (+4.0%). German customers, on the other hand, have enjoyed a -3.2% reduction in their rental prices across the last year, with Spain following closely at -2.9% and Italy at -1.9%. The UK remained relatively stable with a nominal +0.7% rise. Yet rental luctuations have been minimal in the last quarter, the largest increase being France (+1.3%) and the greatest reduction in Italy (-1.4%).

Market summaries – 3 and 12 months to December 2011 FRANCE: In the last quarter French customers faced the largest increase to their monthly rentals in the experteye survey, however at just +1.3% this is a relatively small rise. Yet this reflects a continued upward trend after a 12-month period in which French lease rates have risen by +4% overall. Whilst forecasted residual values have improved by +3.9% during the year, SMR (servicing maintenance and repair) budgets have gone up by +4.6% and new car prices by +2.7% resulting in the upward trend in rental prices. This has settled since October 2011 with a small +0.5% rise in SMR budgets and a +1.6% increase in RVs. GERMANY: German fleet customers have enjoyed a -3.2% drop in their rentals during the last 12 months; the largest reduction in lease rates of all nations surveyed. This has been aided by a +5.3% rise in forecasted residual values, placing the German market as most confident in the future used vehicle market. SMR

budgets have remained stable for the 12 month period with a small -0.2% reduction. The last quarter is a picture of stability with -0.2% movement in lease rentals, a +0.3% shift in forecasted RVs and a +1.4% rise in SMR rates; albeit this is the highest SMR rise of all nations during the quarter.

ITALY: Italy is the only nation to show a reduction in its forecasted residual values across the last 12 months with a -2.0% decline. Con idence is perhaps returning though with a marginal +0.8% improvement in RVs since October 2011. Italian customers continue to see lease rates come down with a -1.4% reduction in the last quarter, delivering a -1.9% drop for the 12 months. SMR budgets rose by +4.5% during the year, but have shown a -1.5% drop in the last 3 months; the largest reduction of all nations in the experteye survey.

PORTUGAL: Portuguese customers have suffered the highest hike in rental rates in the survey, with a +4.6% increase since January 2011. With SMR budgets also showing the largest increase (+6.9%) for the year, and new car prices rising by +2.4% it is unsurprising to see lease rates increase, even with a +3.7% improvement in forecasted RVs. However the recent quarter has been relatively stable with a -0.2% movement in lease rates, a -0.9% shift in forecasted residual values and a +0.9% rise in SMR costs.

SPAIN: In the last 12 months Spanish customers have enjoyed a 2.9% reduction in their lease rates; the 2nd largest reduction of the nations surveyed. This has been assisted by new car prices coming down by -2.1%, SMR budgets reducing by -3.1% and forecasted residual values improving by +1.2% during the course of the year. The recent quarter has settled with very little movement; lease rates (-0.1%), SMR (-0.1%) and forecasted RVs (+1.1%).

THE UK: The last 3 months have shown a marked shift in UK forecasted residual values, moving from a +4.0% improvement since January 2011 to a -4.6% reduction since October 2011. The last 12 months have shown a +5.7% rise in SMR budgets (the 2nd largest increase of all nations surveyed) although this has reduced to a +0.6% shift in the last quarter. Rental rates have remained largely stable with a +0.1% rise in the last quarter following a +0.7% increase for the year.

CHANGES IN RV FORECASTS, SMR COST FORECASTS AND LEASE RENTAL Forecast Service, Maintenance Current Rental Rates and Repair Costs 3-month change 12-month change 3-month change 12-month change 3-month change 12-month change +1.6% +3.9% +0.5% +4.6% +1.3% +4.0% +0.3% +5.3% +1.4% -0.2% -0.2% -3.2% +0.8% -2.0% -1.5% +4.5% -1.4% -1.9% -0.9% +3.7% +0.9% +6.9% -0.2% +4.6% +1.1% +1.2% -0.1% -3.1% -0.1% -2.9% -4.6% +4.0% +0.6% +5.7% +0.1% +0.7% Forecast Residual Values

France Germany Italy Portugal Spain UK

Notes: • The comparisons are for vehicles with a contract duration of 36 months / 90,000km with the exception of Portugal (48 months / 120,000km).

• Twelve-month comparisons show change since January 2011.

• Three-month comparisons show change since October 2011.

• Rental rate changes compare the rates in effect at the time of the survey with those in effect three or 12 months ago.

• RV and SMR changes show the change in participating leasing companies’ forecasts of residual values and maintenance costs over the period.

IFW January > February 2012

27

fleet strategy

off balance Tim Kendall reviews the reasons behind the IASB and FASB’s review of current lease accounting rules, the current state of play and the implications for the future.

Off-balance sheet. An innocuous accounting term that in a post-Enron and Lehman world still makes regulators shuffle nervously. The ripples from those blue chip corporate meltdowns continue to be felt, meaning anything with the merest hint of clandestine financial trickery is fair game for reform. And whilst no-one would suggest lease accounting in its current form is a hotbed of sharp accounting practice and financial deception, it has been on the radar of standard setters in Europe and the US for some time. That means both leasing suppliers, and corporate customers with leased vehicle fleets, may have to adapt their accounting practices to comply...

28

internationalfleetworld.com

How do accounting standards affect the world of operational vehicle leasing?

Contract hire, a form of operational leasing, is the most popular way of leasing company cars in the UK and, increasingly, Europe.

Operating leases also happen to be one of the most common forms of off-balance sheet funding used by companies to acquire smaller equipment assets, including vehicles. With a typical operating lease for a fleet vehicle, the “risks and rewards” associated with ownership of that vehicle, such as depreciation and residual value, are borne by the leasing company and therefore stay off the lessee’s balance sheet. By contrast, finance leases – the other main leasing category – force recognition of the asset on the lessee’s balance sheet both as an asset, and a liability to maintain future lease payments.

BACKGROUND What are the changes proposed?

If fleet managers might switch off at the mention of a balance sheet, the mooted accounting changes should make finance departments look up from their spreadsheets. The International Accounting Standards Board (IASB) and its counterpart in the US, the Financial Accounting Standards Board (FASB), want to switch to a “common leasing standard” to avoid structuring opportunities – the ability for companies to keep assets and liabilities off the balance sheet, and in some cases, wilfully distort outside impressions of its financial position.

Instead, standard setters are proposing a “right of use” model. The major change that this would herald is the requirement to record any property or equipment acquired under an operating lease – including cars – on the lessee’s balance sheet. So in broad terms, assets acquired under operating lease deals would have to be accounted for in a similar way to a purchased asset.

Conceptually, this arrangement might be seen as problematic, as it doesn’t reflect the financed nature of a leased asset in the way that current accounting treatment for operating leases does. But it will also affect some of the key numbers that users of corporate accounts and investors see – such as a company’s liquidity and gearing ratios, and its return on assets.

Industry bodies, including the European

leasing and rental industry trade body Leaseurope, have also voiced concerns that the proposed standards will lead to more onerous, complex financial reporting obligations for companies, and increased costs as internal accounting systems, IT and budgeting processes have to be adapted to accommodate the new rules. According to its own figures, leasing accounts for 20% of all equipment investment in Europe – with vehicles forming a large proportion of that market – which is why any changes in the accounting treatment for leased vehicles could reach far and wide.

In some respects, the arguments put forward by the IASB and FASB are valid.

Under current lease accounting standards, assets amounting to USD 1.25 trillion are kept “hidden” off balance sheets in the US alone, so says a European Impact Survey carried out by accounting firm PwC. In the context of big-ticket leased items, such as property and commercial aircraft, the proposal to remove the distinction between finance and operational leasing, makes a fairer case for itself.

But should it be a catch-all, which includes all operational leases and smaller leased items such as cars?

To comply with the proposed rules, a typical lessee that reports under International Financial Reporting Standards (“IFRS”) might have to collate data on a myriad of diverse, small-value contracts. With the average value of a lease contract in Europe being around €25,000* (when real estate is taken out of the equation), and the top 75 European Leasing firms handling four million contracts for lower-value items like cars, putting such contracts onto the lessee’s balance sheet would undoubtedly create more work for those affected.

But not all companies need to prepare accounts under IFRS – it’s primarily large, publicly listed plcs that are obliged to – meaning some companies can escape the new rules, depending on jurisdiction. And yes, some SMEs in the UK will move to IFRS over the next couple of years, but the reporting standards will be simplified, with a lease accounting standard very similar to the current one (IAS17). So for those outside of the multinational, publicly listed arena, there could be little to worry about.

When do the new proposals come into force?

With the finer details of the common lease accounting standard not yet finalised, the changes aren’t expected to take effect until 2016. The standard setters have re-deliberated proposals after an initial Exposure Draft released by the IASB and FASB last year drew criticism for being complex, inconsistent and generally onerous from an accounting and administrative perspective, particularly from the lessee’s side of the coin.

Commenting on the Initial Exposure Draft, Leaseurope’s voice was unequivocal: ‘Instead of concentrating on sophisticated, high-value, structured deals, we urge the Boards to reconsider their proposals in light of the reality of the leasing market, which is comprised of millions of low-value plain vanilla contracts providing the use of straightforward business equipment.’

Another bugbear, highlighted by PwC’s impact survey, is the proposed “frontloaded” expense model for lessees. There has been wavering by the standard setters on the lessees’ expense model since the initial Exposure Draft, but the current proposals will see higher expenses for leased assets applied towards the early period of a lease, as opposed to the simpler straight-line model, which involves averaging out the cost of a lease over its lifetime.

That means that companies reporting under the new standards will appear to be less profitable than before, in the early years of a lease – purely on the basis of different accounting treatment.

And the US? Most of the noises being made by trade and industry bodies stateside are emphatically not in favour of the proposed changes.

According to a recent study commissioned by the US Equipment Leasing and Finance Association (ELFA), the proposals could increase the cost of leasing and damage an already wobbling US economy. The numbers in the report are fairly eye-opening – an estimated $10bn reduction in gross domestic product and 60,000 fewer jobs by 2016 – should the proposed changes be adopted in their current form.

The report also highlighted that the proposed front-loaded expense pattern will

IFW January > February 2012

29

¡

fleet strategy

¡

off balance lower lessees’ earnings, reduce capital and result in a deferred tax asset. ‘The most significant unintended consequence of the new regime could be a shift in the lessorlessee dynamic. This could translate to more protracted lease negotiation processes as both lessees and lessors seek to maximise their individual accounting benefits under the new regime,’ the report said.

Perhaps more worryingly for the US leasing industry, with some of the advantages of leasing eroded, the report predicts we could see lessees opting for shorter lease terms or re-assessing the lease vs. buy decision altogether.

Will there really be such a detrimental effect on operational leasing?

In Europe at least, lessors and corporate fleet customers alike appear to be keeping a weather eye on the situation. Ian Hucker, director of European fleet and remarketing for Opel/Vauxhall Europe, says: “We recently attended a European Industry roundtable event and the subject of lease accounting came up in discussion a few times – raised mainly by customers. Some had concerns about the new standards, but many were dismissive, saying that new accounting rules won’t alter the core appeal of leasing as an acquisition method.

For the majority of customers, it’s business as usual.”

And the core appeal of operational leasing is not solely its off-balance sheet accounting advantages. For lessees, inherent upsides to the leasing and contract hire model remain. In an economic climate where cash flow and access to credit is challenging for companies of all sizes, leasing remains not only a line of credit, but an efficient use of capital, freeing it up for investment elsewhere.

If there’s a wind of change blowing, it’s not as a result of new accounting standards, but the low interest rates symptomatic of a depressed economy in the eurozone. Some believe this is prompting larger corporate leasing customers to move towards purchasing their vehicles instead of leasing: “For those companies sitting on cash *Source: Leaseurope

30

internationalfleetworld.com

Proposed lease accounting changes

EVENTS TIMELINE July 2006 > The IASB announces a review of the current lease accounting standard, IAS17, in conjunction with US standard setter, the FASB. April 2007 > Global leasing bodies representing the leasing industry, issue a common position setting out the general principles a new lease accounting standard should address.

March 2009 > The IASB and FASB (collectively, the ‘Boards’) publish a leases discussion paper.

August 2010 > The Boards publish their initial Exposure Draft outlining proposals for a common leasing standard.

December 2010 > Leasing associations comprising 90% of the global leasing industry issue a statement highlighting concerns with the Exposure Draft.

December 2010 – July 2011 > The Boards re-deliberate proposals to address concerns raised about the initial Exposure Draft by leasing associations.

July 2011 > The Boards announce they will re-expose revised proposals for a common leasing standard in Q3 2011 Early 2012 – The Boards are timetabled to release a revised Exposure.

reserves, some are taking the view to purchase because of low returns in the market, meaning [purchasing] is a better use of cash for them,” says Hucker.

But even if proposed new standards erode some of its appeal for finance departments – particularly in larger companies – the other underlying attractions of operational leasing will remain. Not least of which is insulation from the risks associated with outright ownership, including depreciation and running costs. Then there’s the bespoke range of bolt-on services offered by many contract hire providers, such as insurance and fleet administration.

What’s next and when can we expect the final Exposure Draft?

The changes aren’t yet set in stone – but the Boards have re-deliberated proposals following feedback gathered from the leasing industry since the first Exposure Draft appeared in August 2010. The upshot of this is that last July, they announced that a revised set of proposals for a common leasing standard would be re-exposed in the third quarter of 2011. Clearly, this hasn’t happened. However, the latest IASB estimates now put the due date somewhere in the first quarter of 2012.

Few would argue that a drive for greater transparency in corporate reporting is welcome – where the benefits are real and tangible for the end-users of corporate accounts – such as investors and key stakeholders. Whether that’s the case here, with the proposed rules reaching into all areas of leasing, is debateable.

But it’s important to gain some perspective – these proposals have been simmering away on the hotplate in one form or another for years and have been back to the drawing board more than once. We await the next Exposure Draft to see the proposals in their final shape, but whilst trade bodies in Europe and the US have made some noise, the industry itself appears to be calmly keeping watch, rather than panicking.

Perhaps that’s because the spectre of double-dip recession and eurozone gloom is quite enough to worry about, for now.

industry analysis

The real bridgetechnology for the years to come is the ‘range-extender’

Dieter Fess of BF Forecasts considers what will power cars in the future... ”It is difficult to make predictions, especially about the future!”

These words were used by Mark Twain and of course they are still very true. Yes, we do have a proved and tested methodology that is able to fulfil the expectations our customers have with regard on the precision of a forecast. However, as a good friend once pointed out: ‘Making forecasts is not only science, it is an art!’ Touché!

Usually we are using analogies that help us to find similar patterns between the past and the future. But if it comes down to the future of the car, things meanwhile could get pretty awkward.

Last week I read an article about serious scientists who claim to be at the edge of launching flying vehicles (what name will they come up with: auto planes, planomobiles, airhicles?) with the help of an algorithm that was used for the CGI-effects for the Hollywood movie ‘Batman Begins’.

And even Dieter Zetsche of Mercedes-Benz, not very well known for being a trekkie or somehow a science-fiction aficionado, mentioned in public that the future of the car will be in three dimensions and cars will fly. It is not the question ‘if’, but, ‘when’.

So, this is obviously going to be the real challenge of the near future… But, seriously: our trivial ‘here and now’ still deals with cars on the ground and two kinds of combustion engines. The diesel type in Europe is still to be seen, but the tide has changed already. Due to emission directives of the EU it is fair to say

that diesel in its current form will not survive forever. In the meantime petrol engines are being ‘downsized’ which leads to lesser consumption and higher torque, caused by turbocharging. So petrol cars are becoming a major threat to diesel engines.

For a while, six and eight-cylinder engines will be sold worldwide. But even in China, India, Brazil and the Middle East, these cars will almost vanish within the next decade, if they still use today’s technology. In Europe this development is already in place.

The registrations for cars with big engines in Europe have been decreasing for years. This trend will even grow within the near future. Cars with gas tanks will play the ‘best-of-bothworlds’ role for a while. Especially if the absurd connection between crude oil price and gas price is cut.

But the real bridge-technology for the years to come is the ‘range-extender’.

GM/Opel/Vauxhall will start with their Ampera/Volt cars as the first manufacturer worldwide who introduces this exciting technique. The euphoric reactions of both potential customers and press seems to prove that this car hits the nail on the head. Even in the future, the used three- to four-year old Ampera/Volt will be a fine (and the only!) alternative to the three or fouryear old premium makes.

The range-extender saves us from the fear of having an unexpected stop, due to battery capacity problems. Once the electric energy is consumed, the

combustion engine will work as a generator and secure a greater distance.

This fear brings us to one of the most dominant problems regarding e-vehicles: unpredictability of the range and an extraordinarily high price. As long as there are no reliable figures referring to the distance in summer, winter, on a hilly road, with 2 or 4 persons in the car and so on, the willingness of the people to spend three times as much compared to the size of the car will be pretty moderate, to say the least.

However, used car prices for e-cars will increase. Not because of the increasing acceptance amongst the public but because of the extension of ‘low emission zones’ and the tightening of emission standards.

All the latest technologies we’ve discussed here will have their relevance as bridge-technologies. A more likely long lasting technology has not been mentioned yet: the fuel cell. In the cell, water and oxygen react together and produce heat and electric energy. Mercedes is one of the manufacturers who developed the fuel cell to a series maturity. But still there are some things to do before they can leap the hurdles. Above all, the hydrogen-station network hast to be enhanced drastically.

There is only one thing left though, which makes it very easy to look into the future: petrol prices will grow steadily and therefore will support the development of any alternative that makes sense.

IFW January > February 2012

31

operator profile Ryder

Supplying the demand Operating a leet of trucks is a very different proposition from operating a leet of cars. For instance a missed service for a car is not likely to run the risk of enforcement action but that could be the case for a truck operator. Car models are only available in a certain number of body types with a speci ic set of engines. While that is also true to an extent with trucks, the number of variations is likely to be greater.

Trucks can be fitted with a range of bodywork and equipment to ensure the truck operator can carry out the work required. Equipment may require documented maintenance as well as the vehicle. Then of course a truck tractor unit can be coupled up to a range of trailers. Add in cross border operations, common in any

32

internationalfleetworld.com

part of the world and that will open up another set of challenges.

US-based Ryder would be familiar with most of these situations. The company operates in the United States, Canada, Mexico, the UK, Singapore and China and manages 182,100 vehicles in total.

The company can trace its origins back to Miami Beach in 1933, when Jim Ryder thought he could raise his earnings 10 cents an hour to 35 cents an hour by quitting his job as a labourer and starting a small haulage business with a used Ford A-Series truck. In six years his leet had grown to over 50 trucks. Expansion continued and the company was loated on the New York Stock Exchange in 1955.

As the company grew, its interests

became diversi ied and at one time included insurance, aircraft leasing, aircraft engine maintenance, a number of haulage companies and a network of truck stops in the United States. It was a business model similar to many other large companies and like many of those companies, Ryder sold many of those businesses and focused on the core businesses that are at the heart of the Ryder business today. Currently the company operates in three business segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS) and Dedicated Contract Carriage (DCC).

The FMS division provides full service leasing, contract maintenance, contractrelated maintenance and commercial rental of trucks, tractors and trailers. The customer

base is principally in the US, Canada and the UK. The primary product offered is focussed on contractual-based full service leasing and contract maintenance services. This is supported by commercial truck rental, maintenance services and value-added leet support services such as insurance, vehicle administration and fuel services. Ryder also operates a used truck business.

Robert E Sanchez is president of Global Fleet Management Solutions for Ryder, and responsible for the FMS business, which is Ryder’s largest business segment, “It’s about 60-65 per cent of the revenues of the company”, he told IFW. He also explained how the global leet of vehicles is divided up, “We have some 168,000 vehicles which we own and operate and then we have

Fleet Management Solutions is about 65% of the revenues of the company

another 35,000 vehicles that we maintain.

So we don’t own them, but we maintain them for our customers.”

Of the 168,000 that Ryder owns and operates, 54,000 are tractors of the Class 8 or long haul type, 68,000 are rigid trucks and 43,000 are trailers. Of the total, around 40,000 are in Ryder’s rental leet. “So by count, trucks are the largest proportion of the leet,” continues Mr Sanchez, “but if you look at investment and the amount of work that the vehicles require, tractors are certainly a good portion of that.” Those vehicles are then leased or rented to the other two business divisions and they are the FMS division’s largest customers, representing around eight to ten per cent of the leet. Tractors typically cover between 80,000 and 100,000 miles a year (129,000 – 161,000km), while trucks usually cover a much shorter distance, depending on the operation they are used for.

Many of the trailers are dry freight box van trailers, with a number of curtain-side trailers in the UK-based leet. Ryder also has a number of refrigerated trailers.

Ryder is now seeing demand for trucks powered by alternative fuels, as Mr Sanchez explained: “Last year we started an operation in southern California, where we are purchasing 200 natural gas vehicles that we are leasing to customers and also providing rental for those. As part of that we are retro itting three of our maintenance facilities in order to maintain those vehicles.

“Then we’re also going to be providing fuelling at two of the locations, so it’s a good partnership with the municipal, the state and the federal government. They were all involved in the project with us as part of a subsidy. It allowed us to get those vehicles into the marketplace and really become an early adopter of this technology.

“We also have operations for customers in Arizona and Michigan and each of those has gone with natural gas. We’ve learned a lot about the operations and the opportunities for natural gas. Of all the alternative fuel vehicles we’ve worked with, we believe that natural gas vehicles have a lot of potential.

It’s a matter of being able to get the cost down of the primary investment and having a network of illing stations to be able to go longer distances.”

The SCS business offers a range of logis-

tics management services designed to ensure the optimum performance of customers’ global supply chains. There are three speci ic parts to the SCS business; professional services, including strategy, design and engineering, warehousing and transport solutions. “This part of the business does logistics services for mostly global ‘Fortune 100’ companies, who outsource their logistics,” explains Mr Sanchez.

DCC effectively provides an integrated and optimised transport solution designed to meet the overall needs of individual organisations. This could mean elements of a full service lease, combined with drivers and other services such as routeing and scheduling, optimised fleet sizing, risk management, safety and regulatory compliance, among others. “This is for companies that want to outsource their private fleet operations,” says Mr Sanchez, “they have a fleet that they need to run with drivers. Ryder takes over not just the truck but also provides the drivers and all the routeing for those.”

Looking at Ryder’s customer base, the company has just over 15,000 full service lease customers. “In the US, mostly they are privately held small to mid-size companies that do something other than trucking as their primary business,” explains Mr Sanchez, “they can’t do it through a common carrier-for-hire type carrier because of the delivery or distribution windows they need to meet. They need someone to help provide those vehicles and that’s where we step in.

“In the UK, I would say that we have more of the transportation type companies that do business with us. There’s more of a balance between companies that specialise in transportation and companies that do something other than transportation and need the vehicles for their operation.

“The access to capital for many companies is a lot different from what it was ive years ago. With limited capital, companies are having to make decisions between spending that limited capital on a truck leet or on their core business. If my core business is something else other than trucks, aren’t I better off using that limited capital for my core business, then going to somebody like Ryder as an alternative source of inancing for my leet?”

IFW January > February 2012

33

fleet profile FORD

Ford reaps the dividends of Mulally’s singular vision The One Ford strategy has allowed Ford to create truly global cars. Mark Bursa reports...

The arrival of Alan Mulally as Ford CEO (left) in 2006 signalled a major directional change for the US automaker. The former Boeing executive set about reversing the diversified, multi-brand strategy of previous managements, and instead focused on the core brand.

So the Premier Auto Group brands were sold - Jaguar and Land-Rover to India’s Tata; Volvo to China’s Geely. Ford’s shareholding in Mazda has been diluted and

34

internationalfleetworld.com

management control relinquished, and the struggling US-market Mercury brand was put out of its misery.

Everything – apart from a few Lincoln models for the US – would carry the blue oval. The plan was called One Ford, and now it’s starting to pay dividends. At its heart was a radical manufacturing revamp that would see Ford design and produce genuine “world cars” in all major markets, with a minimum parts commonality of 85%.

¡

7 13 14 11 12

8

2 5 4

6 10

3

9

1

FLEET SALES 2011 US > 31.7% Europe > 40% UK > 63.5% Germany > 20% Spain > 34% Russia > 28%

FORD GLOBAL PLANTS 1

2

3

4

5

6

7

8

9

10

11

12

13

14

Australia Melbourne, Falcon Belgium, Genk Mondeo, S-Max, Galaxy China, Chongqing Focus Germany, Saarlouis Focus/Focus platform cars Germany, Cologne Fiesta assembly, engines Romania, Craiova B-Max (2012), engines Russia, Vsevolozhsk, St Petersburg Focus Spain, Valencia Fiesta/Focus platform models Thailand (new plant 2012) Focus (3rd generation) Turkey, Kocaeli Transit Connect, Transit US, Wayne (Michigan) Focus US, Louisville, (Kentucky) Focus UK, Bridgend engines UK, Southampton Transit

IFW January > February 2012

35

fleet profile FORD

¡

So Fiesta, Focus and Mondeo all it this bill from now on. The third-generation Focus, launched in 2011, is the clearest indication of how this works. Apart from the availability of diesel engines and an estate body option for Europe, regional differentiation is being kept to the minimum wherever the Focus is built. And the Focus is being built in most of the markets where Ford has a major presence.

Focus is being built in markets where Ford has a major presence...

In Europe, Focus production is based in the Saarlouis factory in Germany, while two plants in the US are now building the Focus, in four-door sedan and ive-door hatchback body styles: the Wayne in Michigan and Louisville in Kentucky. The new Focus is also being built at Ford’s Vsevolozhsk, St Petersburg plant in Russia.

In 2012, third-gen Focus production will be added in Asia, at a new plant in Thailand, and in China, where Ford’s joint venture with Changan Auto in the city of Chongqing will be greatly expanded to build the car.

The plan is for the “world” Focus to challenge established sector leaders such as the Volkswagen Golf, Toyota Corolla and Honda Civic to be global sector leader. And what’s more, Mulally wants to repeat the trick with both the Fiesta and the new Mondeo, which only breaks from the template in that it retains the Fusion nameplate for North America.

NORTH AMERICA DOWNSIZES If the One Ford plan is to succeed, Ford has to convince American car buyers to downsize. Cars the size of Fiesta and Focus have traditionally been seen as too small for mainstream sales, with rental companies propping up sales. But Ford has got the timing right. Since the credit crunch hit in 2008, the US economy has struggled, and hefty rises in gasoline prices in particular have driven the trend toward smaller engines.

In 2011, Ford posted a 25% increase in its small car sales, with 244,291 cars – a mix of

36

internationalfleetworld.com

Fiesta and Focus – sold. This outstripped Ford’s overall growth of 17%, itself an impressive performance against an overall US market up 10.3% to 12.778m in 2011. In total, 2,062,915 Ford-brand vehicles were sold in the US in 2011, sealing the brand’s irst three-point market share gain over three consecutive years since 1970.

The Ford Fusion also performed strongly, with 248,067 vehicles sold, a record year for the car, while Ford brand SUV sales totalled 579,626 vehicles in 2011, up 31%, making it the best-selling utility brand in America.

Sales were driven by the Explorer, up 124%, with 135,704 sold, and record Escape sales of 254,293, up 33% for the year.

And in the light truck sector, Ford sold a total of 584,917 F-Series trucks, making it the only vehicle to break the 500,000 vehicle sales mark in the US last year. Again in the truck sector, Ford is implementing One Ford principles, launching the European Transit Connect light van in the US, importing the model from its recently-acquired low-cost plant ion Romania.

Ford classi ied 31.7% of its 2011 newvehicle sales as “ leet”, making it the clear market leader ahead of General Motors, which claims a leet penetration of 25.5%.

Ford cites the strength of its truck sales as the main reason for its lead. “The reason our leet is higher than what you would normally see is because of our commercial business,” Ford sales analyst Erich Merkle told US inancial website The Street. “When you have F Series, Econolines and Transit Connects, that is a good business. The commercial business for us is very pro itable.”

Merkle said 14% of overall Ford leet sales were to commercial customers, ranging from small businesses buying a handful of trucks to very large businesses, while 12% of the total is to rental car companies and 6% is to government.

Ford also highlights improving residual values as a key reason for its strong US leet performance. From the 2009 to the 2010 model year, Ford achieved the industry's largest gain in resale values, an increase of roughly $1,300 per vehicle. And resale value of Fords at auction rose 23% in 2011 compared to 2010 to outpace the industry, which saw resale values increase by 19%, according to the latest National Automobile Dealers Association auction data. And price guide Kelley Blue Book gave the 2010 Taurus and 2010 Super Duty pick-up its Best Resale

Value Awards, singling them out as vehicles expected to hold the greatest proportion of their value after ive years of ownership.

EUROPEAN MANUFACTURING STRATEGY In the past decade, Ford has streamlined its European production network, closing older, less ef icient plants (such as Dagenham in the UK) and investing heavily in its four large West European facilities. Cologne was transformed into a Fiesta assembly plant in the early 2000s, while broadly speaking, Saarlouis builds vehicles on Focus platform (including C-Max) and Genk in Belgium builds Mondeo-based cars (including S-Max and Galaxy). The fourth, Valencia in Spain, builds a mixture of Fiesta and Focus-based vehicles.

Ford announced a further realignment of its production in 2011, adding two models at Valencia and an electric version of the Focus at the Saarlouis, Germany, plant. Ford also announced that the B-Max small MPV would be built at Craiova in Romania from 2012, the former Citroen and Daewoo factory acquired in 2008, which currently builds the Transit Connect. This plant will add a second small-segment model, possibly an emerging markets saloon to compete with the Dacia Logan and Sandero.

Ford plans to launch at least 20 all-new or signi icantly freshened vehicles in Europe over the next three years. Among these are the next-generation Transit Connect small van and Kuga SUV, which will be built in Valencia. Currently, the Transit Connect is also built in Kocaeli, Turkey, and the Kuga in Saarlouis.

Kocaeli will build an all-new light commercial vehicle, believed to be a compact van to compete with the likes of Peugeot Bipper and Fiat Fiorino, in addition to the next-generation Transit commercial vehicle. The plant will continue to provide engineering for the next-generation Transit Connect to be built in Spain.

Ford’s plant in Southampton, UK, will produce the chassis cab derivative of the next-generation Ford Transit. The new Transit range will extend up to 5 tonnes GVW, and is likely to be sold in the US as a replacement for the ageing Econoline van. Transit Connect is already exported Stateside.

Meanwhile new fuel-ef icient 1.0-litre three-cylinder EcoBoost petrol engines will be built at both the Cologne engine plant and at Craiova from 2012.

Ford has got the timing right.

Since the credit crunch hit in 2008, the US economy has struggled, and hefty rises in gasoline prices in particular have driven the trend toward smaller engines.

EUROPEAN FLEET SALES Ford’s European sales are slightly smaller than its US sales, but the Ford brand has a higher percentage of leet sales on this side of the Atlantic. Ford sold 1,528,871 vehicles across Europe in 2011. Roughly 630,000 were leet sales – just over 40.0%.

The UK remains Ford’s largest European market, and despite efforts to reduce dependence on fleet sales, nearly twothirds of Ford’s UK sales of cars and light commercials in 2011 were classed as fleet.

Ford sold 337,501 vehicles in the UK in 2011, including 214,810 fleet sales – that’s 63.5% (including sales to rental companies). This is higher than the UK average split – in 2011 the UK market vehicle sales total was 2,249,483, of which 55.0% were fleet sales (1,233,986 units) including rental sales.

Ford’s market share of the leet sector is 17% - higher than its total 2011 UK market share of 15%. The best-selling UK leet vehicle for Ford was the Focus with 55,049 leet sales, a combination of Mk2 and Mk3 Focus models, followed by Transit with 49,204 leet sales.

Ford of Britain sold 46,162 of the all-new Ford Focus in 2011. Of these, 30,737 (66.6%) were to leet buyers, while of the 96,112 Ford Fiestas sold in Britain in 2011, 44,246 (46.0%) went to leet buyers. In the UK, the Focus is the second-best-selling vehicle in the market behind the Ford Fiesta, the UK’s overall best-seller.

FORD OF BRITAIN HISTORIC SALES FIGURES: 2011 – 337,501 total / 214,810 fleet = 63.5% 2010 – 342,672 total / 206,769 fleet = 60.3% 2009 – 371,843 total / 215,058 fleet = 57.8% 2008 – 405,806 total / 258,032 fleet = 63.6% 2007 – 444,605 total / 288,982 fleet = 65.0% 2006 – 437,330 total / 291,260 fleet = 66.6% 2005 – 347,551 total / 205,656 fleet = 59.1% 2004 – 367,158 total / 212,761 fleet = 58.0% 2003 – 378,942 total / 213,947 fleet = 56.5% 2002 – 400,808 total / 221,255 fleet = 55.2% 2001 – 404,334 total / 223,231 fleet = 55.2%

IFW January > February 2012

37

¡

fleet profile FORD

¡

In the recession, Ford has used its leet sales to prop up its overall sales. Even though sales fell sharply in 2009, the 2011 leet volume total is on a par with sales in 2003. But retail sales are well down on pre2009 levels, which accounts for the increase in the percentage of leet business compared to a decade ago.

In the other major European markets, Ford is rather less dependent on leet business – an indication of the historical importance of leet in the UK as much as any Continental weakness. Indeed, in Germany in 2011, more than half of Ford’s 258,835 vehicle sales were to leets (54%). In France, where 2011 sales are much lower at 135,718 vehicles, leet business accounted for 43% of the total.

In Southern Europe, the percentage of retail sales is even higher. In Italy, Ford sold 155,357 vehicles in 2011, of which just 20% were leet sales, while in Spain, 34% of the 76,694 vehicles sold there last year were leet sales.

Ford is banking on the new Focus as its leet leader going forward. After nine months on sale in Europe, 188,600 new Focus cars had been sold in Europe, making it the No. 2 top-selling car for Ford in Europe in 2011.

EMERGING MARKETS Ford’s strategy in the major emerging markets – especially the so-called BRIC markets (Brazil, Russia, India and China) has not always been consistent. Ford has traditionally been one of the major players in Brazil, while it was an early mover into Russia, becoming the first overseas manufacturer to set up a successful new volume plant in the late 1990s, at Vsevolozhsk, near St Petersburg, which builds both Focus and Mondeo.

Ford’s EcoSport small SUV shows how the One Ford strategy can be tailored to different countries... it will eventually be sold in 100 markets.

As a result, Ford has been a strong performer in Russia, selling 117,979 vehicles in 2011. Of this total, 28% were leet sales (including rental). Russia was Ford’s ifth-largest market by sales volume in 2011, with total vehicle registrations up 30.9% (+27,800 units) versus 2010. Last year was the best sales year for Ford in Russia since 2007.

In China, the One Ford model is being applied rigorously, with current-generation Focus and Mondeo replacing older versions in production. Ford was a late starter in China, and is still playing catch-up against major rivals, notably GM and VW. But a third plant will increase volumes to around 750,000 in China, and future plans include possibly creating new brands just for China.

Apart from Government and taxi sales, China is largely a retail market – for the time being at least.

India and Brazil are largely retail-focused, and a variety of cars, including some older designs, are built there. These markets are the last to be touched by the One Ford strategy, it seems, though the launch of the EcoSport small SUV shows how the plan can be tailored to emerging markets – this car was developed in South America, and is built there as well as in India and Thailand.

FAREWELL TO FORD’S US LARGE CAR MONOPOLY

The last Ford Crown Victoria rolls off the production line last year

38

internationalfleetworld.com

Ford has traditionally led the way in a number of key niche fleet sectors in the US – simply because it carried on producing large, so-called ‘full-size sedans’ long after its rivals had abandoned the sector.

So the Ford Crown Victoria, a car last revised in 1991, soldiered on in production at a plant in Canada alongside its even larger Lincoln sibling, the Town Car. The survival of these automotive dinosaurs gave Ford a virtual monopoly in a number of sectors: police, taxi and limousine operators simply refused to downsize away from their simple, rugged, easy-to-maintain rear-drive V8 engined gas-guzzlers, and with GM killing off its Chevrolet Caprice as long ago as 1996, Ford was the only game in town.

But fuel economy pressures through

the CAFE scheme finally meant the end of the line for these cars in 2011, with the closure of the St Thomas assembly plant in Ontario in September. And this has caused Ford a few headaches. For even though Crown Vic sales have dwindled since it became a fleet-only model in 2007, Ford still sold 46,725 of the cars in 2011 – entirely to police forces and taxi operators, along with 9,460 Town Cars.

Astonishingly, combined sales of the two cars had peaked at 200,000 in 1999 – 115,000 Crown Vics and 85,000 Town Cars.

Now Ford is struggling to retain those sales. Many police forces are switching to the new, smaller Chevrolet Caprice and Impala models, while the Dodge Charger has made significant inroads. Ford is pitching the latest

It will eventually be sold in nearly 100 markets worldwide.

Ultimately, it is Emerging Markets growth that will help drive Ford’s aggressive target of increasing worldwide sales by nearly 50% by mid-decade to 8 million vehicles a year. Between 60% and70% of the growth is expected to come from the Asia-Paci ic and Africa region, according to Ford.

AUSTRALIAN WOES One market where all is not well for Ford is Australia. Cheap imports have damaged local manufacturing, and Ford has been hit hard. Although the car industry reached its target of selling 1 million new cars last year, the sale of locally produced cars fell by 3% to 141,949.

Particularly alarming was the 36.5% fall in Oz-built Ford Falcon sales to 18,741, with Ford selling 20% fewer locally made cars through 2011. Nevertheless, Ford remains committed to the market, and has recently announced as AU$103 million investment in clean technology and safety upgrades at the Melbourne assembly plant.

Ford had considered building Focus there, but decided against this in 2009.

Instead, Oz-market Focus will be imported from Saarlouis in Germany.

Taurus, but its monopoly has clearly gone.

For the taxi market, Ford has come up with a version of the Transit Connect, hoping that the trend toward easyaccess vans will drive buyers its way. But in 2011, Ford suffered a major blow, losing out to Nissan’s NV200 in a battle to become the recommended future standard New York taxi. Again, the market will be crowded, and Ford will have to battle for sales.

For limousine operators, a new large Lincoln SUV is being readied. The MKT model is designed to be stretched too, a key aspect of the Town Car. But limo and ‘livery’ operators could instead opt for large German sedans such as the Mercedes S-Class, while Chrysler’s 300C has also made ground here.

ECO-CAR PROGRAMME NEEDS A FAST CHARGE Compared to some rivals, Ford has played its cards cautiously in the ‘green’ sector, concentrating on across-the-range improvements such as its Econetic models and efficient new Ecoboost petrol engines.

Ford believes across-the-board savings are what the US fleet sector wants, especially among commercial and government fleets, where Ford commands the largest share of sales, with 32% and 44%, respectively (2009 figures).

Rivals have been more blatant. Toyota has been promoting hybrids for a decade and a half; Renault has gambled all its chips on battery-electric cars; GM has gone down the path of range-extenders and PSA sees diesel hybrids as the future.

But aside from some mild hybrid versions of US Escape and Fusion and a lowkey EV programme on Transit Connect in association with supplier Azure Dynamics, there’s no sign of a signature ‘eco-model’ to bear the blue oval.

That will change this year. Ford’s Valencia plant in Spain will add electric variants of Focus from 2012. And a plug-in hybrid version of the Focus-based C-MAX will also be built and sold in the US. The question remains as to whether an electric version of an established model will be enough to compete with an identifiable ‘eco-car’ such as the Toyota Prius, or GM Volt/Ampera. Fleets buying these cars are not only being green, they’re being seen to be green – gaining crucial corporate image points from clients that often have set policies about dealing with ‘eco-friendly’ suppliers.

The electric Transit Connect is also very expensive – Ford cites difficulties in setting a residual for an untried technology as the reason why the car is priced at £40,000 in the UK – more than twice its rival Renault Kangoo ZE, which is made in Renault’s own factory alongside conventional-engined versions.

In the US, Ford sells about 35,000 hybrids a year, and sees that number tripling by 2013 when the C-MAX is in full production. And it hopes to sell around 2,000 electric Transit Connects worldwide in 2012. But this will still leave Ford a long way behind Toyota, which sold 14,000 Prius in the US alone in 2011, and is expanding the Prius range with new versions and plug-in variants this year. There’s a sense that Ford needs to turn up the power on its electric car programme if it’s not going to be left behind.

Ford’s Valencia plant in Spain will add electric variants of Focus from 2012

IFW January > February 2012

39

launch report Kia Optima p42 Honda Civic p44 Nissan NV400 p45

An impressive car with fine build quality, good road manners and spacious interior p42

IFW January > February 2012

41

launch report

Kia Optima Optima finally comes to Europe after US success. John Kendall finds out what the excitement is about.

SECTOR Upper medium PRICE TBA FUEL 5.1 – 6.0l/100km CO2 133 – 158g/km The Optima has been on sale in North America since 2010 and it seems that US buyers just can’t get enough of it. Sales are running at around 12,000 a month there, out of global monthly sales of around 16,500. Over 217,000 have already been sold around the world.

With combined Kia and Hyundai global sales for the January to October 2011 period of 5,924,146 - 18 per cent up on the same period in 2010, placing the company ahead of Ford, it’s easy to understand why the company is feeling upbeat. Kia was blazing a trail in Europe in 2011 too, with growth of 10 per cent in sales to the end of October, set against a market that is still falling, even though decline has slowed to around one per cent on average.

Against that backdrop you could argue that either Kia can afford to take a gamble on launching into the declining European D-segment, or Kia’s European operation is making a mistake. In reality, it won’t make a whole lot of difference, because of those sales figures. European models will be shipped in from Korea (where it is sold as the K5) and even if sales are comparatively modest, that won’t stop Kia’s onward march, or the Optima, in their tracks. Kia’s European chief Paul Philpott told us that

42

internationalfleetworld.com

margin-crunching business is off limits, suggesting the company won’t be beating a path to daily rental companies.

Power choices for Europe come down to either Kia’s 1.7-litre common rail diesel, pushing out a healthy 136PS, with carbon dioxide emissions of 133g/km or with optional EcoDynamics pack, 128g/km EU combined, meaning 4.9l/100km (57.6mpg imperial/48.0 US) or from May 2012, a two-litre 170PS petrol engine, which Kia hopes will deliver 155g/km CO2, equating to fuel consumption of 6.5l/100km EU combined (43.5mpg imperial/36.2mpg US). Standard transmission is a six-speed manual with the option of a six-speed auto. These power options will be joined by a petrol hybrid in the second half of 2012, also using the 2.0-litre petrol engine in down-tuned 150PS guise with 40ps from the electric motor. Kia has not yet talked fuel consumption and emissions for the hybrid.

Approach the Optima from any angle and it’s clearly a crisp, modern design. The distinctive lines make it hard to place at first – it isn’t obviously a Korean car and a far cry from Kia’s offerings just a few years ago. Having established that it is a Kia, it’s tempting to think that this is another

Kia/Hyundai twin, the Hyundai i40/Sonata being its sibling. Not so, says Kia. The Optima is slightly larger with a longer wheelbase and in fact the car is bigger than a VW Passat. To be precise, 76mm longer, 15mm lower and 10mm wider than the Passat and 83mm longer in the wheelbase.

The fact that it doesn’t look it is another brownie point for the design team.

On the road, Optima lacks the finesse of the Passat, Ford Mondeo and other leading D-segment rivals where ride is concerned. It tends to jar over potholes and does not have the absorbent ride of those rivals. The handling impressed though, with precise, responsive steering.

The 1.7-litre diesel, like many other Euro 5 diesels, is anything but quiet from cold, but noise levels drop noticeably once it has warmed up. The result is an impressively refined car. It performs well too, thanks to respectable power output and 325Nm (240lbft) of torque from 2,000-2,500rpm.

verdict This is an impressive D-segment car with fine build quality, good road manners, a spacious interior and a price tag that we can expect to be competitive.

SIMPLY CLEVER

Going green Without cutting corners.

ŠKODA Superb GreenLine. A decision made today can sometimes influence the future. While a Fleet Manager is obviously concerned with lower running costs, the drivers are equally keen on safety, space, reliability, comfort and performance and do not want to make compromises. As a Fleet customer who shares our vision for a sustainable environment, we offer you the ŠKODA Greenline range. Thanks to improved aerodynamics, optimized rolling resistance, Start-Stop system and energy recovery functionality, these eco friendly versions of our regular models offer much lower fuel consumption, and hence lower TCO. Lesser emissions also mean a favourable carbon footprint for your company, thus preserving the future for next generations. Your fleet choice of ŠKODA Superb GreenLine will fully match your company‘s high standards. The ŠKODA GreenLine range does not fail to impress anyone. So whether you need just a few vehicles or a comprehensive fleet solution, do contact us. How about today? www.skoda-auto.com/fleet

Combined fuel consumption and CO2 emissions for the Superb Combi model: 4.4 l/100 km, 114 g/km

launch report

Honda Civic The new Civic isn’t as distinctive, but it’s a much better fleet proposition, says Alex Grant.

SECTOR Lower Medium PRICE €16,950 - €30,250 FUEL 5.1 – 8.7l/100km CO2 110 – 148g/km Whether it’s a design you love or hate, the outgoing Civic was a revolution for Honda’s styling when it was released in 2006. Still made to the carmarker’s high standards, it packaged the dependability and affordability that’s always come with the Civic badge into a bodyshell that’s still unmistakeable today.

It’s a difficult act to follow, and Honda hasn’t been quite so brave this time around. The new Civic uses the same platform as its predecessor and shares a similar profile. The slightly less controversial styling has brought the car up to date, and what really counts is underneath. Honda has spent the last five years talking to customers to find out what they didn’t like about the old one, and fixed those problems with its replacement.

With its sights set on growing its presence in the company car sector, the lack of a competitive diesel engine must have come close to top of the list. So while the new model still only has a 2.2-litre diesel, which is still large for the C-segment, CO2 emissions have dropped from 137g/km to 110g/km, while power has increased 10PS to 150PS. Performance and emissions aren’t the entire story, though. The modest-sounding power increase hides this being a far qui-

44

internationalfleetworld.com

eter engine than its predecessor, and one with a much wider spread of torque that makes it feel much more responsive.

Honda has also equipped all Civics with the same Eco mode as its hybrids, which alters throttle responsiveness and gives live feedback about driver behaviour to save fuel. Unlike some other vehicles with similar functions, it does so without making the car unresponsive or unwilling to climb hills.

But this is still a large engine in a competitive sector, and Honda has its hopes pinned on a pair of 1.6-litre diesel engines, due to join the range next year, that will emit less than 95g/km. Until then, the reduction in running costs on the 2.2-litre engine is enough to make the Civic a viable fleet choice.

There are, thankfully, plenty of good points carried over from the last model.

Among these is the car’s reassuringly surefooted handling, which now comes courtesy of a far more compliant suspension setup.

It’s still firm, but it’s far more comfortable.

Drivers familiar with the outgoing car will find plenty of familiar items inside, too. The instrument binnacle is more conventional to look at but still places useful information just below the line of sight and now includes a colour display at the top of the dashboard

showing media and navigation information.

Though the futuristic floating needles are gone, the understated new instruments are now shrouded properly to stop them reflecting on the inside of the windscreen at night.

There’s also a marked improvement in the quality of plastics, and the entire dashboard now looks like it was designed by one person, instead of three like its predecessor.

Rear visibility, or a lack of it, will also be a familiar characteristic from the old car.

Honda says it has lowered the spoiler 20mm and introduced a rear wash/wipe system with a heated lower screen, but while this does offer a slightly clearer view the huge blind spot and thick rear pillars are still an impairment.

Overall, though, there’s a genuine sense that Honda has really listened to complaints about the old car and put a lot of them right. it’s now a far more appealing ownership prospect even without the forthcoming small diesels.

verdict With new Civic, Honda has retained many of the outgoing car’s strong points while taking positive steps to improve its fleet appeal. A winning formula.

Nissan NV400 NV400 replaces Interstar, sharing the GM/Renault heavy van platform. John Kendall reports.

SECTOR LCV PRICE €23,000 - €36,200 FUEL 8.1 - 9.8 l/100km CO2 214 – 260g/km Can Nissan really hope to become the global leader in LCV sales? That was one of the aims stated at the recent European launch of the NV 400, Nissan’s variant of the Renault Alliance/GM joint venture light CV project that spawned the new Renault Master and Opel/Vauxhall Movano last year. The company has also set itself the less ambitious target of doubling European light CV sales to 100,000 by 2016, which the company reckons would give it a five per cent share of the European LCV market. Nissan promises a range of new models to help meet this target.

NV400 replaces the previous Interstar, with a wider range of models and options.

To set the NV400 apart from its French and Anglo-German cousins, Nissan’s UK-based design centre has worked on the NV 400 front end and produced what was reckoned to be the best looking of the three by the journalists assembled at the launch in Spain.

Hard-nosed fleet buyers are more likely to be impressed by the van’s capabilities.

In that respect, the NV400’s credentials are already known because they mirror those of its Renault and Opel/Vauxhall counterparts. That means a gross weight range spanning 2,800kg to 4,500kg, van bodies available in four different lengths

on three wheelbase lengths, with a choice of three roof heights, giving van body volumes between 8.0 and 17.0m3 and payloads between 1,030kg and 2,254kg.

There’s a choice of front or rear-wheeldrive models, powered by variants of the same 2.3-litre common-rail diesel, offering power outputs of 100PS, 125PS and 150PS, driving through a six-speed manual gearbox. Front-drive models get the option of a six-speed automated shift, based on the same gearbox.

Not surprisingly it drives just like its Renault and GM counterparts, which is no bad thing. It might lack the polish of the Mercedes-Benz Sprinter, VW Crafter or Ford Transit, but, as a Renault director pointed out to me at the Master launch in 2010, he cannot match the budget that his rivals in Stuttgart have.

By van standards, it handles well and electronic stability control (ESC) is standard on rear-drive models. Considering the range of weights that a single vehicle must contend with, it also rides well.

One of the NV400’s virtues is the refinement of the 2,298cc turbo-diesel, which is impressive. Noise levels are generally fairly low, helped, no doubt, by the standard full height steel bulkhead between

the cabin and the load space.

The engine also offers a good spread of torque and the part laden vans that were available to drive were not noticeably slowed by the weight. The manual transmission is a user-friendly example helped by the useful positioning of the gear lever on the dashboard. We also tried the automated transmission, which is about as good as a single clutch automated gearbox can be. For drivers regularly operating in city traffic, it can help to take some of the stress out of city driving.

Just the same, some €950 might be more than many fleet managers will want to pay, even if this could be offset by reduced running costs.

From April 2012, Nissan will be introducing NV400 factory conversions, which will introduce crew van, box body, tipper, dropside and chassis cab variants. The conversions will all be built in-house and covered by Nissan’s warranty. Service intervals are set at 40,000km (25,000 miles) or every two years.

verdict The NV400 offers a wide range of models around the 3,500kg GVW sector and will help Nissan to compete more effectively in the European light CV market.

IFW January > February 2012

45

S.W.O.T. Suzuki SX4

46

internationalfleetworld.com

In association with

All-weather appeal Launched in 2006 and refreshed in 2010, the Suzuki SX4 is billed as a ‘sport X-over’ that offers high practicality and 4x4 functionality. The automotive industry experts at Fleet Influence give their verdict on the model.

As extreme European winters become more widespread, the popularity of cars that can adequately handle such conditions grows. Not everyone wants a full-blown 4x4 off-roader, just a regular drive that will be a better and safer bet when the weather turns.

The Suzuki SX4 is one such example. Not the obvious choice, perhaps, but this car, originally built jointly with Fiat (the Sedici), is good at hiding its light under a bushel.

Available also in two-wheel drive only versions, the SX4 is outwardly a five-door hatch with a little extra height. The SX4 4WD utilises Suzuki’s well-proven drive train, offering auto switching between two and four-wheel drive as it senses changes in conditions. When not required, the driver can switch to 2WD mode only.

Occupants sit relatively high in the very airy cabin. The interior does not excite and shows the age of its design. Nothing much in the way of technology in here: basic but relatively effective functionality. Whilst the seats are comfortable, the seat centres are reminiscent in appearance of corrugated iron. There is height adjustment on the driver’s seat but sadly only tilt movement – no reach – on the steering column. Boot capacity is OK, although the volume is achieved through height rather than floor area.

On the road, the SX4 acquits itself perfectly well. In petrol form, the car is lighter and more agile than its heavier diesel sib-

ling, yet the recently introduced 2.0-litre diesel (Fiat’s MultiJet unit), whilst grumbling to itself, delivers a good performance and will happily cruise at 140kph all day long. Roadholding is quite supple, the ride comfortable and the power assistance is well balanced without being too light. All in all, a good and predictable drive.

So, in winter, how does it fare? In the almost balmy December conditions recently encountered, it was necessary to ‘fake’ the ice and snow by driving through mud and water. The SX4 applied its four-wheel drive seamlessly to the extent that you would wonder if you were, in fact, driving on dry, good quality tarmacadam. But then we know such surfaces no longer exist, so it must have been the drivetrain that was keeping control.

Throughout Europe, the SX4 pops up in concentrations wherever the conditions might become challenging. In Germany, you can get the SX4 as a two-wheel drive, booted, four-door limousine (which makes the hatch look pretty). OK, it is not the must-have car, it is neither sexy nor aspirational, but it can and does deliver, is competitively priced and clearly fills a demand.

STRENGTHS Need an all-season car without the bulk or cost of an SUV or off-roader? You might consider the SX4. Competitive pricing, practical format and acceptable, if not sparkling

performance. When it comes to ticking boxes on the ‘practical’ list, it does a good job.

WEAKNESSES This car is showing its age. Whilst wearing well, it lacks some of the current generation standard fitments now considered ‘de rigueur.’

OPPORTUNITIES In 4WD form, this car, with its MultiJet diesel power unit, offers a particularly good proposition for cost-focused organisations – public sector and utilities come to mind. Suzuki has never been a strong fleet contender, but as it strengthens its model range and looks more towards fleet (it now has a dedicated fleet operation in the UK), cost-effective propositions such as SX4 should gain a higher profile.

THREATS There are few direct competitors for the SX4 and it must be said that, in 4WD form, it runs in a narrow market segment. Perhaps closest are the Toyota Urban Cruiser 4WD and the Nissan Juke 4WD, which are better specced but admittedly a lot more expensive than the Suzuki.

Suzuki retains the old-style Far East approach of limited choice in a market commanded by user-chooser expectations of big option lists and clever marketing towards the ‘tailored’, almost bespoke vehicle choice.

CROSS BORDER COMPARISONS List Price

UK

Portugal

Spain

Italy

Germany

France

Euro – Low end

13,950

17,000

11,995

12,838

15,990

17,660

Top end

19,420

25,500

18,395

19,088

21,490

20,990

£S – Low end

11,995

-

-

-

-

-

Top end

16,700

-

-

-

-

-

SZ3

GL Outdoor Line

GL

GL

Streetline Club

GL

SZ4

-

City

GLX

Club

GLX

SZ5

GLX Outdoor

GLX

GLX NAVI

Comfort 5dr

-

-

-

Takumi

-

Comfort 4dr

Explore

Spec & Trim

Engines Petrol Diesel

1.5 VVT

-

-

-

-

1.6 VVT 120DPS

-

-

2.0 DdiS 135PS

IFW January > February 2012

47

fleet in figures

Cars decline, CVs thrive...

ACEA data for 2011 registrations in Europe shows slowing decline in the passenger car sector, while growth in the CV sector continues.

Bucking the trend Volkswagen Passat registrations up 46.5% in 2011

Top 10 Brands Make

2011 Units

2010 Units

Volkswagen

1,622,045

1,491,421

+8.8%

Ford

1,046,711

1,081,778

-3.2%

Renault

1,026,179

1,130,124

-9.2%

Opel/Vauxhall

968,728

986,948

-1.8%

Peugeot

889,073

983,969

-9.6%

Citroen

754,087

821,406

-8.2%

Fiat

671,131

811,774

-17.3%

Audi

654,337

600,120

+9.0%

BMW

617,906

588,816

+4.9%

Mercedes Benz

575,243

570,884

+0.8%

Source - ACEA

48

internationalfleetworld.com

% Change (2010-2011)

We’re still waiting for the 2011 inal count for commercial vehicles from ACEA, but provisional numbers are in for passenger cars and the graph for new registrations in the European Union reads like a rollercoaster, with a pronounced downhill run for the second half of the year. The peaks came in March, June and September, peaking at 1,558,915 in March, 1,233,298 in June and 1,231,147 in September, followed by steep declines in the following month each time. By the year end, the running total stood at 13,111,209, down 1.7 per cent on 2010. Factor in the European Free Trade Area (EFTA) countries outside the EU and the figure rises to 13,573,550 for the same period, down 1.4 per cent on 2010.

Once again, the VW Group has maintained its grip on the European car market (EU 27), bucking the downward trend with a total of 3,167,098 registrations, a 7.8 per cent increase over 2010. Volkswagen held its position as the number one brand with 1,684,150 registrations, 9.0 per cent up on the 2010 figure.

The top five groups were in order, VW, PSA Peugeot Citroen, Renault (excluding Nissan), GM and Ford. The top ten was made up by Fiat Group, BMW Group, Daimler Group, Toyota Group and Nissan.

Not only did the VW Group register the highest number of registrations during the period, but was the only group in the top five where all the individual brands registered an increase in registrations against

the overall downward trend. The only other groups to match that were the BMW Group and Daimler Group. Audi inched ahead of VW to register the highest percentage increase in the VW Group with a 9.1 per cent rise to 680,262 registrations.

VW, Ford and Renault were the only individual brands to record registrations exceeding one million. Ford saw a 3.2 per cent decline to 1,141,380, while Renault, which had registered 1,147,697 registrations in 2010, dipped 9.0 per cent to 1,044,920 in 2011.

Of the top 10 brands in the period, only VW, Audi BMW and Mercedes-Benz registered an increase in registrations, with Audi gaining the biggest percentage increase at 9.1 per cent. Taking an overall view, the year’s biggest percentage increase was claimed by Jeep, posting a 61.8 per cent rise in registrations to 23,475. As JATO points out, Jeep was able to tap into Fiat Group’s sales and marketing muscle. Staying with the Fiat Group, Alfa Romeo claimed the fourth largest rise in registrations with a gain of 18.7 per cent to finish the year with 130,535. Lexus and Mini topped that percentage increase, with Lexus recording the second largest rise with a 53.0 per cent rise to 27,016, which JATO attributes to the success of the CT200h small premium hybrid. Mini registrations climbed 19.1 per cent to 168,462.

Fiat was the brand to suffer the biggest reversal of the year, with registrations down 17.2 per cent to 682,140. French

brands did not enjoy a good year either with Peugeot down 9.4 per cent to 911,703 and Citroen down 8.0 per cent to 770,726. although Renault registrations stayed above the one million mark, the company saw a fall of 9.0 per cent to 1,044,920.

Focussing on the best selling models, figures from JATO for January to November suggest that the VW Golf took the top slot with 449,882 registrations, down 1.9 per cent on the same period in 2010. The second placed VW Polo saw a 0.3 per cent increase for the period to 329,891. VW also posted the largest model gain with the seventh placed Passat recording a 43.9 per cent increase in registrations to 215,724. Ford was the only other manufacturer to register a gain with the ninth placed Focus up 5.8 per cent to 260,749.

Posting the biggest drop was the tenth placed Peugeot 207, with registrations down 19.9 per cent to 225,806.

Among the individual markets, Germany topped the registrations chart for the period, registering the only increase in the top five, with an 8.8 per cent gain to 3,173,634, compared with a 2.1 per cent decline for France to 2,204,229, a 4.4 per cent decline for the UK to 1,941,253, a 10.9 per cent fall to 1,748,143 for Italy and 17.7 per cent drop to 808,059 for Spain. The Baltic states of Latvia, Estonia and Lithuania posted the largest percentage rises in registrations for the period at 77.8 per cent (8,849), 73.5 per cent (15,350) and 65.9 per cent (13,223) respectively.

Top 10 Models January > December 2011 Make

Dec YTD 2011

Dec YTD 2010

% Change YTD

Volkswagen Golf

484,574

492,238

-1.6%

Volkswagen Polo

356,490

354,640

+0.5%

Ford Fiesta

348,465

401,919

-13.3%

Opel/Vauxhall Corsa

313,325

318,900

-1.7%

Opel/Vauxhall Astra

287,249

290,936

-1.3%

Renault Clio

294,172

338,538

-13.1%

Ford Focus

280,209

261,857

+7.0%

Renault Megane

239,329

260,932

-8.3%

Volkswagen Passat

233,330

159,264

+46.5%

Peugeot 207

242,385

305,461

-20.6%

Source - JATO

IFW January > February 2012

49

¡

fleet in figures

Commercial Vehicles ¡

In contrast to the passenger car sector, commercial vehicle registrations have shown sustained growth since mid-2010, when the heavy CV sector began to recover. Since a high proportion of commercial vehicle business is effectively fleet business, this may have helped to reduce the period of decline, compared with the passenger car sector.

For the January to November 2011 period, EU CV registrations grew by 10.5 per cent to 1,769 994, according to ACEA data. Incorporating the EFTA countries brings the total to 1,838,416, with growth of 10.8 per cent overall. This includes an estimate for the Italian market. Data for Italian CV registrations has not been avail-

able since January 2011. Germany and the UK saw similar growth during the period of 18.8 per cent and 18.0 per cent respectively. Registrations in France grew by 5.9 per cent while those in Spain declined by a similar amount.

The vast majority of the registrations consisted of light CVs under 3,500kg gross vehicle weight (GVW). These accounted for 1,450,452 (78.9 per cent) of the total number of registrations between January and November 2011. For LCVs alone, this represents growth of 7.6 per cent compared with the same period in 2010. Factor in the EFTA countries too and the total rises to 1,508,434, representing overall growth of 8.0 per cent.

New LCV Registrations for vehicles up to 3,500kg GVW (EU27 + EFTA), January – October 2011, leading manufacturers.

Top 10 Brands Make Mercedes-Benz Fiat Iveco Ford Opel/Vauxhall Nissan Citroen Peugeot Renault Volkswagen Total

Total Registrations

% Market Share

108,728 156,991 42,417 199,621 75,601 45,022 146,461 144,928 210,603 165,835

8.0% 11.5% 3.1% 14.6% 5.5% 3.3% 10.7% 10.6% 15.4% 12.1%

1,296,207

New HCV Registrations for vehicles of 16-tonnes GVW and above (EU27 + EFTA), January – October 2011, leading manufacturers.

Top 10 Brands Make Mercedes-Benz Iveco MAN Renault Scania Volvo Trucks Other* Total

Total Registrations

% Market Share

36,427 12,679 31,619 18,667 25,083 29,025 30,385 183,885

19.8% 6.9% 17.2% 10.1% 13.6% 15.8% 16.5%

*Believed to consist mainly of registrations of DAF trucks. Source - ACEA

50

internationalfleetworld.com

Above that weight, trucks account for 288,407 registrations, 297,249 including EFTA, representing growth of 29.9 per cent and 29.7 per cent respectively. The light truck market has been in decline in most European markets since the late 1990s, but heavy truck registrations, for those of 16tonnes GVW and above, have shown strong growth this year, with an EU total of 216,841, representing growth of 37.5 per cent. Adding the EFTA total brings the igure to 222,987 with growth of 37.3 per cent, continuing the trend that began in mid 2010.

ACEA manufacturer data as we go to press is only available for the January to October period, but with registrations in decline in the last quarter, they give a fairly good indication of who has been leading the 2011 market. For light CVs, Renault continues the market domination it has enjoyed for some years. VW was in second place, Ford in third, then Fiat close behind in fourth and Citroen in fifth place, shortly ahead of partner Peugeot.

Taking the market for heavy trucks (16tonnes GVW and above), it is dif icult to form an accurate picture, with data restricted from DAF and Iveco, as a result of investigations in Europe this year into alleged cartel arrangements for new trucks.

But the available January to October data suggests that Mercedes-Benz is the market leader, with MAN in second place, DAF possibly in third, Volvo Trucks in fourth and Scania in fifth, Renault Trucks in sixth place and Iveco seventh. This would give the Volvo Group group market leadership, combining the registrations of Volvo And Renault Trucks models.

The EU investigation is continuing and may not conclude until 2013. The investigation is thought to have been triggered by a similar enquiry by the Of ice of Fair Trading in the UK, which began in September 2010. The OFT investigation included a criminal cartel enquiry which was dropped in December 2011, but is continuing with an investigation into new truck price ixing.

Buses and Coaches The market for buses and coaches in Europe is still declining, although the pattern for January to November indicates that the decline has slowed to one per cent for the period with registrations of 31,045, or 32,733 including EFTA. Mercedes-Benz was leading the January to October market, with Iveco close behind and DAF a likely third.

For more information, visit Hyundai-i40.eu